Exciting new resources for readers:

The 3rd edition of Principles of Management Essentials You Always

Wanted To Know has some exciting new additions!

• This edition has a new chapter called International Business

and Management. In this chapter, you will get a peek into
the possibilities of taking your business international and the
various factors that will stimulate its growth or inhibit it.

• Each chapter has concise ‘Key Learning Objectives’ that will

give you an overview of what you will learn in the chapter.

• Each chapter has 5 multiple-choice quizzes to test your

knowledge and complete the circle of learning.

Vibrant Publishers is committed to publishing books that are content-

rich, concise, and approachable, enabling more readers to read and
make the fullest use of them. We hope this book provides you with
the most enriching learning experience.

Feel free to email us at [email protected] if you have

any questions/suggestions.
 SELF-LEARNING MANAGEMENT SERIES

PAPERBACK*
TITLE
ISBN

ACCOUNTING, FINANCE & ECONOMICS

COST ACCOUNTING AND
9781636511030
MANAGEMENT ESSENTIALS

FINANCIAL ACCOUNTING ESSENTIALS 9781636510972

FINANCIAL MANAGEMENT ESSENTIALS 9781636511009

MACROECONOMICS ESSENTIALS 9781636511818

MICROECONOMICS ESSENTIALS 9781636511153

PERSONAL FINANCE ESSENTIALS 9781636511849

ENTREPRENEURSHIP & STRATEGY

BUSINESS PLAN ESSENTIALS 9781636511214

BUSINESS STRATEGY ESSENTIALS 9781949395778

ENTREPRENEURSHIP ESSENTIALS 9781636511603

GENERAL MANAGEMENT
BUSINESS LAW ESSENTIALS 9781636511702

DECISION MAKING ESSENTIALS 9781636510026

LEADERSHIP ESSENTIALS 9781636510316

PRINCIPLES OF MANAGEMENT ESSENTIALS 9781636511542

TIME MANAGEMENT ESSENTIALS 9781636511665

*Also available in Hardback & Ebook formats
 SELF-LEARNING MANAGEMENT SERIES

PAPERBACK*
TITLE
ISBN

HUMAN RESOURCE MANAGEMENT

DIVERSITY IN THE WORKPLACE ESSENTIALS 9781636511122

HR ANALYTICS ESSENTIALS 9781636510347

HUMAN RESOURCE MANAGEMENT ESSENTIALS 9781949395839

ORGANIZATIONAL BEHAVIOR ESSENTIALS 9781636510378

ORGANIZATIONAL DEVELOPMENT ESSENTIALS 9781636511481

MARKETING & SALES MANAGEMENT

DIGITAL MARKETING ESSENTIALS 9781949395747

MARKETING MANAGEMENT ESSENTIALS 9781636511788

SALES MANAGEMENT ESSENTIALS 9781636510743

SERVICES MARKETING ESSENTIALS 9781636511733

OPERATIONS & PROJECT MANAGEMENT

AGILE ESSENTIALS 9781636510057

OPERATIONS & SUPPLY CHAIN

9781949395242
MANAGEMENT ESSENTIALS

PROJECT MANAGEMENT ESSENTIALS 9781636510712

STAKEHOLDER ENGAGEMENT ESSENTIALS 9781636511511

*Also available in Hardback & Ebook formats
This page is intentionally left blank
 TM

SELF-LEARNING MANAGEMENT SERIES

PRINCIPLES OF
MANAGEMENT
ESSENTIALS
YOU ALWAYS WANTED TO KNOW

A pragmatic guidebook for ushering into the role of a manager

CALLIE DAUM
Principles of Management
Essentials You Always Wanted To
Know
Third Edition

© 2022, By Vibrant Publishers, USA. All rights reserved. No part of this publication
may be reproduced or distributed in any form or by any means, or stored in a database
or retrieval system, without the prior permission of the publisher.

Paperback ISBN 10: 1-63651-154-6

Paperback ISBN 13: 978-1-63651-154-2

Ebook ISBN 10: 1-63651-155-4

Ebook ISBN 13: 978-1-63651-155-9

Hardback ISBN 10: 1-63651-156-2

Hardback ISBN 13: 978-1-63651-156-6

Library of Congress Control Number: 2018903899

This publication is designed to provide accurate and authoritative information

in regard to the subject matter covered. The Author has made every effort in the
preparation of this book to ensure the accuracy of the information. However,
information in this book is sold without warranty either expressed or implied. The
Author or the Publisher will not be liable for any damages caused or alleged to be
caused either directly or indirectly by this book.

Vibrant Publishers books are available at special quantity discount for sales
promotions, or for use in corporate training programs. For more information please
write to [email protected]

Please email feedback / corrections (technical, grammatical or spelling) to

[email protected]

To access the complete catalogue of Vibrant Publishers, visit

www.vibrantpublishers.com
 About the Author
Callie Daum has worked in the
healthcare industry for over 20 years
gaining experience in managing teams,
project management, strategic
development and implementation,
business marketing to increase revenues,
and many more lessons learned on how
to thrive in a business industry. As a
seasoned Senior Project Manager and
Leader, her goals include adding value, working efficiently and
effectively, and sharing best practices to achieve overall success.
Callie started her career as an Application Analyst at Computer
Sciences Corporation, before moving on to project management
and leadership at Cerner Corporation, Atrium Health, and Novant
Health. Callie is a certified Project Management Professional,
Professional Scrum Master, Certified Health Coach, and received a
certificate in Master Level Six Sigma at Villanova University.
Other contributors
We would like to thank Prof. Fernando Pargas
for contributing the chapter 'International
Business and Management.' Fernando is a
Management Professor at James Madison
University and has taught various subjects like
International Marketing, International
Management, Business Strategy, and
Organizational Behavior. He was a member of
the United States Chamber of Commerce International Policy
Committee.

We would like to thank Dr. Mark Koscinski for contributing

text on Decision Making Techniques in Chapter 3, Planning and
Decision Making. Dr. Mark Koscinski CPA D.Litt. is an assistant
professor of accounting practice at Moravian College in Bethle-
hem, Pennsylvania where he teaches a wide variety of accounting
and management courses. Prior to joining Moravian College,
Mark had significant experience in public and private accounting.
He has been the chief financial officer of a publicly traded defense
contractor and a privately held toy company.
 What experts say about this book!
The book is a comprehensive coverage of what one would like to know
about management and its sub disciplines. Students and managers will
find the book very useful as it is an easy and simple read. The topics
covered are current and provide appropriate depth with examples.

– Subrat Sarangi, Fellow in Management

XLRI, Jamshedpur

The author Callie Daum and other contributors have maintained a

comprehensive layout and lucid language with adequate content
throughout the book. The chapter summaries will suffice the students to
retrieve the full contents of the entire chapter in an invigorating way. The
quizzes at the end of each chapter will work as an intellectual exercise to
the students and professionals alike.
This will be a valuable document for the undergraduate and
postgraduate students and a guide to a spectrum of learners from those
in the foundation stage to the practicing professionals.
– K.X. Joseph, Dean, Faculty of Commerce & Professional Studies,
Rajagiri College of Social Sciences

This book teaches practical business terms and concepts that every
businessman should know in a simple and understandable language. As
a teacher, I would suggest all the entry level management students to
read this book, to clearly understand management terminologies with no
confusion.

– Rajkalaiselvi M, Assistant Professor,

Justice Basheer Ahmed Sayeed College for Women
 What experts say about this book!
The book is easy to comprehend. It covers topics which are useful to
both management experts and new managers alike. The short and
concise texts with illustrations makes this book engaging. I shall be using
this book for my management courses.

– Manish Kiling, Assistant Professor

Gauhati University

Principles of Management has covered all the aspects of management

and is easy to understand even by an undergraduate student. This book
will be useful for undergraduate students, managers, teachers and
research scholars. It can be prescribed for undergraduate courses too.
The Self-Learning Management series as a whole would be a great help
for the student as well as the professional community.

– Mrs. Ritika Waghray, Assistant Professor

St.Joseph's Degree & PG College

Callie Daum’s Principles of Management Essentials book provides

startup founders and management students a thorough understanding
of managerial concepts. It is simple to understand, well-structured with
flow charts and covers a wide range of business topics such as Human
Resource Management, Quality Management, Customer Relationship
Management and International Business and Management. This book
guides the readers through the real-world application of management
skills. All the books in the Self- Learning Management series of Vibrant
Publishers give clear insights on all subject areas of management, and
can be used by undergraduate and postgraduate students.

– K.Mathumathi, Assistant Professor,

Agurchand Manmull Jain College
 What experts say about this book!
This book has a relatively complete compilation of managerial
information. "Principles of Management Essentials You Always Wanted
to Know" is an exceptional book that covers all of the pertinent and most
important components of the management stream. In today's global
context, such publications help managers be better leaders and provide
vital guidance in this modern era. The wider typography, as well as the
inclusion of charts, graphs, and illustrations makes the book very reader-
oriented. This will undoubtedly be one of the best management books
for students, researchers, entrepreneurs, marketers, and even beginners
because it combines contemporary knowledge with simple language.
I would strongly suggest this book to my students, colleagues, and
aspiring managers.

– Hetal Rathod, Assistant Professor

Gujarat Technological University

Principles of Management Essentials by Callie Daum, a book in the Self-

Learning Management series lives up to the promises made. It covered
18 broad essential topics for a manager to refer to in the discharge of
their responsibilities. The focus on the basics of communication and
change management reflects the need of the hour for managers. The
team management and group handling skills needed is rounded off with a
discussion on organization culture.
The author has done an appreciable job of bringing together the topics
in a practical manner. The book is easy to read and will help not only self
learning managers but also management students as a ready reckoner.
The book addresses a niche need of understanding the concepts driving
managers in the data driven dynamic business arena. It is a must read
for any one looking to learn the latest thoughts on essential areas of
management literature.

– Dr. Nagapavan Chintalapati

Central University of Jharkhand
This page is intentionally left blank
 Table of Contents
1 Introduction to Management 1
1.1 Management Types 2
1.2 Authority 4
Chapter Summary 6
Quiz 8

2 Functions of Management 11
2.1 Planning 12
2.2 Organizing 13
2.3 Leading 14
2.4 Controlling 14
Chapter Summary 15
Quiz 16

3 Planning and Decision Making 19

3.1 Define the Problem 20
3.2 Gather Information 21
3.3 Identify the Options 21
3.4 Consider the Data 21
3.5 Choose an Alternative 22
3.6 Implement 28
3.7 Review Your Decision 28
Chapter Summary 30
Quiz 31

4 Leaders vs. Managers 35

4.1 Managerial Traits vs. Leader Traits 36
4.2 Am I a Manager and a Leader? 38
Chapter Summary 40
Quiz 41
5 Organizational Charts and Structure 43
5.1 Functional 44
5.2 Divisional 46
5.3 Matrix 47
5.4 Team Based 48
5.5 Network 48
5.6 Modular 49
5.7 Organizational Design 50
Chapter Summary 52
Quiz 53

6 Budgeting 55
6.1 Types of Budgets 57
6.2 Special Budgets 60
6.3 Other Budgeting Methods 60
6.4 Budgeting Considerations 61
Chapter Summary 63
Quiz 64

7 Problem Solving 67
7.1 Define the Problem 68
7.2 Understanding Intricacies 71
7.3 Processes to Aid in Problem Solving 75
Chapter Summary 77
Quiz 78

8 Group Dynamics 81
8.1 Stages of Group Development 83
8.2 Group Types 85
8.3 Factors in Group Behavior 86
8.4 Causes of Poor Group Dynamics 91
Chapter Summary 93
Quiz 95
9 Converting a Group to a Successful Team 97
9.1 Group vs. Team 98
9.2 Approaches to Improving Team Dynamics 101
Chapter Summary 104
Quiz 105

10 Conflict Resolution 107

10.1 Types of Conflict 108
10.2 Healthy vs. Unhealthy Conflict Management 109
10.3 Conflict Management Strategies 110
Chapter Summary 116
Quiz 117

11 Communication 119
11.1 Communication Process 120
11.2 Communication Types 122
11.3 Barriers to Effective Communication 124
11.4 Managerial Communication 126
11.5 General Listening 128
11.6 Active Listening 131
11.7 Tips to Remember about Communication 134
Chapter Summary 136
Quiz 138

12 Change 141
12.1 Change Management Plan 144
12.2 Change Management Tools 147
Chapter Summary 151
Quiz 152
13 Organizational Culture 155
13.1 Specific Types of Organizational Culture 156
13.2 Importance of Culture 158
13.3 What Influences Culture? 159
13.4 Disadvantages of Culture 161
13.5 Open Door Policy 162
Chapter Summary 163
Quiz 165

14 Total Quality Management 167

14.1 Plan 169
14.2 Do 169
14.3 Check 170
14.4 Act 170
14.5 Aspects of TQM 170
14.6 TQM Tools 172
14.7 Production vs. Operations Management 176
Chapter Summary 178
Quiz 179

15 Operations 181
15.1 Role of Technology 183
Chapter Summary 186
Quiz 187

16 People Management 189

16.1 Staffing Process 191
16.2 Staffing Challenges 193
16.3 Recruiting Staff 195
16.4 Selecting the Right Employee 197
16.5 Onboarding New Employees 202
16.6 Performance Management 206
Chapter Summary 210
Quiz 211
17 Customer Relationship Management 215
17.1 Defining Customer Relationship 218
17.2 Types of Customers 219
17.3 Customer Orientation 221
17.4 Ensuring Quality Customer Relationships 222
17.4 Measuring Customer Relationships 224
Chapter Summary 232
Quiz 233

18 International Business and Management 237

18.1 Why is International Trade Needed? 238
18.2 Forms of Global Business 239
18.3 Domestic vs. International Business: What is the
Difference? 241
18.4 Cultural Differences 242
18.5 What type of an International Manager should
you be? 245
18.6 How to Choose Where to Expand Internationally 246
Chapter Summary 247
Quiz 249
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 Preface
Many managers will tell you that their first experience with
management was the most challenging. Often, employees are
recognized for their exemplary performance and are promoted
to a manager role. It is assumed that since the employee
performed well at their line worker job, they will perform just as
well in a management role. What most people do not take into
consideration is that the skillset to be a great employee and the
skillset to be a great manager are two completely separate things.
Some may say they are qualified because they studied it in school
but, again, studying and experiencing are two totally different
things. So, how do you succeed in this new role of manager
knowing that the cards are somewhat stacked against you?

Principles of Management Essentials You Always Wanted To

Know seeks to guide you in answering this question. This book
consists of core elements of management and being a manager
how to support day-to-day activities. New managers may be
faced with challenges such as rebuilding a team, developing
performance appraisals, dealing with customer complaints, and
providing feedback to employees. These items are included
in this book along with several other elements to help anyone
understand and function in their role of manager. Using real life
experiences and detailed study, this book will give you the tools to
get started in your management role.
This page is intentionally left blank
 Introduction to the book
Management role requires the ability to get things done through
teams and individuals. Though managers hold recognized
positions of authority in the organization, for a manager to
become a leader, he/she needs to develop several qualities and
traits.

Management can be effective only if authority, responsibility,

and information flow within the organization and are in place.
This is possible only if there is a proper organizational structure.
With their respective teams, an organization uses time, money,
and other resources, effectively and efficiently through budgeting
activities. Another activity of importance is problem-solving. This
pertains to analyzing a larger problem at hand by understanding
its intricacies. This is possible only if the manager is confident in
making rational and sound decisions.

This book familiarizes the reader with different levels of authority,

leadership effectiveness, managerial effectiveness, decision-
making, budgeting, organizational structures, and other functions
of management.

While working in an organization, a manager is expected to work

with different groups and teams successfully. If a manager is
acquainted with group dynamics, it is easier for him/her to handle
a team as well as conflicts for the betterment of the organization. A
manager should be aware of barriers to effective communication.
Therefore, managerial communication is at the core of every
effective organization.

Apart from the focus on managerial functions, roles,

responsibilities, and challenges, this book elaborately discusses
Organizational Culture, Total Quality Management, Operations
Management, People Management, and Customer Relationship
Management. This book deals with all such essentials of
management and the principles associated with it. In this edition,
a new chapter on International Business and Management and
quizzes for each chapter are also included.

After going through this book completely, you will be able to:

● Appreciate how the management concepts are built on

useful principles that help to achieve any organization’s
objectives and goals but also facilitate holistic development
of all stakeholders.

● Understand that a manager should know the basics of

planning, strategizing, organizing, and controlling apart
from the techniques of developing and leading a team.

● Accept that, what a manager could achieve through

authority accompanying the position in any organization, a
leader could achieve by inspiring people.

● Understand the role of organizational charts and structures

in achieving the mission of an organization and the impact
of organizational culture on the employees and their
relationships internally.

● Know that to improve the cohesion of a team, a manager is

expected to resolve conflicts cropping up within and outside
the team in an organization by adopting various conflict
management strategies.

● Understand that communication plays a vital role whenever

a change happens in an organization and an effective
change management plan prepares the personnel of an
organization to successfully sail through the change.
● Appreciate that the largest and most challenging managerial
role is in people management

● Understand that Total Quality Management gives every

employee a part in the process of ensuring superior
products or services.

● Learn the intricacies of International Business and

Management as well as the need for expanding the business
globally and acquiring the skill set required for the same.
This page is intentionally left blank
 Who can benefit from the book?
● Any functional specialist, aspiring for a managerial position
to understand and grasp the fundamentals of management
concepts quickly.

● Middle and Front line Managers to understand the nuances

of various concepts and apply them in their day-to-day
work to infuse further quality in their work environment.

● As a reference material to research scholars in management

studies.

● Faculty members, professors, and students of management

education courses.

How to use this book?

This book provides insights into management principles and acts
as a ready reckoner to understand the essential aspects of those
principles.

● As the essentials of Management are intertwined, reading

the chapters in chronological order will provide a smooth
understanding; however checking out a relevant chapter
can also be done, as the chapters address the subject matter
comprehensively.

● MCQs under each chapter will not only test your

understanding but also act as a quick refresher on the topics
covered.
This page is intentionally left blank
Chapter 1

Introduction to Management

M anagement is the process of efficiently and

effectively accomplishing organizational tasks
and goals with and through other people. This definition of
management seems simplistic but the actual performance
of the role of management is very complicated. In fact,
management is very different from a functional specialist role
and can prove to be very challenging. If you strive to succeed
and grow in your industry or if you are simply very good
at what you do, chances are you will be approached to fill a
management role. To be successful as a new manager, you
cannot rely on your exceptional technical skills.
Your management toolbox should be filled with
knowledge of how to get work accomplished through teams
and individuals, planning and strategizing, organizing,
controlling, and developing and leading a group as small as a
team or as large as an organization. As a manager, you must
know how to wear many hats in an organization including
negotiator, advocate, mentor, communicator, counselor,

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2 Principles of Management Essentials You Always Wanted To Know

conflict resolver, motivator, and so much more. This book is

designed to help you build your toolbox and know how and
when to wear one of the many hats required.

Key learning objectives of this chapter include the reader’s

understanding of the following:

● Roles and responsibilities of operative level staff to top-

level managers

● Types of authority

1.1 Management Types

Managerial roles are typically housed inside organizations.

Organizations are comprised of a group of people brought
together to carry out a specific purpose whether it is a for-profit,
not-for-profit or government. Organizations across the country
and around the world are easily identified by the goals they have
set, the structure put into place, and the people involved. An
organization’s personnel can be categorized as either operatives or
managers. Operatives work directly on jobs, tasks, or projects and
are not responsible for overseeing the work of others. Managers
are more focused on directing the activities of others.

Vertical or top down management defines the level at which an

employee is functioning within the organization. Levels include
top level managers, middle managers, first-line managers, and
operators. The biggest challenge of vertical management is the
flow of communication. Two-way communication is difficult to

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Introduction to Management 3

accomplish specifically when lower levels of the organization are

trying to communicate up to the top level.

Top-level managers make decisions about where the

organization is going and put into place policies that affect all
members of the organization. Examples of these managers are
the Chief Executive Officer (CEO), Chief Technology Officer
(CTO), Chief Financial Officer (CFO), etc. This group of executives
are commonly referred to as the “C-suite.” Some organizations
include their executive vice presidents and division heads
as a part of their top management team. These managers are
responsible for ensuring long term success for the organization.
They pay attention to internal and external environmental drivers
when developing long term strategies.

Middle managers exist between the first-line and top levels

of management. Examples of these managers are department
heads and directors. They act as liaison between the two levels
pushing down information to first-line managers and pushing
up information to top-level managers. They also take the “big
picture” strategic plans developed by the top-level managers and
break it down into operational plans for the first-line managers.
Middle management’s most critical role is implementing
directives from the top management team and supporting first-
line managers while they work with their teams to complete their
day to day activities.

First-line managers direct the day to day activities of

employees and are typically entry level roles. Examples of these
managers are assistant manager, shift manager, supervisor, office
manager, etc. These managers are the closest to the employees
and their activities. They are primarily responsible for ensuring
organizational plans are completed efficiently and effectively.
First-line managers are important because they are usually the
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4 Principles of Management Essentials You Always Wanted To Know

first to identify internal issues and problems with operations. For

this reason, it is critical that they are communicating frequently
with their managers.

1.2 Authority

Authority is the power or right to have others perform the tasks

and activities you need them to do. Essentially, authority allows
the holder to disperse the organization’s resources in a way that
will best achieve organizational goals and strategies. There are
three main types of authority that can be used in an organization:
line, staff, and functional.

Line
Managers have the ability to give employees reporting to
them (subordinates) orders or directives. These orders and
directives are issued to help efficiently and effectively achieve
the organization’s goals and objectives. Line authority is given to
managers who are directly accountable for departments or areas
within the organization to aid them in their required activities.
For example, an office manager has line authority over each
immediate subordinate according to the organization chart’s
reporting structure.

Staff
Staff authority is the right to assist or guide those who hold
line authority and other employees. Staff authority gives those
responsible for performing their tasks the ability to improve

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