 Today we are here to talk about a very introductory topic of management that is the principles of management. The principles which were given by Henry Fior. So today we will be discussing what is management, then after the principles and what do you actually mean by the 14 principles of management and what are they. So let's proceed on with our learning. So now knowing what is management? Management is all about managing men, material, money and other resources in the best possible way to achieve desired goals. That is the objectives that we set. To achieve that objective we need to work towards it and while working we have to manage our men, material, resources, money, the things available, the things which we have with that we process that, we manage that in the most effective way so that we can achieve the goal that we have desired. It is an art of getting things done through others. Why management? We can do everything isn't it? Every person thinks that I can do anything in this world but management is getting the things done by others. Why do we call managers? Why few people are managers? Do you know? It's very simple because they manage the most difficult resource available that is men. They get their work done through others. We all are managers as we manage our life, we manage our daily life, daily routine. Early morning we get up, we know that we have 24 hours in the work in a day but we have to manage everything, our studies, our life, our food, our dressing and our time. We should not take more than 24 hours in a day, we cannot. So that is why we all are managers. Now defining what is management? According to S George, one of the learners of management, management consists of getting things done through others as I have already told, getting things done through people around you. Manager is the one who accomplishes the objective by directing the efforts of others. That means you direct the efforts, everybody does something or the other. Every human being is doing something but giving them a direction, showing them what to do is what a manager does. Now what are principles? Why do we have principles? What do you mean by principles? Is it the headmaster of a school? Well that's P-A-L, this is P-L-E, principle, the spelling differs. So what is a principle? Principle is a fundamental truth or a proposition that serves as the foundation of a system or belief. That means it is a set of rules and regulations. There is a set of things, defined lines on which a system runs, that is a principle. The whole management is also run on principles and that is because it is known as a science, it is known as a profession. So now we talk about why principles of management, why do we have principles? So it's very simple, principles are something that is universally accepted. If I am standing and I am studying management in Guwahati, it will be the same as it is studied in Delhi or in Calcutta or in any other multinational company or any other institute of the world. It is the same. That is why we have set rules, set defined norms which are the principles. So now as we know that management is said to be a science and a profession and principles are the pillars of the profession, pillars of the science and universal acceptability and the main requirement of any profession. So principles of management are designed to fulfill the criteria of both science and profession in the best possible way. Now what is science? Why do we say management is a science? The characteristics that a science has like a doctor studying a doctor, a person studying a doctorate and a person studying management, they both are not doctors but they both are studying science. Management is said to be a science because it has a systematic body of knowledge. As I said, the books available, same for all of us, we can read the same book which are read in Harvard University or the University of California or IIM Ahimdabad, sitting here we can study the same thing, the same books and we get to know the same things that they are studying there. So it has a systematic body of knowledge, then we have its universal acceptability that means all over the universe, it is truly accepted as it is. Then we have the cause and effect relationship. As science has, every reaction have an action, same in the management. Every cause have an effect, every effect leads to a cause. How? Now for an example, if somebody gives an order that is the cause, order is given, what is the effect? Obviously, the order is followed, the task is done, that becomes the effect and there is always a cause and effect relationship between anything that happens in management, whether it be your life or it be your organization. We have the verification of validity, now the principles of management proves how valid it is, how valid it is for the thing you are using. For example, you have a problem in your organization, people went for strike and now what to do? A person will think what to do, how to act in this situation. If you refer to the management learners, if you refer to the principles, if you go back and study some cases that has already happened, then you will get to know how principles are applied. So that gives a validity that in this situation, if you do this way, it can be solved. This is given in management. So this is always given in science, that's why it's science. Coming to profession, management as a profession. In every profession, when we talk about the word profession, a picture comes to our mind, a suited, booted man with a tie and a briefcase in hand. Why? Why do we say that we want to become a manager? Because we have that picture in our mind, we want that personality, we want to acquire everything that we dream. So as profession, to be said, it has a body of knowledge. Like any other profession, maybe doctorate, maybe lawyer, a lawyer with a black coat, a doctor with a white coat, a manager with a tie. So it has a body of knowledge. Everything is set, we have books, people can learn with the books, we have teachers, we have learners, we have learned people to teach and preach about management. Now the education, every profession to be a professionalist needs a degree, a set, education, a body of knowledge. So we have a certificate, we have different certified courses for management in every field, in management also. It is again divided in so many things, marketing, branding, finance, HR and so on and so forth. So it has an education level that is very much required for a profession. We have application of knowledge. The knowledge which we acquire is applied everywhere. It is not a waste of time, it is not something that we cannot acquire, it is something by learning which we can, if we don't do anything professionally, we can apply it in our daily life in a more effective way, like the time management. If we manage our time, we can do things in a more better way in our daily life. So that is the application of knowledge of management. We have a social recognition, if you are a manager, socially accepted, people look at you with a good eye, people look upon you that, oh, he is a manager, wow, which company, what are you doing? You have something to talk about, you are a figure in the society. So that is the social recognition that we get through learning management. We have a code of conduct, now what is a code of conduct? Learning, normal learners would be imagining code of conduct, what is it? So to be very frank, code of conduct is nothing but just wearing a tie or something, basically it is a mindset that how should we behave being a professional, like we have clubs for managers, as we have lawyers association, we have managers association now. So that is what, we are socially accepted, we have a body of knowledge, we have education and now we are managers. Coming to principles of management, Henry Fiore, that is a famous industrialist of France, also known as the father of management as I told, has described 14 principles of management. So coming to the principle, the first principle is division of work, that means dividing the whole work into smaller tasks, which is very important because as an individual, if I take a responsibility of doing something, I cannot do the whole thing in a day or by myself. So if I divide the same work in smaller parts and give it to my subordinates or to my colleagues, we can have the same task done in a lesser duration with more effectivity. So now division of work is based on three basic features, that is the work is divided into smaller task, then it is divided on the basis of individual specialization. For example, if I have to draft an advertisement, I am good at thinking and my colleague is good at designing. So I would give him the designing work rather than me doing everything. It will help me finish up my work in a more effective way and that too in a short duration. That's why we have division of work. Then according to individual taste and his ability, I cannot give a task to someone, I cannot give a marketing task to someone who doesn't know the M of marketing. That will end up being a disaster. So it is important to know the individual taste and his ability before dividing the work. The second principle is parity between authority and responsibility. Authority is something which is known as the power to do something. The company gives us some power or we take some power to do something that is the authority. Authority is the obligation, the accountability and the answerability that comes along with the authority. So authority and responsibility should always go hand in hand. If somebody has authority, he must understand his responsibility and should work accordingly. If authority and responsibility are not together, it will never gain respect for you. For that, you must always take care of your authority and fulfilment of your responsibility. The third principle is principle of discipline. Principle of discipline, that means a discipline should always be maintained in an organisation. There should be a set of rules and regulations, norms of the organisation to be followed by every individual in the same manner. Now we can have discipline in an organisation by following these three simple process, that is, by having good supervision at all the levels, whether it be the middle level, the supervisory level or even the top level. To maintain discipline, we must have good supervision, good command on all the levels. Then we have by entering into clear and fair agreements with individuals and with the unions. Now clear and fair agreements, whatever rules, whatever norms we have, it should be clear to everyone. It should not be like your timing is 7.30 and the other person on the same job will have a timing from 8 and you don't take any action. That cannot be done. It will create more fights among your employee. It will create more chaos. People won't be motivated to work in the organisation. Then by assuring that penalties are judicially imposed, that is, whatever penalty you impose, if a person doesn't abide by, you must have a judicially imposed. You cannot just spare anybody. That won't give a discipline in your organisation. The fourth principle is principle of unity of command. That means there should be just one superior commanding, one subordinate. Because if you have more than one superior, suppose you are working in an organisation and one person comes up to you, your boss, and says that you have to give me this report by evening. Your other boss comes up and says I want this report by evening. That's another report. Now for whom will you work? Can you make two reports, a big ones in the same day? Imagine it's not possible. You can just make one. Whom will you follow? You won't feel like working. There will be a chaos. You will have a role conflict. So it is very important to have one person giving orders and one person listening to it for the single work, which is known as unity of command. Unity of command helps you, helps the organisation to maintain a proper line of orders in the organisation. There won't be any wastage, there won't be any confusion, there won't be any chaos in the organisation and employees will be more motivated to give their best towards the organisation. Then we have the unity of direction, which states that there should be one head for one plan for a group of activities. For example, you are organising a tour or you are organising a picnic say, then you have three people organising it. Will three of you go and like book a bus? Three buses? No, obviously not. You will divide the work, one will go to book the bus, second will go to collect the money from the people who are going, third will make the list and the food will take care of. So that is unity of direction. In one direction there should be one head, if for food you have two heads there will always be chaos, somebody will say I want spicy food, somebody will say no I want sweets. So unity of direction, one head for one plan for one activity. It assures unity of action and coordination among the employees and it avoids wastage, it avoids over expenditure and it also avoids useless competition between the employees. The unhealthy competition. Coming to the sixth principle, it is given subordination of individual interest to general interest. That means every individual, all of us we have some interest like I want to be a manager same way you have some dreams, you have your interest, you want to be a manager. That's why we all are here studying management. But if you go to an organization, you must always subordinate your interest to the general interest of the organization. It's not that while thinking of your interest, you end up doing a big loss for the organization. No, of course not. That will be very bad. So you must fulfill the organization interest in a way that your own personal interest is also fulfilled and the organization also has got no harm. Then we have the principle of fair remuneration. That means every person at the same level should be paid according to their ability, should have equal remuneration. It's not that they are two managers looking after the same thing and are paid in a very different manner. Now you are getting 30,000 and your friend is getting 50,000. Will you be motivated to work in that organization? No, you will always have a thing in your mind that why he is getting 50 and I am getting 30 working on the same post. So the principle states that to have a proper functioning in your organization, you must have fair remuneration for all. The eighth principle goes principle of centralization and decentralization. Now what is centralization? That means the authority is centered at the head office or at the head of the department. They have all the authority to take any kind of decision and the subordinates will just follow it. That is centralization. Now decentralization. That means the topmost level of the management, they delegate the authority to their subordinates. The authority is delegated to the subordinates. So it is decentralized. They have their own powers to take decisions. They can make decisions in their fields with the authority that has been given to them. For example, Bata. Bata is a chain of shoes shops. So what happened? Bata has got its decision making power at the top head office. All the sale that happens, sale once or twice in a year, we have 40 percent, 50 percent. It is directed by the head office and it goes on same all over India, even all over world if they have showrooms. So that is centralization. But every dealer has got their power to take decision of their showroom size of their showroom showcases. That is decentralization to some extent is done. They have authority of taking decision to some extent but the sale and the major decisions are taken by the central head office. So here we can see a very simple example of centralization and decentralization. We have the principle of scalar chain. That's the ninth principle. Now what do you mean by scalar chain? So now talking about scalar chain, it defines that there should be a chain of orders. The superior subordinate, then even more subordinate, then the lower level. So it says that the order should go in one chain and it should come back in the same chain. Now to this principle we have a exception because if a person at fourth level wants to talk to the person at fourth level of the marketing department, how they will talk? So the exception is known as a gangplank. They make a fine line between two of them, the marketing level four and the finance level four. They have a fine line wherein they can communicate directly with each other. That is called as the gang plan and that is the exception to this principle. Then we have principle of order. That means right person to be placed at the right job in the right time. The order must be very clear. Like for example, if a person interested in graphics is put on a teaching line, that is teaching English, will he or she be interested in doing that? Of course not. It may be for 10 minutes, it may be for 10 days or a week, they'll go on, they'll be excited about the job, what after that? After that they'll miss their graphics. They want to be something in that. So that is, you must always remember the order, right person at the right place. Now the principle of equity, it is treating everyone in an equal manner in an organization, whether it be a lower level employee or a top level employee. You cannot shoo away somebody. If somebody is working at a lower level, you cannot behave very rudely with them. You have no right to treat them in a bad way. If you do that, nobody would come to your organization to work. Nobody would even see, nobody would even like to talk to you. So that is the principle of equity. Now we have the principle of stability of tenure. That means a person should be very much positive in having his work. In doing his work, that means he must have a positive attitude. He must have this thinking in his mind that his job is secured. That the organization will run for a longer duration. He won't be kicked out any time. That is stability of tenure, it assures work continuity. Then we have principle of initiative. That is, encouraging the employees to be more creative in their work, to take some initiative, to come forward and do something. Not like coming every day, doing the same job and going back home, no enthusiasm in this life or in their life. No, principle of initiative states that to be a good manager, to be a good leader, you must initiate and encourage your subordinates to do something. Think something out of the box. That is the principle of initiative. The last and the final principle is, Esprit de corps. What is that? It is a French word. That means team spirit. Like being a manager, doing some work, from all these things we have got, a person cannot work individually. We have to have a team. We have to have some people around to do something. So a team spirit is very much important. If you have a team, but you don't have right people in your team, what will happen? Your work won't be completed in the way you want. It won't be effective. So it's very important to have a team spirit, and that's what Henry Fiorre calls, Esprit de corps. Now, to summarize all the points, what we have done today, we did, we learned about management. What is it? We learned about principles. We learned about all the 14 principles of management. These principles are seen and applied in our daily life. Just think of anything you can, maybe organizing a party, maybe organizing a wedding, your sister's wedding. Think about anything in your daily life, inviting some guests over your home, what all preparations you do. Every day what you do, your morning to evening, you just manage things. And that is what is management. So now management is also an art, and that is why the application of these principles depends on the managers, how they apply. How you apply depends on you, because it's you who are the managers who will be applying, who will be abiding by this art now. So it depends on you, how do you apply these principles to your daily life and to the different conditions and situations that you face? That's for today. Thank you.