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Analysing the various Management Principles and Applications

Paper Type: Free Essay Subject: Business
Wordcount: 3219 words Published: 1st Jan 2015

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The need for professional management came along with large scale businesses from the industrial revolution. This is generally understood to cover the period from around 1760 to 1850 & in this time there was a major economic growth. The division of labour, combined with technological advances provided the economic need for a factory system. The factory system however, brought new problems for owners & managers.

There are various pioneers who contributed to the development of management, these include:

F.W. Taylor (1856-1915) he was known as father of scientific management, & was a professional engineer.

H.L. Gantt (1861- 1919) his main interest was human beings in industry & he wanted to establish democratic societies in factories.

Abraham Maslow was a behavioural psychologist who worked in academia and industry. He wrote various books on human relations. The first book was on Motivation and Personality & set out the needs of a human being & these are still hugely important factors today.

Definitions of Management

There is no generally accepted definition of management, however, the best definition is said to be that of Henri Fayol (1841-1925) who was a French Engineer, as even today the principles remain the same.

‘To manage is to forecast and plan, to organise, to command, to coordinate and to control.’ H. Fayol (1916)

Henri Fayol’s definition of management is based upon his initial idea that forecasting & planning was about looking to the future & coming up with a plan of action to allow objectives to be met. Organising was seen in structural terms while commanding was said to refer to maintaining activity amongst personnel. Coordinating is a unifying activity which effectively allows all parts of an activity to work in harmony & finally controlling meant, ensuring things are done in accordance with established specifications & policies etc. Henri Fayol therefore is responsible for identifying the principles of management which are listed below & are further detailed in task 2 of this assignment.




Command (Motivating)


Co-ordinating and communicating

Another definition is that of Edward Brech the last of the management pioneers. He believed that management was for the good of society and integrity was its cornerstone. He collated ideas, added his own & developed training programmes & textbooks

‘Management is a social process… the process consists of… planning, control, coordination and motivation’. EFL Brech (1957)

Another definition is that of Harold Koontz & Cyril O’Donnell, both professors of business management at the University of California.

Management is an operational process initially best dissected by analysing the managerial functions… The five essential managerial functions (are): planning, organising, staffing, directing and leading and controlling.’ Koontz & O’Donnell (1984)

The definitions of Brech & Koontz & O’Donnell are based upon that of Henri Fayol however they have made some small changes, for example Henri Fayol’s term command is changes to motivation by Brech & directing or leading by Koontz & O’Donnell.

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P2 Explain the principles and processes of management.

A manager’s job consists of planning, organising, directing & controlling a company’s resources which include the workforce, equipment, finances, facilities & materials etc. Management also includes the recording & storing of facts & information for later use or for the use of others within the organisation to assist them with their own objectives. Management is not only limited to ‘managers’ & ‘supervisors’ as every member or employee is responsible to some extent for ‘managing their own functions as part of their job.

The main principles of management described by Fayol are as follows:






Co-ordinating and communicating

Within any company or organization a manager has many roles & responsibilities & there job requires that they have the all of these skills to fulfill the role of ‘manager’.


Forecasting is concerned with the future economics of a company or organisation. This involves decisions being made to steer the company or organisation in the right direction & these decisions will be based upon forecasts by the management. These may include financial forecasts such as the annual turnover of the company & the requirements of funding to allow the company to fund their projects. Forecasts may also be in relation to the company’s workload therefore allowing them to forecast the required resources i.e. labour.


Planning involves the future co-ordination of projecting & controlling of resources. Many decisions made in regarding planning will be based upon the company’s forecasts as explained previously; however planning will also be done on each individual project. This involves the making of decisions which will allow the company or organisation to meet the demands of their clients & ensure that the objectives of the business are met. The main objective of a typical business is to make profit, therefore each individual project will be planned & organised in detail & will be closely managed & monitored to ensure it is moving in the right direction, thus ensuring that the clients demands are met & that the business’s objectives are met.


Organisation involves the arrangement of the company structure while establishing relationships & resources which will allow the company’s objective’s to be met. Any company or organisation will require that all of their individual departments are organized appropriately to allow them to function & meet their demands. A manager’s job will be to define each individual within their department with their own roles & responsibilities while ensuring that they all meet their demands in accordance with any specifications & timescales while ensuring that they are coordinated with any relevant site based activities.


This is the process to improve the physiological state of morale within the workforce of a company. A company’s most important asset is its personnel, therefore it could be said that the motivation of the employees is essential. The identifiable needs of an employee include:

To be paid fairly to allow them a comfortable standard of living.

To be treated as an individual while being recognized as a crucial part of the team.

To have a reasonable sense of security in their job.

To be allowed the opportunity to show their ability & initiative.

Having a socially acceptable job with a sense of belonging and acceptance, allowing a high self esteem.

Having the opportunity to progress within the company.

An employee’s motivational needs is what that particular employee needs are in order to help keep them happy in their job, thus allowing them to perform to the best of their ability. Many of these needs may also be more important than others which a manager should have the ability to detect & fulfil, for example, an employee might feel that they should be recognised as an important member of the team as this may boost their confidence. Once their confidence is boosted their motivational needs are therefore fulfilled. There are many ways in which company’s work towards meeting the motivational needs of their employees as a whole & these include the introduction of bonus schemes and provision of good welfare facilities etc.


Controlling refers to the continuous observation of a project to ensure that the work is carried out & is continuing as it was initially planned. Should it be noticed that the project is not progressing as per planned corrective action will be taken to rectify this. Controlling is the tactical spear of the management & involves checking the current achievement with pre-determined targets. Controlling may comprise of:

The control of the projects overall budget.

The control of monetary payments for the supply of materials & services.

Controlling the progress of the project.


Coordination is crucial to ensure that each team or department involved in a project works in harmony to ensure that the project is completed with the least possible problems throughout the duration of the project. The coordination of management requires regular communication typically in the form of meetings to integrate ideas into action. Co-ordination is not only crucial between the management & employees in any one company, it is crucial that there is co-ordination between all parties involved in a project. This can be difficult particularly in large scale projects where for example the Client, Architect, Quantity Surveyor, Contractor & Sub-Contractors etc must all work together to ensure that the project is completed successfully. This is where good management is essential to ensure the co-ordination between all of these parties.


Communication is to probably the single most important element within any organisation & in particular any construction project as good communication is critical as it ensures the coordination and control of individuals, groups and departments not only within one company or organisation but also within all the other parties who may be involved with a project. Communication ensures control of a company’s plans and procedures & that any instructions given to staff by the management are clearly understood. Poor communication can lead to ineffective control, poor coordination and inevitably management failure which will ultimately result in a failure to meet a company’s objectives i.e. a loss of money.

Often, communication can be hindered by simple barriers such as the use of different phrases & expressions between parties. Different languages may also pose a problem in international contracts, while modern communication methods such as emails etc may be misrepresented. In the construction industry in particular there is a slight advantage as much of the communication is done by the use of detailed drawings which represent the same to each individual no matter what their language may be.

P3 Explain the motivational needs of individuals and groups, leadership styles and concepts of team working.


Motivation is mainly concerned with:

The forces that stimulate human behaviour.

The factors that channel & direct this behaviour.

The way in which this behaviour can be maintained or eliminated.

Motivation is crucial in all workplaces regardless of the nature of work carried out. Keeping employees highly motivated is the key to a successful workplace. An employee who is happy, satisfied & motivated in their job will inevitably be more productive than an employee who has little or no motivation. There have been various motivation theories but all with the same intentions. A highly motivated workforce is ultimately more productive & this can help to increase labour outputs therefore decreasing costs which will in turn generate more profit for the business. Motivation not only increases the quantity of work but also the quality, therefore having a large group of highly motivated employees can have a positive effect on any business.

People can be motivated in various different ways & this will be dependent upon their individual needs & requirements. For example, one employee may be more motivated by being given the opportunity to use their own initiative, while another employee may be more motivated by the prospect of bonus schemes. Setting work related goals is another method of motivating employees as they are more likely to be productive if they have a target to work toward whereas If a task has no target it may cause employee to feel dissatisfied therefore they will be less motivated.

There have been various pioneers of management theories throughout the years. Amongst them are those by Frederick Herzberg, who believed that the key motivators were achievement, recognition, advancement and job interest. Others include John Adair, Peter Drucker, Elton Mayo & Victor Vroom.

As was briefly explained in task 1 of this assignment Maslow wrote a book based on human relations. In the book he wrote about the factors which drive or motivate people. Once a group or individuals needs are satisfied, then they will not be motivated by the same benefits as generally humans all ways expect more. Maslow’s report shows in order to achieve good results from the staff and able to complete our new proposed building successfully we would have to ensure the employee’s needs are catered for and their problems are being listened to.

Maslow defined five orders of needs which are as follows:

Physiological- The basic survival requirements of warmth, shelter and food

Security- Protection from danger of threat

Social- Relations with others, expressed as friendship comradeship or love

Self-Respect- Sense of personal worth, respect and autonomy

Self-Actualisation- Sense of achieving your full potential

A more recent and modern approach was from Sheila Ritchie and Peter Martin who developed a theory in the late 1990’s that began under the assumption that it was a manager’s task to discover what motivates their workforce. They identified twelve motivational drivers including, the human needs for interesting work, a variety in work, achievement, power, self development, creativity, influence, social contact, money and perks, structure and rules, long term relationships & good working conditions.

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The idea was based on having a method of motivation for each employee as it was based on the belief that each individual had different motivators therefore should have their own motivators used with them. For example, if an employee has worked well & achieved more when targets are set, then the manager should make the effort to ensure the employee know what was expected of them at all times. However, this method is not always going to be practical & many companies simply use incentive schemes which are aimed at all employees. These may include incentives such as extra time off or bonuses in pay for exceeding their targets. Many company’s also make use of team building days which are also aimed to increase motivation within the workforce. These days out can range from sporting activities to evening meals all paid for by the employer.

Leadership Styles

There are various different styles of leadership used in the workplace & this will vary dependent upon the workforce in general, for example, if there is a mixture of non-skilled & skilled workers, each of these groups may need a different style of leadership to fully motivate them & gain the best from them & there will of course be a difference upon individuals. The main leadership styles are defined as:


An autocratic leader can be described as one who simply issues orders to their workforce & expects everyone to comply.


A democratic leader manages by consultation with their workforce & encourages each individual to participate, therefore developing a team approach in the workplace.

There have been various studies in regards to management & leadership, for example Rensis Likert (1903-1981) an American psychologist & statistician conducted research on human behaviour within different types of organisation during his research he studied different styles of leadership & defined four main types of management system as follows.

Exploitive / Authoritative System.

Decisions are imposed on employees.

Employees are motivated by means of threats i.e. the loss of their job.

High levels of management have great responsibility.

There is no responsibility for low levels of management.

Poor communication & teamwork.

Consultative System

The leadership will have some trust in their employees.

Motivation is gained by rewards & by having involvement in the decision making.

There is a varying level of responsibility over all levels of management.

There is some communication & teamwork.

Participative – Group System

The leadership have full confidence in their employees.

Motivation is gained via economic reward earned through joint targets being met.

All employees feel that they have a responsibility for the company’s targets.

Good communication & team work tales place.

Benevolent / Authoritative System

Leadership via master / servant trust.

Motivation is gained by the provision of rewards i.e. pay increases.

Levels of management have great responsibility.

There is no responsibility for low levels of management.

Poor communication & teamwork.

The style a leader adopts depends on their perception of their workers motivation for example, do workers need to be driven autocratically and motivated by wage increases or are they better motivated by being allowed to voice their opinions & assist in the decision making.

A leadership style’s success depends on the circumstances the leader is in, for example if a leader is under pressure it may be more beneficial to use an autocratic style of leadership. How close workers are may also have an influence, for example a team of workers who have worked together for a long time may be more motivated by being involved in the making of decisions. The method of leadership adopted should be carefully considered as leadership styles can also affect employee motivation.

Team Working

Team working can be beneficial in many circumstances in the workplace. This allows for more ideas to be generated & more feedback to be received by the management. Team working also allows for greater coordination of works while allowing individuals to use their strengths in place of other team member’s weaknesses.

Merit Criteria

Schools of Management

During the late 19th & early 20th centuries, management theory was developed & was classified as either scientific management or administrative management & many of the techniques & concepts are still used in modern management.


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