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Planning, Organizing, Leading, and Controlling

Introduction

A manager's primary challenge is to solve problems creatively. While drawing from a variety of academic

disciplines, principles of management have long been categorized into the four major functions of planning,

organizing, leading, and controlling (the P-O-L-C framework). These four functions are highly integrated

when carried out in the day-to-day realities of running an organization, and there may be overlap and gray

areas in categorization.

It is important to note that this framework is not without criticism. Specifically, criticisms stem from the

observation that the P-O-L-C functions might be ideal, but that they do not accurately depict the day-to-day

actions of actual managers (Mintzberg, 1973; Lamond, 2004). The typical day in the life of a manager at any

level can be fragmented and hectic, with the constant threat of having priorities dictated by floods of trivial

tasks that vie for time with a few essential ones. However, the general conclusion seems to be that the P-O-

L-C functions of management are a useful way of classifying the activities managers engage in as they

attempt to achieve organizational goals (Lamond, 2004).

The P-O-L-C Framework

Planning Organizing Leading Controlling

Vision & mission

Strategizing

Goals & objectives

Organizational design

Culture

Social networks

Leadership

Decision making

Communications

Groups/teams

Motivation

Systems & processes

Strategic human resources

Planning

Planning is the function of management that involves setting objectives and determining a course of action

for achieving those objectives. Planning requires managers to be aware of environmental conditions facing

their organizations and forecast future conditions. It also requires managers to be good decision makers.

Learning Resource

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Planning is a process beginning with environmental scanning, which means that planners must be aware of

the critical contingencies facing their organization in terms of economic conditions, competitors, and

customers. Planners must then attempt to forecast future conditions in order to use these forecasts as the

basis for planning.

Planners establish objectives, which are statements of what needs to be achieved and when. Planners then

identify alternative courses of action for achieving these objectives. After evaluating the options, planners

must make decisions about the best courses of action for achieving objectives. They then formulate

necessary steps and ensure effective implementation of plans. Finally, planners constantly evaluate the

success of their plans and take corrective action when necessary.

There are many different types of plans and planning. Strategic planning involves analyzing competitive

opportunities and threats, as well as the strengths and weaknesses of the organization, and then

determining how to position the organization to compete effectively in their environment. Strategic

planning has a long time frame, often three years or more, and generally includes formulation of objectives

for the entire organization. Strategic planning is often based on the organization's mission, which is its

fundamental reason for existence. An organization's top management most often conducts strategic

planning.

Tactical planning is intermediate-range (one to three years) planning that is designed to develop relatively

concrete and specific means to implement the strategic plan. Middle-level managers often engage in tactical

planning.

Operational planning generally assumes the existence of organization-wide or subunit goals and objectives,

and specifies ways to achieve them. Operational planning is short-range (less than a year) and designed to

develop specific action steps that support the strategic and tactical plans.

Organizing

Organizing is the function of management that involves developing an organizational structure and

allocating human resources to ensure the accomplishment of objectives. The structure of the organization is

the framework within which effort is coordinated. The structure is usually represented by an organization

chart, which provides a graphic representation of the chain of command within an organization. Decisions

made about the structure of an organization are generally referred to as organizational design decisions.

Organizing also involves the design of individual jobs within the organization. Decisions must be made

about the duties and responsibilities of individual jobs, as well as the manner in which the duties should be

carried out. Decisions made about the nature of jobs within the organization are generally called job design

decisions.

Organizing at the organizational level involves deciding how best to cluster jobs into departments to

coordinate effort effectively. There are many different ways to departmentalize, including organizing by

function, product, geography, or customer. Many larger organizations use multiple methods of

departmentalization.

Organizing at the level of a particular job involves deciding how best to design individual jobs to most

effectively use human resources. Traditionally, job design was based on principles of division of labor and

specialization, which assumed that the more narrow the job content, the more proficient the individual

performing the job could become. However, experience has shown that it is possible for jobs to become too

narrow and specialized. For example, how would you like to screw lids on jars one day after another—which

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you might have done many decades ago if you worked in company that made and sold jellies and jams?

When this happens, there are negative outcomes including decreased job satisfaction and organizational

commitment, increased absenteeism, and turnover.

Recently, many organizations have attempted to strike a balance between the need for worker specialization

and the need for workers to have jobs that entail variety and autonomy. Many jobs are now designed based

on such principles as empowerment, job enrichment, and teamwork. For example, HUI Manufacturing, a

custom sheet metal fabricator, has done away with traditional departments to focus on listening and

responding to customer needs. From company-wide meetings to team huddles, HUI employees know and

understand their customers and how HUI might service them best (HUI Manufacturing).

Leading

Leading involves the social and informal sources of influence that you use to inspire action taken by others.

If managers are effective leaders, their subordinates will be enthusiastic about exerting effort to attain

organizational objectives.

The behavioral sciences have made many contributions to understanding this function of management.

Personality research and studies of job attitudes provide important information as to how managers can

most effectively lead subordinates. For example, this research tells us that to become effective at leading,

managers must first understand their subordinates' personalities, values, attitudes, and emotions.

Studies of motivation and motivation theory provide important information about the ways in which

workers can be energized to put forth productive effort. Studies of communication provide direction as to

how managers can effectively and persuasively communicate. Studies of leadership and leadership style

provide information regarding questions, like "What makes a manager a good leader?" and "In what

situations are certain leadership styles most appropriate and effective?"

Quality control ensures that the

organization delivers on its promises.

Source: International Maize and Wheat Improvement Center, Flickr.

Controlling

Controlling involves ensuring that performance does not deviate from standards. Controlling consists of

three steps: (1) establishing performance standards, (2) comparing actual performance against standards,

and (3) taking corrective action when necessary. Performance standards are often stated in monetary terms

(e.g., revenue, costs, profits) but may also be stated in other terms, such as units produced, number of

defective products, or levels of quality or customer service.

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The measurement of performance can be done in several ways depending on the performance standards,

including financial statements, sales reports, production results, customer satisfaction, and formal

performance appraisals. Managers at all levels engage in the managerial function of controlling to some

degree.

The managerial function of controlling should not be confused with control in the behavioral or

manipulative sense. This function does not imply that managers should attempt to control or manipulate the

personalities, values, attitudes, or emotions of their subordinates. Instead, this function of management

concerns the manager's role in taking necessary actions to ensure that the work-related activities of

subordinates are consistent with and contributing toward the accomplishment of organizational and

departmental objectives.

Effective controlling requires the existence of plans, since planning provides the necessary performance

standards or objectives. Controlling also requires a clear understanding of where responsibility for

deviations from standards lies. Two traditional control techniques are budget and performance audits. An

audit involves examination and verification of records and supporting documents. A budget audit provides

information about where the organization is with respect to what was planned or budgeted for, whereas a

performance audit might try to determine whether the figures reported are a reflection of actual

performance. Although controlling is often thought of in terms of financial criteria, managers must also

control production and operations processes, procedures for delivery of services, compliance with company

policies, and many other activities within the organization.

The management functions of planning, organizing, leading, and controlling are widely considered to be the

best means of describing the manager's job, as well as the best way to classify accumulated knowledge

about the study of management. Although there have been tremendous changes in the environment

managers face and the tools they use, managers still perform these essential functions.

The principles of management can be distilled down to four critical functions. These functions

are planning, organizing, leading, and controlling. This P-O-L-C framework provides useful

guidance into what the ideal job of a manager should look like.

References

HUI Manufacturing. (n.d.). Retrieved from https://www.huimfg.com/

Lamond, D. (2004). A matter of style: Reconciling Henri and Henry. Management Decision, 42(2), 330–356.

doi:10.1108/00251740410513845

Mintzberg, H. (1973). The nature of managerial work. New York: Harper & Row.

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Key Points

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