Management UNIT-2 Notes PDF

## UNIT-2 ### Principles and Functions of Management ### Principles of Management * The principles of management are fundamental guidelines that help managers ensure efficiency and effectiveness in their work. Henri Fayol is credited with identifying 14 principles of management. 1. **Division of Wo...

## UNIT-2 ### Principles and Functions of Management ### Principles of Management * The principles of management are fundamental guidelines that help managers ensure efficiency and effectiveness in their work. Henri Fayol is credited with identifying 14 principles of management. 1. **Division of Work:** Specialization increases productivity and efficiency. 2. **Authority and Responsibility:** Authority gives the right to command; responsibility ensures accountability. 3. **Discipline:** Adherence to organizational rules and policies is essential. 4. **Unity of Command:** An employee should receive orders from only one superior. 5. **Unity of Direction:** Activities with the same objective should have one plan and one leader. 6. **Subordination of Individual Interest:** The interest of the organization should take precedence over individual interests. 7. **Remuneration:** Fair compensation ensures employee satisfaction and productivity. 8. **Centralization and Decentralization:** Balancing decision-making power between the central authority and subordinates. 9. **Scalar Chain:** Clear hierarchy ensures effective communication. 10. **Order:** A place for everything and everyone ensures efficiency. 11. **Equity:** Fair treatment fosters loyalty and dedication. 12. **Stability of Tenure:** Reducing turnover improves efficiency and morale. 13. **Initiative:** Encouraging employees to take initiative promotes innovation. 14. **Esprit de Corps:** Teamwork and harmony among employees lead to success. ### Functions of Management * Management functions describe the key activities managers perform to achieve organizational goals. Henri Fayol also identified these primary functions. 1. **Planning:** * Setting goals and deciding how to achieve them. * Includes strategic, tactical, and operational planning. 2. **Organizing:** * Structuring resources and activities to achieve objectives. * Includes delegation, departmentalization, and resource allocation. 3. **Staffing:** * Recruiting, selecting, training, and developing employees. * Ensures the right people are in the right jobs. 4. **Directing (Leading):** * Motivating and leading employees to achieve goals. * Involves communication, leadership, and motivation techniques. 5. **Controlling:** * Monitoring performance and taking corrective actions to ensure goals are met. * Includes setting standards, measuring performance, and implementing corrective measures. ### Management vs Administration | Basis | Management | Administration | | --- | --- | --- | | Focus | Implementing of plans and policies | Formulation of plans and policies | | Level | Middle and lower levels | Top-level | | Nature | Executive and operational | Decision making & policy formulation | | Orientation | Concerned with doing | Concerned with thinking | | Scope | Limited to managing employees and processes | Broader, including management and strategy | ### Role of Managers in Management * Managers play a vital role in ensuring the success of an organization. Their roles can be categorized into the following: * **Interpersonal Roles (Leadership and Interaction)** 1. **Figurehead:** Representing the organization at formal events. 2. **Leader:** Motivating & leading the team. 3. **Liaison:** Building relationships within and outside the organization. * **Informational Roles (Processing Information)** 1. **Monitor:** Gathering information to understand organizational performance. 2. **Disseminator:** Sharing critical information with team members. 3. **Spokesperson:** Representing the organization to external stakeholders. * **Decisional Roles (Making Decisions)** 1. **Entrepreneur:** Initiating and implementing new ideas. 2. **Disturbance Handler:** Resolving conflicts and crises. 3. **Resource Allocator:** Deciding where resources are best utilized. 4. **Negotiator:** Mediating discussions to achieve desired outcomes. ### Skills Required by Managers 1. **Technical Skills:** Expertise in specific areas. 2. **Human Skills:** Interpersonal and communication abilities. 3. **Conceptual Skills:** Strategic thinking and problem-solving.