ADL-01: Principles and Practices of Management

Assignment ‘A’
Notes
1. Compare the three schools of management thought and discuss which
theory as per you is most important and why?
Answer:

Different schools of thought have emerged and all of them define management in their own way:
Classical School:
• Management is ordering people to do the job.
• Management is designing job structure.
• To manage is to forecast, to plan, to organize, to command, to coordinate and to control
(Fayol)
Behavioural School:
• Management is managing men.
• Management is the development of people and not the direction.
Modern Definition:

Management is a multipurpose organ of the society, which aims at utilizing the resources of the
country for creating a situation of plenty and comfort instead of scarcity and misery.
According to modern definition:
• Management is called a social process
• Management is a lower-level function
• Management is a continuing and dynamic process.
• Managing is an art.
• Management is a continuing and dynamic process
• management is a science

Best School of Thought

No school of thought is individually the important. All the school of thought has some
relevance in one way or other. Each school of thought expresses one view or aspect of the
dynamic process of management and hence it tells only a part of the story. Therefore the
ideal approach is to see the management as a dynamic system in which the view of every
school is incorporated.
 2. Discuss the 14 general principles of management given by Fayol. Which
principle do you think is the most important?
Answer:
Fayol’s Principles of Management

1. Division of work: This principle says that work should be divided into different parts and
each part should be entrusted to the most suitable person to do it. He believed that this
result in specialization and it will in turn increases the efficiency of workers. According to
him, more the specialization the greater will be the efficiency.
2. Authority and Responsibility: Authority is the right of a superior to give orders to
subordinates, take decisions etc. Responsibility, on the other hand , refers to the
obligation to accomplish objectives or the duty he is expected to perform by virtue of his
position. Authority and responsibility should go together. Acceptance of authority means
acceptance of responsibility to perform a job.

3. Discipline: He believes discipline is absolute essential for the workers running of

business. Discipline is essential not only at the workers level but also it requires at the
management level. Good discipline is the result of effective leadership and good
relationship between management and workers regarding the rules and regulations of
organization.

4. Unity of Command: Single superior should give orders.

5. Unity of Direction: According to this principle there should always exist one head and
one plan for a group of activities having the same objective. The members of an
organization should work together to accomplish common goals. This principle ensures a
co-ordinate action in the organization.

6. Subordination of individual interests to group interests: Importance should be given

to the interest of the organization. There should not be a conflict between the interest of
the businessmen and the interest of the workers. When there is a conflict between these
two, the interest of the organization should prevail and the personal interest should be
ignored or sacrificed.

7. Remuneration: Must be fair giving maximum possible satisfaction to employees and

employer.

8. Centralization and decentralization: Fayol says individual circumstances will determine

the degree to which authority is concentrated or dispersed.

9. Scalar Chain: Fayol believed that "chain of superiors" from highest to lowest ranks
should not be departed from needlessly but can be short-circuited when the need be.

10. Order: "A place for everything and everyone"

11. Equity: Loyalty can be elicited from personnel by combination of kindliness and justice.
12. Stability of Tenure and personnel: Unnecessary turnover can have high danger and
costs.
13. Initiative: Managers must sacrifice personal vanity to permit subordinates to exercise
initiative.

14. Espirit de corps: This principle is based on old saying ‘union is strength’. The entire
organization should be treated as one unit. There is no provision for disintegration. The
success and efficiency of an organization depends on team spirit. Harmony and union
among the personnel constitute the great strength of a concern. The motto ‘divide and
rule’ should be discouraged. If there is any misunderstanding caused through poor
communications, management should take timely action to avoid it. Mangers must take
steps to develop a sense of belonging amongst the employees. If there is a team spirit,
everybody co-operates and work hard for achieving organizational goals.

According to me, Espirit de corps is the most important principle as entire organization should
be treated as one unit.
 3. “Decision making is the most critical managerial task.” Discuss the above
statement in the light of decision making steps.
Answer:
Decision making process requires a structured approach involving six steps:

1. Identify and select the problem: A 'problem' is a deviation between the ACTUAL results and
the TARGET level at which the results should be, or an OPPORTUNITY level at which the results
could be. A problem statement should be written based on the measurements taken. The most
serious problems are those customer experiences. Implement holding action, if necessary, while
solving the problem.

2. Analyse the causes of the problem: Brainstorm all potential causes of the deviation. Usually,
there are several causes of a problem that require analyzing and prioritizing. This will require
collecting data which provides the facts needed rather than opinions. Determine the root causes.

3. Generate potential decisions: For most problems there are usually several solutions. The first
idea is not always the best. 'Brainstorming' and 'building' on ideas are the most effective ways to
find the right solutions. Use competitive benchmarking to adopt other's ideas.

4. Select and plan the decision to be implemented: Prioritize the solutions identified using
cost-benefit analysis together with the timetable demanded by the urgency of the problem. A
specific ACTION PLAN must be prepared identifying the key activities with start and finish dates,
and the named individuals who will carry them out. The proposed plan is then presented to the
next higher manager for approval, giving opportunity for team 'recognition'.

5. Decide and implement: The Project Teams are responsible for implementing the decision.
Regular review of the Project is essential to control progress and costs, ensuring that the benefits
are gained. Contingency plans may need to be activated to overcome practical difficulties arising.

6. Evaluating the decision: Following successful implementation, the project must be monitored
and evaluated. Has the problem been solved? Is the customer satisfied? What added value has
been achieved? It may be necessary to use the Decision Making Process again.
 4. “Planning is charting the future course of action at present.” Do you agree?
Discuss the advantage of planning as a management process.
Answer:
Planning is charting the future course of action at present

Yes I agree. Planning always deals with future and it always precede action. Planning is an intellectually
demanding process, the future course of action is consciously determined and decisions are based
on purpose, knowledge and considered estimates. Planning involves deciding in advance what to do, when
to do it, where to do it, how to do it, who is to do it and how the results are to be evaluated. A plan is a
predetermined course of action to achieve a specified aim or goal. It is a blueprint of action. It is the
primary function of management. It is the conscious determination of future course of action to achieve the
desired results. Thus, we can say that plans provide a rational approach and strongly imply managerial
innovation. Planning is an analytical thought process that covers:
• Assessment of future
• Determination of objectives and goals
• Forecasting
• Development of alternative courses of action
• Selection of best course of action
• Evaluation of various alternatives and formulation of plans.
• Formulation of policies and procedures
• Preparation of schedules, programmes and budgets

ADVANTAGE OF PLANNING

Proper project planning can have an important influence on the project overall costs, on the level of
operatives’ earnings and the duration of a job. Detailed planning can also help to eliminate idle and non
productive time of labour and plant, and can anticipate physical difficulties and material shortage in good
time for remedial action to be taken. Planning can be very beneficial in four major areas:
• Coordination of effort
• Preparation for Change
• Development of Performance Standards
• Development of Managers

Key benefits of planning are:

1. Integrated, constant and purposeful action is more easily achieved. All efforts are directed towards
desired objectives or results. Unproductive work and waste of resources can be minimized. Through
planning managers can relate decisions to each other and to goals of the enterprise.
2. Planning enables a company to be competitive with other rivals. Progressive management likes to be
proactive rather than reactive.
3. Through planning adverse situations can be anticipated and mistakes or delays avoided. Trouble can be
more often easily corrected in its earlier stages than after a crisis "Forewarned is forearmed".
4. Planning helps to plan for changes and also helps in managing change effectively.
5. Planning leads to systematic and thorough investigation of alternative methods.
6. Plans are based on adequate information of the past, present and intelligent forecasting of the future.
7. Plans give control standards.
8. Planning facilitates effective delegation of authority and removes communication difficulties