PRINCIPLES OF
MANAGEMENT
PRESENTED BY
K.BALASRI PRASAD
B.Sc(KU), M.B.A(OU), NET(UGC), (Ph.D)(MGU)

Management
Management is co-ordination of
all resources through the
process of planning,
organizing, directing and
controlling in order to attain
stated objectives.

Nature of Management
1. Universal phenomenon
2. It is an organized activity
3. It is a Group activity
4. Management is a systematic
process
5. It is a social process
6. It is about “Getting things done
through people”

7. Management is an Integrated process
8. Management is Intangible
9. Goal- Oriented
10. Inter-Disciplinary Approach
11. Dynamic
12. Management is about system Authority
13. Good Leadership
14. Management is an Economic activity
15. One of the factors of production
16. Management is a profession

Scope of Management
1. Subject matter of Management:
Planning, Organizing, Staffing, Directing,
Coordinating, Motivating and Controlling are
main functions of Management.
2. Functional Areas of Management:
(i) Financial Management
(ii) Marketing Management
(iii) Production Management
(iv) Human Resource Management

3. Inter-Disciplinary Approach:
Management is a discipline that takes the
help of other subjects like Psychology.
Sociology, Engineering, Economics etc,.
4. Universal Phenomenon:
Management is also present in political,
religious, charities, Armed forces,
educational institutions etc,.

Management functions (or)
Process of Management
There are five types of functions in management. They are,
 Planning-Defines the goal & establishing strategy.
 Organizing-includes determining what task has to be done,
who is to do them.
 Staffing-Includes recruitment of people and training them
towards the project.
 Directing-Includes the motivating the employees and leading
the activities.
 Controlling-It is the process of monitoring the performance.

Managerial Skills
There are three types of skills required by a manager. They
are:
Conceptual Skills-These skills are required by the
employee who are in top level management.
Human Relations Skills- These skills are required by
the employee who are in middle level Management.
Technical skills-These skills are required by the employee
in the supervisory level.

Different Managerial Levels
Top Management
Middle Management
Supervisory Level
Human Relations Skills
Conceptual
Skills
Technical Skills

Order of Management
Operatives
(or)
Executive
First-Line Managers
Middle
Managers
Top
Management

 Effectiveness: Adequate to accomplish a purpose; producing
the intended or expected result.
 Efficiency: Performing or functioning in the best possible
manner with the least waste of time and effort.
(Or)
 Efficiency is doing something with the least possible expenditure of
resources (such as time, energy, etc.)
Efficiency & Effectiveness

Principles of Management- Henry Fayol
Division of work
Authority & responsibility
Discipline
Unity of command
Unity of direction
Subordination of individual to general
interest
Centralization
Scalar chain

Remuneration
Order
Equity
Stability of tenure
Initiative
Esprit de corps

EVOLUTION
OF
MANAGEMENT THOUGHT

INTRODUCTION
The term ‘management’ encompasses an array of different functions
undertaken to accomplish a task successfully.
It is the process of designing and maintaining an environment in which
individuals, working to gather in groups, efficiently accomplish selected aims.
There are many approaches for the management varying from a problem to
problem solving style to the change.
Each approach has its own limitations and advantages.
Management is all about ‘getting things done’.

ENVIRONMENT FACTORS
SOCIAL
INFLUENCE
• The aspects of culture that influence norms
and values
ECONOMIC
INFLUENCE
• The concept to availability, production, and
distribution of resources within a society
POLITICAL
INFLUENCE
• The impact of political institutions on
individuals and organisations

EVOLUTION OF MANAGEMENT THOUGHT

DIFFERENT APPROACHES
• SCIENTIFIC
• ADMINISTRATIVE
• BUREAUCRATIC
CLASSICAL
• GROUP INFLUENCES
• MASLOW’S NEED THEORY
• THEORY X AND THEORY Y
• HAWTHORNE STUDIES
BEHAVIOURAL
• SYSTEM
• CONTINGENCY
• THEORY Z AND QUALITY MANAGEMENT
MODERN

Focuses on the
individual worker’s
productivity
Focuses on the
functions of
management
Focuses on the
overall
organizational
system
CLASSICAL APPROACH

SCIENTIFIC MANAGEMENT: Taylor
• develop a scientific approach for each element of one’s work
• scientifically select, train, teach and develop each worker
• cooperate with workers to ensure that jobs match plans and principles
• ensure appropriate division of labor
FOUR
PRINCIPLES
• Task Performance
• Supervision
• Motivation
THREE AREAS OF
FOCUS:
• Piece-rate-incentive system
• Time and motion study
TWO MANAGERIAL
PRACTICES:

FAYOL’s PRINCIPLE OF MANAGEMENT
1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interest to
the common good
7. Remuneration of personnel
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability
13. Initiative
14. Esprit de corps

BEHAVIOURAL
APPROACH
The behavioural school of management
emphasized what the classical theorists
ignored.
Acknowledged the importance of human
behavior in shaping management style.
Personalities
• Mary Parker Follett
• Douglas McGregor
• Chester Barnard
• Elton Mayo

HIERARCHY’s HUMAN NEEDS
SELF
ACTUALIZATION
NEED FOR SELF
ESTEEM
NEED FOR SOCIAL
RELATIONS
NEED FOR SECURITY
PHYSIOLOGICAL NEEDS

CONTINGENCY THEORY
There is no “One Best Way” to manage all the
situations.
Also known as ‘Situational Theory’.
Developed by managers, consultants, and
researchers who tried to apply the concepts
depending on various Internal and External factors

LEVELS OF MANAGEMENT

The term “Levels of Management’
refers to a line of separation between
various managerial positions in an
organization.
The number of levels in
management increases when the
size of the business and work force
increases and vice versa.
 The level of management
determines a chain of command, the

The levels of management can be
classified in three broad categories: -
Top level / Administrative level.
Middle level management.
Low level / Supervisory.

Consists of board of directors, chief
executive or managing director. The
top management is the ultimate
source of authority and manages
goals and policies for an enterprise.
They devotes more time on planning
and coordinating functions.
Top Level of Management

Top management lays down the
strategic objectives and broad policies
of the enterprise.
Issues necessary instructions for
preparation of department budgets,
procedures, schedules etc.
Controls & coordinates the activities of
all the departments. Provides guidance
and direction.
The top management is also
Role of Top Mgmt

The branch managers and departmental
managers constitute middle level.
 They are responsible to the top
management for the functioning of their
department.
They devote more time to organizational
and directional functions.
In small organization, there is only one
layer of middle level of management but
in big enterprises, there may be senior
Middle Level of Management

They execute the plans of the organization in
accordance with the policies and directives
of the top management.
They make plans for the sub-units of the
organization.
They participate in employment & training of
lower level management.
They interpret and explain policies from top
level management to lower level and sends
important reports and other important data to
top level management.
Role of Middle level Mgmt

Lower level is also known as
supervisory / operative level of
management.
It consists of supervisors, section
officers, superintendent etc.
According to R.C. Davis,
“Supervisory management refers to
those executives whose work has to
be largely with personal oversight
Lower Level of Management

Assigning of jobs and tasks to various
workers.
They guide and instruct workers for day to
day activities.
They are responsible for the quality as well
as quantity of production.
They communicate worker’s problems,
suggestions, and recommendatory appeals
etc to the higher level.
They help to solve the grievances of the
workers.
They prepare periodical reports about the
Role of Lower level Mgmt

FUNCTIONS OF
MANAGEMENT

FUNCTIONS OF
MANAGEMENT

PLANNING
According to KOONTZ,
“Planning is deciding in advance
- what to do, when to do & how to
do. It bridges the gap from where
we are & where we want to be”.
Planning is necessary to ensure
proper utilization of available
resources.

ORGANIZING
 According to Henry Fayol, “To organize a
business is to provide it with everything useful
or its functioning i.e. raw material, tools,
capital and personnel”.
 Organizing as a process involves:
 Identification of activities.
 Classification of grouping of activities.
 Assignment of duties.
 Delegation of authority and creation of
responsibility.

STAFFING
 According to Koontz & O'Donnell, “Managerial function of
staffing involves manning the organization structure through
proper and effective selection, appraisal & development of
personnel to fill the roles designed un the structure”.
 Staffing involves:
 Manpower Planning
 Recruitment, selection & placement.
 Training & development.
 Remuneration.
 Performance appraisal.
 Promotions & transfer.

DIRECTING
 It is that part of managerial function which
actuates the organizational methods to work
efficiently for achievement of organizational
purposes.
 Direction has following elements:
Supervision
Motivation
Leadership
Communication

CONTROLLING
 The purpose of controlling is to ensure that
everything occurs in conformities with the
standards.
Therefore controlling has following
steps:
 Establishment of standard
performance.
 Measurement of actual performance.
 Comparison of actual performance
with the standards and finding out

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