Ppm Unit 1st

7/26/2019 Ppm Unit 1st

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Principles and Practices of Management


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Defnition o Management

Management is defne as the process by which aco-operative group directs action towards commongoal.(Joseph Massie)Management is principally the task o planningcoordinating motivating and controlling the eortso others towards a specifc goal.(James . undy)Management is an art o getting things done by

others.


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Nature o Management

!niversality"urposeulsocial "rocess#oordinating $orce%ntangible#ontinuous "rocess#omposite "rocess

#reative &rgan


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Importance oManagement

%mproves !nderstanding'irectionor raining and 'evelopmentole o Management

*uideto esearch in Management


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Management as Science!niversally accepted "rinciple+,perimentation and &bservation#ause and +ect elationship

test o alidity and "redictability


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Management as Art"ractical nowledge"ersonal /kill#reativity"erection through "ractice*oal &riented


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Basic Levels o Management

Top

Managers

Middle Managers

First-Line Managers

Top

Managers

Middle Managers

First-Line Managers


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First-line Managers: have direct responsibility for producinggoods or servicesForeman, supervisors, clerical supervisors

Middle Managers:

Coordinate employee activities

Determine which goods or services to provide

Decide how to market goods or services to customers

Assistant Manager, Manager (Section Head)

Top Managers:provide the overall direction of an organiationChief Executive Officer, resident, !ice resident

Levels o Management


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First-line Managers

Directly responsible for production of goods or services

Employees who report to first-line managers do the

organizations work

Spend little time with top managers in large organizations

echnical e!pertise is important

"ely on planning and administration# self-management#

teamwork# and communication competencies to get work

done


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Middle Managers

"esponsible for setting ob$ectives that are consistent with

top managements goals and translating them into specific

goals and plans for first-line managers to implement

"esponsible for coordinating activities of first-linemanagers

Establish target dates for products%services to be delivered

&eed to coordinate with others for resources

'bility to develop others is important

"ely on communication# teamwork# and planning and

administration competencies to achieve goals


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op Managers

"esponsible for providing the overall direction of an

organization

Develop goals and strategies for entire organization

Spend most of their time planning and leading

(ommunicate with key stakeholders)stockholders#

unions# governmental agencies# etc*# company

policies +se of multicultural and strategic action

competencies to lead firm is crucial


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Management evel and /kills


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Technical skills:-(deals with things) concernwith what is to be done0

Human skills:-(deals with people) how to workeectively with one another.

Conceptual skills:-(deals with idea) concernwith why the thing is done0

Basic Management Skills


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1. 'emonstrates integrity

2. 'eals honestly and diplomatically

3. 'emonstrates 4e,ibility

5. /hows commitment and reliability6. istens eectively

Qualities o a SuccessulManager


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7. 8 good negotiator

9. 8 thorough planner

:. %s air

;. nows how to have un and has a goodsense o humor

1


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1. /upervise and manage the overallperormance o sta in his department.

2. 8chieve business and organi=ation goals>visions and ob?ectives.

3. 8naly=ing> reporting> givingrecommendations and developingstrategies on how to improve @uality and

@uantity

esponsi!ilities o Managers


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5. %nvolved in employee selection> careerdevelopment> succession planning and periodictraining.

6. Aorking out compensations and rewards

7. esponsible or the growth and increase in theorgani=ationsB fnances and earnings.

9. %dentiying problems> creating choices andproviding alternatives courses o actions

esponsi!ilities o Managers(cont..)


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Management as a Discipline Management as a "roup o #eople Management as a process

$oncept o Management


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1. 'evelopment o /cience or each part omenCs ?ob (replacement o rule o thumb)

2. /cientifc /election> raining D'evelopment o Aorkers

3. #o-operation between Management Dworkers or Earmony not discord

5. 'ivision o esponsibility

%&e #rinciples o ScientifcManagement


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6. Mental evolution 7. Ma,imum "rosperity or +mployer D

+mployees

%&e #rinciples o ScientifcManagement(cont..)


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Criticism of Scientic

Management


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'. nemploment

*. +,ploitation

-. Monoton

. /eakening o %ra0e nion1. 2ver spee0ing

Workers Viepoint


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'. +,pensive

*. %ime $onsuming

+mploer3s 4ie5point


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6enri 7aol3s '

#rinciples 2Management


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/peciali=ation allows the individual to buildup e,perience> and to continuouslyimprove his skills. hereby he can be moreproductive.

'. Division 2 /ork


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8uthority means the right o a superior togive order to his subordinatesGesponsibility means obligation (duties)or perormance.

he right to issue commands> along withwhich must go the balanced responsibilityor its unction.

*. Aut&orit


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'iscipline reers to obedience> properconduct in relation to others> respect oauthority> etc

+mployees must obey> but this is two-sidedH employees will only obey orders imanagement play their part by providinggood leadership.

-. Discipline


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+ach worker should have only one boss withno other con4icting lines o command.

% an employee receives orders rom morethan one superior> it is likely to createconusion and con4ict

. nit 2 $omman0


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"eople engaged in the same kind oactivities must have the same ob?ectivesin a single plan. his is essential to ensureunity and coordination in the enterprise.

!nity o command does not e,ist withoutunity o direction.

1. nit o Direction


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Management must see that the goals othe frms are always paramount.

he management must put aside personalconsiderations and put companyob?ectives frst.

hereore the interests o goals o theorgani=ation must prevail over the

personal interests o individuals

8. Su!or0ination o in0ivi0ualinterest


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"ayment is an important motivator althoughby analy=ing a number o possibilities> $ayolpoints out that there is no such thing as aperect system

9. emuneration


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his is a matter o degree depending onthe condition o the business and the@uality o its personnel.

#entrali=ation implies the concentration odecision making authority at the topmanagement.

:. $entrali;ation (2rDecentrali;ation)


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8 hierarchy is necessary or unity odirection. Iut lateral communication is alsoundamental> as long as superiors know thatsuch communication is taking place. /calar

chain reers to the number o levels in thehierarchy rom the ultimate authority to thelowest level in the organi=ation. %t shouldnot be over-stretched and consist o too-many levels


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Ioth material order and social order arenecessary. he ormer minimi=es lost timeand useless handling o materials. he latteris achieved through organi=ation and

selection.

'=. 2r0er


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%n running a business a combination okindliness and ?usticeC is needed. reatingemployees well is important to achievee@uity.

''. +>uit


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+mployees work better i ?ob security andcareer progress are assured to them. 8ninsecure tenure and a high rate oemployee turnover will aect the

organi=ation adversely.

'*. Sta!ilit o %enure o#ersonnel


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8llowing all personnel to show theirinitiative in some way is a source ostrength or the organi=ation. +ven thoughit may well involve a sacrifce o personal

vanityC on the part o many managers.

'-. Initiative


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Management must oster the morale o itsemployees. Ee urther suggests thatH Krealtalent is needed to coordinate eort>encourage keenness> use each personCs

abilities> and reward each oneCs meritwithout arousing possible ?ealousies anddisturbing harmonious relations.L

'. +sprit 0e $orps


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7aol?sdefnition o management roles and actionsdistinguishes between 7ive +lementsH

#revoance. ($orecast D "lan). +,amining the uture anddrawing up a plan o action. he elements o strategy.

%o organi;e.Iuild up the structure> both material andhuman> o the undertaking.

%o comman0.Maintain the activity among the personnel.

%o coor0inate.Iinding together> uniying and harmoni=ing allactivity and eort.

%o control./eeing that everything occurs in conormity withestablished rule and e,pressed command.

/&at Is Management@(Accor0ing %o 7aol)


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#hange and &rgani=ation. 'ecision-making. /kills. #an be used to improve the basic

eectiveness o a manager. !nderstand that management can be seen

as a variety o activities> which can be listedand grouped.

Application 2 7aol3s #rinciples


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M!"#$% M&%&'#M#%T TH#!$(

/ystem 8pproach#ontingency 8pproach


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Sstem Approac&

8 system in simple terms is a set ointerrelated parts.

%t is a group o interrelated but separateelements working towards a commonpurpose.

he arrangement o elements must beorderly> there must be proper

communication acilitating interactionbetween the elements and fnally theinteraction should lead to achieve acommon goal.


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$&aracteristics o SstemApproac&

(a) Dnamic C Aithin the organi=ation the processo interaction between subsystems is dynamic.

(!) Multilevel an0 Multi0imensional C %t ismicro within the nationCs industrial network and it

is macro with respect to its internal units. hemodern manager is orced to recogni=e theimportance o parts as well as the whole.

(c) Multi motivate0C Motivation is an e,tremelycomple, process and drawing simplistic e@uationis a utile e,ercise.


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$&aracteristics o SstemApproac& (cont..)

(0) #ro!a!ilistic C Modern theory tends toprobabilistic. K/tatement in modern theory tends to be@ualifed with phrases such as Kmay beL> in generalLand usuallyL because modern theory recogni=es thatew predictive statement can be made with certainty.

(e) Multi0isciplinar C Modern theory o managementis enriched by contribution rom disciplines likesociology> psychology> economics> anthropology>ecology mathematics> operations research and so on.

() Descriptive C %ndividual are ree to select theob?ectives and the methods to improve organi=ationaleectiveness.


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$&aracteristics o SstemApproac& (cont..)

(g) Multivaria!le Chere is no simple causeeect phenomenon in organi=ational activities.8n event may be the product o many actorsthat are in turn interrelated and interdependent.

(&) A0aptive C 8n organi=ation and itsenvironment are e,pected to rearrange theirparts. &rgani=ation tries to cope withenvironment changes through the Keed backL

mechanism. 8n organi=ation must produceoutput acceptable to components inenvironment.


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Contingenc) approach


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he contingency approach believes that it isimpossible to select one way o managing thework> best in all situations like promoted by

aylor #ontingency reers to the immediate

circumstances.

contingency approach stresses the need ormanagers to e,amine the relationshipbetween the internal and e,ternal

environment o an organi=ation.


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he term bureaucracy is use by Aeber toe,plain the specifc king o administrativeorgani=ation.

here are three types o legitimateauthority.

a. ational legal authority

b. raditional authority

c. #harismatic authority

*ureaucratic Management (Ma, /e!er )


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'ivision o work Eierarchy o positions ules and regulations

%mpersonal conduct /tangechnical competence &cial records

$&aracteristics o Bureaucrac


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esponsibility towards %tselH esponsibility towards /hareholdersN&wners esponsibility towards #ustomers

esponsibility towards +mployees esponsibility towards /uppliers esponsibility towards #ompetitors esponsibility towards *overnment

esponsibility towards +nvironment

Business et&ics an0 socialesponsi!ilit


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o operate the business eciently andeectively

o ensure the production and distribution ogoods and services at a proft. his isnecessary or its survival> growth andsocially responsible behavior.

o make policies that ensures achievement

o economic and social ob?ectives o thebusiness simultaneously.

esponsi!ilit to5ar0s Itsel


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o innovate and e,pand business byproducing new productsN services> byentering into new markets> by using newraw materials etc.

o make every eort to remain competitiveat all times.

o make every eort to perorm all the

activities ull proo. +very deect or aultshould be corrected without being told orpointed out by others.

esponsi!ilit to5ar0s Itsel (cont..)


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o ensure protection o naturalenvironment or sustainable economicdevelopment or uture growth and

developmento maintain wealth- producing resources

intact by making profts to oset risk o

business activities.

esponsi!ilit to5ar0s Itsel (cont..)

i!ili 0


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o ensure payment o air and consistentreturn on their investment.

o make proper use o their unds withintheir authority.

o ensure saety and growth o theirinvestments.

o make ull and proper discloser o all the

acts within the ramework o law andregulations

esponsi!ilit to5ar0sS&are&ol0ers25ners

i!ili 0


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o hold meetings rom time to time andgive proper notice o them to all theshareholders.

o conduct all the meeting as per the law o send copies o annual reports and other

documents as re@uired any the law.o ensure compliance o code o corporate

governance ramed by the /+I%N Ministry ocorporate aairs.

esponsi!ilit to5ar0sS&are&ol0ers25ners (cont..)


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o ensure supply o goodsN services o right@uality> at right time> at right place andright price.

o ensure supply o goodsN services to meet

the needs o dierent classesN categories ocustomers.

o enhance product saety.

o reduce polluting potential o products.

esponsi!ilit to5ar0s $ustomers


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o improve packaging and labeling througheco- riendly measures

o innovate and produce energy ecientproducts

o adopt air and ethical practices and notindulge in adulteration> hoarding and blackmarketing> profteering practices.

esponsi!ilit to5ar0s $ustomers (cont..)


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o employ all the employees at the right ?ob

o pay air wagesNsalaries> bonus etc. o ensure healthy and sae working

conditionsN work environment o provide ade@uate benefts such as

housing> medical acilities> insurance cover>

retirement benefts etc o provide reasonable ?ob security

esponsi!ilit to5ar0s +mploees


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o provide opportunities o training>promotions> career development and ?obsatisaction

o provide day care acilities or working

parents. o ensure e@ual opportunity to all without

any discrimination o caste> creed> gender

etc.o ensure compliance o work place ethics

esponsi!ilit to5ar0s +mploees (cont..)


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o ensure timely payment o all the billsdue.

o bargain or a win- win situation or botho make every eort to ensure long-term

sound business relations.o ensure proper perormance o terms o

contract.

o retrain rom taking undue advantages olegal loop-holes in the supply contract.

esponsi!ilit to5ar0s Suppliers


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o ensure ade@uate secrecy o contractterms.

o provide opportunities to new suppliers.o inorm about the market trends and other

acts to suppliers

esponsi!ilit to5ar0s Suppliers (cont..)


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o play air game in competition orencouraging healthy competition

Oot to indulge in monopolistic andrestrictive practices that restrains the ree

and air competition. 8void misleading advertisements> alse or

unreasonable product guarantee> trickypricing that create the barriers to healthycompetition.

esponsi!ilit to5ar0s $ompetitors


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Oot to indulge in brand assassinationactivities

Oot to mislead or misrepresent thecustomers about competitors.

o ensure ree entry o competitors or thehealthy growth o trade and economy.

esponsi!ilit to5ar0s $ompetitors (cont..)

esponsi!ilit to5ar0s


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o comply with the laws and regulations othe land

o pay the ta,es and duties honestly withinthe time

o actively contribute to the economicdevelopment o the country

esponsi!ilit to5ar0s"overnment



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o contribute to the implementation o socio-economic plans and programs or the governmentsuch as amily welare> poverty alleviation etc.

P o respond positively to the governmentappeals and instructions.

P o restrain rom sacking undue avors romgovernment ocials and deny bribes and other

corrupt practices. P o donate unds and provide other helps in the

times o national calamity.

esponsi!ilit to5ar0s"overnment (cont..)



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o help develop local inrastructure like ootways> roads> water supply> parks and sanitationacilities> educational institutions> hospitals etc.

o provide employment opportunities to localpeople.

o impart ?ob oriented education and training tounemployed persons.

op contribute to the uplitment o weakersections o the community.

o support minority owned businesses.

esponsi!ilit to5ar0s+nvironment



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o encourage local tradeo make eorts to recycle the products to

save environmento rerain rom all kinds o anti social> unair

and unethical activities.

esponsi!ilit to5ar0s+nvironment (cont..)

Ppm Unit 1st

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