Principles and practice of management

PRINCIPLES & PRACTICE OF MANAGEMENT by : DR. T.K. JAIN AFTERSCHO ☺ OL centre for social entrepreneurship sivakamu veterinary hospital road bikaner 334001 rajasthan, india FOR – CSE & PGPSE STUDENTS (CSE & PGPSE are free online programmes open for all, free for all) mobile : 91+9414430763

My words..... My purpose here is to give a few ideas about basic ideas of management. These are introductory topics. We wish that you become an entrepreneur & change the society, change the world. Go with positive spirit. Please pass this presentation to all those who might need it. Let us spread knowledge as widely as possible. I welcome your suggestions. I also request you to help me in spreading social entrepreneurship across the globe – for which I need support of you people – not of any VIP. With your help, I can spread the ideas – for which we stand....

WHAT IS THE SCIENTIFIC SCHOOL OF MANAGEMENT ? It was given by F.W. Taylor, Mooney, Reiley, Gullick, Gilbreth and Urwick etc. They suggested managers to follow science in their decision making. The basic ideas are : 1. science not rule of thumb 2. division of labour 3. better working conditions to improve productivity 4. training and proper planning 5. cooperation between management & workers 6. incentives for higher productivity

Who is the father of modern management thoughts? Henry Fayol READ IT : http://en.wikipedia.org/wiki/Henri_Fayol

WHAT IS THE CONTRIBUTION OF FAYOL? He gave 14 principlesof management He talked about 6 fundamental activities of management He said : management is universal http://www.12manage.com/methods_fayol_14_principles_of_management.html http://wiki.answers.com/Q/What_were_the_14_principles_of_Henry_Fayol

NAME THE 3 CONTEMPORARY THINKERS WHO GAVE THREE DIFFERENT IDEAS OF CLASSICAL SCHOOL OF MANAGEMENT ? http://en.wikipedia.org/wiki/Frederick_Winslow_Taylor 1. Henry Fayol 2. F.W. Taylor 3. Max Weber

What is the contribution of Bureaucracy ? It was introduced by Max Weber. The basic ideas were : 1. merit is the most important thing 2. There should be written rules, procedures, and code of conduct, which must be strictly followed 3. impersonality and 100% objectivity 4. organisations and methods – for doing anything

WHAT IS NEO-CLASSICAL APPROACH ? As the name denotes, it came after classical approach. It was introduced by scholars like Elton Mayo, Roethlisberger etc. It focussed on human relations and gave more importance to human behaviour than to machines or rules.

Who gave Human relations approach ? Elton Mayo and Roethlisberger carried out Hawthorne experiments (from 1924 to 1932) they carried out 4 experiements and concluded with human relations theory = which said that relations between people are more powerful than the poor links of the orgaistion. The theory gave importance to informal organisation, better relations with people. http://en.wikipedia.org/wiki/Elton_Mayo

What were Hawthorne Experiments? These experiments were carried out from 1924 to 1932 there were 4 main experiments : 1. illumination experiment 2. relay assembly test room experiment 3. massive interview programmes 4. bank wiring room study

Who gave decision making approach to management ? Herbert A. Simon was the main thinkers. He gave many models about decision making. The important models are : 1. Satisficing decision – not optimising 2. Administrative Decision theory

What are the latest theories in management ? 1. Systems approach 2. contingency approach

What is systems approach to management ? Systems approach considers organisation as a system. Being a system, it has following components : 1. inputs 2. processing 3. output 4. thermostats 5. negative entropy

How many types of systems are possible ? Two types of systems are there : 1. open system 2. closed systems

WHICH IS BETTER ? Open system is better than closed system In order to create open system, you have to do the following : 1. create feedback mechanism 2. change the organisation as per feedack 3. establish internal reporting mechanisms

What is contingency approach ? Contingency = it depends each situation calls for different solution. Solution to business problems depends on the situation. Therefore analyse each situation and prepare solutions as per the situations. Here we have to study environment, look into factors contributing to the success of the organisation and accordingly prepare solutions.

Who gave contingency approach ? Fiedler Tannenbaum Vroom Porter Lawler Peter F. Drucker Fred Luthans http://en.wikipedia.org/wiki/Fiedler_contingency_model

What is the difference between line and staff? Line executives are responsible for implementation of work staff people undertake advisory work and give guidance and support. Line executives are in authority positions, staff people work as advisors / support people

Why there is confliect between line and staff? Line people consider staff people as too theoretical, impractical, unrealistic Staff people consider line people as very unreasonable, unwilling to change, unsophisticated, unprofessional.... Line people understand the reality better, but staff people understand the theory better. There is also a type of Ego problem between the two

What is span of control? How many subordinates can you handle? This is called span of control. If you can handle more people, you have wider span V.A. Graicunas (a French Management thinker ) identified the number of relationship a person would have as per span of control. He suggested that there should not be more than 8 direct subordinates to an executive.

What is power and politics? Power = influence everyone wants to acquire power (influence over others) Politics = the process through which people try to acquire power in an organisation. There is bound to be struggle for power in every organisation. People want to get power, but remember, power corrupts, and absolute power corrupts absolutely.

What is conflict in organisation? Different ideas / different perspectives / different approaches create conflict. Conflict is natural in every organisation. There cannot be any organisation – which doesnt have conflict. Conflict can be due to : 1. different goals 2. different methods of working 3. limited resources 4. willingness to acquire power

How to manage conflict in organisation? Thre are 4 methods : 1. avoid it (the worst method) (lose-lose) 2. compromise (it is also very bad method) (lose win) 3. dominate on others (it is also bad – as you try to crush others) (win lose) 4. Win-win approach or confrontation approach

What is the best method to manage conflict? Confrontation (win-win approach) sit across table, find a solution which is good for both the parties to conflict.

What is authority? Your ability to influence is called power. When you derive this power from your formal position, it is called authority. Authority is the power that you derive from your formal position.

What is the acceptance theory of authority? When you derive authority from others, (or others accept you as superior) it is called acceptance theory of authority. This theory is given by Chester I. Barnard

How can we handle authority relation in the organisation? There should be balance between authority and responsibility. Authority should be = responsibility if authority is less than responsibility or more than it, it will not work. We need to have a balance between the two.

What is delegation? When an executive passes his authority and responsibility to his subordinates and asks them to undertake some work, it is called delegation. Remember : ultimate accountability can never be delegated.

Why dont executives delegate? 1 They have a fear – the subordinates will develop and overtake them 2. they have a false notion that their subordinates are useless creatures and are simply incompetent 3. they dont know how to delegate 4. they dont want to train and develop their subordinates 5. subordinates are not willing to take up responsiblities

What are the principles of delegation? 1. create proper setup 2. give proper training to subordinates 3. give proper support to subordinates 4. give adequate authority along with responsibility 5. trust your subordinates 6. establish clear communication channel

What are the methods of departmentation? 1. based on functions (functional) 2. based on products (divisional ) 3. based on projects (project structure) 4. matrix structure 5. virtual structure 6. SBU structure

What is the difference between formal and informal organisation? Formal organisation represents rules, processes, line of communication and hierarchies which have been set up by the formal authority of the organisation (top management). Informal organisation evolves spontaneously out of the needs of people and is based on likings, choice, friendship, and mutual support.

Which is better – formal or informal? Both are necessary and both exist simultaneously formal organisation enables the usual workings , discipline, order and systems informal organisation fulfills the needs of people. Informal organisation has greater power (because it is based on the choice of people).

How should you recruit people ? Find out your requirements (from job analysis) and find our competencies in the employee and then find a match between these two.

What is job analysis? Finding each element relating to job is called job analysis. It has 2 outcomes : 1. job description 2. job specification

What is job description? Description = details when we write all the details related to the job, it is called job description. It describes how a person will perform job.

What is job specification? It is to specify minimum requirements from job holder. It lists down qualifications, skills experience expected from a job holder.

What is job design? Grouping various activities / tasks to be performed by the job holder is called job designing. It is carried out a very systematic process to find the best way to do a job. Here we look into various options and prepare one best way to do a job.

What are the principles of job designing ? How to make job more interesting, challenging, exciting for job holder? For this we have to undertake job designing very carefully. Job designing is carried out using a very systematic process.

What is job enrichment ? Enrich means to add the following with the job : 1. skill variety 2. task identity 3. task significance 4. autonomy 5. feedback thus by enriching, we can make any job more interesting and exciting.

What is manpower planning ? Planning for the future manpower is called manpower planning. Here we plan for the manpower requirements on the basis of our projections. We also plan for placement, training, development, promotions, transfers of our employees.

What is the difference between recruitment and selection? Recruitment is positive process, here we invite people to apply for our vecencies Selection is a negative process, here we reject the applications received during recruitment and finally select only those candidates who are fit as per our requirements.

What is the difference between training & development? Training means imparting technical skills development means imparting conceptual skills for overall development training gives outcome in a short period development gives outcome in a long term

What are the methods of performance appraisal? Performance appraisal means evaluating an employee on the basis of his performance on the job and guiding him for his improvement. It is a tool of HRD for development of employees. Methods are : 1. ranking 2. rating 3. forced choice method 4. 360 degree appraisal 5. critical incident method 6 MBO 7. forced distribution method

What is MBO? MBO= manaement by objectives here we try to manage employees on the basis of their objectives. Here we enable employees to set up their objectives and then to achieve their objectives. We undertake regular employee appraisal during the period and guide the employees so that they may improve their performance.

What is 360 degree appraisal method? When all the employees connected to the employee being appraised participate in appraisal, it is called 360 appraisal method. Here the employee is simultaneously appraised by his superiors, subordinates, colleagues and peers. Thus it is called 360 appraisal – because it makes a complete circle of appraisers (from top to the bottom).

What is plural executive? When a group of superiors supervise and take decision, it is clalled plural executive.

What do you understand from change management ? People resist change and they dont want to adopt change. People oppose change due to many factors like : 1. habit 2 past practices 3. fear of unknown 4. lack of confidence 5. peer pressure 6. lack of training and education changing people is not easy. Change management is the tool to implement change successfully in the organisation.

What is OD ? Long range systematic, planned, behavioural science based and comprehensive change management programme is called organisational development. The purpose of OD is to bring about changein organisational problem solving and renewal processes. OD uses behavioural science and takes help of action research.

What are steps in OD? Use action research to identify problems in the organisation. Feedback the data to the organisation so that it can improve itself. Plan out OD interventions for development of organisation implementation of OD interventions Action research to assess the situation again action planning and joint review

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Principles and practice of management

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