Explain any four functions and two principles of management.

Answer – Functions of management

1. Planning: decide objectives and the course of action in advance; for example, set an annual sales target and the means of reaching it.
2. Organising: identify and group activities, assign duties and establish authority relationships so that the plan can be carried out.
3. Staffing: obtain, develop and retain suitable people through recruitment, selection, placement, training and appraisal.
4. Directing: guide and influence employees through supervision, motivation, leadership and communication.
5. Controlling: establish standards, measure performance, compare results with standards, analyse significant deviations and take corrective action.

These functions are interdependent. Control information can lead to a revised plan, changed work allocation or additional training. Coordination binds all the functions together.

Fayol’s fourteen principles

Henri Fayol, a French mining engineer, developed principles of general administration.

1. Division of work: specialisation improves skill, speed and efficiency in technical and managerial work.
2. Authority and responsibility: the right to issue orders must be balanced with the duty to perform; power without responsibility invites misuse.
3. Discipline: employees and management should respect agreements and rules; good supervision, clear agreements and fair penalties support it.
4. Unity of command: each employee should receive orders from one superior, avoiding conflicting instructions and divided accountability.
5. Unity of direction: activities with the same objective should have one head and one plan.
6. Subordination of individual interest: organisational interest should prevail when it conflicts with personal interest.
7. Remuneration: pay should be fair to employees and affordable to the organisation, supporting a reasonable living standard.
8. Centralisation and decentralisation: the concentration of decision authority should be balanced with subordinate participation according to circumstances.
9. Scalar chain: a clear line of authority runs from highest to lowest rank. A gang plank permits direct communication across equivalent levels in an emergency with appropriate superior awareness.
10. Order: people and materials should occupy their proper places, reducing delay and confusion.
11. Equity: managers should combine fairness, kindness and justice without discrimination.
12. Stability of personnel: avoid unnecessary turnover; allow employees time to learn and perform their roles.
13. Initiative: encourage employees to suggest and carry out useful plans within agreed limits.
14. Esprit de corps: promote team spirit, unity and mutual trust; emphasise “we” rather than personal superiority.

Henri Fayol lived from 1841 to 1925. His work is associated with general administrative management.