Four Functions of Managers - Planning, Organizing, Leading and Controlling #managers #functions

Summary

The script outlines the four key functions of management: planning, organizing, leading, and controlling. Planning involves setting future goals and determining the necessary tasks and resources to achieve them. Organizing focuses on structuring tasks and allocating resources. Leading emphasizes motivating employees and creating a shared culture. Controlling involves monitoring progress and adjusting as necessary. The script highlights examples from companies like General Electric and Chrysler to demonstrate these functions in action, stressing the importance of leadership and self-monitoring in achieving organizational success.

Takeaways

• 😀 Managers are responsible for solving difficult problems, turning organizations around, and achieving high performance.
• 😀 Peter Drucker identified four main functions of management: planning, organizing, leading, and controlling.
• 😀 Planning involves setting goals for future organizational performance and deciding on tasks and resources to achieve them.
• 😀 General Electric provides an example of planning by focusing company resources on key business areas like energy, aircraft engines, healthcare, and financial services.
• 😀 Organizing means assigning tasks, grouping them into departments, and allocating resources to turn plans into action.
• 😀 Companies like IBM and the FBI have reorganized their structures to accommodate changing plans.
• 😀 Leading is about motivating employees to achieve organizational goals by creating a shared culture and values.
• 😀 Chrysler CEO Sergio Marchionne spent significant time with executive teams to motivate employees and accomplish ambitious goals.
• 😀 Controlling involves monitoring activities, determining progress toward goals, and making corrections as needed.
• 😀 Recent trends suggest placing more emphasis on employee self-monitoring and correction, although ultimate responsibility for control still lies with managers.
• 😀 Michael Corbat, former CEO of Citigroup, used new tools to track manager performance and ensure accountability during the financial crisis.

Q & A

What are the four key functions of managers according to Peter Drucker?

According to Peter Drucker, the four key functions of managers are planning, organizing, leading, and controlling.

How does the planning function contribute to organizational success?

Planning helps managers identify goals for future performance and decide on the tasks and resources needed to achieve them, guiding the organization toward its desired future state.

Can you provide an example of effective planning from General Electric?

General Electric's management demonstrated effective planning by selling off non-core businesses like plastics, insurance, and media, and focusing on four key areas: energy, aircraft engines, health care, and financial services.

What is the organizing function of management?

Organizing involves assigning tasks, grouping them into departments, delegating authority, and allocating resources to turn plans into actionable steps within the organization.

How have organizations like IBM and the FBI used organizing to adapt to change?

IBM and the FBI have undergone structural reorganization to better align their internal operations with changing strategies and organizational goals.

What role does leading play in management?

Leading involves using influence to motivate employees, create a shared culture, communicate goals, and inspire high levels of performance in achieving organizational objectives.

How did Sergio Marchionne apply leading at Chrysler Group?

Sergio Marchionne, as CEO of Chrysler Group, used to spend about two weeks a month in Michigan, meeting with executives to discuss his plans and motivate the teams to reach ambitious goals.

What is the controlling function in management?

Controlling refers to monitoring employees' activities, determining if the organization is on track to meet its goals, and making adjustments as needed to stay aligned with objectives.

How has the approach to controlling evolved in recent years?

Recently, companies have moved away from top-down control and placed more emphasis on training employees to monitor and correct themselves, although the ultimate responsibility for control remains with managers.

How did Michael Corbat approach controlling at Citigroup during the financial crisis?

Michael Corbat, former CEO of Citigroup, emphasized accountability by tracking the performance of individual managers and implemented new tools to ensure greater discipline within the company during the financial crisis.