BUMGT1501 Management Principles: Analyzing Abraham's Grocery Store

This report examines the application of management principles within Abraham's Grocery, a store that experienced rapid growth. It emphasizes the importance of leadership, advocating for transformational or participative styles, and highlights the need for structured planning and clear organization of responsibilities. The report suggests adopting an administrative management approach to address employee turnover and inter-departmental conflicts. It further discusses the administrative theory's focus on organizational management and human factors, stressing the significance of employee motivation, proactive management involvement, and the use of technology to enhance productivity. The report concludes by underscoring effective communication as vital for achieving business goals and maintaining a smoothly functioning organization.

Running head: PRINCIPLE OF MANAGEMENT
Principle of Management
Name of Student:
Name of University:
Author’s Note:

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Executive Summary:
The situation of leadership is extremely essential to be practiced in a particular organisation. In
this case leadership has a huge importance. At the time a store starts as a small enterprise it is not
very tough to handle the situation. However with the gradual growth of an organisation, it
becomes difficult to handle and manage effectively. The aim of this report is to discuss about the
situation at Abraham’s Grocery. The management principles which are relevant are discussed.
The choice of appropriate management theory along with the justification of the same and
suitable feedback are also incorporated in the report.

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Table of Contents
Introduction:....................................................................................................................................3
Discussion:.......................................................................................................................................3
Conclusion:......................................................................................................................................7
Feedback:.........................................................................................................................................7
References:......................................................................................................................................8

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Introduction:
There are four different management functions of planning, organising, controlling and
leadership. These practices are applicable in the organisational perspective which helps in the
overall development of the objectives and practices. The first practice to be discussed in this
particular case is that of leadership. The situation of leadership is extremely essential to be
practiced in a particular organisation. In this case leadership has a huge importance. At the time a
store starts as a small enterprise it is not very tough to handle the situation. However with the
gradual growth of an organisation, it becomes difficult to handle and manage effectively.
Discussion:
In this case the grocery store of Abraham was small at the time of its initiation but grew
rapidly due to the great sales and the behaviours of the owners. The leadership style which can
be employed in this particular case is that of transformational or participative style of leadership.
It is desirable that the leaders discuss about the different possible outcomes of the situation. In
the discussion of the outcomes the leaders can employ the help of the other departmental
managers to choose the best possible outcome of the organisation (Morden, 2017).
There needed to be a proper style of planning which needed to be employed in this
particular scenario. This is because of the fact that a proper level of connectivity needs to be
maintained between the different store managers. This is because of the fact that the different
store managers have to be aware of the actual procedure which is going on in the store. In case a
planned structure is employed in the stores, all the departmental managers would be well aware

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of the inside happenings in the organisation and this would not cause anomalies in the
organisational proceedings (Northouse, 2018).
After a proper planning has been done of the situation, there needs to be a proper
organising of all the responsibilities of the people in charge. Every manager has to be aware of
the responsibilities which he or she is entrusted with. In case the functions of the managers are
clear there cannot be any fight among them. The newer and better policies can also be advertised
successfully. In case there is a proper organising of all activities within a particular place of
work, it helps in the overall development of the organisational efficiency.
Controlling is considered to be a tricky situation in most organisations. This is because of
the reason that the level and the method in which control is to be established needs to be
understood in a clear and proper manner. It is the duty of the owners of the stores to establish a
level of control in the overall situation. The control need not be pressurising or demeaning but as
heads of the organisation they need to be aware of the scenario in which the organisation is in.
In the most famous companies of the world including those of Microsoft, Google,
Woolworths, Wesfarmers and so on, the amalgamation of the activities of planning, controlling,
leadership and organising are helpful in understanding the overall scenario of the workplace.
The style of management or the management approach which can be adopted in this
particular organisation is that of the administrative type. This type or style is most crucial in the
stores of all types. The administrative theory is based on the concept of the departmentalisation
which is dependent of the several activities which need to be performed or achieved. the duty of
the managers is to ensure that the task can be accomplished effectively.

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The administrative theory is basically believed that more amount of emphasis is to be laid
on organisational management and the human and behavioural factors which are applicable in
the scenario of management. Therefore the main focus is on the way the management of the
organisation is structured and the way in which the individuals accomplished the tasks which are
given to them. The administrative theory of management focuses on the improvement of the
efficiency of the management at first in order to ensure that the processes can be standardised in
a proper manner and this is moved into the operational level where the individual works can
manage to learn the changes and implement the changes in the jobs of day to day requirements.
There is a proper amount of emphasis on the improvement of the efficiency of the jobs and the
method of managing the stores (Bloom et al., 2012).
In this particular situation, the administrative theory of management is best as the major
amount of employee turnover and problems within the organisation are due to the fact that there
is not a proper administration or control among the managers of the different departments or
different stores. The administrative theory of management is based on the classical school of
thought which has a focus on the identification of the basic principles in order to coordinate the
internal activities of the organisation.
The principles of management include those of the division of labour, the implementation
of a proper sense of authority, management of a proper sense of discipline, the unity of the
overall command, the unity in the different directions which are implemented, the subordination
of the individual interests for the common good of the organisation, the level or the degree of
remuneration, the concept of centralisation which reduces the unwanted roles in the process of
decision making, the hierarchy, the order, the equity, the staff stability the initiative of the
members in all the stores and finally the overall spirit of the team (Kumar, 2012). In case there is

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a proper team spirit which is to be promoted in order to develop a culture of unity in an
organisation there needs to be a relevant culture of unity in an organisation. The subordinates
also need to have the initiative of working within the company and ensuring that any issue which
the company faces is tackled collectively by them.
There however are criticisms of the administrative theory of business as well. This is
because of the opinion that the management principles are not all applicable in the complex
business situations at present. It is also believed that the problems of leadership are not properly
dealt with, the theories of motivation, power or of information relations. However, it is the duty
of the authorities to solve the issues of management and ensure that the problems be overcome in
order to prevent any staff turnover and complaints by the consumers.
The need and the importance of enhancement of the productivity of the employees cannot
be ignored by any segment of the business. In case a business is run there need to be people who
are available for doing the routine responsibilities as there are bound to be factors which might
weaken or extinguish the motivation as well as dampen the productivity of the company. The
issues which have a potential of reducing the productivity need to be ignored at all costs. The
motivation killers in the stores need to be removed at all costs and therefore there needed to be a
balance between the responsibilities of the different departmental managers as well as the store
managers. The inter-department managerial conflict needed to be resolved by the managers of all
the companies (Morden, 2017).
There need to be clear goals which are to be set by the authorities of the company and
there should be a certain level of feedback which the store managers receive from the company.
In case the employees receive feedback and are aware of the things which they are expected to

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do, it becomes clearer for them to provide guidance for everyone. There need to be short term
goals in particular for encouraging the employees to properly manage their respective speed of
performing their duties and the ways in which the targets are to be achieved are also to be
matched. Proper practices of management help in the enhancement and maintenance of
employee productivity and reducing the percentage of staff turnover.
Conclusion:
A very important aspect of a specific business is that of the idea of communication. Without a
proper and an effective system of communication of the business operations there is always a
certain difficulty in achieving the goals and also in the proper functioning. Therefore the
communication is not merely the simple sue of the devices which include the verbal and written
exchanges of information but it is also regarded to the designing and utilization of the
communication systems which are appropriate for the needs of a specific company.
Feedback:
It can be said that the management or the enhancement of productivity in the workplace
is not always easy to accomplish because it involves excelling in several different aspects.
However the most important parts which need to be justified in this specific scenario is that of
the need for employee motivation, the proactive involvement of the managers and also the
utilization of the technologies and systems which majorly help the employees in the performance
of effective work.

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References:
Bloom, N., Genakos, C., Sadun, R., & Van Reenen, J. (2012). Management practices across
firms and countries. The Academy of Management Perspectives, 26(1), 12-33.
Drucker, P. (2012). The practice of management. Routledge.
Kumar, S. (2012). Principles of management (Doctoral dissertation, BIRLA INSTITUTE OF
TECHNOLOGY, Mesra).
Metcalf, L., & Benn, S. (2013). Leadership for sustainability: An evolution of leadership
ability. Journal of Business Ethics, 112(3), 369-384.
Morden, T., 2017. Principles of management. Routledge.
Northouse, P. G. (2018). Leadership: Theory and practice. Sage publications.
Shafritz, J. M., Ott, J. S., & Jang, Y. S. (2015). Classics of organization theory. Cengage
Learning.