Principles of

Management

Contents
What is management? Functions of Management 14 Principles of Management Summary

Management
Management is a set of activities directed at an organizations resources with the aim of achieving organizational goals in an efficient and effective manner

Management
Activities include the four functions of management
Planning (and decision making) Organizing Leading Controlling

Management
Resources include:
Human Financial Physical Information

What is Management?
A set of activities
planning and decision making, organizing, leading, and controlling

directed at an organizations resources

human, financial, physical, and information

with the aim of achieving organizational goals in an efficient and effective manner.

What is management?
Management is an art of getting things done through and with the people in formally organized groups.

Classifying Managers
First-line Managers Are at the lowest level of management and manage the work of non-managerial employees. Middle Managers

Manage the work of first-line managers.

Top Managers

Are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization.

Kinds of Managers by Level and Area

Kinds of Managers by Level

Top Managers The relatively small group of executives who manage the organizations overall goals, strategy, and operating policies. Middle Managers Largest group of managers in organizations Implement top managements policies and plans. Supervise and coordinate lower-level managers activities. First-Line Managers Managers who supervise and coordinate the activities of operating employees.

Principles of management
Management principles are the statements of fundamental truth based on logic which provides guidelines for managerial decision making and actions.

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Management in Organizations
Planning and decision making Inputs from the environment Human resources Financial resources Physical resources Information resources Goals attained Efficiently Effectively Organizing

Controlling

Leading

The Management Process

Planning and Decision Making
Setting the organization s goals and deciding how best to achieve them

Organizing
Determining how best to group activities and resources

Controlling Monitoring
and correcting ongoing activities to facilitate goal attainment

Leading
Motivating members of the organization to work in the best interests of the organization

Skills and the Manager

Fundamental Management Skills

Management Skill Mixes at Different Organizational Levels

Steps in Scientific Management

1 Develop a science for each element of the job to replace old rule-of-thumb methods

2 Scientifically select employees and then train them to do the job as described in step 1

3 Supervise employees to make sure they follow the prescribed methods for performing their jobs

4 Continue to plan the work, but use workers to get the work done

The Behavioral Management Perspective

Placed much more emphasis on individual attitudes and behaviors and on group processes in organizations. Recognized the importance of behavioral processes in organizations
Hugo Munsterberg Mary Parker Follet Elton Mayo

Human Relations Movement

Grew out of the Hawthorne studies. Proposed that workers respond primarily to the social context of work, including social conditioning, group norms, and interpersonal dynamics. Assumed that the managers concern for workers would lead to increased worker satisfaction and improved worker performance.

The Quantitative Management Perspective

Focuses on decision making, economic effectiveness, mathematical models, and the use of computers in organizations
Management science Operations management

Systems Perspective
Synergy

Subsystems are more successful working together than working alone. The whole, working together, is greater than the sum of its parts.

Entropy
A natural process leading to system decline which can be avoided through organizational change and renewal.

Contemporary Management Theory

The Systems Perspective A system is an interrelated set of elements functioning as a whole. An organization as a system is composed of four elements: Inputs (material and/or human resources) Transformation processes (technical and managerial processes) Outputs (products and services) Feedback (reactions from the environment)

Principles of Management first described by Henri Fayol, French mining engineer (1841 - 1925) based on his experience. They still hold good Frederick Winslow Taylor is considered Father of Modern Management

There are 14 Principles of Management described by Henri Fayol

These principles are derived: 1. On the basis of observation and analysis i.e. practical experience of managers. 2. By conducting experimental studies.

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1. Division of Labor
Work of all kinds must be divided & subdivided and allotted to various persons according to their expertise in a particular area.

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2. Authority & Responsibility

Authority refers to the right of superiors to
get exactness from their sub-ordinates. Responsibility means obligation for the performance of the job assigned.

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3. Unity of Command
A sub-ordinate should receive orders and be accountable to one and only one boss at a time. He should not receive instructions from more than one person

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4. Unity of Direction
People engaged in the same kind of business or same kind of activities must have the same objectives in a single plan.

Without unity of direction, unity of action

cannot be achieved.

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5. Equity
Equity means combination of fairness, kindness & justice. The employees should be treated with kindness & equity if devotion is expected of them.

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6. Order
This principle is concerned with proper &

systematic arrangement of things and

people. Arrangement of things is called material order and placement of people is called social order.

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7. Discipline
Discipline means sincerity, obedience,

respect of authority & observance of rules

and regulations of the enterprise. Subordinate should respect their superiors and obey their order.

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8. Initiative
Initiative means eagerness to initiate

actions without being asked to do so.

Management should provide opportunity

to its employees to suggest ideas,

experiences& new method of work.

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9. Remuneration
Remuneration to be paid to the workers

should be fair, reasonable, satisfactory &

rewarding of the efforts. It should accord satisfaction to both employer and the employees.

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10. Stability of Tenure

Employees should not be moved frequently from one job position to another i.e. the period of service in a job should be fixed.

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11. Scalar Chain

Scalar chain is the chain of superiors

ranging from the ultimate authority to the

lowest.

Every orders, instructions etc. has to pass

through Scalar chain.

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12. Sub-Ordination of Individual Interest to common goal

An organization is much bigger than
the individual it constitutes

therefore interest of the undertaking

should prevail in all circumstances.

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13. Espirit De Corps

It refers to team spirit i.e. harmony in the

work groups and mutual understanding

among the members. Espirit De Corps inspires workers to work harder.

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14. Centralization
Centralization means concentration of

authority at the top level.

In other words, centralization is a situation

in which top management retains most of

the decision making authority.

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 The Principles of Management are the

essential, underlying factors that form the foundations of successful management. These principles serve as guidelines for decisions and actions of managers.

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Functions of Management
Planning Organizing Staffing Directing Controlling

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What Do Managers Do?

Functional Approach
Planning Defining goals, establishing strategies to achieve goals, developing plans to integrate and coordinate activities. Organizing

Arranging work to accomplish organizational goals. Leading Working with and through people to accomplish goals. Controlling

Monitoring, comparing, and correcting the work.

Organizational Functions
In order to produce and sell their product or service most organizations will need to undertake 6 key functions.
Design and Production Finance Human Resources Sales and Marketing Administration Research and Development.

Contemporary Management Issues & Challenges

Downsizing Diversity and the New Workforce Information Technology New Ways of Managing Globalization Ethics and Social Responsibility Managing for Quality Service Economy

THANK YOU!

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