Principles of Management

PRINCIPLES OF MANAGEMENT
BY MUHIRE WELLINGTON
“Master in Education Management
and Administration
CONTACT: 0788645014
Email: wmuhire@uok.ac.rw
“COGITO, ERGO SUM”
14/5/2023 1
Syllabus/course outline
Overview of the course and syllabus
Introduction to the principles of Management
 Development of Management Thought
 Changing Roles and Functions of Managers
 Leadership, entrepreneurship and Strategy
 Goals and objectives in the POLC Framework
The concept of Authority
 Motivation as a leadership tool
 Organizational communication
 MBO, score Card of Performance and possibility
Organizational culture, diversity and ethics
 Integrated marketing communication
Labor for the future 2

Reference Books
Recommended Text & Reference Books:
1. FUNDAMENTALS OF MANAGEMENT
Essential Concepts & Applications By: Robbins,
Decenzo
2. MANAGEMENT The New Competitive
Landscape By: Bateman, Snell
3. MANAGEMENT 7th Edition By: Robbins,
Coulter
4.MANAGEMENT A global Perspective By:
Weihrich, Koontz

Learning Outcomes
 You should learn to:
Discuss management’s relationship to
other academic fields of study.
Explain the value of studying
management
Summarize the contributions of the
scientific management advocates
Describe the contributions of the general
administrative theorists/truth
seekers/philosophers.
Definition of Management
Management is the process of achieving
goals and objectives effectively and
efficiently through and with the people.
"Management is a process of designing
and maintaining an environment in which
individuals work together in groups to
effectively and efficiently accomplish
selected aims.

Management Defined Cont’
Management is the process of achieving
organizational goals and objectives effectively
and efficiently by using management functions i.e. –
 Planning –
 Organizing –
 Staffing –
 Controlling
Management is a set of activities directed at an
organization's resources with the aim of achieving
organizational goals in an efficient and effective
manner.
These definitions when expanded have these
implications:
Management is therefore, a continuous effort
aimed at shaping an organization and contributing
to its overall growth.
• The functions of managers include planning,
organizing, staffing, leading and controlling.
These functions are essential to any kind of
organization.
• It applies to managers at all hierarchical levels.
The aim of managers is to increase productivity,
effectiveness and efficiency.

Elements of definition
. Process: represents ongoing functions or primary
activities engaged in by managers
• Efficiency: getting the most output from the
least amount of inputs • “doing things right” •
concerned with means • Achieving the
objectives in time
• Effectiveness: completing activities so that
organizational goals are attained • “doing the
right things” • concerned with ends • Achieving
the objectives on time.

Management: Science or Art?
Science is a collection of truths and
systematic knowledge. It has fundamental
implications after continuous study and
experiments. It has fundamental principles
discovered.
Art uses the known rules and principles and
skills, expertise, wisdom and experience
to achieve the desired result.

Management is both art and science.
Management has got two faces like a coin;

on one side it is art Management has got
two faces like a coin; on one side it is art
and on the other it is science. Management
has got scientific and on the other it is science.
Management has got scientific principles
which constitute the elements of Science and
Skills principles which constitute the elements
of Science and Skills and talent which are
attributes of Art.
Objectives Of Management
The objectives of management are narrated as under
Organizational objectives: Management is expected
to work for the achievement of the objectives of the
Particular organization in which it exists.
Organizational objectives include:
(a) Reasonable profits so as to give a fair return on the
capital invested in business
(b) Survival and solvency of the business, i.e.,
continuity.
(c) Growth and expansion of the enterprise
(d) Improving the goodwill or reputation of the
enterprise
Contt.
Personal objectives: An organization consists of
several persons who have their own objectives.
These objectives are as follows:
(a) Fair remuneration for work performed
(b) Reasonable working conditions
(c) Opportunities for training and development
(d) Participation in management and prosperity of
the enterprise
(e) Reasonable security of service.

Contt.
Social objectives: Management is not only a
representative of the owners and workers, but is also
responsible to the various groups outside the organization.
It is expected to fulfil the objectives of the society which
are given below:
(a) Quality of goods and services at fair price to
consumers.
(b) Honest and prompt payment of taxes to the
Government.
(c) Conservation of environment and natural resources.
(d) Fair dealings with suppliers, dealers and competitors.
(e) Preservation of ethical values of the society

Scope of Management
The field of management is very wide.
Production Management: Production management
implies planning, organizing, directing and controlling the
production function so as to produce the right goods, in
right quantity, at the right time and at the right cost.
It includes the following activities:
(a)Designing the product
(b) Location and layout of plant and building
(c) Planning and control of factory operations
(d) Operation of purchase and storage of materials
(e) Repairs and maintenance
(f) Research and development etc.

Contt.
Marketing Management:
Marketing management refers to the identification of
consumer’s needs and supplying them the goods and
services which can satisfy these wants. It involves the
following activities:
 Marketing research to determine the needs and
expectation/hope of consumers.
 Planning and developing suitable products
 Setting appropriate prices
 Selecting the right channel of distribution, and
 Promotional activities like advertising and
salesmanship to communicate with the customers

Contt.
Financial Management: Financial management

seeks to ensure the right amount and type of funds
to business at the right time and at reasonable cost.
It comprises the following activities:
 Estimating the volume of funds required for both
long-term and short-term needs of business
 Selecting the appropriate source of funds
 Raising the required funds at the right time
 Ensuring proper utilisation and allocation of
raised funds so as to maintain safety and liquidity
of funds and the wealth and profitability of
business, and
Contt.
Personnel Management: Personnel management
involves planning, organizing and controlling the
procurement, development, compensation, maintenance and
integration of human resources of an organization. It consists of
the following activities:
(a) Manpower planning
(b) Recruitments,
(c) Selection,
(d) Training
(e) Appraisal,
(f) Promotions and transfers,
(g) Compensation,
(h) Employee welfare services

Different management Thoughts
Behavioral Management Theory:
Behavioral management theory studies how productivity in
business or similar applications can be managed by
concentrating on the motivations of the workforce.
This includes analyzing employees' expectations, group
dynamics and teamwork, conflict resolution and personal
Interests to workers and treat employees as important
assets to achieve goals. Behavioural management
contrasts with classical management, which ignores
workers and focuses on productivity outcomes.
Behavioral management theory relies on that managers will
better understand the human characteristic.
Contt.
As time went on, thinking shifted, and management started
looking at employee satisfaction and working conditions as a
way to increase productivity.
Theorists like Elton Mayo and others studied employee
productivity under different conditions to determine a
connection. experiment provides a good example of this. In
the Hawthorne experiment, a group of telephone line
workers were separated and observed working in a private
room. During their workday, the group members were given
special privileges, like freedom to leave their workstations,
changes in pay rates, and even company-sponsored lunch
They discovered that control group produced more than the
other employees.
Contt.
Scientific Management Theory:
The major contributor of this theory is Fredrick Winslow
Taylor, and that’s why the scientific management is often
called as “Taylorism”.
scientific management theory focused on improving the
efficiency of each individual in the organization. The major
emphasis is on increasing the production through the use of
intensive technology, and the human beings are just
considered as adjuncts to machines in the performance of
routine tasks. he major principles of scientific
management,
given by Taylor, can be summarized as follows:
Contt.
Improving the working conditions and standardizing the tools,
period of work and cost of production.
Proper scientific selection and training of workmen should be
done.
The financial incentives should be given to the workers to
boost their productivity and motivate them to perform well.
Time, motion and fatigue studies shall be used to determine
the fair amount of work done by each individual worker
Thus, the scientific management theory focused more on
mechanization and automation, i.e., technical aspects of
efficiency rather than the broader aspects of human
behavior in the organization.
Contt.
Contingency Approach to Management:

The contingency approach to management is based on the
idea that there is no single best way to manage.
Contingency refers to the immediate contingent
circumstances. Effective organizations must tailor their
planning, organizing, leading, and controlling to their
particular circumstances.
Managers should identify the conditions of a task, the
requirements of the management job, and people involved
as parts of a complete management situation. The leaders
must then work to integrate all these facets into a solution
that is most appropriate for a specific circumstance.
Contt.
In this approach management assumes that there is no
universal answer to many questions because
organizations, people, and situations vary and change
over time. Often there is no one right answer when
managers ask.
The contingency theory is similar to situation theory in
that there is an assumption that no simple way is always
right. Situation theory, however, focuses more on the
behaviors that the leader should use. The contingency
theory takes a broader view that includes contingent
factors about leader capability and also includes other
variables within the situation.
Contt.
Factors that influence the contingency
theory are numerous.
These include the following:
The size of the organization
How the firm adapts itself to its environment
Differences among resources and operations
activities
Assumption of managers about employees
Strategies
Technologies being used
Contribution of Management Thinkers
Henri Fayol:
Henri Fayol was real father of modern Management.
Henri Fayol is the French industrialist in 1841-
1925.
He was a mining engineer .
Henri Fayol spent his entire working career in French
industry.
Henri Fayol developed a general theory of Business
Administration.
Henri Fayol was concerned the principles of
organization and the function of management.
Contt.
Henri Fayol’s Administrative Management is based on six
admin activities:
 Technical : Production and manufacture
 Managerial : Planning, controlling, co-
ordination
 Commercial : Purchasing and selling
 Financial : Use of capital
 Accounting : Asset, Liabilities, cost, profits
 Security : Protection of goods and Person
Fayol’s Principles of
Management
Henri Fayol (1841-1925)
He has proposed that there are six primary functions of
management and 14 principles of management,
1. Forecasting,
2. Planning,
3. Organizing,
4. Commanding,
5. Coordinating,
6. Controlling
There are 14 Principles of Management described by
Henri Fayol.

14 Principles of Henri Fayol
1. Division of Labor Work of all kinds must be
divided & subdivided and allotted to various
persons according to their expertise in a
particular area.
2. Authority & Responsibility Authority refers
to the right of superiors to get exactness from
their sub-ordinates. Responsibility means
obligation for the performance of the job
assigned. Note that responsibility arises
wherever authority is exercised

3. Unity of Command A sub-ordinate should
receive orders and be accountable to one and
only one boss at a time. He should not receive
instructions from more than one person
4. Unity of Direction People engaged in the same

kind of business or same kind of activities must
have the same objectives in a single plan.
Without unity of direction, unity of action
cannot be achieved.

5.Equity Equity means combination of
fairness, kindness & justice. The
employees should be treated with
kindness & equity if devotion is expected
of them.
6. Order This principle is concerned with
proper & systematic arrangement of
things and people. Arrangement of things
is called material order and placement of
people is called social order.
7. Discipline Discipline means sincerity,
obedience, respect of authority & observance of
rules and regulations of the enterprise.
Subordinate should respect their superiors and
obey their order.
8. Initiative Initiative means eagerness to initiate
actions without being asked to do so.
Management should provide opportunity to its
employees to suggest ideas, experiences& new
method of work.

9.Remuneration Remuneration to be paid to the
workers should be fair, reasonable, satisfactory
& rewarding of the efforts. It should accord
satisfaction to both employer and the
employees.
10. Stability of Tenure Employees should not be
moved frequently from one job position to
another i.e. the period of service in a job should
be fixed.

11. Scalar Chain Scalar chain is the chain of superiors
ranging from the ultimate authority to the lowest.
Communications should follow this chain. However,
if following the chain creates delays, cross-
communications can be allowed if agreed to by all
parties and superiors are kept informed.
12. Sub-ordination of Individual Interest to common
goal An organization is much bigger than the
individual it constitutes therefore interest of the
undertaking should prevail in all circumstances. The
interests of any one employee or group of employees
should not take precedence over the interests of the
organization as a whole.

13. Esprit De’ Corps It refers to team spirit i.e.
harmony in the work groups and mutual
understanding among the members. Esprit De’
Corps inspires workers to work harder.
14. Centralization: Centralization refers to the
degree to which subordinates are involved in
decision making. Whether decision making is
centralized (to management) or decentralized (to
subordinates) is a question of proper proportion.
The task is to find the optimum degree of
centralization for each situation.

Contt.
FREDERICK WINSLOW TAYLOR:
Taylor (1856-1915) known as father of scientific
Management. Taylor was an engineer by training. He joined
the Midvale Steel Works as a labourer and rose rapidly to be
foreman and rose to the position of chief engineer after
earning a degree in engineering through evening study
. Frederick W. Taylor was a pioneer who propounded
principles of “Scientific Management (1911)” come to be
recognized as the father of scientific management. Scientific
management also called Taylorism.
Its main objective was improving economic efficiency,
especially labor productivity .
Contt.
He was primarily concerned with efficiency of
workers and optimum utilization of machines and
other resources.
For the employer, “maximum prosperity” means not just
large profits in the short run but the development of all
aspects of the enterprise to a state of permanent
Prosperity.
Taylor can be discussed into three phases
 Principles of Management;
 Mechanism of Management; and
 Philosophy of Management
Contt.
Principles of Management:
1-. The development of a scientific method of
designing jobs to replace the old rule-of-thumb
methods; this involved gathering, classifying and
tabulating data to arrive at the “one best way” to
perform a task or series of task.
2-The scientific selection and progressive teaching
and development of employees; He also
emphasized the need the study worker strengths
and weakness and to provide training to improve
workers performance.
Contt.
3-Taylor believed that new and scientific methods of
job design should not merely be put before an
employee; they also should be fully explained by
management. He believed that employees would
show little resistance to changes
4-Division of work resulting in an
interdependence between management and the
worker; Taylor felt that if they were truly
dependent on one another, than cooperation
would naturally follow.
Contt.
Mechanism of Management:
He put the right person on the job with the correct
tools and equipment, had the worker follow his
instruction exactly, and motivated the worker
with an economic incentive of a significant higher
daily wages., Taylor became known as the
“Father” of scientific management.
Standardization, time and motion studies,
functional foremanship, production planning and
control, price wage system of payment on
differential basis were the main ideas enunciated
by Taylor.
Contt.
Philosophy of Management:
Scientific management was a complete mental revolution for
both management and employees. It was a new philosophy
and attitude towards the use of human efforts. He advocated
a philosophy of management under which management
would undertake a basic responsibility of planning and
control and prescribe the rules, laws and formulas to guide
the actual operations by man and machines, so as to help
employees to produce at lower cost to the employer and
with more remuneration to themselves.
Detailed instruction in writing should be issued to workers
regarding the task to be done and methods to be used in
completing the task.
Contt.
Peter Drucker:
Contribution by Peter F. Drucker –Drucker is highly
respected management thinker. He is a prolific
writer & has published several books & articles on
the management practices. His views on mgmt may
be summarised as follows:
Nature of management
 Peter Drucker is against bureaucratic management.
He emphasised management with creative &
innovative characteristics.
 He believed that the basic objective of
management is to lead towards innovation.
Contt.
Management functions:
Peter Drucker opined that the, management is the organ of its
institution. According to him there are basic functions of a
manager which he must perform to enable the institution to make
its contributions for The specific purpose & mission of the
institution, whether , hospital or university.
Organization Structure:
Peter Drucker has described bureaucratic structure because of its
to many dysfunctional effect. Hence, it should be replaced. He has
emphasised basic features of an effective organisation structure.
Contt.
Management by Objective: (MBO)
P. Drucker most important contributions to the
discipline of management , MBO. He introduce
this concept in a 1952. MBO includes method
of planning setting standards performance
appraisals, & motivation. According to
Drucker, MBO is not only a technique of
management but it is philosophy of managing
Basics of Management
Organizations are groups of people, with ideas
and resources, working toward common goals.
OR A systematic arrangement of people brought
together to accomplish some specific purpose is
called organization.
People
Deliberate Structure
Distinct Purpose

Manager
A manager is someone whose primary
responsibility is to carry out the management
process within an organization to achieve the
organizational goals. Changing nature of
organizations and work has blurred the clear
lines of distinction between managers and non-
managerial employees

Managerial skills
Primary Skills
• Conceptual Skill
• Technical Skill
• Human Skill
Secondary Skills
• Design Skill
• Communication Skill
• Leadership Skill

Managerial skills Cont’d
Conceptual skills: • This refers to the ability to think and
conceptualize abstract situations. These abilities are
required for making complex decisions. In short it is:
• The mental capacity to develop plans, strategies and
vision
Human or interpersonal skills: • This includes the ability
to understand other people and interact effectively with
them. The human skills are also important in creation of
an environment in which people feel secure and free to
express their opinions. In short it is:
• The ability to work with other people in teams

Technical skills:
• These skills include the knowledge, abilities of and
proficiency in activities involving methods, processes
and procedures in the relevant fields as accounting,
engineering, manufacturing etc. Or in short:
• The ability to use the knowledge or techniques of a
particular discipline to attain ends
Design skills: • These skills enable a manager to handle
and solve any kind of unforeseen or actual problems,
that may crop up in the organization. Such problems
could arise due to internal factors or external factors
and/or both. In short it is:
• The problem solving skill

Communication skills:
• The abilities of exchanging ideas and
information effectively. To understand
others and let others understand
comprehensively.
Leadership skills
• The abilities to influence other people to
achieve the common goal.

Roles of manager
 In 1960, Henry Mintzberg conducted a study to
understand about the managerial roles. He identified 10
managerial roles that are common to all managers. These
10 managerial roles are grouped under: Interpersonal,
decisional, and informational roles.
Interpersonal
• Figurehead • Leader • Liaison
Decisional
• Entrepreneur • Disturbance handler • Resource allocator •
Negotiator
Informational
• Monitor • Disseminator • Spokesperson
Roles of manager Cont’d
Inter-personal Role
• Figurehead: Represents the company on social
occasions. Attending the flag hosting ceremony,
receiving visitors or taking visitors for dinner etc.
• Leader: In the role of a leader, the manager motivates,
encourages, and builds enthusiasm among the
employees. Training subordinates to work under
pressure, forms part of the responsibilities of a manager.
• Liaison: Consists of relating to others outside the group
or organization. Serves as a link between people, groups
or organization. The negotiation of prices with the
suppliers regarding raw materials is an example for the
role of liaison.
Decisional Role:
1. Entrepreneur: Act as an initiator and designer and
encourage changes and innovation, identify new ideas,
delegate idea and responsibility to others.
2. Disturbance handler: Take corrective action during
disputes or crises; resolves conflicts among subordinates;
adapt to environmental crisis.
3. Resource allocator: Decides distribution of resources
among various individuals and groups in the organization.
4. Negotiator: Negotiates with subordinates, groups or
organizations- both internal and external. Represents
department during negotiation of union contracts, sales,
purchases, budgets; represent departmental interests

Informational role:
1. Monitor: Emerges as nerve center of internal and
external information about Information.
2. Disseminator: Transmits information received from
other employees to members of the organization.
3. Spokesperson: Transmits information to the people
who are external to the organization, i.e., government,
media etc. For instance, a manager addresses a press
conference announcing a new product launch or other
major deal.

Functions of management
 Planning is the process of setting goals, and charting
the best way of action for achieving the goals. This
function also includes, considering the various steps to
be taken to encourage the necessary levels of change
and innovation.
 Organizing is the process of allocating and arranging
work, authority and resources, to the members of the
organization so that they can successfully execute the
plans.

Contt.
Staffing is the process of filling the positions in the
organization and keeping them filled. B: Staffing is the
process of recruiting and selecting the right person for
the right job at the right time in the right place
Leading involves directing, influencing and motivating
employees to perform essential tasks. This function
involves display of leadership qualities, different
leadership styles, different influencing powers, with
excellent abilities of communication and motivation.

Contt.
Controlling is the process of devising various
checks to ensure that planned performance is
actually achieved. It involves ensuring that
actual activities conform to the planned
activities. Monitoring the financial statements,
checking the cash registers to avoid overdraft
etc., form part of this process

Levels of management
1. Top Level: • Top management sets the mission
and goals, develops policies, evaluates the overall
performance of various departments, responsible
for the business as a whole and is concerned
mainly with long-term planning
2. Middle Level: • Middle level management
develops departmental goals, executes the
policies, plans and strategies determined by top
management , develops medium- term plans and
supervises and coordinate lower-level managers’
activities
Contt.
3 Lower (Supervisory, frontline) Level: • Lower
level management takes charge of day-to-day
operations, is involved in preparing detailed
short-range plans, is responsible for smaller
segments of the business, executes plans of
middle management , guides staff in their own
subsections and keep close control over their
activities

Organizational Levels
Top
Managers
Middle
Managers
First-line
Managers
Non-managerial Employees

Levels of management
Top Management
President, CEO, Executive Vice Presidents
Middle Management
Plant Managers, Division Managers, Department
Managers
First-Line Management
Foreman, Supervisors, Office Managers

Leadership
Definition of Leadership
LEADERSHIP:
Leadership is the art of influencing and inspiring
subordinates to perform their duties willingly,
competently and enthusiastically for achievement of
groups objectives.
According to Wendell French, "Leadership is the
process of influencing the behavior of others in the
direction of a goal or set of goals or, more broadly,
toward a vision of the future”,
Features of Leadership
 Leadership is the process of influencing behavior of
individuals of an organization..
 Leadership directs the individuals to attain the tasks
assigned to them by following the instructions of their
leaders.
 A leader possesses qualities to influence others.
 Leadership gives the individuals, a vision for future.
 Leadership is meant for a given situation, given group for
a pre-determined period of lime.
 Leadership is continuous process of influencing behavior.
It encourages liveliness in the group.
Contt.
FUNCTIONS OF LEADERSHIP:
Setting Goals-. The leadership primary emphasis on
setting of the goals and also ensuring behaviors that
achieve those goals.
Initiates action- Leader is a person who starts the work by
communicating the policies and plans to the subordinates
from where the work actually starts.
Direction & Motivation- A leader proves to be playing an
incentive role in the concern’s working. He directs the
employees and motivates them with economic and non-
economic rewards and thereby gets the work from the
subordinates
Types of leadership
Following are the main types of leadership:
Autocratic or Authoritarian:
In this type of leadership, there is a complete centralization
of authority in the leader, i.e., authority is cantered in the
leader himself.
He has all the powers to make decisions.
He wants immediate obedience of his orders and
instructions. Any negligence on the part of subordinates
results in punishment.
There is no participation from the subordinates in
decision-making.
 A leader thinks that he is the only competent person in the
organization
Contt.
Democratic or Participative
 Democratic or Participative leadership is also known as
group centered or consultative leadership.
 In this type of leadership, leaders consult their groups and
consider their opinion in the decision-making process.
 Leaders encourage discussion among the group members
on the problem under consideration and arrive at a decision
depending on their consent.
 Exchange of ideas among subordinates and with the leader
is given encouragement. Leaders give more freedom to
their group members.
 It develops a sense of confidence among subordinates and
they derive job satisfaction. It improves quality of
Contt.
Laissez-faire or Free Rein:
 In this type of leadership, there is virtual absence of
direct leadership.
 It is, therefore, known as "no leadership at all".
 There is complete delegation of authority to subordinates
so that they can make decisions by themselves.
 Absence of leadership may have both positive and
negative effects.
 Free rein leadership may be effective if members of the
group are highly committed to their work.
 Members may feel insecure and develop frustration for
lack of decision-making authority.
Quality of a leader
1. Focus :“It’s been said that leadership is making
important but unpopular decisions..
 2. Confidence:“A leader instils confidence and
‘followership’ by having a clear vision, showing empathy
and being a strong coach.
 3. Transparency:“As a leader, the only way I know how
to engender trust and buy-in from my
 4. Integrity:“Our employees are a direct reflection of the
values we embody as leaders if you focus on becoming
authentic in all your interactions, that will rub off on your
business and your culture, and the rest takes care of
itself.”
Contt.
. Inspiration “People always say I’m a self-made man.
But there is no such thing. Leaders aren’t self-made;
they are driven.
. Passion You must love what you do. In order to be
truly successful at something, you must obsess over it
and let it consume you.
. Innovation “In any system with finite resources and
infinite expansion of population—like your business, or
like all of humanity—innovation is essential for not
only success but also survival
. Patience“ Patience is really courage that’s meant to
test your commitment to your cause. The path to great
things is always tough so it need patience .
Contt.
Positivity “In order to achieve greatness, you must create

a culture of optimism. There will be many ups and downs,
but the prevalence of positivity will keep the company
going. You have to truly believe in making the impossible
possible.”
Communication If people aren’t aware of your
expectations, and they fall short, it’s really your fault for
not expressing it to them. The people I work with are in
constant communication, probably to a fault. But
communication is a balancing act

Theory of Leadership
TRAIT THEORY OF LEADERSHIP
Trait theories of leadership identify the specific
personality traits that distinguish leaders from non-
leaders. They are based on the premise that leaders are
'born, not made' i.e., that leadership is largely innate,
rather than being developed through learning
This theory emphasises upon qualities of a leader. The
credit of introducing this theory goes to the scholar like
Ordway Tead, Chester I. Bernard, Edwin H. Schell.
They have made a deep study about the life of successful
leader.
Contt.
Ordway Tead has explained ten qualities of leadership-
Good personality,
 (b) Knowledge of the object and ability to direct,
 (c )Courage,
(d)Honesty,
 (e)Intellectual capacity,
(f)Technical knowledge,
 (g) Friendship and affection,
 (h) Efficiency,
 (i)Decision making power,
 (j) Reliability
Contt.
Chester I. Bernard explained five qualities of

leadership
Alertness and politeness, (b) Firmness (c) Ability to
motivate, (d) Feeling of responsibility, (e) Intellectual
capacity
Erwin H. Schell explained three qualities of an
effective leader-
Love and affection towards people, (b) sound physique,
(c) psychological approach
Contt.
Behavioral Theories of Leadership
The Behavioral Theory of Leadership. In response to the
early criticisms of the trait approach, theorists began to
research leadership as a set of behaviors. According to
this theory, leadership involves an interpersonal
relationship between a leader and subordinates in which
the bahaviour of the leader towards the subordinates
constitute the most critical element. The good bahaviour
of the leader raises the morale and lack of good
bahaviour will discard him as a leader.
Contt
Michigan Studies: These studies were conducted after
world war II by the Institute of social Research at the
University of Michigan with the purpose of identifying
styles of leadership behaviour that results in higher
performance. The studies identified two distinct styles of
leadership-
 Production Centered Leadership- Also known as task oriented
leadership, it stressed on the following points-

Rigid work standards, rules, regulations and procedures
Close supervision of the subordinates
Employees were not to be considered as human beings
but as tools to accomplish the goals in organization.
Contt.
Employee Centered Leadership- Also known as

relationship oriented leadership, this approach
focuses on the following points-
◦ To treat subordinates as human beings.
◦ To show concern for the employees needs, and
welfare etc.
◦ To encourage employee participation in goal setting
and in other work related decisions.
◦ To ensure high performance by inspiring trust and
respect.
Motivation
Motivation
Motivation: The result of the interaction between the
individual and the situation.
The processes that account for an individual’s
intensity, direction, and persistence of effort toward
attaining a goal – specifically, an organizational goal.
FEATURES OF MOTIVATION
It is an internal feeling and forces a person to action.
It is a continuous activity.
It varies from person to person and from time to time.
It may be positive or negative.

Contt.
Maslow's Hierarchy of Needs

Maslow Abraham proposed his theory in the
1940s. This theory, popularly known as the
Hierarchy of Needs assumes that people are
motivated to satisfy five levels of needs,
 Physiological,
 Security,
 Belongingness,
 Esteem and
 Self-actualization needs.
Contt.
Contt.
Maslow suggested that the five levels of needs are
arranged in accordance with their importance,
starting from the bottom of the hierarchy.
An individual is motivated first and foremost to
satisfy physiological needs.
When these needs are satisfied, he is motivated
and 'moves up' the hierarchy to satisfy security
needs.
This 'moving up process continues until the
individual reaches the self-actualization level.
Contt.
Physiological needs represent the basic issues of survival
such as food, sex, water and air. In organizational settings,
most physiological needs are satisfied by adequate wages
and by the work environment itself, which provides
employees with rest rooms, adequate lighting,
comfortable temperatures and ventilation
Security or safety needs refer to the requirements for a
secure physical and emotional environment.
Examples include the desire for adequate housing and
clothing, the need to be free from worry about money and
job security and the desire for safe working conditions.
Security needs are satisfied for people in the work place
by job continuity
Contt.
Belonging or social needs are related to the, social aspect
of human life. They include the need for love and
affection and the need to be accepted by one's peers.
Esteem needs actually comprise of two different sets of
needs:
The need for a positive self-image and self-respect.
The need for recognition and respect from others.
Self-actualization needs these needs involve realizing
one's potential for continued growth and individual
development. process of contributing to actual
organizational performance helps employees experience
personal growth and development associated with self-
actualizing.
Contt.
'X' AND ‘Y' THEORIES OF MOTIVATION:
Douglas McGregor observed two diametrically opposing
viewpoints of managers 'about their employees;
One is negative called "Theory of X" and another is positive
called "Theory of Y". I
Theory of X Following are the assumptions of managers who
believe in the "Theory of X" regarding their employees.
 Employees dislike work.
 Employees must be coerced, controlled or threatened to do
the work.
 Employees avoid responsibilities and seek formal direction.
 Most employees consider security of job, most important of
all other factors in the job and have very little ambition.
Contt.
Theory of Y
 Following are the assumptions of managers who
believe in the "Theory of Y" regarding their
employees.
 Employees love work as play or rest.
 Employees are self-directed and self-controlled and
committed to the organizational objectives.
 Employees accept and seek responsibilities.
 Innovative spirit is not confined to managers alone,
some employees also possess it.
Contt.
NEW APPROACHES TO MOTIVATION IN ORGANIZATIONS:
New approaches are emerging to supplement the

established models and theories of motivation. One of
the most promising is Goal-Setting Theory
Goal-Setting Theory:
This approach to motivation has been pioneered in the
USA by Edwin Locke and his associates in 1960s and
refined in 1980s.
Goal-setting theory suggests that managers and
subordinates should set goals for an individual on a
regular basis.
Contt.
 Rewards should be tied directly to accomplished goals.
When involved in goal-settings, employees see how their
effort will lead to performance, rewards and personal
satisfaction.
Salient features of this theory are as follows:
 Specific goal fixes the needs of resources and efforts.
 It increases performance.
 Difficult goals result higher performance than easy job.
 Better feedback of results leads to better performances
than lack of feedback.
 Participation of employees in goal has mixed result.
 Participation of setting goal, however, increases
acceptance of goal and involvements
Communication
“Communication is a process in which sender
send the message and receiver receive the
message and get response “
Meaning of Communication
Defining Communication
Communication occurs if, and only if, information
moves from the input to one process to the
output from a second process, the latter process
being the inverse of the first process.
We may define communication in a precise and
information-based manner using the
characteristics above, allowing us to understand
the mechanisms underlying communication.
Types of Communication
 Verbal Communication:(words, sounds, speech or

language)
 Non-Verbal Communication: (communicating
through, touch, gestures, body motion)
 Visual Communication: (use paintings,
photographs, or a video presentation to relay a
message)
 Written Communication: (Article writing, emails,
reports, chatting, and sending text messages are
forms of written communication)
The purpose of Communication
The main purpose of communication are :
(i) Conveying the right message to persons concerned.
(ii) Coordinating the efforts of all those who are engaged
in the business.
(iii) Development of managerial skill and understanding.
(iv) Maintaining good industrial relations.
(v) Assessing the effectiveness of policies, practices,
behaviour and procedures etc.
Features of Communications
Features of communications are as fallows,
(i) Communication is a two-way traffic.
(ii) It is a continuous and unending process.
(iii) It is a short-lived process and lasts till the other
person understands the message.
(iv) The main purpose of communication is to make
the message understandable to others.
(v) It aims at achieving the organizational objectives.
(vi) It dispels the misunderstanding between
persons.
Principles of effective communication
 Principle of clarity, i.e., every point in the communication
should be clear having no ambiguity and conveying the same
sense and spirit.
 Principle of attention, i.e., Communication must draw
attention of the communicate.
 Principle of consistency : This principle implies that
communication should always be consistent with the plans,
objectives, policies and programmes of the organization and not
conflicting. Inconsistent messages always create chaos and
confusion.
 Principle of Adequacy : This implies that the information
should be adequate and complete in all respect. Incomplete and
inadequate information delays actions and destroys
understanding and relations.
Contt.
 Principle of Integration : Communication is a means to
an end and not an end in itself. It should promote co-
operation among people at work to achieve the
organizational objectives.
 Principle of Timeliness : Information of ideas should be
communicated at the proper time. Any delay in
communicating the messages will serve the purpose
 Principle of Informality : Formal communication,
however is important in a formal organization but
informal communication does not lose its place in the
organization. Managers or executives should become
much informal in their behaviour with his subordinates.
Contt.
 Principle of Purposefulness : Communication should have a
purpose. One's image must improve by his communication. The
purpose for which communication was used must be achieved.
 Principle of Empathetic Listening : This is used to draw out
the other person. The goal is to understand the speaker's
(sender's) feelings, needs and wants in order to help him solve a
problem.
 Proper Language : Simple and proper language have to be
used in communication.
 Two Way Communication : Effective communication
necessitates a minimum of two participants who should interact
with each other. In other words, there should be transmission,
reception and exchange of ideas from both sides.
Contt.
 Credibility in Communication: The matter in
the communication should be a believable and
faithful matter.
 Orientation of Employees: Communication
should be an instrument to explain the situation to
the employees.
 Feedback: Communication should help to
improve quality and to make self-correction of
errors.
 Gesture and Tone: Communication should have
courtesy and diplomacy.
Process of Communication
Normally, communication is known as interpersonal, wherein
the information or message is transferred from one person to
the others.
Transmitting person of the message is called the sender or
transmitter. Receiver of message is called the receiver. The
process of converting information that has to be sent, into a
format which the receiver can understand is known as
encoding.
Information can be encoded into various formats – oral,
written or visual. To show each of the formats we had to go
through a medium called channel.
There are many channels of communication which may be a
letter, memorandum, computer, telephone, fax, telegram or a
television.
Contt.
Principles of Communication
Communication is a two-way process of giving and
receiving information through any number of
channels. Whether one is speaking informally to a
colleague, addressing a conference or meeting,
writing a newsletter article or formal report, the
following basic principles apply:
Know your audience.
Know your purpose.
Know your topic.
Anticipate objections.
Present a rounded picture.
Contt.
Achieve credibility with your audience.
Follow through on what you say.
Communicate a little at a time.
Present information in several ways.
Develop a practical, useful way to get
feedback.
Use multiple communication techniques.
AUTHORITY
Meaning and Concept of Authority:-
Authority is the right to perform or command. It
allows its holder to act in certain designated ways
and to directly influence the actions of others
through orders.
It also allows its holder to allocate the organization’s
resources to achieve organizational objectives.
Barnard defines authority as the character of
communication by which an order is accepted by an
individual as governing the actions that individual
takes within the system.
Contt.
Barnard maintains that authority will be accepted
only under the following conditions:
 The individual can understand the order being
communicated.
 The individual believes the order is consistent
with the purpose of the organization.
 The individual sees the order as compatible
with his or her personal interests.
 The individual is mentally and physically able
to comply with the order.
Contt.
Barnad offers some guidance on what managers can do to raise

the odds that their commands will be accepted and obeyed
 The manager uses formal channels of communication and
these are familiar to all organization members.

 Each organization member has an assigned formal
communication channel through which orders are received.

 The line of communication between manager and subordinate
is as direct as possible.

Contt.
 The complete chain of command is used to
issue orders.
 The manager possesses adequate
communication skills.
 The manager uses formal communication lines
only for organizational business.

 A command is authenticated as coming from a
manager.
Contt.
TYPES OF AUTHORITY: Three main types of authority
can exist within an organization:
Line Authority, Staff Authority & Functional Authority
LINE AUTHORITY: The most fundamental authority within
an organization, reflects existing superior-subordinate
relationships. It consists of the right to make decisions and to
give order concerning the production, sales or finance related
behaviour of subordinates.
 In general, line authority pertains to matters directly
involving management system production, sales, finance etc.,
and as a result with the attainment of objectives.
 People directly responsible for these areas within the
organization are delegated line authority
Contt.
 STAFF AUTHORITY:
 Staff authority consists of the right to advise or assist
those who possess line authority as well as other staff
personnel.
 Staff authority enables those responsible for improving
the effectiveness of line personnel to perform their
required tasks. Line and Staff personnel must work
together closely to maintain the efficiency and
effectiveness of the organization.
 Size is perhaps the most significant factor in determining
whether or not an organization will have staff personnel.
The larger the organization, the greater the need and
ability to employ staff personnel.
Contt.
FUNCTIONAL AUTHORITY:-
 Functional authority consists of the right to give orders
within a segment of the organization in which this right is
normally non existent.
 This authority is usually assigned to individuals to
complement the line or staff authority they already
possess.
 Functional Authority generally covers only specific task
areas and is operational only for designated amounts of
time. It is given to individuals who, in order to meet
responsibilities in their own areas, must be able to exercise
some control over organization members in other areas.
Delegation
Delegation: Delegation means assigning an authority and
task to another person, normally from a superior to a
subordinate for some specific tasks to be carried out.
 Oftentimes in an organization, it becomes impossible for
one individual to handle all the tasks on his own, so
having some activities done by other member of the
organization becomes necessary.
 There is a limit to the number of tasks a certain individual
can handle. Once this limit has been crossed, authority or
responsibility has to be delegated to subordinates.
 However, the individual who delegated the tasks remains
accountable for the
Contt.
Délégation of Authority- Delegation of Authority is defined as
a flow of work from a senior, who delegates command &
authority, to a subordinate.
Delegation of authority is done for better management of the
total work with increased efficiency. Delegation means the
process of dividing work among the reportees to take
decisions.
Delegation of Authority is defined as a flow of work from a
senior, who delegates command & authority, to a
subordinate. Delegation of authority is done for better
management of the total work with increased efficiency.
Delegation means the process of dividing work among the
reportees to take decisions
Contt.
Importance of Délégation of Authority:
Delegation is simply giving or allotting certain task or work to
a subordinate. However, a manager can give his or her
subordinate the power to make certain decisions also. This
means the subordinates also have authority to make decisions
on manager's behalf so that the work is done without
burdening the manager or the personal who delegated the
work. In delegation of authority, the power given to the
subordinate is within the scope of the work assigned and not
beyond it
This is an important concept as it helps in a smooth functioning
of a company, motivates the subordinates to be bold and
trains subordinates to take decisions. It also is a way to share
responsibility at workplace and be more accountable.
Contt.
Advantages of delegation of authority
1. It helps the organization to grow at a better rate as both
the seniors and junior share work and responsibility
2. Delegation of authority boost their self confidence and
helps them improve their motivation to perform
3. Employees get better skills on the job and better prepared
for more trainings
4. The overall decision making process of the company gets
quicker by delegation of authority as more minds work on
it
5. It helps in quicker expansion of workforce and more
leaders are created
Organisational Change
Meaning:
Change is the Law of nature. Everything be it
living creatures, seasons, political & economic
environment, social & cultural environment,
technology & systems, keep on changing.
Change may be good or bad, slow or rapid,
spontaneous or planned, permanent or
temporary, controllable or uncontrollable, but,
change is a part of life. Therefore, it becomes
necessary to understand it from an
organisational perspective.
Contt.
 Some of the important definitions are as follows-

“Change is concerned with making things
different.” – Stephen Robbins
 Organizational change is the movement of an
organization move from their present state to
some desired future state to increase
effectiveness. J.M. George & G.R. Jones

Reasons for Organisational Change
 Macro Economic change: This include the

import/export policy of government, change in
interest rates, the legislations regarding business
and industry. An organisation can not escape these
changes.
 Technology: Technology is the major external
force which calls for change. The adoption of new
technology such as computers, telecommunication
systems and flexible manufacturing operations
have profound impact on the organizations that
adopt them.
Contt.
Social Changes:
There are a lot of social changes due to spread
of education, knowledge and a lot of
government efforts. Social equality, e.g., equal
opportunities to women, equal pay for equal
work, has posed new challenges for the
management. The management has to follow
certain social norms in shaping its
employment, marketing and other policies.
contt,.
 Change in Managerial Personnel: Change in
managerial personnel is another force which brings about
change in organization. Old managers are replaced by
new managers which are necessitated because of
promotion, retirement, transfer or dismissal. Each
manager brings his own ideas and way of working in the
organization.
 Deficiencies in Existing Management Structure:
Sometimes change are necessary because of some
deficiencies in the existing organizational structure,
arrangement and processes.
Reasons for Resistance to Change
Change is not very often welcomed in organisations.

Infact, people dislike changes. Resistance to
change. The reasons are specified are as follows:
 Fear of the Unknown: Changes often bring with
it ambiguity and uncertainty. If, for example, the
introduction of a new computer system requires
that the employees learn some specific statistical
technique, some may fear they will be unable to
do so. They may, therefore, develop a negative
attitude toward the introduction of new computer
system.
contt
 New Learning: For doing new task, one requires
to learn a new language, develop a new
technology, or adjust to a totally new culture.
Some times its become reasons for resistance to
change.
 Disruption of Stable Friendship: Almost all
organizational changes disrupt the previous stable
friendship. This is turn, results in uncomfortable
feelings of social isolation and loneliness. This
may serve as a source of indirect resistance to
change.
Strategies for managing Resistant to change
 Education & Communication:

One of the best ways to overcome resistance to
change is to educate people about the change effort
beforehand. Up-front communication and education
helps employees see the logic in the change effort.
 Participation & Involvement:
When employees are involved in the change effort
they are more likely to buy into change rather than
resist it
Contt.
 Facilitation & Support:

Managers can head-off potential resistance by
being supportive of employees during
difficult times. Managerial support helps
employees deal with fear and anxiety during
a transition period. This approach is
concerned with provision of special training,
counseling,
Process of Change in Organization
Organisational change is a complicated process. It is a step by
step and continuous process. Planning is required in
organizational change. Various steps are involved in planned
organizational change.
Identifying Need for change - In this step it is necessary to
identify when change in the organization is required.
Care of the impact of external and internal forces.
Identification for need for change depends upon the gap
analysis. That is the gap between desired state of affairs and
actual state of affairs.
It is the difference between what the organization is achieving
and what it should achieve.
Contt.
Elements to be changed:
What elements of the organization should
be changed will largely be decided by
need and objectives of change.
Example is a change in technology from
manual to automation may require change
in people but at the same time, change in
organization structure also.
Contt.
Planning for Change
At this stage, change is planed on the basis of the
above two process.
Planning for change includes: – Who will bring
change? – When to bring change? – How to
bring change?
Assessing Change Forces
The planed change is not automatic, rather there
are many forces in individuals, groups and even
in the organization which resist such change.
Contt.
Action for change: Action for change consists of four stages:
Unfreezing: In this process, all the old concepts are washed
off.
Changing: In this process, the individuals change and adopt
new method of working, perception of new roles etc.
Refreezing: In this process, whatever change is made is
inculcated in actual practice.
Feedback: Feedback is the process in which it is seen what is
being planned is actually going in right direction or not. It is
necessary to take regular feedback, so that the planned
action should be implemented correctly.
Change Model
Lewin’s Change Management Model:
Lewin’s Change Management Model is one of the most
popular and effective models that make it possible for us
to understand organizational and structured change.
This model was designed and created by Kurt Lewin in
the 1950s, and it still holds valid today.
Lewin was a physicist and social scientist who explained
the structured or organizational change through the
changing states of a block of ice.
His model consists of three main stages which are:
unfreeze, change and refreeze.
Contt.
Unfreeze
Change
Refreeze
Contt.
Unfreezing: The first stage of the process of change
according to Lewin’s method involves the preparation
for the change.
 This means that at this step, the organization must get
prepared for the change and also for the fact that
change is crucial and needed.
 This phase is important because most people around the
world try to resist change,
 The key here is to explain to people why the existing
way needs to be changed and how change can bring
about profit.
“Organizational
Culture”
Contt.
Meaning of Organizational culture:

Every company has its own unique personality, just like
people do. The unique personality of an organization is
referred to as its culture. In groups of people who work
together, organizational culture is an invisible but
powerful force that influences the behavior of the
members of that group. So, how do we define
organizational culture.
Organizational culture is a system of shared assumptions,
values, and beliefs, which governs how people behave in
organizations
Contt.
Definition:
Organizational culture is civilization in the
workplace.” — Alan Adler
Organizational culture is the sum of values and

rituals which serve as ‘glue’ to integrate the
members of the organization.” — Richard Perrin
Culture is how organizations ‘do things’.”

Robbie Katanga
Characteristics of Organizational Culture
Innovation (Risk Orientation) : - Companies with

cultures that place a high value on innovation
encourage their employees to take risks and
innovate in the performance of their jobs.
Companies with cultures that place a low value on
innovation expect their employees to do their jobs
the same way that they have been trained to do
them, without looking for ways to improve their
performance.
contt,.
Achievement Orientation:
Companies that focus on results, but not on how the results
are achieved, place a high emphasis on this value of
organizational culture.
Emphasis on People:
Companies that place a high value on this characteristic of
organizational culture place a great deal of importance on
how their decisions will affect the people in their
organizations., it is important to treat their employees with
respect and dignity
Contt.
Teamwork :Companies that organize

work activities around teams instead of
individuals place a high value on this
characteristic of organizational culture.
People who work for these types of
companies tend to have a positive relationship
with their co-workers and managers.

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Principles of Management

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PRINCIPLES OF MANAGEMENT

Labor for the future 2

Labor for the future 3

Labor for the future 5

Labor for the future 7

Labor for the future 8

Labor for the future 9

Management has got two faces like a coin;

Labor for the future 12

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Labor for the future 14

Labor for the future 15

Financial Management: Financial management

Labor for the future 17

Contingency Approach to Management:

Labor for the future 27

Labor for the future 28

4. Unity of Direction People engaged in the same

Labor for the future 29

Labor for the future 31

Labor for the future 32

Labor for the future 33

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Labor for the future 44

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Labor for the future 47

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Labor for the future 60

Positivity “In order to achieve greatness, you must create

Chester I. Bernard explained five qualities of

leadership, it stressed on the following points-

Employee Centered Leadership- Also known as

Maslow's Hierarchy of Needs

NEW APPROACHES TO MOTIVATION IN ORGANIZATIONS:

New approaches are emerging to supplement the

 Verbal Communication:(words, sounds, speech or

Barnad offers some guidance on what managers can do to raise

 Some of the important definitions are as follows-

 Macro Economic change: This include the

Change is not very often welcomed in organisations.

 Education & Communication:

 Facilitation & Support:

Meaning of Organizational culture:

Organizational culture is the sum of values and

Culture is how organizations ‘do things’.”

Innovation (Risk Orientation) : - Companies with

Teamwork :Companies that organize

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