The Five Functions of Management and Their Role in a Business
Entrepreneurs have a similar heroic nature to managers. They constantly face the dilemma of swimming against the tide, against one or more constituencies, or against convention. This element of humanism also extends to management, where there is no escape from responsibility and no reason for failure. However, a good manager can provide an idealistic and creative atmosphere that keeps employees motivated. This is the essence of management. Let us consider five functions of management and their role in a business.
The controlling function is responsible for setting policies and enforcing them. Its main functions include coordination, budgeting, and reporting. These four functions are called the POSDCORB model of management. The term “management” is derived from the XV century French verb’mesnager’, which meant to hold the reins of a horse. The Italian and Spanish terms maneggiare and manejar mean to handle and rule horses. All three are derived from the Latin words manus and agere.
The controlling function encompasses all functions of the management process. In small businesses, managers have a broader range of roles. In large organizations, they may perform all functions. English, for example, derives from the XV century French word’mesnager’, meaning to hold the reins of a horse. The Latin words manus and agere are the root words of the word’management.’ The term POSDCORB was coined by Luther Gulick, who grouped all four functions into the POSDCORB framework.
In small organizations, the role of management is more limited. In large businesses, the role of the manager may encompass all the above functions. Although it is considered to be a modern concept, it has roots in the ancient world. For example, the Egyptian pyramids were constructed by slaves who had to motivate their labor force. In the pre-industrial world, small enterprises were not compelled to confront the problems of management. Innovations such as Arabic numerals, double-entry bookkeeping, and accounting helped to provide tools for measuring and planning the performance of an organization.
In a modern-day organization, managers focus on the controlling function of an organization. They supervise the daily activities of employees, monitor the quality of their work, and communicate problems to higher levels. Managing an organization’s image is a crucial task for managers. A manager has direct contact with all of the employees, including workers and customers. Its image is shaped by the employees. A manager focuses on the 5M’s of management.
The controlling function of management involves the planning and execution of projects. The planning function is the keystone of management and is the most important part of any organization. The controlling function is responsible for making sure that a business is in its best interests. In small companies, the controlling function involves making sure that the company is running smoothly and meets its goals. For large enterprises, this function is crucial. It makes it possible to make sure that all tasks are carried out in a smooth and effective way.