unit2-management practices

8/9/2019 unit2-management practices

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Management processManagement processDr.YogananthanDr.Yogananthan


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C ontentsC ontents

IntroductionIntroductionManagerial functionsManagerial functionsProcess of managementProcess of management Planning Planning Organising Organising Staffing Staffing Directing Directing

Motivating Motivating McGregor theory McGregor theory Maslow theory Maslow theory

Controlling Controlling Establishing standardsEstablishing standards Actual / planned results Actual / planned results

Taking corrective action Taking corrective actionCo ordinationCo ordinationCommunicationCommunicationPrinciples of Principles of managementmanagement Nature / need of Nature / need of

management principlesmanagement principles Henry fayols principlesHenry fayols principles


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I ntroductionI ntroduction

McFarland management is the process by whichMcFarland management is the process by whichmanagers create, direct, maintain and operate purposivemanagers create, direct, maintain and operate purposiveorganisations through systematic, coordinated and coorganisations through systematic, coordinated and cooperative human effort.operative human effort.

Terry management is a distinct process consisting of Terry management is a distinct process consisting of planning, organising, actuating and controlling,planning, organising, actuating and controlling,performed to determine and accomplish statedperformed to determine and accomplish statedobjectives by the use of human beings and otherobjectives by the use of human beings and otherresources.resources.


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INPUTS

MENM ACHINERY M ATER I ALS

MONEY M ARKETRESOUR CES

Planning Directing

Organising Controlling

E nd results

Out putgoals

PR O C E SS OF MA N AGE ME NT


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D ecision making onknowledge/experience

C ontrolling Organising

C ommunicating D irecting

P lanning

Motivating Functions of manager


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P lanningP lanning

Nature of planning Nature of planning Importance of planning Importance of planning

Advantages / disadvantages of planning Advantages / disadvantages of planning Planning processPlanning process


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Louis A Allen management planning involvesLouis A Allen management planning involvesthe development of forecast, objectives, policies,the development of forecast, objectives, policies,

programmes, procedures, schedules andprogrammes, procedures, schedules andbudgets.budgets.Koontz odonnell planning is an intellectualKoontz odonnell planning is an intellectualprocess, the conscious determination of coursesprocess, the conscious determination of coursesof action, the basing of decisions on purpose,of action, the basing of decisions on purpose,acts and considered estimates.acts and considered estimates.


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N ature of planningN ature of planning

It is goal orientedIt is goal orientedPrimacy of planning Primacy of planning

Pervasiveness of planning Pervasiveness of planning Efficiency, economy and accuracy Efficiency, economy and accuracy Co ordinationCo ordinationLimiting factorsLimiting factorsFlexibility Flexibility Planning is an intellectual processPlanning is an intellectual process


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I mportance of planningI mportance of planning

To manage by objectives To manage by objectives To offset uncertainty and change To offset uncertainty and change

To secure the economy of operation To secure the economy of operation To help in co ordination To help in co ordination To make control effective To make control effective

To increase the organisational effectiveness To increase the organisational effectiveness


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Advantages of planning Advantages of planning

All works are directed towards goals & All works are directed towards goals &unwanted works are minimisedunwanted works are minimised

To make competitive over the rivals To make competitive over the rivals Anticipation and prevention of crisis / mistakes Anticipation and prevention of crisis / mistakesIt points out future changes and facilitateIt points out future changes and facilitate

changes effectively changes effectively


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D isadvantages of planningD isadvantages of planning

Environmental factors uncontrollable/Environmental factors uncontrollable/unpredictable to large extendunpredictable to large extend

On many occasions it is very costly On many occasions it is very costly Tendency to inflexibility is another limitation Tendency to inflexibility is another limitationPlanning delays actionPlanning delays action

It encourages false sense of security against risksIt encourages false sense of security against risks/ uncertainty / uncertainty


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P lanning processP lanning process Analysis of external Analysis of externalenvironmentenvironment

Analysis of internal Analysis of internalenvironmentenvironmentDetermination of missionDetermination of missionDetermination of objectivesDetermination of objectivesForecasting Forecasting Determining alternate courseDetermining alternate courseof actionof actionEvaluating the alternateEvaluating the alternatecoursecourse

Selecting the bestSelecting the bestEstablishing the sequence of Establishing the sequence of activitiesactivitiesFormulation of actionFormulation of actionprogrammesprogrammes Time limit of performance Time limit of performance Allocation of tasks to Allocation of tasks to

individualsindividuals Scheduled work Scheduled work Reviewing of planning Reviewing of planning process.process.


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OrganisingOrganising

Principles of organisationPrinciples of organisation Consideration of unity of Consideration of unity of

organisationorganisation

SpecialisationSpecialisation Co ordinationCo ordination Clear unbroken line of Clear unbroken line of

authority authority

Responsibility Responsibility

Efficiency Efficiency delegationdelegation unity of commandunity of command

Span of managementSpan of management CommunicationCommunication flexibility flexibility


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S taffingS taffing

Sub functionsSub functions RecruitmentRecruitment Selection of bestSelection of best Transfers/ promotions Transfers/ promotions Training Training

ImportanceImportance Discovery talentedDiscovery talented

workers and into a workers and into acorporate leadercorporate leader

Ensures great productionEnsures great productionas right men in right jobas right men in right jobPrevent sudden shortagePrevent sudden shortageof personnelof personnelPrevent overmanning Prevent overmanning Helps the managementHelps the management

for internal succession infor internal succession inthe event of anthe event of anunanticipated turnoverunanticipated turnover


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D irectingD irecting

Marshall directing involves determining theMarshall directing involves determining thecourse, giving orders and instructions andcourse, giving orders and instructions andproviding dynamic leadership.providing dynamic leadership.Process of directing / activating Process of directing / activating Providing effective leadershipProviding effective leadership Integrate people / task and convince them toIntegrate people / task and convince them to

achieveachieve Effective communicationEffective communication Provide climate for subordinate developmentProvide climate for subordinate development


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MotivatingMotivating

During the instructions from managers toDuring the instructions from managers toindividual dependsindividual depends

Individuals needs and characteristicsIndividuals needs and characteristics Emotional & temperamental make upEmotional & temperamental make up Pattern of individuals belief Pattern of individuals belief Informal group where he belongsInformal group where he belongs

McGregor's theory X & theory Y McGregor's theory X & theory Y Maslows need hierarchy theory Maslows need hierarchy theory


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McGregor's theory X & theory Y McGregor's theory X & theory Y

Theory X Theory X Management is responsible for organising Management is responsible for organising money,money,

material, equipment, peoplematerial, equipment, people in the interest of in the interest of economic ends.economic ends.

Direct, motivate, control, modify their actions forDirect, motivate, control, modify their actions forconformity of need of org.conformity of need of org.

People are passive, they persuaded, rewarded,People are passive, they persuaded, rewarded,punished and properly directed.punished and properly directed.

Average man dislike work and he avoids if possible Average man dislike work and he avoids if possible


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He lacks ambition, dislikes responsibility andHe lacks ambition, dislikes responsibility andprefers to led.prefers to led.

Individual is self centered & vary from org.Individual is self centered & vary from org.needsneedsIndividual is resistant to changeIndividual is resistant to change

Gullible and not very brightGullible and not very bright


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T heory Y T heory Y

They work as play or rest & dont dislike work They work as play or rest & dont dislike work Their self direction / control/ commitment are Their self direction / control/ commitment are

enough drivesenough drivesSome reward system may boost their moraleSome reward system may boost their morale

They learn to accept responsibility They learn to accept responsibility

High imagination/ creativity for the problemsHigh imagination/ creativity for the problemsPartial potentials are used.Partial potentials are used.


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Maslows need hierarchy theoryMaslows need hierarchy theory

People have wide range of needs to motivatePeople have wide range of needs to motivateHuman needs can beHuman needs can be Safety and security needsSafety and security needs

Affiliation / social needs Affiliation / social needs Esteem needsEsteem needs Self actualisation needsSelf actualisation needsPhysical needs are the base and self actualisation is apexPhysical needs are the base and self actualisation is apexOnce satisfied with one need people strive for the otherOnce satisfied with one need people strive for the otherneedneedRelative satisfaction of lower needs important to goRelative satisfaction of lower needs important to gohigh levelshigh levels


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P YY SI OLOG IC AL(hunger, thirst, relaxation, sex, etc)

S E CURIT Y (protection against danger,

threat deprivation, etc )

S O CI AL A SS O CI A TI O N WITH O TH E RS(belonging, receiving affection, etc)

S E LF E ST EE M(status, etc)

S E LF A CTU AL IS A TI O N

(creativity, self expression, etc)


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Motivational techniquesMotivational techniques

Monetary incentivesMonetary incentives Cash benefits, security of tenure, etcCash benefits, security of tenure, etcJob based techniques Job based techniques Job simplification/ rotation/ enlargement Job simplification/ rotation/ enlargementMBO techniquesMBO techniques Mutual agreementMutual agreementLeadership techniquesLeadership techniques Autocratic, democratic, participative Autocratic, democratic, participativeSensitivity training Sensitivity training Behave and motivate juniorsBehave and motivate juniors


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C ontrollingC ontrolling

E.F.L.Brech the process of checking actualE.F.L.Brech the process of checking actualperformance against the agreed standards with aperformance against the agreed standards with a

view to ensuring satisfactory performance.the view to ensuring satisfactory performance.theprocess of control involves the following steps.process of control involves the following steps. Establishing standardsEstablishing standards Measuring and comparing actual results againstMeasuring and comparing actual results against

standardsstandards Taking corrective action Taking corrective action


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Types of control methods Types of control methods Past oriented controlsPast oriented controls Future oriented controlsFuture oriented controls

Essentials of effective control systemsEssentials of effective control systems SuitableSuitable Timely and forward looking Timely and forward looking Objective and comprehensiveObjective and comprehensive FlexibleFlexible

EconomicalEconomical Acceptable to org. members Acceptable to org. members Motivate people to high performanceMotivate people to high performance


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C ontrol techniquesC ontrol techniques

Budgeting Budgeting Standard costing Standard costing

Responsibility accounting Responsibility accounting ReportsReportsStanding orders, rules and limitationsStanding orders, rules and limitations

Personal observationPersonal observation


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C o ordinationC o ordination

Mary parkerMary parker principles to achieve coordinationprinciples to achieve coordination It must be sought in early stages of activity It must be sought in early stages of activity

It should be attained by direct contact to ensureIt should be attained by direct contact to ensurepromptnesspromptness Coordination links allCoordination links all production, sales, finance,production, sales, finance,

etcetc

It must be maintained as a continuous processIt must be maintained as a continuous process


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C ommunicationC ommunication

Locus allen communication is sum of all things oneLocus allen communication is sum of all things oneperson does when he wants to create understanding inperson does when he wants to create understanding inthe mind of another.. It involves a systematic andthe mind of another.. It involves a systematic and

continuous process of listening and understanding.continuous process of listening and understanding.Purpose of communicationPurpose of communication To persuade the employees towards their role/ commitment To persuade the employees towards their role/ commitment To bring orientation between various levels To bring orientation between various levels To enable employee effectively To enable employee effectively To teach personal safety of job To teach personal safety of job


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To project the image of enterprise to the society To project the image of enterprise to the society Helps the manager in decision making processHelps the manager in decision making processHelp in achieving coordinationHelp in achieving coordinationPromotes cooperation and industrial peace.Promotes cooperation and industrial peace.Increases the managerial efficiency.Increases the managerial efficiency.Flow of communicationFlow of communication Formal communicationFormal communication Upward/ downward communicationUpward/ downward communication Horizontal / lateral communicationHorizontal / lateral communication


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Forms of communicationForms of communication Verbal communication (oral & written) Verbal communication (oral & written)

Non verbal communicationNon verbal communication Informal communicationInformal communication

Process of communicationProcess of communication


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Sender encoding decoding receiverMessage

Noise

Feed back Response


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B arriers of communicationB arriers of communication

Badly expressed messageBadly expressed messageFaulty organisationFaulty organisation

Distrust of communicationDistrust of communicationRestricting communicationRestricting communicationDifferent backgroundDifferent background

InattentionInattention


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C ommunication networksC ommunication networks

ChairChair freefree wheel/star wheel/stardecentraliseddecentralised


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N ature of management principlesN ature of management principles

It aims at reaping rich results in economic terms.It aims at reaping rich results in economic terms.It also implies skill and experience in getting thingsIt also implies skill and experience in getting thingsdone thro people.done thro people.It is a processIt is a processIt is a universal activity It is a universal activity It is science and art.It is science and art.

It is a professionIt is a professionIt is an endeavour to achieve pre determined objectives.It is an endeavour to achieve pre determined objectives.


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N eed for Management P rinciplesN eed for Management P rinciples

To increase the efficiency To increase the efficiency To crystalise the nature of management To crystalise the nature of management

Encourage researchEncourage research To attain social objectives To attain social objectives


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H enry fayols principles of H enry fayols principles of managementmanagement

A French goal mine engineer known as father of A French goal mine engineer known as father of modern theory of general and industrialmodern theory of general and industrialmanagement. He divided general/ industrialmanagement. He divided general/ industrialmanagement into 6 groupsmanagement into 6 groups Technical activities Technical activities production, manufacture,production, manufacture,

adaptationadaptation

Commercial activitiesCommercial activities buying, selling & exchangebuying, selling & exchange Financial activitiesFinancial activities search for optimum use of search for optimum use of

capitalcapital


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Security servicesSecurity services protection of property andprotection of property andpersonspersons

Accounting activities Accounting activities stock taking, balancestock taking, balancesheet, cost and stasticssheet, cost and stasticsManagerial activitiesManagerial activities planning, organisation,planning, organisation,command, coordination and controlcommand, coordination and control


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14 principles of management14 principles of management

Division of work Division of work Authority / Authority /responsibility responsibility

DisciplineDisciplineUnity of commandUnity of commandUnity of directionUnity of directionSubordination of Subordination of individuals interest toindividuals interest togeneral interestgeneral interestremunerationremuneration

CentralisationCentralisationScalar chainScalar chainOrderOrderEquity Equity Equity stability of tenureEquity stability of tenureInitiativeInitiativeSpirit of co operationSpirit of co operation


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