Introduction

By unnati tuladhar rajbhandari

 Concepts and meaning of management
• Management is the process of designing and maintaining an
environment in which individuals, working together ,in
groups, efficiently accomplish selected aims.
• Management is the art of getting things done through and
with people in formally organized groups.
 Essence of management
1. Goal oriented
2. Universal activity
3. Social process
4. Dynamic/modifiable activity
5. Group activity
6. Distinct process
7. Both science and art
8. A profession
9. Multi-disciplinary in nature
 Principles of management
1. Division of work
2. Authority and responsibility
3. Unity of command
4. Unity of direction
5. Scalar chain of command(Hierarchy)
6. Span of management
7. Superiority of organization interests
8. Discipline
9. Human resource management
10. Management by exception
11. Supportive relationships
 Principles of Management
• 1. Division of Work
• In practice, employees are specialized in different areas and
they have different skills. Different levels of expertise can be
distinguished within the knowledge areas (from generalist to
specialist). Personal and professional developments support
this. According to Henri Fayol specialization promotes
efficiency of the workforce and increases productivity. In
addition, the specialization of the workforce increases their
accuracy and speed. This management principle of the 14
principles of management is applicable to both technical and
managerial activities.
• 2. Authority and Responsibility
• In order to get things done in an organization, management
has the authority to give orders to the employees. Of course
with this authority comes responsibility. According to Henri
Fayol, the accompanying power or authority gives the
management the right to give orders to the subordinates. The
responsibility can be traced back from performance and it is
therefore necessary to make agreements about this. In other
words, authority and responsibility go together and they are
two sides of the same coin.
• 3. Discipline
• This third principle of the 14 principles of management is
about obedience. It is often a part of the core values of a
mission and vision in the form of good conduct and respectful
interactions. This management principle is essential and is
seen as the oil to make the engine of an organization run
smoothly.
• 4. Unity of Command
• The management principle ‘Unity of command’ means that an
individual employee should receive orders from one manager
and that the employee is answerable to that manager. If tasks
and related responsibilities are given to the employee by
more than one manager, this may lead to confusion which
may lead to possible conflicts for employees. By using this
principle, the responsibility for mistakes can be established
more easily.
• 5. Unity of Direction
• This management principle of the 14 principles of
management is all about focus and unity. All employees
deliver the same activities that can be linked to the same
objectives. All activities must be carried out by one group that
forms a team. These activities must be described in a plan of
action. The manager is ultimately responsible for this plan and
he monitors the progress of the defined and planned
activities. Focus areas are the efforts made by the employees
and coordination.
• 6. Subordination of Individual Interest
• There are always all kinds of interests in an organization. In
order to have an organization function well, Henri Fayol
indicated that personal interests are subordinate to the
interests of the organization (ethics). The primary focus is on
the organizational objectives and not on those of the
individual. This applies to all levels of the entire organization,
including the managers.
• 7. Remuneration
• Motivation and productivity are close to one another as far as
the smooth running of an organization is concerned. This
management principle of the 14 principles of management
argues that the remuneration should be sufficient to keep
employees motivated and productive. There are two types of
remuneration namely non-monetary (a compliment, more
responsibilities, credits) and monetary (compensation, bonus
or other financial compensation). Ultimately, it is about
rewarding the efforts that have been made.
• 8. The Degree of Centralization
• Management and authority for decision-making process must
be properly balanced in an organization. This depends on the
volume and size of an organization including its hierarchy.
• Centralization implies the concentration of decision making
authority at the top management (executive board). Sharing
of authorities for the decision-making process with lower
levels (middle and lower management), is referred to as
decentralization by Henri Fayol. Henri Fayol indicated that an
organization should strive for a good balance in this.
• 9. Scalar Chain
• Hierarchy presents itself in any given organization. This varies
from senior management (executive board) to the lowest
levels in the organization. Henri Fayol ’s “hierarchy”
management principle states that there should be a clear line
in the area of authority (from top to bottom and all managers
at all levels). This can be seen as a type of management
structure. Each employee can contact a manager or a superior
in an emergency situation without challenging the hierarchy.
Especially, when it concerns reports about calamities to the
immediate managers/superiors.
• 10. 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. In addition to social order
(responsibility of the managers) the work environment must
be safe, clean and tidy.
• 11. Equity
• The management principle of equity often occurs in the core
values of an organization. According to Henri Fayol,
employees must be treated kindly and equally. Employees
must be in the right place in the organization to do things
right. Managers should supervise and monitor this process
and they should treat employees fairly and impartially.
• 12. Stability of Tenure of Personnel
• This management principle of the 14 principles of
management represents deployment and managing of
personnel and this should be in balance with the service that
is provided from the organization. Management strives to
minimize employee turnover and to have the right staff in the
right place. Focus areas such as frequent change of position
and sufficient development must be managed well.
• 13. Initiative
• Henri Fayol argued that with this management principle
employees should be allowed to express new ideas. This
encourages interest and involvement and creates added value
for the company. Employee initiatives are a source of strength
for the organization according to Henri Fayol. This encourages
the employees to be involved and interested.
• 14. Esprit de Corps
• The management principle ‘esprit de corps’ of the 14
principles of management stands for striving for the
involvement and unity of the employees. Managers are
responsible for the development of morale in the workplace;
individually and in the area of communication. Esprit de corps
contributes to the development of the culture and creates an
atmosphere of mutual trust and understanding.
• In conclusion on the 14 Principles of management
• The 14 principles of management can be used to manage
organizations and are useful tools for forecasting, planning,
process management, organization management, decision-
making, coordination and control.
• Although they are obvious, many of these matters are still
used based on common sense in current management
practices in organizations. It remains a practical list with focus
areas that are based on Henri Fayol ’s research which still
applies today due to a number of logical principles.
 Functions of management
• There are five functions of management and leadership:
planning, organizing, staffing, coordinating and controlling.
These functions separate the management process from
other business functions such as marketing, accounting and
finance.
• 1. Planning
• Planning is looking ahead. According to Henri Fayol, drawing
up a good plan of action is the hardest of the five functions of
management.
• This requires an active participation of the entire organization.
With respect to time and implementation, planning must be
linked to and coordinated on different levels.
• Planning must take the organization’s available resources and
flexibility of personnel into consideration as this will
guarantee continuity.
• 2. Organizing
• An organization can only function well if it is well-organized.
This means that there must be sufficient capital, staff and raw
materials so that the organization can run smoothly and that
it can build a good working structure.
• The organizational structure with a good division of functions
and tasks is of crucial importance.
• When the number of functions increases, the organization will
expand both horizontally and vertically.
• This requires a different type of leadership. Organizing is an
important function of the five functions of management.
• 3. Commanding
• When given orders and clear working instructions, employees
will know exactly what is required of them.
• Return from all employees will be optimized if they are given
concrete instructions with respect to the activities that must
be carried out by them.
• Successful managers have integrity, communicate clearly and
base their decisions on regular audits.
• They are capable of motivating a team and encouraging
employees to take initiative
• 4. Coordinating
• When all activities are harmonized, the organization will
function better. Positive influencing of employees behaviour is
important in this.
• Coordination therefore aims at stimulating motivation and
discipline within the group dynamics. This requires clear
communication and good leadership.
• Only through positive employee behaviour management can
the intended objectives be achieved.
• 5. Controlling
• By verifying whether everything is going according to plan,
the organization knows exactly whether the activities are
carried out in conformity with the plan.
• Control takes place in a four-step process:
1.Establish performance standards based on organizational
objectives
2.Measure and report on actual performance
3.Compare results with performance and standards
4.Take corrective or preventive measures as needed
 Levels of management
• The division of an organization into different departments on
the basis of nature of functions and appointment of managers
of different levels to maintain unity of command is managerial
hierarchy.
• The term “Levels of Management’ refers to a line of
demarcation between various managerial positions in an
organization. The number of levels in management increases
when the size of the business and work force increases and
vice versa. The level of management determines a chain of
command, the amount of authority & status enjoyed by any
managerial position. The levels of management can be
classified in three broad categories:
• Top level / Administrative level
• Middle level / Executory
• Low level / Supervisory / Operative / First-line managers
• Managers at all these levels perform different functions. The
role of managers at all the three levels is discussed below:
 Top Level of Management
• It consists of board of directors, chief executive or managing director. The top
management is the ultimate source of authority and it manages goals and
policies for an enterprise. It devotes more time on planning and coordinating
functions.
• The role of the top management can be summarized as follows -
– Top management lays down the objectives and broad policies of the enterprise.
– It issues necessary instructions for preparation of department budgets, procedures,
schedules etc.
– It prepares strategic plans & policies for the enterprise.
– It appoints the executive for middle level i.e. departmental managers.
– It controls & coordinates the activities of all the departments.
– It is also responsible for maintaining a contact with the outside world.
– It provides guidance and direction.
– The top management is also responsible towards the shareholders for the performance
of the enterprise
 Middle Level of Management
• The branch managers and departmental managers constitute middle level. They are
responsible to the top management for the functioning of their department. They devote
more time to organizational and directional functions. In small organization, there is only
one layer of middle level of management but in big enterprises, there may be senior and
junior middle level management. Their role can be emphasized as -
–They execute the plans of the organization in accordance with the policies and directives
of the top management.
–They make plans for the sub-units of the organization.
–They participate in employment & training of lower level management.
–They interpret and explain policies from top level management to lower level.
–They are responsible for coordinating the activities within the division or department.
–It also sends important reports and other important data to top level management.
–They evaluate performance of junior managers.
–They are also responsible for inspiring lower level managers towards better performance.
 Lower Level of Management
• Lower level is also known as supervisory / operative level of
management. It consists of supervisors, foreman, section
officers, superintendent etc. According to R.C. Davis,
“Supervisory management refers to those executives whose
work has to be largely with personal oversight and direction of
operative employees”. In other words, they are concerned
with direction and controlling function of management. Their
activities include
– Assigning of jobs and tasks to various workers.
– They guide and instruct workers for day to day activities.
– They are responsible for the quality as well as quantity of
production.
– They are also entrusted with the responsibility of
maintaining good relation in the organization.
– They communicate workers problems, suggestions, and
recommendatory appeals etc to the higher level and
higher level goals and objectives to the workers.
– They help to solve the grievances of the workers.
– They supervise & guide the sub-ordinates.
– They are responsible for providing training to the workers.
– They arrange necessary materials, machines, tools etc for
getting the things done.
– They prepare periodical reports about the performance of
the workers.
– They ensure discipline in the enterprise.
– They motivate workers.
– They are the image builders of the enterprise because they
are in direct contact with the workers
 Types of managers
• On the basis of levels of management
1. Top level managers
2. Middle level managers
3. Lower level managers
On the basis of nature or area of managerial
job
• CORPORATE-LEVEL GENERAL MANAGERS
• The principal general manager at the corporate level is the
chief executive officer (CEO), wholeads the entire enterprise. In
a multidivisional enterprise the CEO formulates strategies that
span businesses—deciding, for example, whether to enter new
businesses through acquisitions or whether to exit a business
area. The CEO decides how the enterprise should be organized
into different divisions and signs off on major strategic
initiatives proposed by the heads of divisions. The CEO
exercises control over divisions, monitoring their performance
and deciding what incentives to give divisional heads. Finally,
the CEO helps develop the human capital of the enterprise.
BUSINESS-LEVEL GENERAL MANAGERS
• Business-level general managers lead their divisions—
motivating, influencing, and directing their subordinates—and
are responsible for divisional performance. Business-level
general managers translate the overall strategic vision for the
corporation into concrete strategies and plans for their units.
• Businesslevel general managers organize operations within their
division, deciding how best to divide tasks into functions and
departments and how to coordinate those subunits so that
strategy can be successfully implemented. Business-level general
managers also control activities within their divisions,
monitoring performance against goals, intervening to take
corrective action when necessary, and developing human capital.
 FUNCTIONAL MANAGERS
• Functional managers motivate, influence, and direct others
within their areas. Although they are not responsible for the
overall performance of the organization, functional managers
nevertheless have a major strategic role: to develop
functional strategies and draft plans in their areas that help
fulfill the strategic objectives set by business- and corporate-
level general managers.
• The heads of functions are responsible for developing human
capital within their organizations. They also organize their
functions into subunits such as departments or teams;
exercise control over those subunits; set goals; monitor
performance; provide feedback; and make adjustments if
necessary. Thus the manufacturing function might be further
subdivided into departments responsible for specific aspects
of the manufacturing process.
 FRONTLINE MANAGERS
• Frontline managers are critical to maintaining the
performance of an organization. They lead their teams and
units. They strategize about the best way to do things in their
units and about the best strategies for their functions and the
company. They plan how best to perform the tasks of their
units. They organize tasks within their teams, monitor the
performance of their subordinates, and try to develop the
skills of their subordinates.
 Managerial skills
• The ability to make business decisions and lead subordinates
within a company. Three most common skills include:
• 1) human skills - the ability to interact and motivate;
• 2) technical skills - the knowledge and proficiency in the
trade; 3) conceptual skills - the ability to understand
concepts, develop ideas and implement strategies.
Competencies include communication ability, response
behavior and negotiation tactics.
 Managerial roles
• A. Interpersonal Roles
• Managers spend a considerable amount of time in interacting
with other people both within their own organizations as well
as outside. These people include peers, subordinates,
superiors, suppliers, customers, government officials and
community leaders. All these interactions require an
understanding of interpersonal relations
• Figurehead: Managers act as symbolic figureheads
performing social or legal obligations. These duties include
greeting visitors, signing legal documents, taking important
customers to lunch, attending a subordinate’s wedding or
speaking at functions in schools and churches. All these/
primarily, are duties of a ceremonial nature but are important
for the smooth functioning of the organization
• Leader: The influence of the manager is most clearly seen in
his role as a leader of the unit or organization. Since he is
responsible for the activities of his subordinates, he must lead
and coordinate their activities in meeting task-related goals
and he must motivate them to perform better. He must be an
exemplary leader so that his subordinates follow his directions
and guidelines with respect and dedication.
• Liaison: In addition to their constant contact with their own
subordinates, peers and superiors, the managers must
maintain a network of outside contacts in order to assess the
external environment of competition, social changes or
changes in governmental rules, regulations and laws. In this
role, the managers build up their own external information
system.
 B . Informational Roles
• By virtue of his interpersonal contacts, a manager emerges as
a source of information about a variety of issues concerning
the organization. In this capacity of information processing, a
manager executes the following  three roles:
• Monitor: The managers are constantly monitoring and
scanning their environment, both internal and external,
collecting and studying information regarding their
organization and the outside environment affecting their
organization.
• Disseminator of  Information: The managers must transmit
their information regarding changes in policies or other
matters to their subordinates, their peers and to other
members of the organization.
• Spokesperson: A manager has to be a spokesman for his unit
and he represents his unit in either sending relevant
information to people outside his unit or making some
demands on behalf of his unit. This may be in the form of the
president of the company making a speech to a lobby on
behalf of an organizational cause or an engineer suggesting a
product modification to a supplier.
 C . Decisional Roles
• Entrepreneur: As entrepreneurs, managers are continuously
involved in improving their units and facing the dynamic
technological challenges. They are constantly on the lookout
for new ideas for product improvement or products addition.
• Conflict Handler: The managers are constantly involved as
arbitrators in solving differences among the subordinates or
the employee’s conflicts with the central management
• Resource Allocator: The third decisional role of a manager is
that of a resource allocator. The managers establish priorities
among various projects or programs and make budgetary
allocations to the different activities of the organization based
upon these priorities.
• Negotiator: The managers represent  their units or
organizations in negotiating deals and agreements within and
outside of the organization. They negotiate contracts with the
unions. Sale managers may negotiate prices with prime
customers. Purchasing managers may negotiate prices with
vendors.
 Becoming a manager
• A person needs to develop different skill to prove himself as a
successful manager.
1. Role of education
2. Role of experience
3. Role of situation