PRINCIPLES OF MANAGEMENT- B.TECH(IST YEAR)

8/8/2019 PRINCIPLES OF MANAGEMENT- B.TECH(IST YEAR)

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PRINCIPLES OFMANAGEMENT


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THE DEFINITION OF MANAGEMENT

Management is the attainment oforganizational goals in an effective and

efficient manner through planning,organizing, leading, and controllingorganizational resources. There aretwo important ideas in this definition:

The attainment of organizational goalsin an efficient and effective manner;and

The four functions of planning,organizing, leading, and controlling.


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Organizational effectiveness is thedegree to which the organization achievesa stated objective. It means theorganization succeeds in accomplishingwhat it tries to do.

Organizational efficiency refers to theamount of resources used to achieve an

organizational goal. It is based on theamount of raw materials, money, andpeople necessary for producing a givenvolume of output.


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OTHER DEFINITIONS

Management is the art of securingmaximum results with minimum effort soas to secure maximum prosperity and

happiness for both employer and employeeand give the public the best possibleservice.- John Mee.

Management is simply the process ofdecision making and control over the action

of human beings for the expressed purposeof attaining pre- determined goals. Stanley Vance


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Management is the accomplishment ofresults through the efforts of otherpeople.- Lawrence Appley.

Management is the art of getting thingsdone through results through and withpeople in formally organized groups.-Knootz.


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Differnce between Administration and

Management

1. Level inOrganization

2. MajorFocus

1.Top Level

2. Policyformulation &objectivedetermination

Middle andLower Level

2. Policyexecution forobjectiveachievement


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3. Nature offunctions

4. Scope offunction

3.Determinative

4. Broad andconceptual

3.Executive

4. Narrowandoperational


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5. Factorsaffectingdecisions

6. EmployeeEmployerrelation

5. Mostlyexternal

6.Entrepreneurs and owners

5. Mostlyinternal

6. Employees


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Management: Science or Art

Science is based on logicalconsistency, systematic

explanation, critical evaluation andexperimental analysis.

Art is concerned with theunderstanding of how particular

work can be accomplished.


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Under science, one learns the why ofa phenomena, under art, one learns

the how of it.


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Management: Both Science and

Art

Thus a successful manager, a personrequires the knowledge of

management principles and also theskills of how the knowledge can beutilised.


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Nature of Management

Multidisciplinary

Relative, not absolute principles

Universality of management Management is intangible

Management is dynamic

Management is both a science andan art.


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THE FOUR MANAGEMENT

FUNCTIONS

Planning is the management functionconcerned with defining goals for futureorganizational performance and deciding

on the tasks and resources needed toattain them. It defines where theorganization wants to be in the futureand how to get there.

Organizing is the management functionconcerned with assigning tasks,grouping tasks into departments, andallocating resources to departments.Organizing follows planning and reflectshow the organization tries to accomplish

the plan.


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Leading is the management function thatinvolves the use of influence to motivateemployees to achieve the organizations

goals. It involves motivating entiredepartments and divisions as well asthose individuals working immediatelywith the manager.

Controlling is the management function

concerned with monitoring employeesactivities, keeping the organization ontrack toward its goals, and makingcorrections as needed.


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Functions of Management

Planning

Leading

Controlling Organizing

Use influence tomotivate employees

Select goals andways to attain

them

Assign responsibilityfor task

accomplishment

Monitor activities andmake corrections


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Planning Function

Definition

Defines goals for future organizational

performance Decides tasks and use of resources

needed

Corporate Examples

Planning AOL Time Warner TheLord of the Rings

Lack of planning Merry-Go-Round


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Leading Function

Definition

The use of influence to motivateemployees to achieve theorganizations goals.

Corporate Examples Michael Dell,

Meg Whitman of eBay, Cara Kakudaof Nextel


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Controlling Function

Definition

Monitoring employees

activities

Determining whether theorganization is on targettoward its goals

Making corrections asnecessary


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Controlling Function

Lack of Control can lead toOrganizational Failure


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The Process of Management

Planning

Leading

Resources

Controlling Organizing

Performance

Human

Financial

Raw Materials

Technological

Information

Attain goals

Products

Services

Efficiency

Effectiveness

Use influence tomotivate employees

Select goals and

ways to attain

them

Assign responsibilityfor task

accomplishment

Monitor activities

and make

corrections


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An organization is a social entitythat is goal directed and deliberatelystructured. Social entity means twoor more people. Goal directedmeans the organization is designedto achieve some outcome or goalsuch as make a profit. Deliberatelystructured means tasks are dividedand responsibility for theirperformance is assigned to

organization members.


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The managers responsibility is tocoordinate resources in an effective andefficient manner to accomplish the

organizations goals. Organizationaleffectiveness is the degree to which theorganization achieves a stated goal, orsucceeds in accomplishing what it tries todo. Organizational efficiency refers to

the amount of resources used to achievean organizational goal. It is based on thehow much raw materials, money, andpeople are necessary for producing agiven volume of output.


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The ultimate responsibility ofmanagers is to achieve high

performance, which is theorganizations ability to attain itsgoals by using resources in anefficient and effective manner.


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Managerial Roles

Planning

Organizing andStaffing

Organizer

Staffing

Coordinator

Resourceallocator


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Figurehead

Spokesperson

Negotiator Motivator and

coach

Team builder

Technicalproblem solver

Task delegator


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Management Skills

Exhibit 1.2


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Management Types - Vertical

Managerial Levels in the Organizational Hierarchy

Managerial Levels in the Organizational Hierarchy

Exhibit 1.3


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MANAGEMENT SKILLS

Conceptual skill is the cognitive ability to see theorganization as a whole and the relationships amongits parts. It involves the managers thinking,information processing, and planning abilities, andmeans the ability to think strategicallyto take the

broad, long-term view. Conceptual skill is especially important for top

managers.

Human skill is the managers ability to work with andthrough other people and to work effectively as agroup member. It is demonstrated in the way a

manager motivates, facilitates, coordinates, leads,communicates, and resolves conflicts. Asglobalization, workforce diversity, uncertainty, andsocietal turbulence increase, human skills becomeeven more crucial.

Human skill is important for managers at all levels,and particularly those who work with employees

directly on a daily basis.


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Technical skill is the understanding of andproficiency in the performance of specifictasks. This includes mastery of themethods, techniques, and equipment

involved in specific functions such asengineering, manufacturing, or finance.Technical skill also includes specializedknowledge, analytical ability, andcompetent use of tools and techniques tosolve problems in that specific discipline.

Technical skill is most important at lowerorganizational levels and become lessimportant than human and conceptual skillsas managers are promoted.


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Hawthorne studies

Started in 1895 Four experimental & threecontrol groups Test pointed to factors other than illumination for

productivity 1st Relay Assembly Test Room experiment, was

controversial, test lasted 6 years Interpretation, money not cause of increased

output Factor that increased output, Human Relations


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Management and Organization

Management philosophies andorganization forms change over

time to meet new needs

Some ideas and practices from thepast are still relevant and applicable

to management today


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Management Perspectives Over Time


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Classical Perspective: 3000 B.C.

Rational, scientificapproach to management

make organizationsefficient operatingmachines

Scientific Management

Bureaucratic Organizations

Administrative Principles


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CLASSICAL THOUGHT OF

MANAGEMENT

SCIENTIFIC MANAGEMNT: F.W.TAYLOR

BUREAUCRATIC APPROACH: MAXWEBER

PRINCIPLES OF MANAGEMENT:FAYOL


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SCIENTIFIC MANAGEMENT

Scientific management isconcerned with knowing exactly

what you want men to do and thensee in that they do it in the bestand cheapest way


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Elements and Tools of scientificmanagement

Principles of scientific management

El t d T l f i tifi


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Elements and Tools of scientific

management

Separation of Planning and Doing

Functional Foremanship

Job Analysis Time study

Motion study

Fatigue study


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Production in-charge

Speed boss

Inspector Maintenance foreman

Gang boss


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Standardization

Scientific selection & Training of

Workers Financial Incentives

Economy

Mental Revolution


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Principles of scientific management

Replacing Rule of thumb withscience

Harmony in Group action Co-operation

Maximum Output

Development of workers


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Fayols


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Scientific ManagementContributions Demonstrated the importance of compensation for

performance. Initiated the careful study of tasks and jobs. Demonstrated the importance of personnel and their

training.

Criticisms Did not appreciate social context of work and higher

needs of workers.

Did not acknowledge variance among individuals. Tended to regard workers as uninformed and ignored

their ideas


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Planning


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1. Define present situation.

2. Establish goals and objectives.

3. Analyze environment in terms of aidsand barriers to goals and objectives.

4. Develop action plans to reach goals

and objectives.

A Framework for

Planning

PRINCIPLES OF MANAGEMENT- B.TECH(IST YEAR)

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