Management Functions

The phenomenon of management has emerged throughout human history as an inevitable consequence of collective living and the pursuit of shared objectives. The need for individuals to act more effectively with limited resources has transformed management into not only a practical endeavor but also a theoretical discipline. This discipline, which became prominent after the Industrial Revolution, took on a systematic character especially during the 20th century. The process of defining the core functions of management was refined through the contributions of pioneering figures in the field, Henri Fayol and Luther Gulick.

Stages of Management

Management evolved historically from the human need for collaborative work and gradually became a systematic discipline. The conceptualization of management functions reached critical milestones through Henri Fayol’s theoretical framework and Luther Gulick’s systematization. In particular, Gulick’s POSDCORB framework (Planning, Organizing, Staffing, Directing, Coordinating, Reporting, Budgeting) has become a fundamental template for analyzing management processes in both public and private sectors.

1. Planning

Planning is the first function of management and involves the predetermined determination of the pathways an organization will follow to achieve its future objectives. According to Fayol, planning is the process of developing forecasts about the future based on data from the past.

Gulick defines planning as the determination of what needs to be done and how it should be done to achieve the organization’s goals.

The fundamental principles of planning include goal orientation, unity, measurability, flexibility, and reliability.

The planning process encompasses the following stages:

2. Organizing

Organizing is the process of dividing tasks, defining authority and responsibility, and establishing a structure in accordance with the set objectives. Fayol views organizing as the arrangement of resources and structures necessary to achieve objectives. For Gulick, organizing integrates with coordination based on division of labor and specialization.

The organizing process consists of three key stages:

Organizing models are primarily implemented in two basic forms: vertical (centralized) and horizontal (decentralized) structures.

3. Staffing

Staffing encompasses the activities of acquiring, selecting, training, and developing the necessary human resources within an organization. It was systematically incorporated into the POSDCORB framework by Gulick. This function aims to place the right person in the right job and enhance organizational efficiency.

Main processes of staffing

4. Directing

Directing is the process of guiding, motivating, and supervising personnel to align their efforts with organizational goals. Fayol referred to this as “commanding.” Directing encompasses leadership, motivation, communication, and decision-making processes.

A manager’s communication skills and leadership style directly affect the success of this function.

5. Coordinating

Coordinating is the process of ensuring that units operating within an organization work in harmony. According to Gulick, coordination is an inevitable outcome of division of labor and can occur in two forms: structural (through organizational design) and conceptual (through shared objectives).

Types of coordination

6. Reporting

Reporting is the process of collecting, evaluating, and presenting information about management activities to upper management or relevant stakeholders. Gulick regarded this function as an indispensable element for controlling and assessing management performance.

7. Budgeting

Budgeting is a management function that involves planning, allocating, and monitoring financial resources in public or private organizations. According to Gulick, budgeting is not merely a tool for financial control but also a component of strategic decision-making.

Budgeting process

The management functions outlined in the POSDCORB model constitute the fundamental building blocks of management, both theoretically and practically. However, these functions are not static. Transformations within public administration paradigms—particularly the shift from the welfare state model to neoliberal policies—have led to significant changes in the content and application of these functions. Organizations are increasingly moving away from mechanistic structures toward more flexible, participatory, and performance-based models. In this context, the dynamic nature of POSDCORB retains its potential to adapt to contemporary management concepts.