PRINCIPLES OF MANAGEMENT

The essence of the topic is the principle of management is to share more light on
what it takes to be a successfully manager, what managers do and the difference
among managers.

ABOUT MANAGEMENT
Management is the process of planning, organizing, leading, staffing and controlling
the activities of various resources within the organization through coordination of
human efforts to achieve organization objectives.

Management means directing and controlling of a group of people or an organization

to reach or achieve a goal or an objectives.

In “Management” An organization can only achieve it goals and objectives by

coordinated efforts of its members and why it is the task of managers to get the work
done through it people.

LEVELS OF MANAGEMENT
There are three different types of level management , which are:

1. TOP LEVEL MANAGEMENT (Administrative)

Board Directors, MD managing director , Owner, Chief Executives

• To analyze, evaluate and deal with the environment forces.
• To appoint departmental and other key executives.
• To represents the company to the outside world.

2. MIDDLE LEVEL MANAGEMENT (Executives)

Sales Executives, Production Executives,HOD’s
• To interpret and explained the policies framed by top management.
• To motivate supervisory personnel to work for organization goals.
• To develop and train supervisory and operative personal.

3. LOWER LEVEL MANAGEMENT (Supervisors)

Superintendents, Brand Managers, Foremen
• To supervise, control workers and to maintain personal contact with them.
• To assign jobs to workers and to make arrangement for their training and
development.
• They look after the problems of the workers and try to solve them

ROLES OF MANAGEMENT
1. INTERPERSONAL ROLE: They interact with people both inside and outside the
organization.
The three managers role that involves basic interpersonal relationship
a. Figure head – As a head of an organization, the manager performs routine
duties of a legal nature.
b. Leader – They hire, train, motivate and guide subordinates.
c. Liaison – They interact with other managers outside the organization to obtain
favors and information.

2. INFORMATIONAL ROLE: They serve as a focal point for exchange of information in

the organization. Such as;
a. Monitor – They receive information concerning internal and external events so as
to gain understanding of the organization and its environment.
b. Disseminator – They transmits information to subordinates, peers and superiors
within the organization.
c. Spokesperson–They speak on behalf of the organization and transmitting
information on organizational plans, policies and actions to outsiders.

3. DECISIONAL ROLE: They make important decision for the organization to achieve
its goals. Such as;

a. Disturbance Handler – They take corrective action when organization faces

unexpected crisis.
b. Resource Allocator–They distribute organization resource like money, time,
equipment and labour.
c. Negotiator – They represent the organization in bargaining and negotiations with
outsider and insider.

PRINCIPLE OF MANAGEMENT
The 14 principle of management created by Henryfayol
1. Division of work: Its help to increase efficiency which results in improvements in
the productivity and profitability of the organization.
2. Authority and Responsibility: Most have the authority to give order but they most
also keep in mind that with authority comes responsibility.
3. Discipline: Means respect for the rules and regulations of the organization such as
self- discipline or enforced discipline.
4. Unity of Command: Employees should have only one direction that is the
supervisor.
5. Unity of Direction: All activities which have the same objectives must be directed
by one manager and must use one plan.
6. Subordination of individual: The individual interest should be given less
importance while the general interest should be given the most importance.
7. Remuneration:Employees satisfaction depends on fair remuneration for everyone,
this includes financial and non financial compensation.
8. Centralization:This principle refers to how close employees are to the decision
making process.
9. Scalar chain:Employees should be aware of where they stands in the organization’s
hierarchy or chain of command.
10. Order: Is an orderly placement of the human and material resources must be in
the right place at the right time. Misplacement will lead to misuse and disorder such
as material order and social order.
11. Equity: Managers should be fair to staffs at all time both maintaining disciple as
necessary and acting with kindness where appropriate.
12. Stability: Employees need to be given fair enough time to settle into their jobs. An
employee needs time to learn his/her job and to become efficient.
13. Initiative:Employees should be given the necessary level of freedom to crate and
carry out plans.
14. Esprit de Corps: Means team spirit. The management should create unity, co-
operation and team spirit among the employee.

FUNCTIONS OF MANAGEMENT
1. Planning: Is the beginning phase of the organization and the most important to
predict strategic, tactical and operational plan for future events.
2. Organizing: Is the function that involves in developing an organizational structure
and allocating human resources to ensure the accomplishment objectives.
3. Staffing: Is the functions that involves manning the organization structure through
proper and effective selection, appraisal and development of personnel to fill the
roles designed on the structure.
4. Directing: Is the function that involves the social and informal sources of influence
that is use to inspire action taken by others.
5. Controlling: Is the function that everything is being carry out in accordance with
the plan which has been adapted, the orders which has been given, and the principle
which has been laid down.
6. Coordinating: Is the function that involves all the people, groups, units,
departments and all activities within every enterprise where people work together
for attaining the goals for the enterprise.