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The technique of management by exception is relevant here. It ensures that superior manager’s attention is warranted only when an issue goes beyond the subordinate’s authority.

1. Physical, 

2. Intellectual, 

3. Ethical.

Authority refers to the right/power to take decisions and get them implemented through subordinates.

Henry Fayol’s 14 principles of management.

Fayol classified them into three main parts and these are : 

1. Managerial qualities and training 

2. Elements of management 

3. Principles of management.

Fayol divided the activities of an industrial undertaking into six parts : 

1. Technical activities 

2. Commercial activities 

3. Financial activities 

4. Security activities 

5. Accounting activities 

6. Managerial activities.

Fayol divided the activities into six parts.

1. Technical activities 

2. Financial activities.

(d) All of these

This can be accomplished by doing the following : 

1. Exemplary conduct of the superiors. 

2. Fair agreement with the employees. 

3. Constant vigilance and supervision of the activities of the organisation.

(c) Henry Fayol

Difficulty of Setting Goals :

It is very difficult to set quantitative, measurable, realistic, verifiable goals. Future uncertainties, difficulty in accurate forecasting, dynamic environment, government policies, etc. make setting of goals a difficult exercise.

Problem of Balancing and Coordination : 

To establish coordination between long term and short-term goals, and between resources and goals to be achieved, is a major problem of MBO.

F.W. Taylor.

G.R. Terry and Franklin.

Strategic management plays a vital role in this cut-throat competition market and globalised market. Its importance is as follows : 

(i) Ensures Long-Term Survival in the Marketplace :

Strategic management identifies opportunities and threats that influence the organisational performance. It makes use of opportunities and minimises threats to make sure that organisation can survive in the market by outperforming its rivals. 

(ii) Effective and Smooth Running of Business : 

Strategic management ensures effective and smooth running of business as it analyses the changes in the environment, identifies the new opportunities, helps in mitigating the future contingencies.

(iii) To Cope-up With Changing Environment : 

Through this, the management can not only face the environmental challenges, but it also capable to grab the opportunities. Thus, this system helps in effective management and in coping with the changing environment.

(iv) Helpful in Taking Best Decisions : 

Strategic management helps in taking the best decisions as :

1. It provides the required facts, data and information. 

2. It helps in identifying the main problems of the organisation. 

3. It indicates the best alternative. 

4. It compels the manager to think for the future.

(vi) Other Benefits : 

It helps speeding up implementation of core strategies, focusing on every one in the organisation, building an executing team that serves as a model of cross functional or horizontal team work, clarifying competitive advantage, providing tangible tools for dealing with stress or change.

(i) Unity of Direction: 

It states that there should be one head and one plan for the activities having same objectives. In other words, the activities that have the same objectives should be directed under one manager under one plan.

Example :

Let us assume, one company is manufacturing motorcycles. So, the company should appoint one person for the purchasing of raw materials and one person for the marketing and other person for production. By this, the process would go smoothly as one person is responsible for one profile only.

(ii) Equity: 

It implies that the employees should be dealt in a kind, just and fair manner. It refer to fair play, justice, friendliness. No discrimination should be done among workers.

Example : 

If, in any organisation, employees work in shifts i.e. day shift and nightshift, it is the responsibility of the head to arrange the shifts for all employees in equal manner i.e. it should not happen that one is working always in day and the other one in night only.

(iii) Cooperation : 

It states that managers should promote the spirit of teamwork and cooperation and a sense of unity among the employees.

Example : 

If manager has allotted the task of preparing 50 units of something in a group of 5 persons, then, they should work like team members cooperating with each other. It can be possible that one has the capacity to prepare 11 or other is able to complete only 9. So, it is the responsibility of the team members to complete the group task as the worker who can prepare 11 can help the one who can prepare only 9 units.

(iv) Order: 

The principle of order states that there should be a place for everything and for every person. At the same time everything, and every person should be at its right place.

Example : 

Suppose, in any organisation, any equipment gets started with any specific instrument held by a person. So, it is the responsibility of the person to keep that instrument at a fixed and right place, so that other person can also operate in his absence.

(v) Centralisation and Decentralisation : 

If power of taking decisions is in one hand, then its centralisation and power of decision making is distributed as per the needs of the department and decentralisation have totally depends on the size of the organisation. If it is big, it should be decentralised and if it is small, then centralised system should be preferred.

Example : 

If budget of the organisation is prepared by the top level management for all the departments and accordingly departments have to manage, then it is centralisation, whereas if the budget is prepared by department heads and then top level acceptance is taken, then it is decentralisation.

Earlier, goal of organisation, society and state used to be service and welfare of all, and the organisations were run with the motto ‘Vashudev Kutumbkam’, which increased cooperation and equality in society.

Management by Objectives.

(i) Unity of Command : 

This principle states that each subordinate should receive orders from only one boss or superior. When an employee gets orders and instructions from more than one boss, confusion and conflicts tend to arise. The subordinate may not be able to serve two or more superiors at a time. Fayol believed that, when two bosses exercise their authority over the same person, uneasiness is felt, order is disturbed.

(ii) Unity of Direction : 

The principle of unity of direction states that there should be one head and one plan for the activities having the same objectives. In other words, the activities that have the same objective should be directed by one manager under one plan. This will ensure unity of action, and result in sound organisational structure.

1. It facilitates guidance and direction to subordinates. 

2. It provides a base or aid for evaluating the performance of subordinates.

Aniny  Rays.

Peter F. Drucker.

The changes taking place in environment directly or indirectly affect the working of organisation and its existence as well as personal life. As a result, to perform managerial functions with ease and smoothly, new techniques or tactics are adopted. Thus, new management techniques or managerial functions have emerged in the field of management, and these are known as Modern Trends: 

1. Management of changes. 

2. Management of struggles.

1. Management by objectives. 

2. Management by exception. 

3. Strategic management. 

4. Productivity management

1. It is a functional approach, giving primary importance to goal-setting process. 

2. It focuses on process of setting goals at every level of the organisation, not on the means for their implementation. 

3. It is a result-oriented approach.

Management by objective was first discussed in the year 1954.

(d) Peter F. Drucker

(b)  Drucker

Peter F. Drucker.

MBO is based on the following assumptions : 

1. Existence of mutual understanding between a superior and a subordinate. 

2. Employees can perform better when they clearly know what is expected from them and how their individual efforts contribute to organisation. 

3. It assumes that employees are interested to participate in formulation of plans, want to know the results of their performance and expect to be fairly rewarded for their performance.

According to Peter F. Drucker MBO is regarded as a system for improving performance of both the individual managers and enterprise as a whole by setting objectives at the corporate, departmental and individual managers level.

1. It saves time, effort, energy of managers. 

2. It extends the areas of managerial performance.

Cut-throat market competition or neck-to-neck competition.

It means that each subordinate should receive orders from only one boss or superior.

Unity of direction ensures the unity of action and results in a sound organisational structure.

1. This approach promotes personalised decision of an individual. 

2. It requires detailed reporting system, which is not so easy.

MBE principle holds that the controlling manager should be informed about operation progress only when there is a significant deviation from a plan or standard.

It states that each subordinate should receive orders from only one boss or superior. When an employee gets orders and instructions from more than one boss, confusion and conflicts tend to arise.

Henry  Fayol.

1. It saves time, effort, energy of managers.

2. It extends the areas of managerial performance.

Principles of management means the rules and regulation based on which decisions regarding the attainment of goals are taken in any organisation. 

Principles of Management Given by Fayol : 

Henry Fayol is recognised as the Father of modern theory of management. He has formulated a set of 14 principles which are universally accepted and applicate. 

They are as fallows :

• Division of Work or Specialisation :
• It states that the entire work should be sub-divided into small, compact jobs and each job should be given to that worker who specialises in that job.
• Authority and Responsibility :
• Authority, refers,to the right/power to take decisions and get them implemented, where as responsibility refers to the obligation on the part of the subordinate for doing the assigned work. According to Fayol, there should be perfect balance between authority and responsibility.
• Discipline :
• According to fayol, discipline in an organisation is a must for ensuring smooth functioning of of garnisational activities.
• Unity of Command :
• It states that each subordinate should receive orders from Only one boss or superior. When an employee gets orders and instructions from more than one boss, confusion and conflicts tend to arise.
• Unity of Direction :
• It states that there should be one head and one plan for the activities having the same objectives. In other words, the activities that have the same objective should be directed by one manager, under one plan.
• Subordination of Individual Interest to General Interest :
• It states that the interest of organisation should always supercede the interest of any individual.
• Remuneration : 
• The remuneration or compensation for work done should be fair to both employees and the organisation. It must be adequate enough to lead a reasonable standard of life for the employees and within the paying capacity of the employer.
• Centralisation : 
• There is a need to balance subordinate involvement through de-centralisation with manager’s retention of final authority through centralisation. Fayol, believed that the top manager should retain final responsibility.
• Scalar Chain or Hierarchy of Authority :
• Scalar chain refers to chain of, communication and command (authority), wherein, a manager has to communicate with his immediate subordinate/superior in a normal situation.
• Order :
• The principle of order states that there should be a place for everything and for every person. At the same time, everything and every person should be at their right place.
• Equity : 
• Principle of equity implies that the employees should be dealt in a kind, just and fair manner. It refers to play fair along with justice friendliness.
• Stability of Personnel :
• It states that management must ensure that employees should be kept at their position for a reasonable time period. Management should not shift employees from one job to another frequently.
• Initiative :
• Workers should be encouraged to develop and carry out their plan for improvements. This freedom may encourage and inspire subordinates to initiate new things.
• Espirit-de-Corps :
• It states that managers should promote spirit of team work and cooperation and a sense of unity among the employees.

Modern management.

Commercial activities are those which are related to buying-selling and exchanging activites.

“Administration lndustrille Generalle”.

Book entitled ‘General and Industrial Management’ is considered as a foundational work in classical management theory.

(d) Henry Fayol.

In 1949, the English version of Fayol’s famous book “General and Industrial Management” was published and for this, he is known as the ‘Father of General Management’.

1. Technical activities 

2. Commercial activities 

3. Financial activities 

4. Security activities 

5. Accounting activities 

6. Managerial activities.

In the situation of natural interest conflicts, organisational interest should supercede personal interest. Individual interest and organisational interest are different, so priority should- be given to‘organisational interest.

1. This approach promotes personalised decisions of an individual. 

2. It requires detailed reporting system, which is not so easy