Management has four functions: planning, organizing, leading, and controlling. Planning is when managers determine goals to get organized and how they go about achieving those goals. Employees are more likely to work harder, willing to work more hours, engage in positive behavior from accomplishing company goals, and think of creative ways of doing their jobs. This helps improve employee performance and could likely increase company growth and profits. Organizing is when managers determine where decisions will be made, which employee does what jobs or tasks, and which employee will work under which specific someone in the company. This is basically figuring out how things get done.
Leading is how managers encourage their employees to work hard to achieve company goals. It is key to intelligibly communicate what the goals are. Controlling is when managers monitor the company’s goal achievement progress and take action if need be if progress is not being made.
Setting standards to achieve company goals, comparing employee performance to those standards, and making some changes if need be to restore employee performance to those standards are key to basic control. There are key differences between the responsibilities of top managers and middle managers. Top managers are those who hold the highest positions in and are in charge of general administration of the company. One responsibility they have is creating circumstances for change in the company.
Another responsibility they have is creating employee buy-in, meaning they build employee commitment to the company’s mission and/or goals. Another responsibility they have is that they are obligated to create a good-natured business culture through action and language. The final responsibility they have is observing the environments of their business(es). Middle managers are those who hold positions right under top managers. One responsibility they have is establishing goals uniform with those of top management and for planning and executing specific strategies for reaching those goals.
One particular responsibility they have is planning and distributing resources to meet company goals. Another responsibility they have is organizing and bringing groups, departments, and divisions together within a company. Another responsibility they have is observing and managing the performance of managers who work under them and report to them.
The final responsibility they have is executing the strategies or changes made by the top managers above them. Bureaucratic management was proposed by Max Weber. This type of management works best in government organizations. Weber thought that people in a bureaucracy should run things on the basis of knowledge or how qualified they are. Weber’s seven elements of bureaucratic organizations are: qualification-based hiring, merit-based promotion, chain of command, division of power, impartial application of rules and procedures, recorded in writing, and managers separate from owners. Administrative management was proposed by Henri Fayol. This type of management works best in business organizations. Fayol was an important person who contributed a lot to the field of management.
Fayol came up with the five functions of managers, those being: planning, organizing, coordinating, commanding, and controlling. Though now, the coordinating function was taken off most management textbooks and now refer to the commanding function as “leading.” Fayol’s fourteen principles of management are: the division of work, authority and responsibility, discipline, unity of command, unity of direction, subordination of individual interests to the general interests, remuneration, centralization, scalar chain, order, equity, stability of tenure of personnel, initiative, and esprit de corps.