3 Planning Organizing Leading Controlling

The typical day in the life of a manager at any level can be fragmented and hectic.
However, the general conclusion seems to be that the planning-organizingleading-controlling (P-O-L-C) framework functions of management provides a very
useful way of classifying the activities managers engage in as they attempt to
achieve organizational goals.
As a coach you will have to help your client with organizational goals.
Read this selection to understand the dimensions of the planning-organizingleading-controlling (P-O-L-C) framework. And to understand the general inputs
into each P-O-L-C dimension.
Planning, Organizing, Leading, and

Controlling
L EA R N I N G O B J EC T I V ES
1. Know the dimensions of the planning-organizing-leading-controlling (P-O- L-C)
framework.
2. Know the general inputs into each P-O-L-C dimension.
A managers primary challenge is to solve problems creatively. While
drawing from a variety of academic disciplines, and to help managers
respond to the challenge of creative problem solving, principles of
management have long been categorized into the four major functions of
planning, organizing, leading, and controlling (the P-O- L-C framework).
The four functions, summarized in the P-O-L-C figure, are actually highly
integrated when carried out in the day-today realities of running an
organization. Therefore, you should not get caught up in trying to analyze
and understand a complete, clear rationale for categorizing skills and
practices that compose the whole of the P-O-L-C framework.
www.universalcoachinstitute.com 1
It is important to note that this framework is not without criticism.

Specifically, these criticisms stem from the observation that the P-O- L-C
functions might be ideal but that they do not accurately depict the day-today actions of actual managers.
-
H. Mintzberg, The Nature of Managerial Work (New York: Harper & Row, 1973)
D. Lamond, A Matter of Style: Reconciling Henri and Henry, Management Decision 42,
no. 2 (2004): 33056.
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 the
law of the trivial many and important few (i.e., the 80/20 rule).
However, the general conclusion seems to be that the P-O-L-C functions
of management still provide a very useful way of classifying the activities
managers engage in as they attempt to achieve organizational goals.
-
D. Lamond, A Matter of Style: Reconciling Henri and Henry, Management Decision 42, no. 2
(2004): 33056.
Figure 1.7 The P-O-L-C Framework
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.
Planning is a process consisting of several steps. The process begins
with environmental scanning which simply means that planners
must be aware of the critical contingencies facing their organization in
terms of economic conditions, their competitors, and their customers.
Planners must then attempt to forecast future conditions. These
forecasts form the basis for planning.
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.
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. Strategic planning generally includes
the entire organization and includes formulation of objectives. Strategic
planning is often based on the organizations mission, which is its
fundamental reason for existence. An organizations 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)
planning that is 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 level of the organization involves deciding how best to
departmentalize, or 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 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, as you might have done many decades ago if
you worked in company that made and sold jellies and jams? When this
happens, negative outcomes result, 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. http://www.huimfg.com/abouthui-yourteams.aspx
(accessed October 15, 2008).
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, such as, What makes a manager a good leader? and In what
situations are certain leadership styles most appropriate and effective?
Controlling
Controlling involves ensuring that performance does not deviate from
standards. Controlling consists of three steps, which include (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 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.
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 to manipulate the

personalities, values, attitudes, or emotions of their subordinates.
Instead, this function of management concerns the managers 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 an 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
managers 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 faced by managers and the tools used by
managers to perform their roles, managers still perform these essential
functions.
K E Y TA K EAWAY
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.

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The typical day in the life of a manager at any level can be fragmented and hectic.

Planning, Organizing, Leading, and

It is important to note that this framework is not without criticism.

Figure 1.7 The P-O-L-C Framework

fundamental reason for existence. An organizations top management

effectively. There are many different ways to departmentalize, including

The behavioral sciences have made many contributions to understanding

imply that managers should attempt to control or to manipulate the

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