Kiến thức quản trị
Home Products news 4 management functions in an enterprise and the role of each function
1C Việt Nam
(22.08.2024)

4 management functions in an enterprise and the role of each function

In today's complex and competitive business environment, management is a key factor to ensure the success and development of a business. In this article, let's learn about 4 management functions for businesses with 1C Vietnam!

1. What is the function of administration?

Management is the process of operating and organizing activities in an enterprise to achieve business goals. The function of management is a collection of separate activities of management to effectively run the organization to achieve goals and desired results. Accordingly, management is divided into four main functions: planning, organizing, commanding and controlling.

The four functions of management include planning, organizing, commanding and controlling
The four functions of management include planning, organizing, commanding and controlling

2. 4 administrative functions in an enterprise

As mentioned above, management includes four main functions: planning, organizing, commanding and controlling. The detailed content of each function is presented specifically as follows:

2.1 Planning function

The first of the four management functions is planning. This function refers to the need for administrators to determine organizational goals, develop strategies and management methods to run business operations. The planning function allows managers to come up with additional strategies and plans to achieve the overall goals of the organization.

The planning function refers to determining goals, strategies and management methods
The planning function refers to determining goals, strategies and management methods

The planning function refers to determining goals, strategies and management methods

The planning function has the following main roles:

  • Evaluate the current organizational situation and available resources including human resources, budget and material resources.
  • Determine the long-term goals of the organization such as increasing profits, increasing revenue or expanding the number of employees,...
  • Develop strategies and necessary activities to achieve goals in each specific period.
The planning function determines goals, strategies and corporate governance activities
The planning function determines goals, strategies and corporate governance activities

The planning function determines goals, strategies and corporate governance activities

2.2 Organizational functions

The organizing function is related to the need for managers to determine the work to be done, assign responsible people and build a reasonable organizational structure. Among the four management functions , the organizational function plays an important role in ensuring the effectiveness of business operations.

Important elements of organizational functions include:

  • Build internal environment: Create an internal working environment within the company to achieve goals.
  • Building a management model: Establishing an organizational structure and decentralizing authority to departments and individuals in accordance with work tasks.
  • Communicate information, instructions, and orders necessary to perform work and receive feedback.

Organizational functions determine the work to be done and who is responsible

2.3 Control function

The control function includes guiding, leading, and directing employee activities. This function helps employees perform work quickly and effectively, avoiding delays or backlogs. In addition, the control function also has the role of stimulating, motivating, and coordinating personnel to achieve planned goals and solve problems.

For example, when a business aims to launch a new product (planning) and has arranged work for departments (marketing, sales, customer care...), the control function will ensure Take on the role of command and coordination of personnel to achieve efficiency. The goal is to bring products to customers quickly and achieve good sales.

The control function has the role of guiding and coordinating personnel

2.4 Control function

The control function refers to the need for administrators to monitor business activities to collect information about actual results and compare them with set goals, thereby making adjustments if there are deviations. . This ensures that the work is carried out according to plan and with high efficiency.

Control functions can apply different forms depending on job requirements:

  • Anticipatory control: This form refers to making predictions about incidents that may occur in the future and planning in advance to handle them (if any). For example, when launching a new product, businesses predict customer reactions and determine how to handle them accordingly.
  • Simultaneous control: This form is performed during work to help people recognize obstacles and difficulties, thereby making immediate adjustments to avoid errors and effects on the system.
  • Feedback control: This form evaluates the results achieved compared to the initially set goals. From these assessments, businesses can draw lessons and experiences for future activities that can be done better.

Control functions help ensure smoothness and fewer errors in operations. This applies not only to senior managers, but sometimes even lower-level employees need to check and reevaluate their work to avoid errors.

The control function ensures that work is carried out according to plan

Thus, management plays an extremely important role in the survival and development of businesses. Hopefully, sharing about the above 4 management functions will help businesses understand and apply effectively in daily activities. Don't forget to follow other articles on 1C Vietnam's website to update useful information and knowledge about business management and operations!

Deploy a digital transformation solution for your business today