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We have already seen that there are several definitions given by experts to explain the meaning and scope of management. One way is to view management as a set of common processes or functions which, when carried out well, lead to organisational efficiency and effectiveness. These processes or functions have been broken down into a set of related elements forming a useful framework. A function is a type of work activity that can be identified and distinguished from other work. Experts have identified several managerial functions as important elements of management. While Newman and Summer have identified four functions namely, organising, planning, leading and controlling, Henri Fayol has recommended five basic functions namely, planning, organising, commanding,coordinating and controlling.Most authors present the following five as the essential functions: planning, organising, staffing, directing and controlling. Luther Gulick and L. Urwick have coined an acronym for seven functions namely POSDCORB which stands for Planning, Organising,Staffing,Directing,Coordinating,Reportingand Budgeting. Some of these functions are presented and discussed here separately. It is important to remember that they are carried out simultaneously and concurrently.The view of this approach is that an organisation is a total system and these functional elements are interrelated and interdependent. The major advantage of separating and discussing these functional elements individually is that this provides a helpful means to examine the various threads that are interwoven into the fabric of what managers actually do.
Consumption Function: A function capturing the dependent relationship between customer spending and income, where changes in customer spending are directly proportional to
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