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An introduction to the principles and functions of management, with a focus on scientific management. It covers the meaning and scope of management, scientific management theories, levels of management and required skills, and managerial functions. It also discusses the general principles of management from Taylor, Fayol, and Barnard.
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Principles and Functions of
Structure
1.0 Objectives
1.1 Introduction
1.2 Management – Meaning and Scope
1.3 Scientific Management
1.4 Levels of Management and Managerial Skills
1.5 Managerial Functions
1.5.1 Planning 1.5.2 Organising 1.5.3 Staffing 1.5.4 Directing 1.5.5 Controlling 1.5.6 Other Managerial Functions
1.6 General Principles of Management
1.6.1 Taylor’s Principles 1.6.2 Fayol’s Principles 1.6.3 Barnard’s Principles
1.7 Summary
1.8 Answers to Self Check Exercises
1.9 Key Words
1.10 References and Further Reading
After reading this Unit, you will be able to:
This Unit introduces you to the basics of management discipline and its general principles and functional elements. We shall study the meaning, purpose and scope of scientific management in relation to the aims and objectives of any organisation, specifically for library management.
Principles and Practices of
It is very difficult to accurately define management. There is no universally accepted definition of management. Management involves both acquisition and application of knowledge. It does not go by rule of thumb or intuition alone even though it is considered to be an extension of common sense. Hence, management is a combination of both an art and a science. The scientific approach lies in decision-making, planning and in the appropriate use of technology. The artistic approach to management can be found in the tasks of communicating, leadership and goal-setting. A few commonly used definitions of management are given below:
The above definitions and a study of management literature would reveal the following characteristics of management:
Principles and Practices of Management
Theories of leadership and organisation including human motivation and behaviour , organisation relationships and nature of authority of the psychological and sociological methods applied to studying personnel management. The systems approach has enriched management operations by unifying to achieve a common goal. Thus we see that modern management has drawn from studies and experiences from other disciplines and has successfully applied them to enhance productivity.
Self Check Exercise Note: i) Write your answer in the space given below. ii) Check your answer with the answers given at the end of this Unit.
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A manager is anyone, at any level of the organisation, who directs the efforts of other people. S/he is the catalyst who makes things happen. It may be noted that the management of an organisation is performed at different levels. Although the distinctions are by no means clear it is useful to think of managers as being divided into three groups (or levels): (i) Supervisory (or- First line or Operational) Managers are those who directly oversee the efforts of those who actually perform the work. Performance of various routine tasks to obtain desired outputs of every unit and concomitant activities is taken care of at this level; (ii) Middle managers are above the supervisory level but subordinate to the most senior executives of the organisation; they have the responsibility to develop implementation strategies for the concepts determined by top management. Execution, supervision, monitoring and other related functions are taken care of by them; (iii) Top managers are the most senior executives of the organisation. Top managers are responsible for providing the overall direction of the organisation. They carry out planning, maintenance of relations with other agencies, policy making, standardisation, control, evaluation, resources mobilisation, etc. As far as libraries are concerned, often two hierarchies of management operate within libraries. One is that of the library, and the other is that of the organisation to which the library belongs.
Each level of management requires a different composition of managerial skills. Skill is an ability to translate knowledge into action that results in a desired performance. Normally, three kinds of basic skills are identified to be required by managers – (i) Technical skill is the ability to use specific knowledge, methods, processes, practices, techniques or tools of a speciality in performing the work; (ii) Human skill is the ability to interact with other persons successfully, i.e.,
Principles and Functions of Management
ability to understand, work with, motivate and get along with other people; and (iii) Conceptual skill deals with ideas and abstract relationships. It is the mental ability to comprehend abstract or general ideas and apply them to specific situation. It requires a holistic approach to understand the relationship of parts to the whole, the whole to the parts and cause and effect. In other words, viewing the organisation as a whole and to see how the parts of the organisation relate to and depend on one another and the ability to imagine the integration and coordination of the parts of the organisation are essential for this skill.
The importance of these skills depends on levels of management. Technical skill is most important for supervisory level managers and becomes less important as the manager move up to the middle and top levels. Conceptual skill is increasingly important as manager moves up the levels of management. However, human skills are important at every level in the organisation. It may be noted here that there are other kinds of skills required for managers and they are not discussed here. For example, top and middle managers need to have diagnostic and analytical skills. Diagnostic skill is the ability to acquire, analyse and interpret information to determine the cause of change either in inputs or outputs or in the transformation process. Analytical skill (which is complimentary to diagnostic skill) is the ability to determine the cause of change and either to provide corrective action or take advantage of the situation.
All functions or elements of management (to be discussed in next section) will be common to all levels of management in some form or the other. However, the duties and responsibilities of the staff operating at different levels will vary. The chart given below indicates how these three levels of management share their duties and responsibilities as well as the skills required for them.
Table showing levels of management, their responsibilities, duties & skills
Skills Levels Duties & responsibilities Conceptual Top Planning, Policy making, Quality control and Evaluation, Resources Mobilisation Human Middle Execution of Activities, Supervision, Monitoring Technical Supervisory Routine tasks, concomitant activities
In the above table, while all the activities are shared by the three levels of management, the proportion of responsibilities, duties and skills with reference to the activities vary. It should be noted, however that the system will work efficiently only if the three levels work in unison. Top management does very little routine operations, while the operational management level staff does not do much planning. But the middle level management is involved in both planning and routine operational work.
We have already seen that there are several definitions given by experts to explain the meaning and scope of management. One way is to view management as a set of common processes or functions which, when carried out well, lead to organisational efficiency and effectiveness. These processes or functions have been broken down into a set of related elements forming a useful framework.
Principles and Functions of Management
Many scientific techniques and models are available to determine the goals and objectives assess future trends, formulate policies, choose among different alternatives (decision making), preparation and production of plans, etc. There are rational approaches and principles to follow in the planning process. A few of them, in addition to those mentioned above, are listed below:
Inputs to a plan have to come from every unit of the organisation to ensure the involvement and participation of the staff working at the operation supervisory level, besides the top management which is more directly connected with the planning process and responsible for it.
A plan document provides a directive course of executive action incorporating every aspect of the development of the organisation. Policies are framed to help the implementation process. Every plan has to fit into a time frame annual, five year, long range or perspective - and also has to be flexible to accommodate any unanticipated change at any point of time.
The significance and advantages of planning are:
Organising is the process of prescribing formal relationships among people and resources (i.e., personnel, raw materials, tools, capital, etc.) to accomplish the goals.
Organising involves:
Principles and Practices of Management
The term organisation refers to both the process of organisation and the result of that process. Organisation refers to the structure which results from (i) assembling the resources necessary to achieve the organisation objectives, (ii) identifying and grouping work, (iii) defining and delegating responsibility and authority, and (iv) establishing activity-authority relationships. In other words, organisation differentiates and integrates the activities necessary to achieve the objectives. Activities are grouped into working divisions, departments, or other identifiable units primarily by clustering similar and related duties. The result is a network of interdependent units.
Organisational structures usually comprise departments, divisions, sections, units or cells, obtained on the basis of division of works and jobs, These structural patterns reflect horizontal and vertical positions, indicating distribution of work, authority and responsibility, span of control, nature of duties, outflow of work, means for evaluation of work output, staff discipline mechanism, smooth flow, functional points and coordination points, etc.
Studies have been conducted to develop techniques for activity and workload analysis, work and job analysis, job definitions and descriptions, models of organisational structure and similar others. Organisation charts, block diagrams, work flow charts, etc., portray the functions of an organisation vividly, indicating its managerial strength. Some basic principles of organising are listed below:
Libraries are generally organised on the basis of their functions, viz., collection development, technical processing, users’ services, etc. But, they can be organised on the basis of user groups served, subjects/areas handled, products and services generated, or a combination of these. However, organisational structure varies according to the types of libraries, viz., national, public, academic and special libraries.
If organisational structure creates positions at different levels for performing various functions, staffing deals with providing the right type of persons to man them. Indeed persons are the key to the effective functioning of any organisation. In fact, the real strength of an organisation is its personnel; they can make or mar the organisation.
Principles and Practices of Management
of directing. In other words, between two persons in the hierarchy, if A directs B, then B reports to A.
Another important aspect of directing is exercise of control over the system. Control does not merely mean restrictions or restraints to be forced on the system, but they are guidelines for the organisation to perform according to set standards of efficiency and quality. What is implied in this is, accountability, and the obligation of the staff at all levels, of reporting to a higher authority on their productivity both in terms of quality and quantity. But these would need yardsticks and measurement tools and techniques for evaluating performance. Thus, both directing and reporting are closely related to the controlling function.
In simple terms, controlling can be defined as the process of comparing actual performance with standards and taking any necessary corrective action. Hence, the control process consists of (i) establishment of standards (ii) measurement of performance, and (iii) correction of deviations. The standards may be physical standards, cost standards, revenue standards or even intangible standards. Some of the common traditional control measures are budgets, statistical data, special reports, breakeven point analysis, internal audit and personal observation. Other control measures include time-event network analysis like milestone budgeting, program evaluation and review techniques (PERT/CPM), programme budgeting, profit and loss control, return on investment (ROI) and general key result areas like profitability, market position, productivity, public responsibility, etc.
It has already been stated that establishing standards for quality, quantity, cost and time, measuring performance against set standards, and correcting deviations are the three basic steps involved in measurement of performance. Performance is closely related to techniques of operations and technology employed. Modern management uses techniques of Operations Research, Programme Evaluation and Review Technique (PERT) and Critical Path Method (CPM), system analysis and others for improving quality.
A good control system should be forward looking, objective, flexible, economical, understandable, reflect nature and needs of activity as well as the organisation pattern, promptly report deviations and exceptions at critical points and lead to corrective actions. The other important principles of controlling are listed below:
Principles and Functions of Management
Devising effective control instruments for libraries is difficult due to their service and not-for-profit nature. In the absence of realistic, objective and precise standards for measuring performance, libraries resort to use of objectives, budgets, internal audit and the like.
There are some more managerial functions other than the five most important elements discussed above. Motivating, actuating and leading are already mentioned as sub-functions of directing. In addition, communicating, delegating, coordinating, reporting, budgeting, innovating, influencing, representing, etc., are often mentioned as managerial functions. Let us try to understand some of them.
Coordinating
This is the process of linking several activities to achieve a functional whole in the organisation. In other words, it is the process of ensuring that persons who perform interdependent activities work together in a way that contributes to overall goal attainment. Coordinating is the management of interdependence in a work situation. It is much more than just cooperation and it involves an information giving function. We have learnt in the organising function that the work of an organisation is divided into various functional units and it is the coordinating function that ensures that all these units efficiently contribute to the objective. It is in the coordinating process that a manager has to act like a leader and her/his leadership skills are put to test. The best coordination occurs when individuals see how their jobs contribute to the goals of the organisation. To avoid splintering efforts, the dominant goal of the organisation should be clearly defined and communicated to everyone concerned. Goals of subordinate departments should be designed to contribute to the goals of the organisation. Coordination calls for skill of leadership, communication and delegation.
Communicating
As mentioned earlier, communicating is the transfer of information, ideas, understanding or feeling between people. In other words, it is the process of passing information and understanding from one person to another. It needs no further emphasis amongst library and information people. Communication is an all-pervasive phenomenon. Librarians have to communicate with each other in issuing or responding to directives and in carrying out the functions of management. They also communicate continuously with users and authorities. Communication, both written and oral, is used to obtain and give information for planning and decision making. Even though it may be outside the scope of this unit, you may note that there are many obstacles or barriers to effective communication.
Reporting
It has already been said that reporting is converse of directing. Reporting serves the purpose of keeping authorities and the public at large informed about the performance, achievements and shortfalls for a specific period. This function not only helps with a healthy self assessment but also by maintaining good public relations. Libraries usually generate a great amount of statistical data and reports.
Principles and Functions of Management
respectively representing scientific management school, operational management theory and systems theory, are presented.
The fundamental principles that Taylor saw underlying the scientific approach to management may be summarised as follows:
It may be noted that these basic principles of Taylor are not far from the fundamental beliefs of the modern manager, even though some of the techniques Taylor and his colleagues and followers developed in order to put his philosophy and principles into practice, had certain mechanistic aspects.
Noting that the principles of management are flexible, not obsolete and must be usable regardless of changing and special conditions, Fayol listed fourteen principles based on his experience. They are summarised below:
Principles and Practices of Management
Along with scientific management and the manager’s tasks, many scholars and practitioners were thinking about experimenting with, and writing on, industrial psychology and on social theory both of which, in many instances, were stimulated by the scientific management movement. We can get the flavour of these developments by looking briefly at the emergence of industrial psychology, the growth of personnel management, and the development of a sociological approach to human relations and management.
In determining that the task of executives (by which he meant all kinds of managers) was one of maintaining a system of cooperative effort in a formal organisation, Barnard addressed herself/himself first to the reasons for, and the nature of, cooperative systems. The logic of her/his analysis can be seen in the following steps.
Physical and biological limitations of individuals lead them to cooperate, to work in groups; while the basic limitations are physical and biological, once people cooperate, psychological and social limitations of individuals also play a part in inducing cooperation.
The act of cooperation leads to the establishment of a cooperative system in which physical, biological, personal, and social factors or elements are present. S/he also makes the point that the continuation of cooperation depends on effectiveness (does it accomplish the cooperative purpose?) and efficiency (does
Principles and Practices of Management
For all these, management draws from several other disciplines to, work out the principles and practices.
i) Planning, ii) Organising, iii) Staffing, iv) Directing, and v) Controlling
These elements represent the major functional components of the management process. Each one of these major components is further analysed, into sub- components to steamline actual performance. While each one of these components is viewed separately for the sake of convenience, the inter- relationships and interdependencies necessitate their concurrent and simultaneous operation.
Directing is getting things done through persons, individually and collectively. It is a process of exercising control over the system by providing guideline to performance according to set standards of efficiency and quality. It also calls for good interpersonal relationship and effective leadership. Three subfunctions of directing are motivating, actuating and leading.
Fayol enunciated the following fourteen principles:
i) Division of work: Specialisation allows workers and managers to acquire an ability, sureness, and accuracy which will increase output.
Principles and Functions of Management
ii) Authority: The right to give orders and the power to exact obedience are the essence of authority. Its roots are in the person and the position. It cannot be conceived of apart from responsibility.
iii) Discipline: Discipline is compose of obedience, application, energy, behaviour and outward marks of respect between employers and employees.
iv) Unity of command: For any action whatsoever, an employee should receive orders from one superior only. One person, one boss.
v) Unity of direction: One head and one plan should lead a group of activities having the same objective.
vi) Subordination of individual interest, to general interest: The interest of one person or group in a business should not prevail over that of the organisation.
vii) Remuneration of personnel: The price of services rendered should be fair and should be satisfactory to both employees and employer.
viii)Centralisation: Everything that serves to reduce the importance of an individual subordinate’s role is centralisation. Everything that increases the subordinate’s importance is decentralisation. All situations call for a balance between these two positions.
ix) Scalar chain: The chain formed by managers from the highest to the lowest is called the scalar chain or the chain of command. Managers are the links in the chain.
x) Order: This principle is simple advocacy of a place for everyone, and everyone in his or her place; a place for everything, and everything in its place. The objective of order is to avoid loss and waste.
xi) Equity: Kindliness and justice should be practised by persons in authority to extract the best that their subordinates have to give.
xii) Stability of tenure of personnel: Reducing the turnover of personnel will result in more efficiency and fewer expenses.
xiii)Initiative: People should be allowed the freedom to propose and to execute ideas at all levels of an enterprise. A manager who is able to permit the exercise of initiative on the part of subordinates is far superior to one who is unable to do so.
xiv) Esprit De Corps: In unity there is strength. Managers have the duty to promote harmony and to discourage and avoid those things that disturb harmony.
Breakeven Analysis : An approach used to determine the amount of a particular product that must be sold if the firm has to generate enough revenue to cover costs.
Communication : The transfer of -information, ideas, understanding or feelings between people.
Principles and Functions of Management
Motivation : Arousing the desire in the minds of workers to give of their best to the enterprise, i.e., an act of stimulating or inspiring workers.
Network Analysis : Planning, scheduling, monitoring and evaluation of systems for management.
Operations Research (OR): A management function and process of studying organisational activities and problems with the framework of mathematical, statistical and related scientific methods or processes in order to develop, test and apply models and methods of planning, forecasting, solving problems and decision making.
Programme Evaluation : A computer implemented planning and control system designed to help top management in planning, research, problem solving, decision, making and control of organisational process.
Queuing Theory : A form of probability theory used by management to determine and/or to develop optimum methods of handling relationships between units, locations, events, facilities or activities to avoid delays.
Simulation Techniques : A computer technique to create a model by assuming General Principles of Management or imitating a particular method, appearance, form or shape.
Systems Analysis : The scientific study and analysis of all related aspects of an organisational management system to determine the necessary steps for continuation, improvement or correction.
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Principles and Practices of Management
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