Management Principles & Evaluation Techniques


Sound management principles and evaluation techniques are necessary to effectively run a business. Sometimes principles govern interactions with employees, while sometimes they are used to analyze a variance with a company's goals. It is important for managers to understand when and where to apply various managerial standards and practices.


  • One principle of management is planning. It is the manager's responsibility to plan the day-to-day activities for a business organization. Planning can incorporate all the activities within an organization and may include sales targets, personnel management and strategic planning. A manager must have the ability to establish a vision for a department or company. Employees need an understanding of where the company is going and how it is going to get there. Managers can motivate the staff to meet the goals and objectives that have been set.

Setting Goals and Objectives

  • Managers are also responsible for controlling activities that go on within their area of authority. They must set standards using the objectives of an organization. The results are monitored on a regular basis to see if the objectives are being met. It is the job of the manager to evaluate the situation to see why a variance exists. Sometimes corrective measures have to be put in place to make sure objectives are met in the future.

Motivating Employees

  • Another principle of management is employee motivation. In order for a business to run smoothly a manager needs a cooperative staff. Managers can motivate employees with their words, actions, and deeds. They can inspire and encourage employees during difficult times and help them reach their full potential.

Delegating Authority

  • Managers also organize the activities of an organization by delegating authority when necessary. Certain activities, duties and responsibilities can be carried out by junior employees. A manager is responsible for their span of control, which may be as many as 25 to 35 subordinates, depending on the organization. Delegation along with technological advances give managers the ability to increase their span of control.

Performance Evaluation

  • Employees receive performance appraisals, usually on an annual basis, and the manager must administer them in a professional manner. Performance appraisals help managers address performance problems as well as give recognition when employees go above and beyond the call of duty. If there is a performance issue a manager can address them and then, in conjunction with the employee, establish a plan of action designed to eradicate negative variances. Performance appraisals also help managers recognize training needs.

Organization Evaluation

  • A company also needs an effective organization evaluation plan in place. Evaluations often look at whether goals and objectives are being met. If the sales and revenue goals are not being met, a manager will evaluate the factors that may be contributing to failure. The issue may lie with the employees and their training needs, or it could be something that is uncontrollable, such as the economy and market conditions.

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