FUNDAMENTALS OF MANAGEMENT

Management is the administration of an organization, whether it is a

business, a non-profit organization, or a government body. It is the act of
getting people together to accomplish desired goals and objectives using
available resources efficiently and effectively.

There are five function of management which are PLANNING,

ORGANIZING,STAFFING, LEADING, and CONTROLLING.

Planning

It is the basic function of management. It deals with chalking out a

future course of action & deciding in advance the most appropriate
course of actions for achievement of pre-determined goals. It is an
exercise in problem solving & decision making. Planning is
determination of courses of action to achieve desired goals.
Planning is necessary to ensure proper utilization of human & non-
human resources. It is all pervasive, it is an intellectual activity and
it also helps in avoiding confusion, uncertainties, risks, wastages
etc.

Organizing

It is the process of bringing together physical, financial and human

resources and developing productive relationship amongst them for
achievement of organizational goals. 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’s”. To
organize a business involves determining & providing human and
non-human resources to the organizational structure. Organizing as
a process involves:

1. Identification of activities.
2. Classification of grouping of activities.
3. Assignment of duties.
4. Delegation of authority and creation of responsibility.
5. Coordinating authority and responsibility relationships.

Staffing

It is the function of manning the organization structure and keeping

it manned. Staffing has assumed greater importance in the recent
years due to advancement of technology, increase in size of
business, complexity of human behavior etc. The main purpose o
staffing is to put right man on right job i.e. square pegs in square
holes and round pegs in round holes. According to Kootz &
O’Donell, “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

1. Manpower Planning (estimating man power in terms of

searching, choose the person and giving the right place).
2. Recruitment, Selection & Placement.
3. Training & Development.
4. Remuneration.
5. Performance Appraisal.
6. Promotions & Transfer.
Directing

It is that part of managerial function which actuates the

organizational methods to work efficiently for achievement of
organizational purposes. It is considered life-spark of the enterprise
which sets it in motion the action of people because planning,
organizing and staffing are the mere preparations for doing the
work. Direction is that inert-personnel aspect of management
which deals directly with influencing, guiding, supervising,
motivating sub-ordinate for the achievement of organizational
goals. Direction has following elements:

1. Supervision
2. Motivation
3. Leadership
4. Communication

Supervision- implies overseeing the work of subordinates by their

superiors. It is the act of watching & directing work & workers.

Motivation- means inspiring, stimulating or encouraging the sub-

ordinates with zeal to work. Positive, negative, monetary, non-
monetary incentives may be used for this purpose.

Leadership- may be defined as a process by which manager

guides and influences the work of subordinates in desired direction.

Communications- is the process of passing information,

experience, opinion etc from one person to another. It is a bridge of
understanding.
Controlling

It implies measurement of accomplishment against the standards

and correction of deviation if any to ensure achievement of
organizational goals. The purpose of controlling is to ensure that
everything occurs in conformities with the standards. An efficient
system of control helps to predict deviations before they actually
occur. According to Theo Haimann, “Controlling is the process of
checking whether or not proper progress is being made towards the
objectives and goals and acting if necessary, to correct any
deviation”. According to Koontz & O’Donell “Controlling is the
measurement & correction of performance activities of
subordinates in order to make sure that the enterprise objectives
and plans desired to obtain them as being accomplished”.
Therefore controlling has following steps:

1. Establishment of standard performance.

2. Measurement of actual performance.
3. Comparison of actual performance with the standards and
finding out deviation if any.
4. Corrective action.
 A principle refers to a fundamental truth. It establishes cause and
effect relationship between two or more variables under given situation.
They serve as a guide to thought & actions. Therefore, management
principles are the statements of fundamental truth based on logic which
provides guidelines for managerial decision making and actions.

The five functions are planning, organizing, staffing, directing, and

controlling. On the other hand, the fourteen principles of management are
as follows:

1. Division of work into specialized tasks, with specific duties and

responsibilities given to individuals
2. Authority of managers to delegate work and tasks to the employees.
The employers, in turn, are expected to comply and exercise their tasks
responsibly.
3. Discipline where expectations should be clearly set and violators of
rules must be punished
4. Unity of command where an employee should only report to one
supervisor
5. Unity of direction which means that the efforts of the employees are
guided toward the attainment of organizational objectives
6. Predominance of the general interest of the organization over the
individual interests of employees
7. Remuneration of the efforts of the employees which should be
systematically rewarded in line with the organization's vision and mission
8. Centralization where the roles of all employees are clarified, with
emphasis on the distinction between superior and subordinate roles
9. Scalar chain which means that communication should be open within
the chain of command
10. Order where the organization of jobs and materials must be done in
an orderly fashion
11. Equity which means that fairness and order must be practiced to
maintain employee commitment
12. Stability and tenure of personnel to actively promote employee
loyalty to the organization
13. Initiative to encourage employees to act on their own in support of
the organization's objectives
14. Esprit de corps to promote teamwork and the unity of interest
between the employees and the management

The 14 principles are important in organization because it is an indication

of people adopting a more rational view on leadership. It enables workers
with different traits, skills, and goals to work together and contribute
toward performing a common task.