1.02 What managers do

If managers don’t perform the actual jobs, what do they do? They are responsible for carrying out the management functions of planning, organizing, staffing, directing, and controlling. The successful performance of these activities determines if a business will achieve its goals.

Planning. Planning involves deciding what work will be done and how it will be accomplished. First, managers identify goals. Then, they identify methods of achieving those goals and the resources required to carry out the plans. They also set dates for completing tasks and projects. As the manager of an ice-cream shop, for instance, you might set a goal of increasing sales. You might then decide to increase advertising to help achieve that goal.

Planning is important because it lays the groundwork for all of the other management functions. Organizing, staffing, directing, and controlling decisions are based on the plans the business has established. Planning also helps prevent mistakes and prepare for potential disasters. Managers who have a plan to follow are less likely to make hasty decisions, regardless of whether they are dealing with a small problem or a major crisis.

Organizing. Organizing involves setting up the way the business’s work will be done. First, managers review the plans that they have made. After that, managers determine the jobs that need to be performed. Finally, they group those jobs into departments and establish lines of authority. Let’s say that you own a restaurant-supply company and decide that the business needs an outside sales force. You assign these employees to the sales department and appoint a sales manager who reports to the vice president of sales. This type of organizing helps get the work done efficiently because employees know what their jobs are and who their supervisors are.

For a more in-depth look at the organizing function of management, see this article. Links to an external site.

Staffing. Staffing is an important management function because staffing helps the business find employees who know how to do the necessary work. Managers identify the types of skills that employees need to have, and they develop ways to recruit and hire the most qualified people. Staffing also involves assigning new employees to specific work areas and determining compensation for workers.

Another part of staffing involves deciding what skills will be needed in the future. Managers must consider what training the business should provide to new employees. They also must determine whether current employees need additional training and professional development so that the business can stay competitive. Finally, managers need to think about how the company can nurture the growth of potential new managers within its workforce.

Directing. Directing involves providing guidance to workers and work projects. Managers set the direction for the business and influence employees to follow in that direction. Not only do managers plan and organize the work, they guide employees in carrying out the work. Part of directing involves motivating and leading workers to accomplish the business’s goals. Managers use their skills to develop a team spirit among employees. This benefits the business because employees who work together well are often motivated to do more than those who work alone. Managers may motivate employees by rewarding them for their hard work. Employee rewards can include bonuses, pay raises, and promotions.

Controlling. Controlling involves monitoring the work effort. Managers coordinate the business’s activities to make sure that the company is performing effectively and achieving its goals. There is a strong link between planning and controlling. Planning sets the goals and controlling checks to make sure the goals are being met. Let’s say you own a restaurant and promise to serve lunch orders within 15 minutes, or the meals are free. Your goal is prompt service. You monitor this activity to make sure you don’t lose money by giving away free lunches. The control function helps you manage the finances of your business.

Another important part of controlling involves monitoring and measuring employees’ performance, identifying problem areas, and making corrections when necessary. To do this, managers set performance standards and evaluate employees against these standards. If managers find there are problems, they make corrections. Plus, managers try to anticipate problems before they occur and take preventive action to avoid any difficulties. Suppose that you are a sales manager who is concerned that salespeople are going to spend too much money entertaining customers compared to the amount of sales they may obtain. As a result, you might start a cost-savings program. The purpose is to address the issue of overspending before it becomes a problem for the company.