Principles of Management-BBA-1-Semester-Unit-1 Osmania University

1. PRINCIPLES OF
MANAGEMENT
PRESENTED BY
K.BALASRI PRASAD
B.Sc(KU), M.B.A(OU), NET(UGC)
ASSOCIATE PROFESSOR IN MANAGEMENT

2. Management
Management is co-ordination of all
resources through the process of
planning, organizing, directing and
controlling in order to attain stated
objectives.

3. Nature of Management
1. Universal phenomenon
2. It is an organized activity
3. It is a Group activity
4. Management is a systematic process
5. It is a social process
6. It is about “Getting things done
through people”

4. 7. Management is an Integrated process
8. Management is Intangible
9. Goal- Oriented
10. Inter-Disciplinary Approach
11. Dynamic
12. Management is about system Authority
13. Good Leadership
14. Management is an Economic activity
15. One of the factors of production
16. Management is a profession

5. Scope of Management
1. Subject matter of Management:
Planning, Organizing, Staffing, Directing, Coordinating,
Motivating and Controlling are main functions of
Management.
2. Functional Areas of Management:
(i)Financial Management
(ii)Marketing Management
(iii)Production Management
(iv)Human Resource Management

6. 3. Inter-Disciplinary Approach:
Management is a discipline that takes the help of
other subjects like Psychology. Sociology,
Engineering, Economics etc,.
4. Universal Phenomenon:
Management is also present in political, religious,
charities, Armed forces, educational institutions
etc,.

7. Management functions (or)
Process of Management
There are five types of functions in management. They are,
Planning-Defines the goal & establishing strategy.
Organizing-includes determining what task has to be done,
who is to do them.
Staffing-Includes recruitment of people and training them
towards the project.
Directing-Includes the motivating the employees and leading
the activities.
Controlling-It is the process of monitoring the performance.

8. Managerial Skills
There are three types of skills required by a manager. They
are:
Conceptual Skills-These skills are required by the
employee who are in top level management.
Human Relations Skills- These skills are required by
the employee who are in middle level Management.
Technical skills-These skills are required by the employee
in the supervisory level.

9. Different Managerial Levels
Top Management
Middle Management
Supervisory Level
Human Relations Skills
Conceptual
Skills
Technical Skills

10. Order of Management
Operatives
(or)
Executive
First-Line Managers
Middle
Managers
Top
Management

11. Effectiveness: Adequate to accomplish a purpose; producing
the intended or expected result.
Efficiency: Performing or functioning in the best possible
manner with the least waste of time and effort.
(Or)
Efficiency is doing something with the least possible expenditure of
resources (such as time, energy, etc.)
Efficiency & Effectiveness

12. Principles of Management- Henry Fayol
Division of work
Authority & responsibility
Discipline
Unity of command
Unity of direction
Subordination of individual to
general interest
Centralization
Scalar chain

13. Remuneration
Order
Equity
Stability of tenure
Initiative
Esprit de corps

14. EVOLUTIONEVOLUTION
OFOF
MANAGEMENT THOUGHTMANAGEMENT THOUGHT

15. INTRODUCTION

16. ENVIRONMENT FACTORS

17. EVOLUTION OF MANAGEMENT THOUGHT

18. DIFFERENT APPROACHES

19. Focuses on the
individual worker’s
productivity
Focuses on the
functions of
management
Focuses on the
overall
organizational
system
CLASSICAL APPROACH

20. SCIENTIFIC MANAGEMENT: Taylor

21. FAYOL’s PRINCIPLE OF
MANAGEMENT

22. BEHAVIOURAL
APPROACH

23. HIERARCHY’s HUMAN NEEDS

24. CONTINGENCY THEORY

25. LEVELS OF MANAGEMENT

26. The term “Levels of Management’ refers
to a line of separation between various
managerial positions in an organization.
The number of levels in management
increases when the size of the business and
work force increases and vice versa.
 The level of management determines a
chain of command, the amount of authority
& status enjoyed by any managerial position.

27. The levels of management can be classified in
three broad categories: -
Top level / Administrative level.
Middle level management.
Low level / Supervisory.

29. Consists of board of directors, chief
executive or managing director. The top
management is the ultimate source of
authority and manages goals and policies for
an enterprise. They devotes more time on
planning and coordinating functions.
Top Level of Management

30. Top management lays down the strategic
objectives and broad policies of the enterprise.
Issues necessary instructions for preparation of
department budgets, procedures, schedules etc.
Controls & coordinates the activities of all the
departments. Provides guidance and direction.
The top management is also responsible
towards the shareholders and for the
performance of the enterprise.
Role of Top Mgmt

31. The branch managers and departmental managers
constitute middle level.
 They are responsible to the top management for
the functioning of their department.
They devote more time to organizational and
directional functions.
In small organization, there is only one layer of
middle level of management but in big
enterprises, there may be senior and junior
middle level management.
Middle Level of Management

32. They execute the plans of the organization in
accordance with the policies and directives of the top
management.
They make plans for the sub-units of the organization.
They participate in employment & training of lower
level management.
They interpret and explain policies from top level
management to lower level and sends important
reports and other important data to top level
management.
They evaluate performance of junior managers.
Role of Middle level Mgmt

33. Lower level is also known as supervisory /
operative level of management.
It consists of supervisors, section officers,
superintendent etc.
According to R.C. Davis, “Supervisory
management refers to those executives
whose work has to be largely with personal
oversight and direction of operative
employees”.
Lower Level of Management

34. Assigning of jobs and tasks to various workers.
They guide and instruct workers for day to day
activities.
They are responsible for the quality as well as quantity
of production.
They communicate worker’s problems, suggestions,
and recommendatory appeals etc to the higher level.
They help to solve the grievances of the workers.
They prepare periodical reports about the
performance of the workers.
They ensure discipline in the enterprise and motivate
workers.
Role of Lower level Mgmt

35. FUNCTIONS OF
MANAGEMENT

36. FUNCTIONS OF
MANAGEMENT

37. PLANNING
According to KOONTZ, “Planning is
deciding in advance - what to do, when
to do & how to do. It bridges the gap
from where we are & where we want to
be”.
Planning is necessary to ensure proper
utilization of available resources.

38. ORGANIZING
According to Henry Fayol, “To organize a business is to
provide it with everything useful or its functioning i.e.
raw material, tools, capital and personnel”.
 Organizing as a process involves:
Identification of activities.
Classification of grouping of activities.
Assignment of duties.
Delegation of authority and creation of
responsibility.
Coordinating authority & responsibility relationships.

39. STAFFING
According to Koontz & O'Donnell, “Managerial function of staffing involves
manning the organization structure through proper and effective selection,
appraisal & development of personnel to fill the roles designed un the
structure”.
 Staffing involves:
Manpower Planning
Recruitment, selection & placement.
Training & development.
Remuneration.
Performance appraisal.
Promotions & transfer.

40. DIRECTING
It is that part of managerial function which actuates the
organizational methods to work efficiently for
achievement of organizational purposes.
Direction has following elements:
Supervision
Motivation
Leadership
Communication

41. CONTROLLING
 The purpose of controlling is to ensure that everything
occurs in conformities with the standards.
 Therefore controlling has following steps:
Establishment of standard performance.
Measurement of actual performance.
Comparison of actual performance with the
standards and finding out deviation if any.
Corrective action.