Management Principles PDF

CHAPTER 2  r ni ng Lea 1 Goals Definition of Management 2 Functions of Management 3 Theory of Management  What is Management? - a distinct process of planning, organizing, staffing, directing, and controlling (POSDICON), performed to determine and accomp...

CHAPTER 2  r ni ng Lea 1 Goals Definition of Management 2 Functions of Management 3 Theory of Management  What is Management? - a distinct process of planning, organizing, staffing, directing, and controlling (POSDICON), performed to determine and accomplish stated objectives by the use of human being and other business resources. 6 M’s (Basic Resources) - Men - Machines - Money - Methods - Materials - Market  Management Functions * Planning * Organizing * Staffing * Directing * Controlling  Universally Accepted Functions of Management  Planning-formulation of objectives, programs, policies, procedures, rules & regulations in order to achieve the goals of the business.  Organizing-the grouping together of people, establishing relationship among them to attain the organizational goals & objectives through its resources.  Staffing – maintaining workforce of the organization.  Universally Accepted Functions of Management  Directing- managing & leading the organization  Controlling-monitoring the activities of the organization to assure conformity to plans.  Management Art: - Its is the result of the accomplishment of objectives through the use of human efforts. - It requires skill and careful study in the mgt. of any endeavour. Science - A systematic body of knowledge - It gathers & analyzes facts and formulates general laws/principles from facts  Management 4 School of thoughts or Theories 1. The Classical or Traditional 2. The Human Relations 3. The Management Science or Quantitative School 4. Modern Management  Management 4 School of thoughts or Theories 1. The Classical or Traditional 2. The Human Relations 3. The Management Science or Quantitative School 4. Modern Management  Scientific Management Frederick Taylor - author of the book entitled “Principle of Scientific Management” - father of time study  Scientific Management Taylor’s 4 Principles - Develop a science for each element of a man’s work, to replace the old rule – of – thumb method. - Scientifically select and train the worker. - Heartily Cooperate with the men to ensure that all the work is in accordance with the principles of the science develop for the work. - Divide the work and the responsibility equally between management and the worker. The Gilbreths & Motion Study - Frank and Lilian Gilbreths emphasized the ideal motions required to perform a job in an optional fashion. - Gilbreths developed the concept of therblig (gilbreth spelled backward- transposition of H & T); therblig - an elemental hand or arm motion. Human Relations School – Elton Mayo It emphasizes the importance of human element in the workplace. Hawthorne Studies – illumination factor and productivity It put too much emphasis on the human aspect in the organization.  Management Science or Quantitative School of thoughttechniques and The use of quantitative methods in decision making. Quantitative tools: Waiting line/queuing theory, linear programming, program evaluation review technique (PERT), critical path method (CPM), Monte Carlo method, decision theory, simulation theory, probability theory etc.  Modern Management Levels of Modern Management: 1. Top management 2. Middle management 3. Supervisory management  Roles Performed by Managers Interpersonal: This role involves human interaction Informational: This role involves the sharing and analyzing of information. Decisional: This role involves decision making.  Mintzberg’s Set of Ten Roles Category Role Activity Figurehead Perform ceremonial and symbolic duties, such as greeting visitors and signing legal documents. Leader Direct and motivate subordinates; counsel and Interperson communicate with subordinates. al Liaison Maintain information links both inside and outside organization via mail, phone calls, and meetings Entrepreneu Initiate improvement projects; identify new ideas r and delegate idea responsibility to others. Disturbance Take corrective action during disputes or crises; Handler resolve conflicts among subordinates; adapt to Decisional environments. Resource Decide who gets resources; prepare budgets; set Allocator schedules and determine priorities. Negotiator Represent department during negotiations of union contracts, sales, purchases, and budgets.  Mintzberg’s Set of Ten Roles Category Role Activity Informatio Monitor Seek and receive information; scan periodicals nal and reports; maintain personal contact with stakeholders. Disseminato Forward information to organization members via r memos, reports, and phone calls. Spokespers Transmit information to outsiders via reports, on memos, and speeches. Source: Benowitz, E. (2001). Principles of Management. USA. Hungry Minds  Skills Needed by Managers Skills Description This skill requires the ability to use a special proficiency or expertise to perform particular tasks Technical Managers acquire these skills initially through formal education and then further develop them through training and job experience. Technical skills are most important at lower levels of management. This skill demonstrates the ability to work well in cooperation with others Human skills emerge in the workplace as a spirit of trust, enthusiasm, and genuine involvement in interpersonal Human relationships. A manager with good human skills has a high degree of self- awareness and a capacity to understand or empathize with the feelings of others No matter how human skills are acquired, they’re critical for all managers because of the highly interpersonal nature of managerial work.  Skills Needed by Managers Skills Description This skill calls for the ability to think analytically. Analytical skills enable managers to break down problems into smaller Conceptual parts, to see the relations among the parts, and to recognize the implications of any one problem for others. The higher the management level, the more important conceptual skills become. As managers assume ever higher responsibilities in organizations, they must deal with more ambiguous problems that have long-term consequences Source: Benowitz, E. (2001). Principles of Management. USA. Hungry Minds  Helping you out! Following are some of the skills and personal characteristics that the American Assembly of Collegiate Schools of Business (AACSB) is urging business schools to help their students develop. Leadership — ability to influence others to perform tasks Self-objectivity — ability to evaluate yourself realistically Analytic thinking — ability to interpret and explain patterns in information Behavioral flexibility —ability to modify personal behavior to react objectively rather than subjectively to accomplish organizational goals. Oral communication — ability to express ideas clearly in words Written communication — ability to express ideas clearly in writing Personal impact — ability to create a good impression and instill confidence Resistance to stress —ability to perform under stressful conditions Tolerance for uncertainty — ability to perform in ambiguous situations Dispelling Myths Myths Reality The manager is a reflective, The average manager is methodical planner. swamped by trivialities and crises and spends only nine minutes or so on any activity. The effective manager has no Managers attend upper regular duties to perform. management meetings, meet regularly with employees, coworkers, and potential clients, and absorb and process information on a continued basis. The manager’s job is a science. Managers rely heavily on interaction and judgment. Managers are self-starters, self- Good managers are self- directed, and autonomous. managing: They accept autonomy, while seeking input from supervisors. Good managers seek out the Managers don’t always have Dispelling Myths Myths Reality Competition among managers is Collaboration (the pooling of good for business. resources) and cooperation (working together) among managers creates a better business. Today, the concepts of TQM indicate that organizations function better if resources and knowledge are shared and individuals work together as a team. Source: Benowitz, E. (2001). Principles of Management. USA. Hungry Minds Importance of Good Management It helps - It arranges the factors of Achieving production, assembles and Group Goals organizes the resources, integrates the resources in effective manner to achieve goals. - Management converts disorganized resources of men, machines, money etc. into useful enterprise. These resources are coordinated, directed and controlled in such Importance of Good Management Optimum - Management provides Utilization of maximum utilization of scarce Resources resources by selecting its best possible alternate use in industry from out of various uses. It makes use of experts, professional and these services leads to use of their skills, knowledge, and proper utilization and avoids wastage. - Management utilizes all the physical & human resources Importance of Good Management Reduces - It gets maximum results Costs through minimum input by proper planning and by using minimum input & getting maximum output. Management uses physical, human and financial resources in such a manner which results in best combination. This helps in cost reduction. Importance of Good Management Establishes - No overlapping of efforts Sound (smooth and coordinated Organization functions). To establish sound organizational structure is one of the objective of management which is in tune with objective of organization and for fulfillment of this, it establishes effective authority & responsibility relationship i.e. who is accountable to whom, who can give Importance of Good Management Establishes - It enables the organization to Equilibrium survive in changing environment. It keeps in touch with the changing environment. With the change is external environment, the initial co-ordination of organization must be changed. So it adapts organization to changing demand of market / changing needs of societies. It is responsible for growth and Importance of Good Management Essentials for - Efficient management leads to better Prosperity of economical production which helps Society in turn to increase the welfare of people. Good management makes a difficult task easier by avoiding wastage of scarce resource. It increases the profit which is beneficial to business and society will get maximum output at minimum cost by creating employment opportunities which generate income in hands. Organization comes with new products and researches beneficial for society.