Principles and Functions of Management

To start with it would be necessary to know what the term :Management means and what it seeks to do or achieve. We talk of managing a business, school, a Church, a Hospital, or even managing ines own home. In these activities we find that there are distinct inputs and outputs. In business, the inputs are called resources and these are categorized into four heads viz., men, money, machines, and materials. The resource of time is part of each of these four resources Definition of Management : PETER DRUCKER: Management is a multi-purpose organ that manages a business and manages managers and manages workerers and work. It is an organ of society specifically charged with making resources productive, that is, with the responsibilities for organized economic advance. The reason for the existence of a business enterprise is that it supplies economic goods and services. The business enterprise must discharge its economic responsibility so as to strengthen society, and in accordance of business enterprise, the vital principle that determines its nature, is economic performance Every act, every decision, every deliberation of management has this as its first dimension. JOHN F MEE: Management may be defined as the art of securing maximum results with a minimum effort so as to secure maximum prosperity and happiness for both the employers and employee and give the public the best possible service. MARY CUSHING NILES: Good Management, or Scientific Management, achieves a social objective with the best use of Human and Material Energy and time and with satisfaction for the participants and the public. WILLIAM SPRIEGEL: Management is that function of an enterprise

which concerns itself with the direction and control over the various activities to attain the business to attain the business objectives. Management is essential an executive function; it deals particularly with the active direction of the human effort. Principles of Management: A principle is a fundamental truth, or what is believed to be truth at a given time. Theory of Management with definitions is explained above briefly. A theory is a systematic grouping of inter-related principles. It ties together, as it were, individual principles to give a meaningful framework of scientific knowledge. A manager is the one who manages all the operations in his assigned functional area. He needs the organized knowledge of the science, that is the principles of Management. NEED FOR MANAGEMENT PRINCIPLES: Management theory can be explained by looking at management as a process of decision making governing the actions of people, in allocating resources to the fulfillment of known objectives, and with optimum effect. All the essential features of the notion of management are contained in this statement of theory, as also are all the factors that contribute to successful management practice. The essential features of Management are considered as Management Principles and are elaborated as follows: (a) Management is a Process in the sense of a combined pattern of mental action and human behaviour; it is not per se an art, nor an in born aptitude, nor a technique, nor a science. It can be looked upon as a process by which managers formulate, direct and operate organizations with the coordinated human efforts in order to achieve pre determined objectives. Management is a process of planning, executing and controlling the activities of an enterprise.A managers decisions and actions are primarily resultoriented or goal directed and there are a series of events and activities in succession by which the work of the of the enterprise proceeds towards a goal.

(b) Management as a Profession : Management is very much recognized as a profession.A professional is a person who has undergone a certain vigorous training to aquire a body of knowledge and develop certain skills with the objective of rendering a service to society. Decision forms the essence of management, and this presupposes consideration and judgement preceding the decisions, as well as facts and data from which to judge. Professionalism has two basic elements(i) the acquisition of certain knowledge and skills (ii) having the right attitudes Manager must be aware of his responsibilities to the shareholders, to the employees of the company, to customers, to society and so on. (c) The decision has to be carried into effect by the other people who, for this purpose may or may not have to be held under the jurisdiction of the manager; in either case, he has to solicit or attain their effective cooperation, which implies an inherent social facet to the process, and a need for social skills. (d) The objectives at any given time are determined, and such determination is reached through the judgement and decisions which are the basis of the actions to accomplish them (e) Actions relate to the Utilisation of resources. Since the resources concerned could be used in alternative ways, to achieve the specific objective, the choice of the best alternative becomes part of the basic decisions. The criterion of judgement being the relative outcome from any given allocation of resources. (f) The management process thus has an essential economic character in its primary concern for effective attainment of chosen or expected objectives within optimum or minimum use of resources. (g) The economic achievements can be ensured only by continuous review of the actions ensuing from the decisions, which means that the judgement and decision process recurs over and over again after evaluating the outputs with reference to the plan of actions (control function).

(h) To maintain the recurrent action and interaction is the crux of the responsibilities inherent in the management process. (i) The management process is future oriented by reason of its concern with planning, what is to be done and how it will be done. Functions of Management: The basic functions of the Management can be broadly categorized as, Organising, Planning, Leading, Measuring and controlling, Framework Organising: Once the work of an enterprise grows beyond what a single craftsman can do, organization becomes necessary. We have to assign the various tasks to different people and to coordinate their efforts. This process leads to departments and divisions as the enterprise expands, each of which has its particular mission A manager must view organization as a social arrangement. Because the organization is composed of people rather than physical objects. Managerial actions influence the way men respond.. The attitudes of these people are continually shifting and evolving. In organizing the objective of getting the work done has to be achieved and at the same time a social structure has to be built. The social structure helps the needs of the people doing work Planning: A key activity of all managers is planning the work under their direction. Working with each other and with the people who will carryout the plans, managers clarify objectives and set goals for each department or sub-division. They establish policies and standard procedure to guide those who do the work. Managers must develop programs, strategy and schedules. This development can only keep the work moving towards objectives The plans have to be changed or readjusted periodically if required based on new information and changes in Market forces leading to changes in Production programs. The process of planning is best understood if one first examines the basic stages in making a decision. These stages are diagnosing the

problem, finding good alternative solutions, projecting the result of each alternative, and finally selecting the action to be taken. Decision making is not the act of a isolated individual. It takes place in the organization which is established fully. Many different persons in the organization may contribute to the formulation and final selection of the master plan. Leading: A manager must also provide leadership if the team working with him in the organization are to work together and achieve the desired results. A Manager must keep good relation with every member of his team .In leading a manager strives to integrate the needs of his subordinates with the welfare of the company. A leader (Manager) must try to maintain a good balance between individual motivation and efficiency. The kind of Behavior by a manager fosters atmosphere of trust, respect and confidence .This will help subordinates to perform their duties and achieving personnel aspiration .At certain times the manager as leader has to be tough hold people to high standards performance, disciplines wisely and occasionally using the power. Measuring and Controlling A manger has to measure his progress to obtain the objectives .If he finds the operation are not proceeding as per the plan he has to take corrective actions. Framework A framework is necessary to think in a orderly fashion and to provide (a) For diagnosing the complex management problems and (b)For working on improvement at one stage without losing sight of other stages. The framework must have systems and procedures, infrastructure for future expansions and the documentation or connectivity thro network must help the employees to carryout the work without any problems. This has to be planned and designed at the top level.