General

General Principles
Principles of
of
Management
Management
by
by
1.
1. Abdul
Abdul Raouf
Raouf
2.satar
2.satar
3.
3.
4.
4.
5.
5.
6.
6.
 GENERAL
PRINCIPLES
OF
MANAGEMENT
 WHAT IS
MANAGEMENT?
Management of is the art
of getting things done
through and with others
Manage – 4Ms – tactfully
(Men, Machine, Money, Material)
 Management is…
A process of designing and maintaining
an environment in which individuals,
working together in groups
accomplish effectively organizational
goals
Features of Management
Management is an activity concerned with
guiding human and physical resources such
that organizational goals can be achieved.
Nature of management can be highlighted as:
 Management is goal-oriented.
 Management integrates Human, Physical and
Financial Resources.
 Management is continuous.
 Management is all pervasive.
 Management is group activity.
MANAGEMENT LEVELS

TOP
LEVEL
MANAGEMENT

MIDDLE
LEVEL
MANAGEMENT

LOWER
LEVEL
MANAGEMENT
MANAGEMENT LEVELS…

TOP LEVEL MANAGEMENT

* To formulate goals & policies of the
company.
* To formulate Budgets.
* To appoint top executives.
* To decide the distribution of
profit.
 MANAGEMENT LEVELS…

MIDDLE LEVEL MANAGEMENT

* To monitor & control the operating
performance.
* To train motivate & develop
supervisory level.
* To co-ordinate among themselves so
as integrate the various activities of
a department
MANAGEMENT LEVELS…

LOW LEVEL MANAGEMENT

* To train and develop the efficiency
of the workers.
* To assign job to workers.
*To give orders and instructions.
*To report feedback information
about workers
MANAGEMENT IS AN ART
OR SCIENCE ?????
 Management….
• Is based on a systematic body of
knowledge-laws, collection of truths,
principles and concepts
• And this knowledge is universal
 Management…

• If a manager has this fundamental

knowledge and knows how to apply it
to a given situation, He should be
able to perform the managerial
functions efficiently and effectively
So Management is Science
 Management…

• Manager with knowledge uses skill,

expertise, wisdom and experience to
achieve the desired result.
• Management is regarded as an art in
the aspect of manager’s practice.

Thus, Management is an Art

 Management…

• Management as a science provides

principles.
• Management as an art helps in
tackling situations.
• So Management is both Science and
Art
 Management…

• Is also a profession

• Separation of ownership from control

The rules and regulations framed by

the govt. to protect citizens from
exploitation
 Management…

The growth of trade union movement

And the Impetus of the scientific
management philosophy which
stresses the need for technically
trained professional managers –
contributed to the
PROFESSIONALIZATION OF
MANAGEMENT
 Principles of
Management
Management principles are the
statements of fundamental truth
based on logic which provides
guidelines for managerial decision
making and actions.
 Management Principles

• The difference between Management

Principles and Management Functions:
• “What should I do (principles) to
ensure that I do my job (functions)
with effectiveness and efficiency.”
• Principles are strategies / processes
which enable the individual to do their
functions better to achieve laid down
goals and objectives
 FUNCTIONS OF
MANAGEMENT
There are five functions of
management. They are:
 Planning
 Organizing
 Controlling
 Directing
 Staffing
Planning:
It is the basic function of management.
“Planning is deciding in advance-what to do,
when to do and how to do”
It is an exercise in problem solving and
decision making.
Organizing:
It is the process of bringing together
physical, financial and human resources and
developing productive relationship amongst
them for achievement of organization
goals.
Staffing:
Staffing is the process of choosing of
right person for right job in
organization
Directing:
Directing is guiding people in the
organization through the means of
counselling, instructing, motivating and
various other modes of communication.
Controlling:
Controlling is a four-step process of
• Establishing performance standards based on the
firm’s objectives.
• Measuring and reporting actual performance.
• Comparing the two
• Taking corrective or preventive action as
necessary
 History of Management
• History of Management paved the
way for various Schools of
Management Thought (SMT)
• From various Schools during various
period, evolved various principles by
various contributors
History of Management…
• Egyptians
– Took 100,000 people, 20 years to build a
pyramid
– Were the 1st to come up with the 4 principles of
management
• Plan
• Organize
• Lead
• Control
History of Management…

• Chinese
– Built Great Wall
• Specialization of Labor – the degree to
which tasks in the organization are
subdivided into separate jobs
 History of Management
…

• Church & Military

– Structure
– Rules
– Chain of Command

These 3 were essential in our early

history
 Schools of Management
Thought
• Contributions on Management
Principles started from Charles
Babbage (1792-1871)
– Benefits of division of labor
– Use of science and mathematics
– Emphasis on cost reduction
 Schools of Management
Thought…
• Classical School
• Neo Classical School
• Behavioural School
• Modern School
– Systems School
– Contingency School
 Classical School
• Oldest school of thought
• Focus was on organisation structure
for accomplishment of organisation
goals
– Scientific Management
– Administrative Management
– Bureaucratic Management
 Classical School…
• Scientific Management focuses on the “one
best way to do a job”
– F.W.Taylor (1856-1915)
– Frank and Lillian Gilbreth
– Henry Gantt(1861-1916)
• Administrative focuses on manager and
managerial functions
– Henry Fayol- Thoery of Management-(1841-1925)
 Classical School…

• Bureaucratic relies on guidelines,

rules, procedures and clear division
of labour
– Max Weber-Father of Modern Sociology
(1864-1920)
 Classical School…

• Criticisms
– Taylor focused on production not on
other functions of the organisation
– Fayol’s and Weber’s being rigid and
inflexible.
 Neo Classical School
• Developed as a reaction to Classical school
• It created a full approach of management
based upon the human side.
• Neoclassical stresses flexibility and
adaptability
• Job designs stress personal growth and
responsibility
 Neo Classical School
• A leading advocate of the neoclassical
approach is Rensis Likert, Peter F.
Drucker
• He stated that neoclassical organizations
utilize human and technical resources
more fully than classical ones
Neoclassical emphasizes the importance of
decentralized authority and nondirective,
participative management behavior
 Behavioural School

• Focus on the management of people

• Focused on trying to understand
factors affect human behaviour at
work
– Human relations
– Behavioural Science
 Behavioural School…
Human Relations
• Human Relationists studied the human aspect of the
work
• Human factor is the most important element in the
organisation.
• Productivity depends on Workers’ attitude too……….
– George Elton Mayo – Hawthorne Studies
•
 Behavioural School…
Behavioural Science
• A natural progression of the human
relations movement
• It promotes to seek suggestions from
other related disciplines for scientific
understanding of human behaviour
• Emphasises motivation, communication,
leadership, group dynamics, etc.
 Behavioural School…

Criticisms
• So simplistic
• Manipulative and Subjective about
the relationship of worker attitudes
and productivity
 Modern School
Systems School
• focuses on understanding the organization
as an open system that transforms inputs
into outputs.
• focuses on the organization as a group of
inter-dependent parts, its interaction with
the environment, and its need to achieve
equilibrium
• Emphasise the holistic view of the
organisation
– Chester I Bernard(1886-1961)
 Modern School…
Contingency School
• Systems School formed the basis of this school
• It emphasizes that there is no one best way to manage
and that it depends on various situational factors
– Joan Woodward, Paul Lawrence, Jay Lorsch and Fred Fiedler

–
Fredrick Winslow Taylor
-Father of Scientific Management

• His contribution has two dimensions:

– Mechanical
– Philosophical
• Time and Motion Studies forms the
Mechanical Side
• Science of Management forms the
other dimension
Fredrick Winslow Taylor…
-Father of Scientific Management

• Scientific Management is based on the

following five principles:
– Science, not rule of thumb
– Harmony in group action
– Maximum output in the place of restricted output
– Scientific selection, training and placement of
the workers
– Development of all workers to the fullest extent
Fredrick Winslow Taylor…
-Father of Scientific Management

• Techniques of SM
– Scientific task setting
– Work Study
– Planning the task
– Standardisation
– Scientific selection and training
– Differential Piece-wage plan
– Specialisation
 Henry Fayol
-Father of Modern Management

• Classification of operations in an
organisation into six categories
– Technical (Production)
– Commercial(Purchases and Sales)
– Financial(Funding and Controlling Capital)
– Security
– Accounting
– Administrative or Managerial
 14 Principles of Management
described by Henri Fayol
These principles are derived: -
1.On the basis of observation and analysis
i.e. practical experience of managers.
2.By conducting experimental studies.
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.
 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.
 Every orders, instructions etc. has to
pass through Scalar chain.
 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.
13. Espirit De’ Corps
 It refers to team spirit i.e. harmony in
the work groups and mutual
understanding among the members.
 Espirit De’ Corps inspires workers to
work harder.
14. Centralization
 Centralization means concentration of
authority at the top level.
 In other words, centralization is a
situation in which top management
retains most of the decision making
authority.
 Hawthorne Studies
• Study conducted at Hawthorne Works
of Western Electric Company
• Conducted by Elton Mayo and his
associates from 1927 to 1932
• Study was conducted to determine
the effect of working conditions upon
workers and their productivity
 Hawthorne Studies

• They conducted 4 experiments

– Illumination Experiment
– Relay Assembly Room Experiment
– Bank Wiring Observation Room Experiment
– Mass Interview Programme
 Hawthorne Studies…

• Illumination Experiment
– Relationship between Illumination and
Output
– Observed during Increase and
Decrease of the intensity of the light
– No difference was observed in the
output of the workers
 Hawthorne Studies…

• Relay Assembly Room Experiment

– Homogeneous group of girls were
selected.
– Several new elements were introduced
in the work atmosphere
– Morale and other psychological factors
held the key for higher productivity
 Hawthorne Studies…

• Bank Wiring Observation Room Experiment

– 14 member group was studied
– Track records of both past and recent were
compared and analysed
– There existed an informal rules and informal
productive norms
 Hawthorne Studies…
• Mass Interview Programme:
– Researchers and Managers conducted
direct interview with the employees
– Feedback was also taken directly and
indirectly
– Study highlighted the importance of
social factors at work in the work
environment
 System approach
• Chester I. Barnard developed this
approach
• “Organisation is a system that is
composed of people and cooperation
for a common purpose”
• Relationships exist among Internal
and External environment of the
organisation
 System approach…
• System is an organised unit composed of two or
more interdependent parts
• Characteristics of System
– Interdependence of parts
– Composition of several subsystem
– Every system has its own norms
– Systems influence and are influenced by other
systems
• dfg
 System approach…

• An organisation composed of a
number of sub-systems that are
constantly changing and evolving
• Types of Sub-system
– Techical
– Social
– Power
 System approach…

For achieving the goals of the

organisation, a cooperative system of
management can be developed only by
understanding the social behaviour of
groups and individuals
Who is a Manager?????
 Who is a Manager?????
• A manager, by trade, is a problem solver. 
They emphasize rationality and control. 
• They ask, “What problems have to be
solved, and what are the best ways to
achieve results so that people will
continue to contribute to this
organization?”
 MANAGERIAL SKILLS
TECHNICAL SKILL:
* It refer to the ability to the tools, equipment,
produces & techniques.
HUMAN SKILL:
* It refer to the ability of the manager to work
effectively.
CONCEPTUAL SKILL:
* This skill also called design & problem solving skill
involves the ability
 MANAGERIAL ROLES
INTERPERSONAL ROLES:
* Figure Head Role.
* Leader.
* Liaison.
INFORMATION ROLES:
* Monitor.
* Disseminator.
* Spokes person.
DECISION ROLES:
* Entrepreneur.
* Disturbance handler.
* Resource Allocator.
* Negotiator.
 How does a manager get work
done?
• Allocate and co-ordinate work
• Delegate responsibility (giving details of
what needs to be done)
• Communication
• Co-operation and encouraging
participation
• Motivation
 The Principles of Management are the
essential, underlying factors that form
the foundations of successful
management.
 These principles serve as guidelines for
decisions and actions of managers.
In conclusion…all else fails
then…..