PRINCIPLES AND
PRACTICES OF
MANAGEMENT
LECTURE NOTES
, CONTENTS
Chapter Title Page No
I PRINCIPLES OF MANAGEMENT 5
II PLANNING 52
III ORGANIZING 62
IV ORGANIZATION - GROUPING AND DEPARTMENTATION 70
V STAFFING 77
VI DIRECTING 87
VII MOTIVATION 94
VIII COMMUNICATION 99
IX LEADERSHIP 109
X CONTROLLING 114
, CHAPTER - I
PRINCIPLES OF MANAGEMENT
OBJECTIVES
The chapter is formatted to familiarize the meaning, philosophy, characteristics, scope, nature,
principles, universality, effectiveness, elements and activity levels of management. The reader also gets an
opportunity to understand the theories of management, management process and coordination and
management levels.
INTRODUCTION
The large connotation attributed to the word manager or management stems from the manipulative
instinct of man. In another point of view man had tried from his very birth to control or try to remodel his
environment to suit his development. The exercise of attaining managerial control over his environment in
different fields resulted in the enhancement of interest in management. Every human being is a manager in one
field or the other throughout his life. Instinctively he would start using his will and ingenuity to curb and
manipulate the disadvantages and advantages in his environment and fashion it in such a way to assist the
achievement of his goals. Modern management got a fillip from the upsurge of science and technology.
Economic and industrial life became larger, far-flung, time consuming, round about, specialized and complex.
In other words, the whole scenario had to be managed with managerial skills and techniques.
MEANING OF MANAGEMENT
‘Management is the executive function that concerns itself with the carrying out of the administrative
policies laid down by administration. Management directs the active operations within the enterprise and
combines the work of the employees with the available capital equipment and materials to produce an
acceptable product. Management also markets the product or service according to the broad policies
established by administration. According to Dr. William R. Spriegal. “The Management also functions, in
carrying out the policies of administration, expand as the lower levels of supervision are reached while the
administrative function decreases in importance”.
WHY MANAGEMENT
We have, we believe, portrayed by now the nature of the economy, the social environment and the
trends, clearly to show the new and bewildering complexity which have developed rapidly in all forms of
business and economic management. It looks, inside industry or business (or for that matter, in agriculture, in
fact any sphere of economic administration), as if nothing happens, nothing moves unless it is contrived, set in
motion from the state of it, in short, unless it is managed. To cite certain obvious symptoms which strike an
observer from outside as a puzzle or enigma? Most of the industry in India is state-owned and state-managed.
It is the people’s own organization with the people’s own money. Nevertheless, there are widespread
5
, industrial problems (like overt strike or lockout); large loss of man-days (from ceasing work, go-slow, or just
loitering and non-work) in all cadres; resulting in colossal ineptitude; poor accountability; and general
mismanagement.
Management- the most Important Inputs
Management, always important in all spheres of economic activity, has never been of such critical
significance as today, as it plays a significant role in all sphere of economic activity. It is good to summarize
here some of the general and significant influences which have brought about this change.
1. Earlier individualistic society had now become amorphous.
2. There is a shift toward pluralism, of multiple competing interests, concentrated around power and
service centers.
3. The interface between all social and economic units, including the government machinery, is now
wider, more complex, demanding more managerial skill.
4. Industries and institutions are closer to people and vice versa. Whether as taxpayers, consumers,
beneficiaries or employees, people cannot be taken for granted.
5. In a macro sense the economy is much planned.
6. The economic laws and regulations are many and regulated, today. They often shift and change.
7. Meetings, conferences, consultations and the role of influence have grown enormously over the
years culminating in enormous contexts, liaison and coordination.
8. Systems refuse to work on an even keel.
9. At all levels of the management team, human element is more unpredictable than ever.
10. We seem to be at the cross road where individual’s rights and demands of factions vie and
compete, in devastating rivalries, with the common social interest.
11. Social accountability of business has developed as a growing consciousness. Governmental
machineries are there to enforce this accountability.
12. Professional management in farming and the small sector of the economy is either absent or in a
rudimentary stage.
13. In a developing economy the basic goals are known but largely unfulfilled. The critical constraints
are two (1) management of the resources and (2) making full use of vast untapped opportunities.
PHILOSOPHY OF MANAGEMENT
“Management’ denotes executive function of getting things done by others according to some
predetermined or pre-arranged policies or plans”. Management is the art of directing human activities and it
directs the active operations within the enterprise and combines the work of the employees with the available
equipment and materials for the accomplishment of certain common goals or purposes.
6
PRACTICES OF
MANAGEMENT
LECTURE NOTES
, CONTENTS
Chapter Title Page No
I PRINCIPLES OF MANAGEMENT 5
II PLANNING 52
III ORGANIZING 62
IV ORGANIZATION - GROUPING AND DEPARTMENTATION 70
V STAFFING 77
VI DIRECTING 87
VII MOTIVATION 94
VIII COMMUNICATION 99
IX LEADERSHIP 109
X CONTROLLING 114
, CHAPTER - I
PRINCIPLES OF MANAGEMENT
OBJECTIVES
The chapter is formatted to familiarize the meaning, philosophy, characteristics, scope, nature,
principles, universality, effectiveness, elements and activity levels of management. The reader also gets an
opportunity to understand the theories of management, management process and coordination and
management levels.
INTRODUCTION
The large connotation attributed to the word manager or management stems from the manipulative
instinct of man. In another point of view man had tried from his very birth to control or try to remodel his
environment to suit his development. The exercise of attaining managerial control over his environment in
different fields resulted in the enhancement of interest in management. Every human being is a manager in one
field or the other throughout his life. Instinctively he would start using his will and ingenuity to curb and
manipulate the disadvantages and advantages in his environment and fashion it in such a way to assist the
achievement of his goals. Modern management got a fillip from the upsurge of science and technology.
Economic and industrial life became larger, far-flung, time consuming, round about, specialized and complex.
In other words, the whole scenario had to be managed with managerial skills and techniques.
MEANING OF MANAGEMENT
‘Management is the executive function that concerns itself with the carrying out of the administrative
policies laid down by administration. Management directs the active operations within the enterprise and
combines the work of the employees with the available capital equipment and materials to produce an
acceptable product. Management also markets the product or service according to the broad policies
established by administration. According to Dr. William R. Spriegal. “The Management also functions, in
carrying out the policies of administration, expand as the lower levels of supervision are reached while the
administrative function decreases in importance”.
WHY MANAGEMENT
We have, we believe, portrayed by now the nature of the economy, the social environment and the
trends, clearly to show the new and bewildering complexity which have developed rapidly in all forms of
business and economic management. It looks, inside industry or business (or for that matter, in agriculture, in
fact any sphere of economic administration), as if nothing happens, nothing moves unless it is contrived, set in
motion from the state of it, in short, unless it is managed. To cite certain obvious symptoms which strike an
observer from outside as a puzzle or enigma? Most of the industry in India is state-owned and state-managed.
It is the people’s own organization with the people’s own money. Nevertheless, there are widespread
5
, industrial problems (like overt strike or lockout); large loss of man-days (from ceasing work, go-slow, or just
loitering and non-work) in all cadres; resulting in colossal ineptitude; poor accountability; and general
mismanagement.
Management- the most Important Inputs
Management, always important in all spheres of economic activity, has never been of such critical
significance as today, as it plays a significant role in all sphere of economic activity. It is good to summarize
here some of the general and significant influences which have brought about this change.
1. Earlier individualistic society had now become amorphous.
2. There is a shift toward pluralism, of multiple competing interests, concentrated around power and
service centers.
3. The interface between all social and economic units, including the government machinery, is now
wider, more complex, demanding more managerial skill.
4. Industries and institutions are closer to people and vice versa. Whether as taxpayers, consumers,
beneficiaries or employees, people cannot be taken for granted.
5. In a macro sense the economy is much planned.
6. The economic laws and regulations are many and regulated, today. They often shift and change.
7. Meetings, conferences, consultations and the role of influence have grown enormously over the
years culminating in enormous contexts, liaison and coordination.
8. Systems refuse to work on an even keel.
9. At all levels of the management team, human element is more unpredictable than ever.
10. We seem to be at the cross road where individual’s rights and demands of factions vie and
compete, in devastating rivalries, with the common social interest.
11. Social accountability of business has developed as a growing consciousness. Governmental
machineries are there to enforce this accountability.
12. Professional management in farming and the small sector of the economy is either absent or in a
rudimentary stage.
13. In a developing economy the basic goals are known but largely unfulfilled. The critical constraints
are two (1) management of the resources and (2) making full use of vast untapped opportunities.
PHILOSOPHY OF MANAGEMENT
“Management’ denotes executive function of getting things done by others according to some
predetermined or pre-arranged policies or plans”. Management is the art of directing human activities and it
directs the active operations within the enterprise and combines the work of the employees with the available
equipment and materials for the accomplishment of certain common goals or purposes.
6
