B.B.A. L.L.B. (HONS.

)
SEM – 1
MAJOR - I

PRINCIPLES OF MANAGEMENT
Margie Acharya
Assistant Professor
Faculty of Law
 UNIT - 1 INTRODUCTION TO MANAGEMENT
FLOW OF TOPIC:
 Introduction to management: concepts & Practices
 Definition of Management
 Importance of Management
 Management and Administration
 Management Functions/Process of Management
 Levels of Management
 Organizational/Business Functions
 Roles of Senior Manager
 Management as profession overview
 Management – A Science or Art
 Development of Management Thought – early Classical Approaches
 Neo-classical approaches
 Modern Approaches
 Business Ethics and Corporate Governance
FACULTY OF LAW - BBA LLB (HONS.), MARGIE ACHARYA
MANAGEMENT – CONCEPT & PRACTICES
 “Art of getting things done through people” – Mary Parker Follet
 Manager: Contributes to Organization goals indirectly by directing the efforts of
others
 Personnel: Contributes to organization goals directly by performing the task himself
 Can a person play both these roles simultaneously ?? Yes!!
 Example: Sales manager performs role of a manager while directing his sales force
and a non managerial role while negotiating a deal with the customer

FACULTY OF LAW - BBA LLB (HONS.), MARGIE ACHARYA

 DIFFERENT DEFINITIONS OF MANAGEMENT
 “Consists of Planning , organizing, actuating and controlling , performed to determine and
accomplish the objectives by use of people and resources” – George R Terry

 “Management is an organ – Organs can be described and defined only though their
functions” – Peter F Drucker

 “Management is the art of knowing what you want to do and then seeing that it is done in
the best & cheapest way” – F. W. Taylor

 “To manage is to forecast and plan , to organize, to compound, to coordinate and to

control” – Henry Fayol

FACULTY OF LAW - BBA LLB (HONS.), MARGIE ACHARYA

 IMPORTANCE OF MANAGEMENT

 Critical element in economical growth of country

 Essential in all organized efforts – business or any other activity

 Dynamic & life giving element in every organization

FACULTY OF LAW - BBA LLB (HONS.), MARGIE ACHARYA

MANAGEMENT & ADMINISTRATION

FACULTY OF LAW - BBA LLB (HONS.), MARGIE ACHARYA

MANAGEMENT FUNCTIONS/PROCESS OF
MANAGEMENT
 According to Henry Fayol there are 5 Functions of Management:

FACULTY OF LAW - BBA LLB (HONS.), MARGIE ACHARYA

ORGANIZATIONAL/BUSINESS FUCTIONS &
ROLE OF A SENIOR MANAGER
 Organizational Functions are finance, production, sales,Personnel

 Manager whose activity is restricted to one organizational function is concerned

with all managerial functions and roles

 A Senior manager occupies different positions in different situations as he/she is

expected to do so by people in each situation in his organizations. A senior
manager is expected to perform interpersonal, informational and decisional roles

FACULTY OF LAW - BBA LLB (HONS.), MARGIE ACHARYA

FACULTY OF LAW - BBA LLB (HONS.), MARGIE ACHARYA
LEVELS OF MANAGEMENT

FACULTY OF LAW - BBA LLB (HONS.), MARGIE ACHARYA

 MANAGEMENT – AN ART

 Art deals with the “how” of it. Hence managing is concerned with how a particular
objective will be accomplished. How would he/she get things done
 This personal ingenious and imaginative power of the manager lends management the
approach of an art.
 Art of managing involves the conception of a vision of an orderly whole, created from
chaotic parts and the communication and achievement of this vision.
 Managing can be called "art of arts" because it organizes and uses human talent, which
is the basis of every artistic activity.

FACULTY OF LAW - BBA LLB (HONS.), MARGIE ACHARYA

 MANAGEMENT – A SCIENCE
 Science usually answers the question “Why”

 A manager has to constantly analyse the situation, determine objectives, seek

alternatives, implement, coordinate and control to evaluate information and
arrive at decisions with the limited resourced : manpower and money he has
been allotted.

 Unlike the scientists , managers use their skills to continually evaluate the
surroundings around them depending on the changing situations or howver best
way the result is to be achieved.

FACULTY OF LAW - BBA LLB (HONS.), MARGIE ACHARYA

MANAGEMENT – A PROFESSION
 Increasingly essential to acquire professional knowledge or training
 Unlike medicine or law, management does not have fixed norms of
managerial behaviour

FACULTY OF LAW - BBA LLB (HONS.), MARGIE ACHARYA

CLASSICAL APPROACHES TO
MANAGEMENT

FACULTY OF LAW - BBA LLB (HONS.), MARGIE ACHARYA

 Scientific Management Approach
 Prompted by Federick Taylor – Known as Father of Scientific Management

 Contributions of various concepts under scientific management:

1. Time & Motion Study

2. Differential Payment

3. Reorganization of Supervision

4. Scientific Recruitment & training

5. Friendly Cooperation between Management & Workers

6. Now approach has evolved into “Job Engineering”

FACULTY OF LAW - BBA LLB (HONS.), MARGIE ACHARYA

Administrative Management
Approach
 Prompted by Henry Fayol - Father of Administative Management Theory

 Focused on broader administrative principles applicable to general & higher

management levels

 Presented 14 prinicples of management to management process & practice:

Division of Work, Authority & Responsibility, Discipline, Unity of Command, Unity of

Direction, Subordination of Individual to General Interest,Remuneration,
Centralisation, Scalar Chain, Order, Equity, Stability of Tenure of Personnel, Initiative,
Esprit De Corps

(DAD SOURCE ISSUE)/(A. DISCUSS OUR DUE)

FACULTY OF LAW - BBA LLB (HONS.), MARGIE ACHARYA

Bureaucratic Management Approach

 Prompted by Max Weber – Known as Father of Bureaucracy

 Delegation of Management responsibilities is based on person’s ability to hold
the position.
 Earning the position to take decisions based on his/her capability.
 Approach states below features:
1. Insistence of following standard rules
2. Systematic Division of Work
3. Hierarchy is to be followed
4. Mandatory for individual to know and train in the application of rules
5. Administrative Acts, Decisions and rules are to be recorded in writing
6. Rational Personnel Administration

FACULTY OF LAW - BBA LLB (HONS.), MARGIE ACHARYA

 Criticisms of Theories
No. Scientific Administrative Bureaucratic

1 Only focuses on tasks rather Leads to forming small groups Stick to the rule concept
than problem solving & and only caring about task causes fear which affects
decision making assigned to him/her working spirit

2 Economic incentives are not Dissatisfaction among workers Buck passing increases
enough for worker as a where there are no rules
motivation which causes shifting
decisions
3 No one best way to do work. Sometimes the principles may Skills and abilities are
Different workers will do work contradict developed in a specialised
in different way, rhythm, area only
attention & Speed

4 Increases confusion and Principles state what is to be Causes displacement of

overhead cost done in all circumstances goals and cause professional
instead of conditional ones automation
FACULTY OF LAW - BBA LLB (HONS.), MARGIE ACHARYA
NEO CLASSICAL THEORY OF
MANAGEMENT
 They do not reject classical concepts but only refine and improve them

 Human Relation Movement/ Hawthrone Studies: Focused on the human aspect

of the organization. Helped in determining that an employee-centric
democratic & Participative style of leadership is more efficient

 Behavorial Approach: A more developed version of Human Relation Movement

which revolves around organization behaviour and is more focused on
adapting different leadership style according to the need of goal achievement
in the organization while focusing on the employees motivation and
encouragement to perform better.

FACULTY OF LAW - BBA LLB (HONS.), MARGIE ACHARYA

 MODERN APPROACH TO
MANAGEMENT
 Quantitative Approach: Focuses on Decision Making – to provide quantitative tools & techniques to
make rational decisions. Widely used in planning & control activities where problems can be identifies
and defined in quantitative terms.

 Systems Approach – Provides integrated approach to management problems which divided the
organization into different systems and requires continuous analyzing in order to arrive at optimum
solutions. Requires a manager to have holistic idea for organization and general skill set

 Contingency Approach – No universal applicability of a particular management principle under all

conditions. Results would differ as situations would differ. Usually helpful in designing organizational
structure, decentralization, motivation and leadership, and almost all areas of organizational
management

FACULTY OF LAW - BBA LLB (HONS.), MARGIE ACHARYA

Business Ethics
 Application of Moral Principles to Business Problem

 An action may be legally right but ethically wrong

 Credibility of Business depends on high business ethics and integrity

 Firms are liable for the illegal activities of their employees.

 Even if laws can be circumvented, businesses risk paying a hidden cost—loss of

reputation.

 Common ethical issues include workplace discrimination, inaccurate financial

reporting, inappropriate safety measures, poor working conditions, employee
harassment, and misleading product information.

 Lack of direct communication hampers the enforcement of ethical policies.

FACULTY OF LAW - BBA LLB (HONS.), MARGIE ACHARYA

Corporate Governance
 Term Denoting the extent to which companies run in an open and honest
manner in the best interest of all stake holders
 Key elements include transparency & accountability
 Major benefits for organization with good CG:
1. Increases overall market confidence and long term trust in the company
2. Increase company share price value
3. Ensures integrity of company’s financial reports
4. Improves strategic thinking by inducting independent directors

FACULTY OF LAW - BBA LLB (HONS.), MARGIE ACHARYA

 YOUTUBE VIDEOS YOU COULD LISTEN TO:

1. Principles Of Management | Business Studies | Introduction | BBA | B.com | MBA | BCA | Class 12 :
https://www.youtube.com/watch?v=kTWyt6KC9Jw

2. Principles Of Management | Business Studies | Introduction | BBA | B.com | MBA | BCA | Class 12:
https://www.youtube.com/watch?v=Ouzc4v-f3fE

3. Approaches of management with examples / Different schools of management thought with example:
https://www.youtube.com/watch?v=-kmrR8wuhRE

4. Neo Classical Approach Of Management / Human relations approach / Hawthorne Experiments:

https://www.youtube.com/watch?v=6na_TWmmc0U

5. CLASSICAL MANAGEMENT THEORIES EXPLAINED IN HINDI | Max Weber, Henri Fayol and Fredrick Taylor :
https://www.youtube.com/watch?v=Y4xZOeAXvP4

6. Evolution of Management Thought | Management Theories :

https://www.youtube.com/watch?v=la49AN5zVyU&list=PLp2ebsNpp2Qo6EgY9IF2hOhFSNXCUw5Xt&index=1

7. Corporate Governance and Business Ethics | Part - 1 : https://www.youtube.com/watch?v=EHtmd6N8L3k

FACULTY OF LAW - BBA LLB (HONS.), MARGIE ACHARYA