Principles Of

Management

Syllabus: Principle of Management

Management
Different Function
Planning
Organisation
Coordination
Controlling
Structure of an Industrial Organisation
Function of Different Departments

Management - Introduction
Art of Getting Work done through people, with satisfaction for

employer, employees and the public.

It is scientific basis because management techniques are

susceptible to measurement and factual determination.

Management does not frame policies, it only

implements/executes the policies laid down by administration.

Characteristics of a Management
To maintain discipline and to keep control over the employees.
To keep co-ordination among the staff at various levels.
It keeps sufficient watch and strict inspection.
Suggest new ideas and improvements.
To make arrangement of payments and keep all records.
To provide good training to staff and attaining high skill in all

fields.

Functions of Management
Forecasting
Organising
Motivating
Controlling
Leadership

Forecasting
It is Concerned with the estimation of quantities, the sales

forecast, cost, finance problem, capital expenditure, profit or loss

etc.
Then an alternative course of action is also considered
After selecting the most profitable course of action, planning is
started.

Planning
Planning means thinking before doing.
Before actual work is started it is decided :
What is to be produced?
How much is to be produced?
How to be produced?
When to be produced?
Who are to produce it?

Elimination of wastage of material, machinery and capital.

Organising
This function consists of material Organisation and human

Organisation.
Planning is done the next step is arrangement of :
Material
Money
Employees
Worker
For actual execution or manufacture

Directing
It means the system of directing the plan into operation.
The Director must have dynamic leadership and must guide the

subordinates.
The instructions must be simple, clear, complete and reasonable
and then as far as possible in writing.
The staff should be made conversant with the standard operating
procedures.

Motivation
The function of motivation is to find out the motives of work in

a man then he should be encouraged to do work by keeping his

moral high.
Motivation is the skill of manager and linked with coordination
or co-operation.

Coordination
This is the task of co-ordination to integrate and harmonize the

worker and the staff to achieve a common objective.

This is achieved by the skill of manager of supervisor etc.

Controlling
To see that the other functions are being performed perfectly

alright.
Match the actual performance with the plans.
Point out the defective work, rectify them and prevent recurrence.
Some Controls are:
Quality Control
Cost Control
Material Control
Production Control

etc.

Communication
Transmits the information and instruction to the concerned

parties, i.e., employees, customers, suppliers, shareholders and to

general public.
It must include the acceptance of good ideas coming form the
persons who are directly in touch with practical use

Leadership
All the manager should have the quality of leadership.

Decision Making
Most important functions of management.
As managers are required to take decision very frequently.
The efficiency of the concern, loss, profit etc., are affected by

these decisions.
Great amount of attention is required to be paid to this function.

Industrial Organisation
Organisation is the machinery which establishes the co-

ordination between administration and management.

Organisation combines the various people working together in a
factory.
It brings the various of production into the most effective cooperation.

Organisation Chart
Executive
Committee

Managing
Director

Secretarial and
Legal

Official
Records

Credit and
collection

Insurance and
Taxes

Marketing

Sales

Service

Advertisement

Manufacturing
Turing

Purchasing

Control

Engineering

Personnel

Recruitment

Training

Labour
Relaxation

Types and Structure of Industrial Organisation

Line, (or Military type or Scalar ) Organisation
Functional Organisation
Line and staff Organisation

Line Organisation
General
Manager

Forman
(Workers)

Chief
Officer

Production
Manager

Sales
Manager

Office
Staff

Shop
Manager

Sales Staff

Forman
(Workers)

Forman
(Workers)

Forman
(Workers)

Functional Organisation
General
Manager

Estimating
and Cost
Accountancy

Work
Manager

Design
Engineer

Maintenance

Supdt. Of
Production

Forman
(Workers)

Forman
(Workers)

Forman
(Workers)

Forman
(Workers)

Line and Staff Organisation

Production
Engineer

Share
Holders

Board of
Director

Personnel
Manager

Transport

Chief Account
Officer

Sales Manager

Cost
Accountant

Store Keeper

Managing
Director

General
Manager

Worker
Manager

Shop Manager

Company
Secretary

Engineer

Estimator

Rate Fixer

Purchase

Maintenance

Instimator

Forman
(Workers)

Departmentation
Departmentalization is the process of breaking down an

enterprise into various departments.

Identifying and grouping of similar activities on some
logical basis so that team of persons can be organized in
order to attain the objectives of the enterprise may be
called departmentation.

Departmentalization of different functions

Board of
Directors

General
Manager

Manufacturing
Department

Marketing
Department

Engineering
Department

Finance
Department

R&D
Department

Employee
Relation
Department

Relationship Between Individual Departments

Once the goal is decided, the function of various deptts. (e.g.

Planning, Production, Stores, Inspection and sales etc.) are to

be properly coordinated which will help in the best
utilization of resources like men, munchies and material etc.
Deficiency and defects are to be removed and the work is to
be pushed through the different departments.
Relationship among the various departments should be well
maintained.

Thanks