Principles of Management

ASHIS KUMAR PRADHAN,

HUMANITIES AND SOCIAL SC
IENCES,
MANIT, BHOPAL

Wednesday, August 12, 2020

 For topic 1 and 2
2

⚫ We will understand what is the meaning of or what is the ‘job of

managing’ ?
⚫ Management as a process
⚫ Features of management process
⚫ Approach of Management Process

⚫ Functions of Management
⚫ Principles of Management
⚫ Productivity

⚫ Elements of Productivty

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 What is the ‘job of managing’ ?
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⚫ It is widely believed that the job of managing is more or less the same at all levels of

management in an organization and in all types of organization wherever they operate.

⚫ To understand the job of managing many experts have suggested that management

should be regarded as a process.

PROCESS of MANAGEMENT :
⚫ Management is often viewed as a social process, in the sense that managers are

concerned with mobilizing and coordinating the efforts and skills of individuals as
members of work groups in the organisation.
⚫ It is a process of getting things done through people. Managers get work done by

managing their subordinate managers, employees and workers.

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 Management as a process
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⚫ Management is also a creative and dynamic process. It is a

moving force that generates interaction, integration and
harmony among the functions.

⚫ Managers play an active role in making things happen, to

direct events.

⚫ The dynamic nature of management process manifests

itself by adjusting and adapting the elements of functions to
the emerging requirements of the organisation.

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 Important Features of management process
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⚫ Goal-oriented : The management process and the functions integral to it are goal-

oriented and purposeful; they are not ends in themselves; rather, they are the means for
achieving organisational objectives. They have value to the extent that they contribute to
effective survival and success of organisations.
⚫ Depicts the nature job : The process of management depict the nature of the job to be

performed by the managers. Like Managers do plan, organise, direct and control the
employment of resources and human efforts in order to achieve pre-determined goals.
⚫ Functions follow one another : The management process follow one another in a

particular sequence and not in haphazard fashion. Conceptually the process begins with
planning, followed by staffing, directing and controlling. The sequence has its justification.

More importantly this process is a ongoing process ..it is a continuous process

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 Important Features of management process …
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⚫ Interrelationship: The functions of managers are closely related to each other.
They collectively contribute to the achievement of organisational objectives. They
are to be considered in totality. Each function gains meaning in relation to the
other functions and to the contribution it makes to the total activity, of which it is a
part.
⚫ Transformation of inputs and outputs : Management is a that deploys and
transforms the use of machines, skills, values, materials, money, knowledge, and
human efforts (known as 'inputs') into products, services, surpluses and satisfaction
(known as 'outputs').

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 Important Features of management process …
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⚫ Common process of management : The functions

management are different from the functions of the
of
organisation. The functions of latter differ
organisation to Organisation.
from
⚫ For example, the major functions of business organisation
or production house are manufacturing and marketing. The
major functions of a university are teaching and research.
The functions and process of management are general.

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 Approach of Management Process
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⚫ It focuses on building a theory and science of management by
organising

knowledge based on what managers do in practice [in reality ] as managers.

⚫ It is based on the management's ability and willingness to draw knowledge from

other related disciplines such as economics, behavioural sciences (psychology,

Sociology and anthropology), mathematics and so on, to enrich management

knowledge.

⚫ It regards the practice of managing as an art, like medicine and engineering,

backed by the science of managing.

⚫ It attempts to evolve several principles of management. Principles regarded as

fundamental truths having explanatory and predictive values; they form part of

the theory of management and enrich the practice of managing.

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 Basic Functions of Management
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⚫ Planning: is the process of determining the organisational objectives and the

formulation of policies and programmes for achieving them. Planning is future-

oriented and is concerned with charting out the desired future direction of
organisational activities. Forecasting is one of the important elements in the
planning process.
⚫ Organising: Organising refers to the formal grouping of people and activities to

facilitate achievement of the objectives, Organising involves (1) determining the

activities required to achieve goals, (2) grouping of these activities into
departments or sections, (3) assignment of such groups of activities to a manager,
(4) delegation of authority to carry them out and (5) provision for coordination of
activities, authority, and information horizontally and vertically in the organisation
structure.

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 Basic Functions of Management…
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⚫ Staffing: Staffing is the process of determining the manpower requirements of the

organisation and recruiting persons for both managerial and non-managerial

positions. This involves steps such as inviting applications, selection, training and so
on. It involves the task of matching jobs and people fitting the right person to the
right job and of developing the human resources of the organisation.
⚫ Directing: Directing is the process of activating the plans and groups efforts in the

desired direction. It is concerned with the implementation of plans and programmes

on the basis of individual and group efforts of managers, employees and workers. It
requires leadership, supervision, communication and motivation, for achieving the
goals of the organisation.

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 Basic Functions of Management…
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⚫ Controlling: It is the process of

checking, measuring andregulating the on-
the organization
going activities
toensure
of that they are
conformity with the pre- plans in
produce the planned determined
results. and

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 Principles of Management
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Henry Fayol, listed a number principles of management which are
given below.
⚫ Division of work: In any organised situation, work should be

divided into compact jobs to be assigned to individuals. This applies

to managerial work and non-managerial work.
⚫ Authority and responsibility: The authority of a manager, that

is his/her official right to manage people and things, should go

hand in hand with the responsibility for effective results. In other
words, there should be a balance between authority and
responsibility vested in a managerial position.

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 Principles of Management…
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⚫ Discipline: Discipline defined as observance of diligence

and respect, should be enforced throughout the

organisation by managers as leaders of their work groups.
Fayol declares that discipline requires good superiors at all
levels. Fayol emphasised the need for discipline among the
personnel for the smooth running of organisations and
advocated penalties to prevent its violation.

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 Principles of Management…
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⚫ Unity of command: This principle specifies that a subordinate in an

organisation should be under the direct supervision of a single superior

from whom he gets instructions and to whom he/she is accountable. In
other words, every employee should have only one boss, otherwise,
conflict and confusion in authority and instructions would result.

⚫ Unity of direction: According to this principle, a set of activities or

variety of activities should have one objective that is they flow in one
direction to achieve the aim. This principle promotes smooth
coordination of activities', efforts and resources.

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 Principles of Management…
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⚫ Subordination of individual interest to central interest:

The collective good and common interests of the organisation should
prevail over the narrow sectional and self interest of its members. It
means the selfish attitude of an individual should be surrendered if it
affects the interest of the enterprise.
⚫ Remuneration of Personnel: Remuneration and the methods of
payment in an organization should be fair. It should bring about high
productivity for the organisation and satisfaction for the personnel.

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 Principles of Management…
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⚫ Centralisation : Centralisation of authority refers to relative

concentration of much authority in a manager at any managerial
level but especially at the top managerial level. Decentralisation
of authority refers to relative dispersal or devolution of authority
among the various managerial levels and especially among the
lower managerial levels to facilitate operational decision-making.
There should be a proper combination and balance between
centralisation and decentralisation in an organisation based on a
consideration of several internal and external factors.

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 Principles of Management…
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⚫ Hierarchy or scalar chain of command: Scalar chain implies

authority relationships from the top to the lowest a level or rank in an

organization. Authority relationships said to be scalar when
subordinates report to their immediate superiors and when their
superiors report directly, as subordinates, to their superiors [i.e. in
'scales']. In other words, the chain of command that runs from the top
of an organisation to its lowest ranks - is called scalar chain of
command.

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 Principles of Management…
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⚫ Order : Order refers to a systematic arrangement of materials and

placements of people in the organisation. In 'material order'
everything should be in its proper place and there should be a place
for everything. For 'social order' there should be a place assigned
to each employee, and each employee should be in the place
assigned.
⚫ Equity : Equity in this context refers to fair treatment to all
workers in an organisation. Fair treatment involves kindness and
justice on the part of superiors which motivates the workers to
perform their duties.

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 Principles of Management…
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⚫ Stability of tenure of personnel: Organisations should make efforts to

achieve relative stability and continuity of tenure of their personnel. This could

be achieved by attractive remuneration and honourable treatment of personnel.

Stability and continuity of personnel promote team work, loyalty and economy.

⚫ Initiative: An organisation should encourage desire initiative among its

managers and employees by extending opportunities and freedom to contribute

their best.

⚫ Union: This is the principle says that 'in union there is a strength', or talks

about 'team spirit'. The principle stresses the need for team spirit, cordial

relations and cooperation among the personnel.

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 Productivity
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⚫ Productivity is one of the commonly used

most term in industrial It is a measure of
engineering.
how well resources utilised to produce
are output.

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 Definition Of Productivity
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⚫ Productivity as defined by Organisation European

of
Economy Cooperation (OEEC) is :

⚫ Productivity is the quotient (ratio) obtained by dividing

output by one of the factors of production. Thus, it is

possible to speak productivity of capital, labour, space,
energy and raw materials according to whether output is
being considered in relation to capital, labout, space,
energy or raw materials respectively.

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 Elements of Productivity Management
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Productivity consists of the following elements:

Goals and Objectives- Clear goals and objectives of the

organisation. They provide cost reduction measures, Improved
productivity targets and organisational processes.
⚫ Rewards and Recognition- Enhancement and recognition of
successful individuals and teams, encourage the employees and
positively reinforced their behaviour and actions and in return helps to
increase productivity.
⚫ Information- Information and the analysis of information helps to
better planning and specific areas for improvement.

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 Elements of Productivity Management…
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⚫ Employees Involvement- Employees involvement in small group activities

provide opportunities to bring about improvement and influence on
management decisions. Management attitude towards the well being of
employees, open communication channels and the organisational climate as a
whole are vital to success.
⚫ Assets- The assets of an organisation include employees, materials, equipment
and facilities. To improve the effectiveness of the organisation's assets the typical
issues include basic education, skill training, cost of quality, equipment capacity
utilization and convert operating practices.
⚫ Leadership- Leadership occupies the hub of the productivity wheel, since it
drives the other elements of the improvement cycle.

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⚫End of the class…

Any queries… ?

Wednesday, August 12, 2020