Concept of Principles of Management

The process of designing, organising, and maintaining an efficient environment where individuals can quickly achieve their goals is called management. An organisation is a group of various individuals with different needs working together. The function of a manager is to collectively assess these individuals and their different needs to perform their best to complete the task.

The word Management is widely used in all organisations –political, social, cultural, or business- uses the management process as it helps direct the various efforts to a definite purpose. For small or big, profit or non-profit management is essential, and it helps individuals make their best contribution towards the group objectives.  

The Significance of Management 

Management helps in cost reduction, establishes equilibrium and development of society. Management arranges production and resources and organises them in a goal-oriented manner to achieve the goals. Organising and setting the factors that save cost, effort, and time.

Optimum utilisation of resources: Management arranges and utilises physical and manual resource productivity by selecting the best alternative use in industry from various benefits, leading to maximum utilisation of limited resources. Management uses skills, professions, knowledge, and services at an adequate level to avoid the wastage of resources.

Management helps achieve goals: Management arranges the factors of production, resources and organises them in a goal-oriented manner to achieve the goals. Organising and arranging the elements that save cost, effort, and time. It provides direction to the individuals working in the group by motivating team spirit in achieving goals.

Reduces cost: Management uses physical, financial, and manual resources efficiently that provides the best results and using this manner also helps in cost reduction.  

Establishes equilibrium: Management helps the organisation survive in a changing environment. Management shows balance and is irresponsible for the growth and survival of the organisation.  

Essential prosperity of society: Efficient management means better economical production, which implies help in increasing the welfare of people. A difficult task can be completed without any wastage of resources with the help of good management. Management increases profit potential, ultimately leading to profitable business and society. 

Management Principles 

According to Henry Fayol’s, there are 14 management principles, or the fundamental truth of management are:

Principle of only one Boss, 

Division of Labour, 

Party and authority responsibility, 

Unity of direction,  

Equity, 

Order, 

Discipline, 

Initiative, 

Stability of tenure, 

Scalar chain, 

Fair remuneration, 

Centralisation and decentralisation, 

Esprit de Corps, 

Subordination of individual interest to the general welfare.  

The Role of management

The four primary management functions in an organisation are – Planning, organising, leading, and controlling. 

Planning: In a management role, planning is choosing the goals and the actions to pursue those goals and then determining what strategies to use, what resources to utilise and what measures to be taken to achieve that goal. 

Organising: The management role of organising is establishing working relationships that allow workers to work together to achieve their organisational goals. 

Leading: Leading functions of management role include articulating the vision energising, and motivating individuals to achieve their goals.  

Controlling: The management’s role is to evaluate how well individuals achieve their goals, improve performances, and take action. Having control helps the manager make decisions, establish standards, compete and compare.    

Using these four functions and management principles, a manager works to increase efficiency and effectiveness improves understanding and potential of profit of an organisation. Management also performs the leadership and interpersonal, informational, and decision-making roles. The decision-making role is a vital role of management, and all managers are required to make decisions.

Does management help in the development of society?  

By producing good quality products at the lowest prices, providing employment, and adopting new technologies to raise the living standard of the society, that’s how management helps in the development of society. Management enables the organisation to make better employment opportunities, which ultimately helps develop the community.   

Conclusion

The process of designing, organising, and maintaining an efficient environment where individuals working together in groups can quickly achieve their goals is called management. The four primary management functions in an organisation are –Planning, organising, leading, and controlling. Using these four functions and management principles, a manager works to increase efficiency and effectiveness improves understanding and potential of profit of an organisation.

According to Henry Fayol’s there are 14 management principles or the fundamental truth of management – Principle of only one Boss, Division of Labour, Party and authority responsibility, Unity of direction, Equity, Order, Discipline, Initiative, Stability of tenure, Scalar chain, Fair remuneration, Centralisation and decentralisation, Esprit de Corps, Subordination of individual interest to the general welfare.