15.

It helps society:
 For any organization, profit is not the only objective. It provides the society with a
regular
supply of good quality goods and services at reasonable prices.
 It provides employment opportunities to people. It pays taxes to the government
which is
used for developing the nation. As part of Corporate Social Responsibility, many
organizations use their profits to build hospitals, schools, colleges, etc. In this way it
contributes towards the uplift of society.
1.2 Management Characteristics
1. Universal
 The principles and concepts of management are applicable to every type of
industry. All
the organizations, whether profit-making or not, require management for managing
their
activities. Hence it is universal in nature.
 However, the practice of management may vary from one organization to another
according to their nature.
2. Goal Oriented:
All organizations have objectives that are laid down. Management achieves the
organizational goals by coordinating the efforts of the personnel.
3. Continuous process:
The process of management consists of functions like planning, organizing,
directing and controlling the resources to ensure that resources are used to the best
advantages of the organization. Management involves continuous planning,
organizing, directing and controlling.
4. Multi-dimensional:
Management is not confined to the administration of people only, but it also manages
work, processes and operations, which makes it a multi- dimensional. It is the
unifying
force which integrates human and other resources to obtain the desired objectives.
5. Group activity:
 An organization consists of various members who have different needs,
expectations
and beliefs. Every person joins the organization with a different motive, but after
becoming a part of the organization, he works for achieving the same goal.
 This requires supervision, teamwork and coordination, and it is achieved by,
management.
6. Dynamic function:
 Management is not static. Over a period of time new principles, concepts and
techniques are developed and adopted by management. It changes according to the
social changes.
 The working of an organization depends upon various factors like social, political,
legal, technological, economical, etc. A slight change in any of these factors will
affect
the organization’s growth and performance. To overcome these changes, management
formulates strategies and implements [Link] (22509)
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7. Authority
 Management represents a system of Authority – a hierarchy of command and
control.
Managers at different levels possess varying degrees of authority.
Figure 4- Principles of Management
Principles of Management
Taylor’s Principles of Scientific Management
F.W. Taylor is regarded as father of Scientific Management. His principles of
scientific
management are-
1. Science, Not Rule of Thumb: This means using scientific methods to study work
and
determine the most efficient way of performing specific tasks instead of working by
"rule
of thumb" or habit.
2. Development of each and every person to his or her greatest efficiency:
Employees
should be scientifically selected and placed depending upon their skills, capabilities
and
aptitudes. They should be provided proper training to learn the best method of doing a
job.
3. Harmony, Not Discord: Harmony means there should be complete agreement on
ideas and
opinions between workers and management. Discord or difference in opinion will
lead to
conflicts.
4. Cooperation, Not Individualism: This lays stress on mutual cooperation between
workers
and the management. Cooperation, mutual confidence, sense of goodwill should
prevail
among both, managers as well as workers. It will replace internal competition with
cooperation.
5. Maximum output in place of restricted output: By maximizing the production
efficiency, the earnings of employees and employers will also increased.
6. Financial Incentives: According to this principle the wages paid should be as per
performance of the worker. An efficient worker should be paid more than an
inefficient
worker. This will motivate the workers to become more [Link] (22509)
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Henry Fayol’s Principles of management
Figure 5 Fayol’s 14 Principles of Management
Henry Fayol presented 14 principles of management as general guides for
Management process and management practice. They are:
1. Division of work:
 According to this principle, work should be divided among workers according to
their
personal aptitude and skills.
 Division of work leads to specialization which is necessary for efficient utilization
of
labour. This will result in increased efficiency and productivity.
2. Authority and Responsibility:
 Managers need to have the authority (and with it responsibility) to command their
teams. When managers have teams reporting to them they are usually responsible for
the team's performance.
 Authority and Responsibility should go hand in hand and must be related to one
another. An executive can do justice to his responsibility only when he has authority.
Responsibility without Authority or vice versa is meaningless.
3. Discipline:
 Discipline is absolutely necessary for efficient functioning of all sections of an
organization.
 Discipline is described as “respect for agreements that are directed at achieving
obedience, application, and the outward marks of respect”.
 Fayol declares that discipline requires good superiors at all levels, clear and fair
agreement and judicious application of penalties.
4. Unity of command:
 This principle relates to the functioning of personnel. According to this principle,
an
employee should receive orders and instructions from one superior only.
 This principle is useful to avoid confusions, mistakes and delays in work.
5. Unity of direction:
This is a broader concept than unity of command. It deals with the functioning of the
body corporate. According to this principle, each group of activities having the same
objective must have one head and one plan. Management (22509)
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6. Subordination of individual interest to general interest:
In any organization, the interest of the organization should be above that of the
individual. This is necessary to maintain unity and avoid friction among employees.
7. Remuneration of personnel:
 Remuneration is the price paid by the organization to its employees for the services
rendered by them.
 The remuneration and methods of payment should be fair and provide maximum
satisfaction to employee and employer.
8. Centralization:
 Centralization means the concentration of authority with top management. In
a centralized organization, power is held by head office or a small number of
managers,
whereas decentralized organizations allow departments and individuals to make
decisions.
 According to Fayol, it is important to have a balance between centralization and
decentralization for proper working. The appropriate level of centralization will
depend
on the organizational structure and objectives.
9. Scalar chain:
 The unbroken line of authority from the highest level to the lowest levelis
calledscalar
chain.
 Managers are regarded as ‘Chain of Superiors” from the highest to the lowest ranks
and
the unbroken line of command and authority should be maintained.
 However the chain may be short-circuited when scrupulous following of it would
be
detrimental for the organization
10. Order:
According this principle, everything(material)and everyone (human being), has a
specific place in the organization. They should be arranged such that right
material/right
person should be located at the right place for effective functioning.
11. Equity:
 According to this principle, managers should treat all employees/subordinates with
fairness, kindness and justice.
 This will make the employees to be more loyal and devoted towards the
organization.
12. Stability of tenure of personnel:
 Stable and secure work force is an asset to an enterprise. Stability of tenure means
ensuring that employees do not leave the company.
 Instability is a result of bad management and increases the costs of unnecessary
labour
turnover.
13. Initiative:
 Initiative is conceived as thinking and execution of a plan. It is one of the keenest
satisfactions for an intelligent employee.
 Managers should encourage and motivate the employees to take initiative which
will
help the organization to improve.
 Employee initiative can include employee suggestions, new ideas, solutions to a
problem and dealing with situations without being asked to do so.