BBA I Year Subject – Principles of Management
SYLLABUS
Class – B.B.A. I Year
Subject – Principles of Management
UNIT – I Definition and Meaning of Management, Functions and
Responsibilities of Management, Principles of
Management School & Thoughts of Management.
UNIT – II Planning : Process, types and Significance, Planning vs
Forecasting Objectives, strategies and Policies, MBO,
Decision making: process & Significance.
UNIT – III Organization: Nature and Purpose of organizating.
Importance and process of organizing.
Departmentation. Organizational structure: Types and
relevance. Line and staff relationship.
UNIT – IV Direction: Principles & Techniques, Motivation: types
& Significance, Maslow’s Need Hierchy, Theory X & Y
Motivation. Leadership: Styles and Importance.
UNIT – V Controlling: The system and process of controlling,
control techniques. Co-ordination: Meaning, Principles
and importance. External and internal Co-ordination.
45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, www.rccmindore.com
1
,BBA I Year Subject – Principles of Management
UNIT – I
Introduction of Management
Every human being has several needs and desires. But no individual can satisfy all his wants. Therefore,
people work together to meet their mutual needs which they cannot fulfil individually. Moreover, man
is a social being as he likes to live together with other people. It is by working and living together in
organised groups and institutions that people satisfy their economic and social needs. As a result there
are several types of groups, eg., family, school, government, army, a business firm, a cricket team and
the like. Such formal groups can achieve their goals effectively only when the efforts of the people
working in these groups are properly coordinated and controlled. The task of getting results through
others by coordinating their efforts is known as management. Just as the mind coordinates and
regulates all the activities of a person, management coordinates and regulates the activities of various
members of an organisation.
Management is getting things done with effectiveness and efficiency. It is designing and maintaining an
environment in which individuals working together accomplish selected aims efficiently.
Management is the first of the modern institutions to shape the society. It pays a vital role in modern world.
It regulates man’s productive energies. It organizes factors of production. Peter Drucker observes that
without the leadership of management, a country’s resources of production remain resources and never
becomes production. Management converts a mob into an organization, and human efforts into
performance. ‘Management’ is the catalyst which makes possible rapid economic and social development in
freedom and with human dignity.
MEANING OF MANAGEMENT
As the term ‘management’ is used in several contexts, it has different meanings to different people.
Management has three different meanings:
1. As a Noun
When used as a noun, management refers to all those who have both responsibility and authority to manage
an organization and who are responsible for the work of others at all levels. W.J. Reddin states that “a
manager is a person occupying a position in a formal organization who is responsible for the work of at least
one other and who has formal authority over that person. Persons, whose work he is responsible for, are his
subordinates.”
2. As a Process
Management is also tasks, activities and functions. As a process, management refers to what management
does, i.e., the function performed by management ‘Managing’ is considered as a process which may include a
variety of functions, principles, techniques, skills and other measures of accomplishing the work and
activities of organization. Management as a process implies a series of actions or elements. These are
planning, organization, staffing, directing, co-ordination etc.
3. As a Discipline
Sometimes, the word ‘management’ is used to connote the body of knowledge and practice. In this sense, it
becomes a separate subject, a field of learning, and an organized, formal discipline. It is young discipline.
DEFINITION OF MANAGEMENT
Management is the coordination of all resources through the process of planning, organising, directing
and controlling in order to attain stated objectives. —Henry L. Sisk.
Management is the art of knowing what you want to do and then seeing that it is done in the best and
cheapest way.
—F.W. Taylor
To manage is to forecast and to plan, to organise to command, to coordinate and to control.
—Henry Fayol
45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, www.rccmindore.com
2
,BBA I Year Subject – Principles of Management
Management is a distinct process consisting of planning, organising, actuating and controlling
performed to determine and accomplish the objectives by the use of people and resources.
George R. Terry
Management is guiding human and physical resources into dynamic organisational units which attain
their objectives to the satisfaction of those served and with a high degree of morale and sense of
attainment on the part of those rendering service.
—American Management Association
Management is a multipurpose organ that manage a business and manages Managers and manages
Workers and work.
—Peter Drucker
NATURE OF MANAGEMENT
To understand the basic nature of management, it must be analyzed in terms of art and science, in
relation to administration, and as a profession, in terms of managerial skills and style of managers.
Management as a Science
Science means a systematic body of knowledge pertaining to a specific field of study. It contains general
principles and facts which explains a phenomenon. These principles establish cause-and-effect
relationship between two or more factors. These principles and theories help to explain past events
and may be used to predict the outcome of actions. Scientific methods of observations, and experiments
are used to develop principles of science. The principles of science have universal application and
validity.
Thus, the essential features of science are as follows:
(i) Basic facts or general principles capable of universal application
(ii) Developed through scientific enquiry or experiments
(iii) Establish cause and effect relationships between various factors.
(iv) Their Validity can be verified and they serve as reliable guide for predicting future events.
Let us now examine as to what extent management satisfies the above conditions:
(i) Systematic body of knowledge: Management has a systematic bodyof knowledge consisting of
general principles and techniques. These help to explain events and serve as guidelines for
manag-ers in different types of organisations.
(ii) Universal principles: Scientific principles represent basic factsabout a particular field enquiry.
These are objective and represent best thinking on the subject. These principles may be applied
in all situations and at all times. Exceptions, if any, can be logically explained. For example, the
Law of Gravitation states that if you throw an object in the air it will fall on the ground due to the
gravitational force of the earth. This law can be applied in all countries and at all points of time. It
is as applicable to a football as it is to an apple falling from tree. Management contains sound
fundamental principles which can be universally applied. For instance, the principle of unity of
command states that at a time one employee should be answerable to only one boss. This
principle can be applied in all types of organisation-business or non business. However,
principles of management are not exactly like those of physics or chemistry. They are flexible and
need to be modified in different situations.
(iii) Scientific enquiry and experiments: Scientific principles are derivedthrough scientific
investigation and reasoning. It means that there is an objective or unbiased assessment of the
problem situation and the action chosen to solve it can be explained logically. Scientific principles
do not reflect the opinion of an individual or of a religious guru. Rather these can be scientifically
proved at any time. They are critically tested. For example, the principle that the earth revolves
45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, www.rccmindore.com
3
, BBA I Year Subject – Principles of Management
around the sun has been scientifically proved. Management principles are also based on scientific
enquiry and investigation. These have been developed through experiments and practical
experience of a large number of managers. For example, it has been observed that wherever one
employee has two or more bosses simultaneously, confusion and indiscipline are likely to arise,
with regard to following the instructions.
(iv) Cause and effect relationship: Principles of science lay downa cause and effect relationship
between related factors. For example, when water is heated up to 100ºC, it starts boiling and
turns into vapor. Similarly, the principles of management establish cause and effect relationship
between different variables. For instance lack of balance between authority and responsibility
will cause management to become ineffective.
(v) Tests of validity and predictability: Validity of scientific principlescan be tested at any time and
any number of times. Every time the test will give the same result. Moreover, the future events
can be predicted with reasonable accuracy by using scientific principles. For example, the Law of
Gravitation can be tested by throwing various things in the air and every time the object will fall
on the ground. Principles of management can also be tested for their validity. For example, the
principle of unity of command can be tested by comparing two persons, one having a single boss
and other having two bosses. The performance of the first person will be higher than that of the
second.
Thus, management is undoubtedly a science. It contains a systematic body of knowledge in the form of
general principles which enjoy universal applicability. However, management is not as exact a
science—Physics, Chemistry, Biology and other Physical sciences. This is because management deals
with people and it is very difficult to predict accurately the behavior of living human beings.
Management principles are universal but they cannot be expected to give exactly the same results in
every situation. That is why management is known as a soft science. Management is a social science. It
is still growing, with the growing needs of human organisations.
Management as an Art
Art implies the application of knowledge and skills to bring about the desired results. The essential
elements of arts are:
(i) Practical knowledge
(ii) Personal skill
(iii) Result oriented approach
(iv) Creativity
(v) Improvement through continuous practice
Let us judge how far management fulfils these requirements:
(i) Practical knowledge: Every art signifies practical knowledge. Anartist not only learn the theory
but also its application in practice. For example, a person may have adequate technical
knowledge of painting but he cannot become a good painter unless he knows how to make use of
the brush and colours. Similarly, a person cannot become a successful manager simply by
reading the theory and getting a degree or diploma in management. He must also learn to apply
his knowledge in solving managerial problems in practical life. A manager is judged not just by
his technical knowledge but by his efficiency in applying this knowledge.
(ii) Personal skill: Every artist has his own style and approach to hisjob. The success of different
artists differ even when all of them possess the same technical knowledge or qualifications. This
is due to the level of their personal skills. For example, there are several qualified singers but
Lata Mangeshkar has achieved the highest degree of success. Similarly, management is
personalised. Every manager has his individual approach and style in solving managerial
45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, www.rccmindore.com
4
SYLLABUS
Class – B.B.A. I Year
Subject – Principles of Management
UNIT – I Definition and Meaning of Management, Functions and
Responsibilities of Management, Principles of
Management School & Thoughts of Management.
UNIT – II Planning : Process, types and Significance, Planning vs
Forecasting Objectives, strategies and Policies, MBO,
Decision making: process & Significance.
UNIT – III Organization: Nature and Purpose of organizating.
Importance and process of organizing.
Departmentation. Organizational structure: Types and
relevance. Line and staff relationship.
UNIT – IV Direction: Principles & Techniques, Motivation: types
& Significance, Maslow’s Need Hierchy, Theory X & Y
Motivation. Leadership: Styles and Importance.
UNIT – V Controlling: The system and process of controlling,
control techniques. Co-ordination: Meaning, Principles
and importance. External and internal Co-ordination.
45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, www.rccmindore.com
1
,BBA I Year Subject – Principles of Management
UNIT – I
Introduction of Management
Every human being has several needs and desires. But no individual can satisfy all his wants. Therefore,
people work together to meet their mutual needs which they cannot fulfil individually. Moreover, man
is a social being as he likes to live together with other people. It is by working and living together in
organised groups and institutions that people satisfy their economic and social needs. As a result there
are several types of groups, eg., family, school, government, army, a business firm, a cricket team and
the like. Such formal groups can achieve their goals effectively only when the efforts of the people
working in these groups are properly coordinated and controlled. The task of getting results through
others by coordinating their efforts is known as management. Just as the mind coordinates and
regulates all the activities of a person, management coordinates and regulates the activities of various
members of an organisation.
Management is getting things done with effectiveness and efficiency. It is designing and maintaining an
environment in which individuals working together accomplish selected aims efficiently.
Management is the first of the modern institutions to shape the society. It pays a vital role in modern world.
It regulates man’s productive energies. It organizes factors of production. Peter Drucker observes that
without the leadership of management, a country’s resources of production remain resources and never
becomes production. Management converts a mob into an organization, and human efforts into
performance. ‘Management’ is the catalyst which makes possible rapid economic and social development in
freedom and with human dignity.
MEANING OF MANAGEMENT
As the term ‘management’ is used in several contexts, it has different meanings to different people.
Management has three different meanings:
1. As a Noun
When used as a noun, management refers to all those who have both responsibility and authority to manage
an organization and who are responsible for the work of others at all levels. W.J. Reddin states that “a
manager is a person occupying a position in a formal organization who is responsible for the work of at least
one other and who has formal authority over that person. Persons, whose work he is responsible for, are his
subordinates.”
2. As a Process
Management is also tasks, activities and functions. As a process, management refers to what management
does, i.e., the function performed by management ‘Managing’ is considered as a process which may include a
variety of functions, principles, techniques, skills and other measures of accomplishing the work and
activities of organization. Management as a process implies a series of actions or elements. These are
planning, organization, staffing, directing, co-ordination etc.
3. As a Discipline
Sometimes, the word ‘management’ is used to connote the body of knowledge and practice. In this sense, it
becomes a separate subject, a field of learning, and an organized, formal discipline. It is young discipline.
DEFINITION OF MANAGEMENT
Management is the coordination of all resources through the process of planning, organising, directing
and controlling in order to attain stated objectives. —Henry L. Sisk.
Management is the art of knowing what you want to do and then seeing that it is done in the best and
cheapest way.
—F.W. Taylor
To manage is to forecast and to plan, to organise to command, to coordinate and to control.
—Henry Fayol
45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, www.rccmindore.com
2
,BBA I Year Subject – Principles of Management
Management is a distinct process consisting of planning, organising, actuating and controlling
performed to determine and accomplish the objectives by the use of people and resources.
George R. Terry
Management is guiding human and physical resources into dynamic organisational units which attain
their objectives to the satisfaction of those served and with a high degree of morale and sense of
attainment on the part of those rendering service.
—American Management Association
Management is a multipurpose organ that manage a business and manages Managers and manages
Workers and work.
—Peter Drucker
NATURE OF MANAGEMENT
To understand the basic nature of management, it must be analyzed in terms of art and science, in
relation to administration, and as a profession, in terms of managerial skills and style of managers.
Management as a Science
Science means a systematic body of knowledge pertaining to a specific field of study. It contains general
principles and facts which explains a phenomenon. These principles establish cause-and-effect
relationship between two or more factors. These principles and theories help to explain past events
and may be used to predict the outcome of actions. Scientific methods of observations, and experiments
are used to develop principles of science. The principles of science have universal application and
validity.
Thus, the essential features of science are as follows:
(i) Basic facts or general principles capable of universal application
(ii) Developed through scientific enquiry or experiments
(iii) Establish cause and effect relationships between various factors.
(iv) Their Validity can be verified and they serve as reliable guide for predicting future events.
Let us now examine as to what extent management satisfies the above conditions:
(i) Systematic body of knowledge: Management has a systematic bodyof knowledge consisting of
general principles and techniques. These help to explain events and serve as guidelines for
manag-ers in different types of organisations.
(ii) Universal principles: Scientific principles represent basic factsabout a particular field enquiry.
These are objective and represent best thinking on the subject. These principles may be applied
in all situations and at all times. Exceptions, if any, can be logically explained. For example, the
Law of Gravitation states that if you throw an object in the air it will fall on the ground due to the
gravitational force of the earth. This law can be applied in all countries and at all points of time. It
is as applicable to a football as it is to an apple falling from tree. Management contains sound
fundamental principles which can be universally applied. For instance, the principle of unity of
command states that at a time one employee should be answerable to only one boss. This
principle can be applied in all types of organisation-business or non business. However,
principles of management are not exactly like those of physics or chemistry. They are flexible and
need to be modified in different situations.
(iii) Scientific enquiry and experiments: Scientific principles are derivedthrough scientific
investigation and reasoning. It means that there is an objective or unbiased assessment of the
problem situation and the action chosen to solve it can be explained logically. Scientific principles
do not reflect the opinion of an individual or of a religious guru. Rather these can be scientifically
proved at any time. They are critically tested. For example, the principle that the earth revolves
45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, www.rccmindore.com
3
, BBA I Year Subject – Principles of Management
around the sun has been scientifically proved. Management principles are also based on scientific
enquiry and investigation. These have been developed through experiments and practical
experience of a large number of managers. For example, it has been observed that wherever one
employee has two or more bosses simultaneously, confusion and indiscipline are likely to arise,
with regard to following the instructions.
(iv) Cause and effect relationship: Principles of science lay downa cause and effect relationship
between related factors. For example, when water is heated up to 100ºC, it starts boiling and
turns into vapor. Similarly, the principles of management establish cause and effect relationship
between different variables. For instance lack of balance between authority and responsibility
will cause management to become ineffective.
(v) Tests of validity and predictability: Validity of scientific principlescan be tested at any time and
any number of times. Every time the test will give the same result. Moreover, the future events
can be predicted with reasonable accuracy by using scientific principles. For example, the Law of
Gravitation can be tested by throwing various things in the air and every time the object will fall
on the ground. Principles of management can also be tested for their validity. For example, the
principle of unity of command can be tested by comparing two persons, one having a single boss
and other having two bosses. The performance of the first person will be higher than that of the
second.
Thus, management is undoubtedly a science. It contains a systematic body of knowledge in the form of
general principles which enjoy universal applicability. However, management is not as exact a
science—Physics, Chemistry, Biology and other Physical sciences. This is because management deals
with people and it is very difficult to predict accurately the behavior of living human beings.
Management principles are universal but they cannot be expected to give exactly the same results in
every situation. That is why management is known as a soft science. Management is a social science. It
is still growing, with the growing needs of human organisations.
Management as an Art
Art implies the application of knowledge and skills to bring about the desired results. The essential
elements of arts are:
(i) Practical knowledge
(ii) Personal skill
(iii) Result oriented approach
(iv) Creativity
(v) Improvement through continuous practice
Let us judge how far management fulfils these requirements:
(i) Practical knowledge: Every art signifies practical knowledge. Anartist not only learn the theory
but also its application in practice. For example, a person may have adequate technical
knowledge of painting but he cannot become a good painter unless he knows how to make use of
the brush and colours. Similarly, a person cannot become a successful manager simply by
reading the theory and getting a degree or diploma in management. He must also learn to apply
his knowledge in solving managerial problems in practical life. A manager is judged not just by
his technical knowledge but by his efficiency in applying this knowledge.
(ii) Personal skill: Every artist has his own style and approach to hisjob. The success of different
artists differ even when all of them possess the same technical knowledge or qualifications. This
is due to the level of their personal skills. For example, there are several qualified singers but
Lata Mangeshkar has achieved the highest degree of success. Similarly, management is
personalised. Every manager has his individual approach and style in solving managerial
45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, www.rccmindore.com
4
