Introduction to Principles

and Functions of
Management
• Management:
• Meaning, Principles and
Functions of Management.
• Different Schools of Management
and Management Thought.
 me n t Is …
Manage

Efficiency
Getting work
done through
others Effectiveness
 n cy a n d
Efficie
cti ve n es s
Effe
Principles of Management – F.W. Taylor

Develop a science for each element of a man’s work,

which replaces the old rule-of-thumb method.

Scientifically select and then train, teach, and

develop the workmen.

Cooperate with the men to insure all work is done in

accordance with the principles of the science.

There is almost equal division of the work and the

responsibility between management and workmen.
 Time & Motion Studies:
TimeFrank
Study & Lillian Gilbreth
Timing how long it takes good workers
to complete each part of their jobs.

Motion Study
Breaking each task into its separate
motions and then eliminating those that are
unnecessary or repetitive.
Functions of Management
Principles of Management – Henry Fayol 14
Division of Work: allows for job specialization. Work .1
.should be divided among individuals and groups
Authority and Responsibility: Authority right to .2
give orders. Responsibility involves being answerable
Whoever assumes authority assumes responsibility
Discipline: Common efforts of workers. Penalties .3
Unity of Command: Employees should have only .4
.one boss
Unity of Direction: A single plan of action to guide .5
.the organization
Subordination of individual interests to the .6
general interests of organization
 Remuneration: An equitable uniform payment .7
.system that motivates and contribute to success
Centralization: The degree to which authority rests .8
.at the top of the organization
.Scalar Chain: Chain like authority scale .9
Order: The arrangement of employees where they .10
.will be of the most value to the organization
Equity: The provision of justice and fair dealing .11
Stability of Tenure of Personnel .12
Initiative .13
Esprit de corps: Harmony, general good feeling .14
among employees
 Planning and
Decision Making

Defining goals, establishing

strategy and developing sub
plans to choose alternatives
and coordinate activities
 Systems Approach to Management
EXTERNAL ENVIRONMENT

INPUTS
Human,Capital,Managerial,
Technological,Goals
C
Planning O
External environment
M
M -opportunities
Organising U
N -threat
Staffing I
C
A
Leading T
I
Controlling O
N
OUTPUTS
Products, Services, Satisfaction,
Goal integration, Profits, etc.
 Organizing
• Deciding where
decisions will be made

• Who will do what jobs

and tasks

• Who will work for whom

 Leading

Inspiring

Leading
Motivating
 Controlling

Monitoring progress
towards goal achievement
and taking corrective
action when needed
 Levels and Areas of Management
Levels of Management
Top managers

Middle managers

First-line managers

s
ns

n
g

ce
e

io

er
tin

nc

tio

ur

at

th
ke

na

ra

tr
so

O
ar

is
pe
Fi

re

in
M

dm
an
um

A
Areas of Management
H
 Role of Top Managers
Creating a context for change

Developing commitment
and ownership in employees

Creating a positive organizational

culture through language and action

Monitoring their business environments

 ?What Middle Managers Do
Plan and allocate resources to meet objectives

Coordinate and link groups,

departments, and divisions

Monitor and manage the performance

of subunits and managers who report to them

Implement changes or strategies

generated by top managers
 Responsibilities of
First-Line Managers
Manage the performance of
entry-level employees

Encourage, monitor, and reward

the performance of workers

Teach entry-level employees how to do

their jobs

Make detailed schedules and operating

plans
 Managerial Skills

Technical Skills Human Skills

Motivation to
Conceptual Skills
Manage
 Managerial Challenges
Ethics

Knowledge
Management
Diversity

MANAGER
Innovation Globalization

Customers E-Business
History: Schools of Management Thought (start)
Quality
Viewpoint
Contingency
Viewpoint
Systems
Viewpoint
Behavioral
Viewpoint
Traditional
Viewpoint
1910
 Traditional Viewpoint

Administrative
Management

Bureaucratic Goals:
Efficiency
Management
Consistency

Scientific
Management
Characteristics of Bureaucratic Management

Rules—formal guidelines for the behavior of

employees on the job

Impersonality—employees are evaluated

according to rules and objective data

Division of Labor—splitting work into

specialized positions
What is Scientific Management
 Administrative Management

Fourteen Principles of
Management given by
Henry Fayol
 What is Behavioral Viewpoint
Focuses on dealing effectively with the
human aspects of organizations

Started in the 1930’s

 Emphasis on working conditions

Workers wanted respect

Workers formed unions to bargain

with management
Systems View of Organizations
What is Contingency Approach
Problem or Situation

Important
Contingencies

Solution or Solution or Solution or

Action A Action B Action C
 Quality Approach:
Positive
Lower Costs
Company
and Higher
Image
Market Share

Decreased
Product Liability
Quality
 Managerial Roles
Interpersonal Informational Decisional

Figurehead Monitor Entrepreneur

Leader Disseminator Disturbance

Handler
Liaison Spokesperson
Resource
Allocator

Negotiator