Question.1: Discuss the importance and application of principle of management in the present day context.

Answer:

PRINCIPLE OF MANAGEMENT
Management
Management is a global phenomenon. It is a very popular and widely used term. All organizations - business, political, cultural or social are involved in management because it is the management which helps and directs the various efforts towards a definite purpose. Management is a process of planning, organizing, leading and controlling the efforts of organization members and using all other organizational resources to achieve stated organizational goals. It is the process of working with and through others to effectively achieve the goals of the organization, by efficiently using limited resources in the changing world. Management involves creating an internal environment; it is the responsibility of management to create such conditions which are conducive to maximum efforts so that people are able to perform their task efficiently and effectively. It includes ensuring availability of raw materials, determination of wages and salaries, formulation of rules & regulations etc. Good management includes both being effective & efficient. Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals and can co-operate towards attainment of group goals- Harold Koontz. Management is an art of knowing what to do, when to do and see that it is done in the best and cheapest way.- F.W. Taylor.
To manage is to forecast, to plan, to organize, to command to co-ordinate and control. -Henry Fayol

Management can be in following categories: Management as Process Management as Activity Management as Discipline Management as Science Management as Art Management as Profession

Fayols Principle of Management

Hanery Fayol is widely acclaimed as the founder of the classical school of management. He was the first to systemized the management is all about. In attempt to develop a science of management he divided business operations in six activities: Technical, Commercial, Financial, Security, Accounting, Managerial. Fayol primary focus was managerial and he evolved fourteen principles of management which may be briefly stated as follows: 1.Division of Labour 2.Authority and Responsibility 3.Discipline 4.Unity of Command 5.Unity of Direction 6.Subordination of Individual Interest to the Common Good 7.Remuneration 8.Centralization 9.The Hierarchy (Scalar Chain) 10.Order 11.Equity 12.Stability of Staff 13.Initiative 14.Esprit de Corps 1. Division of Labor: The object of division of work is to derive the benefits from the principle of specialization which can be applied not only in technical work, put in all other work as well. Fayol pointed out that division of work has its obvious limits. 2. Authority and Responsibility: Responsibility is the essential counterpart of authority and they are correlated. An ideal manger is expected to have official authority arising from official positions as well as his inherent personal authority. Such person authority is compounded of intelligence experience, moral worth, ability to lead, past services, etc. 3. Discipline: Members in an organization need to respect the rules and agreements that govern the organization. Discipline is what the leaders make it, through the observance of agreements, because agreements spell out to formalities of discipline. Three requisites of discipline are (a) good supervisors at all levels, (b) clear and fair agreements, and (c) judicious application of penalties of sanctions. 4. Unity of Command: This principle requires that employee should receive orders form one superior only. Dual command wreaks havoc in all concerns, when an employee reported to more than one superior, conflict in instruction and confusion of authority would result. 5. Unity of Direction: While unity of direction is concerned with the functioning of the body
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corporate, unity of command is only concerned with the functioning of personnel at all levels. For the accomplishment of a group of activities having the same objective, there should be one manager and one plan. A body with two heads is in the social as in the animal sphere a monster, and has difficulty in surviving. 6. Subordination of Individual Interest to the common Good: Common interest must prevail over individual interest, but some factors like ambition, laziness, weakness and others tend to reduce the importance of general interest. 7. Remuneration: As the prices of services rendered remunerations should be fair and satisfactory to both the parties. 8. Centralization: Everything which goes to increase the importance of the subordinate's role is decentralization; everything which goes to reduce it is centralization. Fayol believed that manager should retain the final responsibility but also need to give their subordinated enough authority to perform their jobs properly. 9. The Hierarchy (Scalar Chain): It is the chain of superiors or the line of authority form the highest executive to the lowest one for the purpose of communication. The need for swift action should be reconciled with due regard to the line of authority by using gang plank or direct contact. 10. Order: This is a principle of organization relating to things and persons material order requires a place for everything and everything in its place and social demands the engagement of the right man in the right place. 11. Equity: Equity is greater than justice, since it results from the combination of kindliness and justice. The application of equity requires much good sense, experience and good nature with a view to securing devotion and loyalty form employees. 12. Stability of Staff: Stability of tenure is essential to get an employee accustomed to doing a new work and to enable him in performing it well. Instability of tenure is an evidence of bad running of affairs. 13. Initiative. The freedom to purpose a plan and to execute it is what is known as initiative that increases zeal and energy on the part of human beings. Since initiative is one of the keenest satisfactions for an intelligent man to experience. Fayol advised managers to secure as much initiative from employees as possible. 14. Espirit de corps. This is an extension of the principle of unity of command whereby team work is ensured. To maintain proper espirit de corps in the organization, personality politics and abuse of written and communications are to be guarded against.

Application of Principle of Management

Principles of management work together to help an organization to achieve a particular result and reach its goals. It makes an individual contribution to an organization's overall effectiveness, and they all interrelate. Management Principle are applicable in any type of organization for the following purposes: 1. Planning 2. Organizing 3. Motivation 4. Controlling 5. Coordinating 6. Communicating 1. Planning: Planning involves formulating a course of action. The forecast plays an important role in the organization plans to be prepared to meet the forecast, it is the process of calculating or predicting a future event through analyzing available data. Planning can include identifying how much work is required and what resources are needed. 2. Organizing: Organizing consists of arranging resources into a coherent whole. This can include the creation of an administrative structure, but can also be as detailed as arranging the flow of materials through a manufacturing facility or the flow of paperwork through an office. Organizing describes in detail precisely how the plan will be accomplished. 3. Motivation: Motivation creates a desire in people to act. In the case of organizational management, motivation is specifically directed towards getting people to act pursuant to the structure defined by the organizing step. Motivation can be in the form of rewards, such as compensation, or in the form of punishments, such as loss of compensation/employment. 4. Controlling: Controlling is the process of directing the use of resources and verifying that the plan is being accomplished through the procedures identified in the organizing step. Controlling also includes taking corrective action in event that the plan is not being accomplished because procedures are not being followed. Identifying whether the problems exist in terms of motivating, organizing, planning, or forecasting is essential to exerting control that will lead the organization to the desired outcome. 5. Coordinating: Coordinating consists of getting disparate resources to work together. Not only must an organization be coordinated within itself, but an organization must be coordinated with its suppliers and customers if it is to be successful. Within the organization, coordination plays the important role of ensuring that forecasting, planning, organizing, motivating, and controlling are internally consistent and moving in all aspects of the organization towards achieving its goals. Coordinating outside of the organization helps to refine the forecast, planning, and organizing processes by gathering inputs from customers and suppliers regarding their needs and capabilities. 6. Communicating: Communicating pulls all of the other principles of management together. Each phase requires communication so that everyone involved can provide input and know the
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result. Further more, information has to be communicated between each of the processes so that they remain consistent with the organization's overall objectives. Communication with customers and suppliers is also critical so that as much information as possible is available at each step. Communication is important in the event of a problem identified at a particular step that affects other principles, such as identified problems with the forecasting or organizing steps, so that it can be addressed.

Importance of Management Principle

Following are the main importance of the Principles of Management. 1. Improves Understanding. 2. Direction for Training of Managers. 3. Role of Management. 4. Guide to Research in Management. 5. Establishes Sound Organization 6. Essentials for Prosperity of Society 1. Improves Understanding: From the knowledge of principles managers get indication on how to manage an organization. The principles enable managers to decide what should be done to accomplish given tasks and to handle situations which may arise in management. These principles make managers more efficient. 2. Direction for Training of Managers: Principles of management provide understanding of management process what managers would do to accomplish what. Thus, these are helpful in identifying the areas of management in which existing & future managers should be trained. 3. Role of Management: Management principles makes the role of managers concrete. Therefore these principles act as ready reference to the managers to check whether their decisions are appropriate. Besides these principles define managerial activities in practical terms. They tell what a manager is expected to do in specific situation. 4. Guide to Research in Management: The body of management principles indicate lines along which research should be undertaken to make management practical and more effective. The principles guide managers in decision making and action. The researchers can examine whether the guidelines are useful or not. Anything which makes management research more exact & pointed will help improve management practice. 5. Establishes Sound Organization: To establish sound organizational structure is one of the objective of management which is in tune with objective of organization and for fulfilment of this, it establishes effective authority & responsibility relationship. Management fills up various positions with right persons, having right skills, training and qualification. It enables the organization to survive in changing environment. With the change is external environment, the initial co-ordination of organization must be changed. It is responsible for growth and survival of organization.
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6.

Essentials for Prosperity of Society - Efficient management leads to better economical production which helps in turn to increase the welfare of people. Good management makes a difficult task easier by avoiding wastage of scarce resource. It improves standard of living. It increases the profit which is beneficial to business and society will get maximum output at minimum cost by creating employment opportunities which generate income in hands. Organization comes with new products and researches beneficial for society.

Principle of Management in Day to Day Context

1. Principles of Management are Universal Management principles are applicable to all kinds of organizations - business & non business. They are applicable to all levels of management. Every organization must make best possible use by the use of management principles. Therefore, they are universal or all pervasive. 2. Principles of Management are Flexible Management principles are dynamic guidelines and not static rules. There is sufficient room for managerial discretion i.e. they can be modified as per the requirements of the situation. Modification & improvement is a continuous phenomenon in case of principles of management. 3. Principles of Management have a Cause & Effect Relationship Principles of management indicate cause and effect relationship between related variables. They indicate what will be the consequence or result of certain actions. Therefore, if one is known, the other can be traced. 4. Principles of Management - Aims at Influencing Human Behavior Human behavior is complex and unpredictable. Management principles are directed towards regulating human behavior so that people can give their best to the organization. Management is concerned with integrating efforts and harmonizing them towards a goal. But in certain situations even these principles fail to understand human behavior. 5. Principles of Management are of Equal Importance All management principles are equally important. No particular principle has greater importance than the other. They are all required together for the achievement of organizational goals.

Question.3: Direction function of management involves dealing with human factor Explain this statement.

Answer:

DIRECTION FUNCTION
Basic Concepts about Directing
Direction consists of the process and techniques utilizing in issuing instruction and making certain that operations are carried out as originally planned. Direction is a complex function that includes all those activities which are designed to which encourage subordinates to work effectively and efficiently in both short and long run. Direction is telling people what to do and seeing that they do it to the best of their ability. Directing deals with the steps a manager takes to get subordinates and others to carry out plans. Direction provides link between different functions in an organization. Direction is moving to action and supplying simulative power to the group.-George R Terry. Directing concerns the total manner in which a manager influences the actions of subordinates. It is the final action of a manager in getting others to act after all preparations have been completed. Massie

Directing Function of Management

Directing is influencing people's behaviour through motivation, communication, group dynamics, leadership and discipline. The purpose of directing is to channel the behaviour of all personnel to accomplish the organization's mission and objectives while simultaneously helping them accomplish their own career objectives. Managers give this function a variety of names i.e. leading, influencing, coaching, motivating, interpersonal relations, and human relations. The directing function gives the manager an active rather than a passive role in employee performance, conduct and accomplishments. Managers accomplish their objectives through people. In blaming others for her or his human resource problems, a manager is denying the management responsibilities inherent in the directing function. The directing function gives managers a second responsibility: helping people in the organization accomplish their individual career goals. Organizations do not succeed while their people are failing. Helping people in the organization with career planning and professional development is an integral part of the directing function.

Elements of Direction
The directing function of management consists of four elements or sub-functions: (i) Leadership; (ii) Communication; (iii) Motivation; (iv) Supervision; (i) Leadership: A manager has to issue orders and instructions. He has to guide and counsel his subordinates in their work in order to improve their performance and achieve enterprise objectives. It is the process by which an executive or manager imaginatively directs/guides and influences the work of others in choosing and attaining specified goals by mediating between the individual and organization in such a manner that both will get maximum satisfaction. It is the ability to build up confidence and zeal among people and to create an urge in them, to be led. In order to be a successful leader, a manager must possess the qualities of foresight, drive, initiative, self-confidence and personal integrity. Different situations demand different type of leadership, such as autocratic leadership, democratic leadership and free rein leadership.

Element of Leadership are as follows:

It is a process of influence. Its purpose is to influence the behavior of followers to get willing cooperation of a members or the group. It involves interaction between two or more person. The interaction between the leader and his followers is based on interpersonal relationship which grows out of the leaders support and help to the followers in achieving their individual and group goals. It Involve pursuit of common goal under the advice and guideline of the leader in the interest of individuals group and organization. It s Always related to Situation. The style of leadership differs from situation to situation.

(ii) Communication: Communication is said to be the number one problem of management today. Managers spend 75 to 90 per cent of their working time in communicating with others. Communication is the means by which the behaviour of the subordinates is modified and change is effected in their actions. Communication means sharing of ideas in common. The essence of communication is getting the receiver and the sender tuned together for a particular message. It refers to the exchange of ideas, feelings, emotions, knowledge and information between two or more persons. Nothing happens in management till communication takes place. Communication is a two way process. It involves both information and understanding. It may be written, oral or gesture. It is said to be formal when it follows the formal channels provided in the organization structure. It is informal communication, when it does not follow the formal channels. It flows downward from a superior to subordinates and upward from subordinates to superior. It also flows between two or more persons operating at the same level of authority.
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Communication is essential at all level of management for decision-making and planning. It increases managerial capacity and facilitates control. Good managers are good communicators and poor managers are poor communicators. (iii) Motivation: Motivation is the psychological process of creating urge among the subordinates to do certain things or behave in the desired manner. "Motivation means the act of stimulating some one or oneself to get a desired course of action to push the right button to get a desired reaction - a compliment, dollar raise, a smile, a promise of a raise, a new typewriter, a preferred location or a new desk. - Michael Jucius The importance of motivation can be realised from the fact that performance of a worker depends upon his ability and the motivation. There are many strategies adopted by managers for increasing the motivation of subordinates. A manager bas to provide some personal incentive to the subordinates to motivate, persuade and inspire them for contributing their best towards the achievement of enterprise objectives. The incentives may be financial, such as increase in wages, or non-financial, like better working conditions, job security, recognition, etc. A sound motivational system must be productive, competitive, comprehensive and flexible, and it must consider the psychological, social, safety, ego and economic needs of the workers. (iv) Supervision: Supervision is an important directing function of management. After issuing instructions, the manager or the supervisor bas to see that the given instructions are carried out. Supervision refers to the job of overseeing subordinates at work to ensure maximum utilization of resources, to get the required and directed work done and to correct the subordinates whenever they go wrong. Though supervision is performed at all levels of management, the major responsibility for it lies with the first line of management. Sound organizational set-up, effective delegation, human approach, effective communication and management by exception make supervision effective.

Features of Direction
Following are the main features of direction: 1. An Important Management Function; 2. Pervasive Function; 3. Continuing Function; 4. Chain of Command; 5. Creative Function; 6. Linking Function; 7. Delegate Function; 8. Human Factor;

1. An Important Management Function: Direction is an important function of

management. Through it the management initiates actions in the organization. It starts after plans are drawn up, organization properly designed, and able persons are appointed on the responsible posts. Planning, organizing and staffing functions of management are useless unless there is proper direction of the people in the use or various resources. It helps in achieving co-ordination in the organization.

2. Pervasive Function: Direction is a pervasive function of management, performed at every

level of management in the context of superior subordinate relationship. Direction or issuing instructions or providing guidance and leadership flow from top to bottom among the scalar chain as every manager in the organization is superior as well as subordinate except manager at the extreme top and manager at extreme bottom. Direction is thus performed by every manager as he guides, leads and motivates his subordinates. Managers at the bottom guide workers of rank and file.

3. Continuing Function: Directing activity continues throughout the life of the organization. A
manager never ceases to guide, lead and inspire his subordinates. He continuously supervises whether his orders and instructions are strictly carried out by his subordinates.

4. Chain of Command: Direction initiates at the top level and follows to bottom through the
hierarchy. Every subordinate is to be directed by his own superior only.

5. Creative Function: Direction is a creative function of management which converts plans

into action. Directing is management in action. It is the process around which performance revolves. Without direction, human factor in the organization becomes inactive and useless and other resources in the organization remain unutilized.

6. Linking Function: Direction provides link between preparatory functions such as planning,
organizing, staffing and controlling. It provides necessary materials for the comparison of performance with the plans.

7. Delegate Function: Direction is supposed to be a function dealing with human beings.

Human behaviour is unpredictable by nature and conditioning the peoples behaviour towards the goals of the enterprise is what the executive does in this function. Therefore, it is termed as having

8. Human Factor: Directing is concerned with the human factor in the organization which is
guided, motivated and supervised so as to ensure that it contributes to the objectives of the organization effectively and efficiently. Human factor is dynamic. It is conditioned by a complexity of forces about which not much is known and over which management has little control. It is, therefore, a very difficult and challenging function of management.

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Importance of Direction
Directing or Direction function is the heart, the essence, of the management process in the sense that it works as a nucleus around which all other management functions like planning organizing staffing revolve. It is also called as Life spark of an organization. Being the central character of enterprise, it provides many benefits to a concern which are as follows:1. Initiates Action; 2. Integrates Employees' Efforts; 3. Means of Motivation; 4. Provides Stability & Balance in the Organization; 5. Facilitates Changes; 6 Works as a Nucleus; 7. Efficient Utilization of Resources;

1. Initiates Action: It makes use of the preconditions created by planning, organizing, and
staffing and initiates action by issuing instructions to subordinates and by supervising their work. Thus, without direction, all these managerial activities remain ineffective.

2. Integrates Employees' Efforts: It is the integrating function of management in the sense

that it integrates the individual and group goals with organizational objectives. It integrates the efforts of employees by supervising, guiding and counselling.

3. Means of Motivation: It motivates the employees to contribute to the best of their abilities
for the achievement of organizational objectives. This can be done by providing incentives or compensation, whether monetary or non - monetary, which serves as a Morale booster to the subordinates to the best of their abilities which ultimately helps in growth of organization.

4. Provides Stability & Balance in the Organization: It brings about stability and balance
in the organization through interpersonal communication, effective leadership and motivation.

5. Facilitates Changes: It enables the organization to cope with the changing conditions of the
environment through effective communication and persuasive leadership. Human behaviour resist to change, before the change is introduced, the employees may be informed about the nature of changes and the benefits that are likely to follow, and they may be taken into confidence through persuasive leadership and information sharing.

6. Works as a Nucleus: It works as a nucleus around which all other management functions,
planning, organizing, and staffing evolve. 7. Efficient Utilization of Resources: Direction function helps in clarifying the role of every subordinate towards his work. Through direction, the role of subordinates become clear as manager makes use of his supervisory, the guidance, the instructions and motivation skill to inspire the subordinates. This helps in maximum possible utilization of resources of men, machine, materials and money which helps in reducing costs and increasing profits

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Direction function of management involves dealing with human factor

Organization are social system, compose of roles, interactions and relationship among people occupying various positions in its structure. Success of an organization is in accomplishing its goals significantly depend on the nature and patterns of cooperation among individuals and formal and informal groups. As such, people, as individuals as well as group members, constitute the pillars of organising effort. Technological product, or strategic superiority of an organization over its competitors provides it only a temporary gain as all these things lend themselves to adaptation by competitors. But employee motivation, capabilities and climate of human endeavour are the things which one organization can not copy from another. The importance of human factor in the success of organization effort also arises from the fact that people are not subject to manipulation like machines, as they have their attitudes, motives, feelings, apprehensions, aspirations, etc. No doubt, these all are influenced by organizational policies and practices but not determined and governed by it. Human assets of organization, unlike physical assets, continuously appreciate in value, as knowledge, abilities and skills all grow with training and experience. Direction is one of the most complex function of the management as it ideals with people whose nature itself is quite complex and unpredictable. Directing is the function of guiding, inspiring, overseeing and instructing people towards accomplishment of organizational goals. Direction represents one of the essentials functions of management works on the following principles which deals with human relations directly. 1. Principle of Harmony of Objectives; 2. Principle of Maximum Individual Contribution; 3. Principle of Efficiency of Direction; 4. Principle of Unity of Command; 5. Principle of Managerial Communication; 6. Principle or Comprehension;

1. Principle of Harmony of Objectives: Individuals join an organization to achieve certain

objectives. They want to satisfy their physiological and psychological needs while working in the organization. The organization has its own objectives which it wants to achieve with the help of individuals. Through proper direction techniques the management should try to integrate these two objectives. Common interest must prevail upon personal objectives.

2. Principle of Maximum Individual Contribution: Every individual in the organization

has some capability and ability to perform the task. These capabilities should be harnessed so as to achieve maximum contribution to the organization through individuals. The management should adopt such direction technique that may elicit maximum possible contribution from each subordinate. This needs effective leadership and motivation.
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3. Principle of Efficiency of Direction: Direction should be efficient to lead to

accomplishment of objectives without adversely affecting needs satisfaction of individuals. To provide adequate satisfaction to subordinates, it is necessary to develop correct direction techniques, effective communication system and leadership etc. suitable to the situation.

4. Principle of Unity of Command: According to this principle a person in the organization

must get orders and instructions only from one superior. If he gets orders and instructions from more than one superior, it will create confusion and instability in the organization.

5. Principle of Managerial Communication: The success of an organization depends very

much on the effectiveness of communication system between the superior and his subordinates. There should be two-way communication, downward carries the orders, ideas, instructions to the subordinates and upward enables a manager to understand the subordinates performance and opportunity to express their feelings. Two-way communication makes direction effective.

6. Principle or Comprehension: Direction conveys to subordinates what to do? how to do?

and when to do? The manager should ensure that subordinates understand his instructions and orders correctly in the same sense in which they are conveyed. Clear understanding or direction enables them to get clear situation and avoid unnecessary explanation from superior.

Conclusion
Directing is the process of integrating the people with the organization so as to obtain their willing and zealous cooperation for the achievement of its goals. This requires integration of organizational goals with individual and group goals. Employees as individual and as a group members will contribute their abilities and efforts for the achievement of organizational goals to the extent that they perceive that it simultaneously results an advancement towards their own individual and group goals. Without proper direction and supervision employees become inactive, dull and inefficient and consequently the physical assets like machinery and plant will be put to ineffective use. Directing is the interpersonal aspects of managing by which subordinates are led to understand and contribute effectively and efficiently to the attainment of enterprises objectives. Human factor is very dynamic and is conditioned by a complex of forces about which not much is known and over which management has little control. From above we can say direction, is the heart of management process. Heart plays an important role in a human body as it serves the function pumping blood to all parts of body which makes the parts function. In the similar manner, direction helps the subordinates to perform in best of their abilities and that too in a healthy environment. The manager makes use of the four elements of direction here so that work can be accomplished in a proper and right manner.

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