Four Management Functions
Managers perform four interconnected functions. These aren't sequential—they cycle continuously.
| Function | Core Question | Output |
|---|---|---|
| Planning | What should we do? | Budgets, goals, strategies |
| Directing and Motivating | How do we get people to do it? | Assignments, communication, resolution |
| Controlling | Did it work? | Performance reports, feedback loops |
| Decision Making | What choice do we make? | Runs through all functions |
The Cycle
Planning → Directing → Controlling → (feedback informs next) Planning
Decision making is the thread through all three—every stage involves choices.
Common Trap
Confusing planning with decision making. Planning is about setting direction and budgets. Decision making is the discrete choice mechanism that operates within planning (and all other functions).
North: Where this comes from
- Management Theory (classical management principles)
- Managerial Accounting (provides data for all four functions)
East: What opposes this?
- Reactive Management (no planning, just firefighting)
- Intuition-Based Management (decisions without data)
South: Where this leads
- Performance Reports (output of controlling)
- Budgets (output of planning)
West: What's similar?
- PDCA Cycle (Plan-Do-Check-Act—same logic)
- OODA Loop (Observe-Orient-Decide-Act)