PRINCIPLES OF

MANAGEMENT
Lecturer: Mrs. Attah
 Functions of Management
There is disagreement among management writers on the classification of managerial functions.

Some classify these functions into four types, some into five and some into six or seven. The

terminology is also not always alike, different authors offering names for the same functions of

management. For instance Newman and Summer recognize only four functions, namely organising,

planning, leading and controlling. Henri Fayol identifies five functions of management which are

planning, organising, commanding, coordinating and controlling. Luther Gulick states seven such

functions under the catch word “POSDCORB” which stand for planning, organising, staffing,

directing, coordinating, reporting and budgeting. For our purposes we will look at the functions of

planning, organising, directing and controlling. We will also briefly look at two additional managerial

functions considered by Ernest Dale which are innovation and representation.

 Planning
Planning is the function that determines in advance what should be done. It is looking ahead

and preparing for the future. It is a process of deciding the business objectives/goals and

charting out the methods of attaining those objectives. In other words. It is the determination

of what is to be done, how and where it is to be done, who is to do it and how the results are

to be evaluated. This is done not only for the organisation as a whole but for every division,

department or sub-unit of the organisation. Thus planning is a function that is performed by

managers at all levels-top, middle and supervisory. Plans made by top management for the

organisation as a whole may cover periods as long as five or ten years. Plans made by middle

or first line managers, cover much shorter periods. Such plans may be for the next day’s work,

for example for a two-hour meeting to take place in a week.

How to set goals? Be SMART!

Planning involves the setting of goals. Goals must be SMART

SMART Goals are

Specific – goals are clearly defined and focused.

Measureable – outcome of the goal can be measured.

Achievable – goals should be realistic.

Relevant – goals are relevant to the business operation.

Time-bound – a specific period of time must be set for achieving the goal.
SMART Goals

Specific: To set a specific goal, there are some questions to ask.

Who is involved?

What to accomplish?

When to start/end?

Example: setting the goal as “to achieve $3 million sales for product A in the next year” is more

meaningful than “to get more business”.

Measurable: establish concrete criteria for measuring outcomes.

The criteria should be quantifiable so that the outcome can be easily measured.

Examples: to achieve $1 million net profit in the next year or to obtain 20% market share in the

industry.
SMART Goals

Achievable: it is important to ensure the goals are realistic and are attainable considering the

abilities and financial capacity of the company.

Example: it is not appropriate for a small company to set a goal of earning billions dollars in one

year.

Relevant: the goals should be based on current economic climate.

Example: a business can set a goal of increasing 20% in sales for its product A in the next year

which is relevant to the goal of obtaining 20% market share in the industry.

Time-bound: a goal should be bound within a time frame.

Example: it is not appropriate to set a goal of $30 million sales without time limit or it will never

be achieved as there is no sense of urgency.