Q.(a) Explain any five main functions of management.

(a) Management performs five main functions — Planning, Organising, Staffing, Directing and Controlling — forming a continuous cycle. (b) The LPG reforms opened up the Indian economy, bringing higher growth, foreign investment, competition and consumer choice, but also pressure on small industries and greater inequality.

(a) Five main functions of management

In the Tamil Nadu HSC Class-12 Commerce course, management is defined by the functions managers perform:

• Planning — deciding in advance what is to be done, how, when and by whom. It sets objectives and chooses the best course of action, bridging the gap between where we are and where we want to be.
• Organising — arranging and grouping the work, assigning duties, delegating authority and providing resources so that plans can be carried out; it builds the structure of the organisation.
• Staffing — filling and keeping filled the positions in the organisation through manpower planning, recruitment, selection, training, placement and appraisal (putting the right person in the right job).
• Directing — guiding, leading, supervising and motivating employees to work willingly and effectively towards the goals; it includes leadership, communication and motivation.
• Controlling — measuring actual performance against the plan, finding deviations and taking corrective action so that objectives are achieved. It completes the cycle and feeds back into planning.

These functions are interrelated and continuous.

(b) Impact of LPG on the Indian economy

The 1991 LPG (Liberalisation, Privatisation, Globalisation) reforms deeply affected the Indian economy:

• Higher economic growth — GDP growth accelerated as controls were removed and industry expanded.
• Increased foreign investment — inflow of foreign direct investment (FDI) and technology rose sharply. …