THE SYSTEM OF MANAGEMENT - CHAPTER I

ORORORAGNIADING
THE PLATE FORM OF LEADERS
PLANNING, ORGANIZING, STAFFING, DIRECTING, CONTROLLING
Year 2016
WRITER:
SYED AQEEL RAZA
Master of Commerce & Arts

P R E F A C E
The role of management in business is started from the first day of business or on
coming to the idea of doing business. A man who wants to do business thinks essentially
how to plan, to organize, to hire staff, to give direction and to control activities in
business under changeable social environment then he has to form a managerial
structure in different areas in order to get desired results go in profit.
Unfortunately, our here there is no more attention on the education of management
because of this the management moves around a man who does business knowing him
all in one and who directs to his managers whatever he wants in his and/or in business
interest.
If it is seen then the experiences of businessmen are made the cause of making the skill
of management who applied right or wrong their ideas and directions to get desired
results and it will not be saying wrong that experiences and ideas of them in controlling
business activities created principles and gave thinkers.
In the world, the education of management is being felt necessary and every country
making institutions for providing the managerial skill to organizations in order to
increase business volume when in our country the ratio of education in management is
equal to nothing.
This is right that the progress of any country depends on business and business requires
managerial system; the system is made on principles and principles that are suitable for
workmen not for trouble them in getting results.
In my book, I tried my best to point out the principles of management and troubles of
managers in handling managerial matters in any organizations whatever I have seen,
listened and read which I think may differ or agree to others with their thinking.
Writer

I N T E N T I O N
My intention is writing this book “The system of Management” is
to give clear concept on management between employer and
employee in easy understanding. I think this work is difficult but
not to write something you know, see, listen and read. This is a
separate talk that some topics are not described or under-
described but can be improved later and I know only that pen off
whatever you know least you should be unknown and a word
helps anyone is reward indeed. According to this theory, I present
a little struggle of mine in shape of this book which requires
friends’ insertion or improvement to this noble cause.
The topic of management is such a system which will require
many more thinkers in every future for overcoming the changing
modes of human’s nature.
I further intend to add or remove thinking and errors as and when
I know because of beating hand and foot alone in writing.
The page is awaited to value the comment and material of well-
wishers to this book.
WRITER

WRITING IN FOCUS
The knowledge, education, work experience in different
fields and thinking mind are the cause of writing
something over subjects below creatively and skillfully.
THE SYSTEM OF ACCOUNTING
Volume I consists of five chapters; introduction to
accounting, affects on business transactions, accounting
cycle, accounts making and question and answer.
Volume II consists of six chapters named; the mode of
transaction and its drivers, journal making, ledger
making, trial balances, financial statements and
questions & answers.
Volume III is in writing and written chapters; Accounting
for Debt, Budgeting, Accounting for employment,
Depreciation, the basis of accounting, accounting for
purchases,

THE SYSTEM OF MANAGEMENT
The book named “The System of Management”
represents planning, organizing staffing, directing and
controlling.
The book also describes on principles from experts and
mine and requires new thinking and materials for further
improvement.
APPLIED WORDS
The book Applied Words is in writing which will have
contents Idioms, Phrases, English Grammar and Proverbs
enlightens the society's imbalances and wise thinking
under writer's proverb based on " A word helps anyone
is reward indeed.

FATHER OF MODERN MANAGEMENT
Henri Fayol (1841-1925) Turkey
Henri Fayol was a French coal mine engineer and director of mines and
management theoretician. His scientific management theory formed the
basis of business management. He is the founder of the fourteen principles
of management and the five functions of management and has written
books on management based on his own management. In 1916, he
published his experiences in the book “Administration Industrielle et
Generale (General and Industrial Management).

FATHER OF SCIENTIFIC MANAGEMENT
Frederick Windslow Taylor (1856-1915) Pennsylvania
Taylor was an American Mechanical Engineer improved industrial efficiency giving his
efficiency techniques in his book “The Principle of Scientific Management”.
Taylor’s scientific management consisted on four principles;
- Replace working by “rule of thumb”, or simple habit and common sense, and instead
use the scientific method to study work and determine the most efficient way to
perform specific tasks.
- Rather than simply assign workers to just any job, match workers to their jobs based
on capability and motivation, and train them to work at maximum efficiency.
- Monitor worker performance, and provide instructions and supervision to ensure
that they are using the most efficient ways of working.
- Allocate the work between manager and workers so that the managers spend their
time planning and training, allowing the workers to perform their tasks efficiently.

CHAPTER I
TABLE OF CONTENTS: PAGE NO:
The system of management - 1 - 2
Definition of management 3 - 5
Science and Management 6 - 7
Science Arts & Management 7 -
Politics and management 8
The need for principles of management 9
The need of an organization 9
The system of management (Urdu) 10
Henri Fayol 11
Fayol’s 14 principles of management 11
Division of work 12
Authority & responsibility 2 13 -14
Discipline 3 14
Unity of command 4 14
Unity of direction 5 15
Subordination of Individual Interest to mutual interest 6 15
Fair remuneration 7 16
Centralization 8 17
Scalar chain 9 18
Order 10 18
Equality 11 19
Stability of tenure 12 19
Initiative 13 20
Team Spirit 14 20
FIVE PRINCIPLES FOR MANAGEMENT 21
Appreciation 22
Common progress 23
Impersonal thinking 24
Humiliation 25
Satisfaction 26
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>

THE SYSTEM OF MANAGEMENT-1
THE SYSTEM OF MANAGEMENT
Everything is moving under system; the system has principles which control
the system like pillar to roof and the principles describes policies like root
to fruit and policies make procedures to walk and to reach at goal then
every systemof human’s nature comes under management which is the art
of taking work with human’s nature in getting desired results.
There are two types of sciences; exact science and inexact science, exact
science involves in material and material may be fixed by principles and
formulae because of which the knowledge which discusses with material is
science and the knowledge which discusses to living things cannot be exact
because of which the human’s nature, habit, thinking, style of talking, view
of examining is changeable and does not match each other because of the
reason any talk or any example does not fit on each other and like this
today’s talk does not become example for next day; next day will have new
things, new thinking, new knowledge and new environment.
The management involves human resources to get the desired result in an
organization and can say it the social knowledge or social sciences.
In order to perform any work in best possible manner, the management is
needed based on planning, organizing, staffing, directing and controlling
and which can be consisted on one person in small organization and more
than one in large organization and those persons are performing it called
managers of their area which is given to them.

Management represents the group of managers who make
polices and gets them acted upon and they should have no
differences in principles and policies. In a case of any difference
must be solved mutually.
The management requires persons good in education, experience,
good character, creative mind and the person can get destination
satisfactorily.
The management is a way to achieve result with a good line of
action under the framework of policies, processes, and
procedures used by the management.
People have been managing work for hundreds of years but from
the time of Fayol and Taylor, who gave principles to modern
management and scientific management which made the cause of
further progress in management.
We owe much of our understanding of managerial practices to
the many theorists, and businessmen based on practices and
experiences who tried to understand how best to conduct
business.
The system of management moves around social actions and policies.

DEFINITION OF MANAGEMENT
The management is the social knowledge based on Planning, organizing,
staffing, directing and controlling by which an entity achieves smooth
working and reaches at given goal with the result of the common struggle
of the management group.
The experts of management define it that;
- “Management is an art of knowing what is to be done and seeing that it
is done in the best possible manner.”(Planning & Controlling) F.W.
Taylor (father of scientific management)
- Management is to forecast, to plan, to organize, to command, to
coordinate and control activities of others. Henri Fayol (father of
modern management)
- Management is the process by which co-operative group directs actions
towards common goals.
Joseph Massie
- Management is the process by which managers create, direct, maintain
and operate a purposive organization through systematic, coordinated
and cooperative human efforts.
McFarland

- Management is the coordination of all resources through the process of
planning, organizing, directing and controlling in order to attain stated
goals.
Henry Sisk
- Management is a social and technical process that utilizes resources,
influence human action and facilitates changes in order to accomplish
an organization’s goals.
Tho Harmann, William Scott
- Management is the art of applying social knowledge under changing
situation to achieve goal following management principle. (Writer)
D.S. Kimball says “management embraces all duties and functions that
pertain to the initiation of an enterprise, financing the asset, the
establishment of all major policies, the provision of all necessary
equipment, the outline of the general form of organization under which the
enterprise is to operate and the selection of the principal officer”.
The following requirements for establishing of an organization are included
in management;
- Initiation of an enterprise
- Financing the asset
- Establishment of all major policies
- The provision of necessary equipment
- The outline of the general form of organization
- Selection of the principal officer

We concluded from the above view point of view on management
that
- The management concerns with a party, not with one person.
The objective is an essential element for management.
- The management has a close connection with party’s
objectives.
- The management is responsible for getting the decided and
prominent objective.
- The success of management is to get the desired result
successfully.
- The secret to the success of a manager is to take works others
under particular objective.
- Management is a function or entity.
- The management is a social way of getting the desired result
through planning and directing.
In the nutshell, the management does plan, to organize, to hire
staff, to direct and to control human activities and to initiate an
enterprise, to provide finance, to make policies, to select staff and
to provide materials are also the responsibilities of the
management. Hence, the management involves in all physically
and mentally.
The art of taking work with human’s nature is management.

SCIENCE AND MANAGEMENT
The science bases on perfect knowledge require experiment and
observation but discuss to the material. The new thing which come into
exist is the result of experiment and observation which is because of
knowledge when in management, knowledge takes work with person and
persons to material hence science and management requires knowledge
but difference is that science has perfect knowledge and the management
has changeable knowledge according to the situation but is moving under
principle to achieve result.
The consideration and thought of management were not satisfactory which
left it back with other sciences and this knowledge is supposed incomplete.
Like other sciences, its principles cannot match or same in any entity or in
any place.
The management is also science but neither visible nor complete like other
scientific knowledge and the supposition of its visibility and completion is
zero because its principles create different results in different entities, in
different environment and in different times because of;
- Here is no laboratory for testing the principle of management.
- In management, the inclusion of man’s action is therein widely.
- The thought and imagination in management are of immediately.
- The management is based on imaginations and thoughts.
- The existing of management is old as the man intends to do it.
- In scientific knowledge, it is said by convincing that if a chemical is mixed
with specific quantity and in an environment that the required result will
obtain but the knowledge of management differ it.

From the above discussion, we can say that the management is an
inexact science because of the reason that it depends on thoughts
and imagination, man’s action and have no exact principle or
formula.
The management is a social science.
SCIENCE, ARTS, AND MANAGEMENT
The science means knowledge discusses on exact principle or
formula but art is the way of getting the desired result through
the application of skill.
Terry says “art is the bringing out of the desired result through the
application of skill.
We can say that the management involves science and art and
both are not separate but essential to each other. The art helps
management to get the best result through the application of skill
and science is the knowledge of understanding and viewing the up
and down of human’s nature which we can say it to social science
or social knowledge.
The mixture of science and arts is the essence of management.

POLITICS AND MANAGEMENT
The politics is also a science but inexact and an organization like
management has principles which are the democracy, equality,
diversity, security, creativity, self-determination,
interdependence, justice, peace, ecology, and economy.
The management and politics have a close relationship and both
work on human’s nature and mentality. In politics, the politician is
like as a manager of his area assigned to work and get desired
result according to party’s mandate and like this in management,
the manager works on the principles made for getting the desired
result of the organization.
Everything has two sides; positive and negative, and principles are
made for positive for the welfare of human being but negative
works above principles and like this good management and
mismanagement, true politics and hypocritical politics are the
positive and negative sides.
The leadership is the part of politics and management.

THE NEED FOR PRINCIPLE OF MANAGEMENT
If we consider, in doing anything in life, we have to walk on principles some
of the perfect nature, some of the temporary nature, some of the time
base nature and often we have to break them under changing situation at
the movement for life.
Like this, in business, the management is needed and on acting on the
principles of management, an organization can achieve the desired result in
business following planning, organizing, staffing, directing and controlling.
The principles are made for life but life is not for it.
THE NEED OF AN ORGANIZATION
Organization means to make arrangements and arrangements have ways
and methods which require managers and staff if they are good then the
rules and regulations of any institution can be stable for every place and
the work of an institution walks in better ways.
We can say that organization is made by category wise working persons
and is necessary for every institution like blood in the body and from which
the desired results of an institution are obtained.
In order to get the desired result, an organization consists of ways and
methods for managers and officers as leaders for his group.
Organization requires management and management requires it too.

HENRI FAYOL
According to Henri Fayol in his book General and Industrial Management (1916), there
are fourteen general principles for management which provide necessary base to
managerial skill and are as useful in today’s practical world as in his time and the
fourteen principles that Fayol concentrated on were;
FAYOL’S 14 PRINCIPLES OF MANAGEMENT
 Divisionof Work
 Authority &Responsibility
 Discipline
 Unity of Command
 Unity of Direction
 Subordinationof individual interests tothe general interest
 Fair Remuneration
 Centralization
 Scalar chain
 Order
 Equity
 Stability of tenure
 Intuition
 Team Sprit

DIVISION OF WORK 1
Fayol directed to use this principle in any kind of work either be
administrative or be technical so that every work could perform more and
more with proficiency and according to this principle the whole work is
divided into small tasks to workmen according to their ability and skill.
The division of work is to divide an organization into departments as
individual entities where a departmental head or manager is assigned to
control activities and submit his reports to his Chief and/or divide working
to workmen division wise according to their knowledge and experience.
A man can be expert in one field but not in all and suppose that if he is
expert in all field will not be able to work in all fields requires assistance
certainly then the division of work increase the proficiency of a man in one
particular field which will give quality to work and the quality of business.
Our here generally in a small organization, this principle of Fayol is being
exploited. A man is used to take work all kind of nature like the jack of all
trades by which the ability of the workman and the quality of work is
decreasing.
Every person must be given work according to his ability and experience.
The division of work is like cities in a country.

AURHORTITY AND RESPONSIBILITY 2
Authority means the right of a superior to give enhances order to his
subordinates; responsibility means an obligation for performance and both
are joined with each other who will have authority will be responsible
definitely for the works which are assigned to him and it requires
subordinate and/or subordinates to complete the assignment.
The authority and responsibility bind managers to take work with their
subordinate in order to complete the task or to keep work free from errors
and for which he haveto organizehis staff, to plan the work how to take, to
give direction and to control expenditure, quality of work, smooth working,
etc. in their areas.
Then we can say that authority and responsibility are the tools in
management which one side gives more or less owner’s right to managers
and on another side bind them to keep work according to the target given.
But in our today’s society or in one man show, the authority goes to owner
and responsibility to managers wherein they have to work on his direction
and have no right to decide, to plan, and to hire staff but on his consent. If
it is seen that the managers who were hired having qualified for the work
and have also experience and qualification in the field but they cannot work
according to their abilities in bindings and because of having no authority,
they have to work like subordinate as they have their assistants for
completing the task and then we can say in this case all are subordinate
except one in one man show.
In this case, the owner comes under clouds in solving small and small
problems which would be solved by the managers for which they assigned
resulting in making the cause of not increasing business volume.
If the managers will apply their skills in their areas according to their mental
abilities, the business will move forward and the owner will come in peace.

This is an important and useful principle of management and cannot be
given to employees and sometimes the relation between management and
employees is badly affected by non-delegation of proper authority.
The authority is the mother of responsibility.
DISCIPLINE 3
Discipline means obedience, proper conduct in relation to others, respect
for authority, etc. and it is an essential element for the smooth functioning
of all organizations.
The discipline is the name of a system of rules for behavior.
UNITY OF COMMAND 4
Unity of command binds subordinates to receive orders and be accountable
to one and only one superior. If an employee receives orders from more
than one superior, it is likely to create confusion and conflict.
The unity of command is concerned with taking orders from one head.

UNITY OF DIRECTION 5
The unity of direction states one head one plan means that all employees
have the same objective must be directed towards the achievement of the
common goal and thus must have one head and one plan.
All activities should be put under one group, there should be one plan of
action for them, and they should be under the control of one manager.
The unity of direction is concerned with the direction to the efforts of the
employee of one division towards the achievement of the objectives of that
division.
The unity in direction retards the way of mismanagement.
SUBORDINATION OF INDIVIDUAL INTEREST TO MUTUAL INTEREST 6
The interests of goals of the organization must prevail over the personal
interests of individuals. Any individual’s interest that conflicts with an
organizational interest must be subordinated to the interests of the
organization. The organization must find ways to reconcile the tension
between individual and organizational interests. Therefore, the
management must put aside personal consideration and put company
objectives firstly.
The common interest is the way of success.

FAIR REMUNERATION 7
The way of paying wages or remuneration should be fair,
reasonable and rewarding of effort as this is the chief
motivation of employees and therefore greatly influences
productivity and because of this workmen get satisfaction
more and more and like this owner generates profit more
and more and business grows.
Money is the thing which man gives after heavy thinking
and wages is the name of money paid against work
decided or undecided because of this government has
made the rule for minimum wages to workmen but
besides this, the matter of wages is made issue among
businessmen.
The way of growing is to take something for something.

Centralization 8
Centralization means that ruling power should be with one man at the top
level of management or central organization that has supreme leadership.
In other words, in centralization, management retains most of the decision-
making authority and in decentralization; decision making is distributed
among all levels of the organization.
The coordination of managers and officers with the center is necessary for
getting desired objectives and far away from center is not in favor of any
business.
In our time it is seeing that the centralization is misleading because of its
own and increasing distance with workmen because of misbehavior,
creating problems, making the horrifying atmosphere, unnecessary
questions and even more this and because of which the desired results
could not be obtained properly.
The best way of carrying near to staff is to appreciate them in their works,
to ignore mistakes of small nature and to educate them on works that
could not become the cause of heartbreaking.
Everything has a center but management is the center itself.

Scalar chain 9
Fayol defines the scalar chain as the chain of supervisors ranging
from the ultimate authority to the lowest rank. An employee
should feel free to contract his supervisor about anything through
the scalar chain.
The chain of superiors from upper to lower level comes under the scalar chain.
Order 10
No work can be done in time and in better ways without order. In
fact, it educates work and workers in any organization.
Social order ensures the fluid operation of a company through the
authoritative procedure. Material order ensures safety and
efficiency in the workplace. The order should be acceptable and
under the rules of the company.
The order makes work in action.

Equality 11
The manager should do justice and equality in taking work
with his subordinates so that the work of his organization
could be with satisfactory and for this, the manager should
be fair and impartial when dealing with employees, giving
equal attention towards all employees.
Equality is near to justice.
Stability of tenure 12
The workers must have the satisfaction that they have
kept for which period could work peacefully. The stability
of tenure increases the capability of workers and the
stability of an organization.
The stability of tenure is the stability of the business.

Initiative 13
Fayol says that the manager should give the chance of working to his
subordinates by themselves which in sometimes they solve problems of
unsolved matters.
The initiative can add strength and generates new ideas for an organization
and on the part of employees is a source of strength for the organization
because it provides new and better ideas.
The intuition is the gift from God.
Team Spirit 14
This refers to the need of managers to ensure and develop morale in the
workplace; individually and communally. Team spirit helps develop and
atmosphere of mutual trust and understanding which helps to finish the
task in time.
The spirit of a group that makes the members wants the group to succeed.

FIVE SOCIAL PRINCIPLES FOR MANAGEMENT
There may be five social principles in management need to
be considered in the process of getting desired objectives
which I want to make the part of this book based on my
study and experience;
- Appreciation
- Common progress
- Impersonal thinking
- Humiliation
- Satisfaction

APPRECIATION
In the process of getting desired objectives, the manpower is
required which is the single source of getting desired objectives
and it is true that all principles and functions of management are
enforceable because of manpower.
Human’s nature requires appreciation, salutation, value, words of
thanks and any good talk. The appreciation can also be orally
wordily and to upgrade, to give value, to give appreciative
credentials, to give a reward, to appreciate before others are the
vital tools of appreciation and in contra if the work of any worker
is overviewed, the destination will be obtained not on time and
loss in gain.
Sometimes, much appreciation weakens the control system
because the person appreciated extraordinarily considers himself
like an owner and does not care about rules and regulations.
Hence, the appreciation must be in work not in personal.
The Appreciation is the vital tool for reaching the goal.

COMMON PROGRESS:
A man who does business and invests capital in the business in anticipation
of getting profit says I shall progress. Is his saying right?
His saying that I shall progress is not right because of the reason that his
money is invested surely in business but he can do nothing in business
along and the manpower should be required to move business activities so
the manpower and his investment are common in the progress of business.
The employees are the source of getting desired objectives following
principles and functions of management.
Therefore, he must say “we shall progress” not in saying but in common in
progress and the objective of progress is to gain and gain must be in
common.
This tool creates enthusiasm in workmen and they work for the
organization as their own. The objectives of the organization will be their
objectives because of common progress.
The slogan “common progress” is the guarantee of success in business.

IMPERSONAL THINKING
Every kind of people’s work in business they belong to the
different tongue, religion and nationality kept under the
theory of need for obtaining objectives of an organization
and besides this in need, manpower is hired from
abroad.
The theory of need creates impersonal thinking, makes
policies above nationality and religion and says all is equal
for obtaining the objectives of the organization.
The business moves with principles and if principles are
made for the different community on the basis of the
tongue, relative, religion, etc. the system of management
will have no meaning.
The personal thinking in business is poison killing.

HUMILIATION
The employee is just like a business partner in obtaining the desired
objectives of an organization. The services of employee and finance of
investor both when to meet then become the cause of gain and gain is the
desired objective of the investor for which all principles and functions of
management work.
Sometimes the attitude of managers with their subordinates is of
humiliation nature even then calling bad names, stand hand, take work
forcibly, threaten to terminate, take extra hours work without payment,
humiliate before juniors and much other cause to do it.
If the worker is humiliated, he will take no interest in the work and will
search other opportunities and because of this, the destination will far talk.
Hence, the humiliation of employees will create mismanagement.
For making desired destination fruitful, the good environmentand the good
personnel are required in business.
The humiliation is the fierce enemy of business.

SATISFACTION
The satisfaction of employee and employer in getting desired objectives is
an essential part of management. The principal wants to get satisfaction in
his objectives which end result of gain obtained passing through functions
and principles of management. During the process of getting desired
objectives, the principal has to face may problems in the matters of social
and financial and up and down in business become the cause of his
dissatisfaction. Like this, the subordinates work for money which satisfies
the need of their own and for working they have to walk on the
principles which are made by the management.
The satisfaction of principal based on gain and subordinates on
emoluments then the subordinates should work and walk according to
principal’s system in achieving the desired result.
The principal should include subordinates in the progress which ends to
gain. The satisfaction does not end to gain but requires mental relaxation to
subordinates in working environment, in medical, in superannuation, in
leaves, in up gradation and work according to ability.
Under this principle, the problems of the employee will be the problem of
employer and objectives of the employer will be the objective of the
employee.
The satisfactionof employee andemployerare the part of good management

Management is an unforeseen force to increase efficiency.
PLANNING
CONTROLLING
DIRECTINGSTAFFING
ORGANIZING

HELP FOR EDUCATION AND NEED
AQEEL RAZA
A/C # “PK60SONE0002302010046285”
SONERI BANK LTD.
Email: aqeelraza@live.com

THE SYSTEM OF MANAGEMENT - CHAPTER I

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