Basic understanding and knowledge on Principles of Management

Basics knowledge on Principles of Management i

1. PRINCIPLES OF MANAGEMENT Dr.Priyanka Jayaraj Associate Professor Department of B.Com IT Sri Ramakrishna College of Arts & Science

2. Management : Introduction and Meaning The process of Planning Organizing Leading controlling people in the organization to effectively use resources to meet organizational goals. Management means directing a group of people or an organization to reach a goal.  Basic activities that can help you plan, organize and control operations related to material, people, machines, methods, money and markets. achieving organization goals

3. According to Herald Koontz, “Management is the art of getting things done through and with people in formally organized groups”. Henry Fayol defines management as a process to forecast, plan, organize, command, co-ordinate and control. “Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way” – F.W.Taylor “Management is a distinct process consisting of planning, organizing, actuating and controlling, performed at determined and accomplish the objectives by the use of the people and resources” – George Terry. Management : Definition

4. Management : Nature and Scope Management is Universal Management is Goal Oriented Management as group activities Management is function of organized activities Management is continuous process

5. Management : Nature and Scope Management involved in decision-making Management is Situational Management is working with and through people Management as a system of authority Management is an integrative process

6. Importance of Understanding Principles of Management (1) Providing Managers With Useful Insights Into Reality The application of principles of management helps the managers to take right decisions at the right time. These principles of management help managers to tackle the diverse problems in a dynamic business environment. (2) Optimum Utilisation  of Resources & Effective Administration Resources are always scarce and limited. By applying the management principles, the managers can focus on optimum use of available resources so as to achieve productive results at minimum cost and maximum profits. It results in effective administration by channelising resources (human and material) into the best possible way.

7. (3) Scientific Decisions Application of principles of management makes the manager more realistic, thoughtful, justifiable and free from personal bias. The decisions taken on the basis of principles of management are subject to evaluation and objective assessment. (4) Meeting Changing Business Environment Although the principles are in the nature of general guidelines, they are modified and help managers to meet the changing requirements of the environment. Example: With the rapid rise of online market sellers, offline vendors have also started selling their goods on online platforms.

8. (5) Fulfilling Social Responsibility Principles of management not only help in achieving the goals of the organisation effectively and efficiently, but they also guide the managers to fulfil their commitment towards its employees and society. Example: Principles of fair remuneration and equity ensure social justice to employees and compliance with government norms towards corporate social responsibility which improves the company’s image in the society. (6) Management Training, Education and Research Proper understanding of principles is the base of training, research and development in the field of management. Management is taught on the basis of these principles, which help the management institutes prepare future managers. These Principles help managers to take decisions and actions in the right manner. Application of these principles by the managers brings innovation in the field of management.

9. Management : Nature and Scope Management involved in decision-making Management is Situational Management is working with and through people Management as a system of authority Management is an integrative process

10. Management : Nature and Scope Management involved in decision-making Management is Situational Management is working with and through people Management as a system of authority Management is an integrative process

11. Management : Objectives Optimize resources Increase efficiency Maximize profits Promote personal development Maintain quality Uphold workplace morale Reduce risk Generate business strategies Coordinate workflows Identify talent Ensure availability

12. Functions of Management Budgeting Planning Organizing Staffing Directing Coordinating Communicating Controlling Reporting

13. Contribution of Henry Fayol Henri Fayol is well-renowned as the 'Father of Modern Management Theory’. Division of Work Authority Discipline Unity of Command Unity of Direction Collective Interest Over Individual Interest Remuneration

14. Contribution of Henry Fayol 8. Centralization 9. Scalar Chain 10. Order 11. Equity 12. Stability of Tenure of Personnel 13. Initiative 14. Esprit de Corps

15. Contribution of Henry Fayol F.W. Taylor or Fredrick Winslow Taylor, also known as the ‘Father of scientific management’ proved with his practical theories that a scientific method can be implemented to management. Science, not the Rule of Thumb Harmony, Not Discord Mental Revolution Cooperation, not Individualism Development of Every Person to his Greatest Efficiency

16. Contribution of Peter F Drucker Peter Drucker outshines all. He has varied experience and background which include psychology, sociology, law, and journalism. Some of the major contributions of Peter Drucker are as follows: Nature of Management Management Functions Organisation Structure Federalism Management by Objectives Organizational Changes.

17. Contribution of Mc. Gregor Douglas McGregor was a social psychologist which is why Theory X and Theory Y focus mainly on how management beliefs effect human motivation these two management types are also referred to as authoritarian and participative. McGregor proposed that there were two types of managers: (1) ones who assumed a negative view of their employees, also known as the Theory X managers, (2) and others who assumed a positive view of workers, or the Theory Y managers.

18. Contribution of Mc. Gregor Theory X According to McGregor, Theory X management assumes the following: Work is inherently distasteful to most people, and they will attempt to avoid work whenever possible. Most people are not ambitious, have little desire for responsibility, and prefer to be directed. Most people have little aptitude for creativity in solving organizational problems. Motivation occurs only at the physiological and security levels of Maslow’s hierarchy of needs. Most people are self-centered. As a result, they must be closely controlled and often coerced to achieve organizational objectives. Most people resist change. Most people are gullible and unintelligent.

19. Contribution of Mc. Gregor Theory Y In strong contrast to Theory X, Theory Y management makes the following assumptions: Work can be as natural as play if the conditions are favorable. People will be self-directed and creative to meet their work and organizational objectives if they are committed to them. People will be committed to their quality and productivity objectives if rewards are in place that address higher needs such as self-fulfillment. The capacity for creativity spreads throughout organizations. Most people can handle responsibility because creativity and ingenuity are common in the population. Under these conditions, people will seek responsibility.

20. Contribution of Mary Parker Follet About Mary Parker Follet: Mary Parker Follet defined management as " the art of getting things done through people ". Mary Parker Follet was a Boston – born social worker who becomes eminent as a political and social philosopher. She was a modest spinster lady who has never managed a business in her life. She was consulted by many successful business administrators for help in their immediate difficulties involving group and personal relationships. Her ideas on leadership, constructive conflict, power, coordination, control, responsibility, conciliation.

21. Contribution of Mary Parker Follet On consent On Authority On Leadership Principles of coordination Coordination by direct contact by the responsible people concerned Coordination in the early stages Coordination as a reciprocal relation of all features in a situation Coordination is a continuous process

22. Roles of Managers I. Interpersonal Roles: Figure Head: - Ceremonial Example: Taking the customer to lunch, greeting the special visitor, attending the wedding of the plant manager’s daughter etc. Leader: Responsible for work unit Example: Hiring, Firing, and Motivating workers. Liaison: Contacts outside of the vertical chain of command Example: Meeting with a peer in another department, checking up on a supplier, speaking with a government official on the issue of starting a new project.

23. Roles of Managers II. Informational Roles: Monitor – obtains information for the work group Example: Gossip, Official Reports and so on. Disseminator : Passes on information Example: gives workers important data, act as a go-between for data. Spokesperson : Sends information outside the workgroups Examples speech at a public meeting, report to the divisional manager

24. Roles of Managers III. Decisional Roles: Entrepreneur: Improver of the work unit Example: looks out for new ideas, develops new programs. Disturbance handler: Responds to pressure Example: what to do if a supplier goes bankrupt, how to get a union to call off a strike. Resource Allocator: Who gets what, Example: gets budgets priority, selects the best of several good proposals. Negotiator: Stepping into the middle Example: bargaining new union contracts, listening to a particular grievance.