Principles of Management - Radhika and Sivanarayana

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-RADHIKA.R

-SIVANARAYANA.J



An art more than a science

Inherently social in nature

Getting things done through others



y Management principles are statements of fundamentaltruth .

y These principles serve as guidelines for decisions andactions of managers.

y They are derived through observation and analysis of

events which managers have to face in practice.



y Classical approach

y Human Resource approach

y Modern approach



y Scientific Management by Frederick Taylor

y Administrative Principle by Henry Fayol

y Bureaucratic Organization by Max Weber



y Frederick W. Taylor is known as the father of scientific management

y Scientific management is defined as the use of thescientific method to define the one best way for a

job to be done.



1. Study each part of the task scientifically, and develop a bestmethod to perform it.

2. Carefully select workers and train them to perform a task

using the scientifically developed method.

3. Cooperate fully with workers to ensure they use the propermethod.

4. Divide work and responsibility so management isresponsible for planning work methods usingscientific principles and workers are responsible forexecuting the work accordingly



Ideal type of organization characterized by

y division of labor

y a clearly defined hierarchy

y detailed rules and regulations

y impersonal relationships



1.Hierarchy of authority: Hierarchy of positions shouldprovide for supervision of each office by a higher authority.

2. Continuing body of rules: All organizations work inaccordance with these rules. All administrative acts, actionsand decisions should be recorded in writing so as toprovide for future scrutiny and permanent record.

3. Clear-cut division of work: Specific areas of competenceshould be determined on the basis of division of labor. Appointments and promotions on the basis of universalistic criterion of demonstrated competence.



Fourteen Principles of Management developed by Henri

Fayol ( 1841-1925) is considered as one of the classicalorganization theory that is universally applicable toevery type of organization.



Division of work

Authority

Discipline Unity of command

Unity of direction

Subordination of theindividual

Remuneration

Centralization

Scalar chain

Order Equity

Stability of tenure of personnel

Initiative

Esprit de corps



The specialization of the workforce according to theskills a person,

y Increases productivity and efficiency.

y Increases workers speed and accuracy in itsperformance.

This principle is applicable to both technical as well asmanagerial work.



y This principle suggests that there must be parity between authority and responsibility.

y They are co-existent and go together, and are twosides of the same coin.



y Discipline refers to obedience, proper conduct inrelation to others, respect of authority, etc.

y It is essential for the smooth functioning of allorganizations.



y This principle states that every subordinate shouldreceive orders and be accountable to one and only one

superior.

y Unity of Command also makes it easier to fixresponsibility for mistakes.



y All those working in the same line of activity mustunderstand and pursue the same objectives.

y It seeks to ensure unity of action, focusing of effortsand coordination of strength.



y The management must put aside personal

considerations and put company objectives first.

y Therefore the interests of goals of the organizationmust prevail over the personal interests of individuals.



y Workers must be paid sufficiently as this is a chief motivation of employees and therefore greatly

influences productivity.

y The quantum and methods of remuneration payableshould be fair, reasonable and rewarding of effort.



y Centralization implies the concentration of decisionmaking authority at the top management.

y Sharing of authority with lower levels is calleddecentralization.

y The organization should strive to achieve a proper

balance.



y Scalar Chain refers to the chain of superiors rangingfrom top management to the lowest rank.

y The principle suggests that there should be a clear lineof authority from top to bottom linking all managersat all levels. It is considered a chain of command.



y Social order ensures the fluid operation of a company through authoritative procedure.

y Material order ensures safety and efficiency in the workplace.



y Employees must be treated kindly, and justice must beenacted to ensure a just workplace.

y Managers should be fair and impartial when dealing with employees.



y The period of service should not be too short andemployees should not be moved from positions

frequently.

y An employee cannot render useful service if he isremoved before he becomes accustomed to the work

assigned to him.



y Using the initiative of employees can add strength andnew ideas to an organization.

y Employees are likely to take greater interest in thefunctioning of the organization.



y This refers to the need of managers to ensure anddevelop morale in the workplace; individually andcommunally.

y

Team spirit helps develop an atmosphere of mutualtrust and understanding.

y These can be used to initiate and aid the processes of change in organization, decision making, skill

management and the overall view of the managementfunction.



y Based on a belief in the importance of employeesatisfactiona satisfied worker was believed to be aproductive worker.

y Advocates believed in peoples capabilities and wereconcerned with making management practices morehumane.



Mary Parker Folletty Recognized that organizations could be viewed from the

perspective of individual and group behavior.

y Believed that individual potential could only be releasedby group association.

Chester Barnardy Saw organizations as social systems that require human

interaction and cooperation.



Robert Oweny Scottish businessman and reformer who advocated for

better treatment of workers.y Claimed that a concern for employees was profitable for

management and would relieve human misery.

HugoMunsterbergy Created the field of industrial psychologythe scientific

study of individuals at work to maximize theirproductivity and adjustment.y Psychology and Industrial Efficiency (1913)



This theory has got two objectives

1.Productivity

2.Satisfaction

Types of theories:

Quantitative Approach to Management

Systems Approach

Contingency Approach - Situational Approach



y E volved out of the development of mathematical andstatistical solutions to military problems during World War II.

y Involves the use of statistics, optimization models,information models, and computer simulations to

improve management decision making for planning andcontrol.



y The system approach defines an organization as asystem which interacts with its environment

y The process of management of an organization aims atusing inputs to produce outputs and consists of thefive functions of planning, organizing, staffing,

motivating and controlling.



According to this approach every firm is unique and sois every situation, so there can not be tailor made

solutions to any problem.

E very problem will have a unique solution.



Thus these management principles act as a guidelinefor management and for managers to set a task and

work towards successful accomplishment of the same.

Principles of Management - Radhika and Sivanarayana

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