PRINCIPLES AND PRACTICES OF MANAGEMENT

References

• Essenials of management-Harold Koontz• Principles and practice of management-LM

Prasad• Principles of Management- T. Ramasamy• Management-Coutler

Definition of ManagementManagement is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.1 As managers, people do managerial functions.2 It applies to all kind of organization and at all levels.3 Managing is concerned with productivity(effectiveness and efficiency).4 Working for surplus.F.W.Taylor “ Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way”

Stanley Vance “ Management is simply the process of decision making and control over the action of human beings for the expressed purpose of attaining pre-determined goals”

Koontz” Management is the art of getting things done through and with people in formally organized groups. It is the art of creating environment in which people can perform and individuals could co-operate towards attaining of group goals. It is the art of removing block to such performance, a way of optimising efficiency in reaching goals”.

NATURE OF MANAGEMENT

1 Organised activities2 Existence of objectives3 Relationship among resources4 Working with and through people5 Decision making6 Multidisciplinary7 Dynamic nature of principles8 Relative, not absolute principles9 Management-Science or art10 Universality of management.

Importance1 Meet the challenge of change2 Accomplishment of group goals3 Effective utilisation of business-man, money, materials, machine, methods,

motivation, markets and management.4 Effective functioning of business5 Resource development.6 Sound organisation structure7 Management direct the organisation8 Integrates various interest9 stability10 Innovation11 co-ordination and team spirit12 Tackling problems13 A tool for personality development.

Scope

1 Management is a functional process which involves the function of planning, organisation, direction and control.

2 It has various functional areas like financial management, personnel management, production management, marketing management and material management.

3 Because of its inter-disciplinary approach study of commerce, economics, sociology, psychology, mathematics and ethics is very essential.

4 Management principles are of universal application.5 The techniques of management can be improved by proper

research and development. This has been testified by the history of human development.

FUNCTIONS

Planning

Controlling Organizing

Directing Staffing

Hierarchy

BOD, Chairman, CEO

Departmental heads,Divisional heads,Sectional heads

Senior supervisorsIntermediate supervisorsFront line supervisors

Top level Management

Middle level Management

Lower Level Management

Difference between effectiveness and efficiency

Organisation effectiveness is the degree to which operative goals have been attained while concept of efficiency represent the cost/ benefit rate incurred in the pursuit of these goals.

Becoming a Manager

1 Keep up with current business news2 Read books about good and bad examples of managing3 Remember that one of the things good manager do is discover what is

unique about each person.4 Keep in mind the simple advice of late Peter Drucker “Management is about

people”5 Work on your soft skills-work ethically, communications, information

gathering and people skills. These are what employers look as the most important factors for getting jobs.

6 Observe managers and how they handle people and situations.7 Talk to actual managers about their experiences-good or bad.8 Get experience in managing by taking on leadership roles in student

organisations.9 Start thinking about whether you’d enjoy being a manager.