Principles of management is a broad and general guideline for managerial decision-making and behavior of employees towards the organization. At the most fundamental level, management is a discipline that consists of a set of five general functions: planning, organizing, staffing, leading, and controlling.

1. B.E. (MECHANICAL ENGINEERING)
EIGHTH SEMESTER
BEME801T: INDUSTRIAL MANAGEMENT
Prof. Avinash R. Mankar
(NAAC Accredited)
Dahegaon, Kalmeshwar Road, Nagpur
GURU NANAK INSTITUTE OF TECHNOLOGY

2. UNIT – I
Principles of management, Concepts of management, development of scientific management,
principles of Fredric W. Taylor, principles of Henry Fayol & functions such as planning,
organizing, staffing, leading, motivating, communicating, controlling, decision making, span of
control, delegation of authority.
UNIT – II
Personal management, meaning, functions of personal management, manpower planning,
selection, arbitration, collective bargaining, wages & salary administration, labor welfare, training,
trade unions, Trade union act & Labor Legislation.
UNIT – III
Marketing management, Definition, selling & modern concept of marketing, market research,
marketing mix, new product development, product life cycle, new product launching, sales
promotion, pricing, channels of distribution, advertising, market segmentation.
RASHTRASANT TUKDOJI MAHARAJ NAGPUR UNIVERSITY, NAGPUR
SYLLABUS

3. UNIT – IV
Financial management, Sources of finance, financing organizations, types of capital, elements of
costs & allocation of indirect expenses, cost control, break even analysis, budgets & budgetary
control, equipment replacement policy, make or buy analysis, balance sheet, ratio analysis, profit &
loss statement.
UNIT – V
Plant management, Plant location, plant layout, Material handling objectives, principles &
selection of material handling equipment's types. Industrial safety, causes & cost of accidents,
accident biorhythms, safety programs, job, batch & process type of production.
UNIT – VI
Recent treads in production and operation management like Lean Manufacturing, World Class
Manufacturing, Retail Management, Supply Chain Management, Value Engineering, Re-
engineering, Reverse Engineering, Business Process Re-engineering, Quality Circle, Just in
Time (JIT), Kaizen, Poka Yoke.

4. Management is a universal phenomenon. Every individual or entity requires setting objectives, making plans,
handling people, coordinating and controlling activities, achieving goals and evaluating performance directed
towards organizational goals. These activities relate to the utilization of variables or resources from the
environment − human, monetary, physical, and informational.
Management is “The art of getting things done by a group of people with the effective utilisation of available resources”.
Peter F. Drucker defines management as, “Management is an organ; organs can be described and defined only through
their functions.”
According to Henry Fayol, “To manage is to forecast and plan, to organise, to compound, to coordinate and to control.”
According to F.W. Taylor, “Management is the art of knowing what you want to do and then seeing that it is done in the
best and cheapest way.”
According to Koontz and O’Donnel, “Management is the creation and maintenance of an internal environment in an
enterprise where individuals, working in groups, can perform efficiently and effectively towards the attainment of
group goals. It is the art of getting the work done through and with people in formally organised groups.”
UNIT NO 1 PRINCIPLES OF MANAGEMENT

5. The concept of management was developed from the days of Adam. Management is required where a group of people are
working to achieve any objective.
Henry Fayol gave the management theory in (1916) which was based on his experiences in a mining company. This
management theory was compiled in a book named “The General and Industrial Management”.
He classified the elements of management into five categories as mentioned below:
• Planning ,• Organizing,• Commanding,• Co-ordination,• Control
Other important contribution was made by Frederick Winslow Taylor (19th century) who was the father of Scientific
Management. He gave the following principles of Scientific Management:
• Science is not a rule of thumb: Where the worker is allotted fair work, standardized and proper system of payment
which discarded the old method of working.
• Harmony in group action: There should be peace and friendship in the group action and any kind of dissatisfaction
should be eliminated.
• Co-operation: There should be cooperation between management and workers; this is achieved by mutual
understanding and change in thinking.
• Maximum output: It is achieved through division of work and responsibility by the management and workers together.
• Improvement of workers: Workers should be well examined on the physical, educational and psychological parameters
and should be provided with the training for their growth.
• Some of the other major works in the management field were done by Peter F. Drucker, Max Weber, George
Elton Mayo, Mary Parker Follett, Henry L. Gantt etc.
Scientific Management
Concept of Management

6. Characteristics of Management
• management is an art as well as a science
• it is an activity of effective utilization of available resources
• it is a continuous process
• each activity in management is directed towards the achievement of pre-determined objectives
• it is a group of organized activities
• it is a factor of production
• it is a system of activity
• it is a discipline
• it is a purposeful activity
• it is a distinct entity
• it aims at maximizing profit
• it helps in effective decision making
• it is a profession
• the principles and practices of management have universal applications
• it is dynamic in nature
• it is needed at all levels
• it is the function of executive leadership

7. Scientific Management by Fredric W. Taylor
1. Science, not the Rule of Thumb-
This rule focuses on increasing the efficiency of an organisation through scientific analysis of work and not
with the ‘Rule of Thumb’ method. Taylor believed that even a small activity like loading paper sheets into
boxcars can be planned scientifically. This will save time and also human energy. This decision should be
based on scientific analysis and cause and effect relationships rather than ‘Rule of Thumb’ where the decision
is taken according to the manager’s personal judgement.
2. Harmony, Not Discord-
Taylor indicated and believed that the relationship between the workers and management should be cordial
and completely harmonious. Difference between the two will never be beneficial to either side. Management
and workers should acknowledge and understand each other’s importance. Taylor also suggested the mental
revolution for both management and workers to achieve total harmony.

8. 3. Mental Revolution-
This technique involves a shift of attitude of management and workers towards each other. Both should
understand the value of each other and work with full participation and cooperation. The aim of both should
be to improve and boost the profits of the organisation. Mental Revolution demands a complete change in
the outlook of both the workers and management; both should have a sense of togetherness.
4. Cooperation, not Individualism-
It is similar to ‘Harmony, not discord’ and believes in mutual collaboration between workers and the
management. Managers and workers should have mutual cooperation and confidence and a sense of
goodwill. The main purpose is to substitute internal competition with cooperation.
5. Development of Every Person to his Greatest Efficiency-
The effectiveness of a company also relies on the abilities and skills of its employees. Thus, implementing
training, learning best practices and technology, is the scientific approach to brush up the employee skill. To
assure that the training is given to the right employee, the right steps should be taken at the time of selection
and recruiting candidates based on a scientific selection.

9. Principles of Henry Fayol
1. Division of Work-
Henri believed that segregating work in the workforce amongst the worker will enhance the quality of the
product. Similarly, he also concluded that the division of work improves the productivity, efficiency, accuracy
and speed of the workers. This principle is appropriate for both the managerial as well as a technical work level.
2. Authority and Responsibility-
These are the two key aspects of management. Authority facilitates the management to work efficiently, and
responsibility makes them responsible for the work done under their guidance or leadership.
3. Discipline-
Without discipline, nothing can be accomplished. It is the core value for any project or any management. Good
performance and sensible interrelation make the management job easy and comprehensive. Employees good
behaviour also helps them smoothly build and progress in their professional careers.
4. Unity of Command-
This means 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.

10. 5. Unity of Direction-
Whoever is engaged in the same activity should have a unified goal. This means all the person working in a
company should have one goal and motive which will make the work easier and achieve the set goal easily.
6. Subordination of Individual Interest-
This indicates a company should work unitedly towards the interest of a company rather than personal interest.
Be subordinate to the purposes of an organization. This refers to the whole chain of command in a company.
7. Remuneration-
This plays an important role in motivating the workers of a company. Remuneration can be monetary or non-
monetary. However, it should be according to an individual’s efforts they have made.
8. Centralization-
In any company, the management or any authority responsible for the decision-making process should be neutral.
However, this depends on the size of an organization. Henri Fayol stressed on the point that there should be a
balance between the hierarchy and division of power.
9. Scalar Chain-
Fayol on this principle highlights that the hierarchy steps should be from the top to the lowest. This is necessary
so that every employee knows their immediate senior also they should be able to contact any, if needed.

11. 10. Order-
A company should maintain a well-defined work order to have a favourable work culture. The positive
atmosphere in the workplace will boost more positive productivity.
11. Equity-
All employees should be treated equally and respectfully. It’s the responsibility of a manager that no
employees face discrimination.
12. Stability-
An employee delivers the best if they feel secure in their job. It is the duty of the management to offer job
security to their employees.
13. Initiative-
The management should support and encourage the employees to take initiatives in an organization. It will
help them to increase their interest and make then worth.
14. Esprit de Corps-
It is the responsibility of the management to motivate their employees and be supportive of each other
regularly. Developing trust and mutual understanding will lead to a positive outcome and work
environment.

12. Functions of Management
 Planning: It refers to the future course of action and is a primary function of management.
 Organizing: It is the distribution of work in a group or a section for effective performance.
 Staffing: It consists of activities related to the selection and placement of right people for right jobs.
 Directing: This is a process where the manager influences the work of his sub-ordinates. It includes guidance,
supervision and motivational aspects of the employees.
 Coordinating: It is a process of synchronizing activities of various people in the organization in order to achieve
goals.
 Motivating: Motivation is one of the key factors for the speedy and effective performance of employees which is
taken care of by resourceful leaders.
 Controlling: It deals with the process of verifying that the achieved goals are in order with the pre-planned
objectives. In case of deviation corrective measures are taken.
 Innovation: It includes developing new services, techniques, products and so on to cater to the changing need of
the consumers and the market.
 Representation: It is a function where a manager has to deal with the customers, suppliers, government officials,
banks, financial institutions, trade unions etc. as a representative of the company.
 Decision-making: It helps in functioning of organizations as every employee has to take certain decisions on
everyday basis.
 Communication: It refers to the exchange of information for the frictionless regulation of job and coordination of
the activities.