Republic of the Philippines

CAMARINES SUR POLYTECHNIC COLLEGE

Nabua, Camarines Sur
Tel. No. 288-44-21-23 loc. 128

OAC 110 PRINCIPLES OF MANAGEMENT

1st Semester S/Y 2023-2024

MODULE 1 – INTRODUCTION TO PRINCIPLES OF MANAGEMENT

Content Summary:

This module discusses the Introduction to Principles of Management where you can
find: Definition of Management, and Business Org. & Management. Objectives and
Importance of Business Org. & Management, Forms of Business Org./Ownership, and
the Functions of Management will also be given emphasis.

Learning Outcomes:

At the end of this module, students should be able to:

1. Apply professionalism in all facets of life
2. Exhibit a thorough comprehension on the importance of Business Organization and
Management, its forms and functions.
3. Describe the functions of management.

Table of Contents:

1. Definition of Management
2. Importance of Business Org. & Management
3. Forms of Business Org./Ownership
4. Functions of Management

DISCUSSION

Principles of Management is designed to meet the scope and sequence

requirements of the introductory course on management. This is a traditional approach
to management using the planning, organizing, staffing, directing and controlling
approach. Management is a broad business discipline, and the Principles of
Management course covers many management areas such as human resource
management, time management and decision making, and leadership and teamwork
as well as managing social responsibility and ethics such as bringing business ethics
and social responsibility into the workplace. It has been said that no one individual can
be an expert in all areas of management.

Management is essential to any organization that wishes to be efficient and

achieve its aims. Without someone in a position of authority there would be
organizational anarchy with no structure and very little, if any focus. Common sense
dictates that without these principles of management being in place an organization
would have trouble achieving its aims, or even coming up with aims in the first place.

I - DEFINITION OF MANAGEMENT
Management comes from Italian word (maneggiare), Which means "to handle tools or
equipment)". Maneggiare derives from the latin words Manus which mean "hand
"and( agere) which is to act"

There are three parts to a definition of management as a process: first the co-ordination
of resources, second the performance of managerial functions as a means of achieving
co-ordination; and the third establishing the objective or purpose of management
process and it must be purposeful managerial activity.
1.The coordination of resources is Resource coordination refers to services that help
people get access to all Medical Assistance services as well as any other necessary
DDA-funded or otherwise funded generic, medical, social, habilitative, vocational,
educational, recreational, financial assistance, counseling, housing, and other services.

2. The performance of managerial functions as a means of achieving co-ordination; is

the setting individual and team goals that are in line with the strategic objectives of the
organization, planning performance to achieve the goals, reviewing and assessing
progress, and enhancing people's knowledge, skills, and abilities are all part of
performance management, a continuous process for enhancing performance.

3. The establishing the objective or purpose of management process and it must be

purposeful managerial activity. Before it can decide the path, it needs to take to attain
it, an organization must first know what its ultimate aim is. More effectiveness and better
resource management will result from laying out a clear course. Employees will also be
more motivated to perform better if they understand why they are doing what they are.

Varoius Meaning of the term Management

1. “Management is the art of getting things done through and with people” ---Mary
Parker

2. “Management is the art of knowing wht you want to do and then seeing that it is done
in the best and cheapest way” --- F.W. Taylor

3. ‘Management is the accomplishment of results through the effort of other people” ---
Lawrence

4. “Management is to forecast and plan, to organize, to command, to coordinate and

contro” --- Henry Fayol

5. “Management is a process involving planning, organizing, staffing, directing and

controlling human efforts to achieve stated objectives in an organization”.

6. “Management is the process of working with and through others to effectively achieve
the goals of the organization, by efficiently using limited resources in the changing
world”.

From the above definitions, the following features are identified:

1. Organized activities

2. Existence of objectives

3. Relationship among resources

4. Working with and through people

5. Decision Making
Organized Activities:

Management is a process of organized activities. Without organized activities,

two groups of people cannot be involved in the performance of activities. Where a group
of people are involved in working towards a common objective, management comes
into existence.

Existence of objectives:

The existence of objectives is a basic criterion of every human organization

because all organizations are deliberate and purposive creation and, therefore, they
should have some objectives. Without objectives, it becomes difficult to define the
direction where organized group of activities would lead to.

Relationship among resources:

Organized activities meant to achieve common goals are brought about to

establish certain relationship about the available resources. Resources include money,
machine, material, men and methods. All these resources are made available to those
who manage the organization. Managers apply knowledge, experience, principles for
getting the desired results. Thus the essence of management is integration of various
organizational resources.

Working with and through people:

Management involves working with people and getting organizational objectives

achieved through them. The idea of working through people is interpreted in terms of
assigning and reassigning of activities to subordinates.

Decision Making:

Management process involves decision making at various level for getting things
done through people. Decision making basically involves selecting the most appropriate
alternative out of the several. If there is only one alternative, there is no question of
decision making.

Management is what managers do. It also refers to people at the top level, in
the organization, concerned with decision-making. In the present context, managing
has become one of the most important areas of human activity because of increasing
role of large and complex organization in the society. Because of their increasing role,
the organization have attracted the attention of both practitioner and academicians to
find out the solutions for business problems.

A ------ The Manager

G ------ Knowledge

M
E ------- The People

T ------- Technology/Techniques/Tactics

MAN refers to the manager who leads the groups and organizations and is
responsible for the performance of other activities. Here AGE does not means
chronological age, it refers to the knowledge to be possessed by a manager to operate
the organization successfully. Knowledge can be secured through experience, study
and exposure.

The word MEN stands for the term people, i.e the team of subordinates working
under the supervision and control of the managers. They achieved the objectives with
the assistance of subordinates. T denotes technology, it means know how. Managers
should also possess skills, techniques and tactics to win the game and to achieve the
objectives.

Segmenting the management of an organization into levels is vital to maintaining

the productivity and work performance of employees. Although when there is a change
in the size of the business or the workforce, there would also be a change in the number
of levels of the management.

II - IMPORTANCE OF BUSINESS ORGANIZATION AND MANAGEMENT

IMPORTANCE OF MANAGEMENT:

1. Aligning Goals - A company consists of employers and several employees who

work together. Everybody has their own goals. Management gives them a common
direction to achieve their goal together.

2. Best Utilization of Resources- The proper utilization of resources is really important

for an organization which operates in a competitive environment. Management helps in
the division of work and prevents the employees from under-performing or getting
overburdened with work.

3. Reduces Costs - It gets maximum results through minimum input by proper planning
and by using minimum input & getting maximum output.

4. Increasing Efficiency- The main aim of the company is to get the most efficient
result i.e., to achieve maximum profit by maximizing the output and minimizing the input.

5.Surviving In A Dynamic Environment- A company operates in a dynamic

environment where a number of external factors like political, social, economic etc.
affect its functioning. This makes it almost obligatory for the company to be flexible and
change its short-term goals and working styles according to the changing environment.

6. Essential For the Welfare of The Society- Good management not only reduces
difficulty of the task but also prevents the wastage of costly and rarely available
resources.

7. Management helps in providing good quality of services and products which

increases the living standard. It also leads to more profit of the organization and thus
providing fair wages and generating more employment opportunities.
IMPORTANCE OF BUSINESS ORGANIZATION

1.Products Growth-All business activities directed towards the production of goods

and services in the betterment of the business organizations.

2.Efficient Use of Resources-Organizations play a vital role in the efficient use of

factors of production and other resources and thus reduced the cost of production of
goods.

3.Technological Improvements-A good organization provides for the optimum use of

technological improvements.

4.Creative Thinking-It stimulates independent creative thinking in various departments

of production.

5.Use of skilled salesman- Another importance of business organization is that it is

very useful in providing skilled salesmanship for satisfying the various needs of the
customers.

6.Quick decisions-The business organization makes it easy to take quick decisions.

7.Recognition of the problem-The recognition of the problem, selection of the

solution, issuing of the necessary orders can be taken at the right time.

8.Fixing of responsibility-One of the most important things of business organization is

that fixing of responsibility can easily be pinpointed.

9.Feedback-An organization makes it possible to take decisions at the right time about
production and thus may take feedback. Before making any decision organizations
always research the market and combine the facts.

10.Minimum cost-The organizations always try to attain the goals and objectives of the
business at the minimum cost.

CHARACTERISTICS OF MANAGEMENT

1. GOAL- ORIENTED
Every organization is established for a specific objective. Meaning management, under
organization, is an instrument or system that contributes to achieve predetermined objectives.
And the main objective of management is to maximize productivity with optimum use of
human effort.
2. UNIVERSAL ACTIVITY
Management is essential where there is human activity. It is also necessary for all types of
organizations. The process of management may be different from organization to organization
and place to place but the basic principles of management are the same. Thus, management
principles are universally applicable.
3. SOCIAL PROCESS
Management is a part of the social process to achieve its objectives by, with, and through the
people. It utilizes human resources for the achievement of organizational goals.
Management has to not only the organizational objectives but also the social objectives. It has
to fulfill the need: of employees within the organizational. resources.
4.DYNAMIC/MODIFIED ACTIVITY
Management is a dynamic and continuous process. The management system of today may not
be applicable or effective for tomorrow; therefore, management must be dynamic and flexible
with the changing environment of the society. And it has to modify its style according to the
time and situation to adjust the environment of the society. And it has to modify its style
according to the changing environment of a business.
5.GROUP ACTIVITY
The concept of management is not applicable if there is only one person or proprietor. It
requires a team, class or section of people involved in various managerial functions. It is
essential to have a group of people involved in performing any activity to achieve common
goals. Likewise, management defines the authority, responsibility, and procedures to perform
specific work.
6. DISTINCT PROCESS
Management as a process involves various types of functions. One function of management is
interrelated with another function. The management clearly defines the specific process of
work to achieve a predetermined goal without considering any trial and error approach.
7.BOTH SCIENCE AND ART
Management is both science and art. It is a science because it is based on some basic principles
of universal application. And it is also an art because skill and ability are required for performing
managerial functions.
8. A PROFESSION
The profession involves a specific type of work, followed by special knowledge and education.
With the development of Joint Stock Companies and Multinational Companies, ownership and
management have been different. Management of huge organizations has been entrusted in
the hands of professionals having specific skills and knowledge.
9.MULTI-DISCIPLINARY
Management is multi-disciplinary many of the principles and techniques used in management
are borrowed from several other disciplines like psychology, sociology, economics, and
mathematics.

Level of Management

The Three Level of Management provide a separation between the managerial positions of the
organization. The administrative rank of an organization worker determines the extent of authority, the
status enjoyed, and the chain of command that can be controlled by the worker. There are three levels of
management found within an organization, where managers at these levels have different roles to
perform for the organization to have a smooth performance, and the levels are:

1. Top-Level Management/ Administrative level

2. Middle-Level Management/ Executory

3. Low-level Management/ Supervisory

1. Top Level Management

Top-Level Management is also referred to as the administrative level. They coordinate services and are
keen on planning. The top-level management is made up of the Board of Directors, the Chief Executive
Officer (CEO), the Chief Financial Officer (CFO) and the Chief Operating Officer (COO) or the President and
the Vice President.

The Top-level management controls the management of goals and policies and the ultimate source of
authority of the organization. They apply control and coordination of all the activities of the firm as they
organize the several departments of the enterprise which would include their budget, techniques, and
agendas.

Top-level management is accountable to the shareholders for the performance of the organization.
There are several functions performed by the top-level management, but three of them are the most
important, and they are:

 To lay down the policies and objective of the organization

 Strategizing the plans of the enterprise and aligning competent managers to the departments or
middle level to carry them out.
 Keeping the communication between the enterprise and the outside world.

2. Middle Level of Management

Middle-level Management is also referred to as the executory level, they are subordinates of the top-
level management and are responsible for the organization and direction of the low-level management.
They account for the top-level management for the activities of their departments.

The middle-level managers are semi- executives and are made up of the departmental managers and
branch managers. They could be divided into senior and junior middle-level management if the
organization is big. They coordinate the responsibilities of the sub-unit of the firm and access the
efficiency of lower-level managers.

The middle-level managers are in charge of the employment and training of the lower levels. They are
also the communicators between the top level and the lower level as they transfer information, reports,
and other data of the enterprise to the top-level. Apart from these, there are three primary functions of
the middle-level management in the organization briefed below:

 To carry out the plans of the organization according to policies and directives laid down by the
top-level management.
 To organize the division or departmental activities.
 To be an inspiration or create motivation for junior managers to improve their efficiency.

3. Lower Level of Management

The lower level of Management is also referred to as the supervisory or the operative level of managers.
They oversee and direct the operative employees. They spend most of their time addressing the functions
of the firm, as instructed by the managers above them.

The lower-level managers are the first line of managers as they feature at the base of operations, so they
are essential personnel that communicates the fundamental problems of the firm to the higher levels. This
management level is made up of the foreman, the line boss, the shift boss, the section chief, the head
nurse, superintendents, and sergeants.

They are the intermediary, they solve issues amidst the workers and are responsible for the maintenance
of appropriate relationships within the organization. They are also responsible for training, supervising,
and directing the operative employees.

The lower level managers represent the management to the operative workers as they ensure discipline
and efficiency in the organization. The duty of inspiration and encouragement falls to them, as they
strengthened the workforce. They also organize the essential machines, tools, and other materials
required by the employees to get their job done.

III. FORMS OF BUS. ORGANIZATION/ OWNERSHIP

The forms of business organization with ownership is a legal concept which

determines the authority and responsibilities of the owner. The authority and
responsibilities of the owners keep on changing along with the changing forms of
ownership such as:

1. Sole Proprietorship

2. Partnership

3. Corporation

4. Cooperative

1.Sole Proprietorship - is the most common form of business

organization.

- A sole proprietorship is a business owned by only one person.

- It is the simplest form of business organization.

- It is easy to set-up and is the least costly among all forms of ownership.

- A sole proprietorship is not a legal entity. It has no life of its own separate and apart
from the owner of business.

- The owner of a sole proprietorship business is called PROPRIETOR.

ADVANTAGES DISADVANTAGES

1. Sole Proprietorship are relatively 1. Limited source of capital.

easy to organize.

2. The owner decides and is more 2.Unlimited liability of the sole

involve in the operation. proprietor.

3. Establishing, and operating the 3.Limited existence.

business is simple.

4. The owner/ proprietor gains the total 4.There is no separation between

profit of the business. business assets and personal
expenses.

5. The start-up cost is low. 5.Lack of financial control and difficulty

tracking expenses.

6. High working capital demands.

Example of Sole Proprietorship Business:

• A local grocery store

• Local clothes store

• Carinderias

• Stores and individuals rendering professional service such as:

• Lawyers

• Physicians

• Dentist

• Accountants

2.Partnership - is a contract where two or more persons bind themselves to

contribute money, property, or industry to a common fund, with the intention of dividing
the profits among themselves. These persons are called PARTNER.

- The ultimate goal of the partner is to divide the profits among themselves.

- “Partners “has important duty to each other in a partnership. The duty of loyalty
requires a partner to place the partnership’s best interest above their own personal
interest a partner is required to avoid all conflicts of interest between the partnership
and the personal dealings.

- A partnership is a business owned by two or more persons who contribute resources

into the entity.

- The partners divide the profits of the business among themselves

ADVANTAGES DISADVANTAGES

1. More partners, more capital 1. Unlimited liability

2. Added talent 2. Partners can disagree

3. Divided responsibility 3.Profit is shared

4. Greater business networks 4.Limited existence

5. Tax advantages 5.Mutual Agency

6. Ease of organization

7. Larger source of capital

8. Partners may contribute expertise

in managing the business.

There are three forms of partnership:

 1. GENERAL PARTNERSHIP

- General Partnership is the most basic form of partnership. It does not

require forming a business entity with the state.

- A business owned by two or more people, with a maximum of 20

owners, who have agreed to share all assets, liabilities, profits, and losses of a
company.

- All partners in general partnership have independent power to bind the

business to contracts and loans.

• ADVANTAGES:

 Added talent

 Divided responsibility

 More partners, more capital

 Greater business networks

 Tax advantages

• DISADVANTAGES:

 Unlimited liability

 Partners can disagree

 Profit is shared

LIMITED PARTNERSHIP

• Establishing a limited partnership requires two or more individuals agreeing to

start a business where one or more of the partners are liable only for the amount
they have invested.

• Clearly, what separates limited partnerships from other partnerships is that

partners can limit their liability.

• Limited partners, also known as silent partners, have a stake in the company but
do not have the ability to make management decisions.

ADVANTAGES:

 Share in profits and losses without needing to be involved in the business.

 Limited personal financial risks for limited partners.

 Taxed via your own income tax returns.

 Easier to attract new investors.

DISADVANTAGES:

 General partner(s) fully liable.

  Limited partner(s) can assume general partner liability if they become active in
the business.

 State taxes and fees.

JOINT VENTURES:

- A joint venture is an arrangement between two or more parties (often

established businesses) who have agreed to combine their resources in order
to accomplish a specific project.

- This arrangement remains valid until the completion of a project or a certain

period elapse.

ADVANTAGES:

Increased capacity and access to resources.

Shared liability with parties.

Access to new markets.

DISADVANTAGES:

Different visions for the joint venture.

Imbalanced inputs and outputs between parties.

Lack of communication could derail project.

EXAMPLES OF PARTNERSHIP BUSINESS:

 BM and Louis Vuitton

 Taco Bell and Doritos

 Burger King and McDonald’s

 Nike and Apple

 Levi’s and Pinterest

 Starbucks and Spotify

2. Corporation- is artificial being created by operation of law, having the right word
of succession and the powers, attributes and properties expressly authorized by
law or incident to its existence

- It is a business organization that has a separate legal personality from its owners.

- Ownership in a stock corporation is represented by shares of stock.

- Stockholders are the ones who shares the companies, which makes the
collective owners.

- The owners (stockholders) enjoy limited liability but have limited involvement in
the company's operations.
 - The board of directors, an elected group from the stockholders, controls the
activities of the corporation.

- Corporation as Artificial Being: In the eyes of the law, a corporation is an artificial

being independent of its owners. A corporation has a name and birth date
(incorporation date) just like a normal person. As an artificial being, a corporation
has rights, powers, and attributes. Here is an example of a right of a corporation:
It can acquire its own property. The names, powers, objectives, and registered
address of a corporation are included in a document called the articles of
incorporation.

- Owners of a corporation are called stockholders (also called shareholders).

Stockholders have rights to vote, dividends, and new stock issues. Right to vote
pertains to the stockholder’s ability to participate in the significant decision-
making agenda of the corporation through voting. Voting in a corporation is
generally proportional to the number of shares held by the stockholder.

ADVANTAGES DISADVANTAGES

1. Centralization of management.
1. Stringent requirements for registration.
2. Corporation organization is its long
existence. 2.Heavy government regulation.
3. Transferability of ownership.
3.Double taxation.
4. The liabilities of a corporation may not 4.Incorporation costs
extend to the stockholders.

Example of Corporation Business:

 San Miguel Corporation

 SM Investment Corporation

 Petron Corporation

 Coca-cola Corporation

 Toyota Motors Corporation

 Nestle Philippines

 Manila Electric Company

 Apple

 Google

5. Cooperative - is an association of persons (organization) that is owned and

controlled by the people to meet their common economic, social, and/or cultural needs
and aspirations through a jointly-owned and democratically controlled business
(enterprise). The people of the cooperative are those who use its products, supplies,
and/or services. Profits are also often returned back to the members of the cooperative,
however, cooperatives are often more focused on services for members than for
investments.
- Cooperatives are businesses owned by “member-owners” called cooperators

- A cooperative is a business organization owned by a group of individuals and is

operated for their mutual benefit.

- Service or goods provided by the co-op benefit and serve the member- owners.
TYPES OF COOPERATIVES:

 Agricultural cooperatives.

 Arts and Crafts

 Business cooperatives

 Child Care and Preschool Cooperatives

 Credit Unions

 Housing Cooperative

 Insurance Cooperative

 Student Cooperatives

 Utility Cooperatives

 Working Cooperatives

ADVANTAGES DISADVANTAGES

1. There are equal voting rights for

members. 1. Losses make higher prices for goods
and services.
2. This structure encourages member
contribution and shared responsibility. 2.Expensive to form and maintain.
3. There is no; omit on the number of
members. 3.Members have limited control.

EXAMPLES OF COOPERATIVE BUSINESS:

 Producer and worker cooperatives.

 Credit unions.

 Retail stores and Wholesalers.

 Housing Cooperatives.

 Rural Electric Cooperative

IV. Functions of Management

A manager is someone who can lead, direct and control operations and people in their
organization without imposing their authority. In a world where a more informal working
structure is becoming increasingly popular, a manager has to work with their team to
achieve larger goals. Functions of management are a great starting point to find your
footing before you dive straight into your role as a manager.

Functions of management help you stay informed about what you need to do and how
so that you can guide your staff accordingly. Management experts like Fayol and Gulick
explain the functions of management to equip yourself with the right skills to become an
accomplished manager.
Let’s say that you’re in the planning stage of your managerial process. This means that
you’ll first assess your goals, define your purpose and visualize what needs to be done.
This requires the ability to interpret historical data, evaluate current trends and develop
strategies for the future. Each function is successful if you can reach your destination
without problems like surpassing your budget or missing deadlines.

Here Are The Functions Of Management And Why They’re Important.

1. Planning - is an important function of management because it sets the pace for all
subsequent steps in the managerial process. You need to develop a roadmap for the
future—predefined steps—to accomplish organizational goals. In this step, you’ll have
to evaluate methods and strategies to determine how you’ll progress toward your
goal.
You may have to look at how things were done in the past to make any
adjustments to mitigate errors. You have to consider both internal factors—people, time
and cost—and external factors—competitors, policies and general business
environment—to arrive at a sound planning strategy.
Three different types of planning in management include:

1. Strategic: A long-term, high-level type of foundational planning that emphasizes

the mission, values, and vision of the organization. Upper management drafts its
strategic plans, and all managers should refer back to the strategic plans to guide
their decisions.

2. Tactical: A short-term (one year or less), objective-focused type of planning, often

carried out by middle management.

3. Operational: A plan that describes the daily roadmap of the activities within the
company. Low-level managers and supervisors devise operational strategies in most
cases.

2. Organizing - is the management function that follows after planning. This is where
you put your plan into action by establishing a system of authority or hierarchy in the
context of your organizational structure. Determine the tasks that need to be
completed to achieve your goals before assigning them to your staff. As opposed to
the traditional ways of working where a manager made all the decisions, today’s
business world is more dynamic and flexible. Every member of the organization—
regardless of position—shares accountability and responsibility.
 So, define an organizational structure that aligns with your workplace and assign
tasks that map to your team’s skills and abilities. You have to get everyone on the
same page and delegate tasks the way you see fit.

Organizing as a process entails the following steps: (Henry Fayol)

● Identification of activities: a critical planning step that occurs early in the

schedule planning and development process which also includes estimating

durations, determining and defining resources, and identifying external project

Constraints

.● Classification of grouping of activities: This is where they group the similar

and closely related activities together, it is known as departmentalization, The

primary group is based on functions such as sales, production, and finance.

● Assignment of duties: Following the division of the organization into specialized

departments, each individual working in the various departments is assigned a

duty that corresponds to his skill and qualifications. Individuals are assigned work

based on their abilities.

● Delegation of authority and creation of responsibility: The division of labor

and decision-making responsibility to an individual who reports to a leader or

manager is referred to as delegation of authority. It is the organizational process

by which a manager divides his or her own work among all of their employees.

● Coordinating authority and responsibility relationships: A formal,

institutional, or legal power in a specific job, function, or position that enables the

holder of that job, function, or position to successfully perform his task is referred

to as authority.A subordinate's responsibility is the obligation to perform a duty

assigned to him by his superior.

Examples of organizing in management include:

- Preparation of accounts, making sales, record keeping, quality control, inventory

control, etc. All these activities have to be grouped and classified into units.

3. Staffing - this is another important function of management. You have to assign

tasks based on each team member’s knowledge, skills and abilities. You have to be
careful here because you may have to hire new talent for specific tasks that require
specific technical expertise. Assessing the needs of your employees in terms of
 incentives, training and development and compensation are critical for the success of
this step.
- It is the function of staffing and maintaining the organizational structure. Staffing

has become more important in recent years as technology has advanced, business

sizes have grown, human behavior has become more complex, and so on.

Human resources can be efficiently managed by a system or proper procedure,

such as recruitment, selection, placement, training and development, providing

remuneration, and so on. Staffing aids in the placement of the right men in the right

jobs.

Choosing the right people to collaborate with can result in an effective team
dynamic that leads to more efficient product and service delivery. Scheduling all new
employees together can cause havoc, and scheduling all veteran employees together
can lead to a leadership struggle.

- This is the managerial function of recruitment selection, training developing

promotion and personal. The process of hiring and developing the required personel to

fill the various positions of the organizations. The best type of person suited to each
role,

and it's very important without capable personnel an organization cannot perform the

management function.

Staffing entails:

● Manpower planning

● Recruitment, selection and placement

● Training and development

● Renumeration

● Performance appraisal

● Promotions and transfer

4. Directing - is concerned with supervising your team’s progress. In this step, you
have to keep an open channel of communication and get regular updates to stay on
top of things. A great way to do this is by giving and receiving feedback to address
any problem areas and improve performance. This is where you have to act as a
leader, navigate conflict and motivate your employees to take initiative.
- It is the process of instructing, guiding, counseling, motivating, and leading

members of an organization to achieve its goals. It is one of the most important

managerial functions that every manager performs.The following elements comprise

direction:

A. Supervision- implies superiors supervising subordinates' work. It is the act of

watching and directing work and workers.

B. Motivation- means instilling, stimulating, or encouraging zeal in subordinates.

This can be accomplished through the use of positive, negative, monetary, or

non-monetary incentives.

C. Leadership- A process by which a manager guides and influences the work of

subordinates in the desired direction.

D. Communication- is the exchange of information, experience, opinions, and so

on from one person to another. It is a bridge of comprehension.

As a manager, you have to give each team member enough autonomy to help
them stay motivated and perform without constant supervision. Besides monitoring
your team, you also have to keep your manager and other stakeholders informed with
progress reports. The entire organization should work like a well-oiled machine to
achieve your goals in a time-effective manner.

5. Controlling - this is where you have to measure the progress of each step
established in the planning stage against your organizational goals. This step requires
you to coordinate with your employees to ensure that they’re moving in the right
direction and in the right manner. According to Gulick’s 7 functions of management,
controlling can be understood in terms of coordinating, reporting and budgeting.
Not only do you have to ensure that every step is going according to plan, but
also watch out for potential problems to take corrective measures. Make timely
adjustments and modifications where necessary. It’ll help you accomplish your goals
faster within your timeframe and your budget. Take this opportunity to cooperate with
everyone on your team.
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”.This assists in

measuring and correcting the members' performance activities in order to successfully

achieve the desired objectives.

Controlling consists of the following steps:

1.Establishment of standard performance- Performance expectations must to be

measurable, practical, and explicitly defined in writing. The standards ought to be

specified in terms of the precise performance measurement tools that will be

employed.

2.Measurement of actual performance- Based on an employee's total impact, cost

effectiveness, effectiveness, and capacity to apply best practices, performance

should be evaluated. Most people agree that measurements should be made

after a task is finished. However, it is best to measure the work as it is being

performed wherever possible.

3.Comparison of actual performance with the standards and finding out deviation
if any- In this step, it is also decided whether more regulation or a revision in the

standard are required.

4.Corrective action- when coaching and performance reviews have failed, a

procedure of communicating with the employee to improve performance or

behavior is used.

By utilizing these five managerial functions, we may work toward a common

purpose, make the most of all of our physical and human resources, get the most out of

a given amount of effort through careful planning, and adapt our organization to

changing external conditions.

Conclusion
Leading a team isn’t a walk in the park because you have to accommodate
different work styles, personalities and skillsets. Functions of management highlight
essential skills that every manager needs to supervise, coordinate and communicate
with their teams. As a good manager, you need to have the right insight to understand
who you’re working with and how you can use their abilities for the greater good of the
organization.

Our Managing Teamwork course will show you how to become an effective leader
and a reliable member of your team. Learn the importance of feedback and how it can
help you navigate conflict in your organization. With the power of the GRIN (Goals-
Roles-Interdependence-Norm) framework, you’ll be able to set goals, define a code of
conduct for your team and work closely with your teammates. Identify best practices
for your team to achieve your goals without losing sight of the big picture!

References:
 Principles of Management, Copyright 2019 by Anastasia H. Cortes et al.
 https://harappa.education/harappa-diaries/functions-of-management/

 An Introduction to the Principles of Management - Principles Of Management -

StateUniversity.com

 https://education.stateuniversity.com/pages/cw1ev9e9ib/An-Introduction-to-the-Pr

inciples-of-Management.html#ixzz7cGO3lOEc

● https://www.iedunote.com/management

● https://byjus.com/commerce/principles-of-management/?fbclid=IwAR0qiXwBbi2P

cMg3DY2TJmzI9hqOL-LCZUfwjx14VkteTycNSiaUxkg8XCQ

● https://www.managementstudyguide.com/management_importance.htm

● https://www.economicsdiscussion.net

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58

● Jacoby, Jeff. "Lady Justice's blindfold." Boston.com. 10 May 2009. 25 October

2017.

● Alpa, Guido (1994) General Principles of Law, Annual Survey of International &

 Starting a Cooperative. (2022). NEBRASKA COOPERATIVE DEVELOPMENT

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Assignment:

Study module 1 in preparation for the quiz next meeting.

For Clarifications:

1. Feel free to message me at our group chat, or

2. Email me at emildaescolano@yahoo.com.ph. In the email title, type your section and

concern (example: BSOA 1A- Question about Module 1). Type your complete name at
the body of the mail too.

Prepared by: EMILDA E. ESCOLANO, MBA/Camarines Sur Polytechnic College