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5 Principles of Great Management
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PublishedDec 8, 2021
Last UpdatedDec 8, 2021

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Bill Davis, MA, CM, core faculty and program chair for the online
degree programs in the Forbes School of Business and Technology® at the
University of Arizona Global Campus, shares his key management principles.
According to Steve Jobs, “Simple can be harder than complex: You have to
work hard to get your thinking clean to make it simple.” By understanding
and learning to apply these universal principles, you are more likely to excel
as a manager in any organization. Read this blog to learn the five principles
of great management.

Principle No. 1: The Functions of Management

While managers often view their work as task or supervisory in orientation,

this view is an illusion.

At the most fundamental level, management is a discipline that consists of a

set of five general functions: planning, organizing, staffing, leading and
controlling. These five functions are part of a body of practices and theories
on how to be a successful manager.

Understanding the functions will help managers focus efforts on activities

that gain results. Summarizing the five functions of great management (ICPM
Management Content):

1. Planning: When you think of planning in a management role, think about it as

the process of choosing appropriate goals and actions to pursue and then
determining what strategies to use, what actions to take, and deciding what
resources are needed to achieve the goals.
2. Organizing: This process of establishing worker relationships allows workers
to work together to achieve their organizational goals.
3. Leading: This function involves articulating a vision, energizing employees,
inspiring and motivating people using vision, influence, persuasion, and
effective communication skills.
4. Staffing: Recruiting and selecting employees for positions within the company
(within teams and departments).
5. Controlling: Evaluate how well you are achieving your goals, improving
performance, taking actions. Put processes in place to help you establish
standards, so you can measure, compare, and make decisions.
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4. Functions of Management

Functions of Management
Management has been described as a social process involving responsibility for economical
and effective planning & regulation of operation of an enterprise in the fulfillment of given
purposes. It is a dynamic process consisting of various elements and activities. These
activities are different from operative functions like marketing, finance, purchase etc. Rather
these activities are common to each and every manger irrespective of his level or status.

Different experts have classified functions of management. According to George & Jerry,
“There are four fundamental functions of management i.e. planning, organizing, actuating
and controlling”.

According to Henry Fayol, “To manage is to forecast and plan, to organize, to command, &
to control”. Whereas Luther Gullick has given a keyword ’POSDCORB’ where P stands for
Planning, O for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for
reporting & B for Budgeting. But the most widely accepted are functions of management
given by KOONTZ and O’DONNEL
i.e. Planning, Organizing, Staffing, Directing and Controlling.

For theoretical purposes, it may be convenient to separate the function of management but
practically these functions are overlapping in nature i.e. they are highly inseparable. Each
function blends into the other & each affects the performance of others.
1. Planning
It is the basic function of management. It deals with chalking out a future course of
action & deciding in advance the most appropriate course of actions for achievement
of pre-determined goals. According to KOONTZ, “Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap from where we are & where
we want to be”. A plan is a future course of actions. It is an exercise in problem
solving & decision making. Planning is determination of courses of action to achieve
desired goals. Thus, planning is a systematic thinking about ways & means for
accomplishment of pre-determined goals. Planning is necessary to ensure proper
utilization of human & non-human resources. It is all pervasive, it is an intellectual
activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc.

2. Organizing
It is the process of bringing together physical, financial and human resources and
developing productive relationship amongst them for achievement of organizational
goals. According to Henry Fayol, “To organize a business is to provide it with
everything useful or its functioning i.e. raw material, tools, capital and personnel’s”.
To organize a business involves determining & providing human and non-human
resources to the organizational structure. Organizing as a process involves:

 Identification of activities.
 Classification of grouping of activities.
 Assignment of duties.
 Delegation of authority and creation of responsibility.
 Coordinating authority and responsibility relationships.
3. Staffing
It is the function of manning the organization structure and keeping it manned.
Staffing has assumed greater importance in the recent years due to advancement of
technology, increase in size of business, complexity of human behavior etc. The main
purpose o staffing is to put right man on right job i.e. square pegs in square holes
 and round pegs in round holes. According to Kootz & O’Donell, “Managerial function
of staffing involves manning the organization structure through proper and effective
selection, appraisal & development of personnel to fill the roles designed un the
structure”. Staffing involves:

 Manpower Planning (estimating man power in terms of searching, choose the

person and giving the right place).
 Recruitment, Selection & Placement.
 Training & Development.
 Remuneration.
 Performance Appraisal.
 Promotions & Transfer.
4. Directing
It is that part of managerial function which actuates the organizational methods to
work efficiently for achievement of organizational purposes. It is considered life-spark
of the enterprise which sets it in motion the action of people because planning,
organizing and staffing are the mere preparations for doing the work. Direction is
that inert-personnel aspect of management which deals directly with influencing,
guiding, supervising, motivating sub-ordinate for the achievement of organizational
goals. Direction has following elements:

 Supervision
 Motivation
 Leadership
 Communication

Supervision- implies overseeing the work of subordinates by their superiors. It is the

act of watching & directing work & workers.

Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal

to work. Positive, negative, monetary, non-monetary incentives may be used for this
purpose.

Leadership- may be defined as a process by which manager guides and influences

the work of subordinates in desired direction.

Communications- is the process of passing information, experience, opinion etc

from one person to another. It is a bridge of understanding.

5. Controlling
It implies measurement of accomplishment against the standards and correction of
deviation if any to ensure achievement of organizational goals. The purpose of
controlling is to ensure that everything occurs in conformities with the standards. An
efficient system of control helps to predict deviations before they actually occur.
According to Theo Haimann, “Controlling is the process of checking whether or not
proper progress is being made towards the objectives and goals and acting if
necessary, to correct any deviation”. According to Koontz & O’Donell “Controlling is
the measurement & correction of performance activities of subordinates in order to
make sure that the enterprise objectives and plans desired to obtain them as being
accomplished”. Therefore controlling has following steps:

a. Establishment of standard performance.

 b. Measurement of actual performance.
c. Comparison of actual performance with the standards and finding out
deviation if any.
d. Corrective action.

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 Authorship/Referencing - About the Author(s)

The article is Written By “Prachi Juneja” and Reviewed

By Management Study Guide Content Team. MSG Content Team comprises
experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO
2001:2015 Certified Education Provider. To Know more, click on About Us. The use of
this material is free for learning and education purpose. Please reference authorship of
content used, including link(s) to ManagementStudyGuide.com and the content page url.

Management Basics

 What is Management ?
 Features of Management
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 Scientific Management - Introduction
 Principles of Scientific Management
 Techniques of Scientific Management
 Criticism of Scientific Management
 Taylor and Fayol
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4. Definition of Coordination

Definition of Coordination
Co-ordination is the unification, integration, synchronization of the efforts of group members
so as to provide unity of action in the pursuit of common goals. It is a hidden force which
binds all the other functions of management. According to Mooney and Reelay, “Co-
ordination is orderly arrangement of group efforts to provide unity of action in the pursuit of
common goals”. According to Charles Worth, “Co-ordination is the integration of several
parts into an orderly hole to achieve the purpose of understanding”.

Management seeks to achieve co-ordination through its basic functions of planning,

organizing, staffing, directing and controlling. That is why, co-ordination is not a separate
function of management because achieving of harmony between individuals efforts towards
achievement of group goals is a key to success of management. Co-ordination is the
essence of management and is implicit and inherent in all functions of management.

A manager can be compared to an orchestra conductor since both of them have to create
rhythm and unity in the activities of group members. Co-ordination is an integral element or
ingredient of all the managerial functions as discussed below: -

a. Co-ordination through Planning - Planning facilitates co-ordination by integrating

the various plans through mutual discussion, exchange of ideas. e.g. - co-ordination
between finance budget and purchases budget.
b. Co-ordination through Organizing - Mooney considers co-ordination as the very
essence of organizing. In fact when a manager groups and assigns various activities
to subordinates, and when he creates department’s co-ordination uppermost in his
mind.
c. Co-ordination through Staffing - A manager should bear in mind that the right no.
of personnel in various positions with right type of education and skills are taken
which will ensure right men on the right job.
d. Co-ordination through Directing - The purpose of giving orders, instructions &
guidance to the subordinates is served only when there is a harmony between
superiors & subordinates.
e. Co-ordination through Controlling - Manager ensures that there should be co-
ordination between actual performance & standard performance to achieve
organizational goals.
From above discussion, we can very much affirm that co-ordination is the very much
essence of management. It is required in each & every function and at each & every stage &
therefore it cannot be separated.

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Similar Articles Under - Management Basics

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 Management and Administration
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Authorship/Referencing - About the Author(s)

The article is Written By “Prachi Juneja” and Reviewed

By Management Study Guide Content Team. MSG Content Team comprises
experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO
2001:2015 Certified Education Provider. To Know more, click on About Us. The use of
this material is free for learning and education purpose. Please reference authorship of
content used, including link(s) to ManagementStudyGuide.com and the content page url.

Management Basics

 What is Management ?
 Management as a Process
 Management as an Activity
 Management as a Discipline
  Management as a Group
 Management as a Science
 Management as an Art
 Management as a Profession
 Features of Management
 Levels of Management
 Objectives of Management
 Importance of Management
 Management and Administration
 Functions of Management
 Co-ordination - Introduction
 Co-ordination and Co-operation
 Management Principles
 Management Principles - Features
 Importance of Management Principles
 How Management Functions are Performed at Coca Cola
 Scientific Management - Introduction
 Principles of Scientific Management
 Techniques of Scientific Management
 Criticism of Scientific Management
 Taylor and Fayol

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