Principles of

Management
 Management
 Is the process of designing and maintaining an
environment in which individuals, working together in
groups, efficiently accomplish selected aims.

 That is:

 As managers, people carry out the managerial

functions of planning, organizing, staffing, leading, and
controlling.
 Management…
 Management applies to any kind of organization
(government, non government, profit making, non
profit making).

 It applies to managers at all organizational levels.

 The aim of all managers is the same: to create a

surplus.

 Management is concerned with productivity; this

implies effectiveness and efficiency.
 Management…
Efficiency:

 The ability to do things right.

 The ability to minimize the use of resources in

achieving organizational objectives.

 That is getting work done with a minimum of effort,

expense, or waste.
 Management…
Effectiveness:

 The ability to do the right thing.

 Choosing right goals.

 The ability to determine appropriate objectives.

 That is accomplishing tasks that help fulfill

organizational objectives such as customer service
and satisfaction.
 Organization
 Two or more people who work together in a
structured way to achieve a specific goal or set of
goals.

 The purpose that an organization strives to achieve

often have more than one goal.

 Goals are fundamental elements of organizations, a

reason for existence.

 Eg: Government, Non governmental organizations,

political organizations, etc.
 Functions of Management
 The concepts, principles, theory, and techniques of
management are grouped into five functions,

 Planning

 Organizing

 Staffing

 Leading

 Controlling.
 Functions of Management…
Planning:

 It involves selecting mission and objectives and the

actions to achieve them.

 That is choosing future course of action from among

alternatives.

 Plans guide managers in the use of resources to

accomplish specific goals.
 Functions of Management…
Organizing:

 It is a process of engaging two or more people

working together in a structured way to achieve a
specific goals or set of goals.

 That is it involves establishing an intentional structure

of roles for people to fill in an organization.
 Functions of Management…
Staffing:

 It involves filling, and keeping filled, the positions in

the organization structure.

 That is identifying work force requirements,

inventorying the people available,

 and recruiting, selecting, placing, promoting, appraising,

planning the careers of, compensating, and training.
 Functions of Management…
Leading:

 It is influencing people so that they will contribute to

organization and group goals.

 It is understandable that leading involves motivation,

leadership styles and approaches and communication.

 Functions of Management…
Controlling:

 It is measuring and correcting individual and

organizational performance to ensure that events
conform to plans.

 That is controlling facilitates the accomplishment of

plans.

 Thus outcomes are controlled by controlling what

people do.
The Interactive Nature of Management Process
PLANNING
Managers use logic
and methods to think
through goals and
actions ORGANIZING
CONTROLLING Managers arrange
Managers make sure and allocate work,
an organisation is authority and
moving towards resources to achieve
organisational goals. organizational goals
LEADING
Managers direct,
influence and
motivate employees
to perform essential
tasks.
 Who is a Manager?
 Managers are responsible for the processes of getting
activities completed efficiently with and through
other people and

 setting and achieving the firm’s goals through the

execution of four basic management functions,

 planning, organizing, leading, and controlling.

Managerial Levels

Top Level
Managers

Middle Level
Managers

First Level (First Line)

Supervisors / Managers
 First Level (First Line) Managers
 First level or lower level is also known as supervisory
or operative level of management.
 These managers who are responsible for the work of
operating employees only and will not supervise
other managers.
 They are concerned with direction and controlling
function of management.
 Like assigning of jobs and tasks to various workers
etc.
 Eg: Foreman, supervisors, section officers etc.
 First Level (First Line) Managers…
 Guide and instruct workers for day to day activities.

 Are responsible for the quality as well as quantity of

production.

 Are also entrusted with the responsibility of

maintaining good relation in the organization.

 They communicate workers problems and give

suggestions and recommendations to the higher level.

 Help to solve the grievances of the workers.

 Middle Level Managers
 Are in the midrange of the organizational hierarchy and
will be the heads of various departments.

 They are responsible and direct the activities of lower

level managers and also report to more senior
managers.

 Devote more time to organizational and directional

functions.

 Execute the plans of the organization in accordance

with the policies and directives of the top management.

 Interpret and explain policies from top level

management to lower level.
 Middle Level Managers…
 They participate in the training of lower level
management.

 Are responsible for coordinating the activities within

the department.

 They also sends important reports and other

important data to top level management.

 They evaluate performance of junior managers.

 Are also responsible for inspiring lower level

managers towards better performance.
 Top Level Managers
 Managers responsible for the overall management of
the organization.

 They are the ultimate source of authority and

manages goals and policies for an enterprise.

 Devotes more time on planning and coordinating

functions.

 They lays down the objectives and broad policies of

the enterprise.
 Top Level Managers…
 They issues necessary instructions for preparation of
department budgets, procedures, schedules etc.

 Controls and coordinates the activities of all the

departments.

 They are also responsible for maintaining a contact

with the outside world.

 They provides guidance and direction.

 Thus the top management are responsible for the

overall performance of the enterprise.
 Managerial Roles
 According to Henry Mintzberg, managers fulfil three
major roles while performing their jobs.That is,

 Interpersonal Roles

 Informational Roles

 Decisional Roles.

 That is managers talk to people, gather information

and make decision.
Ten Managerial Roles by Mintzberg
Interpersonal Roles

1. The figure head role (ceremonial duties like greeting

company visitors, representing the company at an
event etc.) (symbol)

2. The leader role (motivating and encouraging

workers) (lead)

3. The liaison role (communicate with outsiders)

(liaison)
Ten Managerial Roles by Mintzberg…
Informational Roles

1. The monitor role (scan their environment for

information) (monitor)

2. The disseminator role (passing information to

subordinates and others) (share information)

3. The spokesperson role (sharing information with

people outside the department and organization)
(spokesperson)
Ten Managerial Roles by Mintzberg…
Decision Roles

1. The entrepreneurial role (adapt themselves, their

subordinates, and their units to change) (Initiative)

2. The disturbance handler role (respond to pressures

and problems) (Handle Disagreements)

3. The resource allocator role (allocate resources)

4. The negotiator role (negotiate)

 Managerial Levels and Skills
Conceptual
Top Level and Design
Managers Skills

Middle Level
Human
Managers
Skills

First Level
Managers Technical
Skills
 Technical Skills
 The ability to use procedures, techniques and
knowledge of a specialized field.
 Surgeons, engineers, musicians and accountants all
have technical skill in their respective fields.
 Technical skills are of greatest importance at the
supervisory level.
 For middle level managers, the need for technical
skills decreases.
 There is relatively little need for technical abilities for
top level management.
 Human Skills
 The ability to work with, understand, and motivate
other people as individuals or in groups.

 Cooperative effort, team work, secure environment

creation for people to express opinions, etc.

 Human skills are not that much necessary for first

level but it is helpful for the supervisors to interact
with their subordinates.

 Human skills are essential for the middle and top level
managers.
 Conceptual and Design Skills
 The ability to coordinate and integrate all of an
organization's interest and activities.

 Anticipating how a change in any of its parts will

affect the whole.

 The conceptual and design skills are not critical for

lower level supervisors.

 But in the middle and top level it gain in importance.

 Management as a Science or Art
 Management is science because of several reasons,

 it has universally accepted principles,

 it has cause and effect relationship, etc., and

 at the same time it is art as it requires perfection

through practice,

 practical knowledge, creativity, personal skills, etc.

 That is Management is both art and science.

 Management as a Science or Art…
 Artistic application of management know-
how/knowledge is a must for solving complex
situations in organizations.

 It is understood that managing is doing things

artistically in the light of the realities of a situation.

 Human skills cannot stand alone; they need to be

aligned with conceptual skills and technical skills.

 Therefore, theoretical knowledge of management is

not adequate or relevant for solving problems.
 Management as a Science or Art…
 A manager gains experience by continual application

of management knowledge and facing new

experiences.

 By solving many problems, a manager develops skills

for translating knowledge into practice.

 Management as a Profession
 Profession can be defined as an occupation backed by
specialized knowledge and training, in which entry is
restricted.

 In the case of management there is availability of

systematic body of knowledge.

 Scholars are studying various business situations and

are trying to develop new principles to tackle these
situations.
 Management as a Profession…
 The entry to a profession is restricted through an
examination or degree.
 Nowadays many companies prefer to appoint
managers only with MBA degree.
 For all the professions, special associations are
established and every professional has to get
himself/herself registered with his/her association
before practicing that profession.
 But legally it is not compulsory for managers to
become a part of any organizations by registration.
 Management as a Profession…
 For every profession there are set of ethical codes
fixed by professional organizations and are binding on
all the professionals of that profession.

 But legally it is not compulsory for all the managers

to get registered with any of the professional
management organizations and abide by the ethical
codes.
 Management as a Profession…
 From the above points, it is clear that management is
not a full fledged profession.That is:
 It does not restrict the entry in managerial jobs for
account of one standard or other.
 No minimum qualifications have been prescribed for
managers.
 No management association has the authority to
grant a certificate of practice to various managers.
 Competent education and training facilities do not
exist.
 Management as a Profession…
 Managers are responsible to many groups such as
shareholders, employees and society.

 A regulatory code may curtail their freedom.

 Managers are known by their performance and not

mere degrees.

 The ultimate goal of business is to maximize profit

and not social welfare.
 Functional Areas of Management
 There are five main functional areas of management,
that is:

 Human resource management,

 Marketing management,

 Finance management

 Operations management and

 ICT management.
Evolution of Management Thought
 The industrial revolution that took place in the 18th
century had a significant impact on management as a
whole.
 It changed how businesses, as well as individuals,
raised capital, organize labor and the production of
goods.
 Entrepreneurs had access to all the factors of
production such as land, labor, and capital.
 This tempted them to make an effort to combine
these factors to achieve a targeted goal successfully.
 Evolution of Management Thought…
 The evolution of modern management began in the
late nineteenth century, after the industrial
revolution.

 Mechanization changed systems like crafts production

into large scale manufacturing.

 Certain pioneers tried to challenge the traditional

character of management by introducing new ideas
and character of management by introducing new
ideas and approaches.
 References
 Koontz, H., & Weihrich, H. Essentials of Management, McGraw Hill Publishers.

 Williams. Management, (International edition) South-western Cengage Learning.

 Stoner, Freeman, Gilbert Jr. (2014). Management (6th edition), New Delhi: Prentice
Hall India.

 Daft, R. L. (2009). Principles of Management (1st edition), Cengage Learning.

 Gupta, R.S., Sharma, B.D., & Bhalla. N.S. (2011). Principles & Practices of Management
(11th edition). New Delhi: Kalyani Publishers.

 John R. Schermerhorn. Management,Wiley-India

 L M Prasad, (2007). Principles and Practices of Management, Himalaya Publishing

House

 Rao, P.S. (2009). Principles of Management, Himalaya Publishing House.

 Moshal, B.S. Principles of Management,Ane Books.

Thank You…

Dr. Ajai Krishnan G