POSDCORB BY LUTHER GULICK: 7 IMPORTANT FUNCTIONS OF MANAGEMENT

The term POSDCORB stands for seven management functions, namely: Planning, Organizing, Staffing, Directing, Coordinating, Reporting and Budgeting.

1. Budgeting: This is the process of allocating resources to various activities outlined in the plan of the organization.

Budgeting is the process of creating the financial version of a plan. It involves stating in quantitative terms the resources to be used to carry out the plans of the organization.

Budgeting connects the objectives and policies of ab organization to the means of implementing and achieving these objectives and policies.

ALSO READ: BENEFITS OF BUDGETING TO BUSINESS

2. Coordinating: Luther Gulick defined coordinating as "the all-important duty of interrelating the various parts of the work"

It is the process of synchronizing the activities of various units in the organization toward the organizational objectives.

Coordinating also entails the synchronization of an organization's numerous resources so that they can work in unison to achieve the organization's goals.

3. Organizing: According to Gulick, organizing is "the establishment of a formal structure of authority through which work subdivisions are arranged, defined, and coordinated for a defined objective."

This is the process of matching the organization's financial, technological, human, and physical resources for the implementation of the organization's plans.

Organizing involves establishing the formal structure of authority and responsibility between various units of the organization.

It also involves the division of work among the various units of an organization as well as the arrangement of working units.

The main purpose of organizing is to establish the internal structure of the organization and establish the authority relationship of the organization.

4. Reporting: According to Luther Gulick, "Reporting is keeping those to whom the executive is responsible informed as to what is going on, which thus includes himself and his subordinates informed through records, researched and inspection"

This is the process of keeping top management informed and in control.

Reporting is concerned with the flow of communication between various positions in the organization.

It takes the form of subordinates giving formal and informal reports to supervisors and other interested parties.

Managers/subordinates must report to their superiors for them to know whether or not things are going as planned.

5. Staffing: According to Luther Gulick, "Staffing is the whole personnel function of bringing in and training the staff and maintaining favourable conditions of work".

Staffing may also be defined as the process of bringing in new staff to fill job positions created by the organizational structure of a company

It is an important function of management because all other functions of management will be performed well only if the organization has the right human resources.

Staffing includes everything and anything relating to humans.

It entails employee recruitment, selection, training, development, remuneration, and evaluation.

While the organizing creates and defines each position in the organization, the staffing ensures that all positions in the organization are filled by qualified candidates

READ ALSO: INTERNAL AND EXTERNAL FACTORS AFFECTING STAFFING

6. Planning: According to Gulick, "Planning is working out in broad outline the things that need to be done and the methods for doing them to accomplish the purpose set for the enterprise"

It is the systematic process of identifying the objectives of the organization and listing the actions necessary to achieve them.

Planning entails determining the organization's goals, determining the resources needed to attain those goals, and determining the best plan of action to achieve those goals.

It is deciding in advance, what should be done, how it should be done and when it should be done.

The process of planning is usually done keeping in mind the present realities and the future projections.

7. Directing: Luther Gulick sees directing as “the continuous task of making decisions and embodying them in specific and general orders and instructions and serving as the leader of the enterprise.”

It involves making decisions and delegating orders and instructions for subordinates to execute them.

In essence, directing involves instructing, motivating, communicating, supervising and leading subordinates towards achieving organizational objectives.

To summarize, the full form of POSDCORB is Planning, Organizing, Staffing, Directing, Coordinating, Reporting and Budgeting.

Planning means deciding in advance, what is to be done, how it is to be done and when it is to be done.

Organizing is the systematic process of dividing jobs and resources among the various component of an organisation.

Staffing is the systematic process of recruiting, selecting, orienting, and evaluating workers.

Directing involves instructing and supervising subordinates towards the achievement of organisation goals.

Coordinating is the synchronization of the activities of various units in the organization toward the organizational objectives.

Reporting is simply the process of keeping top executives informed and in control. 

Budgeting is expressing in numerical terms the plans of the organisation.

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