7th batch MBA

8/7/2019 7th batch MBA

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Management

Principles And Practice


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What is management?

Management in all business and humanorganization activity is simply the act ofgetting people together to accomplish

desired goals and objectives. Why management is needed?

To become successful?

What is success? Become successful through managing

your firm, your life, and so on


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Mary Parker Follett (1868-1933)

defined management as the art of getting things done through people.

Management guru Peter

Drucker (1909-2005):Basic task of a managementis two-fold: marketing and

innovation


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Management is the process of designing and

maintaining an environment in which individuals

working together in groups, accomplish their aims

effectively and efficiently Koontz

Management is what a manager does Louis Allen

To manage is to forecast and plan to organize, to

command, to coordinate and to control Henry Fayol Management is defined as a process of overseeing

and coordinating resources efficiently and effectively

in line with the goals of the organization

DEFINITIONS OF MANAGEMENT


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These definitions implies that;

Management is a process. It is a process of

carrying out the essential functions of planning,organizing, staffing, leading and controlling.

Management applies to all kinds of organizations

govt, profit or non profit making It applies to managers at all levels

The aim of management is to create surplus

Management is concerned with

productivity efficiency & effectiveness.


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Management as an activity Interpersonal role working with & through people

Decision making role Use & control of resources

Communication Information role

Management as a process process means asystematic way of doing things. Management is

described as a process because all managers

irrespective of their individual abilities & aptitudesengage themselves in inter-related activities with a

view to accomplish group objectives.


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Management as a DisciplineA discipline maybe defined as a branch of knowledge or subject of

instructions. As a discipline management refers to afield of study of the principles and practices of

management.

Management as a function the functions ofmanagement can be broken down into five basicfunctions

MENMONEY

MACHINES

MATERIALS

METHODS


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Managing : Science or Art

Science may be defined as representing knowledge

gathered by observations & experiment, critically

tested, systematized and brought under general

principles.An art may be defined as a skill or knowledge in a

particular field of activity or a knack or method of

doing an activity

Managing as a practice is an art. The organized knowledge underlying the practice

may be referred to as science.


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DISTINCTION

SCIENCE ART

It develops by knowledge

acquired through observation

and experimentation

It develops by practice

It lays down universal laws and

principles which remains valid in

all situations

The laws and principles are not

of universal nature & their validity

will differ from situation to

situation

It predicts on the basis ofknowledge of relationships

between variables

It is merely a guess based onsubjective understanding of

realities

It is definitive It is descriptive


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MANAGEMENT & ADMINISTRATION

TERMINOLOGICAL CONFLICT

Various views expressed in this regard have

led to the emergence of three approaches.

Administration is above management

Administration is part of management

Management and administration are the same


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DISTINCTION

ADMINISTRATION MANAGEMENT

it is concerned with determining

the major policies & objectives of

the business enterprise. It refers

to owners of the enterprise

It is concerned with the doing or

executive function, the policies &

decisions to be implemented

being those laid down by the

administration. It refers to

employees of the enterprise

Decision making is mainlyinfluenced by the force of public

opinion, governmental policies,

as also social & religious factors

The scope for decision making islimited. At the most decisions are

influenced by the values,

opinions & beliefs of managers


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It is that part of mgnt which is

concerned with the determination&carrying out of the procedures

by which the process of activity

is evaluated and controlled as

per plans

It is a general name for the total

process of executive control inindustry or commerce. It has

responsibility for the effective

planning & execution of various

operations of the enterprise

It refers to owners of the

enterprise who by way of return

on the capital invested by them,

receive profits by way ofdividends etc.

It refers to employees of the

enterprise who, for working within

the board policy guidelines laid

down by the administration, arepaid remuneration in the form of

salaries & sometimes also a share

in the profits.


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FUNCTIONS AND SKILLS OF MANAGER

WHO IS A MANAGERA Manager is the person responsible for planning anddirecting the work of a group of individuals, monitoring

their work, and taking corrective action when necessary

_________________________________________________________

An individual who is in charge of a certain group of tasks,

or a certain subset of a company. A manager often has a

staff of people who report to him orher.

__________________________________________________________

A manager is the individual who is directly responsible in

ensuring that tasks are performed by people or employees

in the organization.


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Goals of a manager The desirable aim of all managers should be to create

surplus.All personnel's working with or under in the same

environment should be directed to achieve the group

objectives or the organizational objective.

Group objectives should be obtained with the least

amount of time, money, material and personnel

dissatisfaction or achieve as much as the desired goals

utilizing the available resources.

To utilize the least amount of resources available

managers should be productive, effective & efficient.After attaining desired productivity, effectiveness &

efficiency managers should look back to their methods

and develop new methods to improve same.


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Managerial skills and Organizational

hierarchy Technical Skills

Knowledge and proficiency in working with tools

Adapt and adopt specific techniques in improving performance

Human Skills The ability to work with people

Creation of an environment where people feel secure and free to

express their opinions

All about cooperative effort and team work

Conceptual Skills

The ability to see the big picture and recognize significantelements in any given situations

Design Skills The ability to solve problems in ways that will benefit the

enterprise

Must be capable of doing more than just see a problem


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The Millennium Manager

Make use of technology to the max advantage Take every decision that maximizes the shareholder

value

Predict uncertain events more accurately

Use the speed of response to the advantage

Be aware of the global tends in business

Continue to be patient & committed to the cause of the

organization Be unconventional and creative

Maintain the competitive edge

Fulfillhis responsibility towards t

he society


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Social Responsibility Of Managers

Social responsibility entails all such activities

ranging from providing safe products & services to

giving a portion of the companys profits to welfare

organizations. Towards shareholders responsibility to provide fair

return on capital to the share holders. The firm should

provide regular, accurate & full information about the working

of the enterprise in order to fulfill and encourage their interestin the affairs of the company

Towards Consumers provide quality products &services to the customers at reasonable prices


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Towards Employees Good working conditionsmotivate workers to contribute their best. Remuneration for

the best performers, training for the newer & existing

employees, settle any disputes and grievances etc.

Towards Creditors repay all loans that is taken fromfinancial institutions as per the repayment schedules. The

business firm has to live up to the ethical & moral

expectations of its creditors by fulfilling its commitments.

Towards the Govt Pay its taxes and be fair in itsendeavors, should extend its support in community

development projects

Towards Competitors - Maintain business ethics andcordial relationship with all its competitors.

Towards General Public - to support the cause of

community development.


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Advent of scientific management

Frederick Winslow Taylor

1856-1915 American

Steel worker to start with, became

the chief engineer in six years Father of Scientific Management

Time study foundation of

Taylor System

Task Management Taylors lectures in Harvard from 1909 to 1914


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SCIENTIFIC THEORIES

A Concept introduced by Frederick Winslow

Taylor in the beginning of the 20th Century.

Definition S

cientific Management isconcerned with knowing exactly what you

want men to do and then see in that they do

it in the best & cheapest way

scientific magnt was concerned essentially

with improving the operational efficiency at

the shop floor level.


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ELEMENTS AND TOOLS

SCIENTIFIC TASK PLANNING- separation ofplanning from doing, Taylor emphasized that

planning should be left to the supervisor & the

workers should emphasis only operational work.

FUNTIONAL FOREMANSHIP- based onspecialized functions. In this system eight people are

involved into direct the activities of workers, of w

hichfour are concerned with planning, the remaining

concerned with doing aspect of work.


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JOB ANALYSIS is undertaken to find out thebest way of doing an activity/ work. The best way of

doing a job is one which requires the leastmovements, time & cost

WORK STUDY May be defined as a combinationof several techniques which can be applied to all

kinds of efficiency problems, including laborproductivity. The objective is to improve efficiency.

Techniques

Method study Motion study

Time study or work measurement

Fatigue study


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SCIENTIFIC SELECTION & TRAINING OF

WORKERS- Tayor suggested that workers should

be selected on scientific basis taking into accounttheir education, work experience, physical strength

etc.Work should be allotted physical & technical

suitability of a worker.

FINANCIAL INCENTIVES To motivateworkers to put in their best efforts. Differential piece

rate system and individual performance based

incentive system

ECONOMY Adequate consideration should be

given to economy & profit. The economy & profit can

be achieved by making the resources more

productive as well as by eliminating the wastage.


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STANDARDISATION &SIMPLIFICATION Standardisation should be maintained in respect of

instruments & tools, period of work , amount of work,working conditions, cost of production etc. These

needs to be fixed in advance on the basis of job

analysis& various elements of cost that go in

performing a work. MENTAL REVOLUTION Depends on mutual

co-operation between management & workers.

There should be mental change from both the

parties from conflict to co-operation


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BASIC PRINCIPLES

Replacing rule of thumb with science

Harmony in group action

Co-operation, not individualism Maximum output

Development ofWorkers


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FAYOLS ADMINISTRATIVE

MANAGEMENT

HenriHenri FayolFayol (1841(1841--1925)1925) General and Industrial Management

Principles and Elements of Management - how

managers sh

ould accomplish

th

eir managerial duties PRIMARY FOCUS: Management

(Functions of Administration)

More Respect forWorker than Taylor Workers are motivated by more than money

Equity in worker treatment

More PRESCRIPTIVE


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FayolsFayols Administrative TheoryAdministrative Theory

Fourteen Principles of Management (Tools for Accomplishing Objectives)Fourteen Principles of Management (Tools for Accomplishing Objectives)

Division of work - limited set of tasks

Authority and Responsibility - right to give orders

Discipline - agreements and sanctions

Unity of Command - only one supervisor Unity of Direction - one manager per set of activities

Subordination of Individual Interest to General Interest

Remuneration of Personnel - fair price for services

Centralization - reduce importance of subordinates role

Scalar Chain - Fayols bridge Order - effective and efficient operations

Equity - kindliness and justice

Stability of Tenure of Personnel - sufficient time for familiarity

Initiative - managers should rely on workers initiative

Esprit de corps - union is strength loyal members

7th batch MBA

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