AMITY

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PRINCIPLES OF
MANAGEMENT
By: Sonia Singh
sonia23singh@gmail.com
 What Is an Organization?
A group of people working together in a
structured and coordinated fashion to achieve a
set of goals.
The Organization’s Environments
•External environment: everything outside
an organization’s boundaries that might
affect it. The uncontrollable environment.
•Internal environment: the conditions and
forces within an organization. The
controllable environment.
The Organization and Its Environments
A Model of Organizational
Effectiveness
 What Is Management?
• A set of activities (including planning and decision
making, organizing, leading, and controlling) directed
at an organization’s resources (human, financial,
physical, and informational) with the aim of achieving
organizational goals in an efficient and effective
manner.

• Management is a process of assembling and using sets

of resources in a goal-directed manner to accomplish
tasks in an organisational setting.
 Management-Definition
• 1 Functional School
• 2 Human Relation School
• 3 Decision Making School
• 4 Systems & Contingency School
 Functional School
• Dalton Mc Farland
• It is a process a manager create, direct,
maintain and operate purposive organizations
through coordinated and cooperative human
effort.
 Functional School
• Henry Fayol
• To manage is to forecast and to plan, to
organize, to command ,to coordinate and to
control.
 Human Relation School
• Lawrence A. Appley
• Management is the accomplishment of result
through the effort of other people.
 Human Relation School
• Herold Koontz
• Management is the art of getting things done
through and with people in formally organized
group.
 Decision Making School
• W.E. Moore
• Management means Decision Making.
 Systems School
• Organisation as a system
• Consists of interdependent and interrelated
parts
• Management is to strike a balance among
these parts
 Contingency School
• Management is situational
• There is no one best technique for all situation
 The Nature of Management

The manager’s job is fraught with:

– Uncertainty
– Change
– Interruption
– Fragmented activities
 Characteristics of Management
• Management is intangible
• Management is goal oriented
• Management is universal
• Management is a social process
• Management is a group activity
• Management is a system of authority
• Management is dynamic
• Management is science as well as an art
• Management is multidisciplinary
• Management is a profession
 Principles of Management
Fayol’s 14 principles of management
• Division of work
• Authority
• Discipline
• Unity of command
• Unity of direction
• Subordination of individual interests to the general interest
• Remuneration
Principles of Management Contd…
• Centralization
• Scalar chain
• Order
• Equity
• Stability and tenure of personnel
• Initiative
• Esprit de corps
 Scope of management
According to Herbison and Myers, management
may be understood as:

•Management as an economic resource

•Management as a system of authority
•Management as a class or elite
 Management as an Art
• Art involves practical application of personal
skill and knowledge to achieve concrete result.
 Management as an Art
• Main elements of art are:
• 1 Personal Skills
• 2 Practical Know-how
• 3 Result Orientation
• 4 Creativity
• 5 Constant Practice aimed at perfection
 Management as an Science
• Main elements of Science are:
• 1 Systematized body of knowledge
• 2 Principles & Theories
• 3 Universal Applicability
• 4 Taught & Learned inside and outside the
class room
 INPUTS OUTPUTS

Planning Organizing Staffing Directing •Goods

•Men •Services
•Material •Profits
•Machinery •Productivity
•Money •Customer-
•Satisfaction
Controlling

MANAGEMENT AS A PROCESS
 Who Is the Manager?
1. College Dean?
2. Police officer?
3. Surgeon?
4. Web-designer?
5. Football coach?
6. Chef?
7. Managing your checking account?
Figure 1.3: Kinds of Managers by
Level and Area
 Kinds of Managers
Managing at Different Levels of the organization:
“Levels of management refers to a line of demarcation between
various managerial positions in an organisation”
Top Managers
• Small group of executives who manage the overall
organization, the strategic level.
Middle Managers
• A large group that implement the strategies developed at the
top.
First-Line Managers
•Supervise and coordinate the activities of operating employees.
 Who are effective managers?
Based on the research sponsored by the centre for creative leadership,Robert
Kaplan described effective managers as a person who:
•Have vision,think long-term,set direction;
•Are good communicators and good listeners;
•Have good knowledge;
•Understand operations;
•Know where to spend time and how to priorities;
•Do not resist change
•Delegate well;
•Act confidently;
•Accept confidently;
•Are motivating,curious,honest,credible,and decisive
•Can act as role model
Basic Managerial Roles and Skills
Regardless of level or area within an
organization, all managers must play certain
roles and exhibit certain skills in order to be
successful, such as:
– Do certain things.
– Meet certain needs.
– Have certain responsibilities.
 Managerial Skills
• In addition to fulfilling roles, managers also need a
number of specific skills.
• The most fundamental management skills are:
– Technical
– Interpersonal
– Conceptual
– Diagnostic
– Communication
– Decision-making
– Time-management
 How does one acquire the skills necessary
to blend the science and art of management
to become successful managers:sources of
managerial skills
 Managing in Different
Areas of the Organization
• Marketing Managers
• Financial Managers
• Operations Managers
• Human Resource Managers
• Administrative Managers
• Specialized Management
 The Manager’s Job Is To:
PLAN:
– A manager cannot operate effectively unless he or
she has long range plans.
A plan for each day’s work:
– What is to be done, and why do it?
– When is it to be done, and how will it be done?
– Who is to do the job?
– Where should it be done?
 The Manager Must Organize
• When there is more than one employee needed
to carry out a plan.
• Then organization is needed.
• A team must be formed.
• Each job must be carefully defined in terms of
what is to be done.
• Establish delegation of responsibility.
 The Manager Do Staffing
• Determination of number and the kind of personnel
required.
• Recruitment for attracting suitable personnel to seek
job in the enterprise.
• Selection of the most suitable persons for the job.
• Placement and orientation of employees.
• Transfer,promotion,etc. of employees.
• Training and development of employees.
 The Manager Direct/lead
Directing involves determining the course of
action,giving orders and instructions and providing
dynamic leadership;sub functions of directing are:
• Communication
• Leadership
• Motivation
• Supervision
 The Manager Must Control
Control means the process of checking actual
performance against the agreed standards with a
view to ensuring satisfactory performance.it
involves
•Establishment of standards
•Measurement of performance
•Appraisal of performance
•Taking corrective action.
 The Manager Must Coordinate
Coordination is the achievement of orderly group
efforts and unity of actions in pursuit of a common
purpose.It has the following features:
•Orderly arrangements of group efforts
•To secure unity of action towards common
objectives.
•It is needed at all level of management.
•Is the essence of managing.
Planning ,Organizing
 Planning
Planning is an intellectually demanding process;it
requires the conscious determination of courses of
action and the basing of decision on
purpose,knowledge and considered estimates.

Koontz.
Planning is the selecting and relating of facts and the
making and using of assumptions regarding the future
in the visualization and formulation of proposed
activities believed necessary to achieve desired
results.
G.R Terry
 Corporate Planning
“Corporate Planning is a systematic and
comprehensive process of planning taking
account of the resources and capability of the
organization and the environment with in which
it has to operate and viewing the organization as
a total corporate unit “

“Is a process of determining major objectives of

the organization and policies and strategies that
govern the acquisition,use and disposition of
resources to achieve these objectives “
 Types of planning
We can classify planning on the basis of the following
dimensions:

I: Organisational level
•Corporate (Top level)
•Divisional (Middle level)
•Functional (Lower level)
 Contd..Types
II:Focus
of planning
• Strategic: Focus on the broad future of the organization and
incorporate both external environmental demands and internal
resources

• Tactical planning:Translate strategic plans into goals for

specific parts of the organisation

• Operational planning:Translate tactical plans into specific

goals and actions for small units of the organization and focus on
the near terms
 Focus
Strategicbased planningOperational
Tactical
Time-Horizon 3-5 yrs 1-2 yrs 12 months or less

Scope Broadest(organizatBroader(Strategic Narrowest(departme

ion) business unit) ntal or smaller unit)

Complexity Most Comparatively more Least

complex(differ on specific(limited complex(small,hom
the basis of domain of application)ogeneous unit)
industry)

Impact Potential impact Can affect specific Restricted(departme

business only nt)

Interdependenc high moderate low

e
BASIS
Time based
Long range
planning
Medium-range Short-range
Time Span More than 5 yrs More than 1 but less Restricted up to 1
than 5
Focus External Focused on long rangeLinkage between
environment of the plans and internal env. various elements is
business emphasized
Uncertainty Very high moderate low
Specificity The actions are less Specified but details Actions are highly
specified are lacking specified and
detailed
linkage Linked with With long range Instrumental in
corporate objectives planning implementing
medium and long
range plans

Means Strategies and long Policies,procedures,pr Methods,rules,budget

term policies are ogramme and projects s,schedules,etc are
formulated are used employed
 Types of plans
• Standing plans • Single use plans
• objectives • Programmes
• Policies • Schedules
• Procedures • Projects
• Methods • Budgets
• Rules
 Process of planning
Establishment Collection and Developing
of objectives forecasting of planning
information premises

Developing
Appraisal alternatives
of plan

Selection of Evaluation of
Formulation
best alternative alternatives
of derivative
plans
 Approaches to planning
I:Top-down approach

II:Bottom-up approach

III: Composite approach

IV:Team approach
 Decision-Making
“A decision is an act of choice wherein an
executive forms a conclusion about what must
be done in a given situation”

Decision-making is a process of selection from

a set of alternatives courses of action which is
thought to fulfill the objectives of the decision
problem more satisfactorily than others
 Types of decision
I: Routine and strategic
Ii:Policy and operating
Iii:Organisational and personal
Iv:Programmed and non programmed
V:Individual and group
 Process of decision -making
Awareness Diagnose Develop
of and state the
problem The problem Alternatives

f
e Evaluate
e The
d alternatives
b internal
a
c Select
Implement and The best
k
Feedback Verify the decision alternatives
problem External environment
 Organizing
The term organisation is used in different ways:

•A group of people united by a common a purpose

•An entity,an ongoing business unit engaged in utilizing
resources to create a result
•A structure of relation ships between various positions in
an enterprise
•A process by which employees,facilities and tasks are
related to each other,with a view to achieve specific goals.
 Organisation as
process(organising)
Organising is the process by which
employees,facilities and tasks are related to
each other, with a view to achieve specific
goals.It refers to the ways,work is arranged
and allocated among members of the
organisation,so as to achieve goals
 Principles of organisation
1. Consideration of objectives
2. Division of work and specialization
3. Definition of jobs
4. Separation of line and staff functions
5. Chain of command
6. Parity of authority and responsibilty
7. Unity of command
 Contd.. Principles of
8: Exceptionalorganisation
matters
9: Span of supervision
10: Balancing of various factors
11: Communication
12: Flexibility
13: Continuity
 process of organising
The process of organising involves following
steps:
1. Identifying the work
2. Grouping the work
3. Establishing relationships
4. Delegating authority
5. Providing for coordination and control