Principles and Practices of Management PDF - UBA24101T - SRM Institute

UBA24101T Principles and Practices of Management BBA- I Semester Presented By: Dr. Sanjay Kumar Singh Faculty of Management Studies SRM Institute o...

UBA24101T Principles and Practices of Management BBA- I Semester Presented By: Dr. Sanjay Kumar Singh Faculty of Management Studies SRM Institute of Science and Technology Uttar Pradesh  Unit-1 Learning Objectives: 1.1 -Understand the meaning, concept and definition of Management. 1.2 -Understand Characteristics and Importance of Management. 1.3- Role of Manager 1.4 – Functions of Management  Few Definitions of Management “Art of getting things done through people.” Mary Parker Follett “To manage is to forecast and to plan, to organise, to command, to co-ordinate and to control”. Henry Fayol “Consisting of planning, organizing, actuating and controlling, performed to determine and accomplish the objectives by the use of people and resources.” George R. Terry  Few Definitions of Management Peter F Drucker, “Management is a multi-purpose organ that manages a business and manages managers and manages worker and work”. Koontz and O’Donnel, “Management is defined as the creation and maintenance of an internal environment in an enterprise where individuals working together in groups can perform efficiently and effectively towards the attainment of group goals”.  Few Definitions of Management E.F.L. Brech, “Management is a social process entailing responsibility for the effective and economical planning and regulation of the operations of an enterprise, in fulfilment of a given purpose or task, such responsibility involving: 1. judgement and decision in determining plans and in using data to control performance, and progress against plans; and 2. the guidance, integration, motivation and supervision of the personnel composing the enterprise and carrying out its operations”. “Management” is: ❖ A technique of extracting work from others in an integrated and co-ordinated manner for realising the specific objectives through productive use of material resources. ❖ Mobilising the physical, human and financial resources and planning their utilisation for business operations in such a manner as to reach the defined goals. ❖ A distinct ongoing process of allocating inputs of an organisation (human and economic resources) by typical managerial functions (planning, organising, directing and controlling) for the purpose of achieving stated objectives namely – output of goods and services desired by its customers (environment). ❖ A process for work preformance with and through personnel of the organisation in an ever-changing business environment.  Concept of Management Illustration- Family considering vacation plans. ► Management As People- ▪ Authority and responsibility ▪ material resources and intellectual resources ▪ Accomplishment of organisation goal ► Management As Process applying and distributing organizational resources effectively acquiring new resources when necessary analyzing and adapting to the ever-changing environment in which the organization operates complying with legal, ethical, and social responsibilities of the community developing relationships with and among people to execute the strategies and plans  Managerial Functions 8 Plannin g Representin Organizin g g MANAGEMENT FUNCTIONS Innovatin Directin g g Controllin g The process of Management Importance of Management Highlights in the following points: ❖ 1. Determination of the objectives of an organisation. ❖ 2. Accomplishment of the goals of an organisation through integration of human and non-human resources. ❖ 3. Effective utilization of resources of an organisation. ❖ 4. The brain of an enterprise- decisions are taken, policies are formulated. It provides foresight ❖ 5. Economic and social development.  Characteristics of Management 1. Economic Resource: Force which assembles and integrates other factors of production, namely, labour, capital and materials. 2. Goal Oriented: A purposeful activity to achieve the goals of the organisation. 3. Distinct Process: Functions as planning, organising, staffing, directing, and controlling, so interwoven that it is not possible to lay down exactly the sequence of various functions or their relative significance. 4. Integrative Force: Integration of human and other resources. Harmonising the individuals goals with the organisational goals. 5. Intangible Force: Unseen force, evidenced by the result of its efforts – orderliness, informed employees, buoyant spirit and adequate work output.  Characteristics ……… 6. Results through Others: Necessary ability and skills to get work accomplished through the efforts of others. 7. A Science and an Art: Organised body of knowledge- concepts, principles and techniques which have wide applications. The application of concepts, principles and techniques requires specialized knowledge and skills acquired by a manager are his personal possession, experience. 8. Management is a universal activity: Applicable to business undertakings, political, social, religious and educational institutions. Management is necessary when group effort is required. 9. Management is a group activity: Group activity towards a common objective. Concerned with group efforts and not individual efforts to achieve the goals of an organisation – management plans, organises, co-ordinates, directs and controls the group effort.  Characteristics ……… 10. Management is a system of authority: Authority means power to make others act in a predetermined manner. Set of rules and procedure to be followed by the subordinates. Process of directing men to perform a task, authority to extract the work from others. 11. Management involves decision-making: Management implies making decisions regarding the organisation and operation of business in its different dimensions. The success or failure of an organisation can be judged by the quality of decisions taken by the managers. 12. Management implies good leadership: Ability to lead and get the desired course of action from the subordinates; the capacity to influence the behaviour of their subordinates. 13. Management is dynamic and not static: Act according to changes in business environment. 14. Management draws ideas and concepts from various disciplines: An interdisciplinary study. Ideas and concepts from economics, statistics, mathematics, psychology, sociology, anthropology etc.  Functions of Management- Planning ❖ It is a mental process requiring the use of intellectual faculties, foresight, imagination and sound judgment. ❖ Three important aspects of planning are forecasting, decision making and problem solving. ❖ It decides in advance what to do, how, to do, when to do and who is to do it. ❖ The planning process involves the following steps: a. Determination of the goal or mission of the organisation. b. Forecasting the future based on past and present activities. c. Selection of best course of action from different alternatives and formulation of plans. d. Formulation of policies, procedures, budgets etc., to achieve the objectives. e. Determining the actual performance.  Functions of Management- Organising Organising establishes harmonious relationships among the members of an organisation by providing them with adequate authority and responsibility. It clearly specifies the task of each individual and the extent to which he can carry it out. According to Louis A. Allen, “organisation involves identification and grouping the activities to be performed and dividing them among the individuals and creating authority and responsibility relationships among them for the accomplishment of organisational objectives”. Organisation process involves the following steps: a. Identification and analysis of activities required for the achievement of objectives; b. Grouping of activities according to the requirement of the organisation; c. Assignment of duties to the individuals concerned; d. Delegating authority to the subordinates and thereby fixing responsibility for performance; and e. Establishing proper authority relationship throughout the organisation.  Functions of Management- Staffing Staffing is manpower management, to put the right man in the right job. It has four important elements: 1. Recruitment may be defined as the process of attracting the maximum number of applications for a particular job. 2. Selection is the process of screening the candidates and choosing the best ones out of them. 3. Training involves imparting the necessary knowledge and skills required for the performance of a particular job. 4. Compensation is the price paid to the workers for the services rendered to the organisation.  Functions of Management- Directing A function of management, related with instructing, guiding and inspiring the human factor in an organisation to achieve its objectives. Not only orders and instructions with those activities which deal with guiding, supervising, influencing and motivating the subordinates in their jobs. Through direction, management initiates action-people must be directed towards organisational goals. This work involves four important elements: (a) Leadership: The process of influencing the actions of a person or a group to attain desired objectives. (b) Motivation: To inspire, encourage and impel people to take required action. It is the process of stimulating people to take desired courses of action. (c) Communication: Communication is the transfer of information and understanding from one person to another. It is a way of reaching others with ideas, facts, and thoughts. (d) Supervision: To watch and control the activities of the subordinates. Supervision is seeing that subordinates do their work and do it as directed. It involves overseeing employees at work.  Functions of Management- Controlling A function of management deals with checking and verifying the activities that have been performed against the pre-determined standards. Controlling helps to take corrective action if the results do not conform to plans already established. According to Henri Fayol, control consists in verifying whether everything occurs in conformity with the plans adopted instructions issued and principles established. The following are the steps involved in the controlling process: a. Establishment of standards b. Measurement of actual performance c. Comparison of actual performance against the standards established d. Determining the reasons for deviation e. Taking corrective action f. Feedback in order to determine actual performance  Functions of Management- Coordination It ensures unity of action. Though some management experts consider coordination as a separate function of management, it is more appropriate to say that coordination is the essence of management. It is one word that best suggests the sum total of all managerial functions and that it is not one of its functions. Coordination is otherwise termed as the manager’s functions. Coordination is the orderly arrangement of group effort, to provide unity of action in the pursuit of a common purpose. 3 Monks https://youtu.be/Z802JqJ2A7A?si=yZ6mf2-u0M3c0EKu https://082kshiprachowdharyim21.wordpress.com/2014/07/19/three-monkss-story-lessons-for- managers/ Organizational Functions and Management Functions  Managerial Skills 23 A skill is an individual’s ability to perform physical or mental tasks with a specified outcome. Three major skills: i. Conceptual Skill ii. Human Relations Skill iii. Technical Skill Skill-mix at Different Management Levels Katz-managerial Skills and Level of Management Time spent on Managerial Functions Management Skills ► Technical skill: Ability to use the tools, procedures or techniques of a specialized field. For instance, the success of a drilling supervisor of an oil rig depends a great deal on his technical knowledge of drilling. ► 2. Human skill: Ability to work with, understand and motivate other people. This skill is essential at every level of management within the organisation, but it is particularly important at lower levels of management where the supervisor has frequent contact with operating personnel. ► 3. Conceptual skill: It is the mental ability to coordinate and integrate the organisation’s interests and activities. It refers to the ability to see the ‘big picture’, to understand how a change in any given part can affect the whole organisation.  Management 26 A Science or an Art ? Management involves both elements—those of a science and an art. While certain aspects of management make it a science, certain others which involve application of skill make it an art. Managing as practice is an art; the organized knowledge underlying the practice may be referred to as a science.  ART SCIENCE ❖ Personal skill and practical knowledge - ❖ Systematized body of knowledge including dealing with people concepts, theories and principles that are ❖ Creative in nature-moulding and welding the universally applicable activities and behaviour of people. ❖ Based on scientific enquiry- gathered by ❖ Desired and concrete results -Application of experiment and observation, critically tested certain skills and practical knowledge ❖ Establish cause-effect relationship between ❖ Clearly prescribes how an activity can be different variables performed and how it could be improved ❖ Principles should be verifiable through constant practice-Continuous practice ❖ Reliable basis for predicting future results of management helps in the efficient accomplishment of organisational goals.  Roles of a Senior Manager Interpersonal Roles Figurehead Leader Liaison Informational Roles Monitor Disseminator Spokesman Decisional Roles Entrepreneur Disturbance Handler Resource Allocator Negotiator Role of Manager