INTRODUCTION Definition of Management

 Management as an area that consists of getting things done through others. A manager is one, which accomplishes the group objectives by directing the efforts of others. Koontz

 Management as the art of directing human activities. Management is treated as the art and science of making decisions. It is the process of relating resources to goal accomplishment. Urwick

 “Management was a common activity to all human beings who involve in organization”  "Management principles are fundamental truth of general validity." Many other views on management exist in literature some are:  It is the process of getting things done well-performance, productivity and profitability wise.  It is the art of coordinating resources: men, machine, material, money, market, information and even knowledge.  It is the process of planning organizing, staffing, leading and influencing people, and controlling.  It is the art and science of organizing and directing human efforts applied to control forces and utilize the material of nature for the benefits of mankind.  Management is the complex of continuously coordinated activity by means of which any undertaking or any administration or any other service, public or private, conducts its business.  Management is the process or form of work that involves the guidance or direction of a group of people toward organization goals or objectives. O' Donnell Fayol

 Thus.  Organization is established to fulfill production-related and economic goals. In general. Principle of Management Introduction: Principles of Management: An Analysis of Managerial Functions clearly described the principles to be used in performing various functions of management. Fundamental Assumptions for Developing Principles:  Organization and individuals behave in conformity with rational economic principles. Managers have to set in a procedure to revise these principles periodically so that they can recollect the relevant principles when performing the managerial tasks and explicitly consider the relevance and application of these principles in their practice. management is the process of effective accomplishment of tasks through others.  The group of individuals who make decisions about how a business is run.  One best way to organize production is through systematic and scientific investigations. Many of us use them implicitly. managers should ignore the principles consciously and be clear in their mind they chose not to use them due to the exceptional nature of the situation. there is no single definition of management.  The initiation and maintenance of an investment portfolio." Herbert G. But a professionally educated and trained manager must use them explicitly. Hicks  Principles of management are fundamental rules of management that could be taught in schools and applied in all organizational situations. He has to ensure that these principles are applied and if any exceptional situation is there. . Harold Koontz and Cyril O’Donnell Definition: "Principles of management are the guiding rules of laws for managerial action.

 To organize . He died in Paris in 1925.Binding together.  To control .Paris .19 November 1925. both material and human. He was one of the most influential contributors to modern concepts of management.Seeing that everything occurs in conformity with established rule and expressed command. of the undertaking. He was born in Istanbul.  Planning . (Forecast & Plan).Five Elements: Fayol's definition of management roles and actions distinguishes between five elements Purveyance. and he was worked as the managing director of a big French mining company named as Compagnie de Commentry-Fourchambeau-Decazeville for the last 30 years of his working life (1888 . He proposed that there were six primary functions of management and 14 principles of management . Fayol's work was one of the first comprehensive statements of a general theory of management.  To command . The elements of strategy.Build up the structure. The Need for Principles of Management:  To Increase Efficiency  To Crystallize the Nature of Management  To Improve Research  To Attain Social Goals Henri Fayol: Henri Fayol was a French mining engineer and director of mines who developed a general theory of business administration.Maintain the activity among the personnel. 29 July 1841.What should be done and in what time frame.1918). unifying and harmonizing all activity and effort.  To coordinate . Examining the future and drawing up a plan of action.

behavior. which is apart from sanction . application. being the outcome of different varying agreements. Foyal’s 14 principles as the General Principles Management: 1. Division of work: This principle is basically the same with Adam Smith’s “Division of Labour” which means “specialization“.reward or penalty – which goes with the exercise of power. Discipline: Discipline. 2. and wheresoever’s authority is exercised responsibility arises. vary. authority is not to be conceived of apart from responsibility. obligations of obedience. energy. legitimate power. Authority and Responsibility: Authority is the right to give orders and the power to exact obedience. general opinion is deeply convinced that discipline is absolutely essential for the smooth running of business and that . it is its natural consequence and essential counterpart. 3. According to Fayol. naturally appears under the most diverse forms. According to Fayol. Nevertheless. referent power and expert power). social psychologists John French and Bertam Raven. defined five sources of power as: coercive power. from one group of employees to another. Responsibility is a corollary of authority. (Note: Later in 1959. the object of division of work is to produce more and better work with the same effort. in effect from one firm to another. from one time to another. Distinction must be made between a manager’s official authority deriving from office and personal authority.Functions of Management:  Forecasting  Planning  Organizing  Commanding  Coordinating  Monitoring (French: controller: in the sense that a manager must receive feedback about a process in order to make necessary adjustments). reward power.

that the interest of the home should come before that of its members and that interest of the state should have pride of place over that of one citizen or group of citizens. authority is undermined. Fayol also mentioned about bonuses and profit-sharing and non-financial incentives. order distributed and stability threatened. Three modes of payment in use for workers are: Time rates. it is a matter of finding the optimum degree for the particular concern. Centralization: Everything which goes to increase the importance of the subordinate’s role is decentralization. The question of centralization or decentralization is a simple question of proportion. objectives and strategies so that the organizations align and go in the same direction). Unity of direction: One head and one plan for a group of activities having the same objective. The degree of centralization must vary according to different cases: If the moral worth of the manager. everything which goes to reduce it is centralization. job rates and piece rates. Subordination of individual interest to the general interest: This principle calls to mind the fact that in a business the interest of one employee or group of employees should not prevail over that of the concern. 4. (Note: matrix organizations are in contrast to Fayol’s unity of command principle). (Note: Organizations write and announce vision and mission statements. afford satisfaction both to personnel and firm (employee and employer). Remuneration (payment/compensation) of personnel: Remuneration of personnel is the price of the services rendered. 5. 8. (Note: What about the “invisible hand” concept of Adam Smith?) 7.without discipline no enterprise could prosper. Unity of command: These principles emphasize that an employee should receive orders from one superior only. his strength. as far as is possible. experience and swiftness of thought allow him to have a wide span of activities he will be able to . It should be fair and. discipline is in jeopardy. 6. intelligence. Fayol says that if it is violated.

Order: Fayol defines the formula for order as “a place for everyone and everyone in his place”. If conversely. which means everything must be in its appointed place and social order. Please follow the link for a visual representation of Adams theory) 12. John Stacey Adams. 11. 9. he is removed. he prefers to have greater recourse to the experience of his colleagues whilst reserving himself the privilege of giving central directives. Stability of tenure of personnel: Time is required for an employee to get used to new work and succeed in doing it well. always assuming that he possesses the requisite abilities.carry centralization. If this be repeated indefinitely the work will never by properly done. he can effect considerable decentralization. Social order demands precise knowledge of the human requirements and resources of the concern and a constant balance between these requirements and resources. which presupposes the most successful execution of the two most difficult managerial activities: good organization and good selection. (behavioral psychologist) asserted that employees seek to maintain equity between the inputs that they bring to a job and the outcomes that they receive from it against the perceived inputs and outcomes of others in 1963. He classifies two types of order as material order. or before then. (Note: In motivation theories of organizational behaviour equity is important. Equity: Desire for equity and equality of treatment are aspirations to be taken into account in dealing with employees. he will not have had time to render worthwhile service. If when he has got used to it. . Scalar Chain (line of authority): The scalar chain is the chain of superiors from the ultimate authority to the lowest ranks. 10.

Observing and study of the problem: Researchers in management observe the problems carefully in different situations and from different angles. (b) the abuse of written communications. by respect for authority and for discipline. magnitude. Instability of tenure is at one and the same time cause and effect of bad running. that of unsuccessful ones is unstable. stability of tenure and personnel is also a question of proportion.  Making hypothesis.  Conclusion and forecasting. In common with all the other principles. The principle to be observed is unity of command. therefore. Esprit de corps: Means “Union is strength“. The manager must be able to sacrifice some personal vanity in order to grant this sort of satisfaction to subordinates. Harmony. They have to study deeply the problem. 14. there is gain in speed.  Choice of the problem or opportunity. a. clarity and harmony. b. Steps to Derive Principles:  Observation and study of the problem. its causes.Generally the managerial personnel of prosperous concerns is stable. Wherever possible. the dangers to be avoided are (a) a misguided interpretation of the motto “divide and rule”. contacts should be verbal. Initiative: Much tact and some integrity are required to inspire and maintain everyone’s initiative.  Testing the principles. Personnel must not be split up. . within the limits imposed. consequences and find their solutions. Dividing enemy forces to weaken them is clever. but dividing one’s own team is a grave sin against the business. union among the personnel of a concern. is great strength in that concern. Abuse of written communications. 13.

These principles are applied in the real situations of managing business enterprises and achieving handsome results. needs and perceptions. because management is a social science and thus a victim of the nearness of social sciences. Invention and improvement of theories in every discipline is a continuous process. there will be more output. . These principles are being satisfactorily applied but we cannot say that we have attained the perfection stage. observation and enquiry. as wages are paid according to piece-rate system. under assumed situation what is expected to happen. because they have gone individually different socio-economic status. the management principles are not as exact as principles of physical sciences. For example. Making Hypothesis: On the basis of observation and the data collection a hypothesis is formed. Choice of the Problem or Opportunity: The researchers in management science identify the area where general principles of business management are lacking or need modification. The existing management principles are satisfactorily effective in understanding the complex management problems. Secondly.Testing the Principles: The principles formed must be scientifically tested and verified. it deals with the complex problems about which to little is known. Before generalization of the principles testing under different situations is a must. Conclusion and Forecasting: The next step will be to reach the logical conclusion and predict the specific happenings under assumed situations. Thus. It deals with the human beings whose behaviors are always unpredictable. though a lot of principles have been derived out of experiments.

planning.e. All organizations such as social. cultural or even religious organizations apply for the successful operations of their activities. management principles are not as exact as the principles of physical science. management principles aim at influencing individual . Flexibility: Management principles are dynamic guidelines and not static rules. Every organization must make the best possible use of its available resources by the application of management principles i. where the objectives are attained through group efforts. skill. General Statement: Management principles are concerned mostly with human behavior which cannot be tested under controlled conditions i. so the principle of management is always flexible. The business situation and its socio-economic environment is enough to suit the size. attitudes and ideologies. organizing. political.NATURE/ CHARACTERISTICS FEATURES OF PRINCIPLES OF MANAGEMENT Nature of management principles stands for special features or characteristics of management principles. It activities and extracts work form other factor also. Following are the important features of the management principles: Universal application: Principles of management are applied in every situation. Every worker is individually different from the other workers as regards his ability.. a laboratory. Human behavior is always unpredictable. staffing. so. Management is concerned with the integration of individual efforts and how to decentralize them towards achieving the desired results.e. knowledge. the management principles are merely statements. In this way. So. needs and situations of the business. management principles is said to be a work and group activity. Thus. Management helps the business in multiplying its profit at minimum cost. nature. socio-economic status.. directing and controlling effectively and achieve the desired result. It influences human behavior: Human element is an essential factor of production. Improvement and modification of management principles is a continuing process.

It indicates the consequences of its principles. Decision . Thus these principles should be according to organizational needs and situations. In the same way. and most suitable techniques of production applied. not absolute. If the principles of unity of command is adopted. In this way. indicate the relationship between principles. Cause and Effect Relationship: The management principles also form cause and effect relationship. for instance if wages are paid on the basis of piece-rate system the quantity of work will be more. So.Making: Management in always concerned with decision making factors of production are scarce and they also have alternative uses. management principles are therefore the basis of decision making. other principles also. the confusion. . because there principles are relative. but the quality will suffer. Careful and Discreet Application: Principles of management cannot be applied blindly. their consequences and results. In this way all the principles of management are equally important.efforts and directing them to the minimization of profit with the minimum wattage and the best possible utilization of available resources. management has to decide the best possible combination of available resources. duplication and overlapping will be avoided. We cannot say the principles of unity of command are more important than the principle of unity of direction. Equal Importance: There is no inferiority or superiority between the principles no one principle has greater significance than the other.

It Directs the Areas of Training: The principles of management identify the present and prospective areas of management. Significance of Management Principles: It increases the efficiency of the management:Principles of management provides guidelines to the manager for handling complex problems more effectively. Business situations are themselves difficult and . It helps in Achieving Social Objective: Management develops spirit of co-operation and co-ordination among workers and their employees. These days. It eliminates unnecessary wastage of resources. They simplify the process of management. In this regard. Thus the efficiency of the management is increased and the manager adopts systematic and scientific approach towards the solution of the problem. the management must supply commodities at fair price. managing the enterprise and incur wastage of resources. For this managers should be specially trained. increase the overall efficiency and help in achieving the desired objective of the business.MANAGEMENT PRINCIPLES AND ITS IMPORTANCE Principles of management are very important for the successful management of organisation in its real situations. It also facilitates managers in performing this duties smoothly. These principles point out the areas where management should concentrate immediate attention. It Generates Sound Understanding: The management principles generate sound understanding of the difficult problems of business enterprises. principles of management are directed at maximum profit without loss of social values. not including the adulteration and make payment of reasonable wages to their workers. The management applies scientific approach for the solution of the complex problem. It also helps in the optimum utilization of social resources. These are important guidelines to the management. Thus.

the principles of management make significance in finding the areas and impart requisite training program to their executives. there are some limitations and arguments on certain elements of his proposed principles. In order to make management meaningful and practical utility. . socializing around instead of concentrating in their own jobs. if necessary TEN MANAGERIAL ROLES Interpersonal Roles  The Figurehead Role (Performing ceremonial and social duties as the organization’s representative)  The Leader Role  The Liaison Role (Communicating. It Guides to Research Work in Management: The management principles needed to make guidelines which requires necessary modifications with the changing situations. employees express their frustrations and boredom by taking the days off. political and economic situations. The argument is that job can become too specialized. and ignoring quality of works. At last. So. jobs into specialized and repetitive tasks in order to make them as simple as possible. efficiency declines. Particularly With Outsiders) Informational Roles  The Recipient Role (Receiving information about the operation of an enterprise)  The Disseminator Role (Passing information to subordinates)  The Spokesperson Role (Transmitting information to those outside the organisation) Decisions Roles  The entrepreneurial Role  The Disturbance Handier Role  The Resource Allocator Role  The Negotiator Role (Dealing with various persons and groups of persons) Conclusion Nevertheless. researchers examine these principles justify this utility and suggest various modification. For example.they change considerably with the change in social. Division of work / specialization. When this happens. which means dividing.

Organization theory and design. ISBN 9780256087789  Fayol. controle. 29.96. p. 2003. ISBN 9780314696458 Authors  Henri Fayol  Harold Koontz  Cyril O’Donnell  Dr. Pinat. organisation... Dunod et E. McGraw-Hill. Hill . coordination. Nath. Routledge. 1959  A B C Morgen Witzel (2003). Administration industrielle et générale. New York. Henri (1917) (in French). West Pub. ISBN 0415369770p. Veekay K. Richard L (1983). commandement. Paris. Organization theory : a strategic approach.References  Harold Koontz and Cyril O’Donnell. Raghu (1993). cop. Irwin. prévoyance. Fifty key figures in management.  Narayanan. Principles of Management: An Analysis of Managerial Functions. H. L. Co. Peeling's  Jeff Blackwell's  Charles W. OCLC 40224931  Daft. The West series in management. 2nd Ed.

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