Principles of Management

Perspective ManagementSwapna VidyadharmanagementIf you want to travel from your home to college, then how will you proceed?

The word manage comes from the Italian maneggiare (to handle, especially tools), which derives from the Latin word manus (hand). The French word mesnagement influenced the development in meaning of the English word management in the 17th and 18th centuriesDefinition:- ManagementThe processDesigning and maintainingIndividuals, groupsAims

Importance of Management in an organizationPlanning, organizing, staffing, leading and controllingAny kind of organizationAll organizational levelsCreate SurplusProductivity

Levels of ManagementFunctions of Top Level Management Objectives of the enterpriseStrategic plans and policies Co-ordinationNetworking

Functions of Middle Level Management:Top level managements plan into practiceCo-ordinationAnalyzing Reporting

Functions of Lower Level Management:Smooth functioning of an organization. Co-ordination with worker Problem solvingCommunication

Managerial Skills Technical:- working with tools and specific technique

Human:- ability to work with people

Conceptual:- Ability to solve problem

Skill Type Needed by Manager TopManagersMiddleManagersLineManagersConceptualHumanTechnicalGoals of MangersTo Make ProfitMangers must establish an environment in which people can accomplish group goalsWith least amount of time, money, materials and personal dissatisfactionAchieve as much as possible of desired goalProductivityProductivity is the output-input ratio within a time period with due consideration for quality

Productivity = Outputs (time, quality) Inputs

Productivity = Effectiveness + EfficiencyManaging : Science or Art?Total quality Management:- (Art or Science)Mentoring:- (Art or Science)Benchmarking:- (Art or Science)Assembly Line:- (Art or Science)

Features of Science:Science is a systematic approach. Science has got universally accepted principles It establishes a relationship between cause and their effects.It is based on well defined proven experiments

Management as a science:Management cant be referred as exact science. It is a behavioral science. Management deals with human beings whose behavior cant be predicted with surety.

Features of ArtArt is practical knowledge.Art is a specialized personal skill. It is based on experience ,attitude and interest. Art can be improved through practice. Art creates pleasant atmosphere and develop further interest.

Management as an artArt is concerned with application of knowledge and skills. Likewise in management manager uses his skill, ability and knowledge in solving problems of the enterprise.

Management is both a science and an art:Studying Management is Science

Performing Management is an ArtThe Systems Approach to Operational ManagementReenergizing the systemExternal environmentInputs The Inputs from the external environment may include:PeopleCapital Managerial skills

Transformation ProcessIt is task of mangers to transform the inputs, in an effective and efficient manner, into outputs

One can focus on diverse enterprise functions such as Finance, production, personnel and marketing

OutputsIt the task of the manager to secure and utilize inputs to the enterpriseAlthough the outputs vary with each enterprise, they usually include many of the following: - products, services, profits, satisfaction and integration

Reenergizing the systemIt is important to notice that in the systems model of operational management,Some of the outputs become inputs again.Eg:Employee satisfaction becomes an important human inputProfits, the surplus of income over costs are reinvested in cash and capital goodsMr. Naval an Management Graduate from IIM Bangalore joins his fathers business. Within the first week itself he observes that Mr. Rajesh Thakur (Head Marketing) is getting salary which is just Rs.10,000 less than the Vice-President of the organization.Mr. Vikas Parmar (Vice-President) has shown his displeasure about the salary format. Though he never openly mentioned about his displeasure on salary differentiation of Mr. Rajesh as compared to his. But Mr. Naval had strong feeling about the rift between this 2 employees.

Just analysis the case. Five Functions of ManagersPlanningSelecting missions and objectives and actions

There are various types of plans

Helps in taking decisions

OrganizingOrganizing, is a part of managing that involves an intentional structure roles for people to fill in an organizationhelp in creating an environment for human performance

StaffingStaffing involves filling, and keeping filled, the positions in the organizationIdentifying:-WorkforcePeople availableRecruitingPromotingCareer planning

LeadingLeading is the influencing of people so that they will contribute to organization and group goals

Leadership implies followership and people tend to follow

ControllingMeasuring and correcting of activities of subordinates to ensure that events conform to plans.

Control activities generally relate to the controlling like budget expense

Case StudyMr. Burr, founder and chairperson of People Express. He always believed in more people organization. Employees of People Express had to work under strict rules and regulation but yet they had freedom to take the decisions for organizational benefit.In late 80s People Express merged with Frontier Airlines. Frontier had more of traditional style of working. Due to change in management style People Express employees were not able to perform and start quitting the job. One of original managing directors (People Express), Lori complain about employees quitting job because management style, she was fired.Analysis the Case