Top 5 Functions of a Manager | Business Management

This article throws light upon the top five functions of a Manager in an Organisation. The functions of a Manager are: 1. Planning Function of a Manager 2. Decision-Making Function of a Manager 3. Organising 4. Leading (Directing) 5. Controlling.

The Management Process

Function of a Manager # 1. Planning: A Programme of Action:

Planning means determining an organisation’s goals and deciding how best to achieve them. Decision making, a part of the planning process, involves choosing or selecting a course of action from a set of alternatives. Planning and decision-mak­ing help maintain managerial effectiveness by serving as guides for future activities.

Knowing where he (she) wants the organisation to be at a given time in the future, the manager next develops a strategy for getting there.

This development process is called strategic planning. Once the strategic plans are developed, the next step is to implement them to put the plans into effect. Specifying where the organization is to go and how it is to get there involves making many decisions, and many more will have to be made along the way.

Function of a Manager # 2. Decision-Making: Determining Courses of Action:

Decision-making is choosing from alternative courses of action. Planning is the means of converting an idea into a reality that is, determining the goals and objectives of the organisation and the means of attaining them. Planning involves making deci­sion about a course of action and establishing priorities relating to the action.

Function of a Manager # 3. Organising: Coordinating Activities and Resources:

Organising and directing an enterprise require that managers establish patterns of relationships (structures, hierarchies) among people and other resources that work to produce an output or accomplish a common goal or objective. Organising and directing relate to the flow of work through the organisation under someone’s guidance.

Once a manager has developed a workable plan, the next phase of management process is to organise the people and other resources necessary to carry out the plan. Organising is concerned with coordinating various activities and resources at the disposal of management.

Function of a Manager # 4. Leading (Directing): Motivating and Managing Employees:

Leadership is required if organisational goals are to be achieved. Once the organi­sation process is complete, all management has to do is to assign different people in their respective roles. It is at this point that managers must engage in what people in organisation consider the hardest part of the management process — leading.

Leading is the set of processes used to get members of the organisation to work together to further the interests of the organisation.

Four activities:

The leading function consists of four different activities. One is motivating employees to put effort. This activity involves giving employees the opportunity to attain individual goals and rewards through the performance of their respective jobs.

A second aspect of leading is leadership itself. Leadership focuses on what the manager does to encourage organisational performance (rather than on manage­ment activities geared to employee needs and expectations).

The third part of leading is dealing with groups and group processes. The initial creation of groups in a company is a part of the organising process. However, the manager must then deal with group members and activities, on an ongoing basis, from an interpersonal perspective.

The fourth component of leading is communication. This is a basic aspect of a firm’s promotional strategy.


Leadership influences persons to act for a common end or purpose. A skillful leader knows the personality, character, wants, behaviour patterns, and organisational requirements of subordinates.

Function of a Manager # 5. Controlling: Correcting Deviations from the Plan:

The final phase of management process is controlling. As the organisation moves toward its (established or pre-determined) goals, management must maintain its progress. It must make sure what the organisation is performing in such a way as to arrive at its ‘destination’ at the specified time. Monitoring a firm’s operations and correcting deviations from established goals constitute the controlling function.

Controlling involves taking appropriate actions to ensure that organisational goals and objectives are planned and carried out, i.e., the firm achieves maximum effec­tiveness. In short, controlling helps ensure the effectiveness and efficiency needed for successful management.

Management by objectives (MBO) is a relatively recent innovation in manage­ment that often improves performance and morale. MBO involves the joint estab­lishment of objectives and performance review procedures in an effort to improve productivity. This principle is based on the theory that people find satisfaction in their work and accept responsibility for their performance.

To be effective, MBO should have the approval and commitment of top management and provide a means for participation by subordinates in the setting of objectives, a degree of self-deter­mination in implementing plans, and a periodic review of performance.

Submitted by : Professor Gabriella, Category : Manager