PRINCIPLES OF

MANAGEMENT
 Management
Management is coordination of work activities
so that they are completed effectively and
efficiently with and through other people.
 Manager

A person who works and get the word done through

other people in order to accomplish organizational
goals effectively and efficiently.
 To do the right things
&
To do the things right

• Effectiveness:
The achievement of objectives with in given
period of time.

• Efficiency:
The achievement of goals with utilization of
minimum resources.
 Level Of Management

Top Management

Middle Management

Front Line
Management
 • Top Managers:

The managers who are at or near the top

position of organization and are responsible
for making organization wide decisions and
establishing the goals and plans that affect
entire organization.

Examples are CEO, GM, CFO, President,

Chancellor.
 • Middle Managers:

The managers who are in between first line

managers and top managers who get the
policies and procedures implemented and
manage the work of front line managers.

Examples are Regional manager, Division in-

charge, Project manager, plant manager
 • Front-Line Managers:

The managers who are at the lowest level of

organization who manage the work of non-
managerial staff of the company. They are
directly involved in the production process of
the company.

Examples are Supervisor, Shift manager, office

manager, department manager or even a
foreman.
 Management Functions:

PLANNING ORGANIZING STAFFING

DEFINING GOALS DETRMINING FILLING AND

WHAT NEEDS TO BE KEEPING THE
ESTABLISHING DONE BY WHOM POSITIONS FILLED
STRATEGIES AND HOW

DEVELOPING SUB-
PLANS TO
COORDINATE
ACTIVITIES
 Management Functions:

LEADING CONTROLLING

DIRECTING AND MONTORING THE

MOTIVATING ALL ACTIVITIES TO ENSURE
INVOLVED PARTIES THAT THEY ARE
AND RESOLVING ACCOMPLISHED AS
CONFLICTS PLANNED
 Managerial Roles

It involves the specific categories of managerial behavior.

1. Interpersonal Role
It involves people and other activities that are
symbolic and ceremonial in nature.
2. Informational Role
It involves receiving, collecting and disseminating
information.
3. Decisional Role
It involves making choices among various options.
 1. Interpersonal Role
a) Figurehead
Symbolic head obliged to perform a number of
routine tasks of a legal and social nature.

Example: Greeting customers, visitors;

Signing a legal document
 1. Interpersonal Role
b) Leader
Responsible for the motivation of employees.
Accountable for staffing, training and associated
activities.

Example: Giving a job advertisement

Conducting a motivational seminar
 1. Interpersonal Role
c) Liaison
Maintains self-developed networks of outside
contacts and informers who provide information and
favors.

Example: Acknowledging an e-mail

Meeting with a distributor
 2. Informational Role
a) Monitor
Seeks and receives a wide variety of internal and
external information to make understanding of
organization and environment.

Example: Reading a periodical

Maintaining personal contacts
 2. Informational Role
b) Disseminator
Transmits information received from internal or
external sources to other members of organization.

Example: Holding informational meetings

Making phone call to relay information
 2. Informational Role
c) Spokesperson
Transmits information to outsiders according to
organization’s plans, policies, and procedures.

Example: Giving information to media

Holding board meetings
 3. Decisional Role
a) Entrepreneur
Searches organization and its environment for
opportunities and initiates improvement projects to
bring about changes.

Example: Organizing strategies and review sessions

to develop new programs.
 3. Decisional Role
b) Disturbance Handler
Responsible for handling organization if it faces some
unexpected disturbances.

Example: Reviewing organizational tactics to

overcome the crises
 3. Decisional Role
c) Resource Allocator
Answerable for allocating the organization’s
resources for making the greater profitability.

Example: Budgeting
 3. Decisional Role
d) Negotiator
Liable for representing organization at major
negotiations.

Example: Participating union contract negotiation.

 Management Skills
Every level of management requires certain skills.
• Technical Skills
Knowledge and proficiency in a specialized field
• Human skills
The ability to work with other people individually and
in groups
• Conceptual Skills
The ability to conceptualize and think about
complex situations.
Management Skills
 Challenges for Managers

Shifting organizational
Boundaries
Changing
Virtual Workplace
Technology
More Mobile workforce
Flexible Work Arrangements
Empowered Employees
 Challenges for Managers

Risk management
Increased Threat Work-life Personal-life Balance
to Security Discrimination Concerns
Globalization Concerns
 Challenges for Managers

Emphasis on
Redefined Values
Managerial Ethics
Increased Accountability
 Challenges for Managers

Customer Services
Increased
Innovation
Competitiveness
Globalization
Higher productivity
In 1911 Fredrick Taylor after work of several years published his work ‘The principles of Scientific Management’,
that emphasized over increasing productivity. He is acknowledged as Father of Scientific Management
Henri Fayol (1841 - 1925) was a French management theorist.

Henri Fayol was one of the most influential contributors to

modern concepts of management, having proposed that there
are five primary functions of management.

Henry Fayol is accredited as Father of Modern Management

The 14 Management Principles from Henri Fayol are:

Division of Work. Specialization allows the individual to build up

experience, and to continuously improve his skills. Thereby he
can be more productive.

Authority. The right to issue commands, along with which must

go the balanced responsibility for its function.

Discipline. Employees must obey, but this is two-sided:

employees will only obey orders if management play their part
by providing good leadership.

Unity of Command. Each worker should have only one boss with
no other conflicting lines of command.
Unity of Direction. People engaged in the same kind of activities
must have the same objectives in a single plan. This is essential
to ensure unity and coordination in the enterprise. Unity of
command does not exist without unity of direction but does not
necessarily flows from it.

Subordination of individual interest (to the general interest).

Management must see that the goals of the firms are always
paramount.

Remuneration. Payment is an important motivator although by

analyzing a number of possibilities, Fayol points out that there is
no such thing as a perfect system.

Centralization (or Decentralization). This is a matter of degree

depending on the condition of the business and the quality of its
personnel.
Scalar chain (Line of Authority). A hierarchy is necessary for
unity of direction. But lateral communication is also
fundamental, as long as superiors know that such
communication is taking place. Scalar chain refers to the number
of levels in the hierarchy from the ultimate authority to the
lowest level in the organization. It should not be over-stretched
and consist of too-many levels.

Order. Both material order and social order are necessary. The
former minimizes lost time and useless handling of materials.
The latter is achieved through organization and selection.

Equity. In running a business a combination of kindliness and

justice is needed. Treating employees well is important to
achieve equity.
Stability of Tenure of Personnel. Employees work better if job
security and career progress are assured to them. An insecure
tenure and a high rate of employee turnover will affect the
organization adversely.

Initiative. Allowing all personnel to show their initiative in some

way is a source of strength for the organization. Even though it
may well involve a sacrifice of ‘personal vanity’ on the part of
many managers.

Esprit de Corps. Management must foster the morale of its

employees. He further suggests that: “real talent is needed to
coordinate effort, encourage keenness, use each person’s
abilities, and reward each one’s merit without arousing possible
jealousies and disturbing harmonious relations.”
 Hawthorne Studies
These findings were series of studies during 1920s and 1930s
to unearth the new insights into behaviors of individuals and
groups.

The experiments started by checking the performances with

the levels of lights.

In 1927 Elton Mayo started work experiments by redesigning

jobs, changes in workdays, timings, work length, giving rest
period, & group wage plans.
 Elton Mayo concluded Hawthorne studies as:

• Groups have affect on individual performances.

• Group standards and tasks establish individual

worker output.

• Money has lesser impact on performance, than

group standards, attitudes and security.
 Management Approaches
• Managerial Role Approach:

- This approach says that 10 managerial roles

are required in a manager that are classified in
interpersonal, informational and decisional
roles.

- Limitations are there since there are no core

functions of management discussed
• Management Science Approach

- This approach refers to that the managerial

process is mathematical process and all the
processes are quantified in performing
managerial tasks.

- Limitation of this approach is that not all

problems can be quantified.
• Contingency Approach

- This approach signifies that situational

factors influence managing the organization
on the basis of causes and their effects.

- Limitation is that there is no one best way to

solve a problem. All contingency factors are to
be determined.
• Empirical Approach

- Empirical approach is based on pragmatic

and experiential learning. It implies that the
past performance indicates the success or
failure, thus, actions should be taken
according to those learning.

- Limitation is that past data become obsolete

before long.
• Decision Theory

- This approach focuses on making right

decisions and the decision making process.

- Limitation is that decision making is just a

part of management.
• Reengineering Approach

- This approach implies that dynamic

environment needs continuous changing and
redesigning of process.

- Limitation is that this approach ignores the

external environment forces.
• System Approach

- System approach tell us about the

organizational open or closed systems. Open
system refers to system that recognizes the
importance of studying interrelatedness of
managerial functions and subsystems.
• Total Quality Management:

- This approach says that management is all

about making adequate product or services and
continuous progress towards improvement.

- Limitation is that it entails only single aspect of

management