27-11-2012, 02:37 PM
GENERAL PRINCIPLES OF MANAGEMENT
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Introduction
Even before describing and defining the term “management” it will be usefull to trace theneed for it. The need for and the concept of management are associated with the phenomenonof group activity. Everywhere in a modern society, we find groups of people working in allspheres of human activity. Wherever there is an economic activity or a social activity(including religious and cultural activities) or a political activity or any other type activityundertaken by human beings for realising certain specific objectives; we find people workingin groups. A school, a college, a university, a business enterprise (in private or public sector),a club, a hospital, a government administrative department, an army, a family, a sportsassociation etc., are all examples of group activities.
Definition
Management is a distinct process consisting of planning, organising, actuating, andcontrolling, performed to determine and accomplish stated objectives by the use of humanbeings and other resources. -----George .R. Terry
Nature Of Management
The nature of management are examined by the following perspectives;
1. Management as an Activity:
The way a teacher performs, a teaching activity; a player performs a sports activity; in thesame way a manager performs a managerial activity. The managerial activity is, in fact, themanagerial job i.e., the task performed by a manager or the group of managers in anenterprise.
2. Management as a Discipline:
Management education is a gaining popularity in the present day times. Management as asubject is taught at schools, colleges, universities. Specialised management institutes aregrowing rapidly, imparting management education and training and helping people toprepare for a career in management.
3. Management as a Group:
Management refers to the totality of all those persons, who are charged with theresponsibility of managing a particular enterprise. Management means the group of allmanagers; who represents a distinct class of society viz. Management as a group could beconsidered at two levels;-
At the Micro-level, management as a group refers to all managers from the higherauthority to the lowest authority; who are managing a particular enterprise.
At the Macro-level, management has a group or class refers to all persons who areperforming the managerial jobs in all different enterprises-economic, social, cultural, politicaletc.., which are located in an economy or a nation.
4. Management as an Economic Resource [or a Factor of Production]:
The economist has all the time been speaking of four factors of production viz., land, labour,capital and enterprise. To this list of four, management, as a factor of production, must be
added, to make it a complete list of all factors of production.
5. Management as a System of Authority:
Management as a system of authority might also be referred to as the management hierarchyi.e. a gradation of managers; consisting of managers from the highest rank to the lowest one.Of course in any enterprise, this management hierarchy is found; because there are variousmanagers, with different grades of authority.
6. Management as an Art:
The art of management demands creativity on the part of the practitioner; so as to find ordevelop new and unique ways of understanding human behaviour; and making people workin the desired manner towards the best realisation of the common objectives.
7. Management as a Science:
Management as a science; because There is a large body of knowledge about management,which is further extended into specialised areas of management like production, finance,marketing, personnel, etc.., There are a number of management concepts, principles, theories and techniques.
8. Management as a Profession:
A profession must be defined as an occupation; which involves rendering of services of aspecialised and personal nature, for a fee called professional charges. Without going into thequestion whether management is a profession or not; it could be said that there is animperative need for management profession, for the following fundamental reason:
Principles Of Management
1. The Concept Of The Term “Principle”
A principle might be defined as a statement of fundamental truth; which is established withreference to a ‘cause and effect relationship’ between two (or more) variables or events.A principle, as such as, imparts the value of predictability to a science containing principles;and helps a practitioner of the discipline to calculate the effects of certain causes and applythe principles in practical situations of life-making the science meaningful and useful tohuman beings in society.
2. The Concept Of Management Principle
In the concept of management ,too, a principle might be defined as a statement offundamental truth ,which is established with reference to a cause and effect relationshipbetween two variables or events; such relationship, however, being only a cause of nature.
To illustrate the above concept, let us consider the division of work. according to theprinciple, if the work is divided and only a part of the job is assigned to an individual ; humanefficiency would increase .admittedly , what the principle states is fundamental truth.However it is not possible to say and calculate how much human efficiency is likely toincrease; if the work is divided in a particular manner, in the appropriate organizational context.
3. Derivation Of Management Principle
There are two sources from which management principles are derived;
(i)Observation and experience of practitioners and scholars of management
One most important and traditional source from which management principles have beenderived is the observation and experience of the practitioners and scholars of management.
(ii)outcome of experimental studies conducted by researchers
In the present day times ,,a lot of research is being conducted by the practitioners andscholars of management. Experimental studies in the field of management are basically oftwo types;-
(a)Experimental studies conducted with a view to testing the validity of some of the existingprinciples of management and
(b)Experimental studies conducted with a view to developing new principles ofmanagement.
Principles Of Management
1. Unity Of Objectives
The term objectives means a goal to be achieved. the management structure depends upon theobjectives of the enterprise. therefore the objectives of an enterprise must be clearly fixed.Every part of management should be designed to facilitate the accomplishment of common
objectives.
2. Division Of Work
The total work should be divided .this is known as departmentation .all the activities must beplanned. this gives an idea of the total work load of the enterprise. Effective organization must promote specialisation.
3. Span Of Control
No executive in the management should be required to supervise more than he can effectivelymanage. An executive should be asked to supervise a reasonable number of subordinates.
4. Scalar Principles
Line of authority must proceed from the highest executive to the worker at the bottom levelthrough a downward flow. this is known as CHAIN OF COMMAND. the superior has adirect authority over his immediate subordinate .he is responsible for efficient performance ofthe work entrusted.
5. Unity Of Command
Each individual should receive orders from only one boss .a person cannot serve under twomasters. He is accountable to his immediate superior. Dual subordination should be avoided.it creates disorder and confusion and leads to indiscipline.
6. Functional Definition
The authority and responsibility of every individual should be clearly defined. Therelationship between different jobs should be clearly specified.
7. Unity Of Direction
There must be one head and one plan for a group of activities directing towards the sameobjectives .this is necessary to ensure completion of tasks and co-ordination of activities.
8. Co-Ordination
The various activities of undertaking should be co-ordinated to secure the desired results. Thedifferent departments may have to function frequently in close consultation with otherdepartments in a departmental store .the purchase department and sales department activitiesmust be well coordinated to increase profit.
9. Delegation Of Authority
Delegation means the entrustment of the part of the work or some duties to the subordinates.Superior has to entrust some of his duties to his immediate subordinate. The subordinatesshould be granted necessary powers and rights. He becomes accountable to his superior.Delegation creates obligation on the part of the subordinate.
10. The Principles Of Responsibility
The superior should be held responsible for the act of his subordinates. He cannot escapefrom his responsibility. He is accountable to his higher authorities.