Principles of management

Management is a process of planning, organizing, actuating, and controlling to accomplish organizational objectives through the coordinated use of human and material resources.

SCOPE OF MANAGEMENT
The scope of management is very wide. According to Herbison and Myers, it refers to three distinct ideas. They are:a) As an Economic Resource:- The effective use if the five Ms of management, i.e., money, material, manpower, machinery and method depends on the quality of management. In other words, how effectively and economically the five Ms are combined together to produce desired results. b) As a System of Authority:- According to Herbison and Myers, management is the rule-making and rule-enforcing body. It is bound together by a web of relationships between superiors and subordinates, that is, people are bound by the authority relationships. c) As a Class or Elite :- The management class has become very important in modern organization owing to its contribution to business success. As a separate group, the term management refers to the group of individuals occupying managerial positions.

CHARACTERSTICS OF MANAGEMENT
a) b) c) d) e) f) g) h) The important features of management are:Management is Intangible: - It is intangible as its presence can only be felt by the results of its efforts in the form of production, sales, and profits. Management is Goal Oriented: - Management seeks to achieve goals. These goals may be economic or non-economic. Management is Universal: - Management is needed in all types of organization, e.g., University, clubs, business etc. The principles however, need careful application depending on situational demand. Management is Social Process: - According to Newman, it is a social process because it deals with people. Managers have to make the best use of resources for the benefit of society as a whole. Management is a Group Activity : - Management is concerned with getting things done through people. It helps people in realizing individual as well as group goal in a coordinated way. Management is a System of Authority:- Authority is the right to give orders and the power to obtain obedience from subordinates. So, management is the rulemaking and rule-enforcing body in an organization. Management is an Activity:- Management is a distinct activity. It can be studied, knowledge about it obtained and skills in its application can be acquired. Management is Dynamic:- It tries to visualize problems before they turn into emergencies and take suitable steps. According to Drucker, Managers do not wait for future, they make the future.

i) Management is Science and an Art:- Management is a systematized body of knowledge based on certain principles capable of general application. The management principles can be applied by persons working in various capacities. It is an art because it involves the use of know-how and skills like any other art. j) Management is Multidisciplinary:- Management has received rich contributions from various disciplines like psychology, sociology, etc. The insight obtained from these disciplines greatly helps managers in understanding the human mind.

IMPORTANCE OF MANAGEMENT
According to Durcker, management is the dynamic life giving element in every organization. In its absence, an organization is merely a collection of men, machines, money and material. The importance of management is:a) Optimum Use of Resources:- Management ensures optimum utilization of resources by attempting to avoid wastage of all kinds. It helps in putting the resources to the best advantage. b) Effective leadership and Motivation:- In the absence of management, the working of an enterprise will become random and haphazard in nature. Management creates teamwork and motivates employees to work harder and better by providing guidance, counseling and effective leadership. c) Establish Sound Industrial Relations:management minimizes industrial disputes and contributes to sound industrial relations in an undertaking. Industrial peace is an essential requirement for increasing productivity. d) Achievement of Goals:- Objectives can be achieved only when the human and non human resources are combined in a proper way. Managers plan carefully, organize the resources properly, hire competent people, and provide necessary guidance. Thus management is goal oriented.

ADMINISTRATION Vs MANAGEMENT
POINTS DISTINCTION Nature Scope Level Skill needed Represents Usage OF ADMINISTRATION Thinking function (what is to be done and when) Determines broad objectives and policies MANAGEMENT Doing function (who should do it and how) Implements plans and achieve goals through people Top level functions Middle and lower level Conceptual and human Technical and human skills skills Owner who invest capital Paid individuals who work and receive profits for remuneration Mostly in government, Mostly in business military, educational, social, organization and cultural organization

FUNCTIONS OF MANAGEMENT
According to Henry Fayol, in every organization manager perform certain functions to achieve results. These functions are broadly classified under five categories:a) Planning:- Planning is a process of making decision about future. It provides direction to enterprise activities. Its work is to decide in advance what is to be done, when and where it is to be done, how it is to be done and by whom. The main functions of planning are:1. Set up goals; 2. Forecasting; 3. Search for alternatives source of action; 4. Budgeting b) Organizing: - It is concerned with the arrangement of an organizations resources people, material, technology and finances in order to achieve enterprise objective. The main functions of organizing are:1. Job design; 2. Job specification; 3. Authority and responsibility. c) Staffing: - Staffing is the function of employing suitable personas for the enterprise. It may be defined as an activity where people are recruited, selected, trained, developed, motivated and compensated for manning various positions. d) Directing: - According to Dale, direction is telling people what to do and seeing that they do it to the best of their ability. Directing is a function of guiding and supervising the activities of sub ordinates. The four main elements of directing are:1. Leardership: - It is a process of influencing the action of a person or a group to attain desired objectives. The success of an organization depends upon the quality of leadership shown by its managers. 2. Motivation: - It is the process of stimulating people to take desired courses of action. It is to inspire, encourage and impel people to take required action. 3. Communication:- It is a way of reaching other with ideas, facts, thoughts. Effective communication is important in organization because managers Can achieve very little without it. e) Controlling:- It is the management function concerned with monitoring employees activities, keeping the organization on track towards its goals, and making corrections as required. It include four things:1. setting standard of performance; 2. measuring actual performance; 3. comparing actual performance against the standard ; 4. taking corrective actions to ensure goal accomplishment.

ROLES OF MANAGER
Henry Mintzberg, graduate of MIT, in the year 1963 offered a view of the job of managing that throws the light on how managers perform their work.According to him, these roles are grouped under three categories:-

1. Interpersonal Roles:- There are three interpersonal roles which help managers the keep running the organization. a.Figurehead Role:- This is when they perform duties that are ceremonial and symbolic in nature. b. Leadership Role:- This includes hiring, training, motivating and disciplining employees. c.Liaison Roles:- This is when they serve as connection between their organization and others or between their unit and other organizational units. 2. Informational Roles:- Receiving and communicating information is the most important managers job. The three types of informational job of a manger are: a.Monitor:- Receiving and collecting information and utilizing the channels through which information comes is the monitor role of a manager. b. Disseminator:- Transmitting information within the organization, i.e., to the subordinates, is the role of manager which comes under disseminator role. c.Spokesman:- This is a function of a manger when he communicates information outside the organization. 3. Decisional Roles:- There are four types of decisional role of a manger. They are: a.Enterpreneur:- This is when a manager introduce changes to improve the organization for the environmental challenges. b. Distrubance Handler:- This is when he respond to the situations such as strikes, shortage of material, complaints, etc. c.Resource Allocator:- This is when taking decision about where the organization will expand its efforts and what resources will be expanded. d. Negotiator:- This is when a manager negotiates with other units to gain advantages for their own unit. This is like involving the organization with other organization.

MANAGERIAL SKILLS
A manager must possess and continuously develop several essential skills. According to Robert L. Katz, there are three types of skills:1. Technical Skills:- It is the ability to use tools, procedures and techniques of a specialized field. This is most beneficial for the lower level managers, like supervisors, as they are in direct contact with the employees performing work activities within the firm. As a manager moves to the higher level, the importance of technical skills diminishes. 2. Human Skills:- It is the ability to work with, understand and motivate other people. It is important at every level of management because, to get work done through others, a manager is to inspire and influence other organization members. 3. Conceptual Skills:- Also known as ability to analyses and diagnose complex problems. It is the mental ability to coordinate and integrate organizations interests and activities. It refers to the ability to understand how a change in any given part can affect the whole organization. It is most important at the higher level of management because they are involved in long-term decisions

which is charged with responsibility for overall performance and conceptual skill is most important for that.

TOTAL QUALITY MANAGEMENT (TQM)

Quality has become the most important word in the corporate lexicon. The term Quality refers to a sense of appreciation that something is better than something else. According to Edward Deming, TQM is a way of creating an organizational culture, committed to the continuous improvement of skills, teamwork, processes, product and service quality and customer satisfaction. It is built around four basic ideas:1. Do it right the first time:- Manager have been interested in the quality of their product. The emphasis on quality has come through four distinct phases. Each stage of this evolution has broadened the responsibility for quality. The focus has shifted from relatively fixing product defects to proactively working to prevent them and to satisfy customers completely. The four phases are:a.The fix it in approach to quality :- Rework any defective products identified by quality inspectors at the end of the production process. b. The inspect it in approach to quality :- Here, quality inspectors sample work in process and prescribe machine adjustments to avoid substandard outputs. c.The built it in approach to quality :- Make everyone who touches the product, responsible for spotting and correcting defects. Emphasis is on identifying and eliminating causes of quality problems. d. The design it in approach to quality:- Intense customer and employee involvement drives the entire design production cycle. Emphasis is on continuous improvement of personnel, processes and product. 2. Be customer-centered:- Organizations have to meet the expectations of both internal as well as external customers. Internal customers are those who members of the organization who depends on others to get their work done, for eg., a corporate lawyer. As far as external customers, TQM demands all employees who deal directly with outsiders to be customer-centered. Customer-centered means:a.Anticipating the customers need; b. Listening to the customers; c.Learning how to satisfy the customers; d. Responding appropriately to the customers. 3. Making continuous improvement a way of life:- It means improving the overall system by constantly improving the little details. It looks at quality as an endless journey. In order to improve, they experiment, measure, adjust continuously. The four ways to achieve improvement are:a.Improved and more consistent product and service quality. b. Faster cycle times, i.e., from product development to order processing to payroll processing. c.Greater flexibility, i.e., faster response to changing customer demands and new technology. d. Lower costs and less waste, i.e., eliminating needless steps, scrap rework and non-value adding activities.

4. Build teamwork and empowerment:- TQM is built around employees, their needs, aspiration and expectations. Empowerment takes place when employees are properly trained, provided with all relevant information and the best possible tools, fully involved in key decisions and fairly rewarded for results. In order to carry out work effectively and efficiently, teams have to be created, drawing talent from various departments in a cooperative way. TQM TOOLS/TECHNIQUES To implement TQM following techniques are used:1. Benchmarking:- It is a continuous process. It implies measurement of the gap between the practices of two companies so as to uncover significant differences. It can be applied to products, services, practices, processes and methods. Thus, it is a systematic investigation, and learning experience which ensures that the best of industry practices are uncovered, analyzed, adopted and implanted. The steps of benchmarking are:- 1) identifying benchmarking candidates, 2) identifying best competitors, 3) collecting data, 4) finding the gap, 5) projecting the future performance, 6) communicating benchmark findings, 7) establishing functional goals, 8) developing action plans, 9) implanting plans, 10) recalibrating benchmarks attaining leadership position and 11) integrating into process. 2. Quality circles:- It is a small group of employees who meet periodically to identify, analyze and solve quality and other work related problems in their area. The main feature of quality circle are:a.Voluntary Group; b. Manageable size; c.Regular meetings; d. Own agenda; e.Exclusive focus on quality. The important objectives of quality circles are:a.To improve quality of service/product. b. To meet the psychological needs of workers. c.To utilize human talent, skills and knowledge relating to work ares. d. To improve the quality of working life. e.To promote better understanding and thereby create cordial industrial relations. 3. Empowerment:- It is the authority to take decision within ones area of operation without having to get approval from anyone else. The operatives are encouraged to use their initiative to do things the way they like. Thus, empowerment means giving the employees the authority to make decision and providing them with financial resources to implement these decisions. 4. Outsourcing:- The contracting out of a companys in-house function, to a preferred vendor with a high-quality level in a particular task area, is known as outsourcing. By this an organization can save costs on employee benefits and free existing personnel for other duties. 5. Reduced cycle time:- cycle time refers to the steps taken to complete a company process. It involves removal of unnecessary steps in the process and acceleration of activities into the shorter time frame.

QUALITY OF WORKING LIFE (QWL)

QWL is a prescriptive concept which attempts to design work environment so as to maximize concern fir human welfare. According to Lloyd Suttle, Quality of work life is the degree to which members of a work organization are able to satisfy important personnel needs through their experiences in the organization. The four essential elements of QWL are:1. The program seeks to promote human dignity and growth. 2. Employees work collaboratively. 3. They determine work changes participatively. 4. The program assume compatibility of people and organizational goals. ISSUES IN QWL The major factors that affect the quality of work life can be:1. Pay:- It is basically built around the concept of equitable pay. Employees must be paid their due share in progress and prosperity of the firm by giving them the share in profits of the firm. 2. Benefits:- Workers, throughout the globe, have raised their expectation over the years and now feel entitled to benefits that were once considered a part of the bargaining process. Now, they would love benefits of all kinds from the employer. 3. Job security:- Employees want stability of employment. They do not like to be the victim of whimsical personnel policies and stay the mercy of employer. The workplace should offer the security of employment. 4. Alternative work schedule:- Employees demand more freedom at the workplace, especially in scheduling their work. Some alternative work schedules capable of enhancing the quality of work life are:a.Flexi time:- A system of flexible working hours. b. Staggered hours:- Groups of employees begin and end work at different intervals. c.Compressed workweek:- It involves more hours of work per day for fewer days, per week. d. Job enrichment:- It attempts to increase a persons level of output by providing that person with exciting, interesting, stimulating or challenging work. e.Autonomous work groups (AWGs):- Here, a group of workers is given responsibility for a task area without day-to-day supervision and with authority to influence and control both group members and their behavior. 5. Occupational stress:- An individual suffering from an uncomfortable amount of job-related stress cannot enjoy a high quality of work life. To this end, the manager have to look into the working conditions, nature of work, workers ability etc. In other words, to reduce job-related stress, the organization must ensure the best fit between employee capabilities and organizational requirements and thereby ensures continued development of people at all levels. 6. Worker participation:- Employees have a genuine hunger for participation in organizational issues affecting their lives. So, they demand far more participation

in the decision making process at the workplace. Therefore, managers must adopt more participative style of leadership. 7. Social integration:- The work environment should provide opportunities for preserving an employees personal identity and self-esteem through freedom from prejudice, a sense of community, interpersonal openness and absence of satisfaction in the organization. 8. Work and total life space:- A persons work should not overbalance his life. Work schedule, career demands and other job requirements should not take up too much of a persons leisure time and family life.

EVALUTION OF MANAGEMENT THOUGHT

The art of management has ancient roots. Different scholars had given different number of theory to understand the evolution of management. So, to facilitate the understanding three main categories are:-

CLASSICAL THEORY OF MAMANGEMENT

The term classic means something traditionally accepted or long-established. Some of the elements of classical theory which we are still using are:a. Inter-related functions; b. Guiding principles; c. Bureaucratic structure; d. Reward-punishment nexus. There are three branches of classical theory. They are:a. Scientific Management; b. Administrative Theory; c. Bureaucratic Theory.

SCIENTIFIC MANAGEMENT
Scientific management arose, from the need to increase productivity. To expand productivity, ways had to be found to increase the efficiency of workers. Fredrick W. Taylor built the body of principles to overcome this problem. So according to Taylor, there are 4 basic principles for Scientific management:a. Each task must be scientifically designed so that it can replace the old, rule-of thumb methods. b. Workers must be scientifically selected and trained so that they can be more productive on their job. c. Bring scientifically designed jobs and workers together so that there will be a match between them. d. There must be division of labour and cooperation between management and workers Taylor stressed he importance of employee welfare as well as production efficiency. He summed up his approach in these words:a. Science, not rule of thumb; b. Harmony, not discord; c. Cooperation, not individualism; d. Maximum output in place of restricted output;

e. Development of each man to his greatest efficiency and prosperity; f. Equitable division of work and responsibility between management and labour. KEY CONCEPTS OF SCIENTIFIC MANAGEMENT The key concepts of scientific management are:1. Scientific task planning:- Scientific task is the amount of work which an average worker can perform during a day under normal working conditions. The ultimate goal of management is to see that work is done in a logical sequence promoting maximum efficiency. 2. Time and motion studies:- This have been advocated by Taylor with a view to isolate the wasteful and unproductive motions on job. The time study would indicate the minimum time required to do a given job and the motion study is carried out to find out the best sequence of motions to do a job. 3. Standardization:- Under scientific management, certain standards have to be set in advance regarding task, raw material, quality, work method etc. This helps in simplifying the process of production, reducing wasteful use of resources, improving quality of work, etc. 4. Differential piece rate system:- Taylor advocated differential piece rate system based on actual performance of the worker. In this scheme, a worker who completes the normal work gets wages at higher rate than a worker who fails to complete the same with the given time limit. In the long run, this will have a nice effect on health of worker and it helps in dividing the class of working class. 5. Functional foremanship:- Taylor advocated functional foremanship where a factory is divided in different components, each incharge of a specialty. These perform the planning function and provide the expert advice to the workers. The workers are expected to implement the commands of functional specialists. LIMITATIONS OF SCIENTIFIC MANAGEMENT Scientific management was criticized on several grounds:1. Exploitative device:- Scientific management had two objectives: increasing workers productivity and improving workers economic welfare. It only work on first objective as management did not share the benefits of increased productivity with workers. 2. Depersonalized work:- Scientific management supplied standardized jobs to workers which made them to repeat the same job daily creating boredom and monotony. Workers do not like the idea of becoming a glorified machine tool. 3. Unpsychological:- Scientific management was known as unpsychological as there is no accurate information as to how the wages are to be given, how the workers efficiency is to be measured and so on. 4. Undemocratic:- Managers are for planning the operations and workers for implementing the same. So one group always performed challenging tasks and other one is loaded with same standardized job. Scientific management treats workers as unthinkable animals. 5. Anti-social:- It is anti-social because workers are treated as glorified economic tools only. According to Dr. C.S. Myers it is anti-social because it aims at excluding the average workman from the field of work as far as possible.

6. Unoriginal:- Scholars like Hoagland questioned the originality of Taylors ideas and felt that his contribution had been overrated. According to them, Taylors report on Bethlehem Steel was almost completely a lie. 7. Unrealistic:- Taylor believed that employees are motivated by material benefits. He therefore, concentrated on physical and financial needs, completely ignoring the social and ego needs.

ADMINISTRATIVE THEORY OF MANAGEMENT

This is an approach, given by Henry Fayol, focuses on principles that can be used by managers to coordinate the internal activities of organization. According to this theory, business operations are classified into six major activities:1. Technical (production); 2. Commercial (buying and selling); 3. Financial (use of capital); 4. Security (protection of property); 5. Accounting (keeping financial record); 6. Managerial. MANAGEMENT FUNCTIONS At managerial level, Fayol gave five functions:1. Planning:- Devising a course of action that will help the organization meet its objectives. 2. Organizing:- Arrangement of the material and human resources of the organization to put the long term plans into effect. 3. Commanding:- Giving directions to employees so that they perform the needful task. 4. Coordination:- making sure that the resources and activities of the organization are working properly to achieve the desired goals. 5. Controlling:- monitoring the plans to ensure that they are being carried out properly. PRINCIPLES OF MANAGEMENT According to Fayol, there are fourteen types of principles that can be applied in all types, functions, levels and sizes of organizations. These are:1. Division of work:- This principle is of specialization and can be applied to all kind of work. The workers are made more efficient by specializing them in a particular work. 2. Authority and responsibility:- Authority is the right to give orders and responsibility arises out of assignment of an activity. When a manager is given authority to exercise power, he must be prepared to bear responsibility to perform the work in a satisfactory manner. 3. Discipline:- A good discipline is the result of effective leadership, a clear understanding between management and workers. All employees must obey the rules and regulations that govern the working of an organization. 4. Unity of command:- An employee should receive commands from one superior only. Taylor believes that dual command undermines authority and puts discipline

in jeopardy. according to Fayol, when an employee reports to more than one superior, conflict in instructions and confusion of authority would result. 5. Unity of direction:- This principle calls for one manager one plan for all operations having the same objective. For example, the HR department in a bank should not have two directions in recruitment. 6. Subordination of individual interest to the common good :- In any organization, the interests of employees should not take precedence over the interests of the organization as a whole. This can only be achieved when managers set an example through their good conduct. They must be prepared to sacrifice their personal interest. 7. Remuneration of personnel:- Compensation for work done should be fair for both employees and employers. 8. Order:- Materials and people should be in right place at the right time. The general principle in this respect is a place for everything and everything in its place. 9. Centralization:- Decreasing the role of subordinates in decision-making is centralization. According to Fayol, managers should retain final responsibility but also give their subordinates enough authority to do their jobs properly. 10. Scalar chain:- The graded chain of authority from top to bottom through which all communication flow is termed as scalar chain. 11. Equity:- It is the combination of justice and kindness. Its application requires good sense, experience, and good nature for soliciting loyality and devotion from employees. 12. Stability of tenure:- Stability of tenure is essential because an employee require time to get use to new work and perform at full level. Management must, therefore, encourage long-term commitment to employees. 13. Initiative:- The opportunity to perform independently is an essential component of employee growth and development. So, they must be encouraged to think through to implement a plan of action. 14. Esprit de corps:- This principle states the union is strength. Promoting team spirit will give the organization a sense of unity. According to Fayol, even small factors could help to develop this spirit.

BUREAUCRACY
The word bureaucracy implies an organization characterized by rules, procedures, impersonal relations, and elaborate and fairly rigid hierarchy of authority-responsibility relationships. In simple terms, a structure with highly routine operation tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control and decisionmaking that follows the chain of command. It is mainly found in military organizations. ELEMENTS OF BUREAUCRACY The features of bureaucratic structure as given by Weber are :1. Hierarchy:- It is a way of ranking various positions in descending order from top to bottom. In this type of structure, each lower office is under the supervision and control of higher one.

2. Division of work:- The total work is divided into specialized jobs. By doing the same type of work a number of times, employee becomes an expert in course of time. 3. Rules, regulations and procedures:- The behavior of employees is regulated through a set of rules. The emphasis is on consistency. Employees are expected to follow these rules strictly. 4. Records:- Proper records have to be kept for everything. Files have to be maintained to record the decisions and activities of the organization on a day-today basis for future use. 5. Impersonal relationships:- Everything should proceed according to rules. There is no room for personal involvement, emotions and sentiments. The decision must be governed by rational considerations rather than personal factors. 6. Administrative class:- Bureaucracies generally have administrative class responsible for coordinating the work. The officials, known as bureaucrats, are selected on the basis of their competence and skills. ADVANTAGES OF BUREAUCRACY Important advantages of bureaucracy are :1. Specialization:- It offers a valid basis of dividing work. Whole organization id divided into different functional departments. 2. Rationality:- It brings rationality to organization. Judgments are made according to an objective and generally agreed upon criteria. 3. Predictability:- The rules, regulations, training, specialization, structure and other elements of bureaucracy enables it to provide predictability and stability to an organization. 4. Democracy:- In this type of organization, decisions are arrived at according to an acceptable criteria. Activities are taken up on a priority basis, according to a time schedule. DISADVANTAGES OF BUREAUCRACY The negative sides of bureaucracy are:1. Rigidity:- Its critics claim that it is rigid, static and inflexible. In the name of rules, people may even shirk away from their responsibilities. 2. Impersonality:- It emphasizes mechanical way of doing things. That is why, it is labeled as an organization without people. 3. Displacement of objectives:- As organizational procedures becomes more formalized and individuals more specialized, means often become confused with ends. 4. Compartmentalization of activities:- Strict categorization of work restricts people from performing tasks that they are capable of doing. The typical bureaucracy tries to preserve all the old jobs and add new for new requirements, resulting in wastage of scarce inputs. 5. Empire-building:- It turns manager into empire-builders. They try to enhance their status and power by adding more people, more space, more physical facilities despite of whether they are required or not.

6. Red tape:- This is a kind of paper mills. Everything is recorded on paper and files moves through endless official channels, resulting in inordinate delays.

NEO-CLASSICAL THEORY