Assignment on Principles for Management and

its application in Bangladesh

Submitted to

Prof. Dr. AHM Habibur Rahman

Primeasia University,

Banani, Dhaka

Submitted by

Md. Yousuf Ali

Summer Semester – 2019

Course Code No MGT- 501

Course Tittle: Principles of Management

ID No: 183003072

Submitted Date 26.07.2019

 Management an Overview

Management is an art of getting things done through and with the people in formally
organized groups. It is an art of creating an environment in which people can perform
and individuals and can co-operate towards attainment of group goals‖. According to
F.W. Taylor, ―Management is an art of knowing what to do, when to do and see that it
is done in the best and cheapest way‖.

1. The act, manner, or practice of managing; handling, supervision, or control:

management of a crisis; management of factory workers.

2. The person or persons who control or direct a business or other enterprise.

3. Skill in managing; executive ability .Management is a purposive activity.

It is something that directs group efforts towards the attainment of certain pre –
determined goals. It is the process of working with and through others to effectively
achieve the goals of the organization, by efficiently using limited resources in the
changing world. Of course, these goals may vary from one enterprise to another. E.g.:
For one enterprise it may be launching of new products by conducting market surveys
and for other it may be profit maximization by minimizing cost .Management involves
creating an internal environment: -It is the management which puts into use the various
factors of production. Therefore, it is the responsibility of management to create such
conditions which are conducive to maximum efforts so that people are able to perform
their task efficiently and effectively. It includes ensuring availability of raw materials,
determination of wages and salaries, formulation of rules & regulations etc. Therefore,
we can say that good management includes both being effective and efficient. Being
effective means doing the appropriate task i.e, fitting the square pegs in square holes
and round pegs in round holes. Being efficient means doing the task correctly, at least
possible cost with minimum wastage of resources.

Characteristics or Nature of management can be highlighted

as:-
 Management is Goal-Oriented:

The success of any management activity is accessed by its achievement of the

predetermined goals or objective. Management is a purposeful activity. It is a tool which
helps use of human & physical resources to fulfill the pre-determined goals. For
example, the goal of an enterprise is maximum consumer satisfaction by producing
quality goods and at reasonable prices. This can be achieved by employing efficient
persons and making better use of scarce resources.

Management integrates Human, Physical and Financial Resources: In an organization,

human beings work with non-human resources like machines. Materials, financial
assets, buildings etc. Management integrates human efforts to those resources. It
brings harmony among the human, physical and financial resources.

 Management is Continuous:

Management is an ongoing process. It involves continuous handling of problems and

issues. It is concerned with identifying the problem and taking appropriate steps to solve
it. For achieving this target various policies have to be framed but this is not the end.
Marketing and Advertising is also to be done. For this policies have to be again framed.
Hence this is an ongoing process.

 Management is all Pervasive:

Management is required in all types of organizations whether it is political, social,

cultural or business because it helps and directs various efforts towards definite
purpose. Thus clubs, hospitals, political parties, colleges, hospitals, business firms all
require management. Whenever more than one person is engaged in working for a
common goal, management is necessary. Whether it is a small business firm which may
be engaged in trading or a large firm like Tata Iron & Steel, management is required
everywhere irrespective of size or type of activity.

 Management is a Group Activity:

Management is very much less concerned with individual‘s efforts. It is more concerned
with groups. It involves the use of group effort to achieve predetermined goal of
management of ABC & Co. is good refers to a group of persons managing the
enterprise Organized Activities:

 Management is a process of organized activities.

Groups of people cannot be involved in the performance of activities without organized

activities. Management comes into existence where a group of people are involved in
achieving a common objective.

The organized activities may take a variety of forms ranging from a tightly structured
organization to a loosely-knit organization. Existence of Objectives: The existence of
objectives is a basic criterion of every human organization. The organizational
objectives are the desired state of affairs which an organization attempts to realize. This
realization of objectives is sought through the coordinated efforts of the people
constituting an organization.

 Decision-making:

Management process involves decision making at all levels. Decision-making describes

the process by which a course of action is selected as the way to deal with a specific
problem. If there is only one alternative, the question of decision making does not arise.
The quality of alternatives which a manger selects determines the organization‘s
performance, and the future of the organization.

 Relationship among resources:

The essence of management is integration of various organizational resources.

Resources include money, machine, materials, and people. Management is concerned
with the proper utilization of human resources which, in turn, utilize other resources

 Working with and through people:

Management involves working with people and getting organizational objectives

achieved through them. Working through people is interpreted in terms of assigning
activities to subordinates. Multidisciplinary

Management is multidisciplinary because it includes knowledge/information from

various disciplines-economics, statistics, math’s, psychology, sociology, ecology,
operations research, history, etc. Management integrates the ideas and concepts taken
from these disciplines and presents newer concepts which can be put into practice for
managing the organizations.

 Management is dynamic:

Management has framed certain principles, which are flexible in nature and change
with the changes in the environment in which an organization exits. Relative, Not
Absolute Principles:

Management principles are relative, not absolute, and they should be applied according
to the need of the organization. Particular management principle has different strengths
in different conditions. Therefore, principles should be applied according to the
prevailing conditions.
 Management Science or Art:

Management likes other practices-whether medicine, music composition, or even

accountancy-is an art. It is know-how. Yet managers can work better by using the
organized knowledge about management. It is this knowledge that constitutes science.
Thus, managing as practice is an art; the organized knowledge underlying the practice
may be referred to as science. Management as Profession:

Management has been regarded as a profession by many while many have suggested
that it has not achieved the status of a profession. Schein concluded that by some
criteria management is indeed a profession, but by other criteria it is not. Today we can
see many signs that management is working towards increased professionalism.

 Management is Universal:

Management is a universal phenomenon. However, management principles are not

universally applicable but are to be modified according to the needs of the situation.

Organization, Administration and Management

The terms organization, administration and management are often used
interchangeably. Sometimes they are used to mean one and the same thing. But, for
the student of management, a line of distinction needs to be drawn between them and
the terms need to be delimited. By organization we simply mean the “collection,
preservation and co-ordination of the elements of an enterprise in an integrated
manner.” It also signifies the bringing together of various resources of an enterprise into
harmonious whole. It is the primary job of an entrepreneur, and the existence of an
enterprise cannot be conceived of without it. Scholars suggest that the pre-condition of
success of any venture is proper organization. As a matter of fact, it is organization
which ensures the employment of resources for the accomplishment of enterprise goals.
The task of organization is performed by the promoters and/or entrepreneurs
themselves. The function of organization is to pull the resources of an enterprise
together .On the other hand, administration is the driving force of an enterprise which
sets the objectives and formulates plans to achieve them. Administration also
determines the principles for ensuring the effective performance of the activities of
different divisions and branches of the enterprise. In a nutshell, administration is
entrusted with the responsibility of making plans and providing leadership for achieving
goals. In this sense administration may be viewed as top-level management and the
chief boss. Thus the board of directors of a company or the syndicate of an university
can be called the administrative organ, performing the planning and leadership
functions for the whole enterprise/ institution. Administration is entrusted with planning
and effective execution of company policies through efficient leadership. Management is
primarily entrusted with the responsibility of executing the plans and policies set by the
administration for achieving pre-determined goals and objectives. The success of an
enterprise/institution is thus dependent on how efficiently the management can execute
plans and policies set by the administration. Thus the administration cannot be
successful without the co-operation of management. The job of each manager is,
therefore, to win the co-operation of all those who work under him so that they work for
enterprise goals set by administration.

Importance of Management
No enterprise can run without management. Some people may say that the main
purpose of management is to make a profit. For most business firms, an important
purpose is the creation of a surplus. Management is to establish an environment in
which people can accomplish organizational goals with the least amount of time,
money, materials and personal dissatisfaction or in which they can achieve as much as
possible of a desired goal with available resources.10 The chief purpose of
management is to achieve organizational policy objectives by ensuring unhindered
progress and improvement of the organization through the maximum utilization of its
resources to the best possible results. Management can greatly affect not only an
organization but also the socio-economic and political goals of a country. Improving
economic and social standards of living and creating a better political environment are
the real challenges before modern management. The achievement of socio-political and
economic targets in Bangladesh will depend on whether or not the management of the
country can efficiently handle and contain the course of current and future events in the
social, political and economic arenas. Management makes human effort more
productive. It brings better equipment, plant, offices, products, services, and human
relations to our society. Effecting improvements and progress is its chief purpose. There
is no substitute for good management. It is an essential social process. It is charged
with the responsibility of taking action that will make it possible for individuals to make
their best contributions to group objectives. Management thus applies to small and large
organizations, to profit and non-profit enterprises, to manufacturing as well as service
industries. Effective managing is the concern of the corporation president, the hospital
administrator, the government secretary, the football manager, the college principal and
the university Vice-Chancellor. Management draws up plans and motives and guides
the employees for their best performance within the limits of the organization's available
resources. It is sound management rather than only the resources that can keep the
development process on track. Nature has given us enormous resources. Most of these
resources require manage mental attention so that they can be used for the benefit of
the society. Management is essential because it makes plans, directs employees and
motivates them, co-ordinates the activities of all and ensures performance through
control. It may so happen that an enterprise with a weak resource base may become
successful with sound management. Moreover, it is often heard that there are huge
natural resources in countries like Bangladesh but it is due to the absence of proper
management that they are being wasted. In many countries of Asia with a poor resource
base, such as Japan, Singapore, Taiwan and the like, huge industrial development has
not been possible without sound management.

School of Business economic giants like the USA and Germany could not have reached
their present position without proper management. Conversely, the oil rich countries like
Saudi Arabia, Iran or Iraq have failed to make any headway towards industrialization
because of the poor quality of their managerial capability. In fact management is the
most important of all resources. It is vital both at the micro and the macro level. It is
essential for every enterprise, for every society, for every country. President Roosevelt
once rightly said, "No ideology, no ism, no political theory can win a greater output with
less effort from a given complex of human and material resources without sound
management".11There is no disagreement among scholars regarding the importance of
management in using the factors of production for achieving desired results. Scientific
and technological developments can bear no fruit without management. Thus the
contemporary thrust is more on managerial development, than on scientific research.
The use of information technology and computer software in management is an added
impetus to the overriding importance of management. The only hope of countries with
meager natural and/or economic resources is to improve management and ensure
better life for their people.

Management is usually associated with group efforts: It is usual to associate

management with a group. Although people as individuals manage many personal
affairs, the group emphasis of management is universal. Each and every enterprise
entails the existence of a group to achieve goals. It is now established that goals are
achieved more readily by a group than by any one person alone.

Management is accomplished through the efforts of others: Management is sometimes

defined as “getting things done through others’ efforts.” Besides the manager of a firm,
there may be accountants, engineers, system analysts, salesmen and a host of other
employees working but it is the manager’s job to integrate all their activities. Thus it can
well be said that participation in management necessitates relinquishing the normal
tendency to perform all things oneself and getting tasks accomplished through group
efforts.

Management is purposeful: Wherever there is management there is a purpose.

Management, in fact, deals with the achievement of something definite, expressed as a
goal or objective. Management success is commonly measured by the extent to which
objectives are achieved. Management exists because it is an effective means of getting
the necessary work accomplished.

Management is action-oriented: Managers focus their attention and efforts on bringing

about successful action. Successful managers have an urge for accomplishment. They
know when and where to start, what to do for keeping things moving, and how to follow
through.

Management is intangible: Management is often called the unseen force, its presence
being evidenced by the results of its efforts - motivation among employees, discipline in
the group, high productivity, adequate surplus etc. Conversely, the identity of
management may also be felt by its absence or by the presence of its direct opposite −
mismanagement. The consequence of mismanagement is anybody’s guess

Management is indispensable: Management can neither be replaced nor substituted by

anything else. Even the computer which is the wonderful invention of the twentieth
century can only aid but not replace management. We know that the computer is an
extremely powerful tool of management. It can widen a manager's vision and sharpen
his insight by supplying more and faster information for making key decisions. The
computer has enabled the manager to conduct analysis far beyond the normal
analytical capacities of man. But what happens in reality is that the computer can
neither work by itself nor can it pass any judgment. The manager plays his/her role by
providing judgment and imagination as well as interpreting and evaluating what the
information/data mean in each individual case.

Management can ensure better life: A manager can do much to improve the work
environment, stimulate people to perform better, achieve progress, bring hope and
accomplish better things in life

Types of Managerial Skills Robert L. Katz, a teacher and business executive, has
popularized a concept developed early in this century by Henri Fayol, a famous
management theorist16and father of modern management. Fayols identified three basic
skills - technical skill, human skill and conceptual skill. Diagnostic skills and analytical
skills are prerequisites to managerial success. Technical skill: Technical skill is the
ability to use the specialized knowledge, procedures and techniques of a field of
activities. Accountants, engineers, surgeons all have their technical skills necessary for
their respective professions. Most managers, especially at the lower and middle levels,
need technical skills for effective task performance. Technical skill is required to perform
a particular job in prescribed ways. Technical skill enables a person to accomplish the
mechanics of performing a particular job. This may be knowing how to maintain
accounts, how to conduct a financial audit, how to construct a building or how to
perform in the operation theatre. Technical skills are important especially for first line
managers, who spend much of their time training subordinates and supervising their
work-related problems. In order to be effective as managers and also to command the
respect of their sub-ordinates, they must first know how to perform tasks assigned to
their subordinates. Human skill: Human skill is the ability to work with, understand, and
motivate other people as individuals or in groups. Managers spend much of their time
interacting with people both inside and outside their organizations. We may recall here
Mintzberg's explanation of how top (and middle) managers spend their time: 59 percent
in meetings, 6 percent on the phone, and 3 percent on tours.17 All of these managerial
activities involve other people. Human skill includes the ability to work with others and
get co-operation from people in the work group. This means, for example, knowing what
to do and being able to communicate ideas and beliefs to others and understanding
what thoughts others are trying to convey to the manager. Moreover, the manager with
human knowledge and skill understands and recognizes what views are brought to
situations and in turn what adjustments in these views might be made as a result of
working with associates. Human skill is chiefly necessary for co-coordinating and
maintaining relationships with people inside and outside the organization for taking care
of the human factors that exist in the organizational structure

The ability to understand others and communicate with people both inside and outside
the organization is of special significance to one who is called on to handle
disturbances, allocate resources, and negotiate. As a matter of fact, the roles of leader,
disseminator, negotiator and resource allocator require skill in motivating. This skill, for
example, will help a manager to persuade a sales force to accept a raised sales
presentation or win the co-operation of the group of angry subordinates. It is, however,
interesting to note that not all managers exhibit good human (interpersonal) skill.
Managers, who are harsh with their sub-ordinates, would simply tend to increase
personal turnover; moreover, it becomes increasingly difficult to replace those who
leave. The other things being equal, the manager who has good human skill is likely to
be more successful than the one with poor human skill. Conceptual skill: Conceptual
skill is the ability to co-ordinate and integrates all of an organization’s interests and
activities. It requires having the ability to visualize the enterprise as a whole, to envision
all the functions involved in a given situation or circumstance, to understand how its
parts depend on one another, and anticipate how a change in any of its parts will affect
the whole. Conceptual skills, in fact, depend on the manager’s ability to think in the
abstract and to view the organization in a holistic manner. Conceptualization requires
imagination, broad knowledge and mental capacity to conceive abstract ideas. Applying
this requirement may involve suggesting a new product line for a company, introducing
computer technology to the organization’s operations or entering the international
market. One example of conceptual skill may be that the managing director of a bank
visualizes the importance of better service for its clients which ultimately helps attract a
vast number of clients and an unexpected increase in its deposits and profits
Functions of Management
A process is a systematic way of doing things. We refer to management as a process to
emphasize that all managers, irrespective of their aptitude or skill, engage in some inter-
related functions in order to achieve their desired goals. In this lesson we will briefly
describe the functions that comprise the process of management.

 Planning:

Planning may be defined as making decisions in advance as to what is to be done in

the future. It is a future course of action. It implies that managers think through their
goals and actions in advance and their actions are based on some method, plan or logic
rather than on hunch. Plans give the organization its objectives and set up the best
procedures for reaching them. Planning involves selecting missions and objectives and
the actions to achieve them, it requires decision making, i.e. choosing future courses of
action from among alternatives. In short, planning means determining what the
organization’s position and situation should be at some time in the future and deciding
how best to bring about that situation. Planning helps maintain managerial effectiveness
by guiding future activities. Plans may be of various types (as elaborated in chapter 3)
covering various time periods, and are usually set by top-level managers. Anyway, they
are the guidelines by which (a) the organization obtains and commits the resources
required to reach its objectives; (b) members of the organization carry on activities
consistent with the chosen objectives and procedures; and (c) progress toward the
objectives is monitored and measured so that corrective action can be taken if progress
in unsatisfactory. Planning reflects the vision of an organization. It means formulating
the management’s future course of action with a view to achieving the organization’s
objectives and goals. Planning involves a number of steps - the first step is the selection
of goals for the organization. The second step is the establishment of goals for each of
the organization’s sub-units, departments, divisions etc. The third step is to establish
programmers for achieving goals in a systematic manner. Planning requires an ability to
foresee, to visualise, and to look ahead purposefully. In short, planning is essential and
is a fundamental function of management.
 Organizing:

Once a manager has developed a work plan, the next phase of management is to
organize the people and other resources necessary to carry out the plan. Organizing
may be referred to as the process of arranging and allocating work, authority and
resources among an organization’s members so they can Principles of Management

School of Business achieves the organization’s goals. In fact, organizing involves work
distribution which is guided by considerations for such things as component activities –
the members of the group, and the physical facilities available. These component
activities are so grouped and assigned that minimum expenditure or maximum
employee work satisfaction is attained. Organizing includes arranging and distributing
work, authority and resources among the members of the organization in order to
accomplish the goals best.Organising produces a structure of relationships in an
organization, and it is through these structured relationships that future plans are
pursued. Organizing, then, is that part of managing which involves establishing an
intentional structure of roles for people to fill in an organization. It is intentional in the
sense of making sure that all the tasks necessary to accomplish goals are assigned to
people who can do them best. The purpose of an organization structure is to help
people create an environment for human performance. The structure must define the
tasks to be done. The roles so established must also be designed in the light of the
abilities and motivations of the people available. However, designing an effective
organization structure is not an easy managerial task. Many problems are encountered
in making structures fit situations, including both defining the kinds of jobs that must be
done and finding the people to do them.20 All these fall under the definition of
organizing, which is a fundamental function of management. *Staffing is related to
organizing and it involves filling and keeping filled, the positions in the organization
structure. This can be done by determining the positions to be filled, identifying the
requirement of manpower, filling the vacancies and training employees so that the
assigned tasks are accomplished effectively and efficiently. The managerial functions of
promotion, demotion, discharge, dismissal, transfer, etc. are also included with the
broad task “staffing.” Staffing is important because it ensures the placement of the right
person at the right position and this, in fact, is closely related to “organizing” as a
function of management [details about organizing is discussed in unit-6] Staffing is the
effective and efficient deployment of manpower across the organisation.3. Leading:
Leading is an important job of the manager. It involves directing, influencing and
motivating employees to perform essential tasks. To lead these people to contribute to
organization and group goals constitutes an essential function of the manager. In fact,
the manager has to get on intimate terms with them if he wants to lead them
successfully. The manager leads in an attempt to persuade others to join them in
pursuit of the future that emerges from the planning and organizing steps. By
establishing the proper atmosphere, managers help their employees do their best.
Leading draws all the members working in the organization into an intimate relationship.
The manager also persuades others to join in the common pursuit of the enterprise’s
future goals. Efficient managers need to be effective leaders. Since leadership implies
fellowship and people tend to follow those who offer a means of satisfying their own
needs, hopes and aspirations it is understandable that leading involves motivation,
leadership styles and approaches and communication

 Leading:
Leading is an important job of the manager. It involves directing, influencing and
motivating employees to perform essential tasks. To lead these people to contribute to
organization and group goals constitutes an essential function of the manager. In fact,
the manager has to get on intimate terms with them if he wants to lead them
successfully. The manager leads in an attempt to persuade others to join them in
pursuit of the future that emerges from the planning and organizing steps. By
establishing the proper atmosphere, managers help their employees do their best.
Leading draws all the members working in theorganisation into an intimate relationship.
The manager also persuades others to join in the common pursuit of the enterprise’s
future goals. Efficient managers need to be effective leaders. Since leadership implies
fellowship and people tend to follow those who offer a means of satisfying their own
needs, hopes and aspirations it is understandable that leading involves motivation,
leadership styles and approaches and communication

Coordinating is also essential in leading. Most authors do not consider it a separate

function of management. Rather they regard co-coordinating as the essence of
manager ship for achieving harmony among individual efforts towards accomplishing
group targets. Co-coordinating helps achieving harmony among individual efforts
towards accomplishing group targets. Individuals in any organization often interpret the
same interests in different ways, and then efforts toward mutual goals do not
automatically mesh with the efforts of others. Thus it becomes the central task of the
manager to reconcile differences in approach, timing, effort, or interest and to
harmonise individual goals to contribute to organization goals.
 Controlling:

The final phase of the management process is controlling. As theorganisation moves

toward its goals, management must monitor its progress. It must make sure that events
conform to plans. Controlling involves measuring performance against goals and plans
and helping correct deviations from standards. As a matter of fact, controlling facilitates
the accomplishment of plans. Although planning must precede controlling, plans are not
self-achieving. They guide the manager in the use of resources to accomplish specific
goals. Activities are evaluated to determine whether they conform to the plans. Through
the controlling function, the manager keeps the organization on track. Increasingly,
organizations are establishing new ways to enhance the quality of the control function.
One popular approach is Total Quality Management (TQM) which focuses management
on the continuous improvement of all operations, functions, and, above all, processes of
work. Meeting the customers' needs is a primary concern.23 Controlling steers the
organization towards its goals according to the guidelines set by planning.

It is clear that control activities generally relate to the measurement of achievement.

Some means of controlling, like the budget for expenses, inspection records, and the
record of labor hours lost, are generally familiar. Each measure also shows whether
plans are working out. If deviations persist, correction is indicated. Whenever results are
found to differ from planned action, persons responsible are to be identified and
necessary actions are to be taken to improve performance. Thus outcomes are
controlled by controlling what people do.

Henry Fayol synthesized 14 principles for organizational design and effective administration.
Fayol’s 14 principles are:

1. Specialization/Division of Labour

A principle of work allocation and specialization in order to concentrate activities to

enable specialization of skills and understandings, more work focus and efficiency.

2. Authority with Corresponding Responsibility

If responsibilities are allocated then the post holder needs the requisite authority to carry
these out including the right to require others in the area of responsibility to undertake
duties.

3. Discipline

The generalization about discipline is that discipline is essential for the smooth running
of a business and without it – standards, consistency of action, adherence to rules and
values – no enterprise could prosper. “in an essence – obedience, application, energy,
behavior and outward marks of respect observed in accordance with standing
agreements between firms and its employees “

4. Unity of Command

The idea is that an employee should receive instructions from one superior only. This
generalization still holds – even where we are involved with team and matrix structures
which involve reporting to more than one boss – or being accountable to several clients.
The basic concern is that tensions and dilemmas arise where we report to two or more
bosses. One boss may want X, the other Y and the subordinate is caught between the
devil and the deep blue sea.

5. Unity of Direction

The unity of command idea of having one head (chief executive, cabinet consensus)
with agree purposes and objectives and one plan for a group of activities) is clear.

6. Subordination of Individual Interest to the General Interest

Fayol’s line was that one employee’s interests or those of one group should not prevail
over the organization as a whole. This would spark a lively debate about who decides
that the interests of the organization as a whole are. Ethical dilemmas and matters of
corporate risk and the behavior of individual “chancers” are involved here. Fayol’s work
– assumes a shared set of values by people in the organization – a unitary where the
reasons for organizational activities and decisions are in some way neutral and
reasonable.

7. Remuneration of Staff

The general principle is that levels of compensation should be “fair” and as far as
possible afford satisfaction both to the staff and the firm (in terms of its cost structures
and desire for profitability/surplus).

8. Centralization

Centralization for Henry Fayol is essential to the organization and a natural

consequence of organizing. This issue does not go away even where flatter, devolved
organizations occur. Decentralization – is frequently centralisaed-decentralisation!!! The
modes of control over the actions and results of devolved organizations are still matters
requiring considerable attention.

9. Scalar Chain / Line of Authority

The scalar chain of command of reporting relationships from top executive to the
ordinary shop operative or driver needs to be sensible, clear and understood.

10. Order

The level of generalization becomes difficult with this principle. Basically an organization
“should” provide an orderly place for each individual member – who needs to see how
their role fits into the organization and be confident, able to predict the organizations
behavior towards them. Thus policies, rules, instructions and actions should be
understandable and understood. Orderliness implies steady evolutionary movement
rather than wild, anxiety provoking, unpredictable movement.

11. Equity

Equity, fairness and a sense of justice “should”pervade the organization – in principle

and practice.

12. Stability of Tenure

Time is needed for the employee to adapt to his/her work and perform it effectively.
Stability of tenure promotes loyalty to the organization, its purposes and values.

13. Initiative

At all levels of the organizational structure, zeal, enthusiasm and energy are enabled by
people having the scope for personal initiative. (Note: Tom Peters recommendations in
respect of employee empowerment)

14. Esprit de Corps

Here, Fayol emphasizes the need for building and maintaining of harmony among the
work force, team work and sound interpersonal relationships.

Business is an integral part of the social system; and it influences other elements
ofsociety. The organization of the business, the way the business functions innovations,
new ideas etc., may affect society. Business activities have greatly influenced social
attitudes, values, outlooks, customs traits etc. Thus, it is true that business influences
society. It is also true that society influences business. The type of products to
remanufactured and marketed, the marketing strategies to be employed, and the way
the business should be organized are all influenced by the society. Hence, a business
has to adapt to these uncontrollable external environments. Business, in general, refers
to the totality of all enterprises in a country, engaged in manufacturing, industry, trade,
finance, banking etc. In modern societies, business occupies dominating place affecting
the life of citizens in different ways. Traditionally, the term business commonly referred
to commercial activities aimed at making a profit. The economic theory made a
fundamental assumption that profit maximization was the basic objective of every firm.
According to Milton Friedman, "there is only one social responsibility of business – to
use its resources and engage in activities designed to increase its profits". The old
concept of business, confining it to commerce and private profit, has undergone a
radical change. Today, business is regarded as a social institution forming an integral
part of the social system. Therefore, business has to contribute to man’s happiness, his
freedom and his mental, moral and spiritual growth.

Business men have an obligation to run the business on those lines which make the
business desirable from the point of view of society. Every individual living in
41Management and Society the society has social obligations towards it. Viewed in this
prospective, businessmen who are merely custodians of factors of production belonging
to the society, have also an obligation to pursue those policies, to make those decisions
and to the follow those lines of action which are desirable in terms of the objectives and
values of the society. It may be argued by some people that business is wholly an
economic unit and therefore, its responsibilities are limited only to economic aspect of
general public and it must be judged by its economic performance. If this reasoning is
accepted, the businessmen might be concerned with the economic costs of
unemployment, but not with the loss of human dignity and social disorganization that
accompany it. However, this is not right approach for it is very difficult to separate
economic aspects of life from its other value

Thus, Management is a vital aspect of the economic life of man, which is an organized
group activity. A central directing and controlling agency is indispensable for a business
concern. The productive resources – material, labour, capital etc. are entrusted to the
organizing skill, administrative ability and enterprising initiative of the management.
Thus, management provides leadership to a business enterprise. Without able
managers and effective managerial leadership the resources of production remain
merely resources and never become production. Under competitive economy and ever-
changing environment the quality and performance of managers determine both the
survival as well as success of any business enterprise. Management occupies such an
important place in the modern world that the welfare of the people and the destiny of the
country are very much influenced by it.

The performance and application of the principles of Management practices are visible
in some organizations in Bangladesh especially in Banking, Media and Pharmaceutical
sectors and foreign liaison offices for many years. But the phenomenon are absent in
most of the business and Govt. Organizations in Bangladesh. It is true that business
influences social attitudes, values, outlooks, custom traits etc. and society influences
business. The type of products to be manufactured and marketed, the marketing
strategies to be employed, and the way the business should be organized are all
influenced by the society. Hence, a business has to adapt to these uncontrollable
external environments. It is necessary to take this broad view because the influence and
involvement of business are extensive. Business cannot isolate itself from the rest of
society. Every individual living in the society has obligations towards society.
Businessmen therefore have an obligation to run the business on those lines which
make the business desirable from the point of view of society. Leading businessmen of
the world have reaffirmed. It affects their decisions and actions. They recognize that
since they are managing an economic unit in the society, they have an obligation to the
society with regard to their decisions and actions affecting social welfare. Business has
obligations towards different segments of the society. Business is an integral part of the
social system; and it influences other elements of society. The organization of the
business, the way the business functions innovations, new ideas etc., may affect
society. So, principles of management must be implemented fully for the best
performance in the whole managerial areas and for sustainable development of
Bangladesh.