Psychology of management

Adjustment and coordination
are also one of the functions of management. 
According to the general theory of management, there arises the necessity not only to keep, but 
also constantly sustain the state of the system’s order in the whole, its qualitative distinctness. 
The environment’s influence, of outer factors lead sometimes to undesirable impacts on the 
controlling system, influences the extent of the system’s fulfilling its tasks, the interconnection 
of the subject and object of management. It is adjustment as a managerial function that is called 
upon to constantly decrease the “entropy” of management system, and coordination – to ensure 
the correct correlation of various departments, the subjects of the controlled object. 
As for the forms of the management process regulations themselves, they possess a huge 
potential. That is why the problem of choice and correct correlationof forms and methods of 
managerial activity is of utmost importance in the adjustment process. 
7. And finally, to the number of managerial functions we should relate 
the control and 
evaluation of the managerial decisions’ results.
Thanks to the checking of the execution of 
taken decisions and all-round control of their fulfilment there is analyzed the real composite 
situation in the controlled system, and the degree of its deviation is thus established. In this case, 
by using the system of control and that of analysis of the information coming from controlled 
objects, and statistical data (all that can be viewed in complex as availability of feedback 
between the controlling and the controlled systems) there appears an opportunity to make an 
estimation of managerial decisions and actions’ effectiveness by using scientifically grounded 
evaluation criteria. The whole complex of the data obtained from such an analysis enables to not 
only take into account the changes occurring in the process of the controlled system, but also to 
prepare new material, new decisions for further maintaining of management process. 

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The essence of management is disclosed not only through its functions, but through its 
principles as well. Let’s view in more detail these principles and their content presented in the 
following table: 
1. One-man (sole) management 
principle 
People react better to the fact that they are headed by 
only one person. 
2. Motivation principle 
The better the executives develop and implement 
methods of incentives and sanctions, analyze them 
considering all unforeseen circumstances, integrate 
them into management system, the more effective result 
of the stimulation process will be. 
3. Leadership principle 
People are liable to follow promptly the executive in 
whom they see a possibility of accomplishing their own 
goals. The more the executives realize the action of 
motivational factors, the stronger these factors influence 
the result of managerial functions’ performing, and 
consequently, the more effective is the leader’s work. 
4. Principle of scientific content 
This principle lies in the constructing the whole 
management system on the latest achievements of 
science. 
5. Responsibility principle 
These are certain instructions, regulations, and the 
system of financial liability and administrative 
responsibility. 
Clear 
statement 
of 
orders 
and 
instructions, directed at increasing of exactingness and 
qualitative performance of professional duties and tasks 
placed on every employee in strictly set time limits. 
6. Principle of correct personnel 
selection and placing 
Under conditions of civilized personnel selection it is 
maintained only on the basis of applicants’ merits. 
7. Principle of economy 
Profit is not only an organization’s net income, but also 
reasonable expenses on reproduction of labor potential 
and material resources. 
8. Principle of information support 
This is not only obtaining information on the work 
results, but also the presence of feedback which enables 
to compare the actual state of the controlled system with 
the preset plan. 
9. Principle of labor division 
Labor division s a necessary and natural process of 
specializing in manufacture the goal of which is 
fulfilling a work of a larger volume and of better quality 
at the same preset conditions of integrity. This result is 
achieved on account of reduction in the number of goals 

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at which the attention and efforts of employees have to 
be directed. 
10. Principle of authority 
Authority (or power) is the right to apply, use, 
organizing-and-executive methods of management – not 
only to give orders, instructions, but also bear 
responsibility which acts as the opposite of authority. 
Where authority is given, there certainly appears 
responsibility as well. 
11. Principle of discipline 
Discipline supposes fulfilling and respect of all the 
points of an agreement concluded between a company 
and its employees. The prescribed agreements between 
them define the rights and duties of the two parties of 
these relations. And the elaboration and reflecting of 
disciplinary demands to the employees in such an 
agreement is one of the main executive’s tasks. The 
very notion of discipline by all means presupposes a fair 
use of administrative sanctions if being broken. 
12. Principle of personal interests’ 
subordination 
Interests of a separate employee or a whole group must 
not prevail over the goals, tasks, and interests of the 
company and organization as a whole. 
13. Centralization principle 
Both differentiation and centralization of a process are a 
natural process in management. Nevertheless, the 
corresponding extent of the managerial process’ 
centralization will vary depending on specific 
conditions of management. That’s why there arises a 
question of a rational proportion between centralizing 
and decentralizing. This problem lies in the estimation 
of measure which can ensure the most effective results. 
14. Principle of scalar chain 
A scalar chain is a certain number of managerial 
personnel of a system’s hierarchal management system 
starting from the top-rank executive to a manager on the 
shop-floor. It would be a mistake to discard the present 
hierarchal management structures without necessity. 
Nevertheless it would be a greater mistake to maintain 
an hierarchal structure which causes damage to business 
interests.