Management Process Explained
So far, we have learned about the nature, characteristics, scope, objectives, importance, functions and levels of management.
Now comes a very useful question:
When managers actually manage an organisation, what happens step by step?
This is where the management process comes in.
Management is not a single activity.
A manager does not simply wake up in the morning, say “Let’s manage!” and everything magically starts working. 😄
Management is a continuous process in which managers perform different activities to achieve organisational objectives.
In simple language:
The management process is the systematic sequence of activities through which managers plan, organise, staff, direct, coordinate and control resources and activities to achieve organisational objectives.
A simple way to see it is:
Objective → Planning → Organising → Staffing → Directing → Coordination → Controlling → Results → Feedback → New Planning
And then the cycle continues.
What Does “Process” Mean in Management?
The word process simply means a series of connected activities that happen in an organised manner.
For example, making a cup of tea involves several steps:
Boil water → Add tea → Add milk/sugar → Prepare → Serve
You cannot normally serve the tea before making it.
Management is similar, although obviously the organisation’s problems are usually more complicated than deciding whether to add one or two spoons of sugar. 😄
In management, different activities are connected.
Managers:
- decide what they want to achieve,
- make plans,
- arrange resources,
- assign responsibilities,
- select suitable people,
- guide employees,
- coordinate activities,
- monitor performance,
- and make corrections.
Together, these activities form the management process.
Why Is Management Called a Continuous Process?
One of the most important things to understand is that management does not have a permanent “finish” button.
Suppose a business achieves its sales target.
Does management stop?
No.
The manager now has to think:
- Can sales be increased further?
- Are customers satisfied?
- Are costs under control?
- Are employees performing well?
- Is competition changing?
- Should the organisation introduce a new product?
So the process continues.
This is why management is described as a continuous process.
A simple cycle is:
Plan → Organise → Act → Check → Correct → Improve → Plan Again
Step 1: Determine Objectives
Before planning anything, management needs to know:
What are we trying to achieve?
This is the starting point.
Objectives provide direction to the organisation.
Objectives may include:
- increasing sales,
- earning profit,
- reducing costs,
- improving quality,
- increasing customer satisfaction,
- expanding into new markets,
- developing employees,
- launching a new product,
- or improving productivity.
Example
Suppose a clothing company wants to increase annual sales.
Its objective might be:
Increase sales by 15% during the next financial year.
Now the manager has something specific to work toward.
Without an objective, management can become like:
“Everyone, please work hard.”
Everyone asks:
“Toward what?” 😄
Step 2: Planning
Once objectives are established, managers need to determine:
How will we achieve them?
This is planning.
Planning involves deciding:
- what should be done,
- how it should be done,
- when it should be done,
- who should do it,
- what resources are required,
- and what problems may arise.
Example
Suppose the clothing company wants to increase sales by 15%.
Managers may plan:
- new product designs,
- promotional campaigns,
- online sales,
- additional sales staff,
- better customer service,
- new distribution channels,
- and a marketing budget.
Planning converts a goal into a possible course of action.
Planning Is More Than Making a To-Do List
A beginner may think:
Planning = Writing tasks in a notebook.
Not exactly.
A serious management plan also considers:
- priorities,
- resources,
- timing,
- responsibilities,
- risks,
- alternatives,
- and expected results.
For example:
Goal: Increase sales.
Weak plan:
“Sell more.”
Better plan:
“Introduce three new products, strengthen online promotion, train the sales team, target a new customer segment and review sales performance every month.”
The second one provides a clearer direction.
Step 3: Organising
Now imagine the plan is ready.
The next question is:
How should all the work and resources be arranged?
This is organising.
Organising involves arranging:
- tasks,
- people,
- departments,
- authority,
- responsibility,
- equipment,
- money,
- information,
- and other resources.
Example
For our clothing business:
Design Team
→ Creates new designs
Purchase Team
→ Arranges materials
Production Team
→ Produces clothing
Marketing Team
→ Promotes products
Sales Team
→ Sells products
Finance Team
→ Manages financial matters
Now different people know what they are expected to do.
Why Organising Matters
Imagine ten people trying to cook one meal without deciding who will:
- buy ingredients,
- prepare vegetables,
- cook,
- serve,
- clean,
- or pay the bill.
Everyone may be busy.
But the kitchen may look like a management case study. 😄
Organising creates:
- clarity,
- division of work,
- authority,
- responsibility,
- and coordination.
It helps turn the plan into an organisational structure.
Step 4: Staffing
A structure alone is not enough.
Someone has to perform the work.
This brings us to staffing.
Staffing is concerned with obtaining and developing suitable people for different positions.
It can involve:
- manpower planning,
- recruitment,
- selection,
- placement,
- training,
- development,
- performance evaluation,
- promotion,
- transfer,
- and compensation.
Example
The clothing company may need:
- designers,
- production workers,
- salespeople,
- marketing professionals,
- accountants,
- customer service staff,
- and supervisors.
Management needs to ensure that suitable people are available for these roles.
The Basic Staffing Principle
A simple way to remember staffing is:
Right person + Right job + Right time
Suppose a company hires an excellent accountant and asks that person to design clothing.
The employee may be brilliant.
The business decision may still be questionable. 😄
Staffing therefore focuses on matching people, jobs and organisational requirements.
Step 5: Directing
Now we have:
Objectives
Plans
Organisation
People
But there is still a major question:
How will people actually perform the work?
This is where directing comes in.
Directing involves:
- leadership,
- communication,
- motivation,
- supervision,
- guidance,
- and giving instructions where necessary.
Example
Suppose the sales team has been given a target.
The manager may:
- explain the target,
- clarify responsibilities,
- provide training,
- motivate employees,
- solve problems,
- communicate changes,
- and monitor progress.
This helps convert plans into actual human action.
Step 6: Coordination
Now something very important happens.
Different departments begin performing their own work.
But they must work together.
That is where coordination becomes important.
Suppose:
Marketing: “Our new campaign starts Monday.”
Production: “We don’t have enough products.”
Sales: “We already promised customers delivery.”
Finance: “Where did this extra budget come from?”
Everyone is working.
Nobody is necessarily lazy.
Yet the organisation has a problem.
Why?
Lack of coordination.
What Does Coordination Do?
Coordination brings different activities and people together so that they work toward common organisational objectives.
For example:
Marketing plans promotion
↓
Production prepares inventory
↓
Sales handles customer orders
↓
Finance manages the budget
↓
Distribution delivers products
All these activities need to support each other.
Coordination is therefore like the glue of management.
Without glue, the pieces may still be beautiful.
They just won’t form the intended picture. 😄
Step 7: Controlling
Now comes the big management question:
Did we actually achieve what we planned?
This is the function of controlling.
Controlling involves:
- setting performance standards,
- measuring actual performance,
- comparing actual performance with standards,
- identifying deviations,
- taking corrective action.
Example
The clothing company planned:
Monthly sales = ₹20 lakh
Actual sales:
₹16 lakh
The manager now needs to investigate.
Why did the organisation miss the target?
Possible reasons:
- weak marketing,
- poor product availability,
- high prices,
- strong competition,
- low customer demand,
- distribution problems,
- or insufficient sales efforts.
The manager then decides what corrective action is required.
Step 8: Feedback and Corrective Action
Controlling does not mean the process ends after finding a problem.
The next question is:
What should we do about it?
This is where feedback and corrective action become important.
Suppose the manager discovers that sales are low because customers do not like the new product design.
Possible action:
- conduct customer research,
- modify the product,
- change the marketing message,
- improve pricing,
- or introduce another product variation.
The information obtained through controlling becomes useful for future decisions.
That is why management is a learning process.
Step 9: Review and Improvement
Management should not simply ask:
“Did we achieve the target?”
It should also ask:
“What did we learn?”
For example:
- Which strategy worked?
- Which strategy failed?
- Where did we waste resources?
- Which employees need training?
- Which process created delays?
- What did customers appreciate?
- What should be changed next time?
This creates continuous improvement.
An organisation that never learns from its own experience may repeatedly make the same mistakes.
That is an expensive way to become experienced. 😄
Step 10: Start the Cycle Again
After reviewing the results, management begins planning again.
Maybe the original target was:
Increase sales by 15%.
The company achieves it.
Now management may decide:
“Can we increase sales by another 10%?”
Or perhaps market conditions have changed.
Maybe customers now want something different.
Maybe a new competitor has entered the market.
Maybe technology has changed.
Therefore, the organisation begins another cycle.
The Complete Cycle
Objectives
↓
Planning
↓
Organising
↓
Staffing
↓
Directing
↓
Coordination
↓
Controlling
↓
Feedback
↓
Corrective Action
↓
Improvement
↓
New Objectives and Planning
This is the management process in action.
Management Process Is Not a Straight Line
This is a very important point.
Students often imagine:
Planning → Organising → Staffing → Directing → Controlling
as if a manager performs each activity only once.
Real management is more dynamic.
A manager may be:
- planning one project,
- controlling another,
- solving a staffing problem,
- communicating with employees,
- and coordinating departments
all on the same day.
So the management process is better understood as a continuous and interconnected cycle.
Management Process and Decision-Making
Decision-making is present throughout the management process.
Managers make decisions while:
Planning
Which objective should we pursue?
Organising
How should work be divided?
Staffing
Whom should we hire?
Directing
How should employees be guided?
Controlling
What corrective action is required?
Therefore:
Decision-making is not a separate activity that happens only once. It runs through the entire management process.
Management Process and Communication
Communication is another activity that connects the entire process.
Managers need communication for:
- explaining plans,
- assigning responsibilities,
- giving instructions,
- motivating employees,
- receiving feedback,
- solving problems,
- reporting performance,
- and coordinating departments.
Without communication, even a brilliant plan may remain trapped inside someone’s notebook.
And notebooks, unfortunately, do not run businesses. 😄
Management Process and Coordination
Coordination is also present throughout the process.
For example:
Planning requires coordination
because departments may need common objectives.
Organising requires coordination
because responsibilities must fit together.
Staffing requires coordination
because people must be placed where they are needed.
Directing requires coordination
because employees need consistent guidance.
Controlling requires coordination
because performance information must come from different areas.
Thus, coordination is not simply something that happens at the end.
It is present throughout management.
Management Process vs Management Functions
These two concepts are closely related.
Management Functions
They describe the major activities managers perform:
- Planning
- Organising
- Staffing
- Directing
- Controlling
Management Process
It explains how these activities work together continuously to achieve objectives.
So:
Functions are the major activities.
Process is the continuous flow and interaction of those activities.
This distinction is very useful in examinations.
Management Process vs Management Cycle
The terms management process and management cycle are often used to describe closely related ideas.
A cycle emphasises that management does not simply move from beginning to end.
Instead:
Results create feedback
↓
Feedback influences future decisions
↓
Future decisions influence new plans
↓
New plans produce new results
And the process continues.
Therefore, the cycle represents the continuous nature of management.
Why Is the Management Process Important?
Understanding the management process helps an organisation:
- work toward clear objectives,
- use resources effectively,
- divide responsibilities,
- coordinate activities,
- develop employees,
- monitor performance,
- identify problems,
- take corrective action,
- adapt to change,
- and improve continuously.
It provides a structured way of moving from:
“What do we want?”
to
“How will we achieve it?”
and finally:
“Did it work, and what should we improve?”
A Student-Friendly Memory Formula
For quick revision, remember:
O → P → O → S → D → C → F → I
Where:
O = Objectives
P = Planning
O = Organising
S = Staffing
D = Directing
C = Coordination/Controlling
F = Feedback
I = Improvement
You don’t necessarily need to memorise this exact formula for every textbook because textbooks may arrange the functions differently.
The important thing is to understand the logic behind the sequence.
Quick Revision Table
| Stage | Main Question | What Happens? |
|---|---|---|
| Objectives | What do we want? | Goals are established |
| Planning | How will we achieve it? | Future course of action is decided |
| Organising | How should work be arranged? | Resources and responsibilities are arranged |
| Staffing | Who will do the work? | Suitable people are recruited and developed |
| Directing | How will people perform? | Employees are guided and motivated |
| Coordination | Are activities working together? | Different efforts are integrated |
| Controlling | Are we on track? | Performance is measured and compared |
| Feedback | What did we learn? | Information is collected |
| Corrective Action | What should change? | Problems are addressed |
| Improvement | How can we do better? | Processes and plans are improved |
Important Points for Exams
For an exam answer on Management Process, remember:
- Management is a continuous process.
- It begins with identifying or establishing objectives.
- Planning determines how objectives can be achieved.
- Organising arranges resources, responsibilities and authority.
- Staffing ensures suitable people are available for suitable positions.
- Directing guides, motivates and supervises employees.
- Coordination integrates different activities and efforts.
- Controlling measures actual performance against planned standards.
- Feedback helps managers identify problems and opportunities.
- Corrective action helps improve performance.
- The process is interrelated and dynamic.
- Decision-making and communication operate throughout the process.
- Management does not end after achieving one objective; new objectives and plans may follow.
Frequently Asked Questions
What is the management process?
The management process is the continuous series of activities performed by managers to achieve organisational objectives through effective use of people and other resources.
What are the main stages of the management process?
The main stages are commonly explained through:
Planning, Organising, Staffing, Directing and Controlling, supported by coordination, communication, decision-making and feedback.
Why is management called a continuous process?
Because managers continuously:
- plan,
- organise,
- direct,
- monitor,
- evaluate,
- correct,
- and improve activities.
After one objective is achieved, new objectives may arise.
Is controlling the final stage of management?
Controlling is often presented as the final function in the basic sequence, but management does not actually stop there.
Control provides feedback, which can lead to new planning.
Therefore, management works as a continuous cycle.
Is coordination a part of the management process?
Yes.
Coordination is essential because different people, departments and activities must work together toward common objectives.
Why is feedback important?
Feedback tells managers what actually happened.
It helps them understand:
- what worked,
- what failed,
- where deviations occurred,
- and what should be changed.
Without feedback, future planning would be based largely on guesswork.
Final Understanding
The management process is simply the journey from an organisational objective to actual results and then back to improved planning.
Think of it like this:
First decide where you want to go.
Objectives
↓
Then decide how you will get there.
Planning
↓
Arrange the people and resources.
Organising
↓
Put the right people in the right roles.
Staffing
↓
Guide and motivate them.
Directing
↓
Make sure everyone works together.
Coordination
↓
Check what is actually happening.
Controlling
↓
Learn from the results.
Feedback
↓
Correct problems and improve.
New Planning
And the journey starts again.
So, if you remember only one idea from this entire topic, remember this:
Management is not a one-time activity. It is a continuous process of setting objectives, planning, organising resources, working with people, coordinating activities, checking results and improving future action.
In very simple student language:
Think → Plan → Arrange → People → Act → Check → Improve → Repeat
That’s the management process.
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