UNI

T-I

MANAGEMENT:
ANI
NTRODUCTI
ON
Meani
ngofManagement
Itreferst ot he process ofconduct
ing a setoff
unct
ions (
planni
ng,
organizi
ng,staffi
ng,direct
ingandcont
rol
li
ng)togett
heworkdonei nan
effi
cientandef f
ecti
vemanner .

Def
ini
ti
onsofManagement
“Managementi
sthear
tofget
ti
ngt
hingsdonet
hroughot
her
swi
thf
ormal
l
y
organi
zedgr
oups.
”

Char
act
eri
sti
csofManagement
1)Managementi
sGoal
-or
ient
edPr
ocess:

Nogoali nthehandnoneedofmanagement .Inotherwords,weneed

managementwhenwehav esomegoal st
obeachi ev
ed.Amanageront he
basisofhi
sknowledgeandexper
iencetri
estoachievet
hegoalswhichare
alr
eadydeci
ded.Hence,not
hingi
swr ongtosaythatmanagementisagoal
-or
ient
edprocess.

2)Managementi
sAl
l
-per
vasi
ve:

Anyt
hingminusmanagementi snothi
ngorzero.Her
ebyanythingwemean
al
lt ypes of acti
vit
ies-
busi
ness and non- busi
ness. I
f we deduct
managementoutoft heseactivi
ti
es,theresul
twillbefai
l
ureorzer o.It
meansmanagementi snecessarytoconductanyty
peofactiv
iti
es.Hence,
i
tispervasi
veoruni
ver
sal.

3)Managementi
sMul
ti
dimensi
onal
:

Themanagementi
sat
hree-
dimensi
onal
act
ivi
ty:
(
i)ManagementofWor
k:

Everyorgani
zat
ion i
s est
abli
shed f
ordoing some work,li
ke a school
provi
deseducat
ion,ahospit
altr
eat
spat i
ent
s,af act
orypr
oduces,et
c.Of
these,
noworkcanbecompl et
edsati
sfact
ori
l
ywithoutmanagement.

(
ii
)ManagementofPeopl
e:

Eachorgani
zat
ionisestabli
shedfordoingsomeworkandthesameis
conduct
edbypeople.Hence,i
tisnecessar
ytomanaget
hepeopl
esot
hat
theworkcanbeaccompli
shedinabetterway.

(
ii
i)ManagementofOper
ati
ons:

Toachiev
et hegoalsofanorganizati
onmanyoper at
ionsoractivi
ti
esneed
tobeconducted,suchas,producti
on,sale,pur
chase,fi
nance,account
ing,
R&D,et
c.Again,managementi sneededt omakesur ethatoperati
onsare
accompli
shedeffi
cient
lyandeff
ectiv
ely.

(
4)Managementi
saCont
inuousPr
ocess:

Thevar
iousmanagerialact
ivi
ti
escannotbeperformedoncef
oral
l,
buti
tis
a cont
inuous pr
ocess.A manageri s busy someti
mes i
n doi
ng one
manageri
alact
ivi
tyandatotherti
messomeot heracti
vi
ty.

5)Managementi
saGr
oupAct
ivi
ty:

Itmeansthat(|T-
2itisnotasi nglepersonwhoconsummatesallt
he
act
ivi
ti
esofanorgani
zat
ionbutiti
salwaysagroupofper
sons(
manager
s).
Hence,managementi
sagr oupeff
ort
.

(
6)Managementi
saDy
nami
cFunct
ion:

Managementi
sady namicacti
vi
tyasithastoadj
ustit
sel
ftotheregul
arl
y
changi
ngenvi
ronment
.Inthi
scontext
,itcanberi
ght
lysai
dthatnothi
ngis
eter
nali
nmanagement.

7)Managementi
( sanI
ntangi
bleFor
ce:

Managementist
hatpowerwhichcannotbeseen.I
tcanonl
ybef el
t.Ifany
or
ganizat
ioni
sheadi
ngtowar
dhigherlevel
sofachi
evement
,itsi
gni
fiesthe
exi
stence of good management and vi
ce versa. I
n other words,
achi
evementref
lect
sthequal
i
tyofmanagementandit
seffect
iveness

Si
gni
fi
canceofmanagement
1.Achi
evi
ngPr
e-det
ermi
nedobj
ect
ives:
-

Eachorgani
zationi
sestabl
i
shedwithcer
tai
naims.Managementisthe
onlymedium andpowerwhichcanhel
pinthesuccessf
ulat
tai
nmentof
theseai
ms.

2.Ensur
ingmaxi
mum ut
il
izat
ionofr
esour
cesofpr
oduct
ion:
-

Management isthe power which by est

abl
i
shing and ef
fect
ive
coordi
nat
ionbet
weenthevariousresour
cesofproduct
ionmakesan
opti
mum useoft
heser
esources.

3.Mai
ntai
ningasoundor
gani
zat
ional
str
uct
ure:
-

A sound organizat
ionalstruct
ureisneeded forthesuccessofany
enter
pri
se.A sound or ganizat
ionalst
ruct
uremeansdef i
ning acl
ear
rel
ati
onshi
pbet weent hesuperi
orsandthei
rsubor
dinat
es.

4.Encour
agesI
nnov
ati
on

Managementalsoencouragesinnovat
ionintheorganizat
ion.I
nnovati
on
bri
ngsnew ideas,new technol
ogy,new met hods,new products,new
servi
ces,et
c.Thi s makes the organi
zati
on mor e competiti
ve and
eff
ici
ent.

5.Faci
l
itat
esgr
owt
handexpansi
on

Managementmakes opt imum ut i

lizati
on ofav ail
abler esources.It
reduceswast ageandincreaseeffi
ciency.Itencouragesteam wor kand
mot i
vatesempl oy
ees.Italsoreducesabsent eeism andlabort urnov
er.
Allt hisr esul
tsin growt h,expansi on and diversi
fi
cation of t he
organizat
ion.

6.Ai
medati
ncr
easedpr
ofi
ts.

7.Est
abl
i
shi
nggoodl
abor
-ownerr
elat
ionshi
p.
FUNCTI
ONSOFMANAGEMENT

PLANNI
NG:-Pl
anni
ng i
sthe basi
cfunct
ion ofmanagement
.
Planni
ngcanbedef i
nedas”thinki
nginadvancewhatistobedone,
whenitistobedone,how iti
st obedoneandbywhom i tshoul
dbe
done.”Insimplewordswecansayt hati
tbri
dgesthegapbet ween
wherewearestandi
ngtodayandwherewewanttoreach.

“Pl
anni
ngist
hethi
nkingprocess,t
heor gani
zedforesi
ght,t
hev i
si
on
basedonf
act
sandexper
iencethati
srequir
edfori
ntel
li
genceact
ion.
”

 ORGANI
SING:
-Or
gani
zi
ng can be def
ined as” i
dent
if
ying and
 groupingdi f
fer
entact iv
itiesintheorgani zati
onandbr i
ngingt ogether
the phy si
cal,financialand human r esources t o establ
ish most
productive rel
ations f or t he achi
ev ement of speci f
ic goal of
organizati
on.”I
not herwor dsorgani
zingr efer
st oarrangi
ngev erything
i
nor derlyfor
m andmaki ngmostef fi
cientuseofr esources.
S TAFFI NG:-Af terpl anningandor ganizingt henextf unct i
on
ofmanagersistoper
form st
aff
ingfunct
ion.Throughstaf
fi
ng
funct
ion manager
sfil
lallthe jobs cr
eated by organi
zi
ng
funct
ion.

Staf
fi
nginv
olves“f
indi
ngt herightpersonf orther
ightjob
havi
ngtheri
ghtquali
fi
cat
ion,doingtherightjobatt
her i
ght
ti
me.”

 DIRECTI NG: -Dir

ectingf uncti
onofmanagementisconcer
ned
wit
h inst r
ucting, gui di
ng, inspir
ing and moti
vati
ng the
employeesi nt heorgani zati
onsot hatt
hei
ref
for
tsresul
tin
achi
evementofor ganizationalgoal
.

“
Direct
ingi
stell
i
ngpeopl
ewhatt
odoandseei
ngt
hatt
heydo
i
ttothebestoft
hei
rabi
li
ty”

 CONTROL LI
NG:-Control
li
ngi
sav er
yimport
antmanageri
al
functi
on.Itisconcer
nedwitht
aki
ngnecessar
ymeasuresor
preventi
veacti
onst oensur
eachi
evementoforgani
zati
onal
goal.

Cont r
olli
ngf unct
ioncanbedef i
nedascompar i
sonofact ual
performancewi t
ht heplannedperfor
mance.I fther
ei sany
dif
ference ordev i
ati
on then fi
ndi
ng the reasons forsuch
dif
ferenceandt aki
ngcor rect
ivemeasuresoract iontostop
thoser easonssot hatinfutur
ether
eismat chbet weenactual
andpl annedper f
ormance.

“Contr
oll
i
ng is measurement and corr
ecti
on of t
he
perf
ormance oft
he subor
dinat
es t
o make suret
hatt
he
 ent
erpr
iseobj
ecti
vesandpl
ansdev
isedt
oat
tai
nthem ar
e
bei
ngaccompl
ished.
”

DEVELOPMENTOFMANAGEMENTTHOUGHT

Theappr
oacht
omanagementi
deol
ogycont
inueddev
elopi
ngwi
th
t
hepr
esent
ati
onofnewt
hought
s.Thepr
ocessofdev
elopmentof
managementt
houghtcanbedi
vi
dedi
ntot
hreemai
nlev
els:
-

1)Cl
assi
cal
Appr
oaches

2)Neo-
classi
cal
Appr
oaches

3)Moder
nAppr
oaches
1)
Classi
cal
Appr
oach:
-Thecl
assi
cal
appr
oacht
o
managementst
art
edar
oundt
hey
ear1900.The
pr
inci
plesdev
elopedundert
hisappr
oachar
e
accept
edev
ent
oday
.Undert
hisappr
oachi
tisf
elt
t
hatmani
sani
nact
ivesour
ceofpr
oduct
ionandi
tis
i
mpor
tantt
ocont
rol
him.Thi
sappr
oachhast
hree
br
anches:

I
.SCI
ENTI
FICMANAGEMENT
 Cont
ri
but
ionsofTay
lor

F.
W Tay
lorbecame t
he f
amous as a f
atherof
sci
ent
if
ic management
.Hi
s mai
n cont
ri
but
ions
whi
chmadehi
m sopopul
arwer
e:

i
. Tay
lorpubl
i
shedbooksandr
esear
chpaper
s
expl
aini
ng sci
ent
if
ic v
iew on i
ndust
ri
al
or
gani
zat
ionandmanagement
.

i
i
. Hi
s maj
or cont
ri
but
ion was publ
i
shi
ng of
“
Shopmanagement
”,pi
eceRat
eSy
stem”and
“
Pri
nci
plesofmanagement
”.

i
i
i. He emphasi
zed on adopt
ion of sci
ent
if
ic
met
hodst
othepr
obl
em ofmanagement
.

Sci
ent
if
icManagement
Sci
ent
if
icmanagementcanbedef
inedas“
appl
i
cat
ionofsci
ence
f
oreachandev
eryel
ementofmanagement
”.I
ngener
all
anguage
i
tmeansappl
ysci
ent
if
ict
ool
s,met
hodsandt
rai
nedper
sonneli
n
or
dert
oincr
easet
heout
put
.
DEFI
NITI
ON

“
Sci
ent
if
icmanagementmeansknowi
ngexact
lywhaty
ouwant
ment
odoandseei
ngt
hatt
heydoi
tint
hebestandcheapest
way
”.

Sci
ent
if
icpr
inci
plesofmanagement
:

Tay
lor f
ormul
ated f
our pr
inci
ples of sci
ent
if
ic
managementwhi
char
eexpl
ainedbel
ow:

1.
Sci
ence,notr
ule oft
humb:-Accor
ding t
othi
s
pr
inci
plet
ayl
ori
nsi
stst
hateachj
obper
for
medi
nthe
or
gani
zat
ionshoul
d bebased onsci
ent
if
icenqui
ry
and noton i
ntui
ti
on,exper
ience and hi
tand mi
ss
met
hods.Hesay
sthatt
her
emustbet
hinki
ngbef
ore
doi
ngwhi
chi
snoti
ncaseofr
uleoft
humb.Rul
eof
t
humb means di
ctat
orshi
p of manager wher
eas
sci
ent
if
icdeci
sionsar
ebasedoncauseandef
fect
andsci
ent
if
icmeasur
ementofmet
hodsandway
sof
pr
oduct
ion.

2.
Har
mony
,notdi
scor
d:-Accor
ding t
othi
s pr
inci
ple
t
hose who wor
ktoget
heri
n an or
gani
zat
ion must
wor
kinhar
monyt
hati
swi
thmut
ualgi
veandt
akeand
pr
operunder
standi
ng.Gener
all
yinev
eryor
gani
zat
ion
t
her
ear
etwogr
oupsofpeopl
e-wor
ker
sgr
oupand
managementgr
oupandbot
hgr
oupwor
kasr
ival
sof
each ot
heras wor
ker
s al
way
sfeelt
hatt
hey ar
e
under
pai
dandar
eov
erbur
denedwi
tht
hewor
kand
managemental
way
sfeelt
hatwor
ker
sar
egoodf
or
not
hing.

I
nthi
spr
inci
ple,
Tay
lori
nsi
stsonment
alr
evol
uti
on
whi
chmeanscompl
etechangeofat
ti
tudeand
out
lookf
oreachot
her
.

(
ii
i)Co-
oper
ati
on,
noti
ndi
vi
dual
i
sm:
Accor
dingt
othi
s
pr
inci
plewor
kmustbecar
ri
edoni
nco-
oper
ati
onwi
th
eachot
her
,wi
thmut
ual
conf
idenceand
under
standi
ngf
oreachot
her
.Wor
ker
sandmanager
s
mustwor
kinco-
oper
ati
on.Themanagementmust
t
akewor
ker
sinconf
idencebef
oreset
ti
ngupt
he
st
andar
dtaskf
ort
hem becausewhenst
andar
dsor
t
arget
sar
esetupi
nconsul
tat
ionofwor
ker
s,t
hen
t
heywi
l
ltr
ythei
rbestt
oachi
evei
t.

(
iv) Dev
elopment of wor
ker
stot
hei
r gr
eat
est
ef
fi
ciency and pr
osper
it
y:-I
ndust
ri
al ef
fi
ciency
depends upon t
he ef
fi
ciency depend upon t
he
ef
fi
ciency ofwor
ker
s.Wor
ker
s ef
fi
ciencydepends
upon pr
oper t
rai
ning and t
hei
r sel
ect
ion.Tay
lor
i
nsi
stedduecar
eshoul
dbet
akenwhi
l
esel
ect
ingt
he
empl
oyeesandaf
tersel
ect
ingt
heymustbegi
venj
ob
accor
dingt
othei
rqual
i
ficat
ion.Empl
oyeesmustbe
sentf
ort
rai
ningf
rom t
imet
oti
met
oupdat
ethei
r
knowl
edge.Thi
swi
l
lensur
egr
eat
estef
fi
ciencyand
pr
osper
it
yforbot
hcompanyandwor
ker
s.

Admi
nist
rat
iveManagement
Admi
nist
rat
ive management appr
oach t
o
managementwas adv
ocat
ed byHenr
yFay
ol.Thi
s
appr
oachi
sal
socal
l
edpr
ocessmanagement
.Fay
ol
i
s al
so cal
l
ed t
he f
ather of admi
nist
rat
ive
managementi
nthesamewayasTay
lori
scal
l
edt
he
f
atherofsci
ent
if
icmanagement
.

Af
termanyexper
iment
sher
eachedt
heconcl
usi
ons
 t
hatt
he managementact
ivi
tyi
sa speci
alact
ivi
ty,
whi
chi
sdi
ff
erentf
rom account
ing,sal
es,pr
oduct
ion
andot
herr
elat
edact
ivi
ti
esandwhi
chi
scompl
etedi
n
asi
mil
armanneri
nal
ltheor
gani
zat
ions.

Thi
s concl
usi
on off
ayolbr
ings t
wo f
eat
ures of
management
:-

I
. Thatmanagementi
sanact
ivi
tywhi
chi
sdi
ff
erent
f
rom ot
herbusi
nessact
ivi
ti
es.

I
I. That management has t
he qual
i
ty of bei
ng
uni
ver
sal
.

Fay
olhasdi
vi
dedal
lthebusi
nessact
ivi
ti
esi
ntosi
xpar
ts:
-

Techni
cal
act
ivi
ti
es

Commer
cial
act
ivi
ti
es

Fi
nanci
alact
ivi
ti
es

Secur
it
yact
ivi
ti
es

Account
ingact
ivi
ti
es
 Manager
ial
act
ivi
ti
es

Fay
olhas pr
esent
ed t
he f
oll
owi
ng f
ivef
unct
ions of
management
:

Pl
anni
ng

Or
gani
zi
ng

Coor
dinat
ing

Commandi
ng

Cont
rol
l
ing

Funct
ionsofmanagementaccor
dingt
ofay
ol:

i
. Di
vi
sionofwor
k

i
i
. Aut
hor
it
yandr
esponsi
bil
i
ty

i
i
i. Di
sci
pli
ne

i
v. Uni
tyofcommand

v
. Uni
tyofdi
rect
ion

v
i. Subor
dinat
ionofI
ndi
vi
dual
Int
erestt
oGener
alI
nter
est

v
ii
. Fai
rremuner
ati
on
 v
ii
i. Cent
ral
i
zat
ionanddecent
ral
i
zat
ion

i
x. Or
der

x. Equi
ty

xi
. St
abi
l
ityi
nthet
enur
eofper
sonnel

xi
i
.Ini
ti
ati
ve

xi
i
i. Scal
archai
n

xi
v. Espr
itdecr
ops

PRI
NCI
PLESOFMANAGEMENT
A Pri
ncipl
eref
erstoastatementwhichref
lect
sthef undament
alt
rut
h
aboutsomephenomenonbasedoncauseandeff
ectr
elati
onshi
p.

Managementpr
inci
plesar
ethest
atementsoffundamentalt
rut
hwhi
chact
asgui
del
inesf
ortaki
ngmanageri
alact
ionsanddecisi
ons.

Nat
ure/
feat
ures/
char
act
eri
sti
csofmanagementpr
inci
ples

 Uni
ver
salappl
i
cat
ion:-The pr
inci
ples of managementar
e
univer
salin nat urethatmeans they can be appl
i
ed to allof
organi
zati
onsirrespect
iveoft
hei
rsizeandnatur
e.Theirr
esul
tsmay
varyandappl i
cationmaybemodi f
iedbutthesearesuit
abl
ef oral
l
kindsoforgani
zat i
ons.
 Gener
alguidel
ines:-Managementprinci
plesarenotst
ati
c
orabsol
utestatement
s.Thesecannotbeappl i
edbli
ndl
yin
al
lthesi
tuati
ons.Theapplicabi
l
ityofpri
ncipl
edependson
 condi
ti
onsandnat
ureofor
gani
zat
ion.

Managementprinci
plesgi
veguidel
i
nestosolv
et heprobl
emsthese
pr
inci
plesdonotprovider
eady
madesolut
ionsforal
lthepr ems.
obl

 Flex i
bili
ty:-The managementpr incipl
es can be appl i
ed
differentl
yunderdi f
fer
entconditions.Somechangescanbe
made i n appli
cat i
ons of pr inciples accor ding to t he
requirementoft hecompany .Thesear enott hesetofr igid
statement s.Thesecanbemodi fi
edbyt hemanager swho
areusi ngt hem.
 Based on cause and ef f
ectr elationship:
-Management
principlesar ebasedoncauseandef fectthatmeanst hese
principles tel
lus i fa part
icularpr i
ncipleis applied ina
situation,whatmi ghtbetheeffect .Althought heseprinciples
cannotst ateper fectl
yabsoluter esultbecauset hesear e
appl i
edonhumanbei ngbuti thel psi nknowi ngt hesome
i
deaaboutt heeffect.

FAYOL’
SPRI
NCI
PLESOFMANAGEMENT
Maj
orcont
ri
but
ionsoff
ayol
Henr
yfayolbecamef amousas“Fat
herofManagementst
udi
es
andt
houghts”
,becauseofthef
oll
owi
ngcont
ri
but
ions:
-

A.
Hemadecl
eardi
sti
nct
ionbet
weent
echni
calandmanager
ial
ski
l
l.
B.Hei
dent
if
iedt
hemai
nst
epsi
nthepr
ocessofmanagement
whi
char
econsi
der
edt
hemaj
orf
unct
ionsofmanagement
-
pl
anni
ng,
organi
zi
ng,
staf
fi
ng,
dir
ect
ing,
cont
rol
l
ing.
 C.
Hedev
elopedf
our
teenpr
inci
plesofmanagementwhi
chact
asgui
del
i
nesf
ormanager
stoper
for
m manager
ial
act
ivi
ti
es.

Pr
inci
plesofManagementdev
elopedbyHenr
yFay
ol
1.
Pri
nci
pleofdi
vi
sionofwor
k:Accor
dingt
othi
spr
inci
ple
t
hewhol
ewor
kmustbedi
vi
dedi
ntosmal
ltasksoruni
tsand
i
nst
eadofassi
gni
ngt
hewhol
ewor
ktooneper
sononet
ask
oruni
tofwor
kshoul
dbeassi
gnedt
ooneper
sonaccor
ding
t
othecapabi
l
ity
,qual
i
ficat
ionandexper
ienceoft
heper
son.
Whenaper
soni
sper
for
mingapar
tofj
obagai
nandagai
nhe
wi
l
lbecomeper
fectandspeci
ali
zedi
ndoi
ngt
hatandt
he
ef
fi
ciencyl
evel
wil
li
mpr
ove.

2.Pr
inci
ple of aut
hor
it
y and r
esponsi
bil
i
ty:
-Aut
hor
it
y
means power t
o t
ake deci
si
on. Responsi
bil
i
ty means
obl
i
gat
iont
ocompl
etet
hej
obassi
gnedont
ime.Accor
dingt
o
t
hispr
inci
plet
her
emustbebal
ancebet
weent
heaut
hor
it
y
and r
esponsi
bil
i
ty.Excess ofaut
hor
it
y wi
thoutmat
chi
ng
r
esponsi
bil
i
ty may br
ing negat
iver
esul
ts and excess of
r
esponsi
bil
i
tywi
thoutmat
chi
ngaut
hor
it
ywi
l
lnotal
l
ow t
he
wor
kert
ocompl
etehi
sjobont
ime.

3.
Pri
nci
plesofdi
sci
pli
ne:
-Di
sci
pli
ner
efer
stogener
alr
ules
,
regul
ati
ons f
or sy
stemat
ic wor
king i
n an or
gani
zat
ion
 .
disci
pli
nedoesnotmeanonl
yrul
esandr
egul
ati
onsbuti
t
al
so mean dev
elopi
ng commi
tment i
n t
he empl
oyees
t
owar
dsor
gani
zat
ionaswel
last
owar
dseachot .
her

4.Pr
inci
plesofuni
tyofcommand:
-Accor
dingt
othi
spr
inci
ple
an empl
oyee shoul
drecei
ve or
der
sfr
om one boss onl
y
becausei
fhei
srecei
vi
ngor
der
sfr
om mor
ethanoneboss
t
henhewi
l
lgetconf
usedandwi
l
lnotbeabl
etounder
stand
t
hatwhoseor
der
smustbeexecut
edf
ir
standont
heot
her
hand,i
fhei
srecei
vi
ngor
der
sfr
om mor
ebossesheget
s
chance t
o gi
ve excuses bysay
ing t
hathe was busyi
n
execut
ingt
heor
der
sofot
herboss.

5.Uni
tyofdi
rect
ion:-Accor
ding t
othi
spr
inci
ple“
one uni
t
meansonepl
an”t
hati
stheef
for
tsofal
lthemember
sand
empl
oyeesofor
gani
zat
ionmustbedi
rect
edt
owar
dsone
di
rect
iont
hati
stheachi
evementofcommongoal
.Ift
his
pr
inci
plei
sappl
i
edi
tleadst
ocoor
dinat
ion.Eachdepar
tment
andgr
ouphav
ingcommonobj
ect
ivemusthav
eoneheadand
onepl
anonl
y.

Forexampl
e:-I
fanor
gani
zat
ioni
spr
oduci
ngdi
ff
erentl
i
nes
ofpr
oduct
s-cosmet
ics,medi
ci
nesandconf
ect
ionar
yit
ems
each pr
oducthasi
tsown mar
ketand i
tsown busi
ness
env
ironment
.Eachdi
vi
si
onmustpl
ani
tst
argetandev
ery
 empl
oyeeoft
hatdi
vi
sionmustputhi
sef
for
tst
owar
dst
he
achi
evementofpl
anoft
hei
rdi
vi
sionundert
hedi
rect
ionof
oneheadonl
y.

6.Subor
dinat
ion ofI
ndi
vi
dualI
nter
estt
o Gener
alI
nter
est
:-
Accor
dingt
othi
spr
inci
plet
hei
nter
estofor
gani
zat
ionmust
super
sedet
hei
nter
estofi
ndi
vi
dual
sorempl
oyees.I
nthe
or
gani
zat
ion al
lthe empl
oyees ar
e wor
king wi
th some
obj
ect
ivesandt
her
eisal
way
sanobj
ect
iveofor
gani
zat
ion.I
f
t
heobj
ect
ivesofi
ndi
vi
duali
nter
estar
eint
hesamedi
rect
ion
ofor
gani
zat
iont
hent
her
eisnopr
obl
em buti
ftheobj
ect
ives
ofbot
hthegr
oupsar
eindi
ff
erentdi
rect
ionst
henmanager
mustt
ryt
oreconci
l
eindi
vi
duali
nter
estwi
thor
gani
zat
ional
goalandi
fiti
snotpossi
blet
heni
ndi
vi
dualgoalmustbe
sacr
if
icedf
orachi
evi
ngor
gani
zat
ional
goal
.

Forexampl
e:-i
findi
vi
dual
’
sobj
ect
ivei
stoear
nremuner
ati
on
andor
gani
zat
ioni
sgoi
ngt
hrought
hesi
tuat
ionoff
inanci
al
cr
isi
sandhast
heobj
ect
iveofcut
ti
ngdownt
heexpenses.I
n
t
hissi
tuat
iont
hei
ndi
vi
dualmustsacr
if
icehi
sint
erestas
whenor
gani
zat
ionwi
l
lcomeoutf
rom f
inanci
alcr
isi
sthenhe
canachi
evehi
sobj
ect
ive.

7.Pr
inci
ple ofr
emuner
ati
on ofper
sons:Accor
ding t
othi
s
pr
inci
pleempl
oyeesi
ntheor
gani
zat
ionmustbepai
dfai
rl
yor
 adequat
ely t
o gi
ve t
hem maxi
mum sat
isf
act
ion. The
r
emuner
ati
onmustbej
ustandf
airbecausei
fempl
oyeesar
e
under
pai
dtheywi
l
lnotbesat
isf
iedandanunsat
isf
iedper
son
cannev
ercont
ri
but
ehi
smaxi
mum.Di
ssat
isf
act
ionwi
l
llead
t
oincr
easei
nempl
oyee’
stur
n-ov
er.

8.Pr
inci
pleofcent
ral
i
zat
ionanddecent
ral
i
zat
ion:
-
cent
ral
i
zat
ionr
efer
stoconcent
rat
ionofaut
hor
it
yorpoweri
n
f
ewhandsatt
het
opl
evel
.Decent
ral
i
zat
ionmeansev
enl
y
di
str
ibut
ionofpoweratev
eryl
evel
ofmanagement
.
Accor
dingt
ofay
olacompanymustnotbecent
ral
i
zedor
compl
etel
ydecent
ral
i
zedbutt
her
emustbecombi
nat
ionof
bot
hdependi
ngupont
henat
ureandsi
zeoft
heor
gani
zat
ion.
Forexampl
e:-t
hemaj
ordeci
sionsandact
ivi
ti
esofset
ti
ngup
or
gani
zat
ional
goal
s,pl
ans,
pol
i
cies,
str
ategi
escanbe
cent
ral
i
zedbutt
her
ecanbepol
i
cyofdecent
ral
i
zat
ionf
ort
he
act
ivi
ti
esofr
out
inewor
ksuchaspur
chaseofr
awmat
eri
al,
f
ixi
ngt
arget
sofwor
ker
set
c.

9.Pr
inci
pleofscal
archai
n:-Scal
archai
nmeansl
i
neofaut
hor
it
y
orchai
nofsuper
ior
sfr
om hi
ghestt
olowestr
ank.Fay
ol
i
nsi
stst
hatt
hischai
nmustbef
oll
owedst
ri
ctl
yint
he
or
gani
zat
ion.Ev
eryi
nfor
mat
ionmustpasst
hroughev
erykey
oft
hischai
n,noski
ppi
ngofanyonekeyshoul
dbeal
l
owed.
10.
Pri
nci
pleofor
der
:-I
nthi
spr
inci
pleor
derdoesnotmean
commandbuti
tref
erst
oor
der
lyar
rangementofmenand
mat
eri
alt
hati
saf
ixedpl
acef
orev
ery
thi
ngandev
ery
onei
n
t
heor
gani
zat
ion.Fay
oli
nsi
stst
hatt
her
emustbeaf
ixed
pl
acet
okeepmat
eri
alandt
hingusedi
ntheor
gani
zat
ionand
f
ixedpl
aceorseatorcabi
nforev
eryempl
oyeeoft
he
or
gani
zat
ionsot
hatnot
imeandener
gyi
swast
edi
nsear
ch
ofanymat
eri
aloranyper
son.

Forexampl
e:i
fawor
keri
sinneedofat
ool
hemustknowi
n
whi
chboxort
ool
-r
oom i
twi
l
lbef
oundandi
fheneeds
gui
dancef
rom super
visorhemustknowt
hef
ixedcabi
nof
super
visor
.Ifnof
ixedpl
acei
sgi
vent
henwor
kerwi
l
lwast
e
hi
sti
meandener
gyi
nsear
choft
ool
sorsuper
visor
.

11.Pr
inci
ple ofequi
ty:Equi
tyr
efer
sto ki
nd,f
airand j
ust
t
reat
mentt
oempl
oyees.Empl
oyeeswi
l
lputt
hei
rmaxi
mum
ef
for
tsonl
ywhent
heyar
etr
eat
edwi
thki
ndnessandj
ust
ice.
Forexampl
e:-t
her
ulesf
orgr
ant
ingmedi
call
eav
etoan
empl
oyeeshoul
dbesamei
rr
espect
iveoft
hei
rposi
ti
on,
grade
orgender
.

12.St
abi
l
ityoft
enur
eofper
sonnel
:
-Itr
efer
stonof
requent
t
ermi
nat
ion and t
ransf
er.Accor
ding t
othi
s pr
inci
plet
he
managementmustpr
ovi
det
hef
eel
i
ngofj
obsecur
it
yamong
 t
heempl
oyeesbecausewi
tht
hef
eel
i
ngofi
nsecur
it
yfort
he
j
ob,t
he empl
oyees cannot cont
ri
but
ethei
r maxi
mum.
Fr
equentt
urnov
erofempl
oyeesi
sbadf
oror
gani
zat
ionand
such deci
si
on must be t
aken when t
hey ar
e al
most
unav
oidabl
e.

13.Pr
inci
pleofi
nit
iat
ive:
-ini
ti
ati
vemeanst
hecapaci
tyt
owor
k
whi
l
e expr
essi
ng one’
sthought
s.Fay
olsuggest
ed t
hat
empl
oyeesi
ntheor
gani
zat
ionmustbegi
venanoppor
tuni
ty
t
otakesomei
nit
iat
ivei
nmaki
ngandexecut
ingapl
an.I
t
gi
ves i
mmense sat
isf
act
ion t
o empl
oyees.So manager
s
mustwel
come t
he suggest
ions and i
deas ofempl
oyees
bef
oref
rami
ngt
hepl
an.

14.Pr
inci
pleofespr
itdecor
ps:
-espr
itDeCor
psmeansuni
on
i
s st
rengt
h.Fay
olemphasi
zed on t
he t
eam wor
k.He
suggest
ed t
hatev
eryempl
oyee i
nthe or
gani
zat
ion must
consi
derhi
m asapar
tormemberofat
eam andt
ryt
o
achi
evet
het
eam goalbecauset
eam cont
ri
but
ioni
sal
way
s
bet
terandmor
ethani
ndi
vi
dual
cont
ri
but
ion.

Forexampl
e:-i
fthepr
oduct
ionmanagerassi
gnedat
argetof
manuf
act
uri
ng 100 uni
tst
o a gr
oup of 10 member
s,
member
sdi
vi
dedt
het
argetamongt
hemsel
vest
opr
oduce
10uni
tseach,
pri
nci
pleoft
eam spi
ri
tsay
sthateachmember
 oft
hegr
oupshoul
dnotconcent
rat
eonl
yoni
ndi
vi
dualt
arget
of10uni
tsbutt
heymustconcent
rat
eonachi
evi
nggr
oup
t
argetof100uni
tssoi
ftwowor
ker
soft
hatgr
oupf
allsi
ck,
t
hent
heot
herei
ghtmember
smustdi
vi
det
hei
rindi
vi
dual
s
t
argetamongt
hemsel
vesandt
ryt
oachi
evet
het
argeti
fthei
r
gr
oup.

Bur
eaucr
ati
cManagement

MaxWeber
,Ger
mansoci
alsci
ent
ist
,adv
ocat
edt
hebur
eaucr
ati
c
appr
oachmanagement
.Weberwasoft
hev
iew t
hatst
ri
ctr
ules
shoul
dbef
ramedt
oel
i
minat
emanager
iali
nconsi
stencybecause
i
nconsi
stencybr
eedsi
nef
fi
ciency
.Mor
eov
er,hef
eltt
hatsuccess
i
n a bi
g or
gani
zat
ion was possi
ble onl
y wi
tht
he hel
p of
bur
eaucr
ati
cmanagement
.

Feat
uresofBur
eaucr
ati
cManagement

Pr
A. operdi
vi
sionofwor
k:-Pr
operdi
vi
sion ofwor
k
meansdi
str
ibut
ionofwor
kont
hebasi
sofspeci
ali
zat
ion.I
t
meansani
ndi
vi
dualshoul
dbeal
l
ott
edt
hewor
kinwhi
chhe
speci
ali
zes.

B.Cl
earhi
erar
chyofAut
hor
it
y:-Theaut
hor
it
yoft
he
super
ior
sandt
hesubor
dinat
esshoul
dbecl
ear
lydef
ined.
Ev
eryempl
oyeei
sresponsi
blef
ort
hedeci
sionst
akenbyhi
m
 andhi
ssubor
dinat
es.

Sy
C. st
em ofr
ules:
-Cl
earr
ulesshoul
dbef
ramedt
ogov
ern
t
heact
ivi
ti
escar
ri
edonwi
thi
ntheor
gani
zat
ion.Theser
ules
shoul
dbest
ri
ctl
yimpl
ement
ed.

D.I
mper
sonalr
elat
ionsbet
weenpeopl
e:-Undert
he
appr
oach,
per
sonalr
elat
ionsshoul
dbei
gnor
ed.Rewar
dsar
e
gi
vennotonbasi
sofper
sonalr
elat
ionsbutont
hebasi
sof
ef
fi
ciency
.

Pr
E. omot
ionbasedoncompet
ence:
-Accor
dingt
othi
s
appr
oach,
thebasi
sofpr
omot
ionshoul
dbecompet
ence.

NEO-
CLASSI
CALAPPROACH
The basi
s oft
his appr
oach i
sthe cl
assi
calappr
oach.Undert
his
appr
oach,t
he cl
assi
calappr
oach has been pr
esent
ed wi
th some
modi
fi
cat
ions.

Themai
ndi
ff
erencebet
weent
hecl
assi
cal
andneo-
classi
cal
appr
oachi
s
r
egar
dingt
het
reat
mentofhumanr
esour
ce.

Undert
hecl
assi
calappr
oach,t
hehumanr
esour
cei
signor
edandmuch
 i
mpor
tancei
sgi
vent
owor
kandphy
sicalr
esour
ces.Ont
heot
herhand,
neo-
classi
calappr
oachunder
standst
hei
mpor
tanceofhumanr
esour
ce.
Theappr
oachhast
wobasi
cpi
l
lar
s:-

1.
Humanr
elat
ionsappr
oach

2.
Behav
ior
alsci
enceappr
oach

Humanr
elat
ionsappr
oach
Bot
hthesci
ent
if
icmanagementofTay
lorandadmi
nist
rat
ivemanagement
appr
oachoff
ayolhav
efai
l
edt
oincr
easet
hepr
oduct
ionef
fi
ci
encyand
wor
kpl
acehar
mony
.Themaj
orcauseoft
hei
rfai
l
urewasnott
ogi
ve
pr
operi
mpor
tance t
o human r
esour
ce.The or
igi
n ofhuman r
esour
ce
appr
oachi
smai
nlyduet
othi
sreason.Thef
amouspsy
chol
ogi
stEl
ton
may
opr
esent
edt
hehumanr
elat
i oach.
onappr

I
mpor
tanceorcont
ri
but
ionofHumanr
elat
ionsappr
oach

1.Ther
eisnor
elat
ionshi
pbet
weent
hecondi
ti
onsof
wor
kandpr
oduct
ivi
ty.

2.Thenon-
economi
crewar
dsdoaf
fectt
heef
fi
ciencyof
t
hewor
ker
s.

3.
Fact
orydoesnotsy
mbol
i
zeonl
yapl
ace,
buti
tisa
soci
alor
gani
zat
ion.Ther
efor
ethewor
ker
sshoul
dbe
 gi
vensoci
alsat
isf
act
ion.

4.Thepsy
chol
ogyofwor
ker
sisv
eryi
mpor
tant
.
Ther
efor
e,i
tshoul
dbepr
oper
lyunder
stood.

5.
Thewor
kershoul
dbeassoci
atedwi
thdeci
sion-
maki
ng.

6.Thehonorandsel
f-
respectoft
hewor
kershoul
d
al
way
sber
espect
ed.

7.
Ther
eshoul
dbepr
operar
rangementofr
estatr
egul
ar
i
nter
val
sdur
ingt
hewor
kinghour
s.

8.
Thewor
ker
sgetgr
eat
ersat
isf
act
ionbywor
kingi
n
gr
oups.

9.Thewor
ker
sshoul
dbekepti
nfor
medabout
ev
ery
thi
ng.

LI
MITATI
ONS
1.
Thi
sappr
oachpay
sgr
eat
erat
tent
iont
ohumanf
act
orandt
he
r
emai
ningf
act
orshav
ebeeni
gnor
ed.

2.
Iti
swr
ongt
othi
nkt
hatabusi
nessor
gani
zat
ioncanbe
est
abl
i
shedi
nthef
orm off
ami
l
ybecausepeopl
ehav
ing
 di
ff
erentr
eli
gions,
cast
esandi
nter
est
swor
kini
t.

3.
Iti
sdi
ff
icul
ttosat
isf
yal
ltheempl
oyeeswi
thnon-
economi
c
r
ewar
ds.

I
nconcl
usi
oni
tcanbesai
dthatt
hecent
ral
poi
nti
nthehuman
r
elat
ionsappr
oacht
omanagementi
sani
ndi
vi
dual
.Accor
ding
t
opr
oduct
ioncapaci
tyofasat
isf
iedmani
scompar
ati
vel
y
mor
e.

Behav
ior
alSci
enceAppr
oach
Thebehav
ior
alappr
oachi
snot
hingbutani
mpr
ovedv
ersi
onof
humanr
elat
ionsappr
oacht
omanagement
.Undert
his
appr
oacht
hest
udyofhumanbehav
iori
sgi
venmor
e
i
mpor
tancet
hant
hehumanr
elat
ions.

Thedet
ail
saboutt
hecont
ri
but
ionsmadebysomeoft
he
pr
opoundedofbehav
ior
alsci
enceappr
oachl
i
ket
his:
-

1.
Abr
aham Masl
ow:
Masl
owpr
esent
edt
heneedhi
erar
chy
pr
inci
ple.Accor
dingt
othi
spr
inci
ple,
theneedsofahuman
bei
ngar
evar
iedandt
hei
ror
dercanbedet
ermi
ned.The
momenti
sfi
rstneedi
ssat
isf
ied,
hest
art
sthi
nki
ngabouthi
s
secondneedandt
hechai
ncont
inues.I
nconcl
usi
oni
tcanbe
sai
dthathumanneedsactasamot
ivat
ionf
orhi
m.
2.
Freder
ickHer
zber
g:-Accor
dingt
oHer
zber
g,al
ongwi
tht
he
mot
ivat
orst
hemai
ntenancef
act
orsar
eal
sohel
pful
in
boost
ingt
heent
husi
asm oft
hewor
ker
s.

3.
Dougl
asMcGr
egor
:-McGr
egorhaspr
esent
edt
het
radi
ti
onal
appr
oachofmot
ivat
ionas‘
X’appr
oachandt
hemoder
n
appr
oachast
he‘
Y’appr
oach.

Concl
usi
on:
-

1.Theempl
oyeesshoul
dhav
eashar
eint
hemat
terofpol
i
cy
det
ermi
nat
ion.

2.Theempl
oyeesshoul
dbet
reat
edi
nahumanway
.

3.I
tist
hedut
yoft
hemanagert
obr
ingoutt
hel
atentt
alent
oft
heempl
oyees.

4.I
tist
hedut
yoft
hemanagert
opr
ovi
deaheal
thy
env
ironment
.

5.Thesy
stem ofsel
f-
disci
pli
nei
nst
eadoft
hei
mposed
di
sci
pli
neshoul
dbeadopt
ed.

MODERNAPPROACHES
Themoder
nappr
oacht
omanagementappr
oachwas
dev
elopedar
oundt
hey
ear1950.Thi
sappr
oachi
san
i
mpr
ovementuponbot
hthecl
assi
cal
andneo-
classi
cal
 appr
oach.Thi
sappr
oachhast
hreebasi
cpi
l
lar
s:

1.Quant
it
ati
veAppr
oach

2.Sy
stem appr
oach

3.Cont
ingencyAppr
oach

1.Quant
it
ati
veAppr
oach:Theappr
oachwaspr
opoundedby
C.
W Chur
chman.
Thecl
assi
cal
appr
oachl
ayst
ressupont
he
phy
sical
resour
ceswhi
l
etheneo-
classi
cal
appr
oachgi
ves
i
mpor
tancet
ohumanr
esour
ces.Bot
htheseappr
oachesar
e
si
l
entaboutsomeoft
hemostser
iouspr
obl
emsusual
l
yfaced
bymanager
s.t
hequant
it
ati
veappr
oacht
omanagemetmakes
somesuggest
ionst
osol
vedi
ff
erentpr
obl
emsf
aci
ngt
he
manager
s.I
ttel
l
sthemanager
stosol
vet
hei
rpr
obl
emswi
tht
he
hel
poft
hemat
hemat
ical
andst
atst
ical
for
mul
as.

Somespeci
alf
ormul
ashav
ebeenpr
epar
edt
osol
ve
manager
ial
probl
ems.ForExampl
e:-

1.Rat
ioanal
ysi
s

2.Gamet
heor
y

3.Theor
yofpr
obabi
l
ity

4.Li
nearPr
ogr
ammi
ng

5.St
ati
sti
cal
Qual
i
tyCont
rol
Themai
nobj
ect
ivei
stof
indoutasol
uti
onoft
hecompl
ex
pr
obl
emsf
acedbybi
gcompani
es.

3.Sy
stem Appr
oach

Thesy
stem appr
oachmeansagr
oupofsmal
li
nter
-r
elat
ed
uni
ts.Agr
oupofdi
ff
erentuni
tswhi
chmeansacompl
ete
uni
tiscal
l
edasy
stem,
whi
l
ethesmal
luni
tsar
eindi
vi
dual
l
y
cal
l
edsub-
syst
em.Accor
dingt
othesy
stem appr
oach,
the
whol
eor
gani
zat
ioni
sasy
stem andi
tsv
ari
ousdepar
tment
s
ar
eit
ssub-
syst
ems.

Al
lthesub-
syst
em wor
kinuni
son.

Forexampl
e:Scoot
eri
sasy
stem whi
chhasmanysub-
sy
stemsi
nthef
orm ofengi
ne.
gear
,wheel
body
,et
c.Al
l
t
hesesub-
syst
emsar
eint
er-
rel
atedwi
thoneanot
herandi
f
oneoft
hem f
ail
sthewhol
esy
stem st
opswor
king.
Ther
erf
ore,
thesuccessoft
hesy
stem dependsont
he
cooper
ati
onandef
fi
ci
encyoft
hesub-
syst
ems.

4.
Cont
ingencyorsi
tuat
ional
appr
oach:

I
tisani
mpor
tantmoder
nappr
oach.Themanager
sshoul
d
t
akedeci
si
onsnotaccor
dingt
opr
inci
plesbutaccor
dingt
o
t
hesi
tuat
ions.I
tmeanst
hatt
her
ecannotbeanysi
ngl
e
pr
inci
ple/
for
mul
a/manger
ial
act
ivi
tywhi
chcanbesui
tabl
ein
al
lsi
tuat
ions.I
tschi
efr
easoni
stheconst
ant
lychangi
ng
nat
ureofenv
ironment
.

Feat
uresofcont
ingencyAppr
oach

1.Themanager
ial
act
ioni
nfl
uencest
heenv
ironment
.

2.Themanager
ial
act
ionchangesaccor
dingt
othesi
tuat
ion.

3.Ther
eisessent
ial
l
ycoor
dinat
ionbet
weent
heor
gani
zat
ion
andenv
ironment
.