Management is the backbone of any organization. Whether it's a small business or a multinational corporation, effective management ensures smooth operations, efficient resource utilization and goal achievement.
For UGC NET aspirants, understanding the principles and functions of management is crucial, not just for exams but also for practical applications in business environments.
What is Management?
Management is the art and science of getting things done through people.
According to Henri Fayol, "To manage is to forecast and plan, to organize, to command, to coordinate, and to control."
It involves setting objectives, organizing resources, leading people and ensuring efficient execution.
Principles of Management
The principles of management serve as guidelines for managerial decision-making and operations. These principles, formulated by pioneers like Henri Fayol, F.W. Taylor and Elton Mayo, provide a structured approach to management.
a. Henri Fayol’s 14 Principles of Management
Henri Fayol, a French industrialist, identified 14 principles that act as the foundation of modern management:
| Principle | Description |
|---|---|
| 1. Division of Work | Specialization increases efficiency by dividing tasks among employees. |
| 2. Authority and Responsibility | Managers must have the authority to give orders and the responsibility to ensure tasks are completed. |
| 3. Discipline | Adherence to rules and agreements ensures smooth functioning. |
| 4. Unity of Command | An employee should receive orders from only one superior to avoid confusion. |
| 5. Unity of Direction | Activities with similar objectives should be coordinated under one plan. |
| 6. Subordination of Individual Interest | The organization's interests should take precedence over personal interests. |
| 7. Remuneration | Employees should be fairly compensated for their efforts. |
| 8. Centralization and Decentralization | Decision-making should be balanced between centralized control and decentralized autonomy. |
| 9. Scalar Chain | A clear hierarchy should exist for effective communication. |
| 10. Order | Resources (human and material) should be organized systematically. |
| 11. Equity | Managers should treat employees fairly and respectfully. |
| 12. Stability of Tenure | Frequent job turnover harms productivity; stability is essential. |
| 13. Initiative | Employees should be encouraged to take initiative and innovate. |
| 14. Esprit de Corps | Teamwork and harmony among employees enhance efficiency. |
b. F.W. Taylor’s Scientific Management Principles
F.W. Taylor, the "Father of Scientific Management," introduced principles based on efficiency and productivity:
Science, not Rule of Thumb – Decisions should be based on scientific analysis rather than intuition.
Harmony, not Discord – Employer-employee relationships should be cooperative.
Mental Revolution – Changing attitudes toward work benefits both employees and management.
Standardized Work Methods – Work processes should be studied and optimized.
Differential Piece Rate System – Employees should be incentivized based on performance.
c. Elton Mayo and the Human Relations Approach
Elton Mayo’s Hawthorne Experiments emphasized that employee motivation is influenced by social and psychological factors, not just financial incentives. His studies led to the development of modern Human Resource Management (HRM).
Functions of Management
Management functions describe what managers do in an organization. Fayol categorized management into five functions, which later evolved into four key functions:
a. Planning
Planning is the blueprint of organizational success. It involves:
Setting objectives
Forecasting future trends
Developing strategies
Allocating resources
Example: A company like Tata Motors plans its product launches based on market research and customer preferences.
b. Organizing
Organizing involves structuring resources and activities to achieve objectives efficiently. It includes:
Defining roles and responsibilities
Establishing a hierarchy
Allocating resources effectively
Example: In a hospital, doctors, nurses, and administrative staff have clearly defined roles to ensure smooth operations.
c. Leading (Directing)
Leadership involves motivating, guiding, and influencing employees toward achieving organizational goals. It includes:
Communication
Motivation
Leadership styles (Autocratic, Democratic, Laissez-Faire)
Example: Ratan Tata’s leadership in the Tata Group showcases the importance of visionary leadership in business growth.
d. Controlling
Controlling ensures that actual performance aligns with the set objectives. It includes:
Setting performance standards
Measuring actual performance
Taking corrective actions
Example: Google uses performance analytics to track employee productivity and improve efficiency.
Management is both a science and an art. While principles provide structured guidelines, managerial functions ensure smooth execution. Whether you’re preparing for UGC NET, an MBA, or a corporate role, mastering these concepts will give you a solid foundation in business management.
Understanding Henri Fayol’s 14 principles, F.W. Taylor’s scientific management, and the four key functions of management will not only help you in exams but also in your professional career.
So, the next time you observe an organization running efficiently, remember – effective management is at its core! 🚀