PRINCIPLE OF

MANAGEMENT –
ASSIGNMENT - 1
Term - 1
Assignment -1
Principles of Management -
Write about any process in your organization which can be related to any of the
management theories or principles and justify the same (refer to unit 2 of the
curriculum). (minimum words : 750, max words : 1000)

Term 1 (EPGDM)
 Introduction
What is Management

Management is science that date back many years ago, from 2900 BC in Egypt when it was used
to allocate and organize resources to build the Pyramids. In English language it means to act. In
business management is defined as the organization and coordination of resources in order to
achieve the pre defined business objectives. Management as a science cut across all
organizations setting both private and public, profit making and non-profit making.

Management refers to the planning, organizing, staffing, leading and controlling available
resources to achieve the strategic objectives of an organization. While management today has
many similarities with management in the pasts, the dynamic environment today, that comes
with globalization and constant changes in Technology and customers preferences. This has
forced organization to come up with more and broad management approaches that will be in
line with the current trends in order to have a competitive advantage over its competitors.
An understanding of the business and management theories will assist today professionals in
doing business in a defined and organized approach that will come up with strategies that are
clear and conceptually correct.
 Process in our Organization

Our organizational activities are divided into six functions :-

1. Technical: engineering, production, manufacturing,

adaptation.
2. Commercial: Buying, selling, exchange.
3. Financial: the search of optimum use of capital.
4. Security: protection of assets and personnel.
5. Accounting: stocktaking, balance sheets, costs, statistics.
6. Managerial: planning, organizing, commanding,
coordinating and controlling
Key functions that comprise managerial activities in our
organization are -

 Planning - This involves to create action plan by focusing on the type, priorities and environment
of the business. The plan should be flexible, continuous, relevant and accurate.

 Organizing - The sourcing and the use of resources, it involves responsibility and authority.
Managers ensure that the plan is well prepared and implemented according to the organization
objectives. Monitor and supervise both raw material and human resources.

 Coordinate - Involves determining the timing and sequencing of activities so that they match
and the evenly distribution of resources across the organization.

 Command - managers have command by gaining extensive information about their subordinates, in
order to know their strength and weakness. This assists managers in assigning tasks according to the
employee’s skills and strength. Managers could bring unity, direction and focus to the organization and
also lead by example.

 Controlling - This involves ensuring and checking that the plan is implemented and that
instructions are followed accordingly and monitoring any variance or deviation from the plan, and
periodically taking appropriate corrective action.
Principles for performing the managerial
functions in our organization
Division of Labor
Work is divided into small segments and delegated to workers with specialized skill; this enables
people to more efficient in doing their job.
Authority
In order to make decisions, it is the right for Managers to give orders and the power to exact
obedience and it goes hand in hand with responsibility.
Discipline
This is the amount of respect and obedience agreed between the organization and its
employees. Both managers and employees should honor their agreement.
Unit of Command
Subordinate should receive orders from one superior/Manager only. This comes from the one man
one Boss rule
Unit of Direction
Employees doing the same activities should have the same objectives.
Subordination of individual interest to general interest
The interest of the organization should be surpass those of employees. Just as the interest of any
agreed team objectives should come over individual’s interest.
Principles for performing the managerial functions

Remuneration
Employees should be paid fairly based on the amount of the work done by the employee.
Centralization
This refers to the extent to which decisions are concentrated to one particular level of the
organization. there is no one way of centralization or decentralization it depends on the size of the
organization.
Scalar Chain
This refers to the line of authority from top to bottom.
Order
All the activities should be structured to the point that everything and every person should be at the
right time and at the right place.
Equity
It is fairness and justice between the employer and the employee; it can also be referred to as the
combination of kindliness and justice in dealing with employees.
Initiative
Employees should be encouraged to come up with new creative and innovative ideas. This requires
the power and the freedom to make and implement new plans.
 Management Theories

The Management theories can mainly be divided

into 5 management approaches namely:

1. Frederick W. Taylor, the father of scientific

management;
2. Frank and Lillian Gilbreth and motion studies
3. Henry Gantt and his Gantt charts.
4. Fayol’s Administrative theory.
5. Max Weber theory of Bureaucracy.
The Administrative Theories of Management
The administrative theories of management were founded by Henri Fayol, who is
referred to as the founder and father of the classical management school. Fayol worked
for one company the whole of his career. The French mining and Metallurgical Combine
Comentry-Fourchamboult-Decazeville. He started as a mining engineer and in 1872 he
was promoted to be a Managing Director until his retirement in 1918. The financial
Health of the mining combine was in a poor state during the time Fayol began his
career. However, his massive success in developing and championing of the
organizational administrative principles, resulted to a great improvement to the financial
health of the mining combine by the time he retired.(Chartered management Institute).
He formally investigated the managerial behavior and believes in segmenting
management to small identifiable and manageable segments. Fayol believed in
management as a skill that can be taught by anyone to anyone on certain principles.
Fayol was the first to differentiate between technical and managerial skills (Wren,
1994). He believed that employees are required to be good in both the skills at all levels,
however he highlighted that technical skills are very important both at lower level and
management level. While managerial skills are more essential as employees move to
higher levels of management and responsibility within the organization.
Henri Fayol work resulted to the combination of management theory that formed the
bases of formal management education and training.
Fayol’s Fourteen Principles of
Management
1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interests to the general interest
7. Remuneration
8. Centralization
9. Scalar chain
10.Order
11.Equity
12.Stability of tenure of personnel
13.Initiative
14.Esprit de corps
Conclusion /Justification

Looking at the Fayol 14 principles of Management and comparing those once with the
current Manager function in our organization it can be concluded they are still part of the
management principles.
Organization have implemented organizational principles such as
1. decentralization - it decentralized its decisions to optimally respond to the needs of
consumers within their policies, strategic direction and operational efficiencies.
2. Division of Labor – Where work is divided into small segments and delegated to workers
with specialized skill; this enables people to more efficient in doing their job Also uses the
3. Unit of command principle - to manage team work by making sure that a team always
has a leader who assumes full responsibility.

Fayol administrative principles are used in modern management by several organizations.

They provided modern management with a strong framework of management principles to
build upon.
Thank You