Management is a complex and multi-faceted process. Why is it needed and what is its essence? We will talk about the concept and classification of management functions, consider approaches to this problem and characterize the main functions.
Management concept
In general terms, the constant and focused process of the subject's influence on the object is called management. Objects can be people, groups, organizations, production and other processes, mechanisms, devices. The synonyms of this term are the words “direct”, “direct”.
In management, management is understood as meaningful, thoughtful, regulating and organizing impact on the social life of people. It can be carried out directly or through specially organized structures, bodies. These intermediaries include the state, political parties, and organizational structures of enterprises.
The main tasks of management are the rational organization of work, ensuring coherence and unity of action for all actors in the production process, and organizing an even distribution of the load among employees. Managers of different levels take part in the management, they are subjects, and performers act as objects.
From the middle of the 20th century, along with the term "management", the English name of the designated activity - management - begins to be used. The same word is also called a science that studies the features of management in the sphere of production. It substantiates the basic principles and features of management, and also develops various classifications of management functions. The scientific understanding of the specifics of management as a process in the field of production led to the emergence of several basic schools of management, and in each of them the purpose, goals and objectives of management were understood differently.
Management functions
The classification of management types and their functions is created with the aim of most comprehensively characterizing the essence of this process. The complex of allocated functions defines different types of managerial activity. Experts say that there is a management of technology, processes in living systems, social processes, people, organizations. In the case of the latter, four main functions are traditionally distinguished: activity planning, organization of the enterprise’s work process, staff motivation and control of personnel performance. However, in managing such a complex system as a state, a different set of functions is distinguished.
State management
This type of management has bright distinctive features. These include:
- imperious, executive and administrative nature of this activity;
- management is carried out on the basis of laws; therefore, a subordinate nature is inherent in it;
- in public administration, horizontal and vertical ties are distinguished, which makes him related to enterprise management;
- This type of management is provided by a guarantee system;
- There are legal and non-legal forms of this type of management.
In accordance with these features, a classification of the functions of government is built, it distinguishes the following types:
- Socio-economic. Their implementation is associated with ensuring the economic stability of welfare, building a system of economic relations that ensure the stability of the state system.
- Political. These functions are associated with the regulation of the political situation in the country, with the establishment of interaction between various political forces, public organizations, and the public.
- Security. The performance of these functions is associated with the guarantee of the rights and freedoms of all political forces in the state, improvement of the work of state structures.
- Legal and organizational. These functions are aimed at creating an effective legal system in the state, at monitoring the implementation of laws and respecting the rights of all residents of the country, public organizations.
Organization Management
In contrast to the management of the state system, organization management is built on other grounds. He is a professional management of production processes, whose tasks include the formulation of a development strategy, setting goals in the field of economic success of the enterprise. The main methods of organization management are economic instruments.
The head of the organization tries to build the activities of the enterprise in such a way that it receives maximum profit. To do this, he seeks to increase productivity and improve product quality. Also, the leader must constantly take care of the competitiveness of his organization, the formation of advantages in the market. All this leads to the constant performance by the manager of the specific management functions of the organization. The classification of management functions in the production sector is significantly different from those distinguished in the field of public administration.
A. Fayol's approach
The most convincing classification of management functions in management was developed by Henri Fayolem, a specialist in management theory, and the author of the concept of the administrative school of management. He identifies five main management functions:
- Forecasting or planning. As part of this function, the manager sets goals, develops organization development strategies, draws up long-term plans for various periods of the enterprise’s life, and predicts economic indicators based on an analysis of the market situation.
- Organization of the enterprise. This function involves providing production with the necessary resources.
- Administrative. This function instructs the manager to give instructions to his subordinates, to delegate part of the authority to downstream employees. This function is associated with the power of the manager, which he is vested within his authority.
- Coordination. The head must ensure the coordinated activity of various structural divisions of the enterprise, establish contacts within the organization and with third-party companies.
- Control. An important, final function, within which the manager must monitor the implementation of plans, the correct expenditure of resources.
Fayol’s approach appeared 100 years ago, and therefore later management theorists tried to rethink it, resulting in other classifications of management functions.
Special and General Management Functions
Many classifications of management functions divide them into several groups, somewhat agreeing with Fayol, and continuing it in some ways. In the traditional approach, general and special (or they are also called specific) management functions are distinguished. The former are characteristic of any organization: commercial, public, state. Within any system, they can be detected. The classification of common management functions goes back to the ideas of A. Fayol and includes: planning, organization, motivation and control. These functions always exist in a complex, and failure to perform any of them leads to a decrease in the organization's performance.
And special functions include supplying the organization with material and technical resources, providing personnel, transport, marketing, innovation, social development. These functions are not inherent in any organization and are performed as necessary.
Author classifications
Management functions are often tried to be divided into types and for other reasons. So, the American researcher L. Gyulik discovers 7 varieties of management functions, some overlap with Fayol’s point of view: planning, organization, coordination and control, while others do not: work with personnel, operational management, reporting.
From these ideas, the classification of information on the management function used in management and economics also follows, it is divided into planned, forecasting, regulatory, design and technology, reporting, accounting and financial and accounting. These types of information are reflected in documents, the creation of which is one of the functions of a manager.
There are also classifications of K. Killen, G. Kunz and S. Donnel, M. Fowell, there is a Russian classification. But all the basic classifications of control functions use the Fayolles approach as a base, with minor modifications. This is explained by the fact that he was able to identify the most essential functions. There is also a classification of control functions, in which the main and auxiliary functions are distinguished. The first are those that help achieve the goals that the organization faces: planning, organization, ongoing management and control. And the auxiliary ones are designed to facilitate the path to the goal - this is forecasting and motivation.
Planning
The very first management function is planning, which is associated with the development of an organization’s development strategy, setting goals and developing tactical action plans. It is necessary so that resources are spent rationally. Planning and goal setting are based on research and analysis of the situation. Organization plans can vary in time: long-term and short-term, as well as in areas: economic, material, technical, marketing.
Organization
Any classification of management functions in one form or another names the organization among the most important. It is associated with building the organizational structure of the enterprise, optimization and rationalization of the production process, with providing the company with the necessary resources. This function is necessary in order to create favorable conditions for the implementation of plans.
Motivation
Researchers, considering the nature and classification of management functions, often leave aside motivation. Meanwhile, today it is one of the most important and most difficult tasks facing the manager. It should create special conditions for performers so that they work with high productivity and take care of product quality. The manager must build a system of stimulation and motivation that would encourage employees to work better, develop, and increase their competence and professionalism.
Performing this function requires the manager to have knowledge of human psychology and the ability to use the tools of material and non-material incentives for employees.
Control
The final among the main functions of management is to monitor the progress of the production process. This function is one of the most important, since its implementation allows you to avoid or timely correct deviations of the results from the goals outlined in the plans. Control is carried out in the form of various inspections, reports and accounting. The results of control are closely related to the employee incentive system. Often the concept and classification of management functions are synonymous with control. This function is a kind of feedback form with managed objects. The implementation of control is associated with the authority vested in the manager, so it does not cause a negative reaction from the performers.