Management Processes

Management processes refer to a series of interconnected and sequential functions or activities that an organization employs to achieve its established objectives. Management, as a universal concept, has a history as old as human civilization and has gradually acquired a scientific character. The French mining engineer and management scholar Henri Fayol was the first to propose the idea of management as a process. This approach recognizes management as a systematic set of activities aimed at solving organizational problems and achieving maximum output through the most efficient use of resources. Management processes provide managers with a framework for determining what to do and how to do it, thereby enhancing the effectiveness of management and helping overcome challenges in achieving organizational goals.

Historical Development and Fundamental Approaches

The systematic conceptualization of management processes emerged in the early 20th century through the efforts of classical management theorists responding to the increasingly complex structure of industrial society. During this period, management was primarily concerned with increasing production efficiency, organizing labor, and making organizational structures more effective. The widespread adoption of bureaucratic structures and the development of the division of labor created a need for managers to define their roles and responsibilities more clearly. Within this framework, the earliest theoretical approaches sought to define managerial activities through specific functional processes.

Over time, the growing influence of the social sciences and the recognition of organizations not merely as production units but as social systems centered on human interaction brought about a transformation in the understanding of management. Different intellectual orientations such as the human relations approach, the behavioral science school, and systems theory led to a more dynamic, interactive, and multidimensional evaluation of management processes. Nevertheless, despite all these developments, the classical classifications of management processes continue to form part of the theoretical foundations of modern management science.

Henri Fayol’s Classification

One of the first to present a systematic theoretical framework for management processes was the French engineer and management scholar Henri Fayol. Fayol divided management into five fundamental functions: planning, organizing, commanding, coordinating, and controlling. This approach is based on the assumption that these principles are universally applicable to all types of organizations. According to him, the effective application of these processes directly influences managers’ levels of success. Fayol’s proposed classification remains widely accepted today as a fundamental reference framework in many management textbooks and educational programs.

• Planning: Planning, which represents the forward-looking dimension of management, involves anticipating the paths needed to achieve specific goals. In this process, objectives are defined, priorities are established, and strategies are developed. Planning enables managers to prepare for uncertainty and allocate resources in the most effective manner.
• Organizing: This is the creation of a systematic structure by bringing together the human and physical resources necessary to achieve organizational objectives. It includes defining tasks, distributing authority and responsibility, and establishing relationships between units.
• Directing (Commanding): Managers must guide personnel to implement planned activities. This function encompasses assigning tasks, providing motivation, and guiding employees to ensure smooth execution. Fayol viewed this process not merely as giving orders but also as demonstrating leadership.
• Coordinating: This is the integration of activities across different organizational units and employees toward common objectives. Coordinating prevents resource overlap, reduces time and energy waste, and enables different units to work synergistically.
• Controlling: This is the process of evaluating how closely organizational activities align with planned objectives. Controlling identifies discrepancies between actual outcomes and planned targets and creates the basis for corrective actions when necessary.

Luther Gulick and the POSDCoRB Formula

Henri Fayol’s framework of managerial functions provided an important foundation for later thinkers. Among them, Luther Gulick particularly drew attention by classifying management processes in a more detailed and functional manner. Gulick developed the POSDCoRB formula, an acronym widely recognized in public administration literature for defining managerial functions. This formula consists of the initial letters of English terms and provides an explanatory structure for managers’ areas of responsibility:

• P – Planning: Establishing the overall framework for activities, methods, and resources required to achieve institutional goals. Planning involves anticipating what will be done, when, how, and by whom.
• O – Organizing: Creating the organizational structure necessary to implement the established plan. Job descriptions are defined, a hierarchy of authority is established, and duties are distributed logically.
• S – Staffing: Includes the selection, recruitment, training, and development of appropriate personnel. This function fundamentally involves aligning the quantity and quality of human resources with management objectives.
• D – Directing: The process by which managers use leadership skills to guide, motivate, and align employees with organizational goals. Effective directing increases organizational commitment and enhances performance.
• Co – Coordinating: Aligning the activities of different units within a common strategy. This process facilitates information flow within the organization and prevents conflicts.
• R – Reporting: The regular exchange of information between managers and employees regarding their work. This information flow can occur through written reports, audit results, or oral briefings.
• B – Budgeting: Encompasses the planning, monitoring, and control of an organization’s financial resources. Budgeting is a critical managerial function in terms of resource allocation, cost control, and financial sustainability.

The POSDCoRB formula has been regarded as an effective model that defines fundamental managerial activities applicable not only to public administration but also to all organizational structures, including the private sector. In this regard, it stands out for addressing managerial functions in a more detailed, measurable, and practical framework.

Widely Accepted Management Processes (Gregg Model)

Theoretical classifications in management provide significant contributions to the systematic understanding of managerial functions for practitioners and researchers. In this context, the model developed by Russel T. Gregg stands out in contemporary management theory for its broad acceptance and compatibility with practical applications. Rather than limiting the management process to classical functions, the Gregg model takes a more comprehensive view by incorporating the real dynamics that managers encounter in institutional environments. The model is structured around seven core management processes, which are viewed as interdependent and interconnected loops.

Decision Making

According to the Gregg model, the decision-making process lies at the center of all managerial functions and serves as the primary determinant of managerial activities. This process is not merely a moment of choice but a holistic sequence of analysis and implementation beginning with problem identification and extending through the evaluation of possible solutions. A typical decision-making process includes defining the problem, gathering necessary information, generating and evaluating alternatives, selecting the most appropriate option, implementing the decision, and reviewing outcomes to analyze its effectiveness. Effective decision making is a key competency that directly influences an organization’s overall performance and strategic direction.

Planning

Planning is one of the most strategic managerial functions oriented toward the future. It requires a mental preparation phase before implementation and aims to determine how an organization’s limited resources should be allocated to achieve defined objectives. An effective planning process reduces uncertainty, focuses employees’ attention on goals, and prevents the waste of time and resources. Planning activities carried out at strategic, tactical, and operational levels facilitate managers’ decision-making processes and ensure institutional sustainability.

Organizing

Organizing, as one of the practical stages of the management process, refers to creating the necessary structure to implement planned objectives. In this process, tasks are identified, similar tasks are grouped into departments, responsibilities and authorities are distributed, required human resources are secured, and working relationships are structured. Organizing plays a critical role in achieving managerial efficiency not only as a structural arrangement but also in terms of coordination, division of labor, and resource allocation.

Communication

The successful execution of managerial activities largely depends on the establishment of an effective communication environment. Communication enables the meaningful sharing of information, ideas, and emotions among individuals. This process consists of the elements of sender, message, channel, receiver, and feedback, and the effectiveness of each component determines overall communication performance. Managers spend a significant portion of their daily activities on communication; therefore, communication skills are one of the foundational pillars of managerial success. Barriers encountered in the communication process—individual, physical, cultural, or structural—can lead to misinterpretation or failure to transmit information.

Coordinating

Division of labor is inevitable in organizational structures, making it necessary for different units to operate in harmony. Coordinating means integrating the activities of various units or individuals toward common objectives. This process enhances inter-unit information flow, prevents conflicts, and contributes to the development of organizational synergy. In the Gregg model, coordinating is not merely a technical organizational task but is regarded as a fundamental condition of managerial effectiveness. It can be applied through vertical (superior-subordinate), horizontal (peer-level), and cross-functional types of coordination.

Influencing

Modern management thinking has moved away from hierarchical command structures toward an approach that emphasizes voluntary employee participation, motivation, and a sense of belonging. The influencing process involves managers using leadership qualities, motivational tools, and communication skills to guide employees toward organizational goals. The aim here is not merely to ensure that individuals perform their duties but to create an environment in which they internalize organizational objectives and willingly contribute effort toward achieving them.

Evaluation (Controlling)

The final process in the Gregg model, evaluation, aims to measure the success of managerial activities and, if necessary, initiate corrective actions. In this process, performance standards are first established, actual performance is measured, and results are compared against predetermined standards. Identified deviations are analyzed to develop corrective or preventive measures. In this sense, evaluation is not merely a control mechanism at the final stage but a managerial function that provides continuous feedback to planning, implementation, and decision-making processes.

Management Processes in Special Fields

General management principles are adapted according to the unique conditions of specific sectors or areas of activity, resulting in variations. This is particularly evident in specialized application areas such as project management and supply chain management. The processes carried out in these fields are shaped to align with both general management principles and the specific requirements of the domain. Both management approaches are supported by comprehensive process groups designed to ensure the systematic and effective administration of complex structures.

Project Management Processes

Project management deals with activities aimed at delivering a unique product, service, or outcome with a defined beginning and end. Successful project management occurs within a systematic framework based on five core process groups.

Initiating: In this phase, the overall framework of the project is established. First, the justification and feasibility of the project are assessed. The project’s objectives, scope, and stakeholders’ expectations are clarified to form the foundation of the process.

Planning: A comprehensive and detailed plan is developed to effectively guide the project. This plan is designed holistically to cover the project’s scope, resource requirements, timeline, budget items, risk management, and communication strategies.

Executing: This phase involves implementing the objectives defined during planning. Project team management is ensured, resources are deployed, and concrete activities are carried out to achieve planned outputs. Teamwork, division of labor, and continuous communication are central to this process.

Monitoring and Controlling: The project’s progress is regularly tracked to assess how closely it aligns with the initial plan. Performance indicators are used to identify deviations, and necessary corrective or preventive actions are taken. This process ensures quality assurance and supports efficient resource utilization.

Closing: When project objectives are achieved or the project is terminated, this phase involves reviewing project outputs, obtaining stakeholder approval, formally concluding contracts, and archiving project documentation into institutional memory. Thus, the project process is completed in a way that contributes to institutional learning and knowledge transfer.

Supply Chain Management Processes

Supply chain management is a comprehensive sequence of processes covering all stages from raw materials to the final consumer. This field includes not only logistical activities but also various functions such as demand forecasting, production planning, inventory management, distribution, and customer service. Its goal is to increase efficiency in product and service flows, reduce costs, improve quality, and enhance customer satisfaction.

Planning: The fundamental strategy of the supply chain is established in this phase. Short-term, medium-term, and long-term plans are developed to achieve supply-demand balance and optimal resource utilization. Demand forecasting, capacity analysis, and cost calculations are considered in this process.

Sales and Order Management: The core activities of this phase include receiving, processing, and directing customer orders to relevant units. The speed and accuracy of these processes are crucial to meeting customer demands effectively.

Production: This involves carrying out production activities to fulfill orders. Operations such as processing raw materials, assembling semi-finished products, and preparing final goods are conducted. The production process is optimized according to principles of quality control and flexibility.

Inventory Control: Effective inventory management is critical to the continuity of the supply chain. Excessive or insufficient inventory levels can increase costs or negatively affect customer satisfaction. Therefore, a flexible and demand-sensitive inventory management approach is adopted.

Shipping and Warehouse Management: Central to this process is storing products under appropriate conditions, preparing them for distribution, and delivering them to the correct destination at the right time. Efficient management of the logistics network ensures timely deliveries and improves customer experience.

The effective implementation of these management processes as a whole enables enterprises to respond rapidly to changing market conditions, gain competitive advantage, and exhibit sustainable growth. At the same time, it promotes rational resource use and fosters a holistic quality mindset in business processes.