Principles of Management Overview

Management Definition

• Management is the process of planning, organizing, leading, and controlling people in an organization, to effectively use resources to meet goals.
• Two aspects of management:
  • People: People with responsibility and authority to determine the overall direction of the organization.
  • Process: Deciding on goals and defining them for the organization.

Scientific Management

• Scientific management focuses on knowing precisely what employees need to do and ensuring they accomplish it in the most efficient and economical way.
• Principles include:
  • Science, not rule of thumb
  • Harmony, not discord
  • Cooperation, not individualism
  • Development of workers to their greatest efficiency and prosperity

Functions of Management

• Planning
• Organizing
• Directing
• Coordinating
• Controlling

Principles of Management (Fayol's 14)

• Division of work
• Authority and responsibility
• Discipline
• Unity of command
• Unity of direction
• Subordination of individual interest to general interest
• Remuneration of personnel
• Degree of centralization
• Scalar chain
• Order
• Equity
• Stability of tenure of personnel
• Initiative
• Esprit de corps

Management Approaches

• Bureaucratic Approach: A system of controlling an organization by a large number of officials following clearly defined rules.
• Humanistic Approach: Focuses on people relations as crucial for employee productivity.
• Managerial Thoughts (Classical): Focuses on developing universal principles for various management situations.
• Managerial Thoughts (Behavioral): Focuses on human needs, work groups, and social factors in the workplace.
• Managerial Thoughts (Quantitative/Systems): Utilizing mathematical techniques for management problem-solving.
• Managerial Thoughts (Modern): Focusing on total systems, contingency thinking, and global developments in management.

Types of Managers

• Top Managers: CEO, COO, CFO, etc.; responsible for overall organizational competitiveness and job security for lower-level employees and managers.
• Middle Managers: Plant managers, divisional managers, etc.; responsible for strategy implementation, subunit performance, external and internal coordination.
• First-Line Managers/Team Leaders: Office manager, shift supervisor, etc.; involved in scheduling, training, facilitating, supervision of non-managerial staff.

Organizational Behavior

• Study of human behavior in organizational settings, the interface with the organization, and the organization itself.
• Can be categorized as individual behavior, work group behavior, and organizational behavior.
• Motivational Theories: Focus on why people act, looking at internal factors like needs and desires.
• Behavioral Theories: Focus on how people act, looking at external factors.

The Employment Process

• Application Process, Assessment & Application Review, Interview Process, Job offer & Employment Process, Orientation/Onboarding.

Performance Management

• Model: Performance Excellence: A key integrated management system (IMS) for creating cohesiveness in quality, safety, environment and social & ethical responsibility.
• Why it's important: Ensures alignment with strategic goals, drives continuous improvement, enhances decision-making, improves environmental compliance and engagement, measures compliance & risk management, employee accountability & engagement.

Performance Appraisal

• Methods: critical incident, behavioral anchored rating scales (BARS).

Discipline

• Written warning, suspension, dismissal

Performance Management Cycle

• Planning: Set goals and define SMART metrics
• Management by Objectives (MBO): A process where a manager and subordinate jointly set goals for a period within a set time frame.
• Delegation: The process of assigning work to others.

Monitoring, Reviewing & Rewarding

• Monitoring: tracking progress, mitigating obstacles using KPIs.
• Reviewing: Evaluating the process and outcomes using KPIs.
• Rewarding: Recognizing good performance.

Key Performance Indicators (KPIs)

• Measurable indicators to evaluate progress towards specific organizational goals.
• Differentiate from SMART goals (SMART goals provide direction).

Feedback

• Dialogue between colleagues regarding performance.
• Ways to give: Micro-yes questions to prepare the recipient, describe the behavior, stating the impact of the behavior.