MANAGEMENT PRINCIPLES

INTRODUCTION
DEFINITION OF MANAGEMENT

Harold Koontz and Heinz Weihrich

define management as “the process
of designing and maintaining an
environment in which individuals,
working together in groups,
efficiently accomplish selected
aims.”
DEFINITION OF MANAGEMENT
• Louis E. Boone and David L. Kurtz
define management as “the use of
people and other resources to
accomplish objectives.”

• Mary Parker Follet termed

management as “the act of getting
things done through people.”
 NATURE OF MANAGEMENT
1. Managers carry out the functions of planning,
organizing, staffing, leading and controlling.
Every manager performs these basic functions.

2. Management is essential to any kind of

organization: Wherever there are groups of
people working together to achieve some common
objectives, it becomes essential to guide, organize
and control them.

3. The term ‘management’ applies to any

organization irrespective of the size or nature of
operations. Universality of Management Concept.
 NATURE OF MANAGEMENT
4. Management is essential at all hierarchical levels: Management is
necessary at all levels. However, the type of skills and the degree
to   which various skills are required at different levels of the
hierarchy may vary.

5. The aim of managers is the same: to create a surplus.

6. Managing is concerned with productivity, that implies

effectiveness and efficiency.

7. Managers require understanding regarding internal environment

and external environment.

8 Management is a continuous process.

9. Management is a universal process.
10. Management is purposeful
• EFFECTIVENESS: Accomplishment
of selected aims.

• EFFICIENCY: Accomplishment of
aims with the least amount of
resources.
 Productivity
• It can be defined as the output-input ratio within
a time period with due consideration for quality.
• INTERNAL ENVIRONMENT – Selected
objectives, goals, mission, technology,
equipment, tools, materials, accepted
orders, staff, training, reward systems,
recognition and discipline systems,
communication systems.

• EXTERNAL ENVIRONMENT– Society,

Government, Physical Environment,
Customers, Suppliers.
MANAGEMENT FUNCTIONS
 PLANNING
• Planning involves selecting missions
and objectives as well as the actions
to achieve them.

• Planning involves decision making.

• The decisions require commitment

of resources – human and material.
 ORGANIZING
• Planning identifies and prescribes actions to
achieve the objectives of the organization.

• These actions have to be split into tasks that

can be accomplished by equipment and man
combinations.

• The men have to be grouped and managers

have to be assigned to groups to help the
operators with daily plans, training, material
flow, coordination with other groups etc.
 STAFFING
• Staffing involves filling, and keeping filled,
the positions in the organization.

• This is done by identifying workforce

requirements, inventorying the people
available, and recruiting, selecting,
placing, promoting, appraising, planning
the careers of, compensating, and training
or otherwise developing recruits and job
holders.
 LEADING
• Leading is influencing people so that they will
contribute to organizational and group goals.

• Leadership is interpersonal aspect of

managing.

• Leader needs followers.

• People tend to follow those who offer means of

satisfying their own needs, wishes and desires.

• Leading involves concepts and processes of

motivation, leadership styles, and
communication.
 CONTROLLING
• Controlling is observing and
correcting actions to make sure that
they follow designed processes and
measuring and
correcting individual and
organizational performance to
ensure that events conform to plans.
Coordination-The Essence of Managership

• Some authorities consider

coordination to be an additional
function of management.

• Each managerial functions is an

exercise contributing to coordination.
 LEVELS OF MANAGEMENT
• It is a normal practice to categorize
management into three basic levels: (1) top-level
management, (2) middle-level management,
and (3) supervisory or first-level management.

• The duties and responsibilities at these three

levels of management vary from organization to
organization, depending upon the size,
technology, culture, etc. prevailing in the
organization.

• The number of managerial positions at each

level varies from organization to organization.
LEVELS OF MANAGEMENT
• In most of the organizations, there are
more positions at the first-level, fewer
in the middle, and very few at the top.
Many describe this kind of an
organizational structure as a pyramid,
as the managerial positions gradually
decline as one progresses towards the
higher levels of management.
LEVELS OF MANAGEMENT
Management Functions & Levels of Mgmt.
 Top Management / Top-Level Managers

• Develops and reviews long-range plans and

strategies.

• Evaluates overall performance of various

departments and ensures cooperation.

• Involved in selection of key personnel.

• Consults subordinate managers on subjects or

problems of general scope.
 Middle Management / Middle Level
Managers
• Makes plans of intermediate-range and prepares long-
range plans for review by top management.

• Analyzes managerial performance to determine

capability and readiness for promotion.

• Establishes departmental policies.

• Reviews daily and weekly reports on production or

sales. Counsels subordinates on production, personnel
or other problems.
•  Selects and recruits personnel.
 First Level Management / Supervisory
Management
• Makes detailed, short-range operational plans.

• Reviews performance of subordinates.

• Supervises day-to-day operations.

• Makes specific task assignments.

• Maintains close contact with employees involved in

operations.
MANAGEMENT SKILLS AND
ORGANIZATIONAL HIERARCHY
• Managers need certain skills to perform the
functions associated with their jobs.

• During the early 1970s, Robert K. Kalz identified

three kinds of skills for administrators.

• These are technical, human and conceptual skills.

A fourth skill – the ability to design solutions –
was later added to the above mentioned skills.
 Technical Skills
• Technical skills refer to the ability of a person to carry
out a specific activity. In order to do so, one needs to
have knowledge of methods, processes and
procedures.

• Engineers, computer specialists, accountants and

employees in manufacturing departments all have the
necessary technical skills for their specialized fields.
Technical Skills
• Technical skills are essential for first-level
managers. For example, employees at the
operational level work with tools, and their
supervisors must be able to teach them how to
perform the tasks assigned to them using these
tools.

• First-level managers spend much of their time in

training subordinates and clarifying doubts in
work-related problems.
 Human Skills

• Human skills or interpersonal skills refer to the

ability of a person to work people, it is cooperative
effort, it is team work.

• It is the ability to lead, motivate, and communicate

with people to accomplish certain objectives.

• Human skills are of paramount importance in the

creation of an environment, in which people feel
comfortable and are free to voice their opinions.
Human Skills
• These skills aid employees during interaction
with their supervisors, peers and people outside
the work unit such as suppliers, customers and
the general public.

• These skills are important for all levels in the

organization.
Conceptual Skills
• Conceptual skills refer to the ability of a person to
think and conceptualize abstract situations. It is
the ability to understand and coordinate the full
range of corporate objectives and activities.

• These skills are most important at the top

management level, as top-level managers have the
greatest need to see the “big picture,” to
understand how the various parts of the
organization relate to one another and associate
the organization with the external environment.
 Design Skills
• Design skills refer to the ability of a person to find
solutions to problems in ways that would benefit the
organization.

• Top managers should not only recognize a problem

but also suggest ways to overcome them. If they only
see the problem, they become mere “problem
watchers,” and will prove ineffective.

• Managers at upper organizational levels should be

able to design a rational and feasible solution to the
problem by considering the various internal and
external factors.
 MANAGEMENT AS AN ART
• Management as a practice is an Art; the
organized knowledge underlying the practice is a
Science.

• Art involves the practical application of personal

skills and knowledge to achieve concrete results.

• It is the practical way of doing specific things.

 MANAGEMENT AS AN ART
• The main elements of an Art are:

1. Personal skills
2. Practical know-how
3. Result-oriented
4. Creativity
5. Constant practice aimed at perfection
 MANAGEMENT AS AN ART
• Management can be considered as an Art
due to the following reasons:
1. Manager applies his knowledge and skills to
coordinate the efforts of his people.
2. Management seeks to achieve concrete results.
3. Management is a creative process.
4. Management is a personalized process.
5. Effective management leads to achievement of
organizational goals.
 MANAGEMENT AS A SCIENCE
• The essential elements of Science are:
1. Science is a systematic body of knowledge
pertaining to a particular field of enquiry.
2. It contains underlying principles and theories
developed through continuous observation,
experimentation and research.
3. The principles have universal applicability.
4. The organized knowledge can be taught and learnt
in the classroom and outside.
 MANAGEMENT AS A PROFESSION
• Management is also considered as a profession
because a profession has to fulfill the following
conditions:
1. A well-defined and organized body of knowledge
2. Learning and experience
3. Entry restricted by qualifications
4. Recognized national body
5. Ethical code of conduct
6. Dominance of service motive
 MANAGEMENT Vs ADMINISTRATION
• There has been a controversy on the use of
these two terms.

• Many experts make no distinction between

these two terms and consider them as
similar.

• A few experts treat administration as a part

of Management.

• Where as some experts consider them as two

different functions.
 MANAGEMENT & ADMINISTRATION ARE TWO DISTINCT
FUNCTIONS
• Administration is the function in industry concerned
with the determination (formation) of corporate
policy, coordination of production and distribution,
and ultimate control of the executive.

• Whereas Management is the function in industry

concerned with the execution/implementation of
policy within the limits set up by administration and it
includes the managing the organization for attaining
particular objectives.
• Administration defines the goals, mgmt. strives
towards it.

• This view is held by eminent American Experts.

 ADMINISTRATION IS A PART OF MANAGEMENT

• The European School of thought holds that

management is a comprehensive term and
administration is a part of it.

• According to Brech, Management is the generic term

for the total process of executive control involving
responsibility for effective planning and guidance of
the operations of an enterprise.

• Administration is that part of management which is

concerned with the installation and implementation of
the procedures and communication as well as
progress of activities is regulated and checked against
plans.
ADMINISTRATION IS A PART OF MANAGEMENT
• Kimball, Copen and Richman also hold similar
views. In their opinion, management comprises
of both policy making and execution.

• Administration is that part of management which

involves doing routine things in a known setting.

• Thus, the European viewpoint is exactly opposite

to the American viewpoint.
 ADMINISTRATION AND MANAGEMENT
ARE ONE
• Henri Fayol, Harold Koontz, Cyril O,Donnell and
many others make no distinction between the two.

• According to them, administration or management is

“the guidance, leadership and control of the efforts of
a group of individuals towards some common goals”.

• The distinction between the two is meaningless. In

practice, the two terms can be used interchangeably
because both involve the same principles and
functions.

• Somehow, the word ‘management’ is more popular in

business and the word ‘administration’ is preferred in
Govt. departments.
THANK YOU