MCA 109PRINCIPLES AND PRACTICES

OF MANAGEMENT

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CONCEPT OF MANAGEMENT Traditional Concept: Management is an art

of getting things done from others.Traditional Concept: Criticism

1. No specific work of managers is defined.2. It may be manipulative character of the

practice of management.3. Employees are merely treated as means for

getting results.4. The need of the workers have been ignored.

They are supposed to work like machine.

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Modern Concept: Management is a process of accomplishing certain objectives through the utilization of human and other resources.

Management is the process of getting things done with the aim of achieving organizational objectives effectively and efficiently.

The basic elements are:1. It is a process2. Effectiveness is described as doing activities that will help the

organization reach its goals (doing the right things). It is a measure of the appropriateness of the goals chosen and the degree to which they are achieved.

3. Efficiency refers to getting the most output from the least amount of inputs (doing things right). Is a measure of how well resources are used to achieve a goal.

4. Organizational goals

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MANAGEMENT AS PROCESS A process can simply be defined as

systematic method of handling activities.

As a process, management is a set of activities (including planning and decision making, organizing, leading, and controlling) directed at an organizations resources (human, financial, physical, and information) with the aim of achieving organizational goals in an efficient and effective manner.

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MANAGEMENT AS PROCESS Management can also be defined as the

process of achieving organizational goals through planning, organizing, leading and controlling the human, physical, financial and information resources of the organization in an effective and efficient manner.

In contemporary organizations, the managers role is to guide, train, support, motivate and coach employees and not tell them what to do as it used to be the case in the past.

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Planning & decision makingInputs from the

environmentHuman resourcesFinancial resourcesPhysical resourcesInformation resources

Goals attained Efficiently Effectively

Con

tro l

ling

Leading

Organi zing

Management in Organizations

6

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Management as a discipline Discipline refers to a field of study having well

established concepts and principles. As a discipline management can therefore

be used to refer to knowledge i.e. relevant concepts and principles, that aids in managing organizations or firms.

More specifically, management refers to the study of activities performed in organizations with the aim of achieving organizational goals in an efficient and effective manner.

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Management as a group of people

As a group of people management refers to all those organizational members (employees) who perform managerial functions in organizations.

More precisely, management is that group of organizational members responsible for creating an environment that that enables organizational activities to be performed with the aim of achieving organizational goals in an efficient and effective manner.

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Management as a group of people

Managers are those members of organizations whose primary responsibility is to carry out the management process by planning, making decisions, organizing, leading, and controlling human, financial, physical, and information resources to achieve organizational goals in an effective and effective manner.

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Nature and Characteristics of Management

1. Management is goal oriented.2. Management is a continuous process.3. Management is a coordinative force.4. Management is an intangible force.5. Management is a part of group efforts.6. Management accomplishes results through the

cooperation of others.7. Management balances effectiveness and efficiency.8. Management is a science as well as an art.9. Management is a dynamic discipline.10. Management is pervasive or universal.

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Importance of Management

It helps in:1. Accomplishment of goals.2. Effective utilization of resources.3. Sound organization.4. Providing vision and foresight.5. Harmony in work.6. Helping the employees in achieving personal

objectives.7. Development of society and nation.

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Management: An Art Or Science?

Science is a systematized body of knowledge based on logical consistency, systematic explanation, critical evaluation and experimental analysis.

There is more to management than just organizing people and work.

An organization needs to set objectives, formulate plans, direct people and control operations.

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Management: An Art Or Science?

As a science management entails the use of organized knowledge i.e. information obtained through formal research studies.

For example, by using certain mathematical formula we can often control inventory. Inventory can be controlled and demand can be projected more accurately than by merely using trial and error.

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Management: An Art Or Science?

Art refers to the bringing of desired result through the application of skills.

As an art, management involves the application of experience and intuition to develop a judgment, which is useful in evaluating situations. E.g., a manager is required to choose

between two strategies, A and B. In these strategies, research study indicates neither of them is good but yet he/she has to choose. Here experience and intuition becomes important.

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Management: An Art Or Science?

An art is useful in managing people. Effective managers know when to talk

friendly to their subordinates and when to be strict.

Management is therefore both a science and an art. Effective management is a combination of

art and science. Managers must seek the right blend of art

and science to have organizational goals attained in an efficient manner.

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Management: An Art Or Science: Both

A manager to be successful must acquire the knowledge of science of management and learn to apply this knowledge. A manager should be an applied scientist. Management is as old as the civilization, but its emergence as a scientific field of enquiry is comparatively new.

Management is the oldest of arts and the youngest of sciences.

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Management as a Profession

The essential requirements of a profession are as follows:

1. Specialised field of knowledge.2. Restricted entry based on education and

training.3. Representative or professional association.4. Ethical code of conduct for self-regulation.5. Social responsibility.6. Professional fee

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Management as a ProfessionThe application of the above criteria to management is examined

below:1. Specialised knowledge: Yes it has well defined principles,

concepts, theories and techniques which can be put into practice by managers.

2. Restricted entry based on education and training: Entry to management profession is not restricted as there is no prescribed qualification. MBAs are preferred for managerial jobs but not necessary.

3. Representative Association: Though some organisations such as All India Management Association (AIMA) has been set up for the professionalization of management, but none of these has any authority to prescribe minimum qualification for taking up managerial post or regulate the functions of managers.

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Management as a Profession4. Ethical Code: No universally accepted code of conduct for the

practicing managers. AIMA has prescribed a code for managers, but it has no right to take action against any manager who does not follow this code.

5. Social Responsibility: There is a growing concern for social responsibility of management.

6. Professional Fee: Most of the managers are salaried.

Management can be considered as profession

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Management Vs. AdministrationAdministration is concerned with laying down objectives of the

enterprise, formulating its policies, determining the broad organization structure and overall control of the undertaking. Administration is a top level function which includes determination of objectives and policies and overall control of business operations.

Administration defines the goal, management strives towards it -Oliver Sheldon

There is often a debate as to whether or not there is a difference between management and administration. The debate over the use of the terms management and administration given rise to three viewpoints:

1. American viewpoint: Administration is higher level function whereas management is a lower level function.

2. British viewpoint: Management is generic term and includes administration.

3. Modern Viewpoint: Both the terms are used interchangeably.

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Management Vs. AdministrationBasis Management Administration

1. Definition Management means getting the work done through and with others by leading and motivating them.

Administration is concerned with the formulation of objectives, plans and policies of the organization.

2. Nature Management refers to execution of decisions.

Administration relates to decision making.

3. Stage of performance

It is concerned with implementation of policies laid down by administration.

It is concerned with determination of major objectives and policies.

4. Leading of human efforts

It is actively concerned with direction of human efforts at operational level.

It is not directly concerned with direction of operational personnel.

5. Type of authority

Management has operational authority to execute administrative decisions.

Administration has authority to take strategic and policy decision.

6. Level in organization

Lower level Higher level

7. Decision making

Only in implementation In planning

8. Usage Term management is used in business organizations in pvt. Sector

Used in non-business such Govt., public, military, etc

9. Designation GM, MD, Branch manager, controller, etc

Minister, secretary, commissioner, Director, V.C., Registrar, etc

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Managerial SkillsThe job of a modern manager has become very

complex. He requires different types of skills to manage a large organization in the fast changing environment and to perform the functions and roles, managers need the following essential categories of skills as classified and given by R. L. Katz:

1. Conceptual (analytical) skills2. Human relation skills3. Technical skills

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Conceptual (analytical) skills

1. It means the ability to see the organisation as a whole.

2. It recognise how the various functions of the organisation depend on one another.

3. It makes the individual aware how changes in one part of the organisation affect the others.

4. It extends to visualising the relationship of the individual business to the industry, the community and the political, social and economic forces of the nation as a whole.

5. Thus, manager gains insight into improving the overall effectiveness of the organisation.

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Human Skills1. Human relations skills refer to ones ability to work

well with others on a person-to-person basis and to build up cooperative group relations to accomplish organizational goals.

2. It means knowing how to communicate, motivate, and inspire enthusiasm and trust among people.

3. Human skills are critical and equally important at all levels of management because of the high interpersonal nature of managerial work.

4. Such skills require a sense of feeling for others and capacity to look at things from others point of view.

5. With human skills, managers can resolve intra and inter-group conflicts.

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Technical Skills1. Also referred to as hard skills, they are

concerned with knowledge and proficiency in processes, procedures, methods and techniques which are used if doing a work.

2. Give managers the ability to perform tasks in a specific discipline or department and are acquired through formal education and later developed through training and job experience.

3. Are more important for lower level managers because they deal with employees who are in the actual production process.

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Skill mix at different levels

ManagerialSkills byLevels

TopManagers

MiddleManagers

LineManagers

Conceptual Human Technical

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Levels Of Management

Management levels signify the hierarchy of management in any organisation. Managers can be divided into a number of levels depending upon their activities, size of business, number of workers and effective span of control. In a typical organization managers are divided into three levels:

1. Top management,2. Middle management, and 3. Supervisory or Lower management

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Top managementTop management include managers at the upper level

of the organization structure responsible for making organization-wide decisions and establishing plans that affect the entire organization.

Common job titles for top managers include Board of Directors,President,Chairperson,Vice PresidentChief Executive Officer (CEO),Chief Operating Officer (COO), etc.

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Middle management These are in charge of relatively large departments or

divisions consisting of several smaller units and they report to top managers.

Middle managers develop and implement action or business plans consistent with company objectives such as increasing market presence.

They also perform the management functions of POSDC.E.g. Departmental HeadsRegional managersPlant ManagersDeans in Universities, etc.

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Lower (first-line) management Include those who supervise people performing the

activities required to make the products or services. They ensure that their work units or teams meet

performance objectives which must be consistent with the plans of middle and top management.

First-line managers often have job titles of supervisors,but may also be called heads of sections, group leaders, foremen, etc.

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Levels of Management

Top managersTop managers

Middle managersMiddle managers

First-line managersFirst-line managers

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Finan

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Opera

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Admi

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Functional areas of management

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Characteristics of Quality Manager

1. Ability to think2. Broad vision3. Clear expression4. Technical ability5. Human relations skills6. Organisational ability7. Dynamic personality8. Emotional stability9. Integrity

MCA 109 PRINCIPLES AND PRACTICES OF MANAGEMENTCONCEPT OF MANAGEMENTSlide 3MANAGEMENT AS PROCESSSlide 5Planning & decision makingManagement as a disciplineManagement as a group of peopleSlide 9Nature and Characteristics of ManagementImportance of ManagementManagement: An Art Or Science?Slide 13Slide 14Slide 15Management: An Art Or Science: BothManagement as a ProfessionSlide 18Slide 19Management Vs. AdministrationSlide 21Managerial SkillsConceptual (analytical) skillsHuman SkillsTechnical SkillsSkill mix at different levels Levels Of ManagementTop managementMiddle managementLower (first-line) managementLevels of ManagementCharacteristics of Quality Manager