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Principles of Management
Dr. Jitendra K. Sharma
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U 1.U 1. MANAGEMENTMANAGEMENT
Management is the art of getting things donethrough others.
Management in all business and human
organization activity is simply the act of getting
people together to accomplish desired goals.
Management comprises Planning, Organizing,
Staffing, Directing, Coordinating and Controlling an
organization for the purpose of accomplishing agoal..
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Management: an overview Management: an overview
Importance of Management:
1. It is goal oriented.2. It is an essential ingredient of the organization.
3. It is a distinct process consisting of Planning,
Organizing, Staffing, Directing and Controlling.
4.It integrates all resources to achieve objectives.5. Management is an unseen force.
6. It gets results by motivating others.
7. Management is a science & art. It has concepts,
principles & techniques, so it is science. It needs
skills, so it is art.8. It represents a system of authority.
9. It is multidisciplinary.
10.It has universal applications«
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Functions of management1. It helps in Achieving organizational Goals - It arranges
the factors of production, and organizes the resources.2. Optimum Utilization of Resources - Management utilizes
all the physical & human resources productively.
3. Reduces Costs - It gets maximum results through
minimum input by proper planning and by using
minimum input & getting maximum output.
4. Establishes Sound Organization - No overlapping of
efforts (smooth and coordinated functions).
5. Establishes Equilibrium - It enables the organization to
survive in changing environment.
6. Essentials for Prosperity of Society - Efficient
management leads to better economical production
which helps in turn to increase the welfare of people..
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Dr. Jitendra K. Sharma 5
Difference: management and administrationDifference: management and administration
FactorsFactors AdministrationAdministration ManagementManagement
1.1. MeaningMeaning Formulation of Formulation of objectives & policiesobjectives & policies
Getting work doneGetting work donethrough others.through others.
2. Nature2. Nature DecisionDecision--making.making. Execution function.Execution function.
DoingDoing
3. Scope3. Scope Planning & controlPlanning & controlImplementationImplementation
4.4. DecisionDecision
makingmaking
What & when it is toWhat & when it is to
be done.be done.
Who will do it..Who will do it..
5.5.
EnvironmentEnvironment
Interaction withInteraction with
external environmentexternal environment
of businessof business
Internal factorsInternal factors
6. Status6. Status Higher levels of Higher levels of
managementmanagement
Lower levelsLower levels
7. Usage7. Usage In govt. offices.In govt. offices. In private sector In private sector
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Management: an overview Management: an overview
LevelsLevels of of ManagementManagement:: Top,Top, MiddleMiddle && LowerLower..
TOP MANAGEMENT:TOP MANAGEMENT:
(Owner,(Owner, BoDBoD, CMD, CEO, ED etc.), CMD, CEO, ED etc.)
FunctionsFunctions::1.1. ToTo establishestablish goals/objectivesgoals/objectives..
2.2. ToTo makemake policiespolicies..
3.3. ToTo setset organizationorganization frameworkframework..
4.4. ToTo assembleassemble resourcesresources..
5.5. ToTo exerciseexercise effectiveeffective controlcontrol..
6.6. ToTo provideprovide overalloverall leadershipleadership....
Dr. Jitendra K. Sharma
Lower
Top
Middle
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Management: an overview Management: an overview
MIDDLE MANAGEMENT:MIDDLE MANAGEMENT:(Divn(Divn heads,heads, PurchasePurchase Mgr,Mgr, MM,MM, HRHR Mgr,Mgr, FinFin.. MgrMgr..))
FunctionsFunctions::
1.1. ToTo interpretinterpret thethe toptop managementmanagement policiespolicies..
2.2. ToTo prepareprepare thethe organizationalorganizational setset upup inin ownown departmentsdepartments..3.3. StaffingStaffing of of peoplepeople..
4.4. ToTo assignassign dutiesduties forfor implementationimplementation..
5.5. ToTo compilecompile allall instructionsinstructions && givegive toto juniors juniors..
6.6. ToTo motivatemotivate juniors juniors..7.7. ToTo cooperatecooperate withwith otherother departmentsdepartments..
8.8. ToTo reportreport toto toptop managementmanagement....
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Management: an overview Management: an overview
LOWER MANAGEMENT:LOWER MANAGEMENT:
(Foremen, supervisors, executives etc.)(Foremen, supervisors, executives etc.)
FunctionsFunctions::
1.1. TheyThey areare inin directdirect touchtouch withwith workersworkers..2.2. TheyThey handlehandle mostmost of of thethe implementationimplementation workwork..
3.3. OperationalOperational workwork isis handledhandled byby themthem..
4.4. TheyThey passpass thethe instructionsinstructions toto workersworkers....
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Frederick Taylor¶s Scientific Management:
A theory of management that analyzed and synthesized
workflows.Its main objective was improving economicefficiency, especially labor productivity.
Principles of scientific management:
1. Clear demarcation of authority
2. Responsibility3. Separation of planning from operations.
4. Incentive scheme for workers.
5. Management by exception: Investigating only those
situations in which actual results differ significantly
from planned results.6. Task specialization..
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HenriHenri Fayol¶sFayol¶s 14 Principles of Management:14 Principles of Management:
1.1. Division of work:Division of work: No overlappingNo overlapping
2.2. Authority & Responsibility:Authority & Responsibility: Balance is needed.Balance is needed.
3.3. Discipline:Discipline: Rules, norms, customs.Rules, norms, customs.
4.4.U
nity of command:U
nity of command: 1 employee1 employee
1 Boss.1 Boss.5.5. Unity of direction:Unity of direction: One manager One manager one plan.one plan. UoCUoC is notis not
possible withoutpossible without UoDUoD....
6.6. SubordinationSubordination of of IndividualIndividual InterestsInterests toto thethe CommonCommon
InterestInterest:: An organization is much bigger than the individual.
Therefore interest of the organization should prevail in allcircumstances.
7.7. Remuneration of personnel:Remuneration of personnel: Fair & equitableFair & equitable....
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8.8. CentralizationCentralization:: To large extent.To large extent.
9.9. Scalar chain of Command:Scalar chain of Command: From top to bottomFrom top to bottom
ranks.ranks.
10.10. Order Order:: Right person on right job.Right person on right job.
11.11. EquityEquity:: Justice & kindliness.Justice & kindliness.
12.12. StabilityStability of personnel tenure:of personnel tenure: Job security.Job security.
13.13. InitiativeInitiative:: Act without prompting from others. Act without prompting from others.
14.14. EspritEsprit de corpsde corps ((Union is strength).. _ Union is strength).. _
Dr. Jitendra K. SharmaDr. Jitendra K. Sharma
Henri Henri Fayol¶sFayol¶s 14 Principles of Management:14 Principles of Management:
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1. Too formal: Fayol's theory is said to be very formal.
2. Vague: Some of the concepts have not been properlydefined. For example, the principle of division of work
does not tell how the task should be divided.
3. Inconsistency: There is lack of practical studies. They
have not been verified under controlled scientificconditions.
4. Pro-management Bias: it is biased towards
management. Workers interests are ignored.
5. Historical value: Fayol's theory was relevant when
organisations operated in a stable and predictableenvironment. It seems less appropriate in today¶s
unstable environment. For example, now managers
cannot depend entirely on formal authority«
Criticism of Criticism of Fayol¶sFayol¶s theorytheory
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Criticism to Scientific Management: Taylor
1. It fails to appreciate the social context of work and
higher needs of workers.
2. Managers called it unwarranted interference in their
rights.3. Workers resisted it. Trade unions do not prefer it.
4. It fails to recognize the difference among people.
5. It fails to recognize the ideas and suggestions of
workers.
Criticism of Taylor¶s principlesCriticism of Taylor¶s principles
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POSDCORBPOSDCORB:: Planning,Planning, Organizing,Organizing, Staffing,Staffing, Directing,Directing,
Coordinating,Coordinating, Reporting,Reporting, BudgetingBudgeting::1. Planning: Outline the things that need to be done and
methods for doing them to fulfill the organizational
objectives;
2. Organizing: Establishment of formal structure of authority through which work subdivisions are
arranged, defined, and co-ordinated for the defined
objectives;
3. Staffing: Function of selecting and training the staff
and maintaining favourable conditions of work;4. Directing: Continuous task of making decisions and
translating them in specific and general orders and
instructions;
Process of Management: POSDCORBProcess of Management: POSDCORB-- GulickGulick
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POSDCORBPOSDCORB
5. Co-Ordinating: All important duty of interrelating the
various parts of the work;
6. Reporting: Keeping the supervisors informed about
what is going on through records, research and
inspection;
7. Budgeting: In the form of planning, accounting and
control..
Process of ManagementProcess of Management
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Project management is a carefully planned and
organized effort to accomplish a successful project.A project is a one-time effort that produces a specific
result, (eg: Building project).
This is opposite to a program, which is ongoing
process, such as a quality control program.
It includes developing a project plan, which includesdefining and confirming the project goals, identifying
tasks and how goals will be achieved, quantifying the
resources needed, and determining budgets & timelines
for completion.Projects follow major phases including feasibility,
project planning, implementation, evaluation and
support/maintenance..
PROJECT MANAGEMENTPROJECT MANAGEMENT
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Doing Project Management: Answering questions:1. Feasibility Studies -- Is the project worth doing?
2. Project Planning -- How do we determine project's
outcomes, goals and objectives?
3. Resource Allocation -- What do we need to
implement the plan (People, Money and Scheduling)?
4. Risk Management Analysis -- What could go wrong?
5. Ethical Analysis of Project -- Are we following,
morally and legally?
Project management Project management
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Doing Project Management± contd.
6. Implementation of Project Plan -- How do we ensureimplementation while managing change?
7. Earned Value Management -- How do we measure
progress and results?
8. Communicating Plans and Status -- What do we
communicate to whom and when?
9. Evaluating Projects and Results -- How do we
evaluate implementation and project results?
10. When Projects Are in Trouble -- How do we avoid
pitfalls and what do we do if they occur?
Project management Project management
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2020
Project manager:
To manage the project management processes, a
person should be well organized, have great follow-up
skills, be process-oriented, be able to multi-task.
He should have a logical thought process, be able to
determine root causes, have good analytical ability, be a
good estimator and budget manager, and have good
self-discipline..
Project management Project management
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It is the process of mapping the likely consequences of decisions, working out the importance of individual
factors, and choosing the best course of action to take.
It is the act of making up mind about something, or a
position or opinion or judgment reached after consideration.
Decision making can be regarded as an outcome of
mental processes leading to the selection of a course of
action among several alternatives. The output can be anaction or an opinion of choice..
Unit 3:Unit 3: DECISION MAKINGDECISION MAKING
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Irreversible: This are those type of decisions, which, if
made once cannot be unmade. Whatever is decidedwould than have its repercussions for a long time to
come.
Reversible: This are the decisions that can be changed
completely, either before, during or after the agreed
action begins. Experimental: This types of decisions are not final
until the first results appear and prove themselves to
be satisfactory. It requires positive feedback before
one can decide on a course of action.
Delayed: Such decisions are put on hold until the
decision maker thinks that the right time has come.
Quick Decisions: These decisions enable one to make
maximum of the opportunity available at hand.
decision making typesdecision making types
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1. Identify the purpose of your decision. What is exactly
the problem to be solved? Why it should be solved?
2. Gather information. What factors does the problem
involve?
3. Identify the principles to judge the alternatives. Whatstandards and judgement criteria should the solution
meet?
4. Brainstorm and list different possible choices. Generate
ideas for possible solutions..
decision making techniquesdecision making techniques
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5. Evaluate each choice in terms of its results. Use your
criteria to determine the cons and pros of eachalternative.
6. Determine the best alternative. This is much easier after
you go through the above preparation steps.
7. Put the decision into action. Transform your decision
into specific plan of action steps. Execute your plan.
8. Evaluate the outcome of your decision and action
steps. This is an important step for further developmentof your decision making skills and judgement..
decision making techniquesdecision making techniques
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It is used in a situation when for each decision
alternative there is only one event and therefore onlyone outcome for each action. For example, there is only
one possible event for the two possible actions.
When results are predictable, it is known as decision
making under certainty.
When the outcome is not fixed and unpredictable, then
it is uncertainty. In this case, the outcomes are many
leading to varying consequences. These decisions may
be negative to some..
Decision making under Certainty/Uncertainty/RiskDecision making under Certainty/Uncertainty/Risk
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