The term functions of management refers to the roles and responsibilities of business managers.
The third perspective on the functions of management is that of Peter F. Drucker who identified the following five management functions such as:
- Setting organizational objectives. Managers establish and communicate clear objectives that translate into measurable targets. This ensures everyone understands the organization’s goals and how their contributions drive progress.
- Organizing tasks and people. Managers design effective systems and organizational structures to ensure different departments collaborate seamlessly towards shared objectives. Tasks are carefully divided into manageable roles and responsibilities for optimized efficiency.
- Communicating and motivating people. Managers build motivated teams by fostering open communication, providing clear expectations, and aligning individual goals with organizational objectives. Engaging with employees and creating a sense of shared purpose is crucial.
- Measuring performance. Managers establish performance metrics aligned with objectives. They track progress, provide feedback, and celebrate achievements, ensuring each individual’s contribution meaningfully impacts the organization’s success.
- Developing people. Managers invest in their people by providing opportunities for growth and development. This could involve delegating responsibilities, offering training, and encouraging skill development, ultimately unlocking the full potential of every individual.
Peter F. Drucker argued that managers should not get too involved in the daily activities of employees because as they have less knowledge in certain areas than their specialized workers. Hence, decentralization and delegation should be encouraged in the workplace.
