PRINCIPALS OF MANAGEMENT

UNIT I INTRODUCTION TO MANAGEMENT

Organization- Management- Role of managers- Evolution of management thought- Organization and the
environmental factors- Managing globally- Strategies for International business.

UNIT II PLANNING
Nature and purpose of planning- Planning process- Types of plans- Objectives- Managing by Objective (MBO)
strategies- Types of strategies Policies Decision Making- Types of decision- Decision making process-
Rational decision making process- Decision making under different conditions.

UNIT III ORGANISING
Nature and purpose of organizing- Organization structure- Formal and informal groups/ organization- Line and
staff authority- Departmentation- Span of control- Centralization and decentralization- Delegation of
authority- Staffing- Selection and Recruitment- Orientation- Career development- Career stages- Training-
Performance appraisal

UNIT IV DIRECTING
Managing people- Communication- Hurdles to effective communication- Organization culture- Elements and
types of culture- Managing cultural diversity.

UNIT V CONTROLLING
Process of controlling- Types of control- Budgetary and non-budgetary control techniques- Managing
productivity- Cost control- Purchase control- Maintenance control- Quality control- Planning
MEANING OF ORGANISATION

Organisation is treated as a dynamic process and a
managerial activity which is essential for planning the
utilization of company's resources, plant an equipment
materials, money and people to accomplish the various
objectives.
"Organisation is the form of every human association for
the attainment of a common purpose.
According to Chester I. Barnard, "Organisation is a system
of co-operative activities of two or more persons."

Management

According to Koontz Management is the task of the manager to
establish and maintain an internal environment in which
people working together in groups can perform effectively and
efficiently towards the attainment of group goals

Management refers to the art of getting things done through
the effort of others
A manager is someone who coordinates and oversees the
work of other people so that organizational goals can be
accomplished.
Henry Fayol 14 Principles
Division of Work
Authority and Responsibility
Discipline
Unity of Command
Unity of Direction
Subordination of individual interest to the general interest
Remuneration
Centralization
Scalar Chain
Order
Equity
Stability of Tenure of Personnel
Initiative
Esprit de Corps
Role of Managers
Managers fulfil a variety of roles. A role is an organized set of
behaviors that is associated with a particular office or position.
There are three types of roles which a manager usually does in any
organization.
Interpersonal roles
Leader builds relationships with employees and communicates with,
motivates, and coaches them
Informational roles
Internal and external information about issues that can affect the
organization
Decisional roles
Entrepreneur, disturbance handler, resource allocator, and negotiator


Importance of Management

Sound Management provides the following benefits

Achievement of group goals
Optimum utilization of resources
Fulfillment of social obligation
Economic growth
Stability
Human Development
Meets the challenge of change

Classification of Managerial Functions

Functions Sub Functions

Planning
Forecasting, decision making, strategy formulation, policy
making, programming, scheduling, budgeting, problem-
solving, innovation, investigation and research.

Organizing
Grouping of Functions, Departmentation, delegation,
decentralization, activity analysis, task allocation

Staffing
Manpower planning, job analysis, Recruitment, Selection,
Training, Placement, Compensation, Promotion, appraisal,
etc.

Directing
Supervision, Motivation, communication, Leadership, etc

Controlling
Fixation of standard, recording, measurement, reporting
corrective action.
Evolution of Management

Father of Management

Henry Fayol (1841 1925)

14 Principles to Mgt

Father of Scientific Management

F.W. Taylor (1856 1915)


Art of knowing exactly what is to be done and the best
way of doing it.

Gharles Babbage (1792 - 1871)

professor , Cambridge University

Point out ways to development of management
science as a separate subject.
Oilver Sheldon (1894-1951)

One who changed the ideas on the role of the
manager and thereby gave him a status in the
organization
Mary Parker Follett (1868 -1933)

American Philosopher

Invented the law of situation
Thomas Gerald Rose (1887 - 1963)

British Engineer

Developed and designed the principles and
methods of management accountancy
APPROACHES TO MANAGEMENT

Modern management has developed through several stages or approaches. These approaches to the
study of management may be classified as under:
Classical Approach
- witness great advance in management practice
- introduce better and faster methods of production
Behavioral Approach
- Stress of psychological factors (Human)
- Leadership
Management Science Approach
- Also know as operational approach
- Analyses nature, purpose, structure of each management purpose
System Approach
-Composed of elements which are related and dependent upon one another.
Types of system
- Static system : do not undergo any changes
-Dynamic system : Undergo changes
Open system :engages in interaction with people, things and forces in the environment.
Contingency Approach
- latest approach
-Management must not consider management principles and techniques
-Management - situational
Social Responsibility of Business


Globalization

Globalization means covering or affecting the whole world. It means
integration of the domestic economy of a country with the international
economy.
Globalization means the internationalization of trade. Particularly product
transaction and the integrating of economic and capital markets throughout
the world.
The integration takes place when trade exists freely among the different
countries, thus the world economy becomes a single market or single
economy.
In globalization there is no restriction of quota, license, tariff and other
administrative barrier for trade.

The term globalization has four parameter:

Reduction of trade barriers, so as to permit free flow of goods
across national frontiers.
Free flow of capital among nations.
Free flow of technology among nations.
Free movement of labour among different countries of the
world.

Benefits of Globalization

Improves efficiency
Improves factor Income
Improves finance

Drawbacks of Globalization

Globalization increases the problems of unemployment
Domestic Industries finds difficulty in survival.
Only group of people who participate in the process of
Globalization will be benefited, this creates income
inequality within the country
Control on domestic economy becomes more difficult

International Business

- Involves commercial activities that cross national
frontiers
- It consist of Exporting, Importing, licensing.
- The activities necessary for ascertaining the need and
want of target consumer often takes place in more
than one country.
Entry into International Business

The method of entering or engaging in International Business can be
divided into three categories
1. Exporting
Indirect Exporting
Direct Exporting
2. Non Equity arrangement Doing international business through an
arrangement that does not involve any investments.
3. Direct Foreign Investments preferred mode of ownership
- Minority Interest Having less than 50% Ownership Position
- Joint Ventures Merger of two companies.