Functions Of Management

Functions Of Management

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Functions of Management
There are four primary functions that are performed by management. These four functions are planning, organizing, leading and controlling (Batemen & Snell, 2009, p. 19). Planning is where all the concepts of an organization are conceived. Organizing is how the organization is setup. Leading is how an organizations management motivates its employees. Finally, controlling is how management determines how the company is doing and then decides what changes need to be made (Batemen & Snell, 2009).
Planning is the first function of management. This is where everything begins. This is where management takes a look at the company’s current position, as well as the goals it has for the future, and plans how it is going to move forward and achieve these goals. Management will decide what actions are required to move the company forward and in what direction they want to take the company (Batemen & Snell, 2009, p. 19).
At Premiere Real Estate, where I current work, the planning function is performed primarily by the owner of the company. I have some input as the office manager, but ultimately, the decision is his to make. I have most input when it comes to planning how the office itself runs versus how the company runs.
Organizing is the next management function. This is where management decides how the company itself needs to be setup. This is where the management decides what types of resources the company requires to implement the plans that they came up with during the planning stage. Examples of these resources are human, financial, and physical (Batemen & Snell, 2009, p. 20).
In the company I work for, this is primarily my responsibility. After the owner gives me his plans for where he wants the company to go, he leaves it to me to organize how the company is going to accomplish his plans. I’m given a budget and from there I make the necessary decisions as to how to spend that budget. It is my responsibility to determine whether or not I need to acquire more employees to help implement the plans. I also need to decide if we are technologically where we need to be and make sure that we have the appropriate physical space to implement the owner’s plans.
The next function is leading. This function is how management motivates and communicates with their employees.

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Management determines how it is going to encourage their employees to work, and achieve the goals of the organization (Batemen & Snell, 2009, p. 20). There are various methods that can be used here, including bonuses, training and discipline (Erven, 1999).
In my company, this function is performed primarily by the company owner and myself. We mostly do this through bonuses based on everyone’s performance. Usually if we have a good week, the owner of my company will give me an extra allotment of money in the budget and tell me to divide among the employees based on how I feel they are performing. I also use the training method a lot. I like to get as many employees as possible trained to take the next step forward in our company. As far as my employees go, I have to say I luck out, because I have rarely, if ever, had to us punishment as a motivator.
The final function of management is controlling. When using this function, management looks at the various methods it has for feedback to determine where they stand in relation to the plan they are implementing (Batemen & Snell, 2009, p.20). This could include anything from customer feedback surveys to sale figures and profit or loss numbers. After looking at these feedback methods, management then adjusts the plan according to either adjust the goals or how they are going to achieve them and get back on track.
In our company, the primary method of feedback I use is our timeframes, number of closing and the number of new properties we’re assigned. Each order type has a certain timeframe we are looking for when returning it completed to our client. The faster our turnaround times, the better our performance is. I also look at the number of properties we’re assigned versus the number of properties we retain until the hired agents close on them. The higher percentage of properties that we retain until closing, the better our performance is. If an of these numbers were to drop, I would probably mean I need to higher more employees to help with the increased volume.
Again, management uses four functions on a daily basis to run their respective companies. They plan goals and how to achieve them. Then they organize the company to achieve the goals as planned. Next they lead their employees to work as efficiently as possible towards the company’s goals. Finally, they use various methods of feedback to control how they’re doing. That is how management functions. They plan, organize, lead and control.

Batemen, T. S. & Snell, S. A. (2009). Management: Leading & Collaborating in a Competitive World (8th Ed). New York: McGraw-Hill.
Erven, B. L. (1999, February 24). Directing. Retrieved September 29, 2009, from Ohio State University, Management Excel web site:
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