Tamilnadu Samacheer Kalvi 12th Commerce Notes Chapter 1 Principles of Management

→ Management is part and parcel of our day to day life.

→ It is goal oriented and it is an art of getting things done with and through others.

→ Management has now developed into a specialised body of management theory and philosophy.

→ Tools of management such as, accounting, business law, psychology, statistics, econometrics, data processing, etc., have enhanced the practical utility of the science of management.

→ Since 1951, many specialised schools of management offering master1 s degree in business management and administration.

→ “To manage is to forecast, to plan, to organise, to command, to co-ordinate and to control.” – Henry Fayol

→ “Management is a multipurpose organ that manages a business and manages manager, and manages worker and work.” – Peter F. Drucker

→ The art of management is fully reflected in the decision making capacity of a manager.

→ Judgment and imagination are essential even in a computerised economy. A computer cannot replace a manager in decision making.

→ “A professional manager is one who specialises in the work of planning, organising, leading and controlling the efforts of others and does so through systematic use of classified knowledge, a common vocabulary and principles and who subscribes to the standards of practice and code of ethics established by recognised body.” – Louis A. Allen.

→ The administration is ought to take business decisions while the management need to execute them to get things done with and through other functional staff working under them who are called employees of the same organization(s).

→ A process indicates the dynamic nature of management. It also implies that change is a constant reality of organisational life and management is the management of change.

→ There are twin purposes of the management process: (1) Maximum productivity or profitability and (2) Maximum human welfare and satisfaction.

→ Mr. Frederick Winslow Taylor (F.W. Taylor) brought about a scientific approach to managing the workforce after his experiments with the African and South American slaves employed in a coal field in England.

→ According to Taylor, even a small production activity like loading iron sheets into box cars can be scientifically planned.

→ There should be complete harmony between the workers and the management since if there is any conflict between the two, it will not be beneficial either for the workers or the management.

→ Workers should be considered as part of management and should be allowed to take part in decision making process of the management.

→ Workers should also resist from going on strike or making unnecessary demands from management.

→ The work assigned to each employee should suit his/her physical, mental and intellectual capabilities.

→ The Span of Management refers to the number of subordinates who can be managed efficiently by a superior.

→ With the wider span, there will be less hierarchical levels, and thus, the organizational structure would be flatter.

→ With the narrow span, the hierarchical levels increases, hence the organizational structure would be tall.

→ When the span is narrow, it requires more managers to be employed in the organization.

→ The benefit of using the wider span of management is that the number of managers gets reduced in the hierarchy, and thus, the expense in terms of remuneration is saved.

→ Also, the subordinates feel relaxed and develop their independent spirits in a free work environment, where the strict supervision is absent.

Samacheer Kalvi 12th Commerce Notes