Functions of Management

Management Functions

Principles of management categorized management functions into the four major functions: planning, organizing, leading, and controlling. These four functions are shown in the P-O-L-C figure below.

Management functions are planning,organizing, leading, controlling
P-O-L-C Framework

P-O-L-C framework


Planning is the function of management that includes setting goals, objectives, vision and mission and develop a strategy to achieve these goals and objectives. Effective planning requires that managers should be aware of internal and external environmental conditions currently facing their organization and anticipate future conditions. Managers should be good decision makers for effective planning.

There are three different types of planning.

Strategic planning involves SWOT (strengths, weaknesses, opportunities, and threats) analysis of the organization, and based on SWOT analysis results determine position of the organization to compete effectively in their environment.

Tactical planning is 1~3 years planning that is considered to develop comparatively concrete and definite means to implement organizational strategic plan. Tactical planning often devised by middle-level managers.

Operational planning assume the existence of organizational and their subunit goals and objectives and determine ways to achieve them. Operational planning is short term (<1 year) planning that is considered to develop specific course of action that support both strategic and tactical plans.


One of the important function of management is organizing that includes development of organizational structure and allocate human resources to attain organizational goals and objectives. Organizational structure mean formal hierarchy of command which specify who will to whom and through which channel. Organizational structure provides a framework within which efforts of all working groups are coordinated. The organization structure is generally represented by an organization chart or organogram, which provides a graphical representation of formal chain of command in an organization. Decisions about the type of jobs in the organization are usually called “job design” decisions. Another important aspect of organizing function of management is forming organization culture. A culture of sharing ideas, motivation and encouragement.


Leading includes social and informal channels of influence that managers used to inspire action taken by their subordinates. If managers have good leadership qualities, their subordinates will be excited about applying effort to accomplish organizational goals and objectives.


Controlling function of management involves confirming that performance does not differ from set standards. Controlling comprises of three steps, which are (1) developing performance standards, (2) relating actual performance with standards, and (3) taking appropriate corrective actions when and where necessary. Organizational performance standards are defined in monetary terms like costs, revenue or profits it but may also be defined in other terms like number of units produced, quality of products, number of defective units etc.