MEVE 012: Unit 02 - Principles of Management

UNIT 2: PRINCIPLES OF MANAGEMENT

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2.0 Introduction

Principles of Management serve as foundational guidelines for managerial decision-making and organizational behavior. These principles, developed through years of management research and practical experience, help in understanding how to direct, guide, and control an organization effectively. They provide a scientific basis for managerial practices and help in achieving efficiency and effectiveness in organizational operations.

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2.1 Objectives

After studying this unit, learners will be able to:

• Understand the conceptual framework and characteristics of management.
• Comprehend the objectives and significance of management in organizations.
• Identify and explain the different levels of management.
• Understand and apply the key functions of management.
• Recognize the relevance of management principles in organizational success.

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2.2 Conceptual Framework of Management

Management refers to the systematic process of planning, organizing, directing, staffing, and controlling the activities of an organization to achieve defined objectives. It bridges the gap between resources and objectives and ensures the smooth functioning of business activities.

2.2.1 Features (or Characteristics) of Management

• Goal-Oriented: Focuses on achieving predetermined objectives.
• Universal Application: Applicable to all types of organizations.
• Multidimensional: Involves management of people, operations, and resources.
• Group Activity: Requires collective efforts of individuals.
• Dynamic Nature: Adapts to changing business environments.
• Continuous Process: An ongoing cycle of planning and execution.
• Intangible Force: Cannot be seen, only experienced through results.

2.2.2 Objectives of Management

• Organizational Objectives: Profit maximization, market share expansion, business survival.
• Social Objectives: Providing quality products, environmental protection, ethical conduct.
• Personal Objectives: Employee development, job satisfaction, fair compensation.

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2.3 Levels of Management

Organizational structure is divided into various levels of management based on responsibility and authority.

2.3.1 Top-Level / Administrative Level

• Includes: CEO, Managing Director, Board of Directors.
• Functions:
• Formulating strategies and goals.
• Establishing organizational policies.
• Representing the organization externally.

2.3.2 Middle-Level / Executory

• Includes: Departmental Heads, Division Managers.
• Functions:
• Implementing top-level plans.
• Coordinating among lower and upper levels.
• Ensuring departmental performance.

2.3.3 Low-Level / Supervisory / Operative / First-Line Managers

• Includes: Supervisors, Foremen, Team Leaders.
• Functions:
• Direct supervision of workers.
• Reporting performance and issues.
• Maintaining discipline and work schedules.

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2.4 Importance of Management

• Achieves Group Goals: Directs collective efforts towards common objectives.
• Increases Efficiency: Optimum utilization of resources.
• Creates a Dynamic Organization: Encourages adaptability to change.
• Reduces Wastage: Systematic planning reduces resource loss.
• Encourages Innovation: Promotes research, development, and creativity.
• Improves Employer-Employee Relations: Facilitates communication and motivation.
• Development of Society: Meets societal needs through goods, services, and employment.

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2.5 Functions of Management

Henri Fayol and other scholars identify five key functions of management:

2.5.1 Planning

• Defining goals and determining the best course of action.
• Involves forecasting, budgeting, and setting timelines.
• Reduces uncertainty and sets direction.

2.5.2 Organizing

• Establishing internal structure and roles.
• Allocating resources, assigning tasks, and grouping activities.
• Ensures coordination and smooth functioning.

2.5.3 Directing

• Leading, guiding, and motivating employees.
• Involves communication, supervision, and leadership.
• Transforms plans into actions.

2.5.4 Staffing

• Recruiting, selecting, training, and developing personnel.
• Ensures the right people are in the right roles.
• Improves productivity and organizational capability.

2.5.5 Controlling

• Monitoring performance and comparing it with planned goals.
• Taking corrective measures when necessary.
• Maintains standard and accountability.

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2.6 Let Us Sum Up

This unit highlights the essential principles, characteristics, and levels of management. It elaborates on the core managerial functions—planning, organizing, staffing, directing, and controlling—which form the foundation of effective management. Understanding these principles enables managers to make informed decisions, ensure efficient resource use, and guide teams toward organizational success.

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2.7 Keywords

• Management: The process of coordinating resources to achieve goals efficiently and effectively.
• Levels of Management: The hierarchy of authority in an organization—top, middle, and lower levels.
• Objectives of Management: The goals management aims to achieve, including organizational, personal, and social objectives.
• Features of Management: Distinct traits such as being goal-oriented, universal, continuous, and intangible.
• Top-Level Management: Strategic decision-makers responsible for setting organizational goals and policies.
• Middle-Level Management: Responsible for implementing top-level plans and coordinating departments.
• Lower-Level Management: Managers who supervise day-to-day operations and workers directly.
• Planning: Function involving setting goals and deciding on the best way to achieve them.
• Organizing: Arranging resources and activities in a structured way to accomplish goals.
• Staffing: Recruiting, selecting, and training personnel for organizational roles.
• Directing: Leading and motivating employees to work toward goals.
• Controlling: Monitoring operations to ensure plans are being followed and objectives met.
• Managerial Functions: The core roles of planning, organizing, staffing, directing, and controlling.