1.A Global and Entrepreneurial Perspective MANAGEMENT

2. PRINCIPLES OF MANAGEMENT Sr. No. Chapter No. Chapter Heading 1 1 Management: Science, Theory and Practice (27th September 2010) 2 4 Essentials of Planning and Managing by Objectives 3 5 Strategies, Policies and Planning Premises 4 6 Decision Making 5 7 The Nature of Organizing, Entrepreneuring, and Reengineering 6 8 Organization Structure: Departmentation 7 9 Line/ Staff Authority, Empowerment and Decentralization 8 10 Effective Organizing and Organization Culture 9 14 Human Factors and Motivation 10 15 Leadership 11 16 Committees, Teams and Group Decision Making 12 18 The System and Process of Controlling Sessional Evaluation External Evaluation 15 15 20 50 50 Quiz per Class Assignment & Presentation Mid-term Total Sessional External Exam 3. Chapter 1 Management: Science, Theory and Practice 4. TABLE OF CONTENTS 1. Definition of Management: Its nature and purpose 2. Managing: Science or Art 3. The Evolution of Management Theory 4. Patterns of Management Analysis: A management Theory Jungle 5. The Systems approach to management process 6. The functions of Managers 5. 1. Definition of Management Management is the process of designing and maintaining an environment in which individuals working together in groups, efficiently accomplish selected aims. Organization is a group of people working together to create a surplus. In business organizations, this surplus is profit, other wise it may be satisfaction of needs etc 6. Steve Jobs At Apple Bill Ford Jr at Ford Motors Jack Welch at GE Bill Gates at Microsoft Obama , US 7. Functions of Management 8. External Elements that affect operations: economic, Technological, social, ecological, political and ethical factors Enterprise: A business, government agency, hospital, university or any other type of organization Managerial Functions at Different organizational levels: Managerial functions are performed by managers, executives, administrators, supervisors etc in their specific roles but the time spent in performing these functions is different at different levels, as shown in the picture Managerial Skills at Different Organizational levels: Four Managerial skills may be listed down; Technical, Human, Conceptual and Design Skills. These skills are critical for the managers at different levels As shown in the picture, higher the level, higher is the importance of Conceptual skills and like wise 9. PRODUCTIVITY, EFFECTIVENESS AND EFFICIENCY PRODUCTIVITY: The output- input ratio within a time period with due consideration for quality Productivity = Outputs/ Inputs (within a time period, quality considered) Inputs are Labor, material and capital EFFECTIVENESS: It is the achievement of objectives EFFICIENCY: Achievement of the ends with the least amount of resources 10. 2. MANAGING: SCIENCE OR ART Managing as practice is an art; the organized knowledge underlying is a science 11. 3. EVOLUTION OF MANAGEMENT THOUGHT 1. Frederick Taylor and Scientific Management 2. Henri Fayol, The father of Modern Management Theory 3. Elton Mayo and F.J. Roethlisberger and the Hawthorne Studies 12. Frederick Taylor and Scientific Management Taylors principles of scientific management were published in 1911. These were: Replacing rule of thumb with science (organized knowledge) Obtaining harmony, rather than discord, in group action Achieving cooperation of human beings rather than chaotic individualism Working for maximum output, rather than restricted output Developing all workers to the fullest extent possible for their own and their companys highest prosperity 13. HENRY FAYOL, THE FATHER OF MODERN MANAGEMENT THEORY Henri Fayol, the father of modern management theory, gave 14 principles of management, noting that they are flexible and usable in all organizational settings, some are as follows: Authority and Responsibility Unity of Command Scalar chain Espirit de corps (in union is strength) 14. ELTON MAYO & F.J. ROETHLISBERGER AND THE HAWTHORNE STUDIES Hawthorne studies were conducted to understand the effect of light and other factors on workers and productivity. After Mayo continuing the experiments realized that changing illumination for the test group, modifying rest periods, shortening workdays and varying incentive pay systems did not have a direct impact on productivity He found in general, the change in productivity was due to social factors such as; morale, satisfactory interrelationships and effective management. Interpersonal skills such as motivating, counseling, leading and communicating were the majors factors which played part in improving productivity. The phenomenon of being noticed has been named as Hawthorne Studies 15. 4. PATTERNS OF MANAGEMENT ANALYSIS: A MANAGEMENT THEORY JUNGLE The management roles approach The management process, or operational approach 16. THE MANAGERIAL ROLES APPROACH Given by Henry Mintzberg of McGill University He explained that the managers have 10 roles which may be categorized as follows: Interpersonal Roles: The figurehead role (the representative) The leader role The liaison role (with outsiders) Informational Roles The recipient role (receiving info from outside) The disseminator role (passing info) The spokesperson role (transmitting info outside the org) Decision Roles: The entrepreneurial role The disturbance-handler role The resource allocator role The negotiator role 17. THE MANAGERIAL ROLES APPROACH Criticism on Mintzberg: The sample containing five CEOs was far too small for the study Managers do some tasks other than managerial tasks like relationship building etc Most of the activities are directly related to the primary managerial functions themselves 18. THE MANAGEMENT PROCESS, OR OPERATIONAL APPROACH The management process or operational, approach draws together the pertinent knowledge of management by relating it to the managerial job. 19. The systems approach to the management process The enterprise receives inputs, transforms them and exports the outputs to the environment INPUTS TRANSFORMATION PROCESS Outputs Re-energizing the System External Environment 20. Managerial Knowledge, Goals of claimants, and use of Inputs Planning Organizing Staffing Leading Controlling To produce Outputs CommunicationRe-energizing the System Goal Inputs: Employees, Consumers, Suppliers, Stock holders, Governments, Community etc Inputs: Human, Capital, Managerial, Technological Outputs: Products, Services, Profits, Satisfaction, Goal Integration, Others External Variables and Information: Opportunities, Constraints and others 21. INPUTS AND CLAIMANTS: Inputs are people, capital, managerial skills, technical knowledge and skills THE MANAGERIAL TRANSFORMATIONAL PROCESS: The task of managers is to transform the inputs, in an effective and efficient manner into outputs THE COMMUNICATION SYSTEM: It integrates the managerial functions Effective leadership and motivation in the employees could only be gained by communication It helps in corrective measures after identification of errors through communication It also links the enterprise with the external environment It helps in identification of customer needs It helps awareness of the competition and other potential threats 22. EXTERNAL VARIABLES: OUTPUTS Products, services, profits, satisfaction, integration of the goals of claimants to the organization REENERGIZING THE SYSTEM The transformation of output into the inputs such as knowledge or skills, profits, capital goods etc 23. THE FUNCTIONS OF MANAGERS PLANNING Selecting missions and objectives as well as the actions to achieve them, which requires decision making ORGANIZING Establishing an intentional structure of roles for people to fill in an organization STAFFING Filling, and keeping filled, the positions in the organization structure LEADING Influencing people so that they will contribute to organizational and group goals CONTROLLING Measuring and correcting individual and organizational performance to ensure that events conform to plans COORDINATING It is the essence of managership, for achieving harmony among individuals efforts towards the accomplishment of group goals