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Management Principles and Practice

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 Unit I:
INTRODUCTION TO MANAGEMENT
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Introduction - Definition & Meaning, Evolution of Management thought, pre-

scientific management era, classical management era, neo-classical
management era, modern management era; Nature and Characteristics of
Management - Scope and functional areas of Management; Management as a
Science, Art or Profession; Management and Administration; Henry Fayol’s -
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processes, Styles & Roles of Managers in Organizations.

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PRESIDENCY COLLEGE
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What is Management?
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You managed
1. Time
2. Stress
3. Attitude
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4. Decorum - the way you sit, listen, reply, Clearing
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If so, you can now start learning how to manage people,

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 Meaning and Definition of Management
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Management is the act of getting people

together to accomplish desired goals and
objectives using available resources
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efficiently and effectively.

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 Evolution of Management thought
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The Industrial Revolution in the early 19th century

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brought massive changes in the workplace. As factories

were the primary source of employment, management
theorists studied the operations and workforce present
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on the factory floors.
There were times when the demand was high but the lack
of productivity and efficiency held workplaces back. The
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Industrial Revolution gave birth to multiple management
theories and concepts that developed over time and are
still relevant today.
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To understand the entire concept of evolution of the

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management thought, the topic is divided into 4 major

stages, which are as follows:
• Pre-scientific management period
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• Neo-classical theory ( or behaviour approach)

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 Pre- Scientific Management Era
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• Family unit was the basic production organization. A skilled craftsman

taught his sons a trade, and the family was known by its particular trade
and skill. Modern surnames as Carpenter, Goldsmith, Farmer, and Taylor
are evidence of this development. 
• There was still no need for separate attention to managerial activities.
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• The inventions of the eighteenth century initiated a change which
Toynbee later called the Industrial Revolution. Production moved from the
home to a separate installation – the factory – where machinery was
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concentrated and labor employed.
 Pre- Scientific Management Era
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• In the early nineteenth century, the need for larger aggregations of capital
to support factory operations resulted in increased applications of a
special legal form of organizing a business. The corporation, as a separate
legal entity, could sell shares of stock to many individuals and thus raise
large sums of capital. 
Reaccredited by
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early nineteenth century. In England, social reformers sought legal
regulation of employment practices 
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• Robert Owen, as manager of a large textile firm in New Lanark, Scotland,
concentrated on the improvement of working conditions and on the
development of a model community. 
 Pre- Scientific Management Era
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• After the industrial revolution, the newer dimension taken by

management is because of the involvement of certain notable
personalities who introduced some effective ideas and approaches for
giving management an acceptable and precise direction.

a brief on some of the personalities and their theories:

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Prof. Babbage was a renowned Mathematics professor at Cambridge
University. He discovered that manufacturers rely on guessing and
suggesting . He advised them for utilizing science and mathematics to be
more productive and accurate.
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introduced methods like work measurement, cost determination, bonus
plans and profit sharing to improve industrial productivity.
 Pre- Scientific Management Era
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• Robert Owens (UK 1771 – 1858): Robert Owens, the promoter of co-

operative and trade union movement in England, emphasized the
recognition of human element
in industry. He firmly believed that workers’ performance in industry was
influenced by the working conditions and treatment of workers. He
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housing facilities, training of workers in hygiene, education of their
children, provision of canteen etc. Robert Owen, managed a group of
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relations. Though his approach was paternalistic, he came to be regarded
as the father of Personnel Management.
 Pre- Scientific Management Era
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Charles Dupin:
He was an industrial educator in France. According to
him, besides technical knowledge for contributing to
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management skills to maximize industrial output. He

emphasized more on management education than
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 Pre- Scientific Management Era
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James Watt Junior (UK 1796 – 1848) and Mathew
Robinson Boulton (1770 – 1842): James Watt Junior
and Mathew Robinson Boulton contributed to the
development of management thought by following certain
management techniques in their engineering factory.
They are:
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** Standardization of Components
** Maintenance
** Planned machine layout
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** Scheme for executive development
** Marketing Research and forecasting.
** Elaborate statistical records.
 Classical Management Era
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• Classical Management Theory is concerned with
finding the best way for workers to perform and
manage their tasks. 
• It is the oldest theory of management and is, therefore,
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classical viewpoint finds ways to manage business
organisations effectively. It includes management
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theories that provide foundation to the study of
management. It is the first step towards the study of
management as a distinct field of study.
 The Evolution of Classical Management Theory
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The Industrial Revolution was a time

where innovation really began to change the way that
products were produced and sold. The invention of
machines to produce goods in the 19th century
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the cost to the consumer. The lower price resulted in a

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greater demand for products and thus a greater need for
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more factories and workers.

 The Evolution of Classical Management Theory
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As factories increased in number, managers continued to

search for ways to improve productivity, lower cost,
increase quality of their products, improve
employee/manager relationships and increase efficiency.
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productivity to how they could increase employee

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productivity and efficiency. When they did this, they
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began to notice some new problems inside their factory

systems.
 The Evolution of Classical Management Theory
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Employees were dissatisfied with their current working

conditions, and many lacked the necessary training for
how to do their work efficiently.
Managers then began to formulate and test possible
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solutions, one of which was to find the best possible
way for workers to perform and manage their tasks. The
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management theory.
 The Evolution of Classical Management Theory
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Classical management theory is based on the belief that

workers only have physical and economic needs. Unlike
more modern workplace management theories, it does
not take into account social needs or job satisfaction.
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specialization of labor, centralized leadership and

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decision-making, and profit maximization.
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 3 Main Concepts of the Classical Management Theory
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1. Hierarchical Structure – Top, Middle, Lower

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2. Specialization - Workers understand their roles and

typically specialize in a single area. This helps
increase productivity and efficiency while eliminating
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3. Incentives - The classical theory believes that

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employees are motivated by financial rewards. It
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proposes that employees will work harder and be
more productive if they are awarded incentives based
on their work. 
 3 Main Concepts of the Classical Management Theory
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Contributors – F W Taylor, Louis Brandeis, James Dodge,

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and Henry Towne, Frank Gilbreth (motion study)

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 Neo – Classical Management Era
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This theory is the extended version of classical theory,

where behavioural science gets involved in the
management. As per this theory, an organisation is a

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social system, and an organisation’s performance purely
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depends on the workers and gets affected by human
causes. The neoclassical theory affirms that a person is
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requirements.
 Neo – Classical Management Era
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Rather than focus on production, structures, or

technology, the neoclassical theory was concerned with
the employee. Neoclassical theorists concentrated on

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answering questions related to the best way to motivate,
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structure, and support employees within the
organization.
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 Neo – Classical Management Era
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Neo-Classical theory gave greater emphasis to man

behind the machine and stressed the importance of
individual as well as group relationship in the plant or

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workplace.
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 Neo – Classical Management Era
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The Inception of Neoclassical Theory 

The neoclassical theory is the extensive version of the
classical theory that includes behavioural science in business
management. In this theory, the organization is the social
system, and its performance is affected by human efforts.
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The classical theory emphasized the mechanical and

physiological variables and deemed them the primary factor
in inferring its efficiency. However, when the efficiency was
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did not evoke a positive response in work behaviour. 
 Neo – Classical Management Era
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Hence, the researchers tried to specify the reasons for

human behaviour at a job. This finally led to the
arrangement of neoclassical theory. This primarily

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focuses on human behaviour in the organisation. This
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approach is often referred to as human relations or
behavioural theory of organisation. 
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 Neo – Classical Management Era
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The neoclassical theory states that an organisation is a mix of both

informal and formal aspects of the organisation. This aspect was
ignored in the classical theory. The organisation’s informal
structure is majorly formed due to the social interaction with
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workers; this affects and gets affected by an organisation’s formal
structure. Generally, the disputes between the organization and
workers exist but need to be simplified when these problems
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persist. 
 Modern Management Era
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Modern Management Theory was created in direct response to the

Classical Management Theory that states employees are only
motivated by money. The Modern Management Theory recognizes
that workers are complex and have many reasons for wanting to
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Also believes that rapidly changing technology can both cause and
solve many problems in the workplace. 
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 Modern Management Era (1960-present)
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Modern Management Theory was created in direct response to the

Classical Management Theory that states employees are only
motivated by money. The Modern Management Theory recognizes
that workers are complex and have many reasons for wanting to
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Also believes that rapidly changing technology can both cause and
solve many problems in the workplace. 
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 Modern Management Era
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This theory combines mathematical analysis with an

understanding of human emotions and motivation in
order to create a working environment that is maximally
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Modern Management Theory is actually comprised of

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three other management theories — Quantitative Theory,
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Systems Theory, and Contingency Theory.
 Modern Management Era
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(I) Quantitative or Mathematical Approach or

Management Science Approach:
Mathematics has made inroads into all disciplines. It has
been universally recognized as an important tool of
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analysis
the Mathematical School gives a quantitative basis for
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decision-making and considers management as a system
of mathematical models and processes.
 Modern Management Era
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(I) Quantitative or Mathematical Approach or

Management Science Approach:
Different mathematical and quantitative techniques or
tools, such as linear programming, simulation and
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queuing, are being increasingly used in almost all the
areas of management for studying a wide range of
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problems.
 Modern Management Era
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(I) Quantitative or Mathematical Approach or

Management Science Approach:
Different mathematical and quantitative techniques or
tools, such as linear programming, simulation and
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queuing, are being increasingly used in almost all the
areas of management for studying a wide range of
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problems.
 Modern Management Era
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(I) Quantitative or Mathematical Approach or

Management Science Approach:
This approach suffers from the following drawbacks:
(i) This approach does not give any weight age to human
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element which plays a dominant role in all organisations.
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(ii) In actual life executives have to take decisions quickly
without waiting for full information to develop models.
(iii) The various mathematical tools help in decision
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making. But decision­making is one part of managerial
activities. Management has many other functions than
decision-making.
 Modern Management Era
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(iv) This approach supposes that all variables to decision-

making are measurable and inter-dependent. This
assumption is not realistic.
(v) Sometimes, the information available in the business
for developing mathematical models are not upto date
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Harold Knootz. Also observes that “it is too hard to see
mathematics as a separate approach to management
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theory. Mathematics is a tool rather than a school.”
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 Modern Management Era
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(Autonomous) (ii) Systems Approach:

This theory treats companies like a living organism, with all

parts necessary for the company to survive. Developed by
Ludwig von , this theory states that all parts of a company, from

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the company to survive. Companies using this theory think that
departments and employees must work as a collective group
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between departments are key with this theory. 
 Modern Management Era
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(Autonomous) (ii) Systems Approach:
This theory treats companies like a living organism, with all
The basic features of systems approach are as under:
(i) A system consists of interacting elements. It is set of inter
related and inter­dependent parts arranged in a manner that
produces a unified whole.
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relationships rather, than in isolation from each other.
(iii) An organisational system has a boundary that determines
which parts are internal and which are external.
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information, material and energy from other systems as inputs.
These inputs undergo a transformation process within the
system and leave the system as output to other systems.
 Modern Management Era
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(v) An organization is a dynamic system as it is

responsive to its environment. It is vulnerable to change
in its environment.

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 Modern Management Era
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(iii) Contingency or Situational Approach:
The contingency approach is the latest approach to the
existing management approaches. During the 1970’s,
contingency theory was developed by J.W. Lorsch and
P.R. Lawrence.
Management problems are different under different
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the situation. Thus behaviour within an organization is
contingent on environment, and if a manager wants to
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change the behaviour of any part of the organization, he
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Hammer tell that organization system is not a matter of
managerial choice, but contingent upon its external
environment.
 Modern Management Era
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Contingency approach is an improvement over the

systems approach. The interactions between the sub-
systems of an organization have long been recognized by
the systems approach. Contingency approach also
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the interaction of the sub systems and the environment.

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Besides, it seeks to identify exact nature of inter-actions
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and inter-relationships.
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Management as an Art..
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“Art is a systematic body of knowledge that

requires creativity and skill. An artist also needs

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certain level of perfection considered

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 Management as an Art
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 Practical Knowledge

 Personal Skill

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 Creativity
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 Perfection through Practice

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Is Management a Profession?

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What is a Profession?
A profession is an occupation that demands specialized knowledge of
a subject matter alongside intense academic background. Moreover,
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competent authorities regulate the entry in a particular occupation,
and they look for experience, ethics, and formal training. According
to experts, a profession includes the following fundamentals.
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 Fundamentals of Profession
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1. Specialized Knowledge :
Management consists of well defined and systematic knowledge, that
is imparted to people aiming to be a manager. This knowledge

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developed over time and is ever changing and increasing. Further,
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these concepts and principles are applied to general business
situations. This knowledge is taught at various institutes, colleges
and can also be acquired through books and journals. For example,
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the IIM is an institute aimed at teaching this management
knowledge.
 Fundamentals of Profession
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2. Dedicated Training and Education

The knowledge is not enough to succeed in any profession; one needs
to know its technical nits and grits. In this regard, training, particular
to a job, comes in handy. Also, one cannot become an expert without
a dedicated course of education. Thus, going through them is vital.
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There are number of institutes and universities to impart education
& training for a profession. No one can practice a profession without
going through a prescribed course. Many institutes of management
have been set up for imparting education and training.
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 Fundamentals of Profession
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3. Code of Conduct
There is a code of conduct, commonly known as work ethics, in every
profession, and members associated with it must abide by it.
Typically, this code varies from one company to another. This code of
conduct includes the rules and regulations of a firm.
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4. Social Obligations - Profession is a source of livelihood but
professionals are primarily motivated by the desire to serve the
society. Their actions are influenced by social norms and values.
Similarly a manager is responsible not only to its owners but also to
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the society and therefore he is expected to provide quality goods at
reasonable prices to the society.
 Fundamentals of Profession
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3. Code of Conduct
There is a code of conduct, commonly known as work ethics, in every
profession, and members associated with it must abide by it.
Typically, this code varies from one company to another. This code of
conduct includes the rules and regulations of a firm.
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4. Social Obligations - Profession is a source of livelihood but
professionals are primarily motivated by the desire to serve the
society. Their actions are influenced by social norms and values.
Similarly a manager is responsible not only to its owners but also to
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the society and therefore he is expected to provide quality goods at
reasonable prices to the society.
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Can Management Be Strictly Categorized As A

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Profession?
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Presidency College
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Can Management Be Strictly Categorized As A

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Profession?
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Management is not a profession; by all means, it satisfies certain fundamentals of it. The old saying
of ‘managers are born, and not made’ holds no value in modern times. In the contemporary world,
individuals can get themselves trained via a dedicated course of study to become a manager.

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Management as a Science

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It is considered as a science because it has an organized

body of knowledge which contains certain universal
truth. ... Science provides the knowledge & art deals with
the application of knowledge and skills.

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Universally accepted principles - Scientific principles represents basic

truth about a particular field of enquiry. These principles may be applied in
all situations, at all time & at all places. E.g. - law of gravitation which can be
applied in all countries irrespective of the time. Management also contains

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Principle of Unity of Command i.e. one man, one boss. This principle is
applicable to all type of organization - business or non business.

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Principles based on Experimentation

Scientific conclusions are not a result of hearsay or raw observations. Rather

the results are based on careful observation which is proved by experiments
performed under controlled conditions.

While we do see management as a science, it is not an exact science. Since

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management deals with humans and their unpredictable behavior it cannot
be an exact science.

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Cause & Effect Relationship

Principles of science lay down cause and effect relationship between various
variables. E.g. when metals are heated, they are expanded. The cause is
heating & result is expansion. The same is true for management, therefore it
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between authority & responsibility will lead to ineffectiveness. If you know
the cause i.e. lack of balance, the effect can be ascertained easily i.e. in
effectiveness. Similarly if workers are given bonuses, fair wages, etc. they
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productivity of organization.
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Henry Fayol’s
Principles of Management
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 14 Principles
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1. Division of Work

Dividing the full work of the organization among

individuals and creating departments is called the
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division of work.
Division of work leads to specialization, and
specialization helps to increase efficiency which results in
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improvements in the productivity and profitability of the
organization.
 14 Principles
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2. Balancing Authority and Responsibility
Authority must be equal to Responsibility.
According to Henri Fayol, there should be a balance
between Authority (Power) and Responsibility
(Duties).
This principle states that a manager needs to have the
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instructions are carried out by the employees.
If managers did not have any authority, then they would
lack the ability to get any work done. The right to give
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responsibility.
 14 Principles
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2. Balancing Authority and Responsibility

If the authority is more than responsibility then chances
are that a manager may misuse it. If responsibility is
more than authority then he may feel frustrated.

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 14 Principles

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3. Discipline
Without discipline, nothing can be accomplished. It is the
core value for any project or any management. Good
performance and sensible interrelation make the
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good behaviour also helps them smoothly build and

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progress in their professional careers.
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 14 Principles

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3. Discipline
This principle states that discipline is required for any
organization to run effectively. In order to have
disciplined employees, managers need to build a culture
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rules, philosophies, and structures in place that should be

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met by everyone. Bending rules or slacking should not be
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allowed in any organization. In order to achieve this,
there is a need for good supervision and impartial
judgment.
 14 Principles

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4. Unity of Command
This principle states that that should be a clear chain of
command in the organization. The employees should be
clear on whose instructions to follow. According to Fayol,
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manager. If an employee works under two or more

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managers, then authority, discipline, and stability are
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threatened. Moreover, this will cause a breakdown in
management structure and cause employees to burn out.
 14 Principles

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4. Unity of Command
This means an employee should have only one boss and
follow his command. If an employee has to follow more
than one boss, there begins a conflict of interest and can
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 14 Principles

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(Autonomous) 5. Unity of Direction
This principle states that the work to be done should be
organized in such a way that employees work in harmony
towards the same objective, using one plan, under the
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 14 Principles

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(Autonomous) 5. Unity of Direction
For example, if you have a range of marketing activities
such as advertising, budgeting, sales promotion, etc.,
there should be one manager using one plan for all the
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broken down for different sub-managers, but they should

all work towards a common goal under the direction of
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 14 Principles

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(Autonomous) 6. Subordination of Individual Interests to General
Interest
Where any individual's interest that conflicts with an
organizational interest must be subordinated to the
interests of the organization. The organization must find
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ways to reconcile the tension between individual and
organizational.
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 14 Principles

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(Autonomous) 6. Subordination of Individual Interests to General
Interest
It states that the overall interest of the team should take
precedence over personal ones. The interest of the
organization should not be sabotaged by the interest of
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an individual. If anyone goes rogue, the organization will
collapse. 
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Group Be subordinate to the purposes of an organization.
 14 Principles

Presidency College
(Autonomous) 7. Remuneration
This principle states that employees should be paid fair
wages for the work that they carry out. Any organization
that underpays its workers will struggle to motivate and
Reaccredited by keep quality workers. This remuneration should include
NAAC with A+

both financial and non-financial incentives. Also, there

should be a structure in place to reward good
Presidency
Group performance to motivate employees.
 14 Principles

Presidency College
(Autonomous) 7. Remuneration
The rate of remuneration paid should be based on
general business conditions , cost of living, productivity of
the concerned employee and the capacity of the firm.
Reaccredited by
NAAC with A+

Presidency
Group
 14 Principles

Presidency College
(Autonomous) 8. Centralization

Centralization refers to the concentration of power in the

hands of the authority and following a top-bottom

Reaccredited by
approach to management.
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In decentralization, this authority is distributed to all

levels of management. In a modern context, no
Presidency
Group organization can be completely centralized or
decentralized.
 14 Principles

Presidency College
(Autonomous) 8. Centralization
Complete centralization means that people at the bottom
have no authority over their responsibilities. Similarly,
complete decentralization means that there will be no
Reaccredited by superior authority to control the organization. To use
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this effectively today, there should be a balance of

centralization and decentralization. The degree to
Presidency
Group which this balance is achieved will differ from
organization to organization.
 14 Principles

Presidency College
(Autonomous) 9. Scalar Chain
Communication is a crucial aspect of any organisation
and the principle of scalar chain revolves around the flow
of communication from management to the lowest rank
Reaccredited by in the company. Scalar chain is a chain of all supervisors
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from the top management to the person working in the

lowest rank.
Presidency
Group
 14 Principles

Presidency College
(Autonomous) 9. Scalar Chain
A scalar chain refers to a clear chain of
communication between employees and their
superiors. Employees should know where they stand
Reaccredited by in the hierarchy of the organization and who to go to
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in a chain of command. To implement this in the

workplace, Fayol suggests that there should be an
Presidency
Group organizational chart drawn out for employees to see
this structure clearly.
 14 Principles

Presidency College
(Autonomous) 9. Scalar Chain
This principle states that there is a proper chain of
authority and responsibility which moves in a straight
line from the superior most authority down to the lowest
Reaccredited by subordinate. Under this chain or line of authority, each
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communication moves from top to lower level and vice

versa.
Presidency
Group
 14 Principles

Presidency College
(Autonomous) 9. Scalar Chain

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Presidency
Group
 14 Principles

Presidency College
(Autonomous) 9. Scalar Chain
For example, if there are A,B,C,D,E five people and the
message is to be communicated from A to E, then first it
will move from A to B, then from B to C, then C to D and
Reaccredited by finally from D to E. One important consideration here is
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that no step has to be overlooked or skipped. Fayol has

explained this principle with the help of the double
Presidency
Group chain. 
 14 Principles

Presidency College
(Autonomous) 9. Scalar Chain
For example, in a company the employee 'E' wants to have
contact with the employee 'O', then 'E' shall have to take
to reach 'A' through the medium of D,C,B and then having
Reaccredited by contact with L,M,N shall reach 'O'.
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Another aspect of this principle is that in case there is

some urgency and some message has to be
Presidency
Group communicated urgently, then this process can be
shortened. 
 14 Principles

Presidency College
(Autonomous) 9. Scalar Chain
For example if 'D' wants to communicate with 'N', he can
do that keeping in view the importance of the message or
conversation and to eliminate unnecessary delays. . But
Reaccredited by for this 'D' and 'N' will have to seek prior permission of
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their imediate superiors i.e 'C' and 'M'. Such type of

contact is known as Gang Plank. 
Presidency
Group
 14 Principles

Presidency College
(Autonomous) 10. Order
‘A place for everything and everything in its place’
the right man in the right place. There should be an Order
for material/things and people in the organization.
Order for things is called Material Order and order for
people is called ‘Social Order’. Material Order refers to “a
Reaccredited by
NAAC with A+ place for everything and everything in its place.”
Social Order refers to the selection of the “right man in
the right place”.
Presidency
-Misplacement will lead to misuse and disorder.
Group
 14 Principles

Presidency College
(Autonomous) 11. Equity
While dealing with the employees a manager should use
kindliness and justice towards employees equally. Equity
is a combination of kindness and justice.
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It creates loyalty and devotion in the employees toward
the organization. The equity principle suggests that the
managers must be kind as well as equally fair to the
Presidency
Group
subordinates.
 14 Principles

Presidency College
(Autonomous) 12. Stability of Tenure of Personnel
Although it could take a lot of time, Employees need to be
given fair enough time to settle into their jobs. An
employee needs time to learn his job and to become
Reaccredited by efficient.
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The employees should have job security because

instability leads to inefficiency. Successful firms usually
Presidency
Group
had a stable group of employees
 14 Principles

Presidency College
(Autonomous)
13. Initiative
Management should encourage initiative.

That is, they should encourage the employees to make

their own plans and to execute these plans. This is
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because an initiative gives satisfaction to the employees
and brings success to the organization.

Presidency It allows the subordinates to think out a plan and do what

Group

it takes to make it happen.

 14 Principles

Presidency College
(Autonomous)
14. Esprit De Corps
Esprit de Corps means “Team Spirit”. Therefore, the
management should create unity, co-operation, and team-
spirit among the employees.
They should avoid dividing and rule policy. 
Reaccredited by a sense of unity and of common interests and
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responsibilities, as developed among a group of persons
closely associated in a task, cause, enterprise, etc.
The term is French, and it literally means "the spirit of the
Presidency
Group
body," with body in this case meaning "group.

.
 14 Principles

Presidency College
(Autonomous)
14. Esprit De Corps

These 14 management principles of Henri Fayol are

universally accepted. They work as a guideline for
Reaccredited by
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managers to do their job according to their responsibility.

Presidency
Group
PRESIDENCY COLLEGE
Presidency College
(Autonomous)
(Autonomous)

Reaccredited by Nature and Characteristics of Management

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Presidency
Group
Presidency College
(Autonomous)

• Universal: 

Every organization irrespective of their financial position requires

management to manage their activities, thus it is universal in nature.
All types of organizations, e.g., family, club, university, government,
Reaccredited by army, cricket team, or business, require management. Thus,
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management is a pervasive activity.

• Goal Oriented: 
Presidency
Group
Management helps the organization achieve goals systematically and
without any fuss. 
Presidency College
(Autonomous)

• Management is an Integrative Force:

The essence of management lies in the coordination of individual

efforts into a team. Also, Management reconciles the individual goals
with organizational goals. Also, It integrates human and other
Reaccredited by resources.
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Presidency
Group
Presidency College
(Autonomous)

• Management is a Social Process:

Management is done by people, through people, and for people. It is a

social process because it is concerned with interpersonal relations.
The human factor is the most important element in management. 
Reaccredited by A good manager is a leader, not a boss.
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• Continuous Process: 

Management is a dynamic and on-going process. The cycle of

Presidency
Group
management continues to operate so long as there is an organized
activity for the achievement of group goals.
Presidency College
(Autonomous)

• Intangible Force: 

Management cannot be touched or seen, its effect can only be

experienced and the benefit can only be enjoyed.
• Dynamic Function: 
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Business environments have different factors like social, political,
legal, technological and economical, with these factors in force an
organization is open to changes frequently, with management in their
Presidency system they can apprehend the changes and work towards
Group

responding to it.
PRESIDENCY COLLEGE
Presidency College
(Autonomous)
(Autonomous)

Functions of Management
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Presidency
Group
Presidency College
(Autonomous)

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Presidency
Group
Presidency College
(Autonomous)
1. Planning

According to KOONTZ, “Planning is deciding in advance - what to do, when

to do & how to do. It bridges the gap from where we are & where we want
to be”. A plan is a future course of actions. It is an exercise in problem
solving & decision making. Planning is determination of courses of action
Reaccredited by
NAAC with A+
to achieve desired goals. Thus, planning is a systematic thinking about
ways & means for accomplishment of pre-determined goals. Planning is
necessary to ensure proper utilization of human & non-human resources.
Presidency
Group It is all pervasive, it is an intellectual activity and it also helps in avoiding
confusion, uncertainties, risks, wastages etc.
Presidency College
(Autonomous)
2. 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-
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human resources to the organizational structure. Organizing as a
process involves:
• Identification of activities.
• Classification of grouping of activities.
Presidency • Assignment of duties.
Group
• Delegation of authority and creation of responsibility.
• Coordinating authority and responsibility relationships.
Presidency College
(Autonomous)

3. Staffing
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. Staffing involves:
• Manpower Planning (estimating man power in terms of
Reaccredited by
NAAC with A+ searching, choose the person and giving the right place).
• Recruitment, Selection & Placement.
• Training & Development.
• Remuneration.
Presidency
Group • Performance Appraisal.
• Promotions & Transfer.
Presidency College
(Autonomous)

4. Directing
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
Reaccredited by
NAAC with A+ following elements:
• Supervision

• Motivation
Presidency
Group • Leadership

• Communication
Presidency College
(Autonomous)

4. Directing
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
Reaccredited by
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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.
Presidency
Group
Communications- is the process of passing information, experience,
opinion etc from one person to another. It is a bridge of understanding.
Presidency College
(Autonomous)

5. Controlling

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
Reaccredited by
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being made towards the objectives and goals and acting if necessary, to
correct any deviation”.

Presidency
Group
Presidency College
(Autonomous)

5. Controlling

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:
Reaccredited by
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Establishment of standard performance.

Measurement of actual performance.

Comparison of actual performance with the standards and finding out

Presidency
Group
deviation if any.

Corrective action.
 POSDCORB
Presidency College
(Autonomous)

1. Planning
2. Organizing
3. Staffing
4. Directing
5. Co-ordinating
Reaccredited by
NAAC with A+ 6. Reporting
7. Budgeting

Presidency
Group
 POSDCORB
Presidency College
(Autonomous)

1. Planning
2. Organizing
3. Staffing
4. Directing
5. Co-ordinating: refers to orchestrating and interlinking
Reaccredited by the various components of the work.
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6. Reporting : Reporting involves regularly updating the
superior about the progress or the work related activities.
The information dissemination can be through records or
Presidency inspection.
Group
7. Budgeting : Budgeting involves all the activities that
under Auditing, Accounting, Fiscal Planning and Control.
PRESIDENCY COLLEGE
Presidency College
(Autonomous)
(Autonomous)
Management and Administration

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Presidency
Group
Presidency College
(Autonomous)

The administration is a systematic process of administering the management

of a business organization, an educational institution like school or college,
government office or any nonprofit organization. The main function of
administration is the formation of plans, policies, and procedures, setting up
of goals and objectives, enforcing rules and regulations, etc.
Reaccredited by
NAAC with A+ Management takes into account the directing and controlling functions of the
organization, whereas administration is related to planning and organizing
function.
Presidency
Group
Presidency College
(Autonomous)

Reaccredited by
NAAC with A+

Presidency
Group
Presidency College
(Autonomous)

Reaccredited by
NAAC with A+

Presidency
Group
Presidency College
(Autonomous)

Reaccredited by
NAAC with A+

Presidency
Group
PRESIDENCY COLLEGE
Presidency College
(Autonomous)
(Autonomous)

Scope and functional areas of

Management
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Presidency
Group
Presidency College
(Autonomous)

Subject matter of the management :

Planning, organizing, staffing, directing,
controlling, communicating, motivating, etc.

Reaccredited by
NAAC with A+

Presidency
Group
 Functional Areas of Management
Presidency College
(Autonomous)

Production Management
Production planning and Control, Material management,
inventory and warehouse control

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NAAC with A+

Presidency
Group
 Functional Areas of Management
Presidency College
(Autonomous)

Reaccredited by
NAAC with A+

Presidency
Group
 Functional Areas of Management
Presidency College
(Autonomous)

Reaccredited by
NAAC with A+

Presidency
Group
 Functional Areas of Management
Presidency College
(Autonomous)

Reaccredited by
NAAC with A+

Presidency
Group
 Functional Areas of Management
Presidency College
(Autonomous)

Reaccredited by
NAAC with A+

Presidency
Group
 Functional Areas of Management
Presidency College
(Autonomous)

Reaccredited by
NAAC with A+

Presidency
Group
 Functional Areas of Management
Presidency College
(Autonomous)

Reaccredited by
NAAC with A+

Presidency
Group
PRESIDENCY COLLEGE
Presidency College
(Autonomous)
(Autonomous)

Reaccredited by
NAAC with A+
Levels of Management

Presidency
Group
 Levels of Management
Presidency College
(Autonomous)

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Presidency
Group
 Levels of Management
Presidency College
(Autonomous)

Top-level managers
• The board of directors, president, vice-president, and CEO are all
examples of top-level managers.
• These managers are responsible for controlling and overseeing
the entire organization. They develop goals, strategic plans,
company policies, and make decisions on the direction of the
Reaccredited by
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• In addition, top-level managers play a significant role in the
mobilization of outside resources.
• Top-level managers are accountable to the shareholders and
Presidency general public.
Group
 Levels of Management
Presidency College
(Autonomous)

Middle-level managers
• General managers, branch managers, and department managers
are all examples of middle-level managers. They are accountable
to the top management for their department’s function.
• Middle-level managers devote more time to organizational and
directional functions than top-level managers. Their roles can be
Reaccredited by
NAAC with A+ emphasized as:
• Executing organizational plans in conformance with the
company’s policies and the objectives of the top management;
• Defining and discussing information and policies from top
Presidency management to lower management; and most importantly
Group
• Inspiring and providing guidance to low-level managers towards
better performance.
 Levels of Management
Presidency College
(Autonomous)

Middle-level managers
Some of their functions are as follows:
• Designing and implementing effective group and intergroup work
and information systems;
Reaccredited by • Defining and monitoring group-level performance indicators;
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• Diagnosing and resolving problems within and among work

groups;
Presidency • Designing and implementing reward systems supporting
Group

cooperative behavior.
 Levels of Management
Presidency College
(Autonomous)

Low-level managers
• Supervisors, section leads, and foremen are examples of low-level
management titles. These managers focus on controlling and
directing.
Low-level managers usually have the responsibility of:
• Assigning employees tasks;
Reaccredited by
NAAC with A+ • Guiding and supervising employees on day-to-day activities;
• Ensuring the quality and quantity of production;
• Making recommendations and suggestions; and
• Up-channeling employee problems.
Presidency
Group
PRESIDENCY COLLEGE
Presidency College
(Autonomous)
(Autonomous)

Elements of managerial processes

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Presidency
Group
 Elements of managerial processes
or FUNCTIONS
Presidency College
(Autonomous)

1. Planning
2. Organizing

3. Staffing
4. Directing
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5. Coordinating
6. Controlling

Presidency
Group
 Elements of managerial processes
or FUNCTIONS
Presidency College
(Autonomous)

1. Planning
Planning is the process of looking forward. The most common
objective of planning is to achieve better results. It involves
developing policies, programmes, strategies, budget, procedure
Reaccredited by
NAAC with A+ and making decision, etc. It is a continuous process that locates at all
levels of management.

Presidency
Group
 Elements of managerial processes
or FUNCTIONS
Presidency College
(Autonomous)

2. Organizing

Organizing is the management function associated with effective

utilization of the resources like men, machines, materials and money
for achieving the objectives of the organization. The purpose of
Reaccredited by organizing is to guide, direct, arrange, coordinate and control the
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activities related to production.
Steps of Organizing:
1. Identifying the work to be performed.
Presidency
2. Classifying the work.
Group 3. Assigning the groups or the individuals to work.
4. Delegating authority and fixing responsibilities.
 Elements of managerial processes
or FUNCTIONS
Presidency College
(Autonomous)

3. Staffing

Staffing is the process of recruiting employees who are eligible for certain
positions in a company. Steps involved in the staffing process are 1.
Manpower Planning, 2. Recruitment, 3. Selection, 4. Placement, 5.
Reaccredited by Training, 6. Development, 7. Promotion, 8. Transfer, 9. Appraisal, 10.
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Determination of Remuneration. 

Presidency
Group
 Elements of managerial processes
or FUNCTIONS
Presidency College
(Autonomous)

4. Directing

Directing is a process in which managers guide, instruct and oversee the

performance of the employees to achieve predetermined goals. It is said to
be the heart of the management process. If directing process does not take
Reaccredited by place then functions like planning, organizing and staffing have got no
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importance.

Activities involved in the direction Process: Leadership,

Communication, Motivation, Supervision
Presidency
Group
 Elements of managerial processes
or FUNCTIONS
Presidency College
(Autonomous)

5. Coordinating
in every organization, various departments perform different types of work
to reach the organizational goals. In this case, it is important that the
activities of different departments and workgroups of the organization are
harmonized. This function is called the coordinating function. It ensures the
unity of action among workgroups, individuals and departments.
Reaccredited by
This function prevents conflict and overlapping so that the unity of the
NAAC with A+ action remains unchanged. Achievement of goals in some departments may
run counter to that of the other departments without proper
harmonization. It consists of interrelating the various parts of the work as
well as the work of different departments.
Presidency
Group
 Elements of managerial processes
or FUNCTIONS
Presidency College
(Autonomous)

4. Directing
Directing is a process in which managers guide, instruct and oversee the
performance of the employees to achieve predetermined goals. It is said to be
the heart of the management process. If directing process does not take place

Reaccredited by
then functions like planning, organizing and staffing have got no importance.
NAAC with A+
This function prevents conflict and overlapping so that the unity of the action
remains unchanged. Achievement of goals in some departments may run
counter to that of the other departments without proper harmonization. It
Presidency
Group consists of interrelating the various parts of the work as well as the work of
different departments.
 Elements of managerial processes
or FUNCTIONS
Presidency College
(Autonomous)

5. Controlling
Controlling is a primary objective-oriented function of management. It is
basically the comparison between actual performance and the standards
of the company to ensure that the taken action was correct.
Steps of Controlling
• Establishing the standards of performance.
Reaccredited by • Finalized the plans based on corporate plan, objective, mission and vision
NAAC with A+ of the organization.
• To intimate the ultimate plans to the heads of all the departments.
• To monitor the actual performance.
• To create a regular report as per the performance.
Presidency
Group
PRESIDENCY COLLEGE
Presidency College
(Autonomous)
(Autonomous)

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NAAC with A+
Roles of Managers in Organizations

Presidency
Group
 Roles of Managers
Presidency College
(Autonomous) • Leadership and Interpersonal Roles
interpersonal skills, such as motivating employees, negotiating salaries, and
encouraging innovation and creativity.
• Informational Roles
Informational roles involve the receiving and sending of information
• Decision Making Roles
According to Mintzberg, there are four primary types of management
decision roles. These include the following:
Reaccredited by
NAAC with A+ Entrepreneur. The entrepreneurs in a firm are usually top-level managers.
They identify economic opportunities, lead the initiative for change, and
make product decisions.
Disturbance handler. Top and middle managers will react to disturbances
(unexpected events) in the organization—whether internal or external. They
Presidency
Group will decide what corrective actions should be taken to resolve the problems.
 Roles of Managers
Presidency College
(Autonomous)
Resource allocator. All levels of management will make resource allocation
decisions, depending upon whether the decision affects the entire
organization, a single department, or a particular task or activity.

Negotiator. Depending on the effect on the organization, most negotiation is

done by top and middle-level managers. Top managers will handle

Reaccredited by negotiations that affect the entire organization, such as union contracts or
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trade agreements. Middle-level managers negotiate most salary and hiring
decisions.

Presidency
Group
PRESIDENCY COLLEGE
Presidency College
(Autonomous)
(Autonomous)

Styles of Managers in Organizations

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Presidency
Group
 Styles of Managers in Organizations
Presidency College
(Autonomous)

1. Autocratic Style of Working

In such a style of working, the superiors do not take into consideration
the ideas and suggestions of the subordinates.
The managers, leaders and superiors have the sole responsibility of
taking decisions without bothering much about the subordinates.
The employees are totally dependent on their bosses and do not have the
Reaccredited by liberty to take decisions on their own.
NAAC with A+
The subordinates in such a style of working simply adhere to the
guidelines and policies formulated by their bosses. They do not have a
say in management’s decisions.
Whatever the superiors feel is right for the organization eventually
Presidency becomes the company’s policies.
Group
Employees lack motivation in autocratic style of working.
 Styles of Managers in Organizations
Presidency College
(Autonomous)

2. Paternalistic Style of Working

In paternalistic style of working, the leaders decide what is best for the
employees as well as the organization.
Policies are devised to benefit the employees and the organization.
The suggestions and feedback of the subordinates are taken into
consideration before deciding something.
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In such a style of working, employees feel attached and loyal towards
their organization.
Employees stay motivated and enjoy their work rather than treating it as
a burden.

Presidency
Group
 Styles of Managers in Organizations
Presidency College
(Autonomous)

3. Democratic Style of Working

In such a style of working, superiors welcome the feedback of the
subordinates.
Employees are invited on an open forum to discuss the pros and cons of
plans and ideas.
Democratic style of working ensures effective and healthy
Reaccredited by communication between the management and the employees.
NAAC with A+
The superiors listen to what the employees have to say before finalizing
on something.

Presidency
Group
 Styles of Managers in Organizations
Presidency College
(Autonomous)

4. Laissez-Faire Style of Working

In such a style of working, managers are employed just for the sake of
it and do not contribute much to the organization.
The employees take decisions and manage work on their own.
Individuals who have the dream of making it big in the organization and
desire to do something innovative every time outshine others who attend
Reaccredited by office for fun.
NAAC with A+
Employees are not dependent on the managers and know what is right
or wrong for them.

Presidency
Group
 Styles of Managers in Organizations
Presidency College
(Autonomous)

5. Management by Walking Around Style of Working

In the above style of working, managers treat themselves as an essential
part of the team and are efficient listeners.
The superiors interact with the employees more often to find out
their concerns and suggestions.
In such a style of working, the leader is more of a mentor to its
Reaccredited by employees and guides them whenever needed.
NAAC with A+
The managers don’t lock themselves in cabins; instead walk around to
find out what is happening around them.

Presidency
Group
PRESIDENCY COLLEGE
Presidency College
(Autonomous)
(Autonomous)

End of Unit I

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Presidency
Group