Topic 7: Four Functions of Management

Four Traditional Functions of Management

Planning, Organizing, Leading, and Controlling.

Planning

The process of identifying and selecting organizational goals and developing strategies for achieving high performance.

Goal Selection

The first step in planning, where the organization decides which goals to pursue.

Strategy Adoption

The second step in planning, involving the choice of strategies to attain selected goals.

Resource Allocation

The third step in planning, determining how to allocate resources to pursue chosen strategies.

Example of Planning

Michael Dell's goal to sell inexpensive personal computers by selling directly to customers.

Organizing

Structuring working relationships to promote cooperation towards achieving organizational goals.

Departmental Organization

The process of grouping people into departments based on job-specific tasks.

Lines of Authority

Establishing clear lines of authority and responsibility within an organization.

Growth of Dell Computer

Michael Dell's hiring of 100 new employees weekly as the company expanded.

Complex Organizational Structures

Developed by Dell to meet the growing goals of the company.

Leading

The function of articulating a clear vision and energizing employees to understand their roles.

Leadership Skills

Utilizing power, personality, influence, persuasion, and communication to lead effectively.

Example of Leading

Michael Dell's hands-on leadership style that fostered a committed workforce.

Controlling

The process of evaluating goal achievement and taking corrective actions to improve performance.

Performance Monitoring

The act of assessing performance at individual, departmental, and organizational levels to ensure standards are met.