GENERAL
MANAGEMENT
Prof. Anupama A Athawale
Contents
• Principles of management,
• Nature of management
• Theory of management
• Functions of management
Principles of management
Introduction
14 principles of Management are statements that
are based on a fundamental truth. These principles of
management serve as a guideline for decision-making
and management actions. They are drawn up by means
of observations and analyses of events that managers
encounter in practice. Henri Fayol was able to
synthesize 14 principles of management after years of
study.
14 Principles of management are as follows:
• Division of Work
• Divide the work as per the skills of the employee.
• According to Henri Fayol specialization promotes
efficiency of the workforce and increases
productivity.
• Different levels of expertise can be distinguished
within the knowledge areas (from generalist to
specialist)
• Applicable to both technical and managerial
activities.
• Authority and Responsibility
• According to Henri Fayol, the accompanying power
or authority gives the management the right to give
orders to the subordinates.
• In order to get things done in an organization,
management has the authority to give orders to the
employees.
• 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.
• Discipline
• This management principle is essential and makes
the organization run smoothly
• Unity of Command
• This 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.
• Unity of Direction
• 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.
• Subordination of Individual Interest
• 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.
• Remuneration
• Motivation and productivity are close to one another
as far as the smooth running of an organization is
concerned
• 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.
• Degree of Centralization
• Management and authority for decision-making
process must be properly balanced in an
organization.
• 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.
• Line of Authority/Scalar Chain
• “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).
• A type of management structure
• Each employee can contact a manager or a superior
in an emergency situation without challenging the
hierarchy
• Order
• 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.
• Stability of Tenure of Personnel
• 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.
• Equity
• 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.
• Initiative
• 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.
• Team Spirit/ Esprit de Corps
• This principle 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.
Nature of Management
• Process: The management process comprises a series
of actions or operations conducted towards an end.
• Important organ of society: Society influences
managerial action and managerial actions influence
society.
• Universal process: Wherever there is human activity,
there is management. Without efficient management,
objectives of the company can not be achieved.
Theory of Management
• Scientific Management Theory
• When the potential of science to improve productivity was
becoming abundantly clear, Frederick Taylor developed the
scientific, or classical, management theory.
• This approach uses data and measurements to make
organizations more effective.
• By observing and evaluating processes in numerical terms,
managers are able to distill information that helps them run
their businesses more efficiently and profitably.
• The process of gathering data led to standardization and a
management strategy based on punishment and reward.
• This approach worked for mechanized operations, but it did
not do justice to the human element, the role that personnel
play in innovation, and the importance of keeping staff
satisfied and engaged so they do good work.
• Bureaucratic Management Theory
• The seminal sociologist Max Weber built on Frederick
Taylor's scientific management theory with his theory of
bureaucratic management, which takes the scientific
principles that Taylor applied to production systems and
applies them to human resources management as well.
• Bureaucratic management theory stresses clearly designated
roles for employees and management based on hierarchies
that streamline authority and make it clear who is in charge
and who is not.
• However, Weber's theory cannot be reduced simply to a
mechanical, systematized approach to managing human
beings.
• He also wrote about the dangers inherent in unchecked
hierarchical bureaucracy and stressed the role of emotion in a
business landscape dominated by technology.
• Human Relations Theories
• Over the course of the 20th century, management
systems became more human-centered, emphasizing
the capacities of individuals to act autonomously and
creatively and gearing management toward bringing
out the potential of the people they employ.
• Human relations management theories emphasize the
importance of aligning the needs of the workers with
the needs of the company and adopting policies
aimed at their mutual benefit.
• Systems Theory
• Systems theory looks for holistic patterns in
scientific and metaphysical contexts, and the
management approach to systems theory aims for
achieving an integrated and balanced whole in
business as well.
• Features include identifying the overall goal of the
organization, working so that its various elements
function cohesively to achieve this goal, and
understanding the cycles regulating a system's inputs
and outcomes.
• This management theory is especially effective for
recognizing and leveraging the particular patterns
that a company's operations follow.
Functions of management
Planning Scheduling Controlling
- To be done before -To be done before - To be done
start of project starting the project during execution
- Provides direction, and after of project
unifying frame completion of operations
work, performance planning - Reviews the
standards. -Mechanical difference
- Helps to reveal process of between schedule
future allocation of & actual
opportunities and resources performance.
threats
THANK YOU!!