Wednesday, December 25, 2013

Unit 1(P5): Introduction to Management: Process and Functions of Management

What is management process and functions?

There are four basic functions of management which is applicable to all industries. They include: planning, organizing, leading and controlling. Manager in process must first plan, then organize according to plan, lead other to achieve the plan, and finally evaluate the effectiveness and efficientness of the plan and activities undertaken.

•Planning is the primary function where manger creates a detailed action plan aimed at some organizational goal. 
•Organizing is the second step which involves the manager determining how to distribute resources and coordinate them. 
•Leading is the third step that is accomplished by communication, motivating inspiring and encouraging employees towards a higher level of productivity 
•Controlling is the final function of management in which the manager, once a plan has been carried out, evaluates the results against the goals. If a goal is not being met, the manager must also take any necessary corrective action needed to continue to work towards that goal. 
•Some adds staffing as the fifth function which includes tasks like, evaluating, recruiting, selecting, training, and placing appropriate individuals into defined job roles.

Planning:

•It is the foundation pillar of management. It is the base upon which the all other areas of management are built. Planning requires administration to assess where the company presently is and where it would be in the upcoming years. From there, an appropriate course of action is determined and implemented to attain the company's goals and objectives.
•Planning plays a pivotal role in business management; it helps to visualize the future problems and keeps management ready with possible solutions.
•According to KOONTZ, “Planning is deciding in advance - what to do, when to do & how to do. It bridges the gap from where we are & where we want to be”.
•It is an exercise in problem solving & decision making determination to achieve desired goals.
•Planning is necessary to ensure proper utilization of human & non-human resources, it is all pervasive, an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastage etc.
•This step involves mapping out exactly how to achieve a particular goal. 
•Planning involves taking decisions on vision, mission, values, objectives, strategies and policies of an organization.
•Planning is done for immediate, short term, medium term and long term periods, it is a guideline for execution/implementation.
•It is a measure to check the effectiveness and efficiency of an organization.

Organizing:

•The second of the managerial functions is organizing. This step requires determine how to distribute resources and organize employees according to the plan. 
•The second function of the management is getting prepared and getting organized. Management must organize all its resources beforehand, to put into practice, the course of action, which has been decided upon in the base function of planning.
•It is the process of bringing together physical, financial and human resources and developing productive relationship among them for achievement of organizational goals. 
•According to Henry Fayol, “To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnel’s”. To organize a business involves determining & providing human and non-human resources to the organizational structure. 
•Organizing as a process involves: Identification of activities, Classification of grouping of activities, Assignment of duties, Delegation of authority and creation of responsibility, Coordinating authority and responsibility relationships, Designing organization structures and departmentation, Defining relationships between departments and job positions

Leading:

•Directing or leading is the third function of management. Working under this function helps the management in controlling and supervising the actions of staff. This helps them in assisting the staff, to achieve the company's goals and also accomplish their personal or career goals, which can be powered by motivation, communication, department dynamics, and department leadership.
•This step involves communicating, motivating, inspiring, and encouraging employees towards a higher level of productivity. An employee will follow the directions of a manager because they have to, but an employee will voluntarily follow the directions of a leader because they believe in who he or she is as a person, what he or she stands for, and for the manner in which they are inspired by the leader.
•Leading: Attracting people to the organization, Specifying job responsibilities, grouping jobs into work units, Marshalling and allocation of resources, creating good working conditions
•It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. 
•It is considered life-spark of the enterprise which sets it in motion the action of people because planning, organizing and staffing are the mere preparations for doing the work. Leading is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals. 
•A manager needs to do more than just plan, organize, and staff her team to achieve a goal. She must also lead. Leading involves motivating, communicating, guiding, and encouraging. It requires the manager to coach, assist, and problem solve with employees.

Controlling:

•It implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals. The purpose of controlling is to ensure that everything occurs in conformity with the standards. An efficient system of control helps to predict deviations before they actually occur.
•Theo Haimann, “Controlling is the process of checking whether or not proper progress is being made towards the objectives and goals and acting if necessary, to correct any deviation”. 
•According to Koontz & O’Donell “Controlling is the measurement & correction of performance activities of subordinates in order to make sure that the enterprise objectives and plans desired to obtain them as being accomplished”. 
•Therefore controlling has following steps: Establishment of standard performance, Measurement of actual performance, Comparison of actual performance with the standards and finding out deviation if any, Corrective action.
•Controlling is the last of the four functions of management. It involves establishing performance standards based on the company's objectives, and evaluating and reporting actual job performance. Once management has done both of these things, it should compare the two to determine any necessary corrective or preventive action.


                       Effective and efficient management leads to success, which is the attainment of objectives and goals that an organization sets for it. Of course, for achieving the ultimate goal, management needs to work creatively in problem solving and execute all the four functions. Management not only has to see goals accomplished, but also sees to it that the strategy adopted is feasible for the company.


Although there is a basic logic for describing these activities in this sequence (as indicated by the solid arrows), most managers engage in more than one activity at a time and often move back and forth between the activities in unpredictable ways (as shown by the dotted arrow), the true reality of management. The similarities that pervade most settings are the phases in the management process. the differences include the emphasis, sequencing, and implication of each phase.

21 comments:

  1. This comment has been removed by the author.

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  2. Within every business structure are managers. No matter the type of business, a manager’s job is essentially the same across the board but there are four functions of management to consider regardless of the leadership style.

    In short, those four functions are to plan and implement plans to achieve the organization’s goals, to organize those plans while directing employees in their own roles and ultimately controlling the plan to function as an effective manager.

    Planning: The manager’s main duty is to determine what the organization’s goals are and what actions to take in order to achieve those goals. Think of it like a football coach creating a playbook to help his team reach the Super Bowl (or something like that). A manager is responsible for creating a ‘game plan’ to reach a specific goal. For example: A weekly plan may include meetings, creating employee schedules or receiving a report that details statistics. These are all actions that a manager plans to implement on a weekly basis.

    Organizing: Whether it is the employees or resources, the manager is responsible for organizing the daily functions of it all. What shifts are needed? How many employees per shift? Are the employees reaching their set goals? If not, why? These are only a few of the questions asked in the organization process of the management functions. This process can also be considered the backbone of all the management functions due to the fact that this step is more direct. In other words, this is the process employees actually see and are affected by. If a manager is disorganized there is a ripple effect. Employees will lose respect for management; making the next function of management harder to achieve.

    Directing: Company objectives cannot be achieved if the manager doesn’t provide direction; however, if you haven’t planned or organized you will not succeed with this function. Direction and motivation are the key factors in directing. A clear plan that is organized and dispersed to employees is what employees are seeking. A manager will find themselves to be an effective leader if their workers understand what is required of them and why.

    Controlling: The controlling function of management, in large part, is about monitoring the organization’s performance to ensure the ultimate goals are being met and correcting any areas of the process that are restricting the outcome desired. Praise and recognition are controlled at this level. Since the final data is gathered here the manager generally knows who is and who isn’t excelling in their role of the processes. You will ensure continued success if you acknowledge those that are exceeding expectations while at the same time affecting another to strive for the same recognition. It is a win-win for everyone.

    While there are many other functions to effective management; planning, organizing, directing and controlling are the four main functions of management that should be considered the most important. Learning how to balance each of the four functions simultaneously will lead to effective management.

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  3. I have gone through the henry foyal's theory for functions of management and it goes this way:
    POSDCORB.
    Planning, Organizing, Staffing, Directing, Coordinating, Reporting and Budgeting.
    I think this is the extended form of the above one.

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  4. management process is all about planning and decision making, organizing, controlling and leading but it does not functions only in this order it can be start from any where according to the condition of organization.

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  5. Every organization has a common thing, their functioning procedures i.e. way the operate.
    The main functions of any organization are:
    1. Planning and decision making.
    2. Organizing
    3. Leading
    4. Controlling.
    Another thing that is common with any type organizations is that they have goals to reach and objectives that they need to fulfill. Without this there is no meaning for the existence of the organization. The common goal is to give service to the customers effectively and Efficiently.

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  6. Management involves for basic activities-planning and decision making,organizing,leading,and controlling. Although there is a basic logic for describing these activities in this sequence (as indicated by the solid arrows), most managers engage in more than one activity at a time and often move back and forth between the activities in unpredictable ways.

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  7. The 4 basic processes and functions of management are as follows;

    1.Planning
    Planning involves deciding where to take a company and selecting steps to get there. It first requires managers to be aware of challenges facing their businesses, and it then it requires managers to forecast future business and economic conditions. They then formulate objectives to reach by certain deadlines and decide on steps to reach them. They re-evaluate their plans as conditions change and make adjustments as necessary. Planning helps allocate resources and reduce waste as well.

    2.Organizing
    Managers organize by bringing together physical, human and financial resources to achieve objectives. They identify activities to be accomplished, classify activities, assign activities to groups or individuals, create responsibility and delegate authority. They then coordinate the relationships of responsibility and authority.

    3.Leading
    Leading requires managers to motivate employees to achieve business objectives and goals. It requires the use of authority to achieve those ends as well as the ability to communicate effectively. Effective leaders are students of human personalities, motivation and communication. They can influence their personnel to view situations from their perspectives. Leading also involves supervision of employees and their work.

    4.Controlling
    Controlling is an important function of management. It is necessary in the case of individuals and departments so as to avoid wrong actions and activities. Controlling involves three broad aspects: (a) establishing standards of performance, (b) measuring work in progress and interpreting results achieved, and (c) taking corrective actions, if required. Business plans do not give positive results automatically. Managers have to exercise effective control in order to bring success to a business plan. Control is closely linked with other managerial functions. It is rightly treated as the soul of management process. It is true that without planning there will be nothing to control It is equally true that without control planning will be only an academic exercise Controlling is a continuous activity of a supervisory nature.

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  8. There are four funtions of the management which are broadly classified as as planning,organizing ,leading and controlling. Though the functions are common to all the organization,they perform it differently and in different sequence.Regardless of the order in which they perform, the fact is that tha managers do plan,organize,lead and control as they manage.The four functions are given below in brief:

    -Planning: Planning is the most important function of management which determines the mission ,goals and targets.Planning formulates the organization's future coarse of action.And the basic purpose of planning is to make best use of organization's resources to attain the goals.

    -Organizing:Organization involves execution of activities, allocation of resources, and processing information.It also utilizes all the human ,physical and financial resources of organization.

    -Leading:The third function of management is leading which is done by the manager by making the employees participate actively and by communicating,by supervising,by resolving conflicts, by motivating, by directing them to achieve organizations goals.

    -Controlling:This function is about checking whether every activity performed are working accordingly or not and also monitoring them.This finction allows manager to evaluate how well they themselves are performing the planning, organizing, and leading the functions, and to take corrective actions.

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  9. The four functions that form the foundation of a good organization include planning, organizing, leading and controlling. Before these functions were condensed, staffing was also an important function. All these functions have been explained here.

    To Plan
    Planning is the most basic and important function of management. Determining the goals of an organization and planning an effective way to achieve them is essential on part of a manager. A logical thought process is one of the important management skills that is required in order to plan well. This element of planning may include the basic business model that includes the financial aspect, marketing plans, advertising plans, sales plans, and the vision and mission statement of the organization. All these and more (such as an employee recruitment plan) will be required for an organization to function in a structured manner. Planning is required throughout, and not just at the start of an organization. Strategic planning, along with some kind of preparation for unforeseen events and situations are all included in the planning process.

    To Organize
    Organization of resources and the people that make up the organization is another important management function. This aspect of business process management includes mainly organizing employee roles to ensure that they provide their best to the job. For instance, if a particular business organization requires employees to work in shifts, then taking care of this by assigning each employee to convenient shifts is one of the important functions of management. Working in an organized environment with access to necessary resources is expected, and this expectation is fulfilled by the management. Not only employees, the resources that go into ensuring an organized work environment in the daily setting is also an important function.

    To Recruit (Staffing)
    Recruiting or staffing is one of the prime functions of human resource management. Not only does this department in an organization shortlist the right people for the right job, it also plays a function in training the employees to the job requirements, gaging employee performance, ensuring their appropriate function in the organization, determining a suitable compensation for their services, and addressing their grievances. The basic principle here is that if employees are kept happy, the productivity in the workplace will increase.

    To Lead or Direct
    Not every manager is a leader, though this is what is required in an ideal situation. A manager's job does not only include employee management. A manager is also required to inspire them to work better for their personal gain, as well as the gain of the organization. Good leadership is a very essential component of management. A leader that employees can look up to, someone who will guide them, help them cross various hurdles in the job, discipline and control them when required, and enable them to attain their own career goals, is someone who is required in every organization. Thus, creating this powerful combination of leadership and management should be the goal of every organization.

    To Control
    Controlling involves ensuring that all the aforementioned functions are carried out effectively, for the benefit of the organization. Checking that the employee performance is reflecting in the total output, that the overall planning methods are bringing about results, and whether the finances spent are proving useful in the goal achievement of the organization come under this function. This function must be carried out with utmost care as it will determine the future of the business.

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  10. The four basic functions of management are:

    1. Planning: Planning is the predetermination of goals and future course of actions to be taken to achieve defined goals. It is the primary function of management. It focuses on the future course of action. It specifies the objectives to be achieved in future and selects the best alternative course to meet the defined objectives.

    In other words, planning is intellectual process which is concerned with deciding in advance what, when, why, how and who shall do the work. Generally, manager defines goals and takes necessary steps to ensure that goals can be achieved in efficient manner. Planning reflects vision, foresight and wisdom. Thu, it is the blueprint of action and reflection.

    2. Organizing: Organizing is the process of defining and grouping the activities of the enterprise and establishing the authority relationship among them. Through organization, manager beings together manpower and other resources for the achievement of common goal of the enterprise. It is the backbone and foundation of management. It is the formal group of people contributing their efforts towards the achievement of predetermined objectives.

    3. Leading: Leading involves the social and informal sources of influence that we get inspired by the action taken by others. If managers are effective leaders, their subordinates will be enthusiastic about exerting effort to attain organizational objectives. He has to lead his subordinates in such a manner that the organizational and individual objectives can be achieved. Thus, a leader should have complete vision about how to operate resources and achieve organizational objectives.

    4. Controlling: Controlling is the measurement of actual work completed with that of planned work and to take necessary steps if any deviation is there between the actual work and planned work. It is one of the important functions of management. It is known as key to the management for implementation of plan in actual field. The basic part of controlling is to achieve the predetermined goal in defined time and standard. Its motive is to facilitate the most effective and efficient attainment of the organizational objectives. Thus, controlling involves determination of standard of performance, measurement of actual performance, comparison of actual performance with that of the planned performance and takes corrective actions if any deviation is there between actual and standard performance.

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  11. Basic functions of management;

    Planning: Planning is the function of management that involves setting objectives and determining a course of action for achieving those objectives. Planning requires that managers be aware of environmental conditions facing their organization and forecast future conditions. It also requires that managers be good decision makers. Planners must establish objectives, which are statements of what needs to be achieved and when. Planners must then identify alternative courses of action for achieving objectives. After evaluating the various alternatives, planners must make decisions about the best courses of action for achieving objectives. They must then formulate necessary steps and ensure effective implementation of plans. Finally, planners must constantly evaluate the success of their plans and take corrective action when necessary.

    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.

    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.

    Controlling: Controlling involves ensuring that performance does not deviate from standards. Controlling consists of three steps, which include: establishing performance standards, comparing actual performance against standards, and taking corrective action when necessary. Performance standards are often stated in monetary terms such as revenue, costs, or 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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  12. Management process: Those functions which are performed by managers are called management process. The process of management thus refers to a series of inter - related functions.

    1) Planning is the primary function where manger creates a detailed action plan aimed at some organizational goal.

    3) Organizing is the second step which involves the manager determining how to distribute resources and coordinate them.

    2) Leading is the third step that is accomplished by communication, motivating inspiring and encouraging employees towards a higher level of productivity

    4) Controlling is the final function of management in which the manager, once a plan has been carried out, evaluates the results against the goals. If a goal is not being met, the manager must also take any necessary corrective action needed to continue to work towards that goal.

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  13. Functions and process of management:-

    · Planning: outlining philosophy, policy, objectives, and resultant things to be accomplished, and the techniques for accomplishment
    · Organizing: establishing structures and systems through which activities are arranged, defined, and coordinated in terms of some specific objectives

    · Staffing: fulfilling the personnel function, which includes selecting and training staff and maintaining favourable work conditions

    · Directing: making decisions, embodying decisions in instructions, and serving as the leader of the enterprise

    · Coordinating: interrelating the various parts of the work

    · Reporting: keeping those to whom you are responsible, including both staff and public, informed

    · Budgeting: making financial plans, maintaining accounting and management control of revenue, and keeping costs in line with objectives

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  14. PROCESS AND FUNCTION OF MANAGEMENT
    1)PLANNING:planning is deciding in advance what is to be done and intellectual course of action to be taken to achieve predetermind goal in time....
    2)ORGANIZING:organizing is the process of identification of major activities ,grouping them into units ,assignment of work to staff and delegation of authority
    3)STAFFING: staffing is the process of determination of manpower and recuirement ,selection ,appoinment and placement of right employment to the right job...
    4)DIRECTION: direction is a complex function that includes all those activities which are designed to encourage a subordinate to work effectively and efficiently
    a) supervision
    b) motivation
    c) leadership
    d) communication
    e) coordination

    5) CONTROLLING:controlling is the process of comparing actual performanance achived with that of planed performance and taking corrective action if any deviation is there in actual performance so that defined goals can be achiveved in defined time....

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  15. Planning
    The planning function of management controls all the planning that allows the organization to run smoothly. Planning involves defining a goal and determining the most effective course of action needed to reach that goal. Typically, planning involves flexibility, as the planner must coordinate with all levels of management and leadership in the organization. Planning also involves knowledge of the company’s resources and the future objectives of the business.

    Organizing
    The organizing function of leadership controls the overall structure of the company. The organizational structure is the foundation of a company; without this structure, the day-to-day operation of the business becomes difficult and unsuccessful. Organizing involves designating tasks and responsibilities to employees with the specific skill sets needed to complete the tasks. Organizing also involves developing the organizational structure and chain of command within the company.

    Staffing
    The staffing function of management controls all recruitment and personnel needs of the organization. The main purpose of staffing is to hire the right people for the right jobs to achieve the objectives of the organization. Staffing involves more than just recruitment; staffing also encompasses training and development, performance appraisals, promotions and transfers. Without the staffing function, the business would fail because the business would not be properly staffed to meet its goals.

    Coordinating
    The coordinating function of leadership controls all the organizing, planning and staffing activities of the company and ensures all activities function together for the good of the organization. Coordinating typically takes place in meetings and other planning sessions with the department heads of the company to ensure all departments are on the same page in terms of objectives and goals. Coordinating involves communication, supervision and direction by management.

    Controlling
    The controlling function of management is useful for ensuring all other functions of the organization are in place and are operating successfully. Controlling involves establishing performance standards and monitoring the output of employees to ensure each employee’s performance meets those standards. The controlling process often leads to the identification of situations and problems that need to be addressed by creating new performance standards. The level of performance affects the success of all aspects of the organization.

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  16. Planning

    The first component of managing is planning. A manager must determine what the organizations goals are and how to achieve those goals. Much of this information will come directly from the vision and mission statement for the company. Setting objectives for the goal and following up on the execution of the plan are two critical components of the planning function. For example, a manager of a new local restaurant will need to have a marketing plan, a hiring plan and a sales plan.
    Organizing

    Managers are responsible for organization of the company and this includes organizing people and resources. Knowing how many employees are needed for particular shifts can be critical to the success of a company. If those employees do not have the necessary resources to complete their jobs, organization has not occurred. Without an organized workplace, employees will see a manager as unprepared and may lose respect for that particular manager’s supervisory techniques.
    Leading

    Managing and leading are not the same activity. A manager manages employees; this person makes sure that tasks are completed on time and policies are followed. Employees typically follow managers because he or she is the supervisor and in-charge of employees. Employees see a leader as someone that motivates them and guides them to help meet the firm’s goals. In an ideal situation, the manager also serves as the leader. Managers who want to lead effectively need to discover what motivates their employees and inspire them to reach the company objectives.
    Controlling

    The controlling function involves monitoring the firm’s performance to make sure goals are being met. Managers need to pay attention to costs versus performance of the organization. For example, if the company has a goal of increasing sales by 5% over the next two months, the manager may check the progress toward the goal at the end of month one. An effective manager will share this information with his or her employees. This builds trust and a feeling of involvement for the employees.

    Being a manager involves many different tasks. Planning, organizing, leading and controlling are four of the main functions that must be considered in any management position. Management is a balancing act of many different components and a good manager will be able to maintain the balance and keep employees motivated

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  17. Management process is a process of planning and controlling the organizing and leading execution of any type of activity, such as a project or a process.

    Those processes which are performed by managers are called management processes. Managers are commonly involved in planning, organizing, directing, motivating, controlling and decision-making. These processes are also termed as organizational processes because they go beyond an individual manager and affect the entire organization. Teachers have to face-work out endless varieties, disturbances and sometime unpredictability.

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  18. The four basic functions of management are:

    1. Planning: Planning is the predetermination of goals and future course of actions to be taken to achieve defined goals. It is the primary function of management.

    2. Organizing:Managers are responsible for organization of the company and this includes organizing people and resources. Knowing how many employees are needed for particular shifts can be critical to the success of a company.

    3.Leading
    Leading requires managers to motivate employees to achieve business objectives and goals. It requires the use of authority to achieve those ends as well as the ability to communicate effectively. Effective leaders are students of human personalities, motivation and communication.

    4.Controlling
    Controlling is an important function of management. It is necessary in the case of individuals and departments so as to avoid wrong actions and activities. Controlling involves three broad aspects: (a) establishing standards of performance, (b) measuring work in progress and interpreting results achieved, and (c) taking corrective actions, if required.

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  19. The main functions of any organization are:
    1. Planning and decision making.
    2. Organizing
    3. Leading
    4. Controlling.
    5.Motivating
    6.Co-coordinating
    7.Staffing
    8.Communicating

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  20. The management processing and function is all about followings:
    -Planning
    -Organizing
    -Staffing
    -Directing
    -Coordinating
    -Reporting and Finiacing

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