Unit 1

⚫ Functions and Responsibilities of Managers, Fayol's

Principles of Management.
⚫ Management Thought -
⚫ The Classical School
⚫ The Human Relations School
⚫ Systems Theory
⚫ Contingency Management
⚫ Developing Excellent Managers.
⚫ Cross cultural issues in management.
⚫ The organization and coordination of the activities of a
business in order to achieve defined objectives.
⚫ Management (or managing) is the administration of
an organization) is the administration of an organization,
whether it is a business, a not-for-profit organization, or
government body.
⚫
Views on the definition and scope of
management

⚫ According to Henri Fayol, "to manage is to forecast and to

plan, to organise, to command, to co-ordinate and to control.“

⚫ Fredmund MalikFredmund Malik defines it as "the

transformation of resources into utility.“

⚫ Peter Drucker (1909–2005) saw the basic task of management

as twofold: marketing and innovation. Nevertheless, innovation
is also linked to marketing (product innovation is a central
strategic marketing issue).
Functions and
Responsibilities of Manager
POSDCoRB Functions
14 PRINCIPLES OF MANAGEMENT
-HENRI FAYOL
INTRODUCTION
❖A principle refers to a fundamental truth.
❖It establishes cause and effect relationship between
or more variables under given situation.
❖They serve as a guide to thought & actions.

These principles are derived: -

•On the basis of observation and analysis

•By conducting experimental studies

14 PRINCIPLES OF MANAGEMENT DESCRIBED
BY HENRI FAYOL

Initiative
Division of Labor

Authority & Responsibility Fair Remuneration

Principle of One Boss

Stability of Tenure

Unity of Direction ( same Goal)

Scalar Chain
Equity
Sub-Ordination of Individual Interest to
Order

General Interest
Discipline
DIVISION OF LABOUR
⚫ stressed on the specialization of jobs
⚫ work of all kinds must be divided and allotted to various
persons
⚫ simpler and results in efficiency
⚫ helps the individual in acquiring speed, accuracy in his
performance
⚫ Specialization leads to efficiency & economy in spheres of
business
Party of Authority & Responsibility
⚫ co-existing
⚫ Authority is given to a person, he should also be made
responsible.
⚫ He should also have concerned authority, if anyone is made
responsible.
⚫ Authority refers to the right of superiors. responsibility means
obligation for the performance of the job assigned.
⚫ Should be a balanced.
⚫ Authority- Responsibility = Irresponsible Behavior
⚫ Responsibility- Authority= Ineffective
Principle of One Boss
⚫ A sub-ordinate should receive orders and be accountable to only boss at
a time.
⚫ a sub-ordinate should not receive instructions from more than one
person
⚫ Dual sub-ordination should be avoided
⚫ The enterprise a disciplined, stable & orderly existence
⚫ Harmonious relationship between superiors and sub-ordinates
⚫ a sub-ordinate should not receive instructions from more than one
person
UNITY OF DIRECTION
⚫ One head one plan

⚫ Related activities should be grouped together

⚫ Efforts of all the members of the organization should be

directed towards common goal

⚫ Without unity of direction, unity of action cannot be achieved.

⚫ Unity of command is not possible without unity of direction.

Order

• Concerned with proper & systematic arrangement of

things and people.

• Arrangement of things is called material order

• Placement of people is called social order.

• Material order-should be safe, appropriate and specific place

for every article

• Social order-Selection and appointment of most suitable person

Discipline
⚫ Sincerity, Obedience, Respect of Authority & Observance of
Rules and Regulations of the Enterprise.
⚫ subordinate should respect their superiors and obey their order.
⚫ smooth running of the enterprise
⚫ subordinates but also on the part of management.
⚫ Discipline can be enforced if -
-Good superiors
- Clear & fair agreements with workers
- Sanctions are judiciously applied
INITIATIVE
⚫ Encouraged to take initiative in the work assigned to them

⚫ Initiate actions without being asked to do

⚫ Management should provide opportunity to its employees

⚫ Helps in developing an atmosphere of trust

⚫ Enjoy working in the organization because it adds to their zeal

and energy

⚫ Suggest improvement in formulation & implementation of

place
Fair Remuneration
⚫ Paid to the workers should be fair of the efforts
⚫ Satisfaction to both employer and the employees
⚫ Determined on the basis of cost of living, work assigned etc,
⚫ Provision of other benefits such as free education, medical &
residential facilities to workers
⚫ Management creates harmonious relationship and pleasing
atmosphere of work.
Stability of Tenure
⚫ Employees should not be moved frequently from one job
position to another
⚫ Once they are appointed their services should be served
⚫ Time is required for an employee to get used to a new
work –fayol
⚫ Money spent on training the worker will go waste
⚫ Stability of job creates team spirit& a sense of
belongingness among workers
-ultimately increase the quality as well as quantity of
work
Scalar Chain

⚫ The chain of superiors ranging from the ultimate authority

to the lowest
⚫ Every orders, instructions etc. has to pass through Scalar
chain.
⚫ For the sake of convenience & urgency, this path can be
cut this short cut -Gang Plank
⚫ Temporary arrangement between two different points to
facilitate quick & easy communication
⚫ Modified as per the requirements of situations.
Sub-Ordination of Individual Interest to
General Interest
⚫ An organization is much bigger than the individual
⚫ As far as possible, reconciliation should be achieved
between individual and group interests.
⚫ Case of conflict, individual must sacrifice for bigger
interests
⚫ In order to achieve this attitude
- Employees should be honest & sincere.
- Proper & regular supervision of work.
- Reconciliation of mutual differences
Espirit De’ Corps
⚫ It refers to team spirit
⚫ Inspires workers to work harder
⚫ Interest of the undertaking in the long run.
⚫ The managers should infuse team spirit & belongingness
Espirit De’ Corps following steps should be undertaken

▪proper co-ordination
▪should be encouraged to develop informal relations among themselves.
▪create enthusiasm and keenness among subordinates
▪employees should be rewarded
Centralization & De-Centralization
⚫ Centralization-concentration of authority at the top level
⚫ De-centralization-disposal of decision making authority to all the
levels of the organization
⚫ Increases the role of subordinate is decentralization & Decreases
the role of subordinate is centralization
⚫ It is not feasible, organization should strike to achieve a lot
between the two.