The Essential Four Functions of Management in a Business Organisation

Nov 13, 2019

5 min read
how do i find wholesale suppliers

Being an entrepreneur takes a lot more than to just start a company and let it run itself. More often than not, entrepreneurs carry on with the leading and managing duties long after the initial period. Knowing in which direction the company moves and how, makes the whole difference when it comes to achieving the preset goals. Hence the need of understanding the four functions of management in order to become a better manager of your firm and your employees.

If you’ve been employed up until now, you are probably familiar with only two of them – leading and controlling. However, the other two (planning and organising) are not very evident to everyone, yet require the most time and energy to complete. To help you gain a better perspective, below are explained the basic functions of management.


Not rarely the difference between success and failure lies in crafting the right plan. Unfortunately, there is no magic wand to help you predict the future and create the ideal scenario. Only knowledge and thorough analysis can craft a sound plan.

To foresee trends that may shape a future opportunity, you need to put your thinking hat on. Dive deep into the market and see what makes competitor’s products popular among consumers? Coprenhend the solution they’re offering and make it even better. Also, come up with as many possible bad scenarios as you can because Murphy always seems to get his way. This way you’ll be prepared for the worst. Moreover, these problems can represent opportunities that will triger your genious brain cell and turn you into a pioneer of a brand new industry.

In essence, planning requires setting small, medium and big company goals, and finding the best means to accomplish them. In other words, a plan is the sum of the actions you intend to take and the mechanisms you will use to achieve your goals and grow for your company. Plus, it helps to maintain your managerial effectiveness by pre-planning future activities.

For managers, planning, predicting, and decision-making are the golden traits ensuring them to run the company in the right direction. Decision making is also crucial in times of change that come more often than you’d think. After all, we are living in a dynamic business world.


Now that you’ve got a plan, it is time to organise everything. It is a process that brings the plan to action. You will need to arrange and alocate all of the resources needed for the execution of the plan. Beware, one of the most time-consuming and complicated things you’ll need to do at this stage is to coordinate the activities and resources between all departments.

Organising produces a system of relationships with a primary function to pursue the pre-planned goals. As the manager, you should establish an internal structure of roles by giving each member of the team a well-defined list of daily as well as long-term goals.

Furthermore, creating a set of rules to control the flow of work and making sure there won’t be any significant disruptions is a must. That way, you will increase the productivity of your employees and strenthen the bones of the company, that tend to be fragile at the beginning.


The third and most important function of the management process is leading. It is a skill that influences people for a particular purpose. Through leading, the manager influences others to work at the best of their abilities and contribute to the success of the company.

Leading is defined as creating a positive atmosphere towards working and completing goals among the employees. Leading provides direction, motivation and coordination in a company. Without them, no company can function.

Coordinating is an essential part of leading, although many do not consider this as a valuable function of management. Without it, the process of management would be impossible. It plays the most critical role of leading because it helps members synchronise their efforts so they can accomplish the company’s goals.

Knowing how to motivate others is a quality that all great leaders posses. Motivated employees go even beyond their limints to accomplish their goals. Thus, productivity and efficiency increase.

Being a leader requires using different motivation leadership styles and approaches when communicating with employees. What works for the Marketing chief, won’t necessarely work for the Chief of Business Development.

Happy staff = successful company.


Controlling involves finding, measuring and comparing deviations and correcting them if needed. There are many control activities you can use, such as measuring performance, analysing existing standards with previous ones to find variations and mending them accordingly (with disciplinary or technical actions).

Speaking of deviations, if they persist, the people responsible for them must be identified, and appropriate measures must be taken so that they can improve themselves on that particular matter or the overall performance.

Control comes last in management, but that does not mean it is the least vital part of it. Planning without control would be useless. With the help of controlling plans come into fruition.

However, excessive control can be counter-productive and cause negative effects especially on employees. Make sure the control you impose is healthy and non-intimidating.


All functions are entwined together and the management process does not allow skipping either of them. Thanks to good management, a positive working environment is established, where everyone knows their job and every resource in hand is purpusefully used for the growth of the company.​

more in Business Insights

Let’s stay in touch

All our latest business knowledge delivered to your inbox a few times a month

Share This
Start expanding your business now. Join for Free.