The 4 Functions of Management
Introduction
The four functions of management are
a critical part in understanding how the process of management works. Planning
is the first step involved in the management process. It is preceded by organization and the final
steps include both leading and controlling. All of these functions are large
part of the operations of the real estate business; and interact on a day-today
basis with larger and smaller companies alike.
Planning
Planning as the first step involves
creating an idea and finding out all of the information so that no stone is
left unturned. Planning in the real estate business is apparent in the
marketing part of the business. This involves creating events to show the
products listed by a broker, and “pressing the flesh”. In real estate sales and
leasing, planning is the difference between success and failure, and involves
creating techniques and working on sales pitches. By planning brokers are able
to anticipate questions potential client may have and even address them before
they arise, leading to satisfied and content customers; It especially helps in
smoothly closing the deal.
Organization
Organization like planning is a
crucial in management, but different from planning because it is taking ideas
and implementing them, allowing for graceful and smooth operations.
Organization gives an edge in what is a very competitive market, making broker
networking easier and sales easier to complete. In the field of commercial real
estate, investors can recognize a broker’s knowledge in the subject; many
brokers have been taken advantage of by well-informed investors, leading to
lost commissions and perturbed clients. Organization also helps with questions
clients may have, makes a broker look more professional; and by organizing
information about particular markets a broker becomes an expert in a certain
market, which protects from potential misrepresentations investors and tenant
make.
Leading
Leading is the part of management
which make both planning and organization possible. It involves looking at the
“big picture”, and making sure the overall direction of the company stays in
line with a mission statement. In real estate, the majority of agents and
brokers are independent contractors, who ultimately answer to themselves. This
is not the case in larger firms where the concept remains in the traditional
style of leadership. Leadership, in this field, involves motivating oneself to
implement plans and organize files to complete a particular mission.
Controlling
Controlling is the final step in the
management process and is the “nuts and bolts” of an operation. It involves mid
level managers giving employees the tools they need to complete the job they
where assigned, and dealing with the day-to day affairs, micromanagement. A
traditional application for larger firms, in contrast controlling in smaller,
boutique, firms controlling remains an individual broker’s decision; The broker
is responsible to control the day-to-day affairs; make sure all of the
necessary material are available; and execute the small tasks, which keep a
company running.
Conclusion
The four functions of management
planning, organization, leadership, and control are necessary for any business
to be successful. Planning and organization provide a look of professionalism
and help a firm to be both proficient and efficient. Leadership and controlling
is the function of taking a plan, implementing, and then managing the moving
parts of the operation. In real estate much like other companies, these
functions are the corner stone of management. They have provided all businesses
with direction and the ability to accomplish all tasks set before them.