Principles and Practices of Management
Principles and Practices of Management
Scope of Management refers to all the functional areas where management is applied. It
covers every department and activity needed to run an organization effectively. Broadly, the
scope of management includes:
1. Production Management
Deals with planning, organizing, directing, and controlling production processes to ensure
efficient use of resources.
Activities include:
• Product design – Deciding what to produce
• Plant & building – Infrastructure setup
• Material management – Purchasing and storing raw materials
• Operations – Planning and controlling production
• Repairs and maintenance – Keeping machines in working condition
• Inventory control & quality control – Managing stock and ensuring product
standards
• Research and development (R&D) – Innovating and improving products
Example: A car company like Hyundai manages production from raw materials to final car
assembly, ensuring timely delivery and high quality.
2. Financial Management
Manages money-related aspects of the business to ensure financial health.
Activities include:
• Estimating funds – Predicting how much money is needed
• Source of funds – Arranging capital (loans, shares, etc.)
• Utilization of funds – Using money wisely for operations
• Allocation of funds – Distributing money to different departments
• Administration of earnings – Profit usage, reinvestment, or dividend payout
Example: A finance manager at Infosys ensures money is allocated for salaries,
investments, and expansion without waste.
3. Marketing Management
Focuses on selling the product or service and satisfying consumer needs.
Activities include:
• Marketing research – Understanding customer needs
• Product development – Creating products that match demand
• Pricing – Fixing price strategically
• Distribution – Ensuring goods reach the right place on time
• Promotion – Advertising and branding
Example: Coca-Cola’s marketing team studies trends, promotes the brand, and ensures the
drink is available in every region.
Conclusion:
The scope of management is vast and covers all departments that are essential for
running any organization—whether it is business, education, hospital, or
government. Every function—production, finance, marketing, and human resources—
requires effective management for success.
Importance of Management(Short)
2. Increase in Efficiency
By using resources wisely (like time, money, manpower), management reduces wastage and
increases productivity.
3. Economic Growth
Effective management helps businesses grow, which boosts production, income,
employment, and the economy overall.
4. Human Development
It trains, motivates, and develops employees, helping them reach their potential and
contribute more meaningfully.
6. Development of Society
By creating jobs, offering quality products/services, and promoting fairness, management
contributes to societal welfare.
Management ensures minimum wastage and maximum use of resources like materials,
machines, and manpower.
9. Brings Innovation
Encourages creativity and innovation by guiding employees and investing in new ideas,
products, and processes.
Meaning: Management unites the efforts of individuals and directs them toward common
organizational objectives.
Example: In a construction project, engineers, architects, workers, and suppliers all work
under the manager’s guidance to complete the building on time.
2. Increase in Efficiency
Meaning: Management ensures that resources are used properly without wastage, leading
to maximum output with minimum input.
Example: A manufacturing manager implements automation to increase daily output and
reduce labour costs.
3. Economic Growth
Meaning: Efficient management increases production and profits, which helps the
economy grow through taxes, employment, and investment.
Example: Reliance Industries expands to new markets under strong management, creating
more jobs and contributing to GDP.
4. Human Development
Meaning: Management develops the potential of employees through training, motivation,
and career growth opportunities.
Example: Infosys provides regular upskilling programs to its employees, improving their
skills and promoting them to higher roles.
6. Development of Society
Meaning: Management ensures corporate social responsibility (CSR) by contributing to the
welfare of society.
Example: TATA Group provides education, clean water, and healthcare facilities in rural
areas under its CSR initiatives.
7. Optimum Utilization of Resources
Meaning: Management ensures no resource is wasted—every rupee, machine, and person is
used effectively.
Example: Zomato uses data analytics to optimize delivery routes, saving fuel and time.
Conclusion:
Management plays a vital role in every organization — from achieving goals to driving
innovation and economic growth. It ensures that resources are used wisely, people are
motivated, and organizations can grow, survive, and contribute to society.
Principles of Management
Meaning:
Principles of management are basic guidelines for decision-making and behaviour of
managers. They help in efficient planning, organizing, leading, and controlling of
organizational activities.
1. Division of Work
Example: A team leader can assign tasks but is also responsible for team performance.
3. Discipline
Employees must obey rules and show respect to the organization. Discipline results from
good leadership and clear agreements.
4. Unity of Command
Each employee should get orders from only one superior to avoid confusion and conflict.
Example: If an employee reports to both the HR head and Finance head, it leads to
confusion.
5. Unity of Direction
The Unity of Direction Principle states that all units of an organization should follow
the same objectives through a coordinated and focused effort.
7. Remuneration
Employees should be fairly paid according to their work and contribution as this is the chief
motivation for employees.
Example: Bonuses, fair wages, and recognition improve motivation.
8. Centralization
There should be a balance between central control (top management decisions) and
decentralization (employee involvement).
Example: A school principal may make major decisions, but teachers can decide how to
teach.
9. Scalar Chain
There should be a clear line of authority from top to bottom.
Example: CEO → Manager → Team Leader → Worker
Also includes Gang Plank: a shortcut allowed for urgent communication.
10. Order
Everything and everyone should be in their proper place.
Example: Files in filing cabinets, tools in toolkits, and people in suitable roles.
11. Equity
Managers should treat all employees fairly with kindness and justice.
Example: No bias in promotions, equal opportunities for all.
13. Initiative
Employees should be encouraged to take initiative and try new ideas.
Example: A junior staff member suggests a cost-saving idea and is appreciated.
Conclusion:
Fayol’s principles are universal, flexible, and practical. They guide managers in running
organizations smoothly, improve discipline, coordination, and employee satisfaction.
Planning
Planning is the primary step in the management process. It refers to deciding in advance. It
involves setting objectives, forecasting future conditions, and deciding the best course of
action to achieve organizational goals. It gives direction and reduces uncertainty.
Organizing
Organizing is the process of arranging resources and activities in a structured way to
accomplish the plans. It includes identifying tasks, grouping them, assigning responsibilities,
and allocating authority to ensure coordination. Establishing horizontal and vertical
authority relationship.
Staffing
Staffing involves recruiting, selecting, training, and developing the people required for the
organization. It ensures that the right people are in the right roles to achieve maximum
efficiency and productivity.
Directing
Communication
Communication is the lifeline of management. It ensures that information flows freely
between managers and employees. Effective communication keeps everyone informed,
clarifies doubts, encourages feedback, and supports decision-making. Whether it's giving
instructions, listening to concerns, or sharing ideas, communication helps the organization
function smoothly.
Controlling
Controlling involves monitoring and evaluating actual performance against planned
objectives. It ensures that everything is going as per plan and, if not, corrective actions are
taken to stay on track.
Here are the 5 Main Steps of the Management Process explained simply with emojis:
Planning
Thinking in advance about what to do, how to do it, and when to do it.
It sets goals and prepares a roadmap to achieve them.
Organizing
Staffing
Recruiting, selecting, and training the right people for the right jobs.
Ensures the organization has skilled and motivated employees.
Directing
Controlling
Communicating
Management is a cycle!
Once you control and evaluate, you go back to planning again for future improvements.
Example: Instead of each worker using a different method to lift boxes, management
should study the best posture, speed, and technique, then train all workers in that method.
Key Point: If managers treat workers fairly and workers trust management, then the
organization will run smoothly and productively.
Key Point: A well-trained and happy worker will work faster, better, and stay longer in
the job, benefiting both employee and employer.
Key Point: Trust, teamwork, and mutual benefits must replace competition and
complaints.
Conclusion:
Taylor's scientific management is all about efficiency, cooperation, and improvement.
These principles changed how organizations are managed even today and form the base for
modern management practices.
1. Time Study
Time study involves measuring the time taken by a skilled worker to perform a particular
job under normal working conditions. A stopwatch is used to record the time for each
element of a task. The goal is to set a standard time for completing that task.
• It helps in setting performance standards, planning work, and calculating wages.
• For example, if a worker takes 10 minutes to pack a box, then that becomes the
standard for all.
2. Motion Study
Motion study analyzes the movements involved in doing a job—like bending, lifting, and
reaching. The idea is to eliminate unnecessary or unproductive motions to make the work
easier and faster.
• It increases efficiency and reduces fatigue.
• For instance, rearranging tools in a workshop so that workers don’t have to walk long
distances repeatedly.
This technique involves planning the tasks scientifically instead of relying on trial and
error or personal judgment. It includes determining:
• What work is to be done,
• How it is to be done,
• When it should be done,
• And by whom.
It ensures a systematic approach to work with clear instructions and minimal confusion,
improving overall productivity.
Sure! Here's a detailed explanation of Functional Foremanship, with each side heading
presented as a paragraph, especially suitable for [Link] students:
Introduction
Functional Foremanship is a concept developed by F.W. Taylor, the father of scientific
management. It aims to increase efficiency by dividing the work of supervision among a
group of experts rather than assigning all responsibilities to a single foreman. According to
Taylor, no single person can be an expert in all aspects of work, so specialized foremen
should supervise different functions. This system is especially useful in large factories where
both planning and execution need to be handled separately for better productivity and
control.
🗂 Planning Department
The Planning Department is responsible for all the work that needs to be done before actual
production begins. It focuses on preparing instructions, determining the best way to perform
the task, setting timelines, and ensuring discipline. There are four foremen under this
department:
• Route Clerk decides the path that the raw material or job will follow through the
factory.
• Instruction Card Clerk prepares detailed written instructions on how each job is
to be carried out.
• Time and Cost Clerk determines the time each task should take and estimates the
cost of completion.
• Disciplinarian ensures workers follow company rules, maintain punctuality, and
avoid absenteeism.
Together, these foremen ensure the work is well-organized and ready before it reaches the
workers.
🛠 Production Department
The Production Department works on the execution side, directly dealing with the workers
and machines. It ensures the work is carried out smoothly on the shop floor. This
department also consists of four foremen:
• Speed Boss makes sure the workers maintain the right speed of production and
avoid delays.
• Gang Boss arranges all tools, machines, and materials in advance to prevent
wastage of time.
• Repair Boss takes care of machine maintenance, preventing breakdowns and
ensuring efficiency.
• Inspector checks the quality of the final product and ensures that it meets the
desired standards.
This department helps maintain the workflow, prevents errors, and ensures high-quality
output.
Advantages
Limitations
Despite its advantages, Functional Foremanship also has a few limitations. Having eight
bosses can confuse workers, especially if instructions from different foremen clash. It also
requires strong coordination and communication among all the foremen. This system
is not suitable for small organizations, as they may not have enough staff or resources to
implement such specialization. Moreover, it may increase the cost of supervision due to
the number of foremen involved.
Conclusion
Functional Foremanship is a systematic and scientific approach to supervision in large
organizations. It separates the planning and doing functions and distributes responsibilities
among eight specialized foremen. While it brings about efficiency, better quality, and
improved organization, it also demands good communication and is best suited for large-
scale production. It reflects Taylor's belief in “the right man for the right job” and
remains an important concept in the study of management.
Meaning:
In traditional methods, one supervisor was expected to manage all aspects of a worker’s job.
Taylor believed this was ineffective because one person cannot be an expert in all areas. So,
he introduced a division of supervisory roles—where the responsibility of supervising
workers is split among eight specialists, each focusing on a particular aspect of the work.
The Eight Foremen: Divided into Two Main Departments
I. Planning Department (Office Work / Thinking Function)
This department focuses on preparing and organizing work before it reaches the shop
floor.
1. 🛤 Route Clerk
o Decides which path/route the work should follow in the production
process.
o Ensures the workflow is smooth and logical.
4. Disciplinarian
o Responsible for maintaining order and discipline among workers.
o Looks after absenteeism, punctuality, and adherence to company rules.
5. Speed Boss
o Ensures that work is done at the right pace without delays.
o Monitors worker efficiency.
6. Gang Boss
7. Repair Boss
o Responsible for the maintenance of machines and equipment.
o Prevents technical breakdowns and ensures smooth working.
8. Inspector
o Checks and verifies the quality of output.
o Ensures that work meets the required standards and specifications.
Advantages:
Limitations:
Conclusion:
Functional Foremanship represents Taylor’s belief in scientific and efficient work processes.
It separates planning from execution and assigns specific roles to specialists. Though
effective in large industries, it requires proper communication and coordination to succeed.
Concepts of Management
Management can be understood from five different perspectives:
1. Management as an Economic Resource
Management is considered one of the important factors of production, alongside
land, labor, capital, and entrepreneurship. It coordinates other resources (money,
manpower, materials, machinery, markets) for efficient use. Efficient management
ensures productivity and economic growth.
5. Management as a Process
Management is viewed as a process involving planning, organizing, staffing,
directing, and controlling human efforts to achieve goals. This is the most
common understanding. It focuses on what managers do as a continuous, rational,
and dynamic process.
Conclusion: These concepts are not contradictory. They offer different ways to
understand management. Together, they form a comprehensive view of what
management truly is.
Sure! Here's a complete and fun emoji-filled explanation of the Concepts of
Management from your images:
Concepts of Management
Management can be understood from five perspectives. Each view shows a unique role
that management plays in an organization or society:
• Manpower
• Materials
• Machinery
• Markets
• Family managers
• Government officials
• Professional managers
They hold authority and are responsible for achieving organizational goals.
Management as a Process
Management is a continuous process involving:
• Planning
• Organizing
• Staffing
• Directing
• Controlling
Conclusion
All these concepts complement each other. Together, they give a complete picture of
what management is — both as a science and as a practice!
Characteristics of Management
1. Management is a Universal Process
Management is needed in all types of organizations—businesses, government offices,
schools, hospitals, etc. It applies to all levels and departments. Henry Fayol said that
management principles are universal. Whether you're a CEO or a shop supervisor, you're still
managing. That means the basic functions of management (planning, organizing, staffing,
directing, and controlling) are used everywhere, regardless of your position.
2. Management is Purposeful
Management always works to achieve goals. It helps an organization move towards its set
objectives. These objectives can be related to profit, social service, development, etc.
Management is not done just for the sake of it—it has a goal to achieve. If there are no goals,
then there is no need for management.
3. Management is Creative
Management helps get things done in a smart way. It tries to complete work using minimum
time and resources. Managers think creatively to solve problems and improve results. Their
role is to make the best use of people, materials, money, and machines to achieve efficiency
and effectiveness.
7. Management is Multidisciplinary
Management is based on knowledge from various subjects like economics, psychology,
sociology, engineering, and more. This is because understanding people, finances,
technology, and operations are all necessary for effective management.
9. Management is Intangible
You cannot see management like a product, but you can feel its results. Good management
leads to a smooth workflow, happy employees, and higher profits. Although it's invisible, its
presence is reflected in outcomes.
2. Management is Purposeful
3. Management is Creative
Meaning: Managers find smart ways to do work faster and better using less time and
money.
Example: Apple used creativity in management to launch unique products like the
iPhone.
Meaning: It involves people and relationships. Managers must motivate, guide, and
support employees.
Example: A manager at Infosys helps team members by listening to their problems and
encouraging them.
7. Management is Multidisciplinary
Meaning: Management uses ideas from many subjects—like economics, psychology, and
law.
Example: A business manager uses math to prepare budgets and psychology to
understand employee behavior.
8. Management is a Continuous Process
9. Management is Intangible
Meaning: You can’t touch or see it directly, but you can feel its effect.
Example: A well-managed restaurant has happy staff, quick service, and smiling
customers—even if you don’t see the manager.
Meaning:
• It is a science because it has rules and principles.
• It is an art because managers need creativity and experience.
Example: Like a chef (artist) follows a recipe (science), a manager at Amul uses
principles to lead but also uses experience to handle challenges.
Conclusion:
The difference between administration and management depends on context.
In theory, they may differ, but in practice, they are often used interchangeably,
especially in business.
1. Technical Skills
Definition:
Technical skills are the abilities and knowledge needed to perform specific tasks using tools,
techniques, equipment, and procedures.
Explanation:
These skills are directly related to the specific domain or field the manager is in. For
example, a manager in an IT company needs to understand programming basics, system
architecture, or data analysis. It doesn’t mean the manager must code daily—but they should
understand enough to guide their team and ask the right questions.
Key Points:
• Know which technical skills are relevant to your field.
• Understand the role and relationship of different technical activities.
Example:
A production manager must understand how machinery works to supervise workers
effectively.
Level of Management:
Most important at the lower/operating level, like supervisors and team leaders, who
are directly involved with workers and machines.
2. Human Skills
Definition:
Human skills refer to the ability to interact effectively with people—understanding their
behavior, motivating them, and working cooperatively.
Explanation:
These skills involve empathy, communication, leadership, and teamwork. Managers must
understand employee needs, resolve conflicts, and encourage group participation.
Key Points:
• See things from others’ perspectives.
• Build relationships and trust.
• Inspire, guide, and communicate effectively.
Example:
A manager who listens to employee concerns and addresses them in a respectful, supportive
way demonstrates strong human skills.
Level of Management:
Equally important at all levels—top, middle, and lower—because every manager deals
with people.
3. Conceptual Skills
Definition:
Conceptual skills are the ability to see the “big picture”—understanding the organization as a
whole and how its parts are connected.
Explanation:
These skills allow managers to think abstractly, analyze complex situations, solve strategic
problems, and plan for the future. They involve creativity, vision, and strategic thinking.
Key Points:
• See beyond day-to-day tasks.
• Understand interrelationships across departments.
• Handle abstract and complex issues.
Example:
A CEO visualizing how a shift in customer trends may affect company operations and
designing a new business model accordingly.
Level of Management:
Most important at the top level (e.g., CEO, directors), where strategic decisions are
made.
4. Diagnostic Skills
Definition:
Diagnostic skills involve identifying the core of a problem, analyzing it, and developing
possible solutions.
Explanation:
It’s more than just spotting what’s wrong—it’s about understanding why it went wrong and
how to fix it efficiently. Diagnostic skills combine analytical thinking with practical
judgment.
Key Points:
• Pinpoint root causes of issues.
• Predict possible outcomes and solutions.
• Prioritize what really matters.
Example:
If productivity drops in a department, a manager with diagnostic skills will analyze employee
feedback, system reports, and workflows to find the real issue—maybe outdated software or
poor communication.
Level of Management:
Crucial at all levels, but especially useful for middle managers who connect top
management decisions with ground-level operations.
If you'd like, I can also prepare a chart or infographic for quick revision or a short
mnemonic to help remember these four skill types.