Principles of Management

Management
 The art of getting things done through the efforts of other people (Mary
Parker Follet).

 Management involves coordinating and overseeing the work and

activities of others so that their objectives are completed efficiently and
effectively.

 Efficiency is getting the most output from the least amount of inputs in
order to minimize resource costs. Efficiency is often referred to as “doing
things right”.

 Effectiveness is completing activities so that organizational goals are

attained and is often described as “doing the right things”.

 Coordinating and overseeing the work of others is what distinguishes a

managerial position from a non-managerial one.
 Characteristics of Management
• Distinct process
• Organized activity
• Accomplishment of predetermined objectives.
• Both a science and an art
• Group activity
• Principles are universal in nature
• Integrates human and other resources
• Pervasive in nature
• Dynamic function
 Management as a science
• Systematized body of knowledge

• Scientific methods of observation, experimentation and laboratory research (e.g., F. W.

Taylor’s scientific management)

• Principles are firmly based on observed phenomena, and systematic classification and
analysis of data

• These analyses and study of observed phenomena are used for inferring cause-effect
relationships between two or more variables

• Generalizations about these relationships result in hypothesis

• The hypothesis when tested and found to be true are called principles

• These principles are applied to practical situations

• Management is a social science, and deals with the behaviour of people in organization.
Limitation-Management as a Science
• Management principles are not fundamental
truths (not a exact science)

• Principles of management do not have a

universal application (soft science or
behavioural science)

• Management lacks certainty of results

 Management as an art
• Management as a body of knowledge and a discipline is a science;
its application to the solution of organizational problems is an art.

• It is systematic application of skill or knowledge in effecting

accomplishment of results

• It represents the methods or ways of doing specific thing and

indicates how an objective is to be achieved

• Every art is practical and is concerned with creation of something

 The principles of management
• The principles of management, then, are the
means by which you actually manage, that is, get
things done through others—individually, in
groups, or in organizations.

• The principles of management are the activities

that “plan, organize, and control the operations
of the basic elements of [people], materials,
machines, methods, money and markets,
providing direction and coordination, and giving
leadership to human efforts, so as to achieve the
sought objectives of the enterprise” (Henri Fayol).
 14 Principles of Management- By
Henri Fayol
• Division of labor
• Authority and responsibility
• Discipline
• Unity of command
• Unity of direction
• Subordination of individual interest to common interest
• Remuneration
• Centralization
• The hierarchy
• Order
• Equity
• Stability of staff
• Initiative
• Espirit de corp
Levels of Management
 FUNCTIONS OF MANAGEMENT

Planning
Organizing
Staffing
Leading.
Controlling
 PLANNING

• Planning is determining the objectives and formulating

the methods to achieve them. It is more simply said
than done. A job well planned is half done. During
planning one needs to ask oneself the following:
• What am I trying to accomplish i.e. what is my
objective?
• What resources do I have and do I need to accomplish
the same?
• What are the methods and means to achieve the
objectives?
• Is this the optimal path?
 Types of Planning
• Purpose or Mission
• Objectives-It is the ultimate goal towards which the activities of the
organization are directed
• Strategies-general program of action and deployment of resources
• Policies-general statement or understanding which guide or
channel thinking in decision making
• Procedures-states a series of related steps or tasks to be performed
in a sequential way
• Rules-prescribes a course of action and explicitly states what is to
be done
• Programs-comprehensive plan that includes future use of different
resources
• Budgets-statement of expected results expressed in numerical
terms
 Principles of Planning
• Take Time to Plan
• Planning can be Top to Down or Bottom to Top
• Involve and Communicate with all those
Concerned
• Plans must be Flexible and Dynamic
• Evaluate and Revise
 Steps in Planning
1. Determining the goals or objectives for the
entire organization.
2. Making assumptions on various elements of the
environment.
3. To decide the planning period.
4. Examine alternative courses of actions.
5. Evaluating the alternatives.
6. Real point of decision making
7. To make derivative plans.
 Process of Organizing
• Determine what is to be done/ Division of Work:
• Assign Tasks: Departmentalization:
• Link Departments: Hierarchy Development:
• Decide how much Authority to Designate/
Authority, Responsibility and Delegation:
• Decide the Levels at which Decisions are to be
made / Centralization vs. Decentralization:
• Decide how to Achieve Coordination:
Techniques for achieving coordination.
• Coordination by Rules or Procedures
• Coordination by Targets or Goals:
• Coordination through the Hierarchy
• Coordination through Departmentalization
• Using information system:
• Using a Liaison for Coordination
• Using a Committee for Coordination
• Coordination through Mutual Adjustment
 STAFFING
Definition 1
• Selecting and training individuals for specific
job functions, and charging them with the
associated responsibilities.
Definition 2
• Number of employed personnel in an
organization or program. Also called
workforce.
 DIRECTING/LEADING
• Provides positive and dynamic leadership
• Provides maximum opportunities
• Provides proper motivation of personnel
• Ability to command people
 CONTROLLING CONCEPTS
• Feed Forward Control-Control that attempts to
identify and prevent deviations before they occur
is called feed forward control, sometimes called
preliminary or preventive control.
• Concurrent Control-Control that monitors
ongoing employee activities during their
progress, to ensure they are consistent with
quality standards, is called concurrent control.
• Feedback Control-In this case, the control takes
place after the action. Sometimes called post-
action or output control
 Steps in the Control Process
• Establish Standards of Performance
• Measure Actual Performance
• Compare Performance to Standards:
• Take Corrective Action
 Principles of Effective Control
• Effective controls are timely.
• Control standards should encourage compliance.
• Setting effective standards is important
• Use management by exception.
• Employees should get fast feedback on
performance.
• Do not over rely on control reports.
• Fit the amount of control to the task.
 Management Roles
• The set of specific tasks that a person is expected to
perform because of the position he or she holds in the
organization

• Henry Mintzberg has identified three sets of roles that

managers must be prepared to perform on a daily basis.

– Interpersonal roles include figurehead, leadership, and liaison

activities

– Informational roles include monitoring, disseminating, and

spokesperson activities

– Decisional roles include entrepreneur, disturbance handler,

resource allocator, and negotiator.
Management Roles
 Interpersonal roles
• Interpersonal roles involves working directly
with other people. It include:

– Figurehead: Hosting and attending official ceremonies

– Leader: Creating enthusiasm and serving people’s needs

– Liaison: Maintaining contacts with important people and groups

 Informational roles
• The informational roles involve exchanging
information with other people. It include

– Monitor: Seeking out relevant information

– Disseminator: Sharing relevant information with

insiders

– Spokesperson: Sharing relevant information with

outsiders
 Decisional roles
• The involve making decisions that affect other
people. It include
– Entrepreneur: Seeking out problems to solve and
opportunities to explore

– Disturbance Handler: Helping to resolve conflicts

– Resource Allocator: Allocating resources to various

uses

– Negotiator: Negotiating with other parties

 MANAGERIAL SKILLS

CONCEPTUAL

HUMAN

• TECHNI
• CAL
 Managerial Skills
• Robert L. Katz divides the essential
managerial skills into three categories:
technical, human, and conceptual.
 Technical Skills
• An ability to perform specialized tasks

• Such ability derives from knowledge or expertise

gained from education or experience

• This skill involves proficiency at using select methods,

processes, and procedures to accomplish tasks.

• e.g., word processing, database management,

spreadsheet analysis, E-mail.
 Human Skills
• The ability to understand, alter, lead, and control the behavior of other
individuals and groups

• The ability to work well with other people

• It emerge as a spirit of trust, enthusiasm, and genuine involvement in

interpersonal relationships

• A person with good human skills will have a high degree of self-
awareness and a capacity for understanding or empathizing with the
feelings of others

• People with this skill are able to interact well with others, engage in
persuasive communications, deal successfully with disagreements and
conflicts, and more
 Conceptual Skill
• The ability to analyze and diagnose a situation and
distinguish between cause and effect

• The capacity to analyze and solve complex and

interrelated problems

• Ability to see and understand how the whole

organizational system works, and how the parts are
interrelated.

• Conceptual skill is used to identify problems and

opportunities, gather and interpret relevant information,
and make good problem-solving decisions
Skills and Management Level
 Management Styles
• Managers have to perform many roles in an
organization and how they handle various situations
will depend on their styles of management.

• A management style is an overall method of leadership

used by a manager.

• Every leader has a unique style of handling the

employees (Juniors/Team). The various ways of dealing
with the subordinates at the workplace is called as
management style
 Styles
• Three main styles:
Autocratic
Democratic
Laissez-faire
• Others are
– Paternalistic Style
– Management by Walking Around
 Autocratic
• An autocratic or authoritarian manager makes all the
decisions, keeping the information and decision making
among the senior management.

 the direction of the business will remain constant, and

the decisions will be quick and similar, this in turn can
project an image of a confident, well managed business.

 subordinates may become dependent upon the leaders

and supervision may be needed;

 this style can decrease motivation and increase staff

turnover
 Democratic (participative)
• The manager allows the employees to take part in decision-making

• Everything is agreed by the majority (empowerment)

 this style can be particularly useful when complex decisions need

to be made that require a range of specialist skills;

 from the overall business' point of view, job satisfaction and

quality of work will improve.

 the decision-making process is severely slowed down, and the

need of a consensus may avoid taking the 'best' decision for the
business.
 Laissez-faire (free-rein)
• The leader delegates much authority to employees

• the leader's role is peripheral and staff manage their own areas of
the business.

 the style brings out the best in highly professional and creative
groups of employees.

 the leader therefore evades the duties of management and

uncoordinated delegation occurs;

 this leads to a lack of staff focus and sense of direction, which in

turn leads to much dissatisfaction, and a poor company image
 Paternalistic Style of Working

– the leaders decide what is best for the employees as well

as the organization. Policies are devised to benefit
the employees and the organization

– The suggestions and feedback of the subordinates are

taken into consideration before deciding something.
– In such a style of working, employees feel attached and
loyal towards their organization.
• Employees stay motivated and enjoy their work rather
than treating it as a burden
Management by Walking Around

– In the above style of working, managers treat

themselves as an essential part of the team and are
efficient listeners.
– The superiors interact with the employees more
often to find out their concerns and suggestions.
– In such a style of working, the leader is more of a
mentor to its employees and guides them whenever
needed.
– The managers don’t lock themselves in cabins; instead
walk around to find out what is happening around
them