Principles

1Introduction to Management

Principles of ManagementDIPAK KUMAR BHATTACHAYYA

Principles of Management BHATTACHAYYA

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LEARNING OBJECTIVES

After going through this chapter, you will be able to understand:

• the concept and process of management• the various functions of management• the characteristic features of management and its

different dimensions• the importance of management in studying

organizational structures and systems• modern management thoughts


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A BACKDROP TO MANAGEMENT

An organization is made of a group of people with some specific goals, objectives, and activities. Organization is also defined as the relations among the components of a system.Organization structure denotes the components and relations that bind the people working within the organization.


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A BACKDROP TO MANAGEMENT (contd)

People issues encompass education, training, and attitudes. Organization issues cover strategy, policy, culture, and bureaucracy. Technology issues encompass hardware, software, telecommunications, and information systems.


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NATURE AND PROCESS OF MANAGEMENT

Operationally, management can be defined as a dynamic process that helps to get things done, through and with the efforts of people.


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DIMENSIONS OF MANAGEMENTThe definitions of management can be categorized into different approaches according to their different dimensions:

Management dimensions

Productivity

orientation

Human-relations orientatio

n

Decision-making

orientation

Leadership

orientation

Process orienta

tion


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FUNCTIONS OF MANAGEMENTFayol (1949), the founder of modern management theory, divided all the activities of an organization into six groups: 1. technical2. commercial3. financial4. security5. accounting6. managerialPrinciples are rules and guidelines, while elements are functions of management.


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FUNCTIONS OF MANAGEMENT (contd)

Fayol has grouped the elements into five managerialfunctions: 1. planning 2. organizing3. commanding 4. coordinating5. controlling


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FUNCTIONS OF MANAGEMENT (contd)Another way of describing the functions of management is to consider them as a series of interrelated functions constituting a process.

Functions of management

Planning

Organizing

Staffing

Leading

Coordinating

Controlling


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CHARACTERISTICS OF MANAGEMENTThe following are certain important features of the discipline of management:

• organized activities• aligned with organizational objectives• optimizes constraining resources• works with and through people• decision making• science as well as an art


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CHARACTERISTICS OF MANAGEMENT (contd)• universal• intangible• an interdisciplinary approach• a social process• a system of authority• dynamic• principles are relative and not absolute• a profession• a strategic function


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SIGNIFICANCE OF MANAGEMENT

Management is important due to the following reasons:

• It optimizes use of scarce resources• It ensures effective leadership and motivation• It promotes harmony among industrial relations• It facilitates the achievement of goals• It facilitates change and growth• It enhances the quality of life• It improves productivity• It contributes to organizational competitiveness• It develops professionalism• It contributes to organizational growth


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DIFFERENT APPROACHES TO MANAGEMENT

History of management

Classical approach

Scientific management approach

Administrative approach

Bureaucratic approach

Neo-classical approach

Behavioural sciences approach

Quantitative approach

Contingency approach

Modern approach


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CONTRIBUTIONS OF PRE-CLASSICAL THEORISTSThe pre-classical theorists focussed on developing some specific techniques to solve some identified problems.


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CONTRIBUTIONS OF CLASSICAL THEORISTSThe theorists of the classical school laid down the foundation of managing an organization in accordance with certain principles.


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CHARACTERISTICS OF BUREAUCRATIC THEORYThe bureaucratic theory emphasizes authority structures and description of an organization based on the authority relations.


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MAJOR CONTRIBUTORS TO THE BEHAVIOURAL SCHOOL

The behavioural school of management emphasizes the human element in an organization.


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MODERN APPROACHES

Modern approaches

Quantitative school of thought

Management scienc

e approach

Operations

management approa

ch

Management systems

approach

Systems theory approach

Contingency theory


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CONTEMPORARY SCHOOL OF MANAGEMENT THOUGHT

The contemporary school of management thought provides a framework of management practicesbased on more recent trends like globalization, theory Z concepts, McKinsey’s 7-S approach, excellencemodels, and productivity and quality issues.


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CONTEMPORARY SCHOOL OF MANAGEMENT THOUGHT (contd)McKinsey’s 7-S framework developed by T. J. Peters and R. H. Waterman (1982) identified sevenindependent organizational factors that need to be managed by today’s managers:

1. Strategy2. Structure3. Systems4. Staff5. Style6. Superordinate goals (shared vision)7. Skill


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CONTEMPORARY SCHOOL OF MANAGEMENT THOUGHT (contd)

McKinsey’s 7-S Model


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MANAGEMENT BY OBJECTIVES

When objectives are set in a systematic manner, consciously directed towards effective and efficient achievement of organizational and individual targets, it is known as management by objectives (MBO).


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MANAGERIAL ROLESManagerial roles denote position-specific behavioural patterns of managers.

Mintzberg’s Managerial Roles


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MANAGERIAL SKILLS AND COMPETENCIESSkill can be categorized as either generic or technical, or entry-level or advanced. Conventionally,skill can be defined as the amount of knowledge or attributes deemed vital to organizational success.There are four general types of skills:

1. Technical2. Supervisory3. Interpersonal4. General business


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SKILLS INVENTORIES

A skills inventory is a device for pinpointing information about individuals and their suitability for different jobs.


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MULTI-SKILLING

Multi-skilling is the process of training employees in specific skills that cross the traditional trade-specific or craft-specific skill sets.


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COMPETENCIES

Competencies are sets of behaviours that encompass skills, knowledge, abilities, and attributes.

Principles

Environment

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