Business Management Principles and Core Functions
Fundamentals of Management
Definition of Management
Management is the process of planning, organising, staffing, directing, and controlling to achieve organizational goals.
Objectives of Management
- Organisational: Profit and survival
- Social: Society welfare
- Personal: Employee needs
Importance of Management
- Achieving goals: Target fulfilment
- Efficiency: Cost reduction
- Development: Growth
Levels of Management
- Top: Policy making
- Middle: Implementation
- Lower: Supervision
Nature of Management
- Science: Systematic knowledge
- Art: Personal skill
- Profession: Code and training
Principles of Management
Definition of Principles
These are general guidelines for managerial decision-making.
Nature of Principles
- Universal: All organisations
- Flexible: Situational
- Behavioural: Human focus
Fayol’s Principles
- Division of work: Specialisation
- Authority & responsibility: Power-duty
- Discipline: Rules obedience
- Unity of command: One superior
- Unity of direction: One plan
- Subordination: Organisation first
- Remuneration: Fair pay
- Centralisation: Authority level
- Scalar chain: Authority line
- Order: Right place
- Equity: Fair treatment
- Stability: Job security
- Initiative: Employee ideas
- Esprit de corps: Team spirit
Chapter 4 – Planning
Definition of Planning
Planning involves deciding in advance what to do and how to do it.
Steps in Planning
- Objectives: Desired results
- Premises: Assumptions
- Alternatives: Different options
- Selection: Best choice
- Implementation: Action
- Follow-up: Review
Importance of Planning
- Direction: Clear path
- Reduces risk: Uncertainty control
- Coordination: Unity
- Efficiency: Waste reduction
Limitations of Planning
- Rigidity: Inflexible
- Time consuming: Slow process
- Costly: High expense
Types of Plans
- Objectives: End goals
- Policies: Guidelines
- Procedures: Steps
- Rules: Strict norms
- Programmes: Detailed plans
- Budgets: Financial plan
Chapter 5 – Organising
Definition of Organising
Organising is the process of identifying and grouping work, and assigning authority and responsibility.
Steps in Organising
- Identify activities: Work division
- Grouping: Departments
- Assign duties: Responsibility
- Authority: Power
Types of Organisation
- Formal: Official structure
- Informal: Social relations
Delegation
- Authority: Power grant
- Responsibility: Task duty
- Accountability: Answerability
Chapter 6 – Staffing
Definition of Staffing
Staffing is the process of recruiting, selecting, and developing employees.
Staffing Process
- Manpower planning: HR needs
- Recruitment: Attracting
- Selection: Choosing
- Placement: Right job
- Training: Skill development
- Appraisal: Performance check
Importance of Staffing
- Competent staff: Efficiency
- Growth: Expansion
- Motivation: Job satisfaction
Chapter 7 – Directing
Definition of Directing
Directing involves guiding, motivating, leading, and supervising employees.
Elements of Directing
- Supervision: Monitoring
- Motivation: Incentives
- Leadership: Influence
- Communication: Information flow
Chapter 8 – Controlling
Definition of Controlling
Controlling ensures that activities are performed according to plans.
Steps in Controlling
- Standards: Benchmarks
- Measurement: Performance
- Comparison: Deviation
- Analysis: Cause
- Correction: Improvement
Importance of Controlling
- Goal achievement: Accuracy
- Coordination: Balance
- Efficiency: Cost control
Relationship with Planning
- Planning: Base
- Controlling: Feedback