Title: Interactive book 3

Notes on principles and practices of management

Principles and Practices of Management

1. Meaning of Management

Management is the process of planning, organizing, leading, and controlling organizational resources to achieve specific goals efficiently and effectively.

It involves coordinating people and activities to produce desired results.

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2. Functions of Management

Function Description

Planning Deciding in advance what to do, how, when, and who will do it. It sets objectives and determines the best course of action.

Organizing Arranging resources and tasks to implement plans. It involves creating a structure of roles and responsibilities.

Staffing Recruiting, selecting, training, and developing employees to perform organizational roles effectively.

Leading (Directing) Guiding, motivating, and influencing employees to achieve organizational goals.

Controlling Monitoring and evaluating activities to ensure goals are being met; taking corrective actions when necessary.

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3. Principles of Management (Henri Fayol)

Principle Explanation

Division of Work Specialization increases efficiency and productivity.

Authority and Responsibility Managers must have the right to give orders but must also take responsibility.

Discipline Employees should obey and respect organizational rules.

Unity of Command Each employee should receive orders from only one superior.

Unity of Direction All activities with the same objective should be directed by one manager using one plan.

Subordination of Individual Interest Organizational interests should come before personal interests.

Remuneration Fair and adequate compensation motivates employees.

Centralization The degree to which authority is concentrated at top management.

Scalar Chain A clear chain of command from top to bottom.

Order Resources and people should be in the right place at the right time.

Equity Managers should be kind and fair to employees.

Stability of Tenure High employee turnover should be avoided.

Initiative Employees should be encouraged to take initiative.

Esprit de Corps Promoting team spirit improves harmony and unity.

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4. Levels of Management

Level Key Roles

Top Level (Strategic) Policy making, setting overall objectives (e.g. CEO, Directors).

Middle Level (Tactical) Implementing policies, coordinating departments (e.g. Managers, Supervisors).

Lower Level (Operational) Day-to-day supervision, guiding workers (e.g. Foremen, Team leaders).

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5. Managerial Skills

Skill Description

Technical Skills Knowledge of specific work or activities.

Human Skills Ability to work well with people.

Conceptual Skills Ability to see the organization as a whole and make strategic decisions.

Decision-Making Skills Ability to choose the best course of action among alternatives.

Communication Skills Clear expression and understanding of ideas.

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6. Importance of Management

Ensures effective use of resources.

Promotes teamwork and coordination.

Achieves organizational goals efficiently.

Adapts to environmental changes.

Encourages innovation and development.

Improves employee morale and productivity.

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7. Modern Management Approaches

Classical Approach – Focuses on structure, authority, and efficiency.

Behavioral Approach – Emphasizes human relations and motivation.

Systems Approach – Views the organization as a system of interrelated parts.

Contingency Approach – No one best way to manage; depends on situation.

Questions on principles and practices of management

Principles and Practices of Management – Question Bank

A. Definition and Meaning

1. Define management in your own words.

2. Explain the term “Principles of Management.”

3. What is the main objective of management?

4. Differentiate between management and administration.

5. Why is management considered both an art and a science?

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B. Functions of Management

6. List and explain the five main functions of management.

7. What is the importance of planning in management?

8. Describe the steps involved in the planning process.

9. What is the difference between organizing and staffing?

10. Explain how controlling helps in achieving organizational goals.

11. Give examples of activities carried out under directing.

12. Why is coordination called the essence of management?

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C. Principles of Management (Henri Fayol)

13. State five principles of management proposed by Henri Fayol.

14. Explain the principle of unity of command with an example.

15. How does the principle of division of work improve efficiency?

16. Describe the importance of equity in management.

17. What does stability of tenure mean, and why is it important?

18. Distinguish between centralization and decentralization.

19. How does the principle of initiative promote innovation?

20. Explain the meaning of Esprit de Corps and its role in teamwork.

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D. Levels of Management

21. Identify and describe the three levels of management.

22. What are the main roles of top-level managers?

23. How do middle-level managers contribute to organizational success?

24. What are the responsibilities of lower-level managers?

25. Give examples of job titles at each level of management.

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E. Managerial Skills

26. State and explain the three key managerial skills.

27. Why are human relations skills important for managers?

28. Give an example of a situation where conceptual skills are needed.

29. How can managers improve their communication skills?

30. Describe the importance of decision-making skills in management.

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F. Importance and Role of Management

31. Discuss five reasons why management is important in an organization.

32. How does management promote teamwork and coordination?

33. Explain how management contributes to efficient use of resources.

34. In what ways does management encourage innovation?

35. Why is adaptability important for modern managers?