Skip to main content

Why management is important? Emerging challenges for management. Functions and Principles of Management

Why management is important? Emerging challenges for management. Functions and Principles of Management 




An organization relies upon group effort to achieve a predetermined goal. And whenever two or more people are required to work together, management is necessary.

The importance of management are:
  1. Accomplish goals
  2. Make better decisions
  3. Earn more profit
  4. Encourage initiative
  5. Improve corporative image
  6. Motives employees
  7. Encourage innovation
  8. Facilitates growth and expansions
  9. Improve life of workers
  10. Improve relations
  11. Reduce wastage
  12. Optimum use of resources

Emerging challenges for management

  1. Globalization
  2. Technology
  3. Social responsibility
  4. Change management
  5. Cultural diversity
  6. Empowerment
  7. Quality assurance and productivity
  8. Human resource management
  9. Organizational design
  10. Leasing organization
  11. Development of environmentalism

Principle of Management

  1. Division of work
  2. Authority and responsibility
  3. Discipline
  4. Unity of command
  5. Unity of direction/function
  6. Subordination of individual interest
  7. Remuneration
  8. Centralization 
  9. Scalar chain
  10. Line of authority
  11. Order
  12. Equity
  13. Stability of tenure of personal
  14. Initiative
  15. Team spirit
  16. Management by exception
  17. Human resource management

Functions of management 

1. Planning
  • Foundation
  • Setting organizational objectives
  • Forecasting the events
  • Formulating policies and procedures
  • Preparing work schedule and budget
  • Identify all the main issue which need to be addressed
  • Review periodically.
2. Organizing includes
  • Identifying major activities
  • Grouping them into managerial units
  • Delegating necessary authority to fulfill given responsibility

3 Staffing Includes
  • Continuous process
  • Determining the total manpower requirement
  • Recruitment, selection and appointment of right person to right job
  • Organizing seminar, workshop and training to develop employees skill
  • Remunerating employee according to their skill and ability

4 Directing/ Leading

Directing is complex function that includes all those activities which are designed to encourage a subordinate to work effectively and efficiently.

It concerned with interpersonal aspect of managing. It consists of:
  • Motivation
  • Leadership
  • Communication
  • Supervision


5 Controlling includes
  • Setting standards
  • Measuring actual performance
  • Identifying deviation
  • Finding and analyzing deviation
  • Analyzing the cause of deviation
  • Taking corrective action to achieve predetermined goals
Labels:

Popular posts from this blog

Life Cycle Hypothesis

This theory was developed by Franca Modigliani, Nobel Laureate of 1985, Richard Brumberg and Albert Ando in 1950s and 1960s. It is called MBA hypothesis. According to this theory, consumption is a function of the lifetime expected income of the person. The consumption depends on the resources available to the person, the rate of return to the capital, the spending plan and the age at which the plan is made. It depends on:  i. Resources  ii. Spending plan  iii. Rate of return on capital  iv. The age at which the plan is made  According to Modigliani the point of departure of the life cycle model is the hypothesis that consumption and saving decision of household at each point of time reflects more or less conscious attempt to achieve the preferred distribution of consumption over the life cycle. Subject to the constraint imposed by the resources occurring to the household over...
Read more

Brief review of UN, UNIDO, OECD and world bank project evaluation techniques

The UNO was formally established aiming at achieving to establish corporation and peace and to develop international cooperation between various nations of the world effectively in Oct. 24, 1945. The UNO was established as a powerful international organization for the development of different nations after the world war 1st and 2nd. This organization is doing its important works by spreading its helping hands even today in the field like education, health, social activities, culture, and science, etc. It has some agency:  World Bank  UNIDO (United Nations Industrial Development Organization)  OECD (Organization for Economic Co-operation and Development)  World Bank is a project evaluation technique of the world bank. It was established in Dec 27, 1945, Prime financial of organization of UNO. It was established to eliminate poverty and economic problems. The world bank applies the following techniques while monitoring and evaluating its loans prov...
Read more

Project Authority

Authority is a special power of making decisions regarding any problem. On the other hand, the Authority is the power to take and implement the management decision. It is also the right to influence others and to use resources. It is the legal power to edit the activities of the project or organization.  Each project is formal to achieve its predetermined objectives within the project constraints i.e. time, cost and equality performance. Top management delegates the project authority to project manager and others (for risky project, more authority is required whereas less risky project many require less authority).  Project authority creates the project structure. It also facilities coordination between the project manager and other managers as well as organization manager and project manager. Authority is the legal power on the basis of which managers can provide a reward as well as punishment. In project: Project authority is shifted vertically downward from...
Read more