report

1. Principles and Key concepts
of Business Administration
Rizza Joy Melleguin
Mary Jane G. Juan
Lowela Pellejo

2. •An Introduction to the
Principles of
Management

3. Principles of Management
Fayol’s 14 Principles

4. 1. Division of Work –
•This principle of management
is based on the theory that if
workers are given a specialized
task to do

5. •, they will become skillful
and more efficient in it than
if they had a broader range
of tasks.

6. •Therefore, a process where
everyone has a specialized
role will be an efficient one.

7. 2. Authority –
This principle looks at
the concept of
managerial authority.

8. •It looks at how authority is
necessary in order to ensure
that managerial commands
are carried out

9. •. If managers did not have
authority then they would
lack the ability to get work
carried out.

10. •Managers should use their
authority responsibly and
ethically.

11. 3. Discipline –
This principle relates to the
fact that discipline is needed
within an organization for it
to run effectively.

12. •Organizational rules,
philosophies, and
structures need to be met.

13. •In order to have disciplined
workers, managers must build
a culture of mutual respect and
motivation.

14. 4. Unity of command –
There should be a clear chain of
command in place within an
organization.

15. •An employee should know
exactly whose instructions
to follow.

16. 5. Unity of direction
• Work should be organized in a
way that means employees are
working in harmony toward a
shared objective or goal using a
shared method or procedure.

17. 6.Subordination individual interests
to the collective interests
• The interests of the organization as a
whole should take precedence over
the interests of any individual
employee or group of employees.

18. •This encourages a team spirit
and collective mentality of all
for one and one for all.

19. 7. Remuneration
•In order to motivate and be
fair to employees, they should
be paid a reasonable rate for
the work they carry out.

20. •An organization that
underpays will struggle to
attract quality workers who
are motivated.

21. 8. Centralization
• This principle relates to whether
decisions should be made
centrally, as in from the top down,
or in a more democratic way, from
the bottom up.

22. •Different decision making
processes are appropriate
for different types of
decisions.

23. 9. Scalar chain
•– This relates to the principle of
a clear chain of communication
existing between employees and
superiors. The chain should be
respected, unless speedy

24. 10. Communication
•is vital, in which case the
chain may be bypassed if
all parties consent.

25. 11. Order
•– This relates to the proper use
of resources and their effective
deployment in a structured
fashion.

26. 12. Equity
• Managers should
behave ethically towards
those they manage.

27. • Almost every organization in the
modern world will have a written set
of policies and procedures which will
outline exactly what is expected
from staff at all levels.

28. 13. Stability of tenure of personnel
• It is seen as desirable within an
organization to have a low staff turnover
rate. This is due to the benefits that come
with having experienced staff and the
time and expense needed to train new
ones

29. •. There should be a clear and
efficient method of filling any
staff vacancies that arise.

30. 14. Initiative
• Employees that have an input
as to how to best do their job
are likely to feel more
motivated and respected.

31. •Many organizations place a
great deal of emphasis on
listening to the concerns of
staff.

32. •Keeping a high level of morale
and team spirit is an essential
part of having the most
productive organization possible.

33. •Happy and motivated
employees are far more likely
to be productive and less
absent.

34. Business Management refers to functions that aim in effective
utilisation of people and resources in an organization to achieve
business goals. So it is a means to achieve an end. Essentially, there
are five key concept in business management, and they are:
Planning
Organizing
Staffing
Leading
Controlling

35. Planning
•Planning is the starting point. In
this phase, you create your business
plan and how you are going to
achieve it. But it is not as easy as it
sounds.

36. •You need to make a realistic assessment
of your business goals and chart out the
detailed strategies (with full back up plans
in case if those strategies fail) through
which your company can achieve its
business objectives.

37. Organizing
• Organizing follows planning. Here you
organize all your resources like employees,
machines and finance into a well-oiled unit.
You need to get all these combination and
synchronization right.

38. •Organizing helps you to define “who
is going to do what”. It set well
demarcated job roles, organizational
hierarchies and streamlines co-
ordination between them.

39. Staffing
•Staffing deals with acquiring,
deploying, and retaining the
right skilled workforce to get
the business results.

40. •The objective of staffing is to create
the right positive impacts on the
organization’s effectiveness. Through
staffing you get the right people at the
right positions doing the right things.
In short, it’s about right delegation.

41. Leading
•Leading is the most important
function of the management
process. Without motivated
workforce, you can never you
achieve your business goals.

42. •Leading is all about how you can align
employees’ tasks with the overall
organizational goals. Leading is how you can
motivate, influence and inspire your
employees to give their best performance at
work.

43. •Leading is how you can make your
employees participate willingly in the
growth and development of the
company.

44. Controlling
•Controlling is active and
constant monitoring of
people, process and other
resources of your company

45. • . Here you track the performance
of all the resources of your
company and ensure that they are
on the right track.

46. •Through controlling you can accurately
evaluate whether all the resources of the
company are optimally utilised for desired
business gaols. And making corrections
whenever and wherever there are
deviations, mistakes and loopholes.

47. •It has been said
that management has
four basic functions –

48. •planning,
organizing, leading
and controlling.

49. •Common sense dictates that without
these principles of management being
in place an organization would have
trouble achieving its aims, or even coming
up with aims in the first place

51. •The principles of
management can be
distilled down to four
critical functions.

52. •These functions are
planning, organizing,
leading, and controlling.

53. •This P-O-L-C framework
provides useful guidance into
what the ideal job of a manager
should look like.

54. • The key concepts of
management across
six functional areas.

55. •Get an overview of accounting,
finance, operations, human
resources management,
marketing and strategy.

56. 1. People
Human resources are your company’s greatest
asset and how you lead, motivate and inspire your
employees can have a huge impact on the success
of your company. In People Management, learn the
key leadership and communication skills that you
need to be a successful leader and build a strong
organization.
People Management

57. 2. Operations
•Have you ever wondered what happens behind the
scenes of a major new product launch such as a
new iPhone or the latest version of a popular
video game? Managing a supply chain and making
sure production meets demand under tight
deadlines can be incredibly complex and is critical
to business success.

58. • In Operations Management, you will explore key
aspects of business operations including capacity
planning, productivity analysis and improvement,
quality assurance and the concept of lean
management. Learn about tools and techniques for
managing quality, computing cycle times for
operations and organizing and configuring the
various components of a supply chain.

59. 3. Accounting
Proper management of the
day to day accounting and
finances of a business is
critical to operations.

60. In Accounting for Decision-Making,
learn about different business
organizations and the role
of accounting in each.

61. You will also learn how to read,
analyze and prepare financial
statements, an essential skill if you
plan to start or run a business.
Accounting for Decision-Making

62. 4. Strategy
•How does your business compete in
the industry? How can you create a
competitive advantage? Are you able
to adapt to a changing business
environment?

63. •The ability to take a high-level, strategic
view of a business is necessary to identify
opportunities and to stay ahead of
external forces such as new competition
and changing consumer demand.

64. •In Strategic Management, you will learn
how to develop a business strategy
including analyzing the competition and
identifying ways that your business can
gain a competitive edge.
•Strategic Management`1

65. 5. Finance
The growth and maintenance
of your business may require
making major purchases,
investments, mergers and
acquisitions and more.

66. Smart financial planning and
decision-making create value for
your organization and ensure its
growth into the future.

67. In Corporate Finance, learn the tools
and techniques managers use to
manage capital and maximize the
value of a business.
Corporate Finance

68. 6. Marketing
•Marketing is much more than simply
advertising a product or service. You
must identify and interact with your
customer, stay on top of their
changing needs and desires and
deliver a strong value proposition.

69. •In Marketing Management, you will
learn core concepts of marketing
including segmentation, targeting,
differentiation, product positioning and
much more.

70. •Real-world business scenarios will be used
to learn about different marketing
strategies and tools for analyzing and
discovering opportunities.
•