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The Five Functions of Management

Updated on July 19, 2015

Controlling a complex organisation so as to achieve desired goals resulted in the evolution of the concept management. Management include all those people who are concerned with managing an organisation. It is a sum of organised activities by a group of people. Management involves decision making at various levels of organisation for getting things done by others. It is both science and as well as an art, because the fundamentals of management are the same everywhere but the practices differ.

Definition of Management

"To manage is to forecast and plan, to organise, to command, to co-ordinate and to control."

- Henry Fayol

"Management is a distinct process consisting of planning, organising, activating and controlling to determine and accomplish the objectives by the use of people and resources."

- G.R. Terry

"Management is the development of people and not the direction of things. Management is the personnel administration."

- Lawrence A. Apply

"Management is the art of getting things done through and with the people in formally organised groups."

- Horold Kanontz

"Management is simply the process of decision making and control over the action of human beings for the express purpose of attaining pre-determined goals."

- Stanley Vance

Functions of Management

George and Jerry explained four fundamental functions of management. According to them functions of management are planning, organizing, actuating and controlling.

POSDCORB is the key word used by Luther Gullick to explain the functions of management In POSDCORB; P stands for planning, O for organizing, S for staffing, D for directing, Co for co-ordination, R for reporting and B for budgeting.

Newman and Summer gave the managerial functions which include organizing, planning, reading and measuring and controlling.

Koontz and O’Donnel explained five functions of management. They have become widely accepted functions of management everywhere. They are planning, organizing, staffing, directing and controlling.

Five Functions of Management by Koontz and O'Donnel

Five functions of management as explained by Koontz and O'Donnel are as follows;




Directing and


The above five management functions as mention by Koontz and O'Donnel were briefly explained here under.


Deciding in advance what to do, how to do, why to do, where to do and who will be responsible for doing is planning. Determination of the objectives of business, splitting of objectives into goals for each department of the organization and formulating policies, programs, procedures rules and regulations and budget are the important steps involved in planning. Read More...


Division of work into functions and sub-functions, grouping of activities that are closely related in their nature, assigning of duties and responsibilities to the employees and finally delegation of authority and power to each employee or the group to discharge their duties accordingly are the processes come under the function of management organizing. Read More...


Communication, leadership and supervision and last but not the least motivation are the elements come under the function of management, directing. Directing is nothing but guiding and leading the people in an organization. It is not just giving instructions by a superior to the sub-ordinates but also is a process of supervising, guiding and motivating the latter to achieve the organizational goals. It is a complex function of management that ensures the employees work effectively and efficiently. Read More...


The process of making out, assessing, appointing, evaluating and developing the employees at work in an organization is staffing. In here the characteristics of a job are determined primarily. It is followed by ensuring of the right number of and kind of employees are placed at the right places and at the right time when organization is in need of them. Staffing function of management begins with notifying the vacancies in the organisation and selecting the best individuals as employees. Performance appraisal and manpower development are the other processes involved under staffing function of management. Read More...


It is the process that ensures whether the resources are obtained and used efficiently in achieving the organizational objectives. Controlling function of management is closely linked with the planning function because, it includes checking the performance of employees to see whether the planned performance is being achieved by them or not. Budgetary control, Inventory control, quality control, profit and loss control, Management audit, cost accounting and cost control, production control, financial control, break-even analysis and internal audit control are the important control devices of controlling techniques. Read More...


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    • profile image

      uwayo emmanuel 3 months ago

      thanks you for sharing

    • profile image

      mustafiz 9 months ago

      just helpuful thanks

    • profile image

      Priti 2 years ago

      It is really helpful for me...Thank you for sharing...

    • profile image

      swarupa 2 years ago

      These are very useful my business .Thank you very much.

    • profile image

      swarupa 2 years ago


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      Rahul Gaikwad 2 years ago

      very helpfull and good function of mgt.

    • profile image

      kartheek 2 years ago

      Pkease add co- ordination topic

    • profile image

      Hena chaudhary 2 years ago

      It is very useful for me .

      Thanks you

    • profile image

      danielget 2 years ago

      this is good functions of mgt

    • profile image

      dabay sani sulaiman 2 years ago

      lost but never fogortten................

    • profile image

      Kibwage Ronald 2 years ago

      You have extensively exhausted under management and their principles, it makes us health who study management .Thanks and God bless you.

    • profile image

      ronalyn 2 years ago

      Its good idea

    • profile image

      Guliye 2 years ago

      Very helpful for anybody interested in management.Am now acquinted with management functions.Thanks

    • profile image

      Amara 2 years ago

      Quite a good on of us didn't understand it before, glory be to God u came for rescue. I appreciate your effort in finding time for this, God bless u.

    • profile image

      mayuri jain 3 years ago

      its really nice for students

    • dhimanreena profile image

      Reena Dhiman 3 years ago

      You have extensively covered all important functions of management. I appreciate your in-depth knowledge on the subject.

    • JYOTI KOTHARI profile image

      Jyoti Kothari 3 years ago from Jaipur

      Hi Dilip,

      Well explained hub with several management principles. Related links are very useful. You seem to ne an expert in management.

      Tanks and rated up! Rated useful and awesome.

    • profile image

      ranjani 3 years ago

      thank u lot it is very use full for my exam

    • profile image

      nikkita 4 years ago

      thank you for sharing

    • profile image

      marjorie 5 years ago

      A managers need a nice heard

    • profile image

      victoria 5 years ago

      it has been very helpful as i answer questions in my graduate school class exam

    • profile image

      Michael Oloo 5 years ago

      Is staffing then seen as every managers responsibility? Any examples?

    • brandyBachmann profile image

      brandyBachmann 5 years ago

      Good and informative hub!

    • Kamalesh050 profile image

      Kamalesh050 5 years ago from Sahaganj, Dist. Hooghly, West Bengal, India

      Very nice hub, enjoyed it. It's useful and interesting.

      Thank you for sharing. Voted Up. Best Wishes, Kamalesh

    • albertsj profile image

      jacy albertson 5 years ago from Lake Mary, Fl

      This is very good, helpful and well layed out. I'm not good at #5. I am if it's my own, but not someone elses. Guess that's why I've never managed. ; )Voting up and sharing.

    • Johnnyd44 profile image

      Johnnyd44 5 years ago from Florida

      Good breakdown of the elements. I appreciate your work and taking the time to share it.

      Looking forward to reading more.


    • alocsin profile image

      alocsin 5 years ago from Orange County, CA

      A nice assessment at management. I'm not good at number 4, so doubt I'd be any kind of a manager. Voting this Up and Interesting.