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PRINCIPLES OF MANAGEMENT MG2351 UNIT I OVERVIEW OF MANAGEMENT Definition Management Role of managers Evolution of Management thought
PRINCIPLES OF MANAGEMENT MG2351,UNIT I OVERVIEW OF MANAGEMENT. Definition Management Role of managers Evolution of Management thought. Organization and the environmental factors Trends and Challenges of Management in. Global Scenario,UNIT II PLANNING, Nature and purpose of planning Planning process Types of plans Objectives. Managing by objective MBO Strategies Types of strategies Policies Decision. Making Types of decision Decision Making Process Rational Decision Making. Process Decision Making under different conditions. UNIT III ORGANIZING, Nature and purpose of organizing Organization structure Formal and informal groups. organization Line and Staff authority Departmentation Span of control. Centralization and Decentralization Delegation of authority Staffing Selection and. Recruitment Orientation Career Development Career stages Training. Performance Appraisal,UNIT IV DIRECTING, Creativity and Innovation Motivation and Satisfaction Motivation Theories. Leadership Styles Leadership theories Communication Barriers to effective. communication Organization Culture Elements and types of culture Managing. cultural diversity,UNIT V CONTROLLING, Process of controlling Types of control Budgetary and non budgetary control. techniques Managing Productivity Cost Control Purchase Control Maintenance. Control Quality Control Planning operations,OVERVIEW OF MANAGEMENT. DEFINITION, According to Harold Koontz Management is an art of getting things done through and with the. people in formally organized groups It is an art of creating an environment in which people can. perform and individuals and can co operate towards attainment of group goals. LEVELS OF MANAGEMENT,The three levels of management are as follows. 1 The Top Management, It consists of board of directors chief executive or managing director The top. management is the ultimate source of authority and it manages goals and policies for an. enterprise It devotes more time on planning and coordinating functions. The role of the top management can be summarized as follows. a Top management lays down the objectives and broad policies of the enterprise. b It issues necessary instructions for preparation of department budgets. procedures schedules etc, c It prepares strategic plans policies for the enterprise. d It appoints the executive for middle level i e departmental managers. e It controls coordinates the activities of all the departments. f It is also responsible for maintaining a contact with the outside world. g It provides guidance and direction, h The top management is also responsible towards the shareholders for the. performance of the enterprise,2 Middle Level Management. The branch managers and departmental managers constitute middle level They are. responsible to the top management for the functioning of their department They devote. more time to organizational and directional functions In small organization there is only. one layer of middle level of management but in big enterprises there may be senior and. junior middle level management Their role can be emphasized as. a They execute the plans of the organization in accordance with the policies and. directives of the top management, b They make plans for the sub units of the organization. c They participate in employment training of lower level management. d They interpret and explain policies from top level management to lower level. e They are responsible for coordinating the activities within the division or. department, f It also sends important reports and other important data to top level. management,g They evaluate performance of junior managers. h They are also responsible for inspiring lower level managers towards better. performance,3 Lower Level Management, Lower level is also known as supervisory operative level of management It consists of. supervisors foreman section officers superintendent etc According to R C Davis. Supervisory management refers to those executives whose work has to be largely with. personal oversight and direction of operative employees In other words they are. concerned with direction and controlling function of management Their activities include. a Assigning of jobs and tasks to various workers, b They guide and instruct workers for day to day activities. c They are responsible for the quality as well as quantity of production. d They are also entrusted with the responsibility of maintaining good relation in the. organization, e They communicate workers problems suggestions and recommendatory. appeals etc to the higher level and higher level goals and objectives to the. f They help to solve the grievances of the workers. g They supervise guide the sub ordinates, h They are responsible for providing training to the workers. i They arrange necessary materials machines tools etc for getting the things. j They prepare periodical reports about the performance of the workers. k They ensure discipline in the enterprise,l They motivate workers. m They are the image builders of the enterprise because they are in direct contact. with the workers,FUNCTIONS OF MANAGEMENT, Management has been described as a social process involving responsibility for economical. and effective planning regulation of operation of an enterprise in the fulfillment of given. purposes It is a dynamic process consisting of various elements and activities These activities. are different from operative functions like marketing finance purchase etc Rather these. activities are common to each and every manger irrespective of his level or status. Different experts have classified functions of management According to George Jerry There. are four fundamental functions of management i e planning organizing actuating and. controlling According to Henry Fayol To manage is to forecast and plan to organize to. command to control Whereas Luther Gullick has given a keyword POSDCORB where P. stands for Planning O for Organizing S for Staffing D for Directing Co for Co ordination R for. reporting B for Budgeting But the most widely accepted are functions of management given. by KOONTZ and O DONNEL i e Planning Organizing Staffing Directing and Controlling. For theoretical purposes it may be convenient to separate the function of management but. practically these functions are overlapping in nature i e they are highly inseparable Each. function blends into the other each affects the performance of others. 1 Planning, It is the basic function of management It deals with chalking out a future course of. action deciding in advance the most appropriate course of actions for achievement of. pre determined goals According to KOONTZ Planning is deciding in advance what to. do when to do how to do It bridges the gap from where we are where we want to. be A plan is a future course of actions It is an exercise in problem solving decision. making Planning is determination of courses of action to achieve desired goals Thus. planning is a systematic thinking about ways means for accomplishment of pre. determined goals Planning is necessary to ensure proper utilization of human non. human resources It is all pervasive it is an intellectual activity and it also helps in. avoiding confusion uncertainties risks wastages etc. 2 Organizing, It is the process of bringing together physical financial and human resources and. developing productive relationship amongst them for achievement of organizational. goals According to Henry Fayol To organize a business is to provide it with everything. useful or its functioning i e raw material tools capital and personnel s To organize a. business involves determining providing human and non human resources to the. organizational structure Organizing as a process involves. Identification of activities,Classification of grouping of activities. Assignment of duties, Delegation of authority and creation of responsibility. Coordinating authority and responsibility relationships. 3 Staffing, It is the function of manning the organization structure and keeping it manned Staffing. has assumed greater importance in the recent years due to advancement of technology. increase in size of business complexity of human behavior etc The main purpose o. staffing is to put right man on right job i e square pegs in square holes and round pegs. in round holes According to Kootz O Donell Managerial function of staffing involves. manning the organization structure through proper and effective selection appraisal. development of personnel to fill the roles designed un the structure Staffing involves. Manpower Planning estimating man power in terms of searching choose the. person and giving the right place,Recruitment selection placement. Training development,Remuneration,Performance appraisal. Promotions transfer,4 Directing, It is that part of managerial function which actuates the organizational methods to work. efficiently for achievement of organizational purposes It is considered life spark of the. enterprise which sets it in motion the action of people because planning organizing and. staffing are the mere preparations for doing the work Direction is that inert personnel. aspect of management which deals directly with influencing guiding supervising. motivating sub ordinate for the achievement of organizational goals Direction has. following elements,Supervision,Motivation,Leadership. Communication, i Supervision implies overseeing the work of subordinates by their superiors It is the. act of watching directing work workers, ii Motivation means inspiring stimulating or encouraging the sub ordinates with zeal. to work Positive negative monetary non monetary incentives may be used for this. iii Leadership may be defined as a process by which manager guides and influences. the work of subordinates in desired direction, iv Communications is the process of passing information experience opinion etc. from one person to another It is a bridge of understanding. 5 Controlling, It implies measurement of accomplishment against the standards and correction of. deviation if any to ensure achievement of organizational goals The purpose of. controlling is to ensure that everything occurs in conformities with the standards An. efficient system of control helps to predict deviations before they actually occur. According to Theo Haimann Controlling is the process of checking whether or not. proper progress is being made towards the objectives and goals and acting if necessary. to correct any deviation According to Koontz O Donell Controlling is the. measurement correction of performance activities of subordinates in order to make. sure that the enterprise objectives and plans desired to obtain them as being. accomplished Therefore controlling has following steps. i Establishment of standard performance,ii Measurement of actual performance. iii Comparison of actual performance with the standards and finding out deviation if. iv Corrective action,ROLES OF MANAGER, Henry Mintzberg identified ten different roles separated into three categories The categories he. defined are as follows,a Interpersonal Roles, The ones that like the name suggests involve people and other ceremonial duties It can be. further classified as follows, Leader Responsible for staffing training and associated duties. Figurehead The symbolic head of the organization, Liaison Maintains the communication between all contacts and informers that compose. the organizational network,b Informational Roles, Related to collecting receiving and disseminating information. Monitor Personally seek and receive information to be able to understand the. organization, Disseminator Transmits all import information received from outsiders to the members. of the organization, Spokesperson On the contrary to the above role here the manager transmits the. organization s plans policies and actions to outsiders. c Decisional Roles,Roles that revolve around making choices. Entrepreneur Seeks opportunities Basically they search for change respond to it and. exploit it, Negotiator Represents the organization at major negotiations. Resource Allocator Makes or approves all significant decisions related to the allocation. of resources, Disturbance Handler Responsible for corrective action when the organization faces. disturbances,EVOLUTION OF MANAGEMENT THOUGHT, The practice of management is as old as human civilization The ancient civilizations of. Egypt the great pyramids Greece leadership and war tactics of Alexander the great and. Rome displayed the marvelous results of good management practices. The origin of management as a discipline was developed in the late 19th century Over. time management thinkers have sought ways to organize and classify the voluminous. information about management that has been collected and disseminated These attempts at. classification have resulted in the identification of management approaches The approaches of. management are theoretical frameworks for the study of management Each of the approaches. of management are based on somewhat different assumptions about human beings and the. organizations for which they work,The different approaches of management are. a Classical approach,b Behavioral approach,c Quantitative approach. d Systems approach,e Contingency approach, The formal study of management is largely a twentieth century phenomenon and to some. degree the relatively large number of management approaches reflects a lack of consensus. among management scholars about basic questions of theory and practice. a THE CLASSICAL APPROACH, The classical approach is the oldest formal approach of management thought Its roots pre date. the twentieth century The classical approach of thought generally concerns ways to manage. work and organizations more efficiently Three areas of study that can be grouped under the. classical approach are scientific management administrative management and bureaucratic. management,i Scientific Management, Frederick Winslow Taylor is known as the father of scientific management Scientific. management also called Taylorism or the Taylor system is a theory of management that. analyzes and synthesizes workflows with the objective of improving labor productivity In other. words Traditional rules of thumb are replaced by precise procedures developed after careful. study of an individual at work,ii Administrative Management. Administrative management focuses on the management process and principles of. management In contrast to scientific management which deals largely with jobs and work at. the individual level of analysis administrative management provides a more general theory of. management Henri Fayol is the major contributor to this approach of management thought. iii Bureaucratic Management, Bureaucratic management focuses on the ideal form of organization Max Weber was. the major contributor to bureaucratic management Based on observation Weber concluded. that many early organizations were inefficiently managed with decisions based on personal. relationships and loyalty He proposed that a form of organization called a bureaucracy. characterized by division of labor hierarchy formalized rules impersonality and the selection. and promotion of employees based on ability would lead to more efficient management Weber. also contended that managers authority in an organization should be based not on tradition or. charisma but on the position held by managers in the organizational hierarchy. b THE BEHAVIORAL APPROACH, The behavioral approach of management thought developed in part because of. perceived weaknesses in the assumptions of the classical approach The classical approach. emphasized efficiency process and principles Some felt that this emphasis disregarded. important aspects of organizational life particularly as it related to human behavior Thus the. behavioral approach focused on trying to understand the factors that affect human behavior at. i Human Relations, The Hawthorne Experiments began in 1924 and continued through the early 1930s A. variety of researchers participated in the studies including Elton Mayo One of the major. conclusions of the Hawthorne studies was that workers attitudes are associated with. productivity Another was that the workplace is a social system and informal group influence. could exert a powerful effect on individual behavior A third was that the style of supervision is. an important factor in increasing workers job satisfaction. ii Behavioral Science, Behavioral science and the study of organizational behavior emerged in the 1950s and. 1960s The behavioral science approach was a natural progression of the human relations. movement It focused on applying conceptual and analytical tools to the problem of. understanding and predicting behavior in the workplace. The behavioral science approach has contributed to the study of management through. its focus on personality attitudes values motivation group behavior leadership. communication and conflict among other issues,c THE QUANTITATIVE APPROACH. The quantitative approach focuses on improving decision making via the application of. quantitative techniques Its roots can be traced back to scientific management. i Management Science Operations Research, Management science also called operations research uses mathematical and statistical. approaches to solve management problems It developed during World War II as strategists. tried to apply scientific knowledge and methods to the complex problems of war Industry began. to apply management science after the war The advent of the computer made many. management science tools and concepts more practical for industry. ii Production And Operations Management, This approach focuses on the operation and control of the production process that. transforms resources into finished goods and services It has its roots in scientific management. but became an identifiable area of management study after World War II It uses many of the. tools of management science, Operations management emphasizes productivity and quality of both manufacturing and. service organizations W Edwards Deming exerted a tremendous influence in shaping modern. ideas about improving productivity and quality Major areas of study within operations. management include capacity planning facilities location facilities layout materials requirement. planning scheduling purchasing and inventory control quality control computer integrated. manufacturing just in time inventory systems and flexible manufacturing systems. d SYSTEMS APPROACH, The simplified block diagram of the systems approach is given below. The systems approach focuses on understanding the organization as an open system. that transforms inputs into outputs The systems approach began to have a strong impact on. management thought in the 1960s as a way of thinking about managing techniques that would. allow managers to relate different specialties and parts of the company to one another as well. as to external environmental factors The systems approach focuses on the organization as a. whole its interaction with the environment and its need to achieve equilibrium. e CONTINGENCY APPROACH, The contingency approach focuses on applying management principles and processes. as dictated by the unique characteristics of each situation It emphasizes that there is no one. best way to manage and that it depends on various situational factors such as the external. environment technology organizational characteristics characteristics of the manager and. characteristics of the subordinates Contingency theorists often implicitly or explicitly criticize the. classical approach for its emphasis on the universality of management principles however. most classical writers recognized the need to consider aspects of the situation when applying. management principles,MANAGEMENT,Beginning Dates Emphasis. CLASSICAL APPROACH, Traditional rules of thumb are replaced by precise. Scientific, 1880s procedures developed after careful study of an. Management,individual at work,Gives idea about the primary functions of. Administrative,1940s management and The 14 Principles of. Management,Administration, Bureaucratic Replaces traditional leadership and charismatic. Management leadership with legal leadership,BEHAVIORAL APPROACH. 1930s workers attitudes are associated with productivity. Behavioral Gives idea to understand human behavior in the. Science organization,QUANTITATIVE APPROACH,Management. Science Uses mathematical and statistical approaches to. Operation solve management problems, Production This approach focuses on the operation and. and Operations 1940s control of the production process that transforms. Management resources into finished goods and services. RECENT DEVELOPEMENTS,Considers the organization as a system that. 1950s transforms inputs into outputs while in constant. interaction with its environment,Applies management principles and processes as. CONTINGENCY, 1960s dictated by the unique characteristics of each. CONTRIBUTION OF FAYOL AND TAYLOR, F W Taylor and Henry Fayol are generally regarded as the founders of scientific. management and administrative management and both provided the bases for science and art. of management,Taylor s Scientific Management, Frederick Winslow Taylor well known as the founder of scientific management was the first to. recognize and emphasis the need for adopting a scientific approach to the task of managing an. enterprise He tried to diagnose the causes of low efficiency in industry and came to the. conclusion that much of waste and inefficiency is due to the lack of order and system in the. methods of management He found that the management was usually ignorant of the amount of. work that could be done by a worker in a day as also the best method of doing the job As a. result it remained largely at the mercy of the workers who deliberately shirked work He.