2. What is management ?
“Management is an art of getting things done
through others”.
According to Henry Fayol, “to manage is to forecast and to
plan, to organize, to command, to coordinate, and to control”.
3. What is management principle ?
The principles of management are the essential, underlying
factors that form the foundations of successful management.
5. Division of work
Division of work can be clearly seen in
AYS, where different employees
specialize in different tasks. At rocket
sales, each partner is a specialized
worker.
6. Authority and responsibility
Sunil Puri, managing director of AYS, is seen
to exert his command throughout. He is a
figure feared by all employees who willfully
follow his orders and accept his roles as a
responsible figurehead of the company
7. Individual interest to general
interest
As Harpeet Singh Bedi is unable to
subordinate his individual interest to general
interest of the firm, AYS loses sales and
market share and suffers loses and moreover
potential future customers.
8. Unity of command
Unity of command is clearly observed in the
hierarchy of AYS, where all sales
representatives are under the control of Nitin
Rathore, the sales manager. Each employee
had to report to the same manager and this
made delegation of responsibility and
communication easier and more effective.
9. Unity of direction
It was also seen in practice when all
sales representative of AYS were
given individual targets of sales to
complete an overall targets of sales
the company wished to achieve.
10. Remuneration
Principle of remuneration was seen in practice
at AYS where all sales representatives were
paid a fair salary with a commission on each
sales. At rocket sales, however, since the firm’s
partners were the only employees, whatever
profits the firm made was equally divided
amongst them all.
11. Scalar chain
When an established organizational
structure, AYS puts into effect the
principle of scalar chain. On the other
hand, with only five people in the firm,
Rocket sales corporation has a flexible and
decentralized organizational structure.
12. Equity
The principle of equity was being
practiced in Rocket Sales Corporation,
where, unlike AYS, all employees treated
each other equally regardless the kind of
work they did.
13. Initiative
After learning about the unethical
practices of AYS, Harpeet took
the initiative to open his own firm
and became the competitor of
AYS
14. Esprit de Corp
In Rocket sales Corporation, it is seen
that the employees share a good
relationship amongst themselves and
enjoy working together. This is the
demonstration of Esprit de Corp.
