Planning and Organizing for Value - McKinsey - Organize to Value System - 12 Critical Elements
MANAGEMENT THEORY REVIEW - Articles on Management Subjects for Knowledge Revision and Updating by Management Executives ---by Dr. Narayana Rao, Professor (Retd.), NITIE - IIM Mumbai --- 4.55+ MILLION Page Views--- Global Top Blog for Management Theory---Management for Effectiveness, Efficiency and Excellence.
January 14, 2026
Planning and Organizing for Value - McKinsey - Organize to Value System - 12 Critical Elements
November 24, 2025
Departmentation in Organizations - Review Notes
Departmentation by numbers
This simple-numbers method of departmentizing is useful to place undifferentiated persons under supervisors for managing them.
Departmentation by enterprise function
Henri Fayol identified technical, commercial, accounting, financial, security as five important activities and he added management as the sixth activities. Departments in organizations can be created based on the functions carried out by organizations. While functional departments are created under CEO, each functional department is further divided as needed into derivative functional departments to facilitate management following the span of control principle.
Departmentation by territory or geography
Departmentation by territory or geography is a commonly used method for physically dispersed enterprises. Sales departments used this method and Internal Revenue Service uses this method.
Departmentation by customer categories
The special and widely varied needs of customers for clearly defined service impel suppliers to departmentize on this basis.
Departmentation by process or equipment
In production function, this basis of departmentation is used.
Departmentation by product
The grouping of activities on the basis of product or product lines is steadily growing in importance in multiline large scale-enterprises.
Matrix organization
Matrix organization combines functional and project or product patterns in the same organization structure. In this structure, there are functional departments which have a functional manager, but members of the department are deputed to various projects or product groups. This form is common in engineering and research and development organizations or departments.
Strategic business units (SBUs)
SBUs are distinct businesses set up as units in a larger company to ensure that certain products or product lines are promoted and handled as though each were an independent business. To be called an SBU, the business unit must have its own mission, definable groupsof competition, have an integrated plan and budget, and manage its own resources in key areas. Each SBU is entrusted to a manager with the responsibility of guiding and promoting the product from the research laboratory through product engineering, market research, production, packaging, marketing, and he is responsible for the profit of the SBU.
While each form has its advantages and disadvantages, managers have to select the department for the situation based on the jobs to be done, ways in which it is done, the people involved and their personalities etc.
Mixing Types of Departmentation
The authors mentioned cases where different departments in an organization are organized in various forms. Even within a functional department like marketing, some activities may have territory based departmentation and some may have customer category departmentation.
Updated 24.11.2025, 3 May 2019, 2 Feb 2015, 6 Jan 2014, 12 Dec 2011
MBA Core Management Knowledge - One Year Revision Schedule
July 6, 2025
Principles of Management – Koontz and O’Donnell
April 2017
By studying and writing on Principles of Management, I became the original author of Principles of Industrial Engineering, a Management Subject with foundation in engineering. It is a very popular online article on industrial engineering.
Basic and Detailed Principles of Industrial Engineering
__________________________________________
Principles of Management Revision Article Series
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.
___________________
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.
Managers have to set in a procedure to revise these principles periodically so that they can recollect the relevant principles when performing the managerial tasks and explicitly consider the relevance and application of these principles in their practice.
Many of us use them implicitly. But a professionally educated and trained manager must use them explicitly. He has to ensure that these principles are applied and if any exceptional situation is there, managers should ignore the principles consciously and be clear in their mind they chose not to use them due to the exceptional nature of the situation.
The need for Principles of Management
To Increase Efficiency
To Crystallize the Nature of Management
To Improve Research
To Attain Social Goals
Video - Principles of Management - Koontz and O'Donnell - Quick Review
____________________________________________
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 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
Principles Applicable to Process of Planning
Principle of alternatives
Select the plan which is the most effective and the most efficient to the attainment of a desired goal.
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.
Principles Related to the Cause of Organizing
Span of management Principle
There is a limit at each managerial position on the number of persons an individual can effectively manage. But this number is not a fixed number and it will vary in accordance with underlying variables of the situation.
Principles in Departmentizing Activities
Principles in the Process of organizing
Staffing Principles
Related to the Purpose of Staffing
The process of staffing
Principles of Directing
Related to the Purpose of Directing
Principles Applicable to Process of directing
Principles of Delegation
Principles of Control
Related to the purpose of control
Principles related to Structure of control
Process of control
References
Material Organization and Resourcing
Fayol included both material organization and people organization in organizing function. 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.
Principles of Material Organization
Resourcing - A Function of Management
Lean Leadership Principles - Lean Management according to Narayana Rao K.V.S.S. -
Lean management gives importance to both effectiveness and efficiency. Lean Managers simultaneously take care of customer satisfaction and productivity/ cost reduction responsibilities. Hence in a theoretical sense, no new principles are required. Koontz and O'Donnell stressed efficiency in number of principles.
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 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.W. 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.
Basic Principles of Industrial Engineering (Productivity Management in Engineering Organizations) - Narayana Rao
Principles of Industrial Engineering (Productivity Management in Engineering Organizations) - Narayana Rao - Detailed List
The principles were presented at the Annual Conference of IISE 2017 at Pittsburgh, USA. The paper is in the proceedings of the conference. The presentation made at the conference is given below.
14 Principles of Management - Henri Fayol
Principles of Management - Revision Articles - Based on Koontz and O'Donnells Book updated by Weirich and Kannice
8 April 2017, 12 March 2015 7.3.2014, 25.12.2013
Last updated 12.12.2011 (First posted to the blog from Knol)
Revision of chapters of principles of management is in January Revision Plan
February 8, 2025
Vedic Management - Krishna Yajurveda Statements - Mantras
In memory of Grandfather - Sri Surikuchhi Agnihotra Somayajulu garu and his father, my great grandfather Sri Surikuchhi Rama Somayajulu garu, Krishna Yajurveda Pandit. He was given the honour of Brahma Radham in Baroda, for the recitation of full Veda continuously with appropriate breaks (Velpur, West Godavari District, Andhra Pradesh, India).
The English version giving statements relevant to management is from the Book of Dr. S. Kannan, Vedic Management, Taxmann.
Telugu meaning is understood from the TTD publications on Krishna Yajurvedam.
English translation by Arthur Berriedale Keith is available in https://sacred-texts.com/hin/yv/index.htm
1. ii-3-11
Kanda 2- Praphataka 3 - Anuvaka 11
Mantra 10.
శ॒తమా॑న-మ్భవతి శ॒తాయుః॒ పురు॑ష-శ్శ॒తేన్ద్రి॑య॒ ఆయు॑ష్యే॒వేన్ద్రి॒యే ప్రతి॑తిష్ఠ॒త్యథో॒ ఖలు॒ యావ॑తీ॒-స్సమా॑ ఏ॒ష్య-న్మన్యే॑త॒ తావ॑న్మానగ్గ్ స్యా॒-థ్సమృ॑ద్ధ్యా
Man lives a hundred years and has a hundred powers (Kannan - English translation and explanation)
Kanda 2- Praphataka 3
2.3 - ఆదిత్యేభ్యో భువద్వద్భ్యశ్చరుం - కృష్ణ యజుర్వేద తైత్తిరీయ సంహితా పాఠః
To listen Krishana Yajurveda - Taittiriya Samhita
https://vedicheritage.gov.in/samhitas/yajurveda/krishna-yajurveda/taittiriya-samhita-video/
Go to Video Kanda 2 - Praphataka 3
This praphataka has many mantras and ishtis or yajnas related to longevity and relief from diseases.
6. i-1-10
Mantra 7
శాసా॑నా సౌమన॒స-మ్ప్ర॒జాగ్ం సౌభాగ్య-న్త॒నూమ్ । అ॒గ్నేరను॑వ్రతా భూ॒త్వా స-న్న॑హ్యే సుకృ॒తాయ॒ కమ్
Gird the body for good action.
1.1 - ఇషే త్వోర్జే త్వా - కృష్ణ యజుర్వేద తైత్తిరీయ సంహితా పాఠః
https://vignanam.org/telugu/kyts-1.1-ishe-tvorje-tva-krishna-yajurveda-taittiriya-samhita-patha.html
Mr. Kannan interprets the mantra as put on the belt for action.
To be of service to Agni to do good deeds and get benefits of welfare, good body, good mind, and good persons (children).
Beseeching favour, offspring, prosperity, in devotion to Agni, I gird my body for good action. - Arthur Berriedale Keith
https://sacred-texts.com/hin/yv/yv01.htm
13. 1-8-15
Mantra 6
స్సమ॒హమి॑న్ద్రి॒యేణ॑ వీ॒ర్యే॑ణ
Be United with power and strength.
May I be united with power and strength. Arthur Berriedale Keith
1.8 - అనుమత్యై పురోడాశమష్టాకపాలం - కృష్ణ యజుర్వేద తైత్తిరీయ సంహితా పాఠః
1-8 has many anuvakas giving details of various aspects Rajasooya yaga.
To listen:
https://www.youtube.com/watch?v=p5b-7NzPStk
https://www.youtube.com/watch?v=p5b-7NzPStk&list=PLtPBR-KypqiH_WFfSVvxfEXfXYY3vi-0l&index=8
14. 5-7-9
Mantra 1
మయి॑ గృహ్ణా॒మ్యగ్రే॑ అ॒గ్నిగ్ం రా॒యస్పోషా॑య సుప్రజా॒స్త్వాయ॑ సు॒వీర్యా॑య । మయి॑ ప్ర॒జా-మ్మయి॒ వర్చో॑ దధా॒మ్యరి॑ష్టా-స్స్యామ త॒నువా॑ సు॒వీరాః|
Be unharmed in your body
In me I take first Agni, For increase of wealth, for good offspring with noble heroes; In me offspring, in me radiance I place; May we be unharmed in our body with good heroes. - - Arthur Berriedale Keith
5.7 - యో వా అయథా దేవతం - కృష్ణ యజుర్వేద తైత్తిరీయ సంహితా పాఠః - ఉపానువాక్యావశిష్టకర్మనిరూపణం
15. 6-5-1
Mantra 6
చఖ్షు॒ర్వా ఏ॒త-ద్య॒జ్ఞస్య॒ యదు॒క్థ్య॑-స్తస్మా॑దు॒క్థ్యగ్ం॑ హు॒తగ్ం సోమా॑ అ॒న్వాయ॑న్తి॒ తస్మా॑దా॒త్మా చఖ్షు॒రన్వే॑తి॒ తస్మా॒దేకం॒-యఀన్త॑-మ్బ॒హవో-ఽను॑ యన్తి॒ తస్మా॒దేకో॑ బహూ॒నా-మ్భ॒ద్రో భ॑వతి॒ తస్మా॒దేకో॑ బ॒హ్వీర్జా॒యా వి॑న్దతే॒ యది॑ కా॒మయే॑తా-ద్ధ్వ॒ర్యు-రా॒త్మానం॑-యఀజ్ఞ యశ॒సేనా᳚-ర్పయేయ॒-మిత్య॑న్త॒రా-ఽఽహ॑వ॒నీయ॑-ఞ్చ హవి॒ర్ధాన॑-ఞ్చ॒ తిష్ఠ॒న్నవ॑ నయే- -దా॒త్మాన॑మే॒వ య॑జ్ఞయశ॒సేనా᳚ర్పయతి॒ యది॑ కా॒మయే॑త॒ యజ॑మానం-యఀజ్ఞ యశ॒సేనా᳚ర్పయేయ॒-మిత్య॑న్త॒రా స॑దోహవిర్ధా॒నే తిష్ఠ॒న్నవ॑ నయే॒-ద్యజ॑మానమే॒వ య॑జ్ఞయశ॒సేనా᳚-ర్పయతి॒
The body follows the eye.
The Ukthya is the eye of the sacrifice; therefore the Somas follow the Ukthya when offered; therefore the body follows the eye; therefore as one goes many follow; therefore one becomes superior among many; therefore one wins many wives. If the Adhvaryu desire, 'May I bestow upon myself the glory of the sacrifice', standing between the Ahavaniya and the oblation-holder he should pour (it) down]; verily he bestows upon himself the glory of the sacrifice. If he desire, 'May I bestow upon the sacrificer the glory of the sacrifice', he should pour (it) down standing between the Sadas and the oblation-holder; verily he bestows upon the sacrificer the glory of the sacrifice. - Arthur Berriedale Keith
6.5 - ఇన్ద్రో వృత్రాయ వజ్రముదయచ్ఛత్ - కృష్ణ యజుర్వేదీయ తైత్తిరీయ సంహితాయాం షష్ఠకాణ్డే పఞ్చమః ప్రశ్నః - సోమమన్త్రబ్రాహ్మణనిరూపణం.
16. 7.3.9
సా వి॒రా-డ్వి॒క్రమ్యా॑తిష్ఠ॒-ద్బ్రహ్మ॑ణా దే॒వేష్వన్నే॒నా-సు॑రేషు॒ తే దే॒వా అ॑కామయన్తో॒భయ॒గ్ం॒ సం-వృ ॑ఞ్జీమహి॒ బ్రహ్మ॒ చాన్న॒-ఞ్చేతి॒ త ఏ॒తా విగ్ం॑శ॒తిగ్ం రాత్రీ॑రపశ్య॒-న్తతో॒ వై త ఉ॒భయ॒గ్ం॒ సమ॑వృఞ్జత॒ బ్రహ్మ॒ చాన్న॑-ఞ్చ బ్రహ్మవర్చ॒సినో-ఽన్నా॒దా అ॑భవ॒న్॒. య ఏ॒వం-విద్వాగ్ంస॑ ఏ॒తా ఆస॑త ఉ॒భయ॑మే॒వ సం-వృ ॑ఞ్జతే॒ బ్రహ్మ॒ చా-ఽన్న॑-ఞ్చ బ్రహ్మవర్చ॒సినో-ఽన్నా॒దా భ॑వన్తి॒ ద్వే వా ఏ॒తే వి॒రాజౌ॒ తయో॑రే॒వ నానా॒ ప్రతి॑ తిష్ఠన్తి వి॒గ్ం॒శో వై పురు॑షో॒ దశ॒ హస్త్యా॑ అ॒ఙ్గుల॑యో॒ దశ॒ పద్యా॒ యావా॑నే॒వ పురు॑ష॒స్త-మా॒ప్త్వో-త్తి॑ష్ఠన్తి॒
Man is twentyfold, ten fingers and ten toes
The Viraj dividing itself stayed among the gods with the holy power (Brahman), among the Asuras with food. The gods desired, 'May we acquire both the holy power (Brahman) and food! They saw (the rite of) these twenty nights. Then indeed they acquired both the holy power (Brahman) and food, and became resplendent and eaters of food. Those, who knowing thus perform (the rite of) these nights, acquire both the holy power (Brahman) and food [1], and become resplendent and eaters of food. They (make up) two Virajs; verily separately in them they find support. Man is twentyfold, ten fingers and ten toes; verily obtaining the greatness of man they cease (the rite). - Arthur Berriedale Keith
7.3 - ప్రజవం వా ఏతేన యన్తి - కృష్ణ యజుర్వేదీయ తైత్తిరీయ సంహితాయాం సప్తమకాణ్డే తృతీయః ప్రశ్నః - సత్రజాతనిరూపణం
17. 6.1.1
There are ten fingers and ten toes and the body is the twenty fist,
He purifies (him) with twenty-one (stalks); there are ten fingers and ten toes, and the body is the twenty first; he thus completely purifies the man [8] - Arthur Berriedale Keith
Stalks - we say dharbhas.
36. 1-7-7
Speech shall be sweet.
49. 1-5-2
Intelligence is inspiration and skill is expiration
70. 5-2-5
There is so much strength in man.
Pub. 4.2.2025
October 17, 2024
Resource Based View Definition of Management - Narayana Rao K.V.S.S.
Management is doing things acquiring and using resources. - Prof. Narayana Rao K.V.S.S. - 18.10.2024
A manager or an entrepreneur visualizes doing a thing, for example in business, it would be exchanging goods or services. He may produce the goods or services or he may procure them and offer to customers. To put the visualized idea into practice he requires resources. He has to acquire them and then use them to do business and pay for the services of each factor or resource used in the business. Theoretically, the entrepreneur only needs the idea which is acceptable to the resource providers.
The manager makes resource requirement plan. Initially it is an unconstrained resource requirement plan. He will list all the ideal resources. But as he tries to acquire resources constraints become visible and the manager has to modify the resource requirements to use available resources or resources that he could acquire.
(C) 2024 Narayana Rao K.V.S.S.
Earlier Explanation by me.
Definition of Management: Its Nature and Purpose
The definition implies the following.
(i) Management is a process.
(ii) Management applies to every kind of organization, government, profit making, or nonprofit making.
1. As managers, people carry out the managerial functions of planning, organizing, staffing, leading, and controlling.
2. Management applies to any kind of organization.
3. It applies to managers at all organizational levels.
4. The aim of all managers is the same: to create a surplus.
5. Managing is concerned with productivity; this implies effectiveness and efficiency.
Functions of Management
Professor Narayana Rao suggests planning, organizing, resourcing, executing and controlling as the appropriate steps for operational approach.
The resource point of view is emphasized in the RBV Definition of Management.
No doubt planning is required to establish the feasibility of the idea and to make a list of resources required. After resources are acquired execution of processes has to be there and control has to be there to modify plans based on achieved results to reach the expected final result for a period.
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https://nraomtr.blogspot.com/2011/12/principles-o-principles-of-management.html
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Management - Definition and Process
Definition of Management: Its Nature and Purpose
The definition implies the following.
(i) Management is a process.
(ii) Management applies to every kind of organization, government, profit making, or nonprofit making.
1. As managers, people carry out the managerial functions of planning, organizing, staffing, leading, and controlling.
2. Management applies to any kind of organization.
3. It applies to managers at all organizational levels.
4. The aim of all managers is the same: to create a surplus.
5. Managing is concerned with productivity; this implies effectiveness and efficiency.
Functions of Management
Professor Narayana Rao suggests planning, organizing, resourcing, executing and controlling as the appropriate steps for operational approach.
Management Functions at Different Organizational Unit Levels
Managerial Skills
Managers require four kinds of skills: technical, human, conceptual and design.
The intensity or frequency with which these groups of skills are applied varies with the managerial level.
References
Seven Strategy Questions: A Simple Approach for Better Execution
Robert Simons, Professor, HBS2010
https://books.google.co.in/books?id=tIYrly9QjTIC
Video Introduction to Management
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Related Knols
Revision Article for 22 January
2nd article: Global and Comparative Management
January - Management Knowledge Revision Schedule
Updated 18.10.2024, 4 June 2019 22 January 2017, 24 Jan 2016, 19 July 2014, 2 Dec 2013