CHAPTER 1

PRINCIPLES OF MANAGEMENT

Lesson Learning Outcomes:

• able to explain the management definition and
management process.

• able to explain the two types of management and its

process
Introduction
 Generally there are 5 steps/stages of decision/factors involves in
the board of directors or the management plans (in the planning
stage), prior to the excavation of a project work (or even before
carrying out the feasibility study of the project):
1. Identification of the objective to be achieved.
2. Expression of the objectives in term of time.
3. Assessment of the resources available against resources
required.
4. Establish the most economical method by which the
objectives can be achieved by the time required taking into
account the resources available.
5. From the method selected, specify the allocations of
responsibilities.
Introduction (cont…)
 A manager is one who directs the work of other and who does his
work by getting other to do theirs. Sometimes simplified as ‘the
people at top’.

 Several of definition for the term ‘management’, they include:

 The art and science of controlling people, equipment,
materials, money and schedule to complete a specified project
on time and within approve cost.
 The organized human activities involving the organization of a
number of individuals in order to achieve common objectives.
 The function of getting things done through other people.
Function of Management
 The function of management may be classified into two;
1. sequential or
2. Continuous

 Sequential function
 includes planning, organizing, staffing, directing, and
controlling.
 Occur in sequences, i.e. planning is follows by organizing, then
staffing, directing, and controlling.
 The output or result of an activity is measured and necessary
corrective action will be proposed, back to the function of
planning (appears in cycle).
Function of Management (cont…)
 Continuous functions
 Include problem analysis, decision-making, and
communicating.
 Occur throughout the management process rather than any
particular sequence. E.g. many problems were analyzed and
various decisions were made throughout the process of
planning, organizing, staffing, directing, and controlling.
 A manager must have effective communication skill to transmit
the decisions and information well.
Sequential Function
Planning
Organization
Staffing
Directing
Controlling
Sequential Function (cont.)
 Planning

 is the formulation of a course of action to guide a project to

completion.
 concern with deciding future operations on the basis of
available forecast.
 When a manager formulates an organization plan, it involves:
o Determining the objectives or policies of the organization.
o Recognizing various standards and factors that affect these
objectives.
o The standards may be budget, time, or profit margin.
o Formulate activities or program in order to achieve the
organization objectives.
o Forecasting financial implications.

 Forecasting is to anticipate/conjecture/guess/expect/predict in
advance about how something will develop.
Sequential Function (cont.)
 Organization

 is the arrangement of resources in a systematic manner to fit

the project plan.
 Grouping of activities to be performed according to the plan of
the organization, and this is referred as departmentation.
 Assign each department the defined tasks, responsibility, and
relevant managerial authority.
 Define each department the responsibility.
 Establish the relationship between each department.
Sequential Function (cont.)
 Staffing

 is the selection of individuals who have expertise to produce

the work.
 Appoint requisite numbers of personnel to fulfill the
responsibilities as lay down by the organization’s structure.
 Control candidates selection, emphasize on relevant criteria
such as qualification, ability, experience, knowledge and
communication skill.
 Staff training and development.
 Formulate fair job performance assessment/appraisal system.
 Formulate fair reward and reprimand system.
 Formulate fair promotion and dismissal system.
Sequential Function (cont.)
 Directing

 Directing is the guidance of the work required to complete a

project.
 Delegating or issuing of orders and instructions.
 Guiding the subordinates to work in the proper methods.
 Motivate the subordinates to work towards the objectives.
 Supervise sub-ordinates to ensure that they perform according
to the plan.
Sequential Function (cont.)
 Controlling

 The task of establishing various performance standards to

measure, report and forecast deviation in the project scope,
budget and schedule. 
 Comparing of actual result to these standards.
 Taking corrective action to reduce or eliminate discrepancies.
 Utilize control devices/tools/techniques to devise (formulate)
feedback system towards objectives achievement mechanism.
 Task that requires continual and timely reporting of information
so that the management can respond in immediate.