Principles of Management

Principles of Management Paper Code : HU 601. MODULE 1 : Basic Concepts Of Management.

Definitions “The art of getting things done through people.” - Mary Parker Follet “Management is the process of planning, organising, leading and controlling the efforts of organisation members and of other organisational resources to achieve slated organisational goals.” - James A.F. Stoner

Management – An Art, Science or Profession Science: Any branch of knowledge to be considered a science (like – physics, chemistry, biology etc.) should fulfill the following conditions: • The existence of a systematic body of knowledge encompassing a wide array of principles; • The principle must explain a phenomenon by establishing cause – effect relationship; Over the years, thanks to the contributions of many thinkers and practitioners, management, with its own principles has emerged as a systematic body of knowledge.

Management – An Art, Science or Profession Management may be considered as inexact science because, • Management involves getting things done through people • The behavior of human beings cannot be accurately predicted • The output also varies

Management – An Art, Science or Profession An Art: refers to the ‘know-how’ – the ways of doing things to accomplish a desired result. • As the saying goes ‘practice makes a man perfect; constant practice of the theoretical aspects (knowledge base) contributes for the formation and sharpening of the theory and practice. Therefore, what is required is the right blend of the theory and practice.

Management – An Art, Science or Profession • Effective practice of any art requires a thorough understanding of the science underlying it. The executives who attempt to manage without the conceptual understanding of management principles and techniques have to depend on luck or intuition. Therefore, management is both a science and an art.

Management – An Art, Science or Profession As a Profession: • These are the days where we are hearing a lot about professional managers and their contribution to the economic development of the nation. • Therefore, it is appropriate to know the other dimension of management – whether it is a profession. • Since professionals are getting involved, it can be referred to as a profession.

Management and Society Environment:The environment of the business consists of two components – internal and external environment. Internal environment:refers to the various systems inside the organization such as, technology, structure and people. External environment:may be divided into two categories • Direct action environment:consisting of those factors directly affecting the organization’s operations like suppliers, laws, customers and competitors. • Indirect action environment:consists of those factors that may not have an immediate direct effect like technology, economic conditions, socio-cultural factors and political environment.

Levels of Management 1. Top level management: Example: Chairman, CEO, MD, GM 2. Middle level management: Example: Functional managers, Branch Managers etc , Project Managers. 3. First-level management: Example: Foreman, supervisor, inspector etc.

Supervise Others Top Managers Middle Managers First-Line Managers Work on Jobs Operative Employees Levels of Management

1. Top Level of Management • The role of the top management • 1. Top management lays down the objectives and • broad policies of the enterprise. • 2. It issues necessary instructions for preparation • of department budgets, procedures, schedules. • 3. It prepares strategic plans & policies for the • enterprise. • 4. It is also responsible for maintaining a contact • with the outside world

1. Top Level of Management • It appoints the executive for middle level i.e. • departmental managers. • 6. It controls & coordinates the activities of all the • departments. • 7. It provides guidance and direction. • 8. The top management is also responsible • towards the shareholders for the performance • of the enterprise.

2. Middle Level of Management • The branch managers and departmental managers • constitute middle level. • They are responsible to the top management for • the functioning of their department. • They devote more time to organizational and • directional functions. • In small organization, there is only one layer of • middle level of management but in big enterprises, • there may be senior and junior middle level • management.

2. Middle Level of Management • The role of the middle management • 1. They execute the plans of the organization in • accordance with the policies and directives of • the top management. • 2. They make plans for the sub-units of the • organization. • 3. They participate in employment & training of • lower level management. • 4. They interpret and explain policies from top • level management to lower level.

2. Middle Level of Management • The role of the middle management • 5. They are responsible for coordinating the • activities within the division or department. • 6. It also sends important reports and other • important data to top level management. • 7. They evaluate performance of junior managers. • 8. They are also responsible for inspiring lower • level managers towards better performance

3. Lower Level of Management • Lower level is also known as supervisory / • operative level of management. • It consists of supervisors, foreman, section • officers, superintendent etc. • Supervisory management refers to those • executives whose work has to be largely with • personal oversight and direction of operative • employees. • In other words, they are concerned with direction • and controlling function of management.

3. Lower Level of Management •  The role of the Lower management • 1. Assigning of jobs and tasks to various workers. • 2. They guide and instruct workers for day to day • activities. • 3. They are responsible for the quality as well as • quantity of production. • 4. They are also entrusted with the responsibility • of maintaining good relation in the organization.

3. Lower Level of Management • The role of the Lower management • 5. They communicate workers problems, • suggestions, and recommendatory appeals etc. • to the higher level and higher level goals and • objectives to the workers. • 6. They help to solve the grievances of the • workers. • 7. They supervise & guide the sub-ordinates. • 8. They are responsible for providing training to • the workers.

Levels of Management: • We can categorize organizational members in two ways: Operatives work directly on a job or task and have no responsibility for overseeing the work of others. • Managers direct the activities of other people in the organization. Usually classified as top, middle, or first-line, managers supervise both operative and lower-level managers. • First-line managers supervise the day-to-day activities of operative employees. • Middle managers represent the level of management between first-line managers and top management. These managers translate the goals of top management into specific details that lower-level managers can perform. • Top managers make decisions about the direction of the organization and set policies that affect all organizational members.

Managerial Skills • Conceptual skills for the top management • Human skills for the middle management • Technical skill for the lower management

Technical Skills • “Business skills” • Using methods and techniques to perform a task • Keeping up with the latest technology in your job

Human Skills • “People skills” • Your relationships with all individuals and groups • Understanding • Communicating • Motivating • Resolving conflict • Working as a team member • “It’s not what you know, it’s who you know.” • Ethics .

Conceptual Skills • Select alternatives to solve problems • Take advantage of opportunities • Be able to conceptualize, diagnose and analyze • Use math skills • Manage time .

Decisional Informational Interpersonal The Roles of Management The Mintzberg Studies `

Roles of Management In the 1960s, Henry Mintzberg concluded that managers perform ten roles that can be grouped around three themes: interpersonal relationships, information transfer, and decision making. • Managers perform three types of interpersonal roles: • Figureheads perform ceremonial or symbolic roles. • Leaders train, motivate, and discipline employees. • Liaisons contact external information sources. • Managers perform three types of informational roles: • Monitors collect marketplace information from outside sources. • Disseminators transmit information to organizational members. • Spokespersons represent their organizations to outsiders. • Managers perform four types of decisional roles: • Entrepreneurs initiate and oversee new projects to improve organizational performance. • Disturbance handlers take action to respond to unforeseen problems. • Resource allocators control human, mechanical, and monetary resources. • Negotiators bargain with others to gain advantage for their own units.

Functions of Management • Planning • Organising • Staffing • Directing • Controlling

ManagementFunctions P - O - S - D - C

Management Functions Planning – Process of determining the organization’s objectives and deciding how to accomplish them.

Management Functions Organizing – Structuring of resources & activities to accomplish objectives efficiently & effectively.

Management Functions -- Organizing Importance : • Creates synergy • Establishes lines of authority • Improves communication • Improves competitiveness

Management Functions Staffing – Hiring people to carry out the work of the organization.

Staffing Management Functions Importance – • Recruiting • Determine skills • Motivate & train • Compensation levels

Management Functions -- Staffing Downsizing Elimination of significant numbers of employees (rightsizing, trimming the fat)

Management Functions Directing – Motivating and leading employees to achieve organizational objectives.

Management Functions -- Directing Motivation Incentives (raise, promotion) Employee involvement (cost reduction, customer service, new products) Recognition and appreciation

Management Functions Controlling – Process of evaluating and correcting activities to keep organization on course.

Principles of Management