49  Principles and functions of management

49.1 Concept of Management

Management is “the art of getting things done through and with people in formally organised groups” (Harold Koontz). F.W. Taylor defined it as “knowing exactly what you want men to do, and then seeing that they do it in the best and cheapest way”. Henri Fayol (1916) — the father of modern management theory — gave the 14 Principles of Management and identified its five core functions. The contemporary view treats management as the process of planning, organising, staffing, directing and controlling resources — human, financial, physical and informational — to achieve organisational goals efficiently and effectively. Management is both a science (systematic body of knowledge) and an art (skilful application).

49.2 Schools / Approaches to Management Thought

TipMajor Schools of Management Thought
School Era Key proponents Contribution
Scientific Management 1900-30 F.W. Taylor; Gilbreths; Gantt Time-motion study; scientific selection; differential piece-rate
Administrative / Classical 1916 Henri Fayol; Urwick 14 Principles; 5 functions
Bureaucratic Early 1900s Max Weber Authority hierarchy; rules; impersonality
Human Relations 1924-32 Elton Mayo (Hawthorne studies) Group dynamics; informal organisation
Behavioural 1940s+ Maslow, Herzberg, McGregor Needs, motivation, theory X/Y
Quantitative / OR WW II + Operations researchers Linear programming, statistics
Systems 1950s Bertalanffy, Boulding Open systems
Contingency 1960s+ Burns & Stalker, Lawrence & Lorsch No “one best way”; depends on context
Modern 1980s+ Drucker, Mintzberg, Porter, Peters Strategy, knowledge work, excellence

49.3 Fayol’s 14 Principles of Management (1916)

TipFayol’s 14 Principles
  1. Division of work — specialisation increases efficiency.
  2. Authority and responsibility — they go together.
  3. Discipline — respect for rules.
  4. Unity of command — one boss per employee.
  5. Unity of direction — one head, one plan for activities with same objective.
  6. Subordination of individual to general interest.
  7. Remuneration — fair to employees and firm.
  8. Centralisation — appropriate degree depending on circumstances.
  9. Scalar chain — line of authority from top to bottom (with gangplank for emergencies).
  10. Order — a place for everything; everything in its place.
  11. Equity — kindness and justice.
  12. Stability of tenure — minimise turnover.
  13. Initiative — encourage employee initiative.
  14. Esprit de corps — union is strength; team spirit.

49.4 Functions of Management

Fayol identified five functions: planning, organising, commanding, coordinating, controlling. The modern five (POSDC or POSDCORB) typically lists: Planning, Organising, Staffing, Directing, Controlling (some sources add Reporting, Budgeting, Coordinating).

TipModern Five Functions of Management
Function Working content
Planning Setting objectives and deciding the course of action
Organising Arranging resources and tasks; designing structure
Staffing Selecting, training, developing, retaining people
Directing Leading, motivating, communicating, supervising
Controlling Setting standards, measuring performance, correcting deviations

49.4.1 POSDCORB — Gulick and Urwick (1937)

Luther Gulick and Lyndall Urwick in Papers on the Science of Administration (1937) expanded the functions into seven, captured by the acronym POSDCORB:

  • Planning, Organising, Staffing, Directing, CO-ordinating, Reporting, Budgeting.

49.5 Scientific Management — F.W. Taylor (1911)

Frederick Winslow Taylor (1856-1915) — the father of scientific management — wrote The Principles of Scientific Management (1911).

TipTaylor’s Four Principles
  1. Develop a science for each element of work.
  2. Scientifically select and train workers.
  3. Cooperate with workers to ensure work is done as per the science.
  4. Equal division of work and responsibility between management and workers.

49.5.1 Taylor’s Tools

  • Time and motion study — find the one best way to do a job.
  • Standardisation of tools, methods, materials.
  • Functional foremanship — eight specialised foremen rather than one general foreman.
  • Differential piece-rate — higher rate for standard output, lower for below-standard.
  • Mental revolution — fundamental change in attitudes of both workers and management.

49.6 Other Pioneers

TipOther Pioneers
Pioneer Contribution
Frank and Lillian Gilbreth Therbligs — 17 elemental hand motions; bricklaying study
Henry L. Gantt Gantt chart; task-and-bonus wage plan
Harrington Emerson Twelve principles of efficiency
Max Weber Bureaucracy — hierarchy, rules, impersonality
Elton Mayo Hawthorne studies; human relations
Mary Parker Follett Conflict resolution; coordination; group power
Chester Barnard Acceptance theory of authority; cooperative system
Peter Drucker MBO; knowledge worker; “father of modern management”
Henry Mintzberg Ten managerial roles (interpersonal, informational, decisional)

49.7 Mintzberg’s Ten Managerial Roles

Henry Mintzberg (1973) identified ten roles in three categories:

TipMintzberg’s Ten Roles
Category Roles
Interpersonal Figurehead · Leader · Liaison
Informational Monitor · Disseminator · Spokesperson
Decisional Entrepreneur · Disturbance handler · Resource allocator · Negotiator

49.8 Levels of Management

TipThree Levels of Management
Level Title Tasks
Top CEO, MD, Board Strategy, vision, policy
Middle Functional / departmental heads Implementation, coordination
Lower / Supervisory Foremen, supervisors Day-to-day direction of workers

49.9 Management — Science or Art?

Management is both a science (systematic body of knowledge based on observation and experiment) and an art (skilful application that varies with the manager’s personality and judgement). It is also a profession in the sense of having a body of specialised knowledge and ethical standards, though entry is not regulated like medicine or law.

flowchart LR
  P[Planning] --> O[Organising]
  O --> S[Staffing]
  S --> D[Directing]
  D --> C[Controlling]
  C -->|Feedback| P
    classDef default fill:#003366,color:#ffffff,stroke:#ffcc00,stroke-width:3px,rx:10px,ry:10px;

NoteDistractor warning

PYQs ask: Father of Scientific Management = F.W. Taylor; Father of Modern Management = Henri Fayol (sometimes Peter Drucker is given this title). Don’t confuse them.

49.10 Practice Questions

Q 01FayolEasy

The 14 Principles of Management were given by:

  • AF.W. Taylor
  • BHenri Fayol (1916)
  • CPeter Drucker
  • DMax Weber
View solution
Correct Option: B
**Henri Fayol** — *General and Industrial Management* (1916).
Q 02TaylorEasy

The father of Scientific Management is:

  • AHenri Fayol
  • BF.W. Taylor
  • CDrucker
  • DMintzberg
View solution
Correct Option: B
**F.W. Taylor** — *Principles of Scientific Management* (1911).
Q 03POSDCORBMedium

"POSDCORB" was coined by:

  • ATaylor
  • BGulick and Urwick (1937)
  • CDrucker
  • DWeber
View solution
Correct Option: B
**Gulick & Urwick 1937** — Papers on Science of Administration.
Q 04HawthorneMedium

The Hawthorne studies are associated with:

  • ATaylor
  • BFayol
  • CElton Mayo
  • DMintzberg
View solution
Correct Option: C
**Elton Mayo** — Hawthorne Western Electric (1924-32) — human relations school.
Q 05AuthorsMedium

Match each pioneer with the contribution:

Pioneer Contribution
(i) F.W. Taylor (a) 14 Principles + 5 functions
(ii) Henri Fayol (b) Bureaucracy
(iii) Max Weber (c) Scientific management; time-motion
(iv) Henry Mintzberg (d) Ten managerial roles
  • A(i)-(c), (ii)-(a), (iii)-(b), (iv)-(d)
  • B(i)-(a), (ii)-(b), (iii)-(c), (iv)-(d)
  • C(i)-(b), (ii)-(d), (iii)-(a), (iv)-(c)
  • D(i)-(d), (ii)-(c), (iii)-(b), (iv)-(a)
View solution
Correct Option: A
Taylor-scientific; Fayol-14 principles; Weber-bureaucracy; Mintzberg-roles.
Q 06Unity of commandMedium

"One employee should receive instructions from only one superior" is the principle of:

  • AUnity of direction
  • BUnity of command
  • CScalar chain
  • DOrder
View solution
Correct Option: B
**Unity of command** — one boss per employee.
Q 07MintzbergMedium

Mintzberg's roles fall in how many broad categories?

  • ATwo
  • BThree (interpersonal, informational, decisional)
  • CFive
  • DTen
View solution
Correct Option: B
**Three categories**; ten roles in total.
Q 08ScientificMedium

**Differential piece-rate** wage system is associated with:

  • AFayol
  • BTaylor
  • CGantt
  • DDrucker
View solution
Correct Option: B
**Taylor** — differential piece-rate.
Q 09TherbligsHard

Therbligs — 17 elemental hand motions — were given by:

  • ATaylor
  • BGilbreths
  • CGantt
  • DEmerson
View solution
Correct Option: B
**Frank & Lillian Gilbreth** — *Therbligs* (Gilbreth spelled backwards).
Q 10GanttMedium

Gantt chart was developed by:

  • AHenri Fayol
  • BHenry L. Gantt
  • CF.W. Taylor
  • DPeter Drucker
View solution
Correct Option: B
**Henry Laurence Gantt** — Gantt chart for project scheduling.
Q 11DruckerMedium

Management by Objectives (MBO) was popularised by:

  • APeter Drucker (1954)
  • BMintzberg
  • CTaylor
  • DPorter
View solution
Correct Option: A
**Drucker** — *Practice of Management* (1954).
Q 12DecisionalMedium

Which is a *decisional* role in Mintzberg's framework?

  • AFigurehead
  • BMonitor
  • CEntrepreneur
  • DSpokesperson
View solution
Correct Option: C
**Entrepreneur** — decisional. Others are interpersonal or informational.
Q 13FunctionEasy

Which function deals with setting objectives and deciding course of action?

  • AOrganising
  • BPlanning
  • CControlling
  • DStaffing
View solution
Correct Option: B
**Planning** — first function.
Q 14BureaucracyMedium

Bureaucratic theory of organisation was developed by:

  • ATaylor
  • BFayol
  • CMax Weber
  • DElton Mayo
View solution
Correct Option: C
**Max Weber** — German sociologist; rational-legal authority.
Q 15ContingencyHard

The "contingency school" of management says:

  • AThere is one best way to manage
  • BThe best management approach depends on the situation
  • CBureaucracy is best
  • DScientific management is universal
View solution
Correct Option: B
**No "one best way"** — context-dependent (Burns & Stalker; Lawrence & Lorsch).
Q 16GangplankHard

The *gangplank* (cross-communication) idea is an exception to which principle?

  • AUnity of command
  • BScalar chain
  • CDivision of work
  • DEquity
View solution
Correct Option: B
Gangplank — Fayol's allowance for *direct horizontal* communication bypassing the scalar chain in emergencies.
Q 17Science-ArtEasy

Management is best described as:

  • APure science
  • BPure art
  • CBoth science and art
  • DNeither
View solution
Correct Option: C
**Both** — systematic theory + skilful application.
Q 18LevelsMedium

Strategic decisions are taken at:

  • ATop level
  • BMiddle level
  • CLower level
  • DOperational level
View solution
Correct Option: A
Strategy → top level (CEO, Board, MD).
Q 19KoontzMedium

"Management is the art of getting things done through and with people" is by:

  • AHarold Koontz
  • BF.W. Taylor
  • CHenri Fayol
  • DPeter Drucker
View solution
Correct Option: A
**Harold Koontz** — classic definition.
Q 20Functional foremanHard

**Functional foremanship** — replacing one foreman with eight specialised foremen — was proposed by:

  • AFayol
  • BF.W. Taylor
  • CDrucker
  • DMintzberg
View solution
Correct Option: B
**Taylor's** functional foremanship — violates Fayol's *unity of command*.

49.11 Quick Recall

ImportantQuick recall
  • Father of Scientific Management = F.W. Taylor (1911); Father of Modern Management = Henri Fayol (1916); Father of Modern Management (also) = Peter Drucker.
  • Fayol’s 14 Principles include division of work, unity of command, unity of direction, scalar chain, esprit de corps.
  • Fayol’s 5 functions → modern POSDC: Planning, Organising, Staffing, Directing, Controlling.
  • POSDCORB (Gulick-Urwick 1937): + COordinating, Reporting, Budgeting.
  • Taylor’s 4 principles — science for work, scientific selection/training, cooperation, division of work.
  • Schools: Scientific (Taylor), Administrative (Fayol), Bureaucratic (Weber), Human relations (Mayo Hawthorne), Behavioural (Maslow, McGregor), Quantitative, Systems, Contingency (no one best way), Modern (Drucker, Mintzberg, Porter).
  • Mintzberg (1973) — 10 roles in 3 categories (interpersonal, informational, decisional).
  • Other pioneers: Gilbreths (therbligs), Gantt (chart), Emerson (12 principles), Follett (conflict), Barnard (acceptance theory).
  • Levels: Top, Middle, Lower.
  • Management = both science and art.