Most Important Functions of Management

Some would define management as an art, while others would define it as a science. Whether management is an art or a science isn’t what is most important. Management is a process that is used to accomplish organizational goals; that is, a process that is used to achieve what an organization wants to achieve. An organization could be a business, a school, a city, a group of volunteers, or any governmental entity. Managers are the people to whom this management task is assigned, and it is generally thought that they achieve the desired goals through the key functions of management. Some would include leading as a managing function, but for the purposes of this discussion, leading is included as a part of directing.… Read the rest

The Principles of Modern Management by Frederick Taylor

Frederick Taylor, known as the Father of Scientific Management, conducted many studies at Bethlehem Steel Company in Pittsburgh. His experience as an apprentice, a common labor, a foreman, a master mechanic, and then a chief engineer of a steel company gave Taylor an excellent opportunity to know first hand the problems and attitudes of workers and to see the great possibilities for improving the quality of management. To improve productivity, Taylor examined the time and motion details of a job, developed a better method for performing that job, and trained the workers. Taylor also offered a piece rate that increased as workers produced more.… Read the rest

Henri Fayol’s Principles of Management

Henri Fayol (1841-1925) who is known as the Father of Modern Management, was a French industrialist who developed a framework for studying management. He wrote “General and Industrial Management”. His five functions of managers were plan, organize, command, coordinate, and control.

Classification of Business Activities

According to Fayol, all activities could be classified into

  • Technical (manufacturing or production)
  • Commercial (buying, selling and exchange)
  • Financial (search for and optimum use of capital)
  • Security (protection of property and persons)
  • Accounting (including statistics) and
  • Managerial

Henri Fayol’s Principles of Management

His fourteen principles of management included division of work, authority and responsibility, discipline, unity of command, unity of direction, and subordination of individual interests to general interests, remuneration of personnel, centralization, scalar chain, order, equity, and stability of tenure of personnel, initiative, and esprit de corps (union is strength).… Read the rest

Major Schools of Management Thought

Business in today’s world has become an extremely competitive force changing continuously at a rapid rate. Working in the 21st century requires dealing with a dynamic environment with people that have diverse needs. Every business organisation needs to be managed, and hence there is a need for managers. Even years back there was a diverse need for management of organisations. There have been people who have tried to study management so as to make the most efficient and effective use of their resources. There have been scientific methods, and similarly there have been methods based on people’s behavior. Organisations nowadays use these methods in their business management.… Read the rest