Principles of Management - Basics
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The document discusses the definitions, nature, and evolution of management thought. It defines management as both an art and a science according to different theorists. Management involves getting work done through others and includes planning, organizing, commanding, coordinating, and controlling. The theories and principles of management have developed over time through various schools of thought. The classical school focused on finding the most efficient ways to perform tasks in manufacturing. The behavioral school recognized the human element and that employees have needs that influence their work.
Principles of Management - Basics
- 2. Definition According to Harold Koontz, "Management is the art of getting things done through and with people in formally organised groups.“ According to Henri Fayol, "To manage is to forecast and to plan, to organise, to command, to co-ordinate and to control."
- 3. Management - Art According to Mary Parker,” management is an art of getting things done through others. Management enables a manager to get thongs done through employees.” • Management performs non programmed and non routine work using creativity and innovations • Management accomplishes any job within time and budget to achieve organizational goals with ease. • Managerial activities are practices by using knowledge, ability and skill to solve the problems.
- 4. Management - Art • Managers must posses practical knowledge not only theoretical acquired from experiences which helps in working according to situation • Managers apply their interest, ability and skills for solving contemporary issues through decisions which ignite their creativity. They can use their skills in field of job performance, solving exceptional issues, forming objectives etc.
- 5. Management - Science • Management as a science, it has systematized body of knowledge, concept and principles. Management deals different problems and issues by using quantitative models and decision making techniques and issues by using quantitative models and decision making techniques to arrive at right decisions. As a science management contains concepts, hypothesis, theories, experimentation all verified and tested accordingly to clarify about cause and effect relationship between many facts or events
- 6. Management - Science • Management is systematic body of knowledge with theories, concepts, principles, experiments and functions which are systematically and logically analyzed • The theories related to management are applicable and used in all types of organization irrespective of size, type, capital and so on. However, the usage and method may vary according to the situation of organization and time. • Management is not a pure science but a social science
- 7. Management - Science • All the managerial knowledge and practices are developed through various observations and experiments which are researched and experiment based • Tests of management theories are applied in situational and judgmental cases which help in prediction of future events. • Management relates itself to cause and effect relationship. Results of modern management are acceptable to all employees. Good and efficient management system enhances the purity in organization.
- 8. Management - Profession • Profession means occupation. Occupation is rendering service. Similarly management is a distinct profession backed up by specialization. As a professional activity all management efficient people should have academic qualification and personal qualification from any body. Here profession is not only an occupation of specialized skill but these skills should be applicable in large scale and interest of society as a whole. • Management is a separate discipline which includes research, observations and practice • Management requires formal education and training with updates of professionalism.
- 9. Management - Profession • Professional managers must be joined in an association that follow rules and regulation according to the objectives set. • A professional association requires code of conduct to maintain self discipline ethical behavior. Violation of code must be punishable • Organizations should be responsible towards society. An organization gets its birth in a society, lives and grows in a society and finally liquidates or dissolves in a society. Thu, an organization has responsibility towards members of society such as consumer, investors, employees and shareholders.
- 12. S.No. Bases of Difference Entrepreneur Manager 1 Motive The main motive of an entrepreneur is to start a venture by setting up an enterprise. He understands the venture for his personal gratification. The main motive of a manager is to render his services in an enterprise already set up by someone else i.e., entrepreneur. 2 Status An entrepreneur is the owner of the enterprise. A manager is the servant in the enterprise owned by the entrepreneur. 3 Risk Bearing An entrepreneur being the owner of the enterprise assumes all risks and uncertainty involved in running the enterprise. A manager as a servant does not bear any risk involved in the enterprise. 4 Rewards The reward an entrepreneur gets for bearing risks involved in the enterprise is profit which is highly uncertain. A manager gets salary as reward for the services rendered by him in the enterprise. Salary of a manager is certain and fixed. 5 Innovation Entrepreneur himself thinks over what and how to produce goods to meet the changing demands of the customers. Hence, he acts as an innovator also called a ‘change agent’ But, what a manager does is simply to execute the plans prepared by the entrepreneur. Thus, a manager simply translates the entrepreneur’s ideas into practice. 6 Qualification An entrepreneur needs to possess qualities and qualifications like high achievement motive, originality in thinking, foresight, risk -bearing ability and so on. On the contrary, a manager needs to possess distinct qualifications in terms of sound knowledge in management theory and practice.
- 15. Characteristics of Management Goal oriented process All - pervasive Multi - dimensional (Management of work, people, operations) Continuous process Group Activity Dynamic Function Intangible force
- 16. Difference between Administration and Management Basis of Distinction Administration Management Policy and Objectives Determines policy to be followed and decide the objectives to be achieved. Implements the policy and achieve the objectives Directing of human efforts Not directly involves in the execution of plan and achievement of objectives Directly involves in the execution of plan and achievement of objectives Main Functions Planning, Organizing and Staffing Directing, Motivation and Controling Levels of Executives Top level executives (Owners and Board of Directors) Middle and Lower Level Executives Position Acts as a Principal Acts as an Agency Knowledge Requires administrative ability more than Requires technical ability more than administrative
- 18. Role of Managers - Mintzberg
- 19. Time Line of Management Thought
- 21. Classical School Originated during England’s Industrial Revolution Manufacturers began mass-producing goods in factories; Textile industry was among the first Allowed production of standardized goods Depended on a constant flow of labor and materials Owners needed to plan, organize, lead, control Focused on finding the “one best way”
- 22. Classical School Classical Scientific School Classical Scientific School Focused on the manufacturing environment Classical Administrative School Classical Administrative School Emphasized the flow of information and how organizations should operate
- 23. Classical Scientific School Fre de rick W. Taylo r : The Father of Scientific Management • Pursued four key goals: • Develop a science of management • Select workers scientifically • Develop and train workers scientifically • Create cooperation between management and labor • Determined the quickest ways to perform tasks
- 24. Classical Scientific School He nry Gantt Invented the Gantt chart Moved away from authoritarian management Advocated a bonus system to reward workers Classical Scientific School Analyze everything Teach effective methods to others Constantly monitor workers Plan responsibly Control the work and the workers
- 25. Classical Administrative School He nri Fayo l Believed specific management skills could be learned and taught Fayol believed that the manager’s job could be divided into five functions, or areas, of managerial responsibility—planning, organizing, command, coordination, and control—that are essential to managerial success.
- 27. Classical Administrative School Mary Parke r Fo lle tt Focused on how organizations cope with conflict and the importance of sharing goals Emphasized the need to discover and enlist individual and group motivation The first principle for individual and group success is the “capacity for organized thinking”
- 28. Classical Administrative School Che ste r Barnard Argued that managers must gain acceptance for their authority Advocated the use of basic management principles Cautioned managers to issue no order that could not or would not be obeyed
- 29. Behavioral School Recognized employees as individuals with concrete, human needs, as parts of work groups, and as members of a larger society Ro be rt O we n : The father of modern personnel management The quality and quantity of workers’ output influenced by conditions on and off the job
- 30. Behavioral School Abraham Maslo w : Needs- based theory of motivation
- 31. Behavioral School Hawthorne Studies : Illumination studies Measured Light Intensity vs. Worker Output Result : Higher worker productivity and satisfaction at all light levels Conclusions: Light intensity has no conclusive effect on output Productivity has a psychological component
- 32. Behavioral School Hawthorne Studies : Relay assembly room study Manipulated factors of production to measure effect on output: Pay Incentives; Length of Work Day & Work Week; Use of Rest Periods; Company Sponsored Meals Results: Higher output and greater employee satisfaction Conclusions: Positive effects even with negative influences – workers’ output will increase as a response to attention Strong social bonds were created within the test group. Workers are influenced by need for recognition, security and sense of belonging
- 33. Behavioral School Hawthorne Studies : Bank wiring room study Limited changes to work conditions Segregated work area No Management Visits Supervision would remain the same Observer would record data only – no interaction with workers Small group pay incentive Result: No appreciable changes in output Conclusions: Preexisting performance norms Group dictated production standards - Systemic
- 34. Behavioral School Manag e rs disco ve r… What employees want from work How to enlist cooperation and commitment How to unleash talents, energy, and creativity
- 35. Quantitative School Emphasized mathematical approaches to management problems Examples of tools used in Operations Management : Inventory models Break-even analyses Production scheduling Production routing
- 36. Systems School The systems theory emphasizes that an organization comprises various parts that must perform tasks necessary for the survival and proper functioning of the system
- 37. Systems School Resources Men Materials Money Machinery Methods Information Managerial and Technological Abilities Planning Organizing Staffing Leading Coordinating Controlling Technology Goods Services Profits and losses Employee satisfaction Inputs Transformation process Outputs Feedback
- 38. Contingency School This theory is based on the premise that managers’ preferred actions or approaches depend on the variables of the situation they face
- 39. Quality School Quality Management is a management approach that directs the efforts of management towards bringing about continuous improvement in product and service quality to achieve higher levels of customer satisfaction and build customer loyalty. Its roots are in the behavioral, quantitative, systems, and contingency schools People are key to commitments and
- 40. Organizational Environment Internal Environment External Environment Direct Action Environment Indirect Action Environment
- 42. Managing Globally Global activities are simplified and encouraged by trade agreements among nations. As these trends and arrangements encourage international trade, they increase and change demands on human resource management. Organizations need employees who understand the customers and suppliers in foreign countries. Organizations need to understand the laws and customs that apply to employees in other countries.
- 43. Employees in an International Workforce Parent-countrynational – employee who was born and works in the country in which an organization’s headquarters is located. Host-countrynational – employee who is a citizen of the country (other than parent country) in which an organization operates a facility. Third-countrynational – employee who is a citizen of a country that is neither the parent country nor the host country of the employer.
- 44. Employers in the Global Marketplace International organization– an organization that sets up one or a few facilities in one or a few foreign countries. Multinational company– an organization that builds facilities in a number of different countries in an effort to minimize production and distribution costs. Global organization– an organization that chooses to locate a facility based on the ability to effectively, efficiently, and flexibly produce a product or service using cultural differences as an advantage.
- 45. Challenges faced - General Need for Vision Need for Ethics Need for Responsiveness to cultural diversity Globalization Emphasis on Technology Society Expectations
- 46. Challenges faced – Company issues Flexibility Family Friendly Conversion of permanent to temporary job Outsourcing Empowering employees