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Many ideas and theories have been published about the functions of management over the past 150 years. Henry Fayol published one of the most famous in 1916.
Henry Fayol wrote a book about the five functions of management: planning, organizing, commanding, coordinating, and controlling. His managerial theory is still studied and taught today and is still considered modern management theory. Over time, others have published their own theories on functions of management which are somewhat similar to Fayol’s, but Fayol’s remain the most widely used functions. Fayol believed that these functions applied to all types of organizations, not just industrial ones, and were essential for effective administration. Understanding these functions helps us see how managers contribute to the success of an organization. Over time, Fayol’s five functions have been condensed to four: planning, organizing, leading, and controlling.
The planning function of management is the process of setting objectives, determining the actions required to achieve those objectives, and outlining how to allocate resources in an organized and efficient manner to accomplish the goals. It involves foreseeing the future needs and conditions of the organization, making decisions about what the organization should do, and deciding the most effective course of action to reach those goals. Many management experts say that without proper planning, an organization could be in chaos.
Managers need to think ahead and decide what needs to be done, how it will be done, and who will do it. A well-developed plan provides a clear direction for the organization, aligning everyone with common goals.
Budgeting is a very important part of the planning function. A healthcare facility develops a budget that allocates funds to various departments (e.g., emergency services, pediatrics, administrative costs, etc.). Planning the budget requires analyzing past financial performance, predicting revenue from patient services, and projecting future costs for things like staff salaries, medical supplies, equipment maintenance, and facility upgrades. Financial planning helps ensure that the organization stays within its budget while delivering high-quality care.
A hospital develops a workforce plan that ensures the right number and mix of healthcare professionals (doctors, nurses, technicians, etc.) are available to meet patient and administrative demand. This may involve hiring additional staff or reassigning existing staff during peak periods (e.g., holidays, flu season). It also includes planning for ongoing training and development and ensuring compliance with staffing regulations and patient safety standards.
Organizing is the process of arranging resources (human, financial, physical, informational, etc.) and tasks in a way that enables an organization to achieve its goals efficiently and effectively. Organizing translates the plans developed in the planning function into real steps. This leads the organization and its activities to making the plans a reality. The organizing function also ensures that each individual or department has clear roles and responsibilities to contribute to the organization’s overall objectives. This process includes assigning specific tasks to employees or teams, setting clear job descriptions, and ensuring there is no confusion in who is responsible for what.
Organizing also involves setting up the systems, policies, and procedures that help ensure smooth operations. These may include workflow processes, communication protocols, or standard operating procedures (SOPs) that guide employees in carrying out their tasks. In a hospital, this might mean organizing the patient intake process, establishing discharge procedures, or setting protocols for emergency response.
IN CONTEXT
A hospital typically organizes its resources by establishing departments such as emergency care, surgery, pediatrics, and cardiology. Each department would have its own team of specialists, nurses, administrative staff, and resources. Organizing ensures each department has the necessary resources (e.g., medical equipment, personnel) to deliver care to patients.
In healthcare, organizing often involves the formation of multidisciplinary teams. For instance, a team for cancer treatment may include oncologists, surgeons, radiologists, nurses, and social workers. These teams are organized to work together, ensuring comprehensive patient care by relying on expertise from different disciplines.
Organizing might also involve developing a system for patient flow. This includes arranging for the timely admission, treatment, and discharge of patients, as well as ensuring that patients move smoothly through different stages of care, such as from the emergency room to intensive care or surgery.
The leading function of management (sometimes called directing) is the process of motivating, guiding, and influencing individuals or teams to work towards achieving the organization’s goals. It involves using interpersonal skills, communication, and leadership to inspire and direct employees to execute tasks effectively and efficiently. A manager should lead by setting a good example and encouraging teamwork. Leading should also include recognizing employees’ achievements and contributions.
In essence, leading is about getting the best out of people by empowering them, creating an environment where they feel motivated to perform, and aligning their efforts with the organization’s objectives. It is not just about giving orders, but also about fostering a positive culture, building trust, and maintaining morale.
IN CONTEXT
A healthcare administrator leads the introduction of an electronic health record (EHR) system in a clinic, guiding staff through the transition, addressing their concerns, providing training, and motivating them to embrace the change.
In another example, a senior healthcare manager mediates a conflict between a nurse and a doctor over patient care procedures, finding a compromise that ensures the best patient outcomes while preserving professional relationships.
The same hospital leader fosters a culture of empathy and patient-centered care by modeling respectful behavior toward patients, advocating for staff well-being, and ensuring that the hospital’s values are reflected in everyday practices.
The controlling function of management is the process of monitoring, evaluating, and ensuring the organization’s goals and objectives are being achieved as planned. It involves measuring performance, comparing actual results against established standards or benchmarks, and taking corrective actions when necessary to ensure that the organization stays on track. Controlling is an ongoing process that ensures the organization remains efficient, responsive to changes, and on track with its strategic goals.
In controlling, this workflow never stops. The idea of continuous improvement is important, and data is continuously analyzed to be sure that the goals, objectives, and performance standards continue to be met.
IN CONTEXT
A hospital monitors key standards of patient care quality, such as infection rates, patient outcomes, or medication errors. If the infection rate exceeds the acceptable limit, the hospital management would analyze the cause through observation and data collection, then implement corrective measures like staff retraining or process changes.
In another example, a hospital might set a target for patient satisfaction scores. For example, they are aiming for 90% of patients to rate their care as “excellent” or “good.” Through surveys or interviews, the hospital measures actual satisfaction. If the score is below target, management analyzes the feedback, identifies areas of improvement (e.g., waiting times, staff communication), and implements changes to enhance patient experience.
The cyclical nature of the functions of management reflects the idea that management is a continuous, dynamic process. It’s not enough for managers to simply plan, organize, lead, and control once and be done. Instead, they must constantly loop back through these functions—adjusting strategies, realigning resources, and refining processes based on performance feedback.
This cyclical approach fosters change, adaptability, and continuous improvement, all of which are essential for navigating the complexities of modern organizations. Whether in healthcare, business, or other sectors, this ongoing cycle ensures that organizations remain responsive to internal needs and external challenges, ultimately driving long-term success.
However, keep in mind that management is not a linear or one-time process.
EXAMPLE
A manager can’t think they are going to plan for a couple of hours, then organize for a couple of hours, then lead, and finish their day controlling. Instead, they typically need to intermix these actions all throughout their day.Each function is interconnected, and after completing one cycle, managers often revisit earlier steps to refine strategies, improve processes, and adapt to changing circumstances. This ongoing feedback loop helps organizations adjust to new challenges or opportunities.
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