Functions of Management| What are Functions of Management?

functions of management

Functions of Management

There are primarily 4 functions of management.

  1. Planning
  2. Organizing
  3. Directing
  4. Controlling

1) Planning

Planning is a process of thinking before taking action. It involves mapping out exactly how to achieve a specific goal as a manager. He/she will need to map out detailed actions about what to do when to do, and how it should be done.

Planning is the core function of management because it is the foundation of other functions.

#Basis of the planning (योजनाका आधारहरु )

Basis of the planning is determined by the nature of the organization.

For running the company – planning is made by analyzing/observing the past performance (employee performance, profit performance) of the company.

If the company is new – planning is done through benchmarking. Benchmarking means developing a strategy by analyzing other competitive in the market.

If the company is completely new in the market with a new idea – planning is done on the basis of research.

#Governing factors of planning (योजनाका कारक तत्वहरु)

There are two governing factors of planning. They are External Factors (Political, Economical, Socio-cultural, Technological) and Internal Factors (Visio, Mission, Goal, Resource availability).

#Types of Planning (योजनाका किसिमहरु)

On the basis of strategical implementation

  1. Strategical Planning – सबै भन्दा माथिल्लो तहमा बन्ने योजना। यो दिर्गकालिन प्रकृतिको हुन्छ।
  2. Tactical Planning – मध्यम तहमा बन्ने योजना।
  3. Operational Planning – सबै भन्दा तल्लो तहमा बन्ने योजना।  यो अल्पकालीन र day to day operation समाधानको लागि बनाइन्छ।

On the basis of the time range

  1. Long Term Planning
  2. Mid Term Planning
  3. Short Term Planning

On the basis of hierarchy 

  1. Vision
  2. Mission
  3. Goal
  4. Objectives

On the basis of use

  1. Standing
  2. Contingent

But in banking, these planning is called business continuity planning. This is the planning which is made during unexpected situations like a natural disaster, man-made disaster, etc.

On the basis of the level

  1. Business Level Planning
  2. Corporate Level Planning
  3. Departmental Level Planning
  4. Unit Level Planning

Problems in Planning Implementation in Nepali Banking Sector

  • Planning is only showing teeth i.e not properly implemented.
  • Lack of enough resource analysis.
  • Planning vaporization.
  • Copy of planning rather than own strategical genuine plan.
  • No coordination among different level parties for effective implementation of the planning.
  • Lack of communication.
  • Lack of participatory planning.

2) Organizing

Organizing involves managing all the company’s resources to implement a course of action and determining the organizational structure of the group.

  • Organizing is an important function of management.
  • Organizing is structuring.
  • It is an effective distribution of resources like land, labor, capital, and technology.

Determinants of Organizing

Following are the determinants of organizing.

  1. Size of the organization: according to the size of the organization, organizing is done whether it should be tall to flat or flat to tall.
  2. Technology: better the technology, easier will be the task. It helps narrow down the span of control.
  3. Environment: external and internal environment affects overall organizing.
  4. Objectives: objectives of an organization also determines the organizing.
  5. Situation

Other environmental factors

  • Separate control mechanism should be developed in the decentralization.
  • The current structure of the branch should be changed.
  • As the branch is expanded, the MIS based control mechanism should be implemented,
  • The HR department must also be decentralized.

3) Directing

Directing is a mobilization of resources through human resource. So, it is also called resources of resources. Comparing with the human body, directing is like constructive hands, creative eyes, and sensitive heart of the body. It encompasses motivation and communication.

Problems in directing

  • Less participatory
  • Not rational distribution
  • Kitchen cabinet in decision making (Kitchen cabinet – the decision is made by some other parties rather than the decision maker. निर्णयकर्ताले आफैले नभई अदृश्य निर्णयकर्ता ले निर्णय गर्नु )
  • Monetary tool in decision making.
  • No MIS bases directing

4) Controlling

Controlling is end function of management in the management cycle. It is the process of finding out the deviation between the actual performance and predefined target and taking corrective action.

Process of controlling

  1. Set target
  2. Measure the performance
  3. Find out the deviation
  4. Take corrective action


Process of Controlling लाई यसरि देखाउन सकिन्छ।

Types of controlling

Controlling can be categorized on the basis of two variables. On the basis of process and on the basis of dimension. Controlling लाई दुईवटा आधारहरुमा विभाजन गरिन्छ। प्रक्रिया को आधारमा preventive, concurrent, post control गरि तीनवटा किसिमहरुमा बाँड्न सकिन्छ भने आयामको आधारमा controlling लाई तल उल्लिखित किसिमहरुमा बाँड्न सकिन्छ।

On the basis of the process (प्रक्रिया को आधारमा)

  1. Preventive Controlling – also called forward-looking and proactive controlling. It is done on the input side of the organization. i.e preventive controlling is done in order to prevent something to happen.
  2.  Concurrent Controlling – also called gatekeeper or real-time controlling. It is done while work is being done.
  3. Post control – also called reactive of backward looking. This type of control is only for preventing future loss by analyzing the past result.

On the  basis of Dimension (आयाम को आधारमा)

तल उलिखित क्षेत्रहरुमा Controlling Function लागु गर्न सकिन्छ।

  1. Policy Control
  2. Strategical Control
  3. Structure Control
  4. Quality Control
  5. Ethical Control
  6. Special Alert Control
  7. Implementation Control
  8. Moral Control
  9. Cost Control
  10. HR Control


  1. What are the determinants of organizing structure? In the context of the federal structure of the nation, what kinds of organization structure reform is necessary for the public organization of Nepal?

(organizing structure का मुख्य मुख्य कारक तत्वहरु केके हुन्? देश संघीय संरचनामा गैसकेको यो अवस्थामा नेपालको सार्वजनिक संस्थाले कस्तो किसिमको structure reform कार्यन्वयन गर्न आवश्यक छ ?)