Module – I

Principles of Management
By
Prof Utsavi Gala
Concept of Management
F. W. Taylor defines management as “an art of
knowing what is to be done and seeing that it is
done in the best possible manner.”

Every organization at every level, needs management,

be it an organization as small as a temple or as big as
a school requires management.

Management is an activity which co-ordinates the

human and non-human resources for achieving the
desired results.
Concept of Management
Concept of Management
Functions :-

PLANNING –

Terry and Franklin defines planning as

“selecting information and making
assumptions regarding the future to
formulate the activities necessary to achieve
organizational objectives.”
Concept of Management
 It is a basic function of management that involves

determination of objectives and devising ways to

achieve objectives.
 It fills the gap between where we are and where we

want to go.
 In the organisation it is required at all levels.

 It is future-oriented and done in advance to achieve a

goal in future and has to be carefully done so that

future uncertainties do not fail the plans.
Concept of Management
Functions :-

ORGANISING –

[Link] defines Organising as “a structure

and process by which a co-operative group of
human beings allocates its tasks among its
members, identifies relationships and
integrates its activities towards common
objectives.”
Concept of Management
Organising is:-
Identification and classification of required

objectives
Division of activities to achieve the objectives

Grouping of activities necessary to attain

objectives
Assignment of each grouping to a manager with

authority/delegation necessary to supervise it.

Concept of Management
STAFFING –

[Link] defines Staffing as “process of

selecting right person in the right place at
the right time.”

A properly conducted staffing function helps

to lead and control organisational activities.
Concept of Management
DIRECTING –

This involves guiding and motivating individuals or

teams to work towards the organization's goals.

Leadership is about inspiring and influencing others to

perform at their best. Effective communication is
crucial in management. Managers need to convey
information clearly, listen to feedback, and foster a
culture of open communication within the
organization.
Concept of Management
CONTROLLING –

This involves monitoring and evaluating the performance

of the organization to ensure that it is on track to
achieve its goals. Control mechanisms help identify
deviations from plans and take corrective actions.

Coordination is the process of harmonizing and

integrating various activities and efforts within the
organization. It ensures that all parts of the organization
work together towards common objectives.
Nature of Management
Management is viewed as :-

1. Science

2. Art

3. Profession
Nature of Management
I. Management as Science

Following are the features:-

 Clarity of concepts

 Scientific methods

 Clarity of theory

 Causal relationship

 Systematised theory of knowledge

 Universal Application
Nature of Management
II. Management as Art

Following are the features:-

 Artist’s vision

 Knowledge

 Communication

 Creativity

 Skilled performance

 Practice
Nature of Management
III. Management as Profession

Following are the features:-

 General principles/specialised knowledge

 Professional status through performance

 Code of ethics

 Dedication

 Association

 Professional qualifications
 CLASSICAL MANAGEMENT
APPROACH
 Classical management theory is a school of thought
that emphasises a systematic approach to
organisational management to increase efficiency and
productivity. Originating in the early 20th century, this
theory combines the key aspects of managing workers
and resources to achieve maximum output with
minimal effort and expenses.
 It focuses heavily on the structure and logistics of
operational management, advocating strict managerial
control, a clear division of labour, and the prioritisation
of task accomplishment. The essence of classical
management theory lies in its orderly, predictable, and
highly structured approach, which aims to enhance
profitability and efficiency in industrial operations.
CLASSICAL MANAGEMENT
APPROACH
 CLASSICAL MANAGEMENT
APPROACH
Scientific Management
 Taylor's approach involves time-motion studies, standardised
tools and procedures, and the scientific selection of workers.
His theory promoted that workers should be trained and
assigned tasks based on their capabilities and monitored to
ensure they use the right methods.
 Example: In the early 20th century, Ford Motor Company
adopted Frederick Taylor's principles of scientific
management to streamline their production process. The
company implemented time-motion studies, standardised
tasks, and used assembly lines to improve productivity.
Workers were assigned specific, repetitive tasks based on
their skills and efficiency, leading to mass production of
automobiles, such as the famous Model T, at a lower cost
and faster rate.
 CLASSICAL MANAGEMENT
APPROACH
Administrative Management
 It centres around the organisation as a whole rather than the
individual worker. Fayol introduced five primary functions of
management—planning, organising, commanding, coordinating,
and controlling—and 14 management principles, including unity
of command, division of work, and authority with responsibility.
His work is fundamental in understanding how organisations are
administered.
 Example: The Indian Railways system is a practical example of
Henri Fayol’s administrative management principles. The Railways
have a clear organisational structure with departments for
operations, maintenance, safety, and management. They apply
Fayol's principles, such as division of work, authority and
responsibility balance, and unity of command to effectively
manage millions of passengers and freight daily. Planning,
organising, and controlling operations are critical in the day-to-
day functioning of such a large entity.
 CLASSICAL MANAGEMENT
APPROACH
Bureaucratic Management
 This theory emphasises a structured, formalised, and
highly organised approach to management. Weber
advocated for managing organisations with a clear
hierarchy of authority, a detailed set of rules and
regulations for managing operations, and positions filled
based on technical competence.
 Example: Government organisations such as the Indian
Civil Services are a prime example of Max Weber's
bureaucratic management theory. Jobs are assigned based
on technical competence, and positions are filled through
merit-based exams. Employees are expected to adhere to
clear policies, and authority is exercised in a formal
manner to maintain efficiency and consistency in the
organisation's operations.
Henry Fayol’s Principles of
Management
Henry Fayol was a French industrialist and
management theorist who is widely regarded
as one of the pioneers of modern
management theory.

He introduced his principles of management

in the early 20th century, and they continue
to be influential in contemporary
management practices.
Henry Fayol’s Principles of
Management
Limitations of Classical Management Strategy

 Limited Focus on Human Element

(Classical theory largely ignores employee

needs for motivation, job satisfaction, and a
healthy work environment).
 Rigidity in Structure

 Inapplicability in Complex or Modern

Organisations
 Lack of Attention to Teamwork and
 BEHAVIOURAL MANAGEMENT
THEORIES
Behavioral Management Theory (also
known as the Human Relations
Movement) is all about focusing on
the people in the workplace, not just the
tasks they perform. It emphasizes
understanding human behavior, motivation,
and the importance of teamwork. This theory
developed because earlier management
ideas, treated workers a bit like machines,
focusing only on efficiency and productivity.
Behavioral Management Theory tries to
understand how employees feel, what
motivates them, and how they can work
BEHAVIOURAL MANAGEMENT
THEORIES
Management Levels
Managerial Skills
Managerial Skills
1. Conceptual Skills – It refers to the mental ability of

managers to integrate the firm’s internal environment

with its external environment. Managers should be
knowledgeable and imaginative to use the skills.

2. Human Skills – Managers at all levels have human

skills to deal with people (individual, group and team).

3. Technical Skills – Managers need to be Tech Savy in

this fast changing digitalisation world.