Principles of Management

1. FUNCTION OF
ORGANIZING

2.  It is the process of:
 determining
 grouping
 arranging of various activities
necessary for the achievement of
objectives

3.  It is the process of:
 defining and
 grouping the activities of the enterprise
and
 establishing authority relationship among
them.

4.  Helps management to be effective.
 Helps the organization (company) to grow
and expand.
 Helps in maximum use of resources.
 Helps in development in the lower level of
management.

5.  Identification and Division of
Work
 Based on specialization
 Departmentation
 Based on functions
 Assigning of Duties
 Based on workers’ efficiency
 Establishing Reporting
Relationships
 Who is my boss? To whom should
I report?

6.  Shows all the positions in an organization and
their formal relationships to one another.
 It is illustrated in the form of an
ORGANIZATIONAL CHART.

7.  Centralization
 Concentration of authority of decision
making at higher or top levels of
management.
 Decentralization
 Systematic effort to delegate to the lowest
levels all authority except that which can
only be exercised at central points.

8.  Also called as “Span of Control”.
 It is the span of supervision which depicts
(shows) the number of employees that can be
handled and controlled effectively by a single
manager.
 Types of Span of Control:
 Wide Span of Control – a manager can supervise
and control effectively a large group of persons at
one time.
 Narrow Span of Control – the work and authority is
divided amongst many subordinates and a
manager does not supervise and control a very
big group of people under him.

9.  Authority
 Right to perform or command.
 Responsibility
 Obligation to perform assigned
activities
 Related to ACCOUNTABILITY.

10.  Involves the assignment to others of the
authority for particular functions, tasks, and
decisions.

11.  Employees at all levels in the organization are
given the power to do their job.
 Closely linked to MOTIVATION and CUSTOMER
SERVICE
 Giving authority to make decisions to front-line
staff.
 Encouraging employee feedback.

12.  Formal
 Refers to a structure of well-
defined jobs each bearing a
measure of authority and
responsibility.
 Has a formal set up to achieve
pre-determined goals.
 Informal
 Refers to a network of personal
and social relationships which
spontaneously (naturally)
originates within the formal set
up.
 Emerges from the formal
organization and it is not based
on any rules and regulations.