The Five Functions of Management

by Victor J. McCoy

French industrialist Henri Fayol wrote that all managers perform five functions: They plan, organize, command, coordinate, and control. Today, we have condensed them to these four: planning, organizing, leading and controlling.

It is true, that organizations exist to achieve goals however lofty or minuscule they may be. It takes a competent and skilled person to accurately define those goals and the means for achieving them. Management or leadership is that someone that must make sure the right (or best) goals are being pursued by the organization. If leadership is not clear as to which goals to pursue it won't be long before the organization ceases to exist or become stagnant

The planning function defines and prioritizes the organization's goals. In the planning process both the strategic plans and tactical plans are determined along with a time frame and resources needed.

The organizations structure is critical to the execution of the plan. Many good plans fail because the organizations structure would not support such a plan. Failure occurs when the organizing function is not carefully deliberated. It includes determining what task are to be done, who is to do them, how those task will be grouped, the chain of command, and what type of reporting system will be needed.

The third function of management requires a person(s) with good to great leadership ability. This function requires people to get the job done as efficiently and effectively as possible. Therefore, leadership skills are a must for the person responsible for this function. They must possess the people skills to motivate and encourage others to do their best, and reward them when they do and lovingly (but firm) correct them when they don't.

The final function of controlling ensures that things are getting done according to plan with adjustments being made if necessary. Significant deviations could be very costly and destroy an organization. Actual performance must be monitored documented and compared to what was actually planned.

You will find these four functions operating in any successful business to some degree or another, formally or informally. You will not find these functions in a failing business, but you will find dysfunction.