Business - Management
The Four Major Functions of Business Management
At the turn of the twentieth century, Henri Fayol, a French industrialist, outlined his theory of business management. He proposed that managers focus their responsibilities in the areas of planning, organizing, leading, and controlling.
In planning, goals are defined, strategies are established, and activities coordinated. It is a decisional role that involves entrepreneurial activities, problem solving, negotiating, and techniques in persuasion. The planning stages may be short or long-term, and may be specific in nature, focusing on a single set of tasks, or directional where planning is used to determine goals for the future. Plans can be organized into two areas of thought: strategic and operational. Strategic plans launch overall objectives for the breadth of the organization, and consider the environment in which the organization is situated. In operational planning, individual objectives rather than organizational goals are the...
Planning is essential for outlining the goals and procedures of an organization, but contingency factors and the commitment to change as necessary must also be assumed. The structure of an organization, its life cycle, the environment it is in, and its future commitments can all impact the success of the planning stage.
Another function of business management is the dynamics of organizing where determinations are made about the tasks to be performed, which individuals would be responsible for completing them, how they are to be completed, the organizational structure, and where decision-making would be necessary. A division of labor would be established for departmentalization and for individual specialization. In the line of command, one person would be directed as the superior to maintain unity of perspective, with the authority and power to dictate the line of authority and the responsibilities of each member within the organization. Organizing the role,…
