PRINCIPLES OF MANAGEMENT

Amrutha Mary Lukose

• Management is not just about business.
• It is the foundation of every successful organization.
• Today we begin our journey into the science, art, and discipline of
managing people and processes.
Today’s Learning Goals -You will learn:

• What is Management?
• Why is Management important?
Management

• Management is a systematic process that involves

coordinating and integrating various resources (human,
financial, material, and informational) to achieve
organizational goals.
• It is both a science (based on principles and theories) and an
art (requires creativity, leadership, decision-making).
• It operates through defined functions: Planning, Organizing,
Staffing, Directing, and Controlling (commonly called the POSDC
model).
“Management is the process of planning, organizing, staffing,
directing, and controlling the efforts of organizational members
and using all other organizational resources to achieve stated
organizational goals.”
Expert Definitions

Koontz and O'Donnell: “Management is the

art of getting things done through and with
people in formally organized groups.”
Harold Koontz: “Management is defined as the
process of designing and maintaining an
environment in which individuals, working together
in groups, efficiently accomplish selected aims.”
Harold Koontz: “Management is defined as the
process of designing and maintaining an
environment in which individuals, working together
in groups, efficiently accomplish selected aims.”
Harold Koontz: “Management is defined as the
process of designing and maintaining an
environment in which individuals, working together
in groups, efficiently accomplish selected aims.”
Mary Parker Follett: “Management is the art of
getting things done through people.”
Henry Fayol: “To manage is to forecast and plan, to organize,
to command, to coordinate and to control.”
Efficiency vs Effectiveness in Management
Definition of Efficiency
• Efficiency means doing things right.
• It refers to the optimal use of resources (time, money,
manpower, materials) to produce the maximum output.
• Focus is on minimizing cost, reducing waste, and increasing
productivity.
• Keyword: Input–Output Ratio
• Example: A manager reduces production cost by using fewer
raw materials without compromising quality → Efficient
• Definition of Effectiveness
• Effectiveness means doing the right things.
• It refers to the ability to achieve desired goals or
targets within a given time.
• Focus is on goal accomplishment and result
orientation.
• Example: A marketing campaign successfully increases
sales and customer base as targeted → Effective
• Relationship Between Efficiency and Effectiveness
• Both are necessary for successful management.
• A manager can be:Efficient but not effective – saves resources but fails to
meet goals.
• Effective but not efficient – meets goals but wastes resources.
• The ideal is to be both efficient and effective.
• Best Managers = High Efficiency + High Effectivenes
Let’s say you are running a public transport system:
•You reduce fuel consumption and maintenance cost →
Efficient
•You ensure all buses run on time and serve all key routes →
Effective
•You do both together → Successful Management
•Efficiency = Minimum input → Maximum output
•Effectiveness = Achieving the desired goal
•Both are essential pillars of modern management.
•Focus on balancing the two leads to sustainable
success.
 Key Differences Between Efficiency and
Effectiveness
Aspect Efficiency Effectiveness
Meaning Doing things right Doing the right things
Focus Resource utilization Goal achievement
Concerned With Process/output ratio Outcomes/results
Low cost, low time, high Degree of goal
Measurement
productivity completion
Minimize inputs, Meet objectives, targets,
Priority
maximize output or customer needs
Producing more with Reaching monthly sales
Example
fewer workers target
Which of the following best defines "efficiency" in
management?
A) Achieving the organizational goals
B) Doing the right things at the right time
C) Doing things right with minimum resources
D) Ensuring maximum profits at all costs
Effectiveness in management is concerned with:
A) Cost-cutting and reducing input
B) Achieving desired objectives
C) Increasing the number of employees
D) Reducing the working hours of employees
Consider the following statements:
1.A manager who completes a task using more resources than
required is efficient.
2.A manager who meets the target within time and budget is
both efficient and effective.
3.Effectiveness is more important than efficiency in achieving
results.
Which of the above are correct?
A) 1 and 2 only
B) 2 and 3 only
C) 1 and 3 only
D) All of the above
Assertion (A): Effectiveness in management is about achieving
desired goals.
Reason (R): It focuses on minimizing the cost of operations.
A) Both A and R are true, and R is the correct explanation of A
B) Both A and R are true, but R is not the correct explanation of
A
C) A is true, but R is false
D) A is false, but R is true
 Features / Characteristics of Management

• Goal-Oriented – Focused on achieving specific objectives.

• Universal – Applicable in all fields and at all levels.
• Social Process – Involves people working in groups.
• Multidisciplinary – Uses principles from economics, psychology,
sociology, etc.
• Continuous Process – Ongoing and dynamic in nature.
• Intangible Force – Cannot be seen, but its presence is felt through
results.
• Integrative Force – Brings together people, processes, and
resources.
 Features / Characteristics/Nature of Management

1. Goal-Oriented Activity
• Every management process is focused on achieving specific
organizational goals.
• Goals may be economic (profit), social (welfare), or strategic
(expansion, innovation).
• Example: A hospital management system aims to improve
patient care quality.
2. Universal Application
• Management is applicable in all types of organizations:
• Business firms Government offices NGOs Educational
institutions Hospitals, etc.
• Whether profit-making or service-based, all organizations need
management.
3. Integrative Force

• Management brings together human, financial,

material, and informational resources.
• Ensures coordination and teamwork between
departments.
• Example: Marketing and production teams must
collaborate to launch a new product.
4. Continuous Process
• Management is a never-ending cycle of planning,
organizing, directing, and controlling.
• It's dynamic and repeats at every level.
• Daily planning meetings and performance reviews are
examples.
5. Group Activity
• Management is concerned with people working together as
a team.
• It involves cooperation, communication, and collaboration.
• No manager works in isolation; they lead teams.
6. Dynamic Function
Management constantly adapts to external and internal
changes:
• Technology
• Market conditions
• Government regulations
• Consumer preferences
• Example: E-commerce firms shifting strategies post-
COVID.
7. Multidisciplinary Approach
•Management uses tools and concepts from:
• Economics – cost management
• Psychology – motivation, behavior
• Sociology – group dynamics
• Mathematics/Statistics – forecasting,
budgeting
8. Intangible but Observable
Management cannot be touched, but its results can be observed:
• High efficiency
• Low employee turnover
• Smooth operations
You don’t see management, but you feel its presence through
results.
9. Decision-Making Activity
Managers are required to take decisions every day:
• Operational
• Financial
• Strategic
Effective management depends on good judgment and
analysis.
11. Leadership and Communication
•Management involves leading people, resolving conflicts,
and ensuring the free flow of information.
•A good manager is also a good communicator and
motivator.
12. Development of Managers
•Management is a profession that evolves through:
• Experience
• Education
• Training
•It emphasizes professionalism and ethical behavior.