PRINCIPAL OF MANAGEMENT PDF

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Principal Of Management Pdf

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This tutorial talks about the Principles of Management, the basic guidelines that This tutorial first justifies how management is both an art as well as science. This is the book Management Principles (v. ). This book is licensed under a Creative Commons by-nc-sa (monpaysofchlesspi.ga Principles and Practices of Management. MBA-(I Sem). Navleen Kaur. Richa Khunteta. MBA faculty (BISMA). Biyani Institute of Science and Management.

When he was 19, he began working as an engineer at a large mining company in France. He eventually became the director, at a time when the mining company employed more than 1, people. Through the years, Fayol began to develop what he considered to be the 14 most important principles of management. Essentially, these explained how managers should organize and interact with staff. Fayol's "14 Principles" was one of the earliest theories of management to be created, and remains one of the most comprehensive.

He's considered to be among the most influential contributors to the modern concept of management, even though people don't refer to "The 14 Principles" often today. The theory falls under the Administrative Management school of thought as opposed to the Scientific Management school, led by Fredrick Taylor Fayol's 14 Principles of Management Fayol's principles are listed below: Division of Work — When employees are specialized, output can increase because they become increasingly skilled and efficient.

Authority — Managers must have the authority to give orders, but they must also keep in mind that with authority comes responsibility. Discipline — Discipline must be upheld in organizations, but methods for doing so can vary. Unity of Command — Employees should have only one direct supervisor.

Unity of Direction — Teams with the same objective should be working under the direction of one manager, using one plan. This will ensure that action is properly coordinated. Subordination of Individual Interests to the General Interest — The interests of one employee should not be allowed to become more important than those of the group.

This includes managers. Remuneration — Employee satisfaction depends on fair remuneration for everyone. This includes financial and non-financial compensation.

Personal ability Span of Management Factors governing Span of Management - Appropriate span of Management must be determined by the specific of the manager particular situation. Ability of the manager 2. Ability of the Employees 3. Type of work 4.

Introduction 14 principles of Management

Geographic locations 6. Level of Management 7. Characteristics 1. Vertical Chart — lines of command proceeding from top to bottom in vertical lines 2. Horizontal Chart — Highest position shown in left 3. Concentric or Circular Chart 41 Contents of Organisation Chart 1. Name of components of Organisation 4.

Positions of various office personnel 5. Total number of person working in an Organisation 6. Ways of Promotions and salary particulars Pfiffner and Sherwood classifies into 3 categories 1.

Skeleton — a graphical presentation of the framework - arranged in levels connected by various lines representing different types of authority 2. Functional — consists of subunits wherin boxes represent divisions and sections 3. Contents of organizational Manual 1. Types of Organisation Manual 1. Policy Manual 2. Company Organisation Manual — describes the duties and responsibilities of various departments - Outlines the formal chain of command and lines of promotion in the company 3.

Operation Manual — describes the established standards, procedures and methods for various jobs. Department Practice Manual — detailed information about the Organisation 5. Departmentation - As the process of grouping individual jobs in department. It involves grouping of activities and employees into departments so as to facilitate the accomplishment of Organisation Objectives. Specialisation 2. Expansion 3. Autonomy 4. Fixation of responsibility 5.

Appraisal 6. Management development 7. Administrative control Choosing a basis for Departmentation 1. Coordination 3.

Control 4. Economy 5. Attention 43 Human Consideration Basis of Departmentation 1. Departmentation by Functional Basis — Grouping of activities in accordance with the function of an enterprise. Each major function of the enterprise is grouped into a department.

Departmentation by Territorial basis — A company may have separate departments to serve the southern region, northern region etc. It has the advantage of the intimate knowledge of local conditions. Many routine and service functions performed by all the regional units can be performed centrally b the head office very economically 44 Departmentation by Process basis — is done on the basis of several discrete stages in the process or technologies involved in the manufacture of a product.

A cotton textile mill have separate departments for ginning, spinning, weaving, dyeing and printing and packing and sales. This increases efficiency. Departmentation by Product basis — suited for a large organization manufacturing a variety of products.

For each major product a semi- autonomous department is created and is put under the charge of a manager who may also be made responsible for producing a profit of a given magnitude.

Product dept is the logical pattern to follow when each product requires raw materials, manufacturing, technology and marketing methods and that are markedly different from those used by other products in the Organisation.

Eg HLL manufacturing detergents, toiletries, Clearasil cream and soap. Demerits 45 Departmentation by Customer basis — An enterprise may be divided into a number of departments on the basis of the customers that it services. For Eg. An educational institution may have separate departments for day, evening and correspondence course to impart education to full time students, locally employed students and autstation students respectively.

Bases of Power 1. Legitimate 2. Expertness 3. Referrant 4. Reward 5.

It denotes certain rights to take decision and get them executed by their subordinates. Difference between Line and Staff Authority S. No Line Authority Staff Authority 1 Right to decide and command Right to provide advice, assistance and information 2 Contributes directly to the accomplishment of Organisational objectives Assist line in the effective accomplishment of Organisation objectives 3 Relatively unlimited and general Relatively restricted to a particular function 4 Flow downward from a superior to subordinate May flow in any direction depending upon the need of advice 5 Creates superior and subordinate relation Extension of line and support line 6 Exercise control Investigates and reports 7 Makes operating decision Provides idea for decision 8 Bears final responsibility for Does not bear final responsibility 47 The personnel manager may lay down the grievances procedure to be followed in all departments - granted to a staff specialist to issue instruction to line executives directly in a specific and limited area of operation.

Delegation of authority - To delegate means to entrust authority to a subordinate - Assigns some part of his work to his subordinate and also gives the necessary authority to make decision within the area of their assigned duties Def.

General or Specific 2. Formal or Informal 3. Written or oral 4. Downward and sideward Process of Delegation 1. Determination of results expected 2. Assignment of duties 3. Granting of authority 4. Accountability — is the obligation to carry out responsibility and exercise authority in terms of performance standard established by the superior - Once a subordinate is assigned a duty and given the necessary authority to complete it, he becomes answerable for the results.

Thus accountability is a derivative of responsibility. Principles of Delegation 1. Delegation to conform to desired objectives 2. Responsibility not delegatable 3. Authority to match duties 4. Unity of command 5. Limits to authority to well-defined Merits 1. Basis of effective functioning 2.

Reduction in managerial load 3. Benefits of specialized service 4. Efficient running of branches 5. Aid to employee development 6. Aid to expansion and diversification of business Effective Delegation 1. Define assignments and delegate authority in the light of results expected 2.

Select the person in the light of the job 3. Maintain open lines communication 4. Establish proper control 5. Reward effective and successful assumption of authority Staffing - Filling and keeping filled, positions in the Organisation structure.

Functions of Staffing 1. Procurement — Job analysis 49 Human Relations - is an area of management in integrating people into work situation in a way that motivates them to work together productively, co-operatively and with economic, psychological and social satisfaction. Purpose and Importance 1. Increasing size of Organisation 2. Advancement of technology 3. Long range needs of manpower 4.

High wage bill 5. Trade unionism 6. Human relations movement 50 Sources of Recruitment 1. Internal sources — It includes personnel already on the payroll of an Organisation, presenting working force. Merits - Less expense - Builds loyalty - Ensures stability - Sense of security - Lower level to look forward to rising to higher levels - Morale of the employees Shows more Enthusiasm Demerits - Promotion based on seniority, inefficient people may also be promoted this will ultimately ruin the prospects of the firm.

External Sources — Fresh flood should be injected so as to make it more dyanamic - freshers from college - unemployed with a wide range of skills and abilities - retired experienced person Merits - required skills 51 Direct Method — campus recruitment 2.

Indirect Method — use advertisements for recruitment in newspaper, journal, etc - Blind advertisement — without company name the advertisement been made 3. Third Party method a. Private Employment agency b. Public Employment agency c. Head hunters Professional Recruiting agencies d. Employee Referrals Recommendations e. Trade Unions f. Applicant at the gate g. Voluntary Organisation h. Computer data bank Recruitment Policy 5 Elements 1. Identification of Recruitment needs 2. Preferred sources of Recruitment 3.

Criteria of selection and selection techniques 4.

Cost of Recruitment 5. Role, if any assigned to the union in the formulation and implementation of recruitment and selection policies. Selection - Process of discovering the most suitable and promising candidates to fll up the vacancies - The goal of selection is to sort out or eliminate those judged unqualified to meet the job and organizational requirements - -ve action, after receiving the application select a particular person 52 Receiving application 2.

Application blank 4. Psychological test 5. Interview 6. Reference check 7. Physical Examination 8. Final Interview Interview The Interview is the most frequent method of selection. The Interview is a face to face conversation between an applicant and the employer.

The purpose of Interview is to collect information on behaviour, attitudes, opinions, maturity, emotional stability, enthusiasm, confidence, response and other commercial behaviour. Types of Interview 1. Structured Interview — is also called as patterned interview. The interviewers are trained in the process to be used. A list of questions on analysis of the job specification is prepared. The Interviewing process attempts to predict how candidates will perform in the work situations.

Group or Discussion Interview — The interviewees are given certain problems and are asked to reach a specific decision within a particular time limit. The applicants enter into group discussion, knowing that the interview is a test, but do not know which qualities are being measured or tested. The object is to see how individuals perform on a particular task or in a particular situations 3. Panel or Board Interview — Candidate is interviewed by a number of interviewers.

Questions may be asked in turn or asked in random order as they arise on any topic. Stress Interview — The Interview assumes a hostile role toward the applicant. He deliberately puts him on the defensive by trying to any, embarrass or frustrate him.

The purpose is to find out how a candidate behaves in a stress situation whether he loses his temper, gets confused or frightened. Placement may be defined as the determination of the job to which an accepted candidate is to be assigned to that job.

A proper placement of a worker reduces Employee turnover, absenteeism and accident rates and improve morale. After the selection, the employee is generally put on a probationary period ranging from one to two years after his employment to regularized, provided that during this period, his work has been found to be satisfactory.

Principles of Management - POM Study Materials

Clarifying the job 2. Developing realistic expectation about the Organisation 3. Reducing the amount of stress of new employee 4. Reducing startup costs 5. Strengthening the relationships between new employee, his superiors and peers A formal orientation programme generally provides information regarding the following: The history of the Organisation 2. Products and services of the Company 3.

Organisation structure of the enterprise 4. Location of departments and Units 5. Personnel policies and practices 6. Employees facilities and services 7. Rules and Regulations 8. Grievance procedures 9. Determining Training Needs a. Organizational analysis — analyzing the present and future needs of the total Organization b. Operational analysis — need of a specific group of jobs c. Individual analysis — analyzing the need of the specific Employee 2.

Deciding the purpose of Training 3. Choosing Training method 4. Evaluating Training Effectiveness Need for Training arises on the account of following reasons — 1. New Environment 2. Lack of Trained Personnel 3. Advancement in Technology 4. Faculty Methods 5. Prevention of accidents 6.

Career Development. Need for Training 1. To improve job related skills 2. To update Knowledge and skills 3. To prepare for higher responsibilities and task 4.

To develop proper job related attitudes 5. To inject motivation and morale 6. To mould personnel to adapt and adjust to Organizational change Advantages of Training 56 Increased productivity 2. Job Satisfaction 3. Reduction in accidents 4. Better use of Resources 5. Reduced Supervision 6. Greater Flexibility 7. Management by Exception 8. Stability and Growth 57 Essential of a good Training Programme A good training programme must satisfy the following conditions 1.

Clear Purpose 2. Training Needs 3. Relevance 4. Individual Differences 5. Appropriate incentives 6. Management Support 7. Balance between theory and practice. Training Procedure 1. Preparing the Instructor - know the job or subject he is attempting to teach - Have the aptitude and ability to teach - Have willingness towards the profession - Pleasing Personality and capacity for leadership - Knowledge of teaching Principles and methods 2.

Preparing the Trainee 3. Getting ready to teach 4. Presenting the Operation 5.

Follow - up Methods and Techniques of Training 1. On the Job Training a. Coaching b. Understudy c. Job Rotation 2. Vestibule Training — Dummy Machine set up 3.

Apprenticeship Training 4. Methods of Executive Development 1. On the Job Method a. Coaching and Understudy b.

Position rotation c. Special projects and task forces d. Committee assignments e. Multiple Management 2. Off the Job Method a. Special courses b. Conferences and Seminars c. Case study d.

Selective Readings e. Brain Storming f. Simulation , role Playing and Management Games g. Sensitivity Training 59 It is the final action of a manager in getting others to act after all preparations have been completed. It consist of the following elements: Elements of Management 2. Continuing Function 3. Pervasive Function 4.

Creative Function 5. Linking function 6. Initiates action 2. Ensures coordination 3. Improves efficiency 4. Facilitates change 5. Harmony of objectives 2. Maximum individual contribution 3.

Principles Of Management Books

Unity of command 4. Appropriate techniques 5. Direct Supervision 6. Strategic use of Informal Organization 7. Managerial Communication 8.

Effective Leadership 9. Principle of Follow up through 61 Delegation 2. Supervision 3. Orders and instructions 4. Motivation 5. Leadership 6. Every executive has to supervise the work of his subordinates.

At the operating level, supervision is the most significant part of the manager job. The supervisor is in direct touch with the workers. He teaches proper work methods, maintains discipline and work standards and solve workers grievances or problems. To schedule work so as to ensure an even and steady flow. To assign work to different individuals 3.

To provide proper working conditions 4. To issue orders and instructions 5. To prescribe work methods and procedures 6. To guide, train and inspire workers in the efficient performance of work. Knowledge of Work 2. Knowledge of the Organization 3. Communication Skill 4. Human Relation of Skill 5. Planning the work 2.

Organising the Resources 3. Staffing the units 4. Maintaining discipline 5. Enforcing safety measures 6. Handling Grievances 7.

Appraising performance 62 Time management and delegation 3. Organising the resources 4. Staffing the Units 5. Trianing and development of Employees 6. Disciplining the Workers 7. Appraising the performance of Employees 8. Controlling the results 9. The ability to use power effectively and in a responsible manner 2. The ability to comprehend that human beings have different motivation forces at different times and in different situations 3.

The ability to inspire 4. The ability to act in a manner that will develop a climate conductive to responding to and arousing motivations. Fundamental understanding of People 6. Leadership Styles 1. Autocratic Leader —Commands and expects compliance, is dogmatic and positive, and leads by the ability to withhold or give rewards and punishment. Democratic or Participative — consults with subordinates on proposed actions and decision and encourage participation from there 3.

Leaders depend largely on subordinates to set their own goals and the means of achieving them, and they see their role as one of aiding the operation of followers by furnishing them with information and acting primarily as a contact with the groups external Environment.

Paternalistic Leadership — Serves as the head of the family and treats his followers like his family members. He assumes a paternal or fatherly role to help, guide and protect the followers. Functions 1. Goal Determination 2. Motivating Followers 3.

Direction 4. Coordination 5. Representation Importance of Leadership 1.

Aid to authority 2. Motive power to group efforts 3. Basis for co operation 4. Integration of Formal and Informal Organization. Theories 1. Trait Theory — A Leader is a one who has got a enthusiastic look, courageous look — describes the external qualities of a person 2. Behavioral Theory — A person who intend to be leader, they do not have any qualities like Trait Theory 3. Contigency Theory — a.

Fiedler Model b. Likert Model c. Managerial Grid Theory 64 Fiedler Model - Leaders can be classified as two - a. Relationship Oriented b. Task Oriented 3 Situations been given to find the performance of two types of Leader- — Leader member Relationships - Task Structure - Position Power Employees under Relationship oriented Leader seems to achieve more performance than the other.

Likerts Model System 1 — Exploitive Autocratic Leader oriented towards task alone System 2 — Benevolent Autocratic Leader task oriented but has the quality of opposing if things are good System 3 — Participative Leader concerns the employees for a particular kind of work, though he concern decision will be taken only by him. System 4 — Democratic Leader 3 Situations 1. Subordinates feeling of freedom 3.

Leaders concerned for People 2. Task Manager Eg Defence , Concerned only on task 2. Team Builders — leaders high concern for production as well as people 3. Impoverished Style — Unfit for Leadership qualities, less concern for people as well as production 4. Country club Manager Eg — Trade union, high concern for people than production.

Communication is the interchange of thoughts and information. Sender 2. Message — The Subject matter of Communication 3. Encoding — act of translating he msg into words, pictures, symbols 4. Channel — Media used 5.

Receiver — 6. Decoding — interprets the msg to draw meaning from it. He converts symbols, signs or pictures into meaning 7. Feedback — Sound Communication provides the following advantage 1. Improves Mangerial Performance 2. Facilitates Leadership 3. Increases job Satisfaction 4. Reduces time and efforts 5.

Enhances coordination 6. Formal Communication — follows the route formally laid down in the organization structure a. Downward Communication — flow of communication from superior to subordinate b. Upward Communication - flow of communication from subordinate to superior c.

Book Information

Horizontal Communication — transmission of information among the positions at the same level of he Organization. Informal Communication or Grapevine — Communication among people through informal contacts or relations.

Distinguish between Downward and Upward Communication Down ward Upward From higher to lower levels From lower to higher levels Flow is downward Flow is upward Directive in nature Non-directive Purpose is to get plans implemented Purpose is to provide feedback on results Travels fast Travels slowly Orders, instructions, lectures, manuals, handbooks, etc are the main examples Reports, suggestions, grievances, protests, surveys are the main examples.

Distinction between Formal and Informal Communication Formal Communication Informal Communication Official Channel Unofficial Channel Deliberately Planned and Systematic Unplanned and Spontaneous Part of Organization Structure Cuts across formal relationships Oriented towards goals and task of the enterprises Directed towards goals and need satisfaction of individuals Impersonal Personal and social Stable and rigid Flexible and instable Slow and Structured Fast and Unstructured Grapevine Merits and Demerits Merits Demerits Useful for developing group cohesiveness Based on rumors Serves as an emotional safety value Misleads People Effective source of knowledge feelings and attitudes of Employees May breed against particular executives Supplements the channels of official communication May lead to more talk and less work Tells mgt when to be firm and when to yield May distort official channels of communication 67 Oral Communication 2.

Written Communication 3. It may take place. Merits Oral or Verbal communication offers the following advantages: Economical 2. Personal touch 3. Speed 4. Flexibility 5. Quick response Demerits Oral Communication suffers from the following weaknesses- 1.

Lack of record 2. Time Consuming 3. Lengthy message 4. Physical distance 5. Effectiveness 2. Lengthy messages 3. Economical 4. Repetition 5. Permanent record 6. Better response 68 Demerits 1. Time Consuming 2.Relay assembly Test room Experiments Working conditions and Productivity , piece work, rest pauses, shorter working hours, 3.

Goal Determination 2. Lack of ability 3. Domestic Industries finds difficulty in survival 76 Representation Importance of Leadership 1. The principles enable managers to decide what should be done to accomplish given tasks and to handle situations which may arise in management.

Demerits 45 Order According to this principle of the 14 principles of management, employees in an organization must have the right resources at their disposal so that they can function properly in an organization. Setting preliminary Objectives 2. Fixation of responsibility 5.

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