Management is a distinct process of POSDiCon), performed to determine and accomplish

stated objectives by use of human being and other business resources.

Functions of Management

O Planning
O Organizing
O Staffing
O Directing
O Controlling

Management as an Arts
-Accomplishment of objectives through human efforts

Management as a Science
-It is a systematic body of knowledge. It gathers and analyzes facts and formulates general laws
or principles from these facts.

The Classical or Traditional School

-Principles of Management by Henry Fayol O Scientific Management by Frederick Taylor

Division of Work
-This is the specialization which the economists consider necessary to efficiency in the use of
labor

Authority and Responsibility

-Fayol sees authority as the power or the right entrusted to make the work possible and
responsibility as the duty or work assigned to a particular position.

Unity of Command
-Employees should receive orders from one superior / manager only.

Renumeration
-Renumeration and method of payment should be fair and afford the maximum possible
satisfaction to employees and employer.
-This is sometimes called “COMPENSATION”.
-“EQUALPAYEQUALWORK”

Centralization
-Authority is concentrated
-Major policies are made only by the Top Management

Scalar Chain
-Chain of Superiors
-Highest to lowest rank

Esprit De Corps
-It emphasizes the need for teamwork and the importance of communication in obtaining it.
- “In Union there is STRENGTH”

Span of Control
-It refers to the specific and limited number of subordinates that a manager can effectively
handle and control.

Simplicity
- Unnecessary elements should be eliminated from all activities having the same objectives.

Stability of Tenure
-Unnecessary turnover could be the cause and the effect of bad management.
-Employees should be given enough time and period to prove his worth to the company.

Unity of Direction
-One boss and one plan for a group of activities having the same objective.

Order
-Ensures a place for everything

Equity
-Results from kindness and justice.

Taylor’s Four Principle of Scientific Management

-Develop a science for each element of a man’s work to replace the old rule of thumb method
-Scientifically select and then train the workers
-Heartily cooperate with them
-Divide the work and the responsibility equally

Modern Management
O Top Management
O Middle Management
O Lower Management

Top Management
-Develops and reviews long – range plans and strategies
-Evaluates overall performance of various departments and ensures cooperation
-Involves in the selection of key personnel
-Consults subordinate, manages on subjects or problems of general scope

Middle Management
-Makes plans of intermediate range and prepares long range plans for review by top
management
-Analyzes managerial performance to determine capability and readiness for promotion
-Establishes Departmental Policies
-Counsels subordinates on production, personnel or other problems
-Selects and recruits personnel

Lower Management
-Makes detailed, short range operating plans
-Reviews performance of subordinates
-Supervises day to day operations
-Makes specific tasks assignments
-Maintains close contact with operative employees