PRINCIPLE OF MANAGEMENT

ASSIGNMENT -1

NAME: R. ENCELIN LOVELY DEPT:EIE

ROLLNO:20BEI015

1. Discuss Importance of Management in an organization.

Management skills can be defined as certain attributes or abilities that an

executive should possess in order to fulfill specific tasks in an organization. They include
the capacity to perform executive duties in an organization while avoiding crisis situations
and promptly solving problems when they occur. Management skills can be developed
through learning and practical experience as a manager. The skills help the manager to
relate with their fellow co-workers and know how to deal well with their subordinates,
which allows for the easy flow of activities in the organization.

1.It helps in Achieving Group Goals – It arranges the factors of production, assembles and
organizes the resources, integrates the resources in effective manner to achieve goals. It
directs group efforts towards achievement of pre-determined goals.

By defining objective of organization clearly there would be no wastage of time, money

and effort. Management converts disorganized resources of men, machines, money etc.
into useful enterprise. These resources are coordinated, directed and controlled in such a
manner that enterprise work towards attainment of goals.

2.Optimum Utilization of Resources – Management utilizes all the physical & human
resources productively. This leads to efficacy in management.

Management provides maximum utilization of scarce resources by selecting its best

possible alternate use in industry from out of various uses.

It makes use of experts, professional and these services leads to use of their skills,
knowledge, and proper utilization and avoids wastage. If employees and machines are
producing its maximum there is no under employment of any resources.
3.Reduces Costs – It gets maximum results through minimum input by proper planning
and by using minimum input & getting maximum output.

Management uses physical, human and financial resources in such a manner which results
in best combination. This helps in cost reduction.

4.Establishes Sound Organization – No overlapping of efforts (smooth and coordinated

functions). To establish sound organizational structure is one of the objectives of
management which is in tune with objective of organization and for fulfillment of this, it
establishes effective authority & responsibility relationship i.e. who is accountable to
whom, who can give instructions to whom, who are superiors & who are subordinates.

Management fills up various positions with right persons, having right skills, training and
qualification. All jobs should be cleared to everyone.

5.Establishes Equilibrium – It enables the organization to survive in changing

environment. It keeps in touch with the changing environment.

With the change is external environment, the initial co-ordination of organization must be
changed. So it adapts organization to changing demand of market/changing needs of
societies. It is responsible for growth and survival of organization.

6.Essentials for Prosperity of Society – Efficient management leads to better economical

production which helps in turn to increase the welfare of people. Good management makes
a difficult task easier by avoiding wastage of scarce resource.

It improves standard of living. It increases the profit which is beneficial to business and
society will get maximum output at minimum cost by creating employment opportunities
which generate income in hands. Organization comes with new products and researches
beneficial for society.

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 2. What are the four managerial functions and how do they Interrelate with each
other?
The four functions of management are derived from the five functions
described by Henri Fayol in the early 20th century (planning, organizing,
commanding, coordinating, and controlling). The four functions are:

• Planning involves the planning of decision making.

• Organizing includes appropriate coordination between planning and
resources.
• Leading involves motivating the employees to achieve organizational
goals.
• Controlling is related to monitoring and evaluation.

Planning

The first of the managerial functions is planning. In this step, the manager will create a
detailed action plan aimed at some organizational goal. For example, let’s say Melissa the
marketing manager has a goal of increasing sales during the month of February. Melissa
needs to first spend time mapping out the necessary steps she and her team of sales
representatives must take so that they can increase sales numbers. These steps might
include things like increasing advertisements in a particular region, placing some items on
sale, increasing the amount of required customer-to-sales rep contact, or contacting prior
customers to see if they are interested in purchasing additional products. The steps are then
organized into a logical pattern so that Melissa and her team can follow them. Planning is
an ongoing step, and can be highly specialized based on organizational goals, division
goals, departmental goals, and team goals. It is up to the manager to recognize which goals
need to be planned within his or her individual area.

Organization

The second of the managerial functions is organizing. This step requires Melissa
to determine how she will distribute resources and organize her employees according to
the plan. Melissa will need to identify different roles and ensure that she assigns the right
amount of employees to carry out her plan. She will also need to delegate authority, assign
work, and provide direction so that her team of sales representatives can work towards
higher sales numbers without having barriers in their way.

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Leading

The third function of management is leading. In this step, Melissa spends time connecting
with her employees on an interpersonal level. This goes beyond simply managing tasks;
rather, it involves communicating, motivating, inspiring, and encouraging employees
towards a higher level of productivity. Not all managers are leaders. An employee will
follow the directions of a manager because they have to, but an employee will voluntarily
follow the directions of a leader because they believe in who he or she is as a person, what
he or she stands for, and for the manner in which they are inspired by the leader.

Controlling

The controlling function consists of monitoring performance and progress through project
execution and making adjustments as needed. Managers should ensure that employees
meet deadlines while simultaneously balancing synchronicity amongst the project’s
resources and the overall budget. Managers may need to take corrective actions and be
proactive in their approach to ensure that team members meet their assigned deadlines.

Two key areas where managers may need to make adjustments include staffing and
budget. For example, let’s say an assigned leader working on a project leaves the company.
The manager will need to identify a replacement as soon as possible, train them efficiently,
and, hopefully, keep the project running smoothly.

From a budget perspective, managers should monitor spend closely. Suppose a project
starts to run over budget — in that case, the manager should identify what’s causing the
overspend. If that expense is justified, they should proactively ask for additional funding
or curb spending to be more mindful of the budget in other areas.

3. Give an account of Henry Fayol’s 14 principles of management.

Henry Fayol’s 14 principles of management look at and organization from a top-down

approach to help managers get the best from employees and run the business with ease.

1. Division of Work

The first Henry Fayol principle of management is based on the theory that if an employee
is given a specific task to do, they will become more efficient and skilled in it. This is
opposed to a multi-tasking culture where an employee is given so many tasks to do at once.
In order to implement this principle effectively, look at the current skill sets of each
employee and assign them a task that they can become proficient at. This will help them
to become more productive, skilled, and efficient in the long run.

2. Authority

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This henry fayol principle of management states that a manager needs to have the
necessary authority in order to ensure that his instructions are carried out by the employees.
If managers did not have any authority, then they would lack the ability to get any work
done. However, this authority should come along with responsibility. According to Henri
Fayol, there should be a balance between authority and responsibility. If there is more
authority than responsibility, the employees will get frustrated. If there is more
responsibility than authority, the manager will feel frustrated.

3. Discipline

This principle states that discipline is required for any organization to run effectively. In
order to have disciplined employees, managers need to build a culture of mutual respect.
There should be a set of organizational rules, philosophies, and structures in place that
should be met by everyone. Bending rules or slacking should not be allowed in any
organization. In order to achieve this, there is a need for good supervision and impartial
judgment.

4. Unity of Command

This principle states that that should be a clear chain of command in the organization. The
employees should be clear on whose instructions to follow. According to Fayol, an
employee should receive orders from only one manager. If an employee works under two
or more managers, then authority, discipline, and stability are threatened. Moreover, this
will cause a breakdown in management structure and cause employees to burn out.

5. Unity of Direction
This henry fayol principle of management states that the work to be done should
be organized in such a way that employees work in harmony towards the same
objective, using one plan, under the direction of one manager. For example, if you
have a range of marketing activities such as advertising, budgeting, sales
promotion, etc., there should be one manager using one plan for all the marketing
activities. The different activities can be broken down for different sub-managers,
but they should all work towards a common goal under the direction of one main
person in charge of the whole thing.
6. Collective Interest Over Individual Interest

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 This principle states that the overall interest of the team should take precedence
over personal ones. The interest of the organization should not be sabotaged by the
interest of an individual. If anyone goes rogue, the organization will collapse.

7. Remuneration
This henry fayol principle of management states that employees should be paid fair
wages for the work that they carry out. Any organization that underpays its workers
will struggle to motivate and keep quality workers. This remuneration should
include both financial and non-financial incentives. Also, there should be a
structure in place to reward good performance to motivate employees.
8. Centralization
Centralization refers to the concentration of power in the hands of the authority
and following a top-bottom approach to management. In decentralization, this
authority is distributed to all levels of management. In a modern context, no
organization can be completely centralized or decentralized. Complete
centralization means that people at the bottom have no authority over their
responsibilities. Similarly, complete decentralization means that there will be no
superior authority to control the organization. To use this effectively today, there
should be a balance of centralization and decentralization. The degree to which this
balance is achieved will differ from organization to organization.

9. Scalar Chain
A scalar chain refers to a clear chain of communication between employees and
their superiors. Employees should know where they stand in the hierarchy of the
organization and who to go to in a chain of command. To implement this in the
workplace, Fayol suggests that there should be an organizational chart drawn out
for employees to see this structure clearly.
10. Order
This principle states that there should be an orderly placement of resources
(manpower, money, materials, etc.) in the right place at the right time. This ensures
the proper use of resources in a structured fashion. Misplacement of any of these
resources will lead to misuse and disorder in the organization.

11. Equity
Equity is a combination of kindness and justice. This principle states that managers
should use kindliness and justice towards everyone they manage. This creates
loyalty and devotion among the employees towards the organization they work for.
12. Stability of Tenure of Personnel

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 This principle states that an organization should work to minimize staff turnover
and maximize efficiency. Any new employee cannot be expected to get used to the
culture of an organization right away. They need to be given enough time to settle
into their jobs to become efficient. Both old and new employees should also be
ensured job security because instability can lead to inefficiency. There should also
be a clear and effective method to handle vacancies when they arise because it
takes time and expense to train new ones.

13. Initiative
This principle states that all employees should be encouraged to show initiative.
When employees have a say as to how best they can do their job, they feel
motivated and respected. Organizations should listen to the concerns of their
employees and encourage them to develop and carry out plans for improvement.
14. Esprit de Corps
Esprit de Corps means “Team Spirit”. This henry fayol principle of management
states that the management should strive to create unity, morale, and co-operation
among the employees. Team spirit is a great source of strength in the organization.
Happy and motivated employees are more likely to be productive and efficient.

4. Explain three ways of classifying managers.

Levels of Management:
The term Levels of Management refers to the line of division that exists
between various managerial positions in an organization. As the size of the
company and workforce increases, the number of levels in management increases
along with it, and vice versa. The different Levels of Management can determine
the chain of command within an organization, as well as the amount of authority
and typically decision-making influence accrued by all managerial positions.
Levels of Management can be generally classified into three principal categories,
all of which direct managers to perform different functions.
1. Administrative, Managerial, or Top Level of Management
This level of management consists of an organization’s board of directors and the
chief executive or managing director. It is the ultimate source of power and
authority, since it oversees the goals, policies, and procedures of a company. Their
main priority is on the strategic planning and execution of the overall business
success.

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 The roles and responsibilities of the top level of management can be summarized
as follows:
• Laying down the objectives and broad policies of the business enterprise.
• Issuing necessary instructions for the preparation of department-specific
budgets, schedules, procedures, etc.
• Preparing strategic plans and policies for the organization.
• Appointing the executives for middle-level management, i.e. departmental
managers.
• Establishing controls of all organizational departments.
• Since it consists of the Board of Directors, the top management level is also
responsible for communicating with the outside world and is held
accountable towards an organization’s shareholders for the performance of
the enterprise.
• Providing overall guidance, direction, and encouraging harmony and
collaboration.
2. Executive or Middle Level of Management
The branch and departmental managers form this middle management level. These
people are directly accountable to top management for the functioning of their
respective departments, devoting more time to organizational and directional
functions. For smaller organizations, there is often only one layer of middle
management, but larger enterprises can see senior and junior levels within this
middle section.

The roles and responsibilities of the middle level of management can be

summarized as follows:
• Executing the plans of the organization in accordance with the policies and
directives laid out by the top management level.
• Forming plans for the sub-units of the organization that they supervise.
• Participating in the hiring and training processes of lower-level
management.
• Interpreting and explaining the policies from top-level management to
lower-level management.
• Sending reports and data to top management in a timely and efficient
manner.
• Evaluating the performance of junior managers.
• Inspiring lower level managers towards improving their performance.

3. Supervisory, Operative, or Lower Level of Management

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 This level of management consists of supervisors, foremen, section officers,
superintendents, and all other executives whose work must do largely with HR
oversight and the direction of operative employees. Simply put, managers at the
lower level are primarily concerned with the execution and coordination of day-to-
day workflow that ensure completion of projects and that deliverables are met.

The roles and responsibilities of the lower level of management can be

summarized as follows:
• Assigning jobs and tasks to various workers.
• Guiding and instructing workers in day-to-day activities.
• Overseeing both the quality and quantity of production.
• Maintaining good relations within lower levels of the organization.
• Acting as mediators by communicating the problems, suggestions, and
recommendatory appeals, etc. of workers to the higher level of
management, and in turn elucidating higher-level goals and objectives to
workers.
• Helping to address and resolve the grievances of workers.
• Supervising and guiding their subordinates.
• Taking part in the hiring and training processes of their workers.
• Arranging the necessary materials, machines, tools, and resources, etc.
necessary for accomplishing organizational tasks.
• Preparing periodical reports regarding the performance of the workers.
• Upholding discipline, decorum, and harmony within the workplace.
• Improving the enterprise’s image as a whole, due to their direct contact
with the workers.
Levels of Management
An organization can have many different managers, across a variety of titles,
authority levels, and levels of the management hierarchy that we illustrated above.
In order to properly assign roles and responsibilities to all managerial positions, it
is important to recognize the key differences between low-level, middle-level, and
top-level management.

The key takeaways from this distinction are as follows:

• Top-level managers are responsible for controlling and overseeing the
entire organization.
• Middle-level managers are responsible for executing organizational plans
which comply with the company’s policies. They act as an intermediary
between top-level and low-level management.

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 • Low-level managers focus on the execution of tasks and deliverables,
serving as role models for the employees they supervise.
All businesses are comprised of a vast array of different managerial tasks. When
these are coordinated properly, and there is a strong hierarchal manager system in
place, an organization can be extremely efficient in creating value through the
production of their products, services and overall workflow.

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