The Short Answer

What Are the Four Functions of Management?

The four functions of management are planning, organizing, leading, and controlling. They are adapted from the work of French engineer Henri Fayol in the early twentieth century and still describe most of what a manager does.

Studying Management or Running a Team?

Featured · Free Small Business Education Free guides on management, money, operations, marketing, sales, and strategy. Start learning → Consulting Business Consulting Help putting all four functions to work in your own business. See consulting → Plans Business Plan Writing A management section that shows lenders who plans, leads, and checks results. See plans and prices → Do It Yourself Business Plan Templates Industry templates with a Word plan and an Excel financial model. Browse templates →

In Plain English

Decide, Set It Up, Get Moving, Check

Decide what to do. Set it up. Get people moving. Check that it worked.

That is the whole job of management in four steps, whether the team is three people or thirty.

A Real-World Example

The Gym Owner Who Used All Four

Illustrative example

The owner of a gym in Tallahassee, Florida plans a new evening class, organizes a trainer and a room, leads the launch, and checks attendance after a month.

Attendance is low at 7 p.m., so she moves the class to 6 p.m., and sign-ups pick up. That is all four functions in one small project.

From Dr. Paul’s Fabled Forest

Four Words on Doctor Owl’s Desk

Doctor Owl was sorting scrolls at home in the Lone Oak when a business student from the Willow Grove knocked on the door with a question. “What does a manager actually do?”

Doctor Owl pulled his mug-stained desk scroll closer and wrote four words. Plan. Organize. Lead. Control.

“Decide what to do,” he said, tapping each word. “Set it up. Get everyone moving. Then check that it worked.”

Mrs. Owl-Willow, passing with a tray of tea, leaned over and added a note in the margin: and care about the creatures doing it.

“The secret,” Doctor Owl added, “is to control only the controllable.” Nobody laughed. He sipped his tea. “Who… whoo… whooo.”

This story is one of dozens told across Dr. Paul’s Fabled Forest Business School Series. You just read one from Book 1.

Dr. Paul’s Insight

Dr. Paul teaches this to students and owners the same way: if one of the four is missing, the other three start to wobble.

Put It to Work

The Four Functions in One Project

FunctionWhat it meansGym example
PlanDecide what to do and whyAdd an evening class to grow memberships
OrganizeSet up people and resourcesAssign a trainer, book the room, set the schedule
LeadGet people movingLaunch the class, encourage the trainer, tell members
ControlCheck results and adjustAttendance is low at 7 p.m., so move it to 6 p.m.

Watch Out

Pitfalls When Applying the Four Functions

Watch OutPlanning without controlling

If you never check results, you will not know whether the plan worked.

Watch OutLeading without organizing

Energy without the right people and tools usually fizzles.

Watch OutTreating control as micromanaging

Control means checking results, not hovering over every task.

Watch OutOnly doing the work

Owners who do the work but none of the four are working in the business, not on it.

Why It Matters

Benefits of Using the Four Functions

  • A simple checklist for any project
  • Clear language for students
  • Shows which function you skip
  • Better balance between doing and managing

In Your Business Plan

How the Four Functions Show Up in a Business Plan

A management section that covers all four functions shows a lender the owner has a way to set goals, run the team, and catch problems early.

Sample plan excerpt: Management Section

“The owner plans quarterly goals, organizes staff and schedules to meet them, leads weekly team meetings, and reviews results monthly against the projections.”

Keep Learning

Related Lessons

IntroductionThe Four Jobs of Management GlossarySmall Business Management Glossary GuideWhat Does a Manager Do? TermWhat Is an Operating Plan? TermProactive vs. Reactive Management TermWhat Is Span of Control?

FAQ

Questions About the Four Functions of Management

Who created the four functions of management?
They grew out of the work of Henri Fayol, a French mining engineer and executive. In 1916 he described five elements of management: planning, organizing, commanding, coordinating, and controlling. Later textbooks condensed these into the four functions most people learn today.
Which function of management is most important?
None works well alone. Planning usually comes first because the others need a goal, but a plan that is never organized, led, or checked rarely gets results. Most problems show up where one function is being skipped.
Are the four functions still used today?
Yes. They are still taught in most introductory management courses and textbooks, and they apply to small teams as well as large companies. Many owners use them as a quick checklist for any new project.

More From the Series

Keep Building Your Business

Every book in Dr. Paul’s Fabled Forest Business School Series teaches one subject through short stories, real terms, and one-page worksheets.

Accounting and Finance for Small Businesses book coverBook 2Accounting and Finance for Small BusinessesGet it on Amazon → Operations for Small Businesses book coverBook 3Operations for Small BusinessesGet it on Amazon → Strategy for Small Businesses book coverBook 6Strategy for Small BusinessesGet it on Amazon →

Dr. Paul Borosky, DBA, MBA

Dr. Paul is a business consultant and author with 14+ years of experience and 1,000+ written business plans. He works with owner-run small businesses on plans, financial projections, and the systems that let a business run without the owner doing everything. This page is part of the glossary for Management and Leadership for Small Businesses, Book 1 of Dr. Paul’s Fabled Forest Business School Series.

This page is for general educational purposes only. It is not legal or other professional advice. For decisions about your own business, consult a qualified professional.