Principles of management

VMSundaram
 Management Gurus
• F.W.Taylor – Scientific management
guru
• Hendry Foyal – Modern management

“ To manage is to forecast to plan to

organize to command to co-ordinate
and to control”
 Mangement
• Forecast
• Plan
• Organize
• Command
• Co-ordinate
• control
Management
 Process of management
General or Industry
• Planning
• Organizing
• Commanding
• Co-ordinating
• controlling
 5Ms
• Money - Finance management
• Man - HR or Personal management
• Machine - Operation management
• Material - Purchase management
• Management

Management is business goal oriented

 Levels of Management
• Top management - Authority
(Policy makers, CXOs)

• Middle management- Responsibility

(Departmental managers)

• Lower level management - Responsibility

(supervisory cadre office superintends)
 Principles of management
• Division of work
• Maintaining discipline
• Unity of direction
• Centralization
• Order
• Authority
• Unity of command
• Equity
• Subordination of individual interest to general
interest
• Span of control
• responsibility
 Planning
Planning is Primary function of
management according to Haimman

“Planning is deciding in advance what

is to be done”
 Characteristics of planning
• Based on objectives and policies
• Mental activities
• It is primary function of management
• Planning is to be flexible and variable
• Planning is proposal, it should be communicated to all concerns
• Planning has close relationship with time
• It has a dynamic aspects
• It concerns future activities
• It is based on facts
• It is directed towards efficiency
• It is decision making process
• Planning is goal oriented
• Planning is a intellectual process
 Process of planning
• Establishment of clear cut objective
• Building the essential premises for
planning
• Identifying alternate course of action
• Evaluating alternate course of action
• Choose of the best course of action
 Type of plan
• Policies
General statement for understanding to
guide thinking
• Procedure
Manner in which activities are performed
• Rules
Definite action to be taken or not to be
taken
 Type of plan
• Strategies
Action plan based on actual plan
• Programs
Single use plan for new and non
repetitive activities
• Budget
Time bound plans expressed in
quantitative terms
 Type of plan
• Forecasting
Estimating word in the wrong future
inferences from the known facts
• Decision making
Choosing between alternative course
of action