Skip to content

Business Laws and Management · Principles of Management and Modern Approaches

Functions of Management: Planning, Organising and Staffing

Updated 11 October 2026 · Fact-checked

Planning decides what to do and how. Organising arranges people, work and authority to carry out the plan. Staffing finds, trains and keeps the right people for the posts created. In CSEET MCQs, identify which function a situation describes, then recall its steps, types or structure.

Understand Functions of Management: Planning, Organising, Staffing

Management is the work of getting things done through people. To do this well, a manager performs a set of functions. The first three are planning, organising and staffing. They come in this order because each one feeds the next.

Planning means deciding in advance what to do, how to do it, when to do it and who will do it. It bridges the gap between where you are and where you want to be. It sets objectives and chooses the path. Plans can be standing (used again and again) or single-use.

Organising turns the plan into a working set-up. You identify the work, divide it into jobs, group jobs into departments, and assign authority and responsibility. The result is an organisation structure. The two classic types are the line organisation (authority flows straight from top to bottom) and line and staff (line managers get specialist advice from staff experts).

Staffing fills the posts created by organising with suitable people. It covers manpower planning, recruitment, selection, placement, training and development, and appraisal. It is about the human resource, not the structure.

A simple memory line: planning is the what, organising is the how arranged, staffing is the who. If a question describes a manager forecasting, setting targets or framing policy, it is planning. If it describes dividing work or defining reporting lines, it is organising. If it describes hiring or training, it is staffing.

Key formulas to remember

Planning process (usual sequence)
Set objectives → Develop premises → Identify alternatives → Evaluate alternatives → Select best alternative → Implement the plan → Follow up
Textbooks vary slightly in wording. Keep the order of ideas: objectives first, follow-up last.
Types of plans
Standing plans: policies, procedures, methods, rules | Single-use plans: programmes, projects, budgets
Standing plans are repeated. Single-use plans are made for one situation. Budgets are commonly placed under single-use plans in ICSI-style notes.
Organising process
Identify work → Divide into jobs → Group into departments → Assign duties → Establish reporting relationships
Authority and responsibility are assigned at the last stages.
Line vs line and staff
Line: direct vertical authority | Line and staff: line authority + specialist advisory staff
Staff officers advise. They do not command line managers.
Staffing process
Manpower planning → Recruitment → Selection → Placement and orientation → Training and development → Performance appraisal
Recruitment attracts candidates. Selection chooses among them.
Delegation vs decentralisation
Delegation: assigning authority to a subordinate for a task | Decentralisation: systematic spreading of decision power throughout the organisation
Delegation is an act of a manager and is necessary. Decentralisation is a policy choice and is optional.

How to solve Functions of Management: Planning, Organising, Staffing questions

Use this method for any MCQ or written question on these three functions.

  1. 1Read the question and mark the key action words, such as forecast, target, group, assign, recruit or train.
  2. 2Decide which function it belongs to: planning, organising or staffing.
  3. 3Identify what is asked: meaning, step, type, structure or a comparison.
  4. 4Recall the matching list from the formulas section, in correct order.
  5. 5For MCQs, remove options that belong to a different function or a wrong stage.
  6. 6For written answers, give a one-line definition, then the list of steps or types with a short note on each.
  7. 7Add one simple Indian business example if marks allow, then check the answer against the question wording.

Quickest way: Function-spotting by keyword

When to use it: Use in the 2-hour OMR paper when you have under a minute per question.

  1. Planning keywords: objective, forecast, policy, budget, programme, future course.
  2. Organising keywords: structure, department, authority, reporting, delegation, span.
  3. Staffing keywords: recruitment, selection, training, appraisal, manpower, placement.
  4. Match the keyword to the function, then pick the option that fits that function only.
  5. For sequence questions, check the first and last stage. Objectives come first in planning. Appraisal comes last in staffing.

Common mistakes in Functions of Management: Planning, Organising, Staffing

  • Treating delegation and decentralisation as the same thing.

    Both involve passing authority downward.

    Fix: Delegation is one manager giving a task and authority to one subordinate. Decentralisation is a policy spreading decision power across the organisation. Delegation is compulsory in any firm. Decentralisation is a choice.

  • Placing recruitment and selection as the same step.

    Both deal with hiring.

    Fix: Recruitment is searching for and attracting candidates. Selection is choosing the suitable ones from them. Recruitment comes first.

  • Saying staff authority in a line and staff structure is command authority.

    Students read 'staff' as 'employees'.

    Fix: Staff here means specialists who advise. Line managers have the authority to command.

  • Starting the planning process with alternatives instead of objectives.

    Students remember the middle steps and forget that goals come first.

    Fix: Always begin with setting objectives, then premises, then alternatives.

  • Placing staffing under organising.

    Both relate to people and posts.

    Fix: Organising designs the structure and the jobs. Staffing fills those jobs with people.

  • Calling a budget a standing plan.

    Budgets are prepared every year, so they seem repeated.

    Fix: A budget is drawn for a specific period and purpose, so treat it as a single-use plan. Policies, procedures and rules are standing plans.

Worked examples

Example 1

Sundaram Textiles in Coimbatore wants to open a new unit. The owner first fixes the target output, then lists the assumptions on demand and cost, then compares three possible locations. Name the function and the steps shown.

Show the solution
  1. The owner is deciding in advance what to achieve and how. This is planning.
  2. Fixing target output is the step of setting objectives.
  3. Listing assumptions on demand and cost is developing planning premises.
  4. Comparing three locations is identifying and evaluating alternatives.
  5. The steps still to come are selecting the best alternative, implementing it and following up.

Answer: The function is planning. The steps shown are setting objectives, developing premises, and identifying and evaluating alternatives.

Example 2

Differentiate delegation from decentralisation in four points.

Show the solution
  1. Meaning: delegation is passing authority from a superior to a subordinate for a specific task. Decentralisation is the systematic spreading of decision-making power across all levels.
  2. Nature: delegation is necessary, since no manager can do everything. Decentralisation is optional and depends on the top management's policy.
  3. Scope: delegation is between two persons and can be limited. Decentralisation covers the whole organisation.
  4. Control: in delegation the manager keeps the right to take back the authority and remains accountable. In decentralisation, authority is a part of the policy and is withdrawn only by changing the policy.

Answer: Delegation is an individual act and is compulsory. Decentralisation is an organisation-wide policy and is a matter of choice. The ultimate accountability of the delegating manager remains in delegation.

Exam tips

  • In OMR questions, spot the function from keywords before reading the options.
  • Learn the planning steps and the staffing steps as ordered lists. Sequence questions are common.
  • Prepare a four-point comparison for delegation and decentralisation, and for recruitment and selection.
  • For a written answer, define first, then list, then explain each item in one line.
  • There is no negative marking in Paper 4, so attempt every question.

Practice questions from Principles of Management and Modern Approaches

Functions of Management: Planning, Organising, Staffing in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Functions of Management: Planning, Organising, Staffing: frequently asked questions

What are the functions of management in CSEET?

The core functions are planning, organising, staffing, directing, coordination and controlling. This page covers the first three. Learn the meaning, steps and types of each.

What is the difference between delegation and decentralisation?

Delegation is a manager giving authority to a subordinate for a task. Decentralisation is a policy of spreading decision power across the organisation. Delegation is necessary. Decentralisation is optional.

What are the types of organisation structure?

The two types to know are line organisation and line and staff organisation. In line, authority flows directly from top to bottom. In line and staff, specialists advise the line managers.

What is the difference between recruitment and selection?

Recruitment is the process of attracting a pool of candidates. Selection is choosing the most suitable ones from that pool. Recruitment comes before selection.