2. Definition of Management
Oxford Dictionary
“ t he process of dealing with or controlling things or people”.
“Management istheartof knowing whatyou wantto do andthenseeing thatitisdone
in thebestandcheapestway”.
F.W.Taylor
“Tomanageisto forecastandto plan,to organize,to command, to coordinateandto
control”.
Henry Fayol
“Management isthecoordination of allresourcesthrough theprocessof planning,
organizing,directingandcontrolling in orderto attainstatedobjectives”.
Behailu Z. (Ph.D. Cand.)
2. Principles and Functions of Management
4. Management is Universal
The principles and techniques of management have universal application. They can be applied
to all types of organizations business, social, educational and religious.
Management is Goal-Oriented
The purpose of management is to achievecertain goals. The main objective of
management is to maximize efficiency and economy of human efforts.
Management is Social Process
Management is basically asocial activity because management is mainly related with the
human activities of an enterprise.
ManagementisMulti – Dimensional Disciplinary
Management contains principlesdrawnfrom many socialscienceslike sociology
,economics
etc.
2. Principles and Functions of Management
Behailu Z. (Ph.D. Cand.)
Characteristics of Management
5. Management is Group – Activity
It is concerned with group efforts becauseit createseffectivecooperation among
persons working togetherin agroup.
Management is Dynamic Function
Management involves creatingan internal environment or conditions, whereby
people areableto perform their tasks efficiently.
M anagement isa continuously growing process.
Management is Intangible
Themanagement isnot atangible activity of businessenterprise.
It is the direction and control of the business activity which can be feeled but can
not beseen ortouched.
2. Principles and Functions of Management
Behailu Z. (Ph.D. Cand.)
Characteristics of Management
7. 2. Principles and Functions of Management
Behailu Z. (Ph.D. Cand.)
Principles of Management
8. Division of Work
implies that every employee should be assigned only one type of work.
It aims at the maximum production with least efforts.
It also helps in securing the maximum efficiency.
Centralization and Decentralization
Centralization means concentration of authority at one placeor at one level in
the organization.
Decentralization means dispersal of authority to the lower levels in the
organization.
A proper balance between centralization and decentralization must be
maintained.
2. Principles and Functions of Management
Behailu Z. (Ph.D. Cand.)
Fayol’s Principles of Management
9. Authority and Responsibility
Authority is the right to give orders to the subordinates.
Responsibility means the duty which the subordinates is expected to perform.
Sufficient authority should be delegated to asubordinate to enable him to discharge
his responsibility.
Scalar Chain
relatedto the arrangement of things and the placement of people.
It emphasizesthat theremust beaclearline of authority right from the top
management to the bottom.
This is necessary so that every employee knows their immediate senior also
they should be able to contact any, if needed.
2. Principles and Functions of Management
Behailu Z. (Ph.D. Cand.)
Fayol’s Principles of Management
10. Discipline
getting obedienceto rules and regulations of an organization.
In the absenceof disciplinetheorganization cannot succeed.
Disciplinedepends upon effectiveleadership.
Order
Order means everything should bein a proper arrangement.
There should beaplaceof everything and everything should bein its place.
Similarly, thereshould be right man in the right place.
The positive atmosphere in the workplace will boost more positive
productivity.
2. Principles and Functions of Management
Behailu Z. (Ph.D. Cand.)
Fayol’s Principles of Management
11. Unity of Command
an employee should have only one boss and follow his
command.
If an employee has to follow more than one boss, there
begins a conflict of interest and can create confusion.
Equity
Personnel must be treated with kindness and equity if loyalty is expected of them.
This principle does not mean that all the employees of the organization areequal
and must betreatedand paid equal.
It’s the responsibility of a manager that no employees
face discrimination.
2. Principles and Functions of Management
Behailu Z. (Ph.D. Cand.)
Fayol’s Principles of Management
12. Unity of Direction
Whoever is engaged in the same activity should have a unified goal.
This means all the people working in a company should have one goal and
motive which will make the work easier and achieve the set goal easily.
It isrelatedto the functioning
Stability of Personnel
An employee delivers the best if they feel secure in their job.
It requiresthattheremust bestability in theserviceof theemployees.
The employees should not betransfer from one placeto another very quickly
in business activities because it lower the progressof activates.
It is the duty of the management to offer job security to their employees.
2. Principles and Functions of Management
Behailu Z. (Ph.D. Cand.)
Fayol’s Principles of Management
13. Renumeration of Employees
The remuneration of personnel must be fairand satisfactory
.
The wagesystem must motivate the employees, to do better and more and may ensure safety
and security of the employees.
it should be according to an individual’s efforts they have put
forth.
Esprit de Corps
This principlemeans theharmony and understanding among thepersonnel.
Themanagement and workers must work together asateamfor theaccomplishment of the
targets of the enterprise.
Developing trust and mutual understanding will lead to a
positive outcome and work environment.
This principleisbased upon two theories – “
union isstrength”and “
unity of thestaff
2. Principles and Functions of Management
Behailu Z. (Ph.D. Cand.)
Fayol’s Principles of Management
15. process of choosing appropriate goals and actions
to pursue and then determining what strategies to
use, what actions to take, and deciding what
resources are needed to achieve the goals.
2. Principles and Functions of Management
Behailu Z. (Ph.D. Cand.)
Functions of Management
16. process of establishing worker
relationships allows workers to work
together to achieve their organizational
goals.
Deciding where decisions will be made
Who will do what jobs and tasks
2. Principles and Functions of Management
Behailu Z. (Ph.D. Cand.)
Functions of Management
17. Recruiting and selecting employees
for positions within the company
(within teams and departments).
2. Principles and Functions of Management
Behailu Z. (Ph.D. Cand.)
Functions of Management
18. This function involves articulating a vision,
energizing employees, inspiring and
motivating people using vision, influence,
persuasion, and effective communication
skills.
2. Principles and Functions of Management
Behailu Z. (Ph.D. Cand.)
Functions of Management
19. Monitoring progress towards goal achievement and taking
corrective action when needed.
Evaluate how well you are achieving your goals,
improving performance, taking actions.
Put processes in place to help you establish
standards, so you can measure, compare, and make
decisions.
2. Principles and Functions of Management
Behailu Z. (Ph.D. Cand.)
Functions of Management
20. 2. Principles and Functions of Management
Behailu Z. (Ph.D. Cand.)
Levels and Areas of Management
54
Middle managers
Areas of Management
Levels of Management
First-line managers
Top managers
21. 2. Principles and Functions of Management
Behailu Z. (Ph.D. Cand.)
Levels and Areas of Management
22. 2. Principles and Functions of Management
Behailu Z. (Ph.D. Cand.)
Levels and Areas of Management
