Principles of Management

• Planning is the process of setting goals and determining the best way to achieve them.
• The concept of management has acquired special significance in the present competitive and complex business world.
• Efficient and purposeful management is absolutely essential for the survival of a business unit.
• Management concept is comprehensive and covers all aspects of business.
• In simple words, management means utilising available resources in the best possible manner and also for achieving well defined objectives.
• Management is a distinct and dynamic process involving use of different resources for achieving well defined objectives.
• The resources in management process are: men, money, materials, machines, methods and markets.
• These are the six basic inputs in management process (six M's of management) and the output is in the form of achievement of objectives.
• Management is the end result of inputs and is available through efficient management process.
• Management is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively.
• Management comprises planning, organizing, staffing, leading, coordinating and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal.
• Planning is the process of setting objectives, targets, and formulating plans to accomplish them.
• Planning is both the need of the organisation and the responsibility of managers.
• Steps involved in Planning include setting objectives, target setting, formulating plans, and monitoring progress.
• Planning helps managers analyse the present condition to identify the ways of attaining the desired position in future.
• Standing plans are used for activities that occur regularly over a period of time and are designed to ensure that internal operations of an organisation run smoothly.
• Effective planning involves simplicity of the plan, i.e., the plan should be clearly stated and easy to understand.
• The plan should fulfill all the requirements of the organisation.
• Other types of plans include strategy, objectives, policy, procedure, method, rule, programme, and budget.
• Single-use plans are developed for a one-time event or project and are not likely to be repeated in future.
• An organisation has to prepare a plan before making any decision related to business operation, or undertaking any project.
• Plans can be classified into several types depending on the use and the length of the planning period.
• Limitations of Planning include rigidity, lack of flexibility, reduced creativity, high costs, time consumption, and lack of guarantee of success.
• Resourcing encompasses the development and manipulation of human resources, financial resources, technological resources and natural resources.
• Management is essential for the conduct of business activity in an orderly manner.
• Management is a vital function concerned with all aspects of working of an enterprise.
• According to Harold Koontz, "Management is the art of getting things done through and with people in formally organized groups."
• Review decision: The last and important step in the decision making process is evaluating your decision for effectiveness.
• Risk: Decisions are made under the condition of risk when the manager is aware of the potential consequences of a decision but is uncertain about its likelihood.
• Identify the alternatives: With relevant information at your fingertips, identify possible solutions to your problem.
• Unstructured problems: Problems are unstructured when they are complex, unpredictable, and unclear with respect to the information needed to resolve them.
• Certainty: Decisions are made under the condition of certainty when the manager has perfect knowledge of all the information needed to make a decision.
• Developing alternative solutions: After defining and analyzing the problem, the next step is to develop alternative solutions.
• Structured problems: Problems are structured when they are familiar, straightforward, and clear with respect to the information needed to resolve them.
• Implementation of the decision: After gathering all relevant information, develop and consider the potential paths to take.
• Decision making under various conditions: Generally, the decision maker makes decisions under the condition of certainty, risk and uncertainty.
• Uncertainty: Decisions are made under the condition of uncertainty when the manager is uncertain about the potential consequences of a decision and its likelihood.
• Programmed decisions: Decisions are made under the condition of certainty when the manager has prepared responses to common problems.
• Take action: Once you've made your decision, act on it by developing a plan to make your decision tangible and achievable.
• According to Henry Fayol, "To manage is to forecast and to plan, to organise, to command, to coordinate and to control."