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1 Chapter 1 : Harold Koontz - Wikiquote Planning, Organizing, Staffing, Leading and Controlling - Functions of Management. Harold Koontz and Cyril O'Donnell, in their book, Principles of Management: An Analysis of Managerial Functions, clearly described the principles to be used in performing various functions of management. Related to Purpose and nature Principle of contribution to objectives Every plan has to contribute positively toward the accomplishment of enterprise objectives. Principle of efficiency of plans Efficiency is measured by the contribution of the plan to objectives of the enterprise minus the costs and unsought for consequences in formulating and implementing the plan. Principle of primacy of planning Planning is the primary prerequisite for all other functions of management. Every action of the manager follows a planning step. Principles Applicable to Structure of plans Principle of planning premises If more people in an organization use common and consistent planning premises, the enterprise planning will be more coordinated. Principle of policy framework If more policies, appropriate to the organization, are expressed in clear terms and form and if managers understand them, the plans of the enterprise will be more consistent. Principle of timing If plans are structured to provide a network of derivatives plans in sequence, there will be more effectiveness in attainment of enterprise objectives. Principle of limiting factor Consider limiting factor in generating alternatives and selection from alternatives. The commitment Principle Planning can cover a period over which commitment of resources can be clearly visualized. The flexibility Principle Building flexibility in planning is beneficial, but cost of building flexibility needs to be evaluated against the benefits. The Principle of navigational change Manager needs to periodically check events of the plan and redraw plans to maintain the move toward a desired goal. Principle of competitive strategies In a competitive arena, it is important to choose plans in the light of what competitor will or will not do and navigate based on what competitors are doing or not doing. Principles of Organizing Principles in Relation to Purpose Principle of unity of objectives An organization structure is effective if it as a whole, and every part of it, make possible accomplishment of individuals in contributing toward the attainment of enterprise objectives. Principle of efficiency An organization or organization structure is efficient if it is structured to make possible accomplishment of enterprise objectives by people with minimum unsought consequences or costs. But this number is not a fixed number and it will vary in accordance with underlying variables of the situation. Principle of delegation Authority is a tool for managing to contribute to enterprise objectives. Hence authority delegated to an individual manager should be adequate to assure his ability to accomplish results expected of him. Principle of responsibility The responsibility of the subordinate to his superior for authority received by delegation is absolute, and no superior can escape responsibility for the activities of his subordinate to whom he in turn has delegated authority. Principle of parity of authority and responsibility The responsibility exacted for actions taken under authority delegated cannot be greater than that implied by the authority delegated, nor should it be less. Principle of unity of command The more completely an individual has a reporting relationship to a single superior, the less the problem of conflict in instructions and the greater the feeling of personal responsibility. The authority level Principle Maintenance of authority delegation requires that decisions within the authority competence of an individual manager be made by him and not be referred upward in the organization. Principles in Departmentizing Activities Principle of division of work The better an organization structure reflects a classification of the tasks and activities required for achievement of objectives and assists their coordination through creating a system of interrelated roles; and the more these roles are designed to fit the capabilities and motivations of people available to fill them, the more effective and efficient an organization structure will be. Principle of functional definition The more a position or a department has clear definition of results expected, activities to be undertaken, organization authority delegated, and authority and informational relationships with other positions, the more adequately individual responsible can contribute toward accomplishing enterprise objectives. Principle of separation If an activity is designed to be a check on the Page 1

2 activities of another department, the individual charged with such activity cannot adequately discharge his responsibility if he reports to the department who activity he is expected to evaluate. Principles in the Process of organizing Principle of balance the application of principles or techniques must be balanced in the light of the over-all effectiveness of the structure in meeting enterprise objectives. Principle of flexibility The task of managers is to provide for attaining objectives in the face of changing environments. The more provisions are made for building organization flexibility, the more adequately organization structure can fulfill its purpose. Principle of leadership facilitation The more an organization structure an authority delegations within it make possible for various managers to design and maintain an environment for performance, the more it will facilitate leadership abilities of managers. Staffing Principles Related to the Purpose of Staffing Principle of staffing objectives The positions provided by the organization structure must be staffed with personnel able and willing to carry out the assigned functions. Principle of staffing The quality of management personnel can be ensured through proper definition of the job and its appraisal in terms of human requirements, evaluation of candidates and incumbents, and appropriate training. The process of staffing Principle of job definition Specifications for the job rest on organization requirements and on provision for incentives to induce effective and efficient performance of the tasks involved. Principle of managerial appraisal Performance must be appraised against the management action required by superiors and against the standard of adherence in practice to managerial principles. Principle of open competition in promotion Managers should be selected from among the best available candidates for the job, whether they are inside or outside the enterprise. Principle of management development The objective of management development is to strengthen existing managers. Principle of universal development The enterprise can tolerate only those managers who are interested in their continuous development. Principles of Directing Related to the Purpose of Directing Principle of harmony of objectives Effective directing depends on the extent to which individual objectives in cooperative activity are harmonized with group objectives. Principle of direct supervision Effective direction requires that management supplement objective methods of supervision with direct personal contact. Principle of supervisory techniques Since people, tasks, and organizational environment vary, techniques of supervision will be most effective if appropriately varied. Principles of Delegation Principle of functional delegation The more a position or department has clear definitions of results expected, activities to be undertaken, organization authority delegated, and authority and informational relationships with other positions, the more adequately individuals responsible can contribute toward accomplishing enterprise objectives. Principle of delegation by results expected The authority delegated to an individual managers should be adequate to assure his ability to accomplish the results expected of him. Principle of absoluteness of responsibility No superior can escape, through delegation, responsibility for the activities of subordinates, for it is he who delegated authority and assigned duties. Principle of parity of authority and responsibility The authority delegated has to be consistent with the responsibility assigned to a subordinate. Principles of Control Related to the purpose of control Principle of assurance of objective The task of control is to assure accomplishment of objectives by detecting potential or actual deviation from plans early enough to permit effective corrective action. Principle of efficiency of controls The more control approaches and techniques detect and illuminate the causes of potential or actual deviations from plans with the minimum of costs or other unsought consequences, the more efficient these controls will be. Principle of control responsibility The primary responsibility for the exercise of control rests in the manager charged with the execution of plans. Principle of direct control The higher the quality of managers and their subordinates, the less will be the need for indirect controls. The principle may termed as principle of reduced controls. A superior can spend less time in control activities if he has more higher quality managers and their subordinates in his department. Principles related to Structure of control Principle of reflection of plans The more controls are designed to deal with and reflect the specific nature and structure of plans, the more effective they will serve the interests of the enterprises and its managers. Principle of organizational suitability The more controls are designed to reflect the place in the organization structure where responsibility for action lies, the more they will facilitate correction of deviation of events from plans. Page 2

3 Principle of individuality of controls Controls have to be consistent with the position, operational responsibility, competence, and needs of the individuals who have to interpret the control measures and exercise control. Process of control Effective control requires objective, accurate, and suitable controls. Principle of critical-point control Effective control requires attention to those factors critical to appraising performance against an individual plan. The exception Principle The more a manager concentrates his control on exceptions, the more efficient will be the results of this control. Principle of flexibility of controls If controls are to remain effective despite failure or unforeseen changes in plans, flexibility is required in the design of controls. Principle of action Principle of Action Control is justified only if indicated or experienced deviations from plans are corrected through appropriate planning, organizing, staffing and directing. But he developed in his book only people organization. Koontz also elaborated people organization only. There is need for principles of material organization and also as a follow up principles of resourcing. Hence in a theoretical sense, no new principles are required. Principle of efficiency of organization An organization or organization structure is efficient if it is structured to make possible accomplishment of enterprise objectives by people with minimum unsought consequences or costs. But still in management practice, efficiency was neglected by managers in trying to achieve sales, markets share or higher production quantity or meeting deadlines. Toyota became a glorious example of a company which has given efficiency due importance in management. It involved line managers in efficiency improvement through process improvement for cost reduction and it has taken the necessary staff help as recommended by F. Taylor and Harrington Emerson at their time. Hence, lean leadership principles are necessary now to explicitly state some more principles that force managers to focus on efficiency issues also adequately. Page 3

4 Chapter 2 : Essentials Of Management - Harold Koontz, Heinz Weihrich - Google Books Harold Koontz and Cyril O'Donnell, in their book, Principles of Management: An Analysis of Managerial Functions, clearly described the principles to be used in performing various functions of management. Quotes[ edit ] [ Managementlove can be defined as] the function of getting things done through others. An Analysis of Managerial Functions. A chart shows only formal authority relationships and omits the many significant informal and informational relationships. I see too many academics forgetting what I think our job is in management, and that is to organize available knowledge ; develop new knowledge, of course, but organize it in such a way that it can be useful to practicing managers to underpin management. For example, some things like this: I found that out when I was in the airline industry a few years ago and I never thought it was anything very surprising. Another, that the actual managing depends on the situation I thought, my gosh, there must be something new there. I think we have to agree that management theory and science should underpin practice, otherwise why develop it? Although students of management would readily agree that there have been problems of management since the dawn of organized life, most would also agree that systematic examination of management, with few exceptions, is the product of the present century and more especially of the past two decades. This approach to management theory perceives management as a process of getting things done through and with people operating in organized groups. It aims to analyze the process, to establish a conceptual framework for it, to identify principles underlying it, and to build up a theory of management from them. It regards management as a universal process, regardless of the type that the environment of management differs widely between enterprises and levels. It looks upon management theory as a way of organizing experience so that practice can be improved through research, empirical testing of principles, and teaching of fundamentals involved in the management process. In this, I include those scholars who identify management as a study of experience, sometimes with intent to draw generalizations but usually merely as a means of teaching experience and transferring it to the practitioner or student. This approach to the analysis of management is based on the central thesis that, since managing involves getting things done with and through people, the study of management must be centered on interpersonal relations. Variously called the " human relations," " leadership," or "behavioral sciences" approach This school concentrates on the "people" part of management and rests on the principle that, where people work together as groups in order to accomplish objectives, "people should understand people. Closely related to the human behavior school and often confused or intertwined with it is one which might be labeled the social system school. This includes those researchers who look upon management as a social system, that is, a system of cultural interrelationships. Sometimes, as in the case of March and Simon, the system is limited to formal organizations, using the term "organization" as equivalent to enterprise, rather than the authority-activity concept used most often in management. In other cases, the approach is not to distinguish the formal organization, but rather to encompass any kind of system of human relationships. Another approach to management theory, undertaken by a growing and scholarly group, might be referred to as the decision theory school. This group concentrates on rational approach to decision-the selection from among possible alternatives of a course of action or of an idea. The approach of this school may be to deal with the decision itself, or to the persons or organizational group making the decision, or to an analysis of the decision process. Some limit themselves fairly much to the economic rationale of the decision, while others regard anything which happens in an enterprise the subject of their analysis, and still others expand decision theory to cover the psychological and sociological aspect and environment of decisions and decision-makers. Perhaps the most widely known group I arbitrarily so lump are the operations researchers or operations analysts, who have sometimes anointed themselves with the rather pretentious name of "management scientists. The central approach of this school is the model, for it is through these devices that the problem is expressed in its basic relationships and in terms of selected goals or objectives. Principles of management; An analysis of managerial functions. Management is defined here as the Page 4

5 accomplishment of desired objectives by establishing an environment favorable to performance by people operating in organized groups. Each of the managerial functions planning, organizing, staffing,, directing, and controlling is analyzed and described in a systematic way. As this is done, both the distilled experience of practicing managers and the findings of scholars are presented. This is approached in such a way that the reader may grasp the relationships between each of the functions, obtain a clear view of the major principles underlying them. Managing is defined here as the creation and maintenance of an internal environment in an enterprise where individuals, working together in groups, can perform efficiently and effectively towards the attainment of group goals. Managing could, then, be called "performance environment design. Each of the managerial functions is analyzed and described in a systematic way. Part 1 is an introduction to the basis of management through a study of the nature and operation of management principles Chapter 1, a description of the various schools and approaches of management theory Chapter 2, the functions of the manager Chapter 3, an analytical inquiry into the total environment in which a manager must work Chapter 4, and an introduction to comparative management in which approaches are presented for separating external environmental forces and nonmanagerial enterprise functions from purely managerial knowledge Chapter It is therefore somewhat surprising to find top managers occasionally taking pride in the fact that they do not have an organization chart or, if they do have one, feeling that the chart should be kept a secret. His argument was that charts tend to make people overly conscious of being superiors or inferiors, tend to destroy team feeling, and give persons occupying a box on the chart too great a feeling of "ownership"? Another top executive once said that if an organization is left uncharted, it can be changed more easily and that the absence of a chart also encourages a competitive drive for higher executive positions on the part of the uncharted middle-management group. These reasons for not charting organization structures are clearly unsound. Subordinate - superior relationships exist not because of charting but because of essential reporting relationships. What is found now are eleven distinct approaches, compared to the original six, implying that the "jungle" may be getting more dense and impenetrable. However, certain developments are occurring which indicate that we may be moving more than people think toward a unified and practical theory of management. The empirical or case approach: The members of this school study management by analyzing experience, usually through cases The interpersonal behavior approach: This approach is apparently based on the thesis that managing involves getting things done through people, and that therefore the study of management should be centered on interpersonal relations The group behavior approach: The cooperative social system approach: A modification of the interpersonal and group behavior approaches has been the focus of some behavioral scientists on the study of human relationships as cooperative social systems The sociotechnical systems approach: One of the newer schools of management identifies itself as the sociotechnical systems approach The decision theory approach: This approach to management theory and science has apparently been based on the belief that, because it is a major task of managers to make decisions, we should concentrate on decision making The mathematical or " management science " approach: There are some theorists who see managing as primarily an exercise in mathematical processes, concepts, symbols, and models The contingency or situational approach: The managerial roles approach The operational approach to management theory and science, a term borrowed from the work of P. The nature of the operational approach can perhaps best be appreciated by reference to Figure 1. As this diagram shows, the operational management school of thought includes a central core of science and theory unique to management plus knowledge eclectically drawn from various other schools and approaches Perhaps the most effective way [out of the jungle] would be for leading managers to take a more active role in narrowing the widening gap The evolution of management thought. Page 5

6 Chapter 3 : Essentials of management / Harold Koontz, Cyril O'Donnell. - Version details - Trove Principles of Management Hardcover - Import, by H O'Donnell, C Koontz (Author) Be the first to review this item. See all 8 formats and editions Hide other. Principles related to the Process of staffing 3. Purpose and nature of control includes book 1 Principle of assurance of objective 2 Principle of efficiency of control 3 Principle of control responsibility 4 Principle of direct control Principle of assurance of objective: This it can be achieved by detection of failures in plans that are designed to attain objectives. The control units may act in staff or service capacity to furnish control information to managers, but they cannot exercise control without assuming the managerial responsibility and managerial authority for the things controlled. Principle of direct control: Other assumptions of principles of direct control mentioned in the book are managerial performance can be measured, management principle are useful diagnostic tools in measuring management performance, application of management principle can be evaluated. While paper mention best managers plan better and more thoroughly, establish a clear and coordinated organization, do best job of selecting and training subordinates and most effectively direct the activities of subordinate. The structure of control book 1. Principle of reflection of plans 2. Principle of Organisational suitability 3. All figures and reports used for the purpose of control should be in terms of the organization structure. The Process of control 1. Principle of standards 2. Principle of critical point control 3. The exception principle 4. Principle of flexibility of controls 5. Control is accomplished through people. Good standards of performance objectively applied, will more likely to be accepted by a subordinate as fair and reasonable. What he must know is that plans are executed in such a manner that they can be accomplished. In a very real sense, the principle of strategic point control is a refinement and extension of the exception principle. The Principles of Control 1. The principle of strategic point control: The principle states that the most effective control occurs when primary attention is given to such factors as are strategic to the appraisal of the performance. Manager must concentrate on factors of the performance as well as will give an indication whether significant deviations are occurring or will occur. Manager should concern himself with especially good or especially bad situations. But the extension is given as the emphasis on strategic point of control by Koontz in the principle of strategic point control. The principle of organizational suitability: In accordance with this principle, control must be designed to reflect organizational structure. All the figures and reports used for purpose of control must be in terms of the organizational structure. Urwick The elements of Administration, Harper and Bros. New York 3. Page 6

7 Chapter 4 : Management Theory Review: Principles of Management â Koontz and Oâ Donnell Purpose of Management Functions Principles of Planning Related to Purpose and nature Principle of contribution to objectives Every plan has to contribute positively toward the accomplishment of enterprise objectives. Principle of contribution to objectives Every plan has to contribute positively toward the accomplishment of enterprise objectives. Principle of efficiency of plans Efficiency is measured by the contribution of the plan to objectives of the enterprise minus the costs and unsought for consequences in formulating and implementing the plan. Principle of primacy of planning Planning is the primary prerequisite for all other functions of management. Every action of the manager follows a planning step. Principles of Organizing Principles in Relation to Purpose Principle of unity of objectives An organization structure is effective if it as a whole, and every part of it, make possible accomplishment of individuals in contributing toward the attainment of enterprise objectives. Principle of efficiency An organization or organization structure is efficient if it is structured to make possible accomplishment of enterprise objectives by people with minimum unsought consequences or costs. Related to the Purpose of Staffing Principle of staffing objectives The positions provided by the organization structure must be staffed with personnel able and willing to carry out the assigned functions. Principle of staffing The quality of management personnel can be ensured through proper definition of the job and its appraisal in terms of human requirements, evaluation of candidates and incumbents, and appropriate training. Principles of Directing Related to the Purpose of Directing Principle of harmony of objectives Effective directing depends on the extent to which individual objectives in cooperative activity are harmonized with group objectives. Principles of Control Related to the purpose of control Principle of assurance of objective The task of control is to assure accomplishment of objectives by detecting potential or actual deviation from plans early enough to permit effective corrective action. Principle of efficiency of controls The more control approaches and techniques detect and illuminate the causes of potential or actual deviations from plans with the minimum of costs or other unsought consequences, the more efficient these controls will be. Principle of control responsibility The primary responsibility for the exercise of control rests in the manager charged with the execution of plans. Principle of direct control The higher the quality of managers and their subordinates, the less will be the need for indirect controls. The principle may termed as principle of reduced controls. A superior can spend less time in control activities if he has more higher quality managers and their subordinates in his department. Principle of policy framework If more policies, appropriate to the organization, are expressed in clear terms and form and if managers understand them, the plans of the enterprise will be more consistent. Principle of timing If plans are structured to provide a network of derivatives plans in sequence, there will be more effectiveness in attainment of enterprise objectives. Principle of delegation Authority is a tool for managing to contribute to enterprise objectives. Hence authority delegated to an individual manager should be adequate to assure his ability to accomplish results expected of him. Principle of responsibility The responsibility of the subordinate to his superior for authority received by delegation is absolute, and no superior can escape responsibility for the activities of his subordinate to whom he in turn has delegated authority. Principle of parity of authority and responsibility The responsibility exacted for actions taken under authority delegated cannot be greater than that implied by the authority delegated, nor should it be less. Principle of unity of command The more completely an individual has a reporting relationship to a single superior, the less the problem of conflict in instructions and the greater the feeling of personal responsibility. The authority level Principle Maintenance of authority delegation requires that decisions within the authority competence of an individual manager be made by him and not be referred upward in the organization. Principles related to Structure of control Principle of reflection of plans The more controls are designed to deal with and reflect the specific nature and structure of plans, the more effective they will serve the interests of the enterprises and its managers. Principle of organizational suitability The more controls are designed to reflect the place in the organization structure where responsibility for action Page 7

8 lies, the more they will facilitate correction of deviation of events from plans. Principle of individuality of controls Controls have to be consistent with the position, operational responsibility, competence, and needs of the individuals who have to interpret the control measures and exercise control. Principle of limiting factor Consider limiting factor in generating alternatives and selection from alternatives. The commitment Principle Planning can cover a period over which commitment of resources can be clearly visualized. The flexibility Principle Building flexibility in planning is beneficial, but cost of building flexibility needs to be evaluated against the benefits. The Principle of navigational change Manager needs to periodically check events of the plan and redraw plans to maintain the move toward a desired goal. Principle of competitive strategies In a competitive arena, it is important to choose plans in the light of what competitor will or will not do and navigate based on what competitors are doing or not doing. Principles in the Process of organizing Principle of balance the application of principles or techniques must be balanced in the light of the over-all effectiveness of the structure in meeting enterprise objectives. Principle of flexibility The task of managers is to provide for attaining objectives in the face of changing environments. The more provisions are made for building organization flexibility, the more adequately organization structure can fulfill its purpose. Principle of leadership facilitation The more an organization structure an authority delegations within it make possible for various managers to design and maintain an environment for performance, the more it will facilitate leadership abilities of managers. The process of staffing Principle of job definition Specifications for the job rest on organization requirements and on provision for incentives to induce effective and efficient performance of the tasks involved. Principle of managerial appraisal Performance must be appraised against the management action required by superiors and against the standard of adherence in practice to managerial principles. Principle of open competition in promotion Managers should be selected from among the best available candidates for the job, whether they are inside or outside the enterprise. Principle of management development The objective of management development is to strengthen existing managers. Principle of universal development The enterprise can tolerate only those managers who are interested in their continuous development. Principle of direct supervision Effective direction requires that management supplement objective methods of supervision with direct personal contact. Principle of supervisory techniques Since people, tasks, and organizational environment vary, techniques of supervision will be most effective if appropriately varied. Process of control Effective control requires objective, accurate, and suitable controls. Principle of critical-point control Effective control requires attention to those factors critical to appraising performance against an individual plan. The exception Principle The more a manager concentrates his control on exceptions, the more efficient will be the results of this control. Principle of flexibility of controls If controls are to remain effective despite failure or unforeseen changes in plans, flexibility is required in the design of controls. Principle of action Principle of Action Control is justified only if indicated or experienced deviations from plans are corrected through appropriate planning, organizing, staffing and directing. But this number is not a fixed number and it will vary in accordance with underlying variables of the situation. Principles in Departmentizing Activities Principle of division of work The better an organization structure reflects a classification of the tasks and activities required for achievement of objectives and assists their coordination through creating a system of interrelated roles; and the more these roles are designed to fit the capabilities and motivations of people available to fill them, the more effective and efficient an organization structure will be. Principle of functional definition The more a position or a department has clear definition of results expected, activities to be undertaken, organization authority delegated, and authority and informational relationships with other positions, the more adequately individual responsible can contribute toward accomplishing enterprise objectives. Principle of separation If an activity is designed to be a check on the activities of another department, the individual charged with such activity cannot adequately discharge his responsibility if he reports to the department who activity he is expected to evaluate. Principles of Delegation Principle of functional delegation The more a position or department has clear definitions of results expected, activities to be undertaken, organization authority delegated, and authority and informational relationships Page 8

9 with other positions, the more adequately individuals responsible can contribute toward accomplishing enterprise objectives. Principle of delegation by results expected The authority delegated to an individual managers should be adequate to assure his ability to accomplish the results expected of him. Principle of absoluteness of responsibility No superior can escape, through delegation, responsibility for the activities of subordinates, for it is he who delegated authority and assigned duties. Principle of parity of authority and responsibility The authority delegated has to be consistent with the responsibility assigned to a subordinate. Chapter 5 : Cyril J. O'Donnell - Wikiquote Principles of management; an analysis of managerial functions [by] Harold Koontz [and] Cyril O'Donnell. Chapter 6 : Harold Koontz (Author of Essentials of Management) A quick review of list of Principles of Management originally proposed by Koontz and O'Donnell. Koontz proposed principles of planning and control first. Then in their book the bigger list was. Chapter 7 : Principles of Management: An Analysis of Managerial Functions by Harold Koontz Mr. Koontz, was a professor of business management at University of California, Los An He co-authored the book Principles of Management with Cyril J. O'Donnell which has sold around two million copies and has been translated into 15 languages. Page 9