PRINCIPLES OF MANAGEMENT -:Management Principles developed by Henri Fayol:
 DIVISION OF WORK: Work should be divided among individuals
and groups to ensure that effort and attention are focused on
special portions of the task. Fayol presented work specialization
as the best way to use the human resources of the organization.
 AUTHORITY: The concepts of Authority and responsibility are
closely related. Authority was defined by Fayol as the right to
give orders and the power to exact obedience. Responsibility
involves being accountable, and is therefore naturally associated
with authority. Whoever assumes authority also assumes
responsibility.
 DISCIPLINE: A successful organization requires the common
effort of workers. Penalties should be applied judiciously to
encourage this common effort.
 UNITY OF COMMAND: Workers should receive orders from only
one manager.
 UNITY OF DIRECTION: The entire organization should be moving
towards a common objective in a common direction.
 SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL
INTERESTS: The interests of one person should not take priority
over the interests of the organization as a whole.
 REMUNERATION: Many variables, such as cost of living, supply of
qualified personnel, general business conditions, and success of
the business, should be considered in determining a worker’s
rate of pay.
 CENTRALIZATION: Fayol defined centralization as lowering the
importance of the subordinate role. Decentralization is
increasing the importance. The degree to which centralization or
decentralization should be adopted depends on the specific
organization in which the manager is working.
 SCALAR CHAIN: Managers in hierarchies are part of a chain like
authority scale. Each manager, from the first line supervisor to
the president, possess certain amounts of authority. The
President possesses the most authority; the first line supervisor
the least. Lower level managers should always keep upper level
managers informed of their work activities. The existence of a
scalar chain and adherence to it are necessary if the organization
is to be successful.
 ORDER: For the sake of efficiency and coordination, all materials
and people related to a specific kind of work should be treated
as equally as possible.
 EQUITY: All employees should be treated as equally as possible.
 STABILITY OF TENURE OF PERSONNEL: Retaining productive
employees should always be a high priority of management.
Recruitment and Selection Costs, as well as increased productreject rates are usually associated with hiring new workers.
 INITIATIVE: Management should take steps to encourage worker
initiative, which is defined as new or additional work activity
undertaken through self direction.
 ESPIRIT DE CORPS: Management should encourage harmony and
general good feelings among employees
LEVELS OF MANAGEMENT -:Most organizations have three management levels: firstlevel, middle-level, and top-level managers.[citation
needed] These managers are classified in a hierarchy of
authority, and perform different tasks. In many
organizations, the number of managers in every level
resembles a pyramid. Each level is explained below in
specifications of their different responsibilities and likely
job titles.
 Top-level managers
The top consists of the board of directors (including nonexecutive directors and executive directors), president,
vice-president, CEOs and other members of the C-level
executives. They are responsible for controlling and
overseeing the entire organization. They set a tone at the
top and develop strategic plans, company policies, and
make decisions on the direction of the business. In
addition, top-level managers play a significant role in the
mobilization of outside resources and are accountable to
the shareholders and general public.
The board of directors is typically primarily composed of
non-executives which owe a fiduciary duty to shareholders
and are not closely involved in the day-to-day activities of
the organization, although this varies depending on the
type (e.g., public versus private), size and culture of the
organization. These directors are theoretically liable for
breaches of that duty and typically insured under directors
and officers liability insurance. Fortune 500 directors are
estimated to spend 4.4 hours per week on board duties,
and median compensation was $212,512 in 2010. The
board sets corporate strategy, makes major decisions such
as major acquisitions,[16] and hires, evaluates, and fires
the top-level manager (Chief Executive Officer or CEO) and
the CEO typically hires other positions. However, board
involvement in the hiring of other positions such as the
Chief Financial Officer (CFO) has increased.[17] In 2013, a
survey of over 160 CEOs and directors of public and private
companies found that the top weaknesses of CEOs were
"mentoring skills" and "board engagement", and 10% of
companies never evaluated the CEO.[18] The board may
also have certain employees (e.g., internal auditors) report
to them or directly hire independent contractors; for
example, the board (through the audit committee) typically
selects the auditor.
 Helpful skills of top management vary by the type of
organization but typically include[19] a broad
understanding competition, world economies, and politics.
In addition, the CEO is responsible for executing and
determining (within the board's framework) the broad
policies of the organization. Executive management
accomplishes the day-to-day details, including: instructions
for preparation of department budgets, procedures,
schedules; appointment of middle level executives such as
department managers; coordination of departments;
media and governmental relations; and shareholder
communication.
 Middle-level managers
 Consist of general managers, branch managers and
department managers. They are accountable to the top
management for their department's function. They devote
more time to organizational and directional functions.
Their roles can be emphasized as executing organizational
plans in conformance with the company's policies and the
objectives of the top management, they define and discuss
information and policies from top management to lower
management, and most importantly they inspire and
provide guidance to lower level managers towards better
performance. Their functions include:
 Design and implement effective group and inter-group
work and information systems.
 Define and monitor group-level performance indicators.
 Diagnose and resolve problems within and among work
groups.
 Design and implement reward systems that support
cooperative behavior. They also make decision and share
ideas with top managers.
 First-level managers
 Consist of supervisors, section leaders, foremen, etc. They
focus on controlling and directing. They usually have the
responsibility of assigning employees tasks, guiding and
supervising employees on day-to-day activities, ensuring
quality and quantity production, making
recommendations, suggestions, and up channeling
employee problems, etc. First-level managers are role
models for employees that provide:
 Basic supervision
 Motivation
 Career planning
 Performance feedback
IMPORTANCE OF MANAGEMENT -:Managers influence all the phases of modern
organizations. Sales Managers maintain a sales force that
markets goods. Personnel managers provide organizations
with a competent and productive workforce. Plant
managers run manufacturing operations that produce the
clothes we wear, the food we eat, and the automobiles we
drive.
Our society could never exist as we know it today nor
improve without a steady stream of managers to guide its
organizations. The well known management author Peter
Drucker highlighted this point when he said that Effective
Management is probably the main resource of developed
countries and the most needed resource of developing
ones.
In short, all societies, whether developed or developing,
need a huge lot of good managers.
THE ROLE OF MANAGEMENT -:Essentially, the role of managers is to guide the
organizations toward goal accomplishment. All
organizations exist for certain purposes or goals,and
managers are responsible for combining and using
organizational resources to ensure that their organizations
achieve their purposes.
The role of the Management is to move an organization
towards its purposes or goals by assigning activities that
organization members perform.
If Management ensures that all the activities are designed
effectively, the production of each individual worker will
contribute to the attainment of the organizational goals.
Management strives to encourage individual activity that
will lead to reaching organizational goals and to discourage
individual activity that will hinder the accomplishment of
the organization objectives.
There is no idea more important than managing the
fulfillment of the organizational goals and objectives. The
meaning of the Management is given by its goals and
objectives.
All managers, must have a single minded focus on the
fulfillment of the organizational goals.