Principles of Management

Definitions of Management.

‘ Management is the art of getting things done through and with others in formally organised groups’

-- Koontz O’donnel.

‘A manager in management has to manage the

work, workers and the managers.’

--Peter F. Drucker.

Principles of Management

Henri Fayol, A French management expert, has outlined 14 fundamental principles of Management to be adopted by managers for achieving effective administration. Later on a few more principles such as ‘Span of control, Delegation of Authority, Dcentralisation’ have also been added to the same. These principles have universal application in all walks of life.

Principles of Management.1. Initiative2. Unity of Direction.3. Unity of command.4. Division of work.5. Centralisation.6. Order.7. Equity.8. Discipline.9. Parity of Authority and

duty..

10.Scalar Chain of Authority.11.Security of tenure.12. Subordination of

individual interest to group interest.

13.Remuneration.14.Espirit de corps.15. Delegation of Authority16.Span of Control17. Decentralisation.

Organisation Structures.

• The term organisation structure refers to the hierarchical relationship that exists between the various levels of the organisation.

• Structures in general have been classified into two broad categories namely ‘traditional structures’ and ‘modern structures’.

• Traditional structure comprises of ‘Line, Functional and Line and Staff’ structures.

• Modern structure comprises of ‘Matrix’ and ‘Committees’

Traditional Structures.

Line Structure:- This is the oldest of management structures. It is based on the

military model of administration. It comprises of an autocratic superior who

administers the unit by acting as a dictator.

The subordinates merely execute his

orders. It functions through a formal

downward Communication channel.

Traditional Structures continued…

2. Functional Structures:-This comprises of a team of functional experts who are coordinated

by a Chief Executive Officer.

In this structure each expert can control his subordinates as well as subordinates in other departments in relation to his area of operation.

It lacks Unity of command and presents a complex picture.

Traditional Structures continued…

3.Line and Staff structure:- This structure combines in itself the merits of both Line and Functional structures.

It comprises of two sets of officers, namely ‘Line’ and ‘Staff’ executives.

The Line manager has decision making authority.The Staff officers act as expert advisors who advice the

Line managers. The staff officers do not enjoy decision making authority. However this structure suffers on account of Line and Staff conflicts.

Modern Structures.

1.Matrix Structure:- This structure comprises of two sets of activities. The unit would undertake a major activity in a continuous manner. The finished product of the major activity would constitute the main input for several short term Projects. Each project would be managed by a Project Manager. He would be assisted by functional experts drawn from the major activity. The projects provide maximum liquidity and flexibility to the unit.

Modern Structures continued….

2.Committees:- A committee is a group of individuals who are entrusted with a specific task. Committees are democratic in their approach. The members of the committee exercise their voting rights on the basis of ‘one man one vote’. Committees’ require a quorem, an agenda and a chair person for their official functioning.