Introduction To

Principles of Management
WHAT?
• Principles & Practices of Management
• General Management
• Management Dynamics
• Management Process
WHY?
Relevant to disciplines such as:
Finance, Human Resources, Marketing,
Production, Services, Information
Technology, Computer Management,
Engineering, Medical Sciences…
 Case Study
Mr. A Mr. B

• 2 hours to finish a • 2 hours to get the job

job. done.
• Has the required • Has 4 people to do it.
skills. • They have to required
• Has the required information.
information. • Answerable to his
• Answerable to his boss.
boss.
HOW?
• Understand the meaning
• Learn definitions
• Scope & functions
• History of management thought
• Modern management approach
Characteristics Of Management
• Mgmt is a process
• Group Activity
• Science & Art
• Mgmt as profession
• Levels of Organisation
• Authority (responsibility)
• Need of Organisation
• Decision Making as Primary Function
Management Science or Art
Science Art
• Systemized body of • Personalized process
knowledge. • Practice based.
• Developed over a period of • Involves creativity.
time. • Practical know-how
• Universal applicability. (knowledge & skill).
• Can be learnt and taught. • Performance.

Mgmt is not perfect science but Management is a fine art.

social science. • Conceptual, technical, human
• If we spend more money on relations, decision making
advertising, sales may go up. skill.
• If we keep employees happy, • Creativity in the face of
there may not be a strike. competition & different styles.
• Performance indicators like
profit, growth.
Difference Between
• Management Vs Organization
• Management Vs Administration
Functions of Management
• Planning – objectives, policies, programs, procedures, budgets, schedules,
etc in advance. What? When? How? Why? Where?
• Organizing – Who? How much responsibility?
• Staffing – Recruitment, selection, development, training & compensation.
• Directing – Issue orders, guide and teach, supervise.
• Leadership – 5 styles; Autocratic, Democratic, Free Rein Leadership,
Persuasive Leadership, Creative Leadership, Institutional Leadership.
• Motivation – Behavioral concept, various theories.
• Communication – Elements, different methods, horizontal/vertical,
importance, principles.
• Co-ordination – Early beginning, direct contact, reciprocating, continuity.
• Control – Deviation from plan…continuous process
Contributors – Pioneering Ideas
Robert Owen – British Businessman, cotton mill Advocated concern for the working and living
owner. conditions of workers.
1771 -1858

Charles Babbage – English Mathematician. Son of Built the first practical mechanical calculator and
wealthy banker. a prototype of modern computers; predicted the
1792 -1871 specialization of mental work; suggested profit
sharing.

Henry P Towne. – Mechanical Engineer. President Outlined the importance of management as a

Yale and Towne manufacturing company. science and called for the development of
1844 -1924 management principles.

Federick W. Taylor Acknowledged “the father of scientific

Shop Management (1903), Principles of Scientific management”, his primary concern was to
Management (1911),Testimony before the special increase productivity through greater efficiency
house committee (1912) in production and increased pay for workers,
through the application of scientific method. His
principles emphasized using science, creating
group harmony and cooperation, achieving
maximum output and developing workers.

Henry L Gantt – 1901 Called for scientific selection of workers and

“harmonious cooperation” between labor and
management. Developed the Gantt chart.
Stressed the need for training.
Frank and Lillian Gilbreth (1900) Frank is known primarily for his time and motion
studies. Lillian, an industrial psychologist focused
on the human aspects of work and the
understanding of workers, personalities and
needs.

Modern Operational Management Theory

Henry Fayol Referred to as the “father of modern
Administration Industrialist of Generale management theory”. Divided industrial activities
1916 into 6 groups: technical, commercial, financial,
security, accounting and managerial. Recognized
the need for teaching the need for management.
Formulated the fourteen principles of
management.
Behavioral Sciences
Hugo Munsterberg Application of psychology to industrial
1912 management.
Walter Dill scott Application of psychology to advertising,
1911 marketing and personnel.

Max Webber Theory of Bureaucracy.

1946, 1947
Vilfredo Pareto Referred to as “the father of the social systems
1896 - 1917 approach” to organization and management.
Elton Mayo & F J Roethlisberger Famous studies at the Hawthorne plant of the
(1933) western electric company. Influence of social
attitudes and relationships of workgroups on
performance.
Systems Theory
Chester Barnard The task of managers is to maintain a system of
The Functions of the Executive (1938) cooperative efforts in a formal organization. He
suggested a comprehensive social systems
approach to managing.
Emergence of Modern Management Thought
and Recent Contribution to Management.
Peter F Drucker (1974) Very prominent writer on many general
management topics.
W. Edward Deming Introduced quality control in Japan.
(After World War II)
Laurence Peter (1969) Observed that eventually people get promoted to
a level where they are incompetent.

William Ouchi (1981) Discussed selected Japanese Managerial

practices adopted in the US environment.

Thomas Peters and Robert Waterman Identified characteristics of companies they

(1982) considered excellent.
Early Management Approach
Scientific Management represented by F.W. Taylor
• Time and Motion Study
• Differential Piece Rate
• Drastic Reorganisation of supervision
• Scientific Recruitment & Training

Limitations
• Humiliation
• Resentment on being obsolete
• Planning & decision making Vs workers
• Narrow scope of theory
• Assumption of economic men
Early Management Approach
Functional Approach by Henry Fayol

• Concept of Management: common activities divided

into six categories.
• Qualities of a Manager: Physical, mental, moral,
education, knowledge, experience
 Fayol’s 14 Principles of Management
1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interest to general interest
7. Remuneration
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure of personnel
13. Initiative
14. Espirit-de-corps
Modern Management Approaches

1. Behavioural Approach
2. Quantitative Approach
3. System Approach
4. Contingency Approach
5. Human Relations Movement
Thank You.