Functions of management

Welcome to the World of Management!

Ever wondered how a massive company like Amazon manages to deliver millions of packages on time, or how your local café ensures they have enough milk every morning? It doesn't happen by accident! It happens because of management. In this chapter, we are going to look at what managers actually do, the "rules" they have to follow, and how we can tell if they are doing a good job. Don't worry if some of the terms sound a bit "business-y" at first—we’ll break them down using simple examples you see every day.

Think of a manager like a conductor of an orchestra: they don't play every instrument, but they make sure everyone plays together at the right time to create music instead of noise!

1. What is Management?

At its simplest, management is the process of organising and coordinating business activities to achieve specific goals. While "Leadership" is often about having a big vision for the future, "Management" is about the day-to-day work of making that vision a reality.

Quick Review: Management is about getting things done through people and resources.

2. The Functions of Management

To keep a business running, managers perform several key functions. A famous theorist named Henri Fayol identified five main functions. You can remember them using the mnemonic P.O.C.C.C.

Planning

This is where it all starts. Managers must look ahead and set objectives (goals). They decide what needs to be done, how it will be done, and what resources are needed.
Example: A shop manager plans to increase sales by 10% next month by running a "Buy One Get One Free" promotion.

Organising

Once there is a plan, the manager must gather the resources. This involves assigning tasks to the right people and ensuring everyone has the tools they need.
Example: Assigning one staff member to the till, another to restocking shelves, and ordering more stock from the supplier.

Commanding (or Directing)

This is about giving instructions and guidance. Managers must lead their team and make sure employees know exactly what is expected of them.
Example: Telling the kitchen staff at a restaurant exactly what time the prep work needs to be finished.

Coordinating

Managers must ensure that all the different parts of the business are working together smoothly. If the Marketing department promises a sale but the Operations department hasn't ordered enough stock, the business fails. Coordination prevents this.
Example: Making sure the delivery driver is ready just as the warehouse team finishes packing the boxes.

Controlling

This is the "checking" phase. Managers monitor performance to see if the plan is working. If things are going wrong, they take action to fix it.
Example: Checking the end-of-day sales figures. If they are lower than the target, the manager might investigate why.

Memory Aid: Pizza Only Costs Cheap Coins (Planning, Organising, Commanding, Coordinating, Controlling).

Key Takeaway: Management isn't just one job; it's a cycle of setting goals, gathering tools, giving orders, syncing teams, and checking results.

3. Constraints on Management

Managers aren't superheroes—they can't just do whatever they want! They face constraints (limits) that make their job challenging. We can split these into internal and external constraints.

Internal Constraints (Inside the business)

• Financial Budget: A manager might want to hire 10 new people, but if the finance department says "no money," they can't do it.
• Labour Skills: You can't ask a team of bakers to build a website. Managers are limited by what their staff actually knows how to do.
• Business Culture: If the business is traditionally very slow and cautious, a manager might struggle to implement fast, risky changes.

External Constraints (Outside the business)

• The Law: Managers must follow rules on health and safety, minimum wage, and employment rights.
• The Economy: If the country is in a recession (people have less money), a manager’s plan to sell luxury goods might fail regardless of how good they are at managing.
• Competition: If a rival business drops their prices, a manager is forced to react, which might ruin their original profit plan.

Did you know? Even the biggest managers in the world, like the CEO of Apple, are constrained by laws and what their customers can afford to pay!

4. Evaluating the Success of Management

How do we know if a manager is actually "good"? We can't just guess; we need to look at evidence. We usually look at both financial and non-financial measures.

Financial Success Measures

• Profit: Is the business making more money than it spends?
• Meeting Budgets: Did the manager keep costs under the limit set at the start of the year?
• Sales Growth: Are more customers buying from the business than last year?

Non-Financial Success Measures

• Staff Turnover: If lots of people are quitting, it’s often a sign of poor management. If staff stay for a long time, the manager is likely doing well.
• Customer Satisfaction: Are customers leaving 5-star reviews or complaining?
• Efficiency: Is the business wasting less raw material or finishing tasks faster?

Common Mistake to Avoid: Don't assume a manager is "bad" just because profit fell. If the whole economy is crashing but the manager kept the business alive, that might actually be a huge success!

Quick Review Box

What is Management? Organising resources and people to reach goals.
What are the 5 Functions? Planning, Organising, Commanding, Coordinating, Controlling (POCCC).
What limits them? Budgets (Internal) and Laws/Competition (External).
How do we measure success? Profit, Sales, Staff Happiness, and Efficiency.

Don't worry if this seems like a lot to remember. Just keep thinking about that Orchestra Conductor—everything they do (the POCCC functions) is just to make sure the final performance is a success!