It means selecting the objectives, formulating the policies, programs, and procedures to achieve these objectives. Objectives are grouped into those of individuals, departments, and the enterprise. Planning involves decision making and selecting a definite course of action from among various alternatives. The responsibility of planning goes on the shoulders of managers, whether they are at the top, middle or bottom of the organization structure. It is looking ahead and concerned with the future. Planning is what to do, when to do, how to do, who to why is to do. It provides yardstick against which actual performance is measured.
The next function of manager is organizing. It involves the establishment of definite structure of roles. It includes grouping of activities, assignment of these activities to organizational groups, the delegation of authority and coordination of the authority delegated. Since one may can not perform all the functions, the activity must be split off into buying, selling, producing, accounting to achieve enterprise objectives. In organizing a business a full advantage of specialization is enjoyed. The organization must fit the task and not vice versa. The organization structure is not an end in itself but a means to an end.
Organizing creates organization, and organization creates management. Organization which is a group of persons is formed owing to time, physical, and ability limitations.
It includes hiring, selecting, placing, transferring and firing. It is the function of a manager to define man power requirements for the job to be done, determine workman’s compensation and train the workers. The objective of staffing is to create such a team which is loyal to company and its objectives. Wage and salary administration, pension, bonus, gratuity, group, insurance, provident fund, employees welfare, transfer, promotion, retirement, leave, medical come under the purview of personnel administration. Personnel administration is the new term, used for staffing. Staffing even before hiring and continues even after firing.
Directing or Leading
It involves guiding, supervising of sub-ordinates. The superior manager must teach his subordinates the enterprise tradition, history, objectives and policies. Subordinates must learn the organization structure, interdepartmental relationship of activities and responsibilities. They should also know their duties and authorities.
Directing improves the performance of the workers. It motivates them to work with zeal and confidence. The supervisor’s leading, communicating, motivating and persuading come under the function of directing. Now better term leading is used for directing.