UNIT IIIPRINCIPLES OF MANAGEMENT

By Nishant

Introduction

The functions which describe managerial job, when put together, make up the

management process. This process is analyzed into key functions of management

viz., planning, organizing, staffing, directing and controlling.

Planning, organizing and controlling which deal mostly with non-human aspects are

known as mechanics of management, whereas staffing and direction which are

primarily concerned with human aspects constitute dynamics of management.

As all functions are not equally important for all managers, time spent by them for

each of these functions varies according to their levels in the organization.

Characteristics of Management• Management is a universal process.• Management is purposeful• Management is creative• Management is integrative• Management is a group of phenomenon• Management is a continuous• Management is multidisciplinary

Basic Management Functions• Planning and decision making• Organizing• Leading• Controlling

Planning and Decision MakingPlanning is primary function of management. It is process of thinking in advance the future course of actions. It involves what to do, when to do, where to do and by whom it is to be done. Thus it is actually thinking before doing.It also refers to anticipate the opportunity, problems and conditions and choosing from among the alternative future courses of action. The planning process generally includes the following activities.Major activities in planning includes • Forecasting is looking ahead to anticipate the opportunity, problems and conditions in a future period of

time.• Establishing objectives means setting the end results to be accomplished by directing organizational efforts.• Programming is establishing sequence and priority of actions to be followed in the attainment of the

objectives.• Scheduling is deciding on time sequence for program steps.• Budgeting is allocation of resources to minimize costs.• Establishing procedures means developing and applying standardized methods of performing a specific

work.• Developing policies involve establishment and interpretation of standing decisions that apply to repetitive

questions and problems of significance to be organization as a whole.

OrganizingOrganizing is process of dividing work into duties, grouping of these duties in the form of positions and grouping of these positions in the form of departments.

It is the process of defining and grouping of activities and creating authority relationship among them.

It is an important activity which brings together the man power and resources for accomplishment of goals. It includes

• Developing the organization structure which involves identification of task and grouping them into units or departments for performance.

• Delegating authority to the managers and making him responsible for group performance.

• Establishing relations creating conditions necessary for mutually cooperative efforts of people in the organization.

Staffing• Planning the organization with suitable personnel

constitutes the staffing function.

• It involves • Selection• Training and development • Compensation • Appraisal of subordinates by the manager.

Manpower planning and manpower management looks after these activities and try to ensure suitable methods of remuneration and performance appraisal of the employees.

Directing Function• It involves managing people and the work through the

means of motivation, proper leadership, effective communication and coordination.

• A manager must develop ability to command. He should issue orders and instructions without arousing any resentment among the subordinates.

• He must be able to secure willing obedience from his subordinates without destroying their initiative and creativity.

• Moreover, it requires a sound communication system to enable exchange of ideas and information for common understanding.

Controlling• Controlling is process of seeing whether the activities have been

performed according to the plans or not. It is checking actual performance against the agreed or given standards. It involves

• Establishing performance standards for evaluating results.

• Performance on the basis of records and reports on the progress of work.

• Performance evaluation against the standards set.

• Corrective action to regulate operations, remove deficiencies and improve performance

Fundamental Managerial Skills• Technical Skills• Interpersonal skills• Conceptual Skills• Diagnostic skills• Communication skills• Decision making skills• Time Management skills• Design skills

THANKS