Principles and Practices of Management PDF

Principles and Practices of Management (Unit 1) Introduction 🠶 Management is coordination of resources through the process of planning, organizing, directing and controlling in order to attain some objective 🠶 Management is getting things done with effectiveness and efficiency....

Principles and Practices of Management (Unit 1) Introduction 🠶 Management is coordination of resources through the process of planning, organizing, directing and controlling in order to attain some objective 🠶 Management is getting things done with effectiveness and efficiency. It is designing and maintaining an environment in which individuals working together accomplish selected aims efficiently. 🠶 The task of getting results through others by coordinating their efforts is known as management. Definition of management Management is the coordination of all resources through the process of planning, organising, directing and controlling in order to attain stated objectives. —Henry L. Sisk. Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way —F.W. Taylor To manage is to forecast and to plan, to organize, to command, to coordinate and to control—Henry Fayol Management is a multipurpose organ that manage a business and manages Managers and manages Workers and work —Peter Drucker OBJECTIVES OF MANAGEMENT (i) Organisational objectives: (a) Reasonable profits so as to give a fair return on the capital invested in business (b) Survival of the business, i.e., continuity. (c) Growth and expansion of the enterprise (d) Improving the goodwill or reputation of the enterprise. ii) Personal objectives: (a) Fair remuneration for work performed (b) Reasonable working conditions (c) Opportunities for training and development (d) Participation in management and prosperity of the enterprise (e) Reasonable security of service. iii) Social objectives: (a) Quality of goods and services at fair price to consumers. (b) Honest and prompt payment of taxes to the Government. (c) Conservation of environment and natural resources. (d) Fair dealings with suppliers, dealers and competitors. (e) Preservation of ethical values of the society. Functional Foremanship Functional foremanship is an administration of the factory system that supports for possessing numerous foremen in separate and variant functional roles. In earlier days, factories had just one total manager who would manage the entire operations. This manager or the foreman was the only point of contact for factory employees. It is impossible for a single worker to be master in each and every aspect of production. Therefore he insisted that eight persons should be performing the duties of a foreman and this kind of work came to be known as functional foremanship. The following roles were included in this kind of job: 1. Instruction Card Clerk: This instructor gives instructions to workers regarding their work. 2. Route Clerk: His role was to mention the route of production 3. Time and Cost Clerk: His role was to arrange the time and costs sheet 4. Disciplinarian: His role was to maintain discipline in the production facility and in the factory These four role comes under the planning supervisor The other four persons who work under the production supervisor are 1. Speed Boss: Maintain the time record for the job assigned to the worker. Checks if the job is completed timely. 2. Gang Boss: The main responsibility of this person is to arrange materials, machines and tools so they’re always ready for the workers who will be using them. 3. Repair boss: He takes the responsibility to keep machines and tools in proper working condition. 4. Inspector: The responsibility of quality of work is taken care by this inspector. Mental Revolution The basic idea behind the principles of scientific management is to change the mindset or attitudes of the workers and the management towards each other Without the revolutionary change in attitudes of the workers and the management, it is not possible to implement scientific management. Taylor called upon the management and the workers to cooperate with each other to attain maximum output. Mental revolution has three implications: 1. All efforts for increase in production; 2. Creation of the spirit of mutual trust and confidence; and 3. Developing the scientific attitude towards all problems. 1. Division of Work 🠶 Segregating work in the workforce amongst the workers will enhance the quality of the product. 🠶 Division of work improves the productivity, efficiency, accuracy and speed of the workers. 🠶 This principle is appropriate for both the managerial as well as a technical work level. 2. Authority and Responsibility 🠶 These are the two key aspects of management. 🠶 Authority facilitates the management to work efficiently, and responsibility makes them responsible for the work done under their guidance or leadership. 3. Discipline 🠶 It is the core value for any project or any management. 🠶 Good performance and sensible interrelation make the management job easy and comprehensive. 🠶 Employees’ good behaviour also helps them smoothly build and progress in their professional careers. 4. Unity of Command This means an employee should have only one boss and follow his command. If an employee has to follow more than one boss, there begins a conflict of interest and can create confusion. 5. Unity of Direction 🠶 Whoever is engaged in the same activity should have a unified goal. 🠶 This means all the people working in a company should have one goal and motive which will make the work easier and achieve the set goal easily. 6. Subordination of Individual Interest 🠶 This indicates a company should work unitedly towards the interest of a company rather than personal interest. 🠶 Be subordinate to the purposes of an organisation. 7. Remuneration 🠶 This plays an important role in motivating the workers of a company. Remuneration can be monetary or non-monetary. 🠶 Ideally, it should be according to an individual’s efforts they have put forth. 8. Centralization 🠶 The concentration of decision-making authority is called centralization whereas its dispersal amongst a group is known as decentralization. 🠶 According to Fayol, there is a need to balance subordinate involvement through decentralization with managers' retention of final authority through centralization. 9. Scalar Chain 🠶 Communication is a crucial aspect of any organisation and the principle of scalar chain revolves around the flow of communication from management to the lowest rank in the company. 🠶 Scalar chain is a chain of all supervisors from the top management to the person working in the lowest rank. 🠶 The communication has to flow in an order for it to be effective. Scale chain identifies that path. 10. Order 🠶 The principle of order means that in the organization everything should be in the right place whether it is materials or people (employees). 🠶 This principle is crucial for reducing the wastage of time and resources. 🠶 A manager should maintain the right place to keep all the components of the organization systematically. 🠶 The proper order promotes effectiveness and facilitates smooth functioning. 11. Equity All employees should be treated equally and respectfully. It’s the responsibility of a manager that no employees face discrimination. 12. Stability 🠶 An employee delivers the best if they feel secure in their job. 🠶 It is the duty of the management to offer job security to their employees. 13. Initiative 🠶 The management should support and encourage the employees to take initiatives in an organisation. 🠶 It will help them to increase their motivation and morale. 14. Esprit de Corps 🠶 It is the responsibility of the management to motivate their employees and be supportive of each other regularly. 🠶 Developing trust and mutual understanding will lead to a positive outcome and work environment. Bureaucratic Theory by Max Weber 🠶 Max Weber, a German scientist, defines bureaucracy as a highly structured, formalized, and also an impersonal organization 🠶 Belief that an organization must have a defined hierarchical structure and clear rules, regulations, and lines of authority which govern it. Max Weber bureaucracy ideally has the following characteristics: 1. Specialization of labor 2. A formal set of rules and regulations 3. Well-defined hierarchy within the organization 4. Impersonality in rules and regulations Contribution of Dr. Peter Drucker Management By Objective (M.B.O.) : i) Most important contribution ii) Introduced in 1954, Includes – a) Methods of Planning b) Setting Standards, c) Performance Appraisal, d) Motivation. Management By Objectives (MBO) Definition : “MBO is a result-centred, non-specialist, operational managerial process for the effective utilisation of material, physical and human resources of the organisation by integrating the individual with the organisation and the organisation with the environment.” Management By Objectives (MBO) Features : 1. An approach & philosophy to management and not just a technique, 2. Related with all other management techniques, 3. Emphasis on objectives, 4. Periodic review of performance, 5. Provides guidelines for appropriate systems & procedures. Management By Objectives (MBO) Management By Objectives (MBO) In MBO goals are expected to be SMART, i.e. 1. Specific 2. Measurable 3. Achievable 4. Realistic, and 5. Time bound.