OER for a Post Graduate Programme in HRM

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Module 1 :
Principles of Management

Module Content Map

Topic 1:What is management?

Definition of Management | Process of Management | Nature of Management | Primary Functions of Management | Levels of Management | Key points & Activity

Go next Topic 2:
Management Theories

Primary Functions of Management

Following are the five primary functions of Management.


Planning is the outlining of a future course of action by deciding objectives and formulating the policies and procedures for achieving the objectives. It is the ongoing process of developing the mission and objectives of the business and determining how they can be accomplished. Planning includes both the broadest view of the organization, e.g., its mission, and the narrowest, e.g., a tactic for accomplishing a specific goal.

The organizing, staffing, directing and controlling functions stem from the planning function.


Organizing is the determination of activities to achieve the objectives, assigning the activities to a group of people and get the activities carried out successfully through effective coordination. It is the process of establishing the internal organizational structure of the organization. The focus is on division, coordination, and control of tasks and the flow of information within the organization. It is in this function that managers distribute authority to job holders.


In this step the Managers assess the staff requirement to achieve the objectives and arrange to recruit and train the staff. Staffing is filling and keeping filled with qualified people all positions in the business. Recruiting, hiring, training, evaluating and compensating are the specific activities included in the function. In the family business, staffing includes all paid and unpaid positions held by family members including the owner/operators.


Directing is influencing people's behavior through motivation, communication, group dynamics, leadership and discipline. The purpose of directing is to channel the behavior of all personnel to accomplish the organization's mission and objectives while simultaneously helping them accomplish their own career objectives


Controlling is the process by which it is ensured that the activities are being carried out in accordance with the approved policy and procedure. It is a four-step process of establishing performance standards based on the firm's objectives, measuring and reporting actual performance, comparing the two, and taking corrective or preventive action as necessary.