General Principles of Mgt

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Thus, there is no single definition of management. In general, management is theprocess of effective accomplishment of tasks through others.

Principle of Management

Introduction:

Principles of Management: An Analysis of Managerial Functions clearly described the

principles to be used in performing various functions of management. Managers have to set

in a procedure to revise these principles periodically so that they can recollect the relevant

principles when performing the managerial tasks and explicitly consider the relevance and

application of these principles in their practice. Many of us use them implicitly. But a

professionally educated and trained manager must use them explicitly. He has to ensure that

these principles are applied and if any exceptional situation is there, managers should ignore

the principles consciously and be clear in their mind they chose not to use them due to the

exceptional nature of the situation. - Harold Koontz and Cyril ODonnell

Definition:

"Principles of management are the guiding rules of laws for managerial action."

- Herbert G. Hicks

Principles of management are fundamental rules of management that could be taughtin schools and applied in all organizational situations.

The group of individuals who make decisions about how a business is run. The initiation and maintenance of an investment portfolio.

Fundamental Assumptions for Developing Principles:

Organization and individuals behave in conformity with rational economic principles. One best way to organize production is through systematic and scientific

investigations.

Organization is established to fulfill production-related and economic goals.

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Five Elements:

Fayol's definition of management roles and actions distinguishes between five elements

Purveyance. (Forecast & Plan). Examining the future and drawing up a plan of action.

The elements of strategy.

Planning - What should be done and in what time frame. To organize - Build up the structure, both material and human, of the undertaking. To command - Maintain the activity among the personnel. To coordinate - Binding together, unifying and harmonizing all activity and effort. To control - Seeing that everything occurs in conformity with established rule and

expressed command.

The Need for Principles of Management:

To Increase Efficiency To Crystallize the Nature of Management To Improve Research To Attain Social Goals

Henri Fayol:

Henri Fayol was a French mining engineer and director of mines who developed a general

theory ofbusiness administration. He was one of the most influential contributors to modern

concepts ofmanagement. He was born in Istanbul, 29 July 1841- Paris - 19 November 1925,

and he was worked as the managing director of a big French mining company named as

Compagnie de Commentry-Fourchambeau-Decazeville for the last 30 years of his working

life (1888 - 1918). He died in Paris in 1925.

Fayol's workwas one of the first comprehensive statements of a general theory of

management. He proposed that there were six primary functions of management and 14

principles of management

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Functions of Management:

Forecasting Planning Organizing Commanding CoordinatingMonitoring (French: controller: in the sense that a manager must receive feedback

about a process in order to make necessary adjustments).

Foyals 14 principles as the General Principles Management:

1. Division of work: This principle is basically the same with Adam Smiths Divisionof Labour which means specialization. According to Fayol, the object of division

of work is to produce more and better work with the same effort.

2. Authority and Responsibility: Authority is the right to give orders and the power toexact obedience. Distinction must be made between a managers official authority

deriving from office and personal authority. (Note: Later in 1959, social psychologists

John French and Bertam Raven, defined five sources of power as: coercive power,

reward power, legitimate power, referent power and expert power).

According to Fayol, authority is not to be conceived of apart from responsibility,

which is apart from sanction - reward or penalty which goes with the exercise of

power. Responsibility is a corollary of authority, it is its natural consequence and

essential counterpart, and wheresoevers authority is exercised responsibility arises.

3. Discipline: Discipline, being the outcome of different varying agreements, naturallyappears under the most diverse forms; obligations of obedience, application, energy,

behavior, vary, in effect from one firm to another, from one group of employees to

another, from one time to another. Nevertheless, general opinion is deeply convinced

that discipline is absolutely essential for the smooth running of business and that

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without discipline no enterprise could prosper.

4. Unity of command: These principles emphasize that an employee should receiveorders from one superior only. Fayol says that if it is violated, authority is undermined,

discipline is in jeopardy, order distributed and stability threatened. (Note: matrix

organizations are in contrast to Fayols unity of command principle).

5. Unity of direction: One head and one plan for a group of activities having the sameobjective. (Note: Organizations write and announce vision and mission statements,

objectives and strategies so that the organizations align and go in the same direction).

6. Subordination of individual interest to the general interest: This principle calls tomind the fact that in a business the interest of one employee or group of employees

should not prevail over that of the concern, that the interest of the home should come

before that of its members and that interest of the state should have pride of place over

that of one citizen or group of citizens. (Note: What about the invisible hand

concept of Adam Smith?)

7. Remuneration (payment/compensation) of personnel: Remuneration of personnelis the price of the services rendered. It should be fair and, as far as is possible, afford

satisfaction both to personnel and firm (employee and employer). Three modes of

payment in use for workers are: Time rates, job rates and piece rates. Fayol also

mentioned about bonuses and profit-sharing and non-financial incentives.

8. Centralization: Everything which goes to increase the importance of thesubordinates role is decentralization; everything which goes to reduce it is

centralization. The question of centralization or decentralization is a simple question

of proportion; it is a matter of finding the optimum degree for the particular concern.

The degree of centralization must vary according to different cases:

If the moral worth of the manager, his strength, intelligence, experience and

swiftness of thought allow him to have a wide span of activities he will be able to

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carry centralization.

If conversely, he prefers to have greater recourse to the experience of his colleagues

whilst reserving himself the privilege of giving central directives, he can effect

considerable decentralization.

9. Scalar Chain (line of authority): The scalar chain is the chain of superiors from theultimate authority to the lowest ranks.

10.Order: Fayol defines the formula for order as a place for everyone and everyone inhis place. He classifies two types of order as material order, which means everything

must be in its appointed place and social order, which presupposes the most

successful execution of the two most difficult managerial activities: good organization

and good selection. Social order demands precise knowledge of the human

requirements and resources of the concern and a constant balance between these

requirements and resources.

11.Equity: Desire for equity and equality of treatment are aspirations to be taken intoaccount in dealing with employees. (Note: In motivation theories of organizational

behaviour equity is important. John Stacey Adams, (behavioral psychologist)

asserted that employees seek to maintain equity between the inputs that they bring to a

job and the outcomes that they receive from it against the perceived inputs and

outcomes of others in 1963. Please follow the link for a visual representation of

Adams theory)

12.Stability of tenure of personnel: Time is required for an employee to get used to newwork and succeed in doing it well; always assuming that he possesses the requisite

abilities. If when he has got used to it, or before then, he is removed, he will not have

had time to render worthwhile service. If this be repeated indefinitely the work will

never by properly done.

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Generally the managerial personnel of prosperous concerns is stable, that of

unsuccessful ones is unstable. Instability of tenure is at one and the same time cause

and effect of bad running. In common with all the other principles, therefore, stability

of tenure and personnel is also a question of proportion.

13.Initiative: Much tact and some integrity are required to inspire and maintaineveryones initiative, within the limits imposed, by respect for authority and for

discipline. The manager must be able to sacrifice some personal vanity in order to

grant this sort of satisfaction to subordinates.

14.Esprit de corps: Means Union is strength. Harmony, union among the personnel ofa concern, is great strength in that concern. The principle to be observed is unity of

command; the dangers to be avoided are (a) a misguided interpretation of the motto

divide and rule, (b) the abuse of written communications.

a. Personnel must not be split up. Dividing enemy forces to weaken them is clever, butdividing ones own team is a grave sin against the business.

b. Abuse of written communications. Wherever possible, contacts should be verbal;there is gain in speed, clarity and harmony.

Steps to Derive Principles:

Observation and study of the problem. Testing the principles. Choice of the problem or opportunity. Making hypothesis. Conclusion and forecasting.

Observing and study of the problem:

Researchers in management observe the problems carefully in different situations and

from different angles. They have to study deeply the problem, its causes, magnitude,

consequences and find their solutions.

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Testing the Principles:

The principles formed must be scientifically tested and verified. Before generalization of

the principles testing under different situations is a must.

Choice of the Problem or Opportunity:

The researchers in management science identify the area where general principles of

business management are lacking or need modification.

Making Hypothesis:

On the basis of observation and the data collection a hypothesis is formed, under

assumed situation what is expected to happen. For example, there will be more output, as

wages are paid according to piece-rate system.

Conclusion and Forecasting:

The next step will be to reach the logical conclusion and predict the specific happenings

under assumed situations. Thus, the management principles are not as exact as principles of

physical sciences, because management is a social science and thus a victim of the nearness

of social sciences. It deals with the human beings whose behaviors are always unpredictable,

because they have gone individually different socio-economic status, needs and perceptions.

Secondly, it deals with the complex problems about which to little is known, though a lot of

principles have been derived out of experiments, observation and enquiry. These principles

are being satisfactorily applied but we cannot say that we have attained the perfection stage.

Invention and improvement of theories in every discipline is a continuous process. The

existing management principles are satisfactorily effective in understanding the complex

management problems. These principles are applied in the real situations of managing

business enterprises and achieving handsome results.

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NATURE/ CHARACTERISTICS FEATURES OF PRINCIPLES OF MANAGEMENT

Nature of management principles stands for special features or characteristics of

management principles. Following are the important features of the management principles:

Universal application: Principles of management are applied in every situation, where the

objectives are attained through group efforts. All organizations such as social, political,

cultural or even religious organizations apply for the successful operations of their activities.

Every organization must make the best possible use of its available resources by the

application of management principles i.e., planning, organizing, staffing, directing and

controlling effectively and achieve the desired result.

Flexibility:

Management principles are dynamic guidelines and not static rules. Management helps

the business in multiplying its profit at minimum cost. The business situation and its

socio-economic environment is enough to suit the size, nature, needs and situations of the

business. Improvement and modification of management principles is a continuing process,

so the principle of management is always flexible.

General Statement:

Management principles are concerned mostly with human behavior which cannot be

tested under controlled conditions i.e., a laboratory. Human behavior is always unpredictable.

So, management principles are not as exact as the principles of physical science. In this way,

the management principles are merely statements.

It influences human behavior: Human element is an essential factor of production. It activities

and extracts work form other factor also. Every worker is individually different from the

other workers as regards his ability, knowledge, skill, socio-economic status, attitudes and

ideologies. Management is concerned with the integration of individual efforts and how to

decentralize them towards achieving the desired results. so, management principles is said to

be a work and group activity. Thus, management principles aim at influencing individual

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efforts and directing them to the minimization of profit with the minimum wattage and the

best possible utilization of available resources.

Cause and Effect Relationship:

The management principles also form cause and effect relationship. It indicates the

consequences of its principles, for instance if wages are paid on the basis of piece-rate system

the quantity of work will be more, but the quality will suffer. If the principles of unity of

command is adopted, the confusion, duplication and overlapping will be avoided. In the same

way, other principles also, indicate the relationship between principles, their consequences

and results.

Equal Importance:

There is no inferiority or superiority between the principles no one principle has greater

significance than the other. We cannot say the principles of unity of command are more

important than the principle of unity of direction. In this way all the principles of

management are equally important.

Careful and Discreet Application:

Principles of management cannot be applied blindly, because there principles are relative,

not absolute. Thus these principles should be according to organizational needs and

situations.

Decision - Making:

Management in always concerned with decision making factors of production are scarce

and they also have alternative uses. So, management has to decide the best possible

combination of available resources, and most suitable techniques of production applied. In

this way, management principles are therefore the basis of decision making.

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MANAGEMENT PRINCIPLES AND ITS IMPORTANCE

Principles of management are very important for the successful management of

organisation in its real situations. These are important guidelines to the management. These

principles point out the areas where management should concentrate immediate attention.

They simplify the process of management, increase the overall efficiency and help in

achieving the desired objective of the business.

Significance of Management Principles:

It increases the efficiency of the management:Principles of management provides

guidelines to the manager for handling complex problems more effectively. It also facilitates

managers in performing this duties smoothly. Thus the efficiency of the management is

increased and the manager adopts systematic and scientific approach towards the solution of

the problem.

It helps in Achieving Social Objective:

Management develops spirit of co-operation and co-ordination among workers and their

employees. It also helps in the optimum utilization of social resources. It eliminates

unnecessary wastage of resources. These days, principles of management are directed at

maximum profit without loss of social values. Thus, the management must supply

commodities at fair price, not including the adulteration and make payment of reasonable

wages to their workers.

It Generates Sound Understanding:

The management principles generate sound understanding of the difficult problems of

business enterprises. The management applies scientific approach for the solution of the

complex problem. In this regard, managing the enterprise and incur wastage of resources.

It Directs the Areas of Training:

The principles of management identify the present and prospective areas of management.

For this managers should be specially trained. Business situations are themselves difficult and

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they change considerably with the change in social, political and economic situations. So, the

principles of management make significance in finding the areas and impart requisite training

program to their executives.

It Guides to Research Work in Management:

The management principles needed to make guidelines which requires necessary

modifications with the changing situations. In order to make management meaningful and

practical utility, researchers examine these principles justify this utility and suggest various

modification, if necessary

TEN MANAGERIAL ROLESInterpersonal Roles

The Figurehead Role (Performing ceremonial and social duties as the organizationsrepresentative)

The Leader Role The Liaison Role (Communicating, Particularly With Outsiders)

Informational Roles

The Recipient Role (Receiving information about the operation of an enterprise)

The Disseminator Role (Passing information to subordinates) The Spokesperson Role (Transmitting information to those outside the organisation)

Decisions Roles

The entrepreneurial Role The Disturbance Handier Role The Resource Allocator Role The Negotiator Role (Dealing with various persons and groups of persons)

Conclusion

Nevertheless, there are some limitations and arguments on certain elements of his

proposed principles. For example, Division of work / specialization, which means dividing,

jobs into specialized and repetitive tasks in order to make them as simple as possible. The

argument is that job can become too specialized. When this happens, employees express their

frustrations and boredom by taking the days off, socializing around instead of concentrating

in their own jobs, and ignoring quality of works. At last, efficiency declines.

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References

Harold Koontz and Cyril ODonnell,Principles of Management: An Analysis of Managerial Functions, 2nd Ed.,

McGraw-Hill, New York, 1959

A B C Morgen Witzel (2003). Fifty key figures in management. Routledge, 2003.ISBN 0415369770p.96.

Narayanan, Veekay K; Nath, Raghu (1993), Organization theory : a strategic approach,Irwin, p. 29, ISBN 9780256087789

Fayol, Henri (1917) (in French), Administration industrielle et gnrale; prvoyance,organisation, commandement, coordination, controle, Paris, H. Dunod et E.

Pinat, OCLC 40224931

Daft, Richard L (1983), Organization theory and design, The West series inmanagement. West Pub. Co., cop, ISBN 9780314696458

Authors

Henri Fayol

Harold Koontz

Cyril ODonnell

Dr. Peeling's

Jeff Blackwell's

Charles W. L. Hill