5 Basic Functions that Make Up Management and Leadership

5 Basic Functions that Make Up Management and Leadership

Leadership and management must go hand in hand, but they are not the same thing. Leadership and management are complementary, but it is important to understand how they differ. 

Leadership is about vision and innovation, whereas management is about maintenance of excellent standards. A leader innovates and a manager administrates on the innovation. A leader focuses on individuals and inspires them, a manager focuses on systems and structure. A leader always has their eye on the horizon, whereas a manager should be watching the bottom line. 

While it is important to be aware of the difference between management and leadership it is vital to understand that a good manager is also a leader. 

There are five basic functions of management and leadership: 

Planning Planning is one of the most important project management and time management techniques. Planning is preparing a sequence of action steps to achieve some specific goal. If leaders do it effectively, they can reduce much the necessary time and effort of achieving the goal. A plan is like a map. When following a plan, leaders can see how much they have progressed towards their project goal and how far they are from their destination. 

What are the steps involved in planning? 

1. Goal setting – identifying goals and setting objectives are the most crucial part of planning. One cannot make plans unless one knows what is to be accomplished. Objectives constitute the mission of an organisation. They set the pattern of future course of action. 

2. Developing the planning premises – these are assumptions and conditions identified through accurate forecasting of likely events. They are vital to the success of planning as they supply per tenant facts about future. 

3. Reviewing limitations - The key areas of Iimitations are finance, human resources, materials, power and machinery. These limitations restrict the smooth operation of plans and they must be anticipated and provided for. 

4. Deciding the planning period - Once the broad goals, planning premises and limitations are laid down, the next step is to decide the period of planning. The planning period should be long enough to permit the fulfillment of the commitments involved in a decision. 

5. Formulation of policies and strategies - After the goals are defined and planning premises are identified, management can formulate policies and strategies for the accomplishment of desired results. The responsibility for laying down policies and strategies lies usually with management. But, the subordinates should be consulted as they are to implement the policies and strategies. 

Organising Organising is the relationship between people, work and resources used to achieve the common objectives. It facilitates an efficient work environment and increases the chance that team members achieve their goals at work.  

Like planning, it must be a carefully worked out and applied process. This process involves determining what work is needed to accomplish the goal, assigning those tasks to team members, and arranging those members in a decision-making framework. 

Organising skills are important because it balances many tasks efficiently and effectively. If a business’ systems are not properly organised, tasks pile up, paperwork gets lost, and valuable time is spent on finding information that should be readily available. Good organisational skills can save a business owner time and reduce stress.  

Staffing Staffing should not only be about the process of hiring, positioning and overseeing employees. It should be an important business strategy. Let’s call it talent management. There should be a commitment recruit, retain, and develop the most talented and superior team members available in the job market. Talent acquisition is an ongoing strategy to find specialists, leaders, or future executives for the company. It focuses on long-term human resources planning and finding appropriate candidates for positions that require a very specific skillset. 

Coordinating Coordinating is the hidden force which binds all the other functions of management. It unifies, integrates and synchronises the efforts of team members so as to provide unity of action in the pursuit of common goals. The unification, integration and synchronisation of activities, responsibilities and command and control structures ensure that the resources of the company are used most efficiently in the pursuit of the specified objectives. With proper coordination comes harmony.  

Controlling Controlling in business management is a systematic effort that measures and directs the actual performance against the planned goals of the company. It is an important function of management because it is through this function that business owners find that it is needed in all functions of the management. It checks mistakes and tells how new challenges can be met or faced. The success of the company hinges on the effective controlling.

Its three components are:  

• Setting standards • Measuring actual performance; and • Taking corrective action  

Finally, successful business owners need to be both a strong leader and manager to get their team on board to follow them towards their vision of success. 

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