Principles of Management CHAPTER 1: Definition ,Principles and Basics of Management By: Rafiullah Sherzad Lecturer, Kardan Institute of Higher Education

Definition

Efficiency and Effectiveness Goals Low Waste High Attainment Means Efficiency Ends Effectiveness Resource Usage Goal Attainment FOM 1.9

Principles of Management

Fayol’s Principles of Management Henri Fayol (1841-1925) He has proposed that there are six primary functions of management and 14 principles of management, Forecasting, Planning, Organizing, Commanding, Coordinating, controlling There are 14 Principles of Management described by Henri Fayol.

Basics of Management

Organization Organizations are groups of people, with ideas and resources, working toward common goals. OR A systematic arrangement of people brought together to accomplish some specific purpose is called organization. People Deliberate Structure Distinct Purpose Characteristics of Organization

Skill distribution at various management levels

Functions of management Planning 1 Planning is the process of setting goals, and charting the best way of action for achieving the goals. This function also includes, considering the various steps to be taken to encourage the necessary levels of change and innovation. Organizing 2 Organizing is the process of allocating and arranging work, authority and resources, to the members of the organization so that they can successfully execute the plans. Staffing 3 A: Staffing is the process of filling the positions in the organization and keeping them filled. B: Staffing is the process of recruiting and selecting the right person for the right job at the right time in the right place. Leading 4 Leading involves directing, influencing and motivating employees to perform essential tasks. This function involves display of leadership qualities, different leadership styles, different influencing powers, with excellent abilities of communication and motivation. Controlling 5 Controlling is the process of devising various checks to ensure that planned performance is actually achieved. It involves ensuring that actual activities conform to the planned activities. Monitoring the financial statements, checking the cash registers to avoid overdraft etc., form part of this process.

Levels of management Non- Managerial Employees First-Line Management Foreman, Supervisors, Office Managers Middle Management Plant Managers, Division Managers, Department Managers Top Management President, CEO, Executive Vice Presidents

Planning Planning Planning Organizing Organizing Organizing Staffing Staffing Staffing Directing Controlling Directing Directing Controlling Controlling Top Managers Middle Managers First-Line Managers Least Important Most Important Importance of management functions to managers in each level