Management Principles

Section With T.A/ Nancy

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• What does management mean?
• Does management exist in all companies with
different sizes, small companies or large
companies, profit-oriented or non-profit
companies.
• and how can we differentiate between
management and management?

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• what the decision-making process is,
and are all the decisions supported
by the law

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 What is Management?
• There are many definitions for the word ‘management’, but
most emphasize one common idea: it is concerned with the
achievement of objective through the efforts of the people
performing certain function
• Management is the accomplishment of results through the
efforts of other people
• Management is the art of getting things done through and
with the people in formally organized groups.

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 What is Management?
• Management is the process by which managers create,
direct, maintain and operate purposive organization
through systematic, coordinated, cooperative human
effort.
• Management is the coordination of all resources through
the process of planning, organizing, leading, and
controlling in order to achieve objectives.

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 What is Management?
• We can broadly define the term ‘Management’ as
concerned with resources, tasks and goals.

• Finally, Management is the process of planning,

organizing, leading and controlling to achieve
organizational objective through the coordinated use of
human and material resources.

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• Before setting the organization’s goal, the
organization’s capabilities, resources, strengths and
weaknesses must be identified in order to set
realistic and achievable goals
• through information provided by middle
management and executive management

1. Conduct an analysis that reflects the company’s internal

conditions and capabilities.
2. Assess the company’s external environment, including
both the competitive and the general contextual factor

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 Strength - opportunities
• Increasing the number of resources
• Increasing the organization’s cash flow
• Increase customer loyalty
• Employee satisfaction
• Decreased inventory turnover
• Change in the currency rate
• A merger between two companies
• Competitors exit from the market
• Increased taxes
• Liquidation
• barriers to market entry
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qualified labor
Brand strength
Good reputation with customers in the market.
Wide distribution network in the market.
Competitive prices for products

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 Weaknesses
• Decreased sales volume
• reduced cash flow
• increased loans
• decreased product quality
• defective products
• untrained labor
• no after-sales service

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 internal
strengtht Weaknesses
............................................ ............................................
.......................................... ..........................................
external environment
Opportunities Threats
............................................ ............................................
.......................................... ..........................................
• Objective must include some criteria in order to
achieve it successfully

1-it should be specific clear because all people of

the organization will contribute to achieve it
2-Measurable in order to facilitate the
measurement of it
3- acceptable according on organization capability
4-realistic
5-time related
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 Management as a Process
• Management as a process refers to a group of
inter-related functions, such as planning,
organizing, leading and controlling.
• Management process suggest that all managers
perform certain functions in order to realize goals.
• Management is a social process concerned with
relations among people at wok.
• A manager sets the objectives of an organization,
and creates a work environment which is helpful
to the achievement of the organizations’ goals.
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 Management vs. Administration

Management is the wider than administration

administration handles the current problems.

management is an covering and comprehensive

term and administration is a part of it .
.
administration is just an implementing work.

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 Management vs. Administration
management administration

Nature Thinking function (what is to be done Doing function

and when) (how should do it .)

scope Determines objectives and policies Implements plan and achieves goals
through people
level Top level function Middle and lower level function

Skills needed Conceptual and human skills Technical and human skills

Represents Owners who invest capital and Paid individuals who work for fees
receive profits

Usage Mostly in government ,educational Business organization

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 Management as an Activity
• Management refers to a separate class of activities which
are performed by managers.

• Managerial activity consists of planning, organizing,

leading and controlling. These activities are performed to
get the work done by and with people.

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 Management as an Economic Resource

• Management is one of the factors of production with

land, labor, and capital.

• In the modern firm the effective use of the five M’s of

management (money, materials, manpower, machinery,
and methods of ways of doing processes)

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 Management as a System of Authority

• Top management: Managers working at top levels enjoy

more authority than people working at lower levels.
determines objectives and provides direction to
organization activities.

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 Management as a System of Authority

• Middle management: (departmental heads like work

manager, finance manager)

 understand and explain the policies by the top

management,
 transfer orders, instruction and decisions downward,
 carry the problems and recommendation upward.

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 Management as a System of Authority

• Lower management (first line supervisors) is

concerned with routine day- to-day matters.

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