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principles of management

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  1. 1. <ul><li>Principles & practice of Management: </li></ul><ul><li>Bureaucracy. </li></ul><ul><li>Fayol’s Administrative or process theory </li></ul><ul><li>Unit :1 </li></ul><ul><li>Chapter:2 </li></ul>
  2. 2. Bureaucracy <ul><li>The first pillar in the classical organization theory was systematically provided by Max Weber (1864-1920) </li></ul><ul><li>He was a German sociologist . </li></ul><ul><li>Weber specified various characteristic & elements of his ideal organization structure , like specialization, division of labour, hierarchy position, impersonal relationship etc. </li></ul><ul><li>It provides rigid machine model of an organization for the achievement of its objectives. </li></ul>
  3. 3. Definition <ul><li>Definition: It is an administrative system designed to accomplish large scale administrative tasks by systematically coordinating the work of many individuals. </li></ul>Admin.System designed Large scale admin.task Systematic coordinating Work of many individuals
  4. 4. Features of bureaucracy <ul><li>Administrative class </li></ul><ul><li>Hierarchical position </li></ul><ul><li>Specialization & Division of work. </li></ul><ul><li>Official rules. </li></ul><ul><li>Impersonal Relationship. </li></ul><ul><li>Official Records </li></ul>principles & practice of management_L.M.Prasad
  5. 5. Positive aspect of Bureaucracy <ul><li>The behavior of the employee is predictable because how they will react under different situation as guidelines are already there in writing. </li></ul><ul><li>Bureaucracy leads to efficiency in the organization : there is division of work & specialization which result in efficiency </li></ul>
  6. 6. <ul><li>There is proper delegation of authority in the organization: People are given task according to their competences. </li></ul><ul><li>The behavior of the employee is rational . They take decisions as per law, rules & regulation. they do not go with emotions and interpersonal parameters. </li></ul>
  7. 7. Problems in Bureaucracy <ul><li>Invalidity of bureaucratic assumption. </li></ul><ul><li>Goal Displacement. </li></ul><ul><li>Unintended consequences. </li></ul><ul><li>Inhuman organization. </li></ul><ul><li>Closed system perspective. </li></ul>
  8. 8. Administrative or process management theory <ul><li>This approach was contributed by Henery Fayol. </li></ul><ul><li>Henery Fayol,A French Executive and a contemporary of Taylor. </li></ul>
  9. 9. Fayol’s Administrative Management <ul><li>He divide management approach in to parts: </li></ul><ul><li>Managerial qualities.: </li></ul><ul><li>physical, </li></ul><ul><li>mental, </li></ul><ul><li>moral, </li></ul><ul><li>educational, </li></ul><ul><li>technical </li></ul><ul><li>and experience </li></ul>
  10. 10. <ul><li>2. Elements of Management. (Planning,organising,Cordinating, </li></ul><ul><li>controlling etc) </li></ul><ul><li>Fayol's definition of management roles and actions distinguishes between Five Elements : </li></ul><ul><li>Prevoyance . (Forecast & Plan). Examining the future and drawing up a plan of action. The elements of strategy. </li></ul><ul><li>To organize . Build up the structure, both material and human, of the undertaking. </li></ul><ul><li>To command . Maintain the activity among the personnel. </li></ul><ul><li>To coordinate . Binding together, unifying and harmonizing all activity and effort. </li></ul><ul><li>To control . Seeing that everything occurs in conformity with established rule and expressed command. </li></ul>
  11. 11. <ul><li>General principle of management: </li></ul><ul><li>Division of Work. </li></ul><ul><li>Authority . </li></ul><ul><li>Discipline . </li></ul><ul><li>Unity of Command </li></ul><ul><li>Unity of Direction </li></ul><ul><li>Subordination of individual interest </li></ul><ul><li>Remuneration . </li></ul><ul><li>Centralization </li></ul><ul><li>Scalar chain </li></ul><ul><li>Order </li></ul><ul><li>Equity </li></ul><ul><li>Stability of Tenure of Personnel </li></ul><ul><li>Initiative . </li></ul><ul><li>Esprit de Corps </li></ul>
  12. 12. 14 principles of management <ul><li>Division of Labor </li></ul><ul><ul><li>Henry Fayol has stressed on the specialization of jobs. </li></ul></ul><ul><ul><li>He recommended that work of all kinds must be divided & subdivided and allotted to various persons according to their expertise in a particular area. </li></ul></ul><ul><ul><li>Subdivision of work makes it simpler and results in efficiency. </li></ul></ul><ul><ul><li>It also helps the individual in acquiring speed, accuracy in his performance. </li></ul></ul><ul><ul><li>Specialization leads to efficiency & economy in spheres of business. </li></ul></ul>
  13. 13. <ul><li>Authority & Responsibility </li></ul><ul><ul><li>Authority & responsibility are co-existing. </li></ul></ul><ul><ul><li>If authority is given to a person, he should also be made responsible. </li></ul></ul><ul><ul><li>In a same way, if anyone is made responsible for any job, he should also have concerned authority. </li></ul></ul>
  14. 14. <ul><ul><li>Authority refers to the right of superiors to get exactness from their sub-ordinates whereas responsibility means obligation for the performance of the job assigned. </li></ul></ul><ul><ul><li>There should be a balance between the two i.e. they must go hand in hand. </li></ul></ul><ul><ul><li>Authority without responsibility leads to irresponsible behavior whereas responsibility without authority makes the person ineffective. </li></ul></ul>
  15. 15. <ul><li>Principle of One Boss/unity of command </li></ul><ul><ul><li>A sub-ordinate should receive orders and be accountable to one and only one boss at a time. </li></ul></ul><ul><ul><li>In other words, a sub-ordinate should not receive instructions from more than one person because – </li></ul></ul><ul><li>-  It undermines authority -  Weakens discipline -  Divides loyalty -  Creates confusion -  Escaping responsibilities -  Duplication of work -  Overlapping of efforts </li></ul>
  16. 16. <ul><li>Unity of Direction </li></ul><ul><ul><li>Fayol advocates one head one plan which means that there should be one plan for a group of activities having similar objectives. </li></ul></ul><ul><ul><li>Related activities should be grouped together. There should be one plan of action for them and they should be under the charge of a particular manager. </li></ul></ul>
  17. 17. <ul><ul><li>According to this principle, efforts of all the members of the organization should be directed towards common goal. </li></ul></ul><ul><ul><li>Without unity of direction, unity of action cannot be achieved. </li></ul></ul><ul><ul><li>In fact, unity of command is not possible without unity of direction. </li></ul></ul>
  18. 18. <ul><li>Equity </li></ul><ul><ul><li>Equity means combination of fairness, kindness & justice. </li></ul></ul><ul><ul><li>The employees should be treated with kindness & equity if devotion is expected of them. </li></ul></ul><ul><ul><li>It implies that managers should be fair and impartial while dealing with the subordinates. </li></ul></ul><ul><ul><li>They should give similar treatment to people of similar position. </li></ul></ul><ul><ul><li>They should not discriminate with respect to age, caste, sex, religion, relation etc. </li></ul></ul><ul><ul><li>Equity is essential to create and maintain cordial relations between the managers and sub-ordinate. </li></ul></ul>
  19. 19. <ul><li>Order </li></ul><ul><ul><li>This principle is concerned with proper & systematic arrangement of things and people. </li></ul></ul><ul><ul><li>Arrangement of things is called material order and placement of people is called social order. </li></ul></ul><ul><ul><li>Material order- There should be safe, appropriate and specific place for every article and every place to be effectively used for specific activity and commodity. </li></ul></ul><ul><ul><li>Social order- Selection and appointment of most suitable person on the suitable job. There should be a specific place for every one and everyone should have a specific place so that they can easily be contacted whenever need arises. </li></ul></ul>
  20. 20. <ul><li>Discipline </li></ul><ul><ul><li>According to Fayol, “Discipline means sincerity, obedience, respect of authority & observance of rules and regulations of the enterprise”. </li></ul></ul><ul><ul><li>This principle applies that subordinate should respect their superiors and obey their order. </li></ul></ul>
  21. 21. <ul><ul><li>It is an important requisite for smooth running of the enterprise. </li></ul></ul><ul><ul><li>Discipline is not only required on path of subordinates but also on the part of management. </li></ul></ul><ul><ul><li>Discipline can be enforced if – </li></ul></ul><ul><li>-  There are good superiors at all levels. -  There are clear & fair agreements with workers. -  Sanctions (punishments) are judiciously applied. </li></ul>
  22. 22. <ul><li>Subordination of Individual Interest to General Interest </li></ul><ul><ul><li>In an organization, there are two types of interest, viz., the individual interest of the employees, and the general interest of the organization. </li></ul></ul><ul><ul><li>The individual interest should be given less importance, while the general interest should be given most importance. </li></ul></ul><ul><ul><li>If not, the organization will collapse. </li></ul></ul><ul><li>Remuneration </li></ul><ul><ul><li>Remuneration is the price for services received. </li></ul></ul><ul><ul><li>If an organization wants efficient employees and best performance, then it should have a good remuneration policy. </li></ul></ul><ul><ul><li>This policy should give maximum satisfaction to both employer and employees. </li></ul></ul><ul><ul><li>It should include both financial and non-financial incentives. </li></ul></ul>
  23. 23. <ul><li>Centralization </li></ul><ul><ul><li>In centralization, the authority is concentrated only in few hands. </li></ul></ul><ul><ul><li>However, in decentralization, the authority is distributed to all the levels of management. </li></ul></ul><ul><ul><li>No organization can be completely centralized or decentralized. </li></ul></ul><ul><ul><li>If there is complete centralization, then the subordinates will have no authority (power) to carry out their responsibility (duties). </li></ul></ul><ul><ul><li>Similarly, if there is complete decentralization, then the superior will have no authority to control the organization. </li></ul></ul><ul><ul><li>Therefore, there should be a balance between centralization and decentralization. </li></ul></ul>
  24. 24. <ul><li>Initiative </li></ul><ul><ul><li>Management should encourage initiative. That is, they should encourage the employees to make their own plans and to execute these plans. </li></ul></ul><ul><ul><li>This is because an initiative gives satisfaction to the employees and brings success to the organization. </li></ul></ul><ul><li>Stability of Tenure </li></ul><ul><ul><li>An employee needs time to learn his job and to become efficient. Therefore, he should be given time to become efficient. </li></ul></ul><ul><ul><li>When he becomes efficient, he should be made permanent. In other words, the employees should have job security. </li></ul></ul>
  25. 25. Scalar Chain <ul><li>Scalar Chain is a line of authority. This line joins all the members (managers and employees) from top to bottom. </li></ul><ul><li>Every member must know who is his superior. </li></ul><ul><li>He must also know who is his subordinate. </li></ul><ul><li>Scalar Chain is necessary for good communication. </li></ul><ul><li>Scalar Chain must not be broken in norm circumstances. </li></ul><ul><li>However, if quick action is necessary, then this chain can be broken. </li></ul><ul><li>This is done using &quot; Gang Plank &quot; / &quot; Bridge &quot; / &quot; Direct Contact &quot;. </li></ul>
  26. 26. <ul><li>Esprit De Corps </li></ul><ul><ul><li>Esprit de Corps means &quot; Team Spirit &quot;. Therefore, the management should create unity, co-operation and team-spirit among the employees. </li></ul></ul><ul><ul><li>They should avoid the divide and rule policy. </li></ul></ul>