NARRATOR: So what does a manager really do? I'm sure you've asked that question before. Scholars and even managers themselves have been debating that question for more than a century.

Henri Fayol, CEO of a large steel company in the 1900s and one of the founders of the field of management, argued that the success of a company depends more on the administrative abilities of its leaders than on technical ability. More than 100 years later, Google came to the same conclusion after a two year study. It found that the most important trait for a manager to have is a clear vision and strategy for the team.

Most textbooks today recommend that managers do this by referring to the four functions of management, planning, organizing, leading, and controlling. Managers use these four functions whether they're the CEOs of large companies, department managers at retail stores, or managers of small restaurants. Studies indicate that managers who perform these management functions well are more successful, more likely to receive promotions, and more likely to generate profits for their companies.

Let's look at each of the four functions of management. Planning is the management function concerned with defining performance goals and plans to attain them. In the planning function, managers ask the question, what do we want to accomplish? Organizing involves assigning tasks, grouping tasks into departments, and allocating resources. In other words, managers ask what resources are needed to get the job done?

Leading means using influence to motivate employees to achieve the organization's goals. Managers ask, how will we motivate and inspire our employees? Controlling is concerned with monitoring employees' activities, keeping the organization on track to meet its goals, and making adjustments as necessary. Managers ask, how are we performing against our goals?

The evidence is clear. Managers serve their companies well when they plan, organize, lead, and control.