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Principle of Management Collection of people to achieve a goal is called organization. Coordinative activities of others to get work done.

Art of getting work done through others. - Management is to manage. Management refers to the process of getting activities completed efficient and effectively. Management is the systematic pr0cess of planning, organization, leading and controlling. Definition: management is the process of planning, organizing, leading and controlling of resources to achieve the organizational goal with efficient and efficient and effectively way. Characteristics of Management: 1) To give order to your activities 2) Based on fact and figures (not imaginary) 3) Time utilization 4) Objective setting to get your goals 5) To judge the deficiencies and a course of action to correct those deficiencies 6) How to run operation of the organization in a smooth way 7) To focus on quality and time fulfillment or order 8) Management is decision making process Establish of rls among resources such as men, money, materials and machines are necessary.

Difference between management and administration: Management: It comes on top Policy Making Order/instruction High authority/responsibilities

Administration : It is a part of management Implementation of decisions Follow /feedback Law authority/responsibility

Functions of Management:

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Planning: To think in advance Deciding in advance for future and course of actions Answer the questions like what, where, when, why, and how Choose appropriate goal and course of action to best achieve those goals.

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Organizing: Arrangement of humans, physical and financial resources Placing human resources and defining their jobs Arrange them in functional positions such as where machinery will be allocated. Establish task and authority relationship that allow people to work together to achieve the organizations goals Establish relation between subordinates that will provide each with the information Leading: Motivate co-ordinate and engage individual and groups together to achieve the organizations goals. Managing conflicts, crises and problems Motivate the employee to do work in best interest of the organization Motivate member of organization so that they work together Staffing: Right person for right job This function includes selection and training of employee Directing: Guidelines to subordinate To give direction and instructing to the subordinates in order to utilize the organization resources and time It means communicating the people at work Controlling: Under this function the manager is to check either the things are moving in the right direction and if not, where are the pitfalls (deficiencies) and to correct them at the earliest. Comparing actual performance with standard To find out the deficiencies and take correct actions Steps and procedures for not repeating the deficiencies Co-ordination: Complete and timely information of what you do to coworkers and subordinates Prefer general interest Sharing of information

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Henry Foyols Principles: (1) Division of work: specializing of labor in relevant work on basis of knowledge, skills, and qualification. (2) Authority and responsibility: those who give order must be responsible for their decisions. Managers require the right to give orders as well as the power to exact obedience and to establish the degree of responsibility. (3) Discipline: to follow the rules and regulation. This principle deals with the sanction of rewards for good work of meeting standards and punishment for poor work or failure to meet standards. (4) Unity of commands: employees receive orders from one superior only. (5) Unity of direction: similar activities must report to only one person. All similar activities in an organization should be grouped together under one manager. (6) Subordinate of individuals interest to the general interest: personal interest of managers and employees are subordinate to the overall interest of organization. (7) Remuneration of personal: employees and managers alike receive fair, responsible, rewarding of effort. Employees should be paid fairly according to their work. (8) Centralization: power and authority should be concentrated at the upper level of organization as much as possible. (9) Scholars chain: organization from a chain of superior ranging from the highest ranking to the lowest linking manager. (10) Order: both material and things and people should be in their proper places at proper time. Arranging human and physical resources logically and neatly. (11) Equity: managers should be kind and fair when dealing with subordinates. Managers should threat the entire employee equal so that there should be no nepotism and favoritism. (12) Stability: in order to provide stability of an organization, long-term commitment must be encouraged. (13) Initiative: subordinates should have the freedom to take initiative. (14) Esprit de corps (team work): harmony among all organization managers results in great strength. It means promoting team spirit and it is the key to success.

Toylors Principles of Management: His books name is principle of scientific management published in 1911. Toylor introduces four principles: Develop a science for each element of a mans work which replaces the old rule of thinks method. Developing the best way of performing each job. (2) Scientifically select and train, teach and develop the workman where as in the past he choose his own work and trained himself as best as he could. They are trained enough they will, show high performance. (3) Heartily co-operate with the men (employee/worker) to ensure all of the work being done in accordance with the principle of science which have been developed, Men establishing harmonious co-operation between management and workers so that the job is performed in the desired way. (4) There is an almost equally division of the work and responsibility between management and workmen. The management takes overall work for which they are better fitted then the workmen. While in the past almost all of the work and the greater part of the responsibility were thrown upon the men.
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Summary: Develop science for each element of work and old method to be replaced. (2) Select policy and then train, teach and develop the workers. (3) Collaboration and cooperation with workers and managers. (4) Give equal work opportunity to all workers.
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Scope and importance of management: (1) Co-ordination of different factors (2) Achievement of objectives (3) Increasing productivity (4) Facing competition (5) Management necessary to all organization (6) Discipline

Nature of Management:
Science: science is both the body of knowledge and research. It is the method of obtaining new knowledge. Management as science: management is science that compresses various principals but is not an exact science. It is an inexact science, making use of other disciplines in solving problems of decision making. (1) Exact science: exact science means body of knowledge where cause and effect relationship does not change with the change in condition. It is always the same irrespective of time and place. (2) Inexact science: the cause and effect relationship in not always the same. It changes with the change in the situation in which principles are evolved. The result differs in different situation. Arts: Arts mean application of skills in finding a desire result and art is the way of doing things skillfully. Management as arts: Management principles are evolved and such principles are used to the best of their effort by the managers in solving the management problems in given situation. Principles are evolved only to make use of them in practice and how to use them is an art. Management is an art and a better manager is he who knows how to apply the knowledge in dealing with a particular problems. Management as a profession: The knowledge and degree of management are helpful for those who have the degrees. BBA, MBA (finance, HRM, marketing and general management). At the passage of the time they reach to the highest positions. The general management can perform their duties of different organizations (health, agriculture, governmental agencies etc) They can establish their own business as a management services/consultancy. Consultancy consists of (advices, planning, controlling, and fee/commission).

Type of planning: 1. Strategic plans 2. Operational plans 3. Tactical plans 4. Short plans 5. Long plans 6. Intermediate plans 7. Specific plans 8. Directional plans 9. Formal plans 10. Informal plans (1) Strategic planning: Strategic planning is an organizations process of defining its strategy or direction, and making decision on allocating its resources to achieve this strategy, by including its capital and people. Top ( for whole organization ) Bonder allocation (2) Operational plans: It is a department plans. Operational plans are those plans that specify details how objective are to be achieve, in other words it defines ways or methods to attain the objective Operational plans are related plans with the question how to product. (3) Short terms plans: Short term plans related to a period of one year or less than one year, it is to accomplish objectives in the near future. In Pakistan it is called annual development planning For example budgeting of financial for one year. (4) Medium form plans: Medium form plans covers a period of over one year but less than three year. (5) Long Term plan: those plan which are beyond five years as known as long term planning. (6) Specific Planning: specific plans that are clearly defined and have no chance for uncertainty is called specific plan. (7) Directional Plan: directional plans are the plans which give general guideline to specific target. It allows making changes according to environment. - step by step movement. - we cant by pass a stage or office. (8) Formal Plan: formal plan is comprehensive plans and is formally communicated to the organization members. (9) Informal plan: sometimes managers develop plans for the future but do not formally put them on paper and may not even communicate it to the member of organization such plans are informal plans. (10) Tactical Plan: they deal with the determination of the specific utilization of the resources of the organization in achieving its strategic goals.

Organizing: Organizing is a process that managers use to establish a structure of working relationship that allows organizational members to work together to achieve organizational goals. What tasks are to be done, who is to do them, how the tasks are to be grouped, who report to whom and where decisions are to be make. Give right jobs to right person with authorities plus relationship.

Organization: two or more them two person work together to achieve the goal is called organization. The three essential element of the organization are common purpose, willingness to serve and communication. The process of identifying and developing responsibility and authority and establishing relationship for the purpose of enabling people to work most efficiently and accomplishing objectives.

Type of organization: 1. Profit organization: All the business organization is profit organization operating to reach the goal of making profit. 2. Non-profit organization: Main motive of the non-profit organization is providing some kind of service to the society such as services and so on (NGO, WALFAR ) 3. Manufacturing organization: Manufacturing organization produce the product 4. Service organization: Service organization sells the manufacturing product or offers some service such as repairing overhauling public utilities. Main objective of the service type of organization is to provide some kind of service to the society. 5. Public organization : The term public generally means open to outsiders in many countries public organization are the ones owned and operated by the government the railway system ,telecommunication system, certain heavy industries, and other public utilities come under the category of public type of organization 6. Private organization: Private organization is that owned and operated by private individual. The owners of the private organization is free in decision making, all the profit and loss belongs to the owner of the organization 7. Formal organization: formal organization has organizational structure showing the chain of commands, authority, responsibility and relationship. 8. Informal organization: informal organization lacks rigid organization structure. The organization may exist within the formal organization or may exist independently various.

Organization process involves the following steps: a. The first step in building the organization is to establish objectives of the enterprise as a whole. b. The next step of the manager is to identify and enumerate (to give a list) the total activities involve for attainment of the objectives. c. The next step is to group various activities and assign it to respective jobs. d. After assignment of activities to various jobs, next step is to hire properly qualified personal (staff) of the jobs. e. To get the word done there should be proper delegation of authority. f. Bringing of co-ordination and integration of various for the attainment of the single and unified objective.

Principle of organization: Principle of unity of objectives: an organizations structure maybe regarded as sound if it and every part of it, facilitate the accomplishment of objective. 2. Principle of division of work and specialization: the work assigned to a person should be, as far as possible, according to his abilities. 3. Principle of span of control: span of control represent a numerical limit of subordinates to be supervised or controlled by a manager. 4. Principle of unity of command: every subordinate in the organization must receive instruction only from one superior. 5. Principle of scholar chain: there should be a clear line of command running from the top to the bottom of the organization. Every person must know it clearly who is his superior and who his subordinates are. 6. Principle of Delegation: authority delegated to each manager should be adequately to enable him to accomplish the given job. 7. Principle of flexibility: the organizational structure should be flexible enough to adopt technical and other environmental change us and when required. 8. Principle of continuity: the organization structure should be design so as to have continuity in operation each and every change must b easily adoptable in the organization without dislocation of operations. 9. Principle of balance: the various parts of the organization should be kept balanced and no one should give undue at the cost of others. 10. Principle of efficiency: the organizational structure should facilitate the accomplish of objective at minimum possible cost. 11. Principle of co-ordination: the organizational structure should be facilitating unity of effort and co-ordination among different individuals and groups. 12. Principle of definition of job every position in the organization should be clearly defined in relation to other position in the organization.
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Communication: Communication is the transmission of information meaning from an individual of group to another. Communication is the exchange of facts, ideas, opinion or emotion by more person. Communication is a two way process. Process of communication:
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Ideation: the process of communication starts when the sender has an idea to communicate in other words he thinks what message should send. Encoder/sender: the next step in the communication process involves encoder, converting the idea into words or gestures that will convey the meaning. Medium: the medium over which the message is physically transmitted is the channel. Message maybe delivered by computer, telephone, letter, announcement, spoken words or fa Decoding/receiver: the message must reach the receiver who is at the other and of the communications process. Decoding means translation of symbol encoded by the sender into idea for understanding the message receiver is decoder. Feedback: the response of the receiver creates the feedback, a vital part of the communication process feedback helps the sender to know that the message was received and understood.

Types of Communication:
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Formal communication: it refers to communication that traveled along the forma channels of command it shows relationship between two position and technically speaking communication through chain of commands is known as formal communication. Informal communication: These types of communication are free from all formalities planned in an organization here no formal organization chart followed to convey the message. Downward communication: communication that flow from the top of the organization down through various levels to the bottom of the organ along with are known as downward communication such communication includes order, instructions rules policies and program. Upward communication: it is just reverse of downward communication under this system, communication flows from the bottom to the top of organization through middle managers along with line. Horizontal communication: horizontal communication refers to the flow of information between departments or people of equal level in an organization structure. Diagonal communication: it is between people who are neither in the same department or are of the same level of organizational structure. Verbal communication (oral): transmission of message with the help of spoken words is considered as verbal or oral communication (face to face, phone, written). Non verbal communication: includes facial expressions and body gestures (smiles).

Barriers to communication: 1.

Semantic barriers Physical barriers Organizational barriers Semantic Barriers: semantic refers to the relationship of sign to their reference, sympols have a number of meanings and we have to choose any of them accordinating to the extent of the text of communication. o Different language o Words with different meaning o Poor vocabulary Physical Barriers: physical barriers are environmental factors like: o Any disturbance or interference that reduces the clarity and effectiveness of communication is called noise. o The distance between sender and receiver. Organizational Barriers: Hierarchy for example formal boss subordinate relationship in organization restricts the free flow of communication especially in upwards direction.

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Overcoming barrier to communication: Promoting two way communication Selecting a suitable communication media Proper language means using simple and direct language Creating a climate of trust Proper timing what, where, why, when and how

Staffing: Stuffing is defined as filling, and keeping filled position in the organization structure. To fill the vacancies from skilled experienced person Finding and identifying talent The staffing function includes two functions, namely recruitment and selection.

Recruitment: phase includes planning of man power resources and locating the potential personnel. The planning stage of recruitment involves estimating the number of employees needed and the skills and qualification required their jobs. The second stage in recruitment is the locating and evaluating various sources of manpower.

Selection: phase involves matching job requirement with characteristics and qualification of potential candidates and making accept and reject decisions.

Sources of recruitment: Internal sources External sources Internal sources: internal sources of recruitment mean promotion of worker from the lower rank to the upper rank. Majority of companies have established a policy of companies have established a policy of promotion from within, that is vacancies other then at the lowest level are filled up by promotion the personnel to the higher office. External sources: external sources of recruitment the personnel who are selected through external sources often bring innovative idea and suggestion to an organization. Contract through present employees Former employees Advertisement School, college, university and technical institution
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Selection: Steps in selection process.


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Preliminary interview or screening: the primary purpose is to determine whether the candidates meets the minimum requirement for job their interviews .. Brief. Application blanks: a blank application form or application is the next important step in the selection procedure. a. Identifying personal information b. Information regarding education c. Information regarding experience d. Expected salary and allowances and other benefits. e. Information regarding community activities Employment tests: a. Trade test b. Psychological test a. Trade test: technical jobs require these types of test such as for recruitment a stenographer in an office a test can be taken to check his speed both at dictation typing. b. Psychological test: these tests are Aptitude test Intelligence test Interest test Personality test Reference check: employment generally provides a column in the application blank for reference, if the applicant crosses all the above hurdles, an investigation may be made on the reference supplied by the applicant. Medical examination: for almost all the companies, medical examination are a part of selection process for all applicant it is conducted after the final decision has been made to select the candidate. Final selection: if a candidate successfully over-comes all the tests given above, he would do declared selection an appointment letter, will be given to him mentioning the term of appointment, pay scale post on which selected (etc).

Training and education: Training and education must not be confused. Training is concern with increasing knowledge and skills in doing a particular job which is located in an organization. On the other hand education is concern with increasing general knowledge and understanding of the total environment. Training method: On the job method o Coaching o Job rotation o Special projects and task force o Experience Of the job method o Special courses o Role playing o Case study o Conference o Management game Directing o It is the process in which the managers instruct, guide, and oversee the performance f its workers to achieve predetermined goals. o Directing is telling people what to do and seeing that they do it to the best of their ability.

Principle and techniques of direction: a. Principle of harmony of objective: individual join organization for certain objectives, at the same time organization has its own objective. The management through proper direction techniques should try to integrate these two objectives. For example organization objectives and personal objectives. b. Principle of maximum individual contribution: the management should adopt such direction techniques that may encourage maximum possible contribution from each subordinate. c. Principle of managerial communication: the success of an organization depends very much on the effectiveness of communication system in the organization between the superior and his subordinates. d. Principle of comprehension: direction conveys subordinates what to do? How to do? When to do? Simply communication this is not sufficient clear understanding of direction, enable them to get clear situation and avoid unnecessary explanation from superior.

Leadership Leads: motivate the employee how to run the organization and lead the organization, the process of influencing a group toward the achievement of goals. Leadership: is the ability of an individual to influence, motivate and enable others to contribute toward the effectiveness and success of organization. Leadership is the personal quality of an individual who organize the efforts of the followers and direct thus activities towards the attachment of the organization goals. Traits/qualities of successful leader: Makes good decision Motivate people to work with him Has control of the situation Assume responsibility Fair in his treatment of subordinates Inspires confidence

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