Psychology of management

2. Functions and principles of leader’s management 
Analysis of the managerial process’ dynamic nature is carried out to a considerable 
degree by means of the management function classification which embraces the most important 
and stable managerial actions at particular stages of the managerial process. To such functions on 
can ascribe the following: prognosticating, planning, information gathering and analysis, 
preparation and taking a managerial decision, organization, regulating and coordination, control 
and evaluation of the managerial decisions. 
Let’s view briefly the essence of each oh the mentioned managerial functions: 
1. 
Function of prognostication
represents the most creative element of management 
which includes the most perspective point of contact of foresight with reality. Prognostication is 
based on the ample arsenal of means of logical, sociological, statistical, and economic character. 
Being a conclusion derived from the most obvious final tendencies of development, 
prognostication makes it possible to compile multi-variant models of the future and acts as the 
highest form of cognizance of surrounding world, which discloses inner interconnections and 
factors influencing social development, enables not only to state the most important problems, 
but also find their solution. 

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2. 
Planning
is the process of preparation of a totality of decisions for future actions 
aimed at goals’ achievement by using optimal means. By way of planningthere is achieved 
efforts coordination of all divisions, all employees to achieve the set goals. Planning is the basis 
of all managerial functions. 
3. 
Processing of information
is one of the stages of managerial process. Information is a 
system of data reflecting the objective world. Nevertheless, it does not mean that the notion of 
information expels the category of reflecting. In philosophy literature there has been pointed out 
the fallacy of such understanding, as information is a special kind of objective motion in nature, 
society, in human body. 
Information in management serves as its most important feeding source, it enables to 
correctly orientate in an ever changing environment, to percept and analyze it, to plan the most 
appropriate managerial actions. 
That is why of quite considerable importance is not only the study of the whole 
information system, but also its classification by content: political, economic, legal, etc.; the 
study of principles of information handling (objectivity, timeliness, correspondence to the 
character of the controlling subject’s functions, correlation between primary and secondary 
information, etc.); the study of the information carrier (documents, including laws, the press, 
science literature, printouts, data cards, punch tapes, etc.). There are strict rules of data 
collection, information processing and analysis. 
4.