PRINCIPLES OF MANAGEMENT:

Fayolism is one of the first comprehensive statement of a general theory of management, developed by the French management theorist Henri Fayol (1841 1925): one of the most influential contributors to modern concepts of management, Fayol has proposed that there are five primary functions of management: (1) planning, (2) organizing, (3) commanding, (4) coordinating, and (5) controlling (Fayol, 1949, 1987). Controlling is described in the sense that a manager must receive feedback on a process in order to make necessary adjustments. For Fayol any Organisation can be subdivided into six types of Operations. Each Operation being fulfilled by its corresponding Essential Function: 1. Technical Operations (production, manufacturing, transformation) 2. Commercial Operations (purchases, sales, exchanges) 3. Financial Operations (seek for capital and finance management) 4. Security Operations (protection of goods and people) 5. Accounting Operations (balance, P&L, cost control, statistics, etc) 6. Administrative' Operations

The 5 Elements of Administration:

Popularized by Fayol with the acronym of POCCC: 1. Planning' (to foresee/anticipate and make plans) 2. Organisation (to provide the Function with all is needed for its smooth running: Supplies, Tools, Funding, Employees) 3. Commandment (to lead the people employed by the organisation) 4. Coordination (to harmonise all actions of an Organisation in order to facilitate its smooth running and success) 5. Control (to verify if everything happens in accordance with defined plans, orders given, and accepted principles)

The 14 Principles of Administration

1. Division of work: Reduces the span of attention or effort for any one person or group. Develops practice or routine and familiarity. 2. Authority: "The right to give orders. Should not be considered without reference to responsibility." 3. Discipline: "Outward marks of respect in accordance with formal or informal agreements between a firm and it's employees." 4. Unity of command: "One man one superior!"

5. Unity of direction: "One head and One plan for a group of activities with the same objective." 6. Subordination of Individual Interests to the Common Interest : "The interests of one individual or group should not prevail over the general or common good." 7. Remuneration of personnel: "Pay should be fair to both the worker as well as the organization." 8. Centralisation: "Is always present to a greater or lesser extent, depending on the size of the company and the quality of its managers." 9. Scalar chain: "The line of authority from top to bottom of the organization." 10. Order: "A place for everything and everything in its right place; ie. the right man in the right place." 11. Equity: "A combination of kindness and justice towards employees." 12. Stability of personnel tenure: "Employees need to be given time to settle in to their jobs, even though this may be a lengthy period in the case of some managers." 13. Initiative: "Within the limits of authority and discipline, all levels of staff should be encouraged to show initiative." 14. Esprit de corps (Union is strength): "Harmony is a great strength to an organization; teamwork should be encouraged."

Schools of Management Thought:

Koont Z, ODonnell and Weichrich have identified different approaches of management 1. Empirical or Case approach: This is based on a close study of past managerial experiences and management cases. Hence known as case approach or management experience approach. 2. Human Relations, Leadership or Behavioural Science Approach: It bears the existing and newly developed theories and methods of the relevant social sciences upon the study of human behaviour ranging from personality dynamics of individuals to the relations of culture. 3. Social System Approach: Organization is essentially a cultural system composed of people who work in cooperation. For achieving organization goals, a cooperative system of management can be developed only by understanding the behaviour of people in groups. * Organization is a social system, a system of cultural relationships.

* Relationships exist among the external as well as internal environment of the organization. 4. Socio-Technical Systems Approach: * The socio-technical systems approach of management views an organization as a combination of 2 systems a social system and a technical system. The real pattern of behaviour in the organization is determined by the interaction of two. * Social systems of the organization is governed by social laws as well as by psychological forces. * Technical systems consists of technological forces operating in the organization like physical setting of work, rules, procedures etc. * Due to interaction of social and technical systems, technical aspects of the work are modified by social aspects. Thus organization of an organization situation within the framework of socio-technical system involves scrutinizing of the specific technology used, the way in which patterns are organized, the formal structuring of interpersonal interactions and the informal patterns emerging in the work group. 5. Decision Theory Approach: * Management is essentially decision-making. * Members of the organization are decision-makers and problems solvers. * Organization can be treated as a combination of various decision centres. The level and importance of organization members are determined on the basis of importance of decisions, which they make. 6. Management Science Approach: * It is known as Mathematical or Quantitative Measurement Approach. * Management is regarded as the problem-solving mechanism with the help of mathematical tools and techniques. * Management problems can be described in terms of mathematical symbols and data. Thus every managerial activity can be quantified. * This approach covers decision-making, systems analysis and some aspects of human behaviour. 7. Systems Approach System is defined as An organized or complex whole; an assemblage or combination of things or parts forming a complex unitary whole. * A system is basically a combination of parts, subsystems. Each part may have various sub-parts.

* An organization is a system of mutually dependent parts, each of which may include many subsystems. 8. Contingency or Situational Approach * Management action is contingent on certain action outside the system or subsystem as the case may be. * Organizational action should be based on the behaviour of action outside the system so that organization should be integrated with the environment. * Because of the specific organization environment relationship, no action can be universal. * It varies from situation to situation 9.Operational Approach Also known as Management Process Approach * Management is the study of what managers do. It emphasises on management functions and various concepts and principles involved in performing these functions. * Management functions are universal irrespective of the type of organizational or level of management in an organization, though there may be differences on emphasis on a particular function in a particular organization or at particular level. * The conceptual framework of management can be constructed on the basis of the analysis of management process and identification of management principles. * The central core of managing revolves around planning, organizing, staffing, directing and controlling. This central core of management is unique and is not found in other activities.