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Management
Principles And Practice
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What is management?
Management in all business and humanorganization activity is simply the act ofgetting people together to accomplish
desired goals and objectives. Why management is needed?
To become successful?
What is success? Become successful through managing
your firm, your life, and so on
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Mary Parker Follett (1868-1933)
defined management as the art of getting things done through people.
Management guru Peter
Drucker (1909-2005):Basic task of a managementis two-fold: marketing and
innovation
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Management is the process of designing and
maintaining an environment in which individuals
working together in groups, accomplish their aims
effectively and efficiently Koontz
Management is what a manager does Louis Allen
To manage is to forecast and plan to organize, to
command, to coordinate and to control Henry Fayol Management is defined as a process of overseeing
and coordinating resources efficiently and effectively
in line with the goals of the organization
DEFINITIONS OF MANAGEMENT
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These definitions implies that;
Management is a process. It is a process of
carrying out the essential functions of planning,organizing, staffing, leading and controlling.
Management applies to all kinds of organizations
govt, profit or non profit making It applies to managers at all levels
The aim of management is to create surplus
Management is concerned with
productivity efficiency & effectiveness.
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Management as an activity Interpersonal role working with & through people
Decision making role Use & control of resources
Communication Information role
Management as a process process means asystematic way of doing things. Management is
described as a process because all managers
irrespective of their individual abilities & aptitudesengage themselves in inter-related activities with a
view to accomplish group objectives.
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Management as a DisciplineA discipline maybe defined as a branch of knowledge or subject of
instructions. As a discipline management refers to afield of study of the principles and practices of
management.
Management as a function the functions ofmanagement can be broken down into five basicfunctions
MENMONEY
MACHINES
MATERIALS
METHODS
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Managing : Science or Art
Science may be defined as representing knowledge
gathered by observations & experiment, critically
tested, systematized and brought under general
principles.An art may be defined as a skill or knowledge in a
particular field of activity or a knack or method of
doing an activity
Managing as a practice is an art. The organized knowledge underlying the practice
may be referred to as science.
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DISTINCTION
SCIENCE ART
It develops by knowledge
acquired through observation
and experimentation
It develops by practice
It lays down universal laws and
principles which remains valid in
all situations
The laws and principles are not
of universal nature & their validity
will differ from situation to
situation
It predicts on the basis ofknowledge of relationships
between variables
It is merely a guess based onsubjective understanding of
realities
It is definitive It is descriptive
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MANAGEMENT & ADMINISTRATION
TERMINOLOGICAL CONFLICT
Various views expressed in this regard have
led to the emergence of three approaches.
Administration is above management
Administration is part of management
Management and administration are the same
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DISTINCTION
ADMINISTRATION MANAGEMENT
it is concerned with determining
the major policies & objectives of
the business enterprise. It refers
to owners of the enterprise
It is concerned with the doing or
executive function, the policies &
decisions to be implemented
being those laid down by the
administration. It refers to
employees of the enterprise
Decision making is mainlyinfluenced by the force of public
opinion, governmental policies,
as also social & religious factors
The scope for decision making islimited. At the most decisions are
influenced by the values,
opinions & beliefs of managers
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It is that part of mgnt which is
concerned with the determination&carrying out of the procedures
by which the process of activity
is evaluated and controlled as
per plans
It is a general name for the total
process of executive control inindustry or commerce. It has
responsibility for the effective
planning & execution of various
operations of the enterprise
It refers to owners of the
enterprise who by way of return
on the capital invested by them,
receive profits by way ofdividends etc.
It refers to employees of the
enterprise who, for working within
the board policy guidelines laid
down by the administration, arepaid remuneration in the form of
salaries & sometimes also a share
in the profits.
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FUNCTIONS AND SKILLS OF MANAGER
WHO IS A MANAGERA Manager is the person responsible for planning anddirecting the work of a group of individuals, monitoring
their work, and taking corrective action when necessary
_________________________________________________________
An individual who is in charge of a certain group of tasks,
or a certain subset of a company. A manager often has a
staff of people who report to him orher.
__________________________________________________________
A manager is the individual who is directly responsible in
ensuring that tasks are performed by people or employees
in the organization.
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Goals of a manager The desirable aim of all managers should be to create
surplus.All personnel's working with or under in the same
environment should be directed to achieve the group
objectives or the organizational objective.
Group objectives should be obtained with the least
amount of time, money, material and personnel
dissatisfaction or achieve as much as the desired goals
utilizing the available resources.
To utilize the least amount of resources available
managers should be productive, effective & efficient.After attaining desired productivity, effectiveness &
efficiency managers should look back to their methods
and develop new methods to improve same.
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Managerial skills and Organizational
hierarchy Technical Skills
Knowledge and proficiency in working with tools
Adapt and adopt specific techniques in improving performance
Human Skills The ability to work with people
Creation of an environment where people feel secure and free to
express their opinions
All about cooperative effort and team work
Conceptual Skills
The ability to see the big picture and recognize significantelements in any given situations
Design Skills The ability to solve problems in ways that will benefit the
enterprise
Must be capable of doing more than just see a problem
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The Millennium Manager
Make use of technology to the max advantage Take every decision that maximizes the shareholder
value
Predict uncertain events more accurately
Use the speed of response to the advantage
Be aware of the global tends in business
Continue to be patient & committed to the cause of the
organization Be unconventional and creative
Maintain the competitive edge
Fulfillhis responsibility towards t
he society
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Social Responsibility Of Managers
Social responsibility entails all such activities
ranging from providing safe products & services to
giving a portion of the companys profits to welfare
organizations. Towards shareholders responsibility to provide fair
return on capital to the share holders. The firm should
provide regular, accurate & full information about the working
of the enterprise in order to fulfill and encourage their interestin the affairs of the company
Towards Consumers provide quality products &services to the customers at reasonable prices
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Towards Employees Good working conditionsmotivate workers to contribute their best. Remuneration for
the best performers, training for the newer & existing
employees, settle any disputes and grievances etc.
Towards Creditors repay all loans that is taken fromfinancial institutions as per the repayment schedules. The
business firm has to live up to the ethical & moral
expectations of its creditors by fulfilling its commitments.
Towards the Govt Pay its taxes and be fair in itsendeavors, should extend its support in community
development projects
Towards Competitors - Maintain business ethics andcordial relationship with all its competitors.
Towards General Public - to support the cause of
community development.
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Advent of scientific management
Frederick Winslow Taylor
1856-1915 American
Steel worker to start with, became
the chief engineer in six years Father of Scientific Management
Time study foundation of
Taylor System
Task Management Taylors lectures in Harvard from 1909 to 1914
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SCIENTIFIC THEORIES
A Concept introduced by Frederick Winslow
Taylor in the beginning of the 20th Century.
Definition S
cientific Management isconcerned with knowing exactly what you
want men to do and then see in that they do
it in the best & cheapest way
scientific magnt was concerned essentially
with improving the operational efficiency at
the shop floor level.
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ELEMENTS AND TOOLS
SCIENTIFIC TASK PLANNING- separation ofplanning from doing, Taylor emphasized that
planning should be left to the supervisor & the
workers should emphasis only operational work.
FUNTIONAL FOREMANSHIP- based onspecialized functions. In this system eight people are
involved into direct the activities of workers, of w
hichfour are concerned with planning, the remaining
concerned with doing aspect of work.
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JOB ANALYSIS is undertaken to find out thebest way of doing an activity/ work. The best way of
doing a job is one which requires the leastmovements, time & cost
WORK STUDY May be defined as a combinationof several techniques which can be applied to all
kinds of efficiency problems, including laborproductivity. The objective is to improve efficiency.
Techniques
Method study Motion study
Time study or work measurement
Fatigue study
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SCIENTIFIC SELECTION & TRAINING OF
WORKERS- Tayor suggested that workers should
be selected on scientific basis taking into accounttheir education, work experience, physical strength
etc.Work should be allotted physical & technical
suitability of a worker.
FINANCIAL INCENTIVES To motivateworkers to put in their best efforts. Differential piece
rate system and individual performance based
incentive system
ECONOMY Adequate consideration should be
given to economy & profit. The economy & profit can
be achieved by making the resources more
productive as well as by eliminating the wastage.
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STANDARDISATION &SIMPLIFICATION Standardisation should be maintained in respect of
instruments & tools, period of work , amount of work,working conditions, cost of production etc. These
needs to be fixed in advance on the basis of job
analysis& various elements of cost that go in
performing a work. MENTAL REVOLUTION Depends on mutual
co-operation between management & workers.
There should be mental change from both the
parties from conflict to co-operation
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BASIC PRINCIPLES
Replacing rule of thumb with science
Harmony in group action
Co-operation, not individualism Maximum output
Development ofWorkers
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FAYOLS ADMINISTRATIVE
MANAGEMENT
HenriHenri FayolFayol (1841(1841--1925)1925) General and Industrial Management
Principles and Elements of Management - how
managers sh
ould accomplish
th
eir managerial duties PRIMARY FOCUS: Management
(Functions of Administration)
More Respect forWorker than Taylor Workers are motivated by more than money
Equity in worker treatment
More PRESCRIPTIVE
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FayolsFayols Administrative TheoryAdministrative Theory
Fourteen Principles of Management (Tools for Accomplishing Objectives)Fourteen Principles of Management (Tools for Accomplishing Objectives)
Division of work - limited set of tasks
Authority and Responsibility - right to give orders
Discipline - agreements and sanctions
Unity of Command - only one supervisor Unity of Direction - one manager per set of activities
Subordination of Individual Interest to General Interest
Remuneration of Personnel - fair price for services
Centralization - reduce importance of subordinates role
Scalar Chain - Fayols bridge Order - effective and efficient operations
Equity - kindliness and justice
Stability of Tenure of Personnel - sufficient time for familiarity
Initiative - managers should rely on workers initiative
Esprit de corps - union is strength loyal members