Chapter 2

Principles of Management

Ch 3 -1
 What is Management?

“Art and science of successfully pursuing desired

results with the resources available to the
organization”
Ch 3 -3
“Forward thinking about courses of action based on full
understanding of all the factors involved and directed
at specific goals and performance objectives”
 Types of Planning
1. Strategic planning
Long term planning
2. Tactical planning
Short term planning
3. Contingency planning
Alternative plans
Levels of Planning in the Business
Strategic level Tactical level Day-to-day level

Top management Middle Line employees

management
Very flexible Somewhat flexible Inflexible

Long-term Intermediate-term Immediate

Written analyses Written reports Unwritten

Complex, detailed Less details, outlined Simple

Broad General Very specific

 Planning Process
1. Gather facts
2. Analyze the facts
3. Forecast change
4. Set goals/performance
objectives
5. Develop alternatives
6. Evaluate results
“Systematic classification and grouping of human and other
resources in a manner that is consistent with firm’s goals”
 Organizing

Organizing
 Occurs continuously through out life
 Important at each level
 Manager’s challenge
 Establish accountability
 Prevent confusion
 Improve efficiency
 Reduce cost
 Organizing
Organizing involves
1. Setting up organizational structure
2. Determining organizational goals
3. Defining the lines of authority and responsibility
4. Establishing relationship within organization
 Organizing
 Organizational structure
Formal framework of a company
 Division of labor
Manner in which jobs are broken into components and
assigned to members
 Chain of command
Authority-responsibility relationship
Organizational structure of Aarzoo
textile Ltd.
Cont…

Ch 3 -14
Cont…

Ch 3 -15
 Leadership in Corporate Culture
• Leadership: The ability or authority to guide
and direct others toward achievement of a
goal

• Leadership styles influence organizational

behavior
 Six Leadership Styles
1. The coercive leader demands instantaneous
obedience and focuses on achievement,
initiative, and self-control. Although this style can
be very effective during times of crisis or during a
turnaround, it otherwise creates a negative
climate for organizational performance.
2. The authoritative leader—considered to be
one of the most effective styles—inspires
employees to follow a vision, facilitates change,
and creates a strongly positive performance
climate. Ch 3 -17
 Six Leadership Styles
3. The affiliative leader values people, their
emotions, and their needs and relies on
friendship and trust to promote flexibility,
innovation, and risk taking.

4. The democratic leader relies on participation

and teamwork to reach collaborative decisions.
This style focuses on communication and creates
a positive climate for achieving results.

Ch 3 -18
 Six Leadership Styles
5. The pacesetting leader can create a negative
climate because of the high standards that he or
she sets. This style works best for attaining quick
results from highly motivated individuals who
value achievement and take the initiative.

6. The coaching leader builds a positive climate

by developing skills to foster long-term success,
delegating responsibility, and skillfully issuing
challenging assignments.
Ch 3 -19
Ch 3 -20
Cont…

Ch 3 -21
Ch 3 -22
• Staffing 
– It is the process of hiring, positioning and
overseeing employees in an organization

Ch 3 -23
Ch 3 -24
 Controlling

“An information system that monitors plans and

processes to be sure that they are meeting
predetermined goals and sounds a warning when
necessary so that remedial action can be taken”
 Controlling
 Control process evaluate the progress being made
towards organizational goals
 Managers should measure performance and compare it
with standards and expectations
 Control is complementary to other tasks
 Control requires meaningful information and knowledge