Ch.2 management process

meaninc,various management principles,functions of managment,

1. Welcome Topic 2: Management Process Presented By Mr. J.B.Shirote Lecturer in Mechanical Engineering Department Latthe Education Society’s Polytechnic P-41,M.I.D.C.,Kupwad,Sangli.

2. Topic 2: Management Process Specific Objectives State various management principles Describe different management functions

3. What is Management? What is Management ? It is an art of getting work done from others with the help of optimum recourses to achieve desired goals It is called an art because managing requires certain skills which are personal possessions of managers.

4. Management Process

5. Evolution (Gradual Development)

6. History Since last 30000 years human being is applying management in his life activities MohenjoDaro Pyramids in Egypt

7. Evolution Of Management Theories

8. Sr.No . Scientist Contribution In Management Evolution 1 F.W. Taylor (1856-1915) Scientific Management Theory 2 Frank B. Gilbreth Time Study 3 Lillian M. Gilbreth Motion Study 4 Mary Parker Follet Behavioral Management Theory 5 Henri Fayol Principals Of Management 6 Max Weber Bureaucracy 7 Douglas Mcgregor Theory X And Y 8 Moslow Need Of Hierarchy 9 Adam Smith Economist

9. 1.Scientific Management Defined by Frederick Taylor, late 1800’s . Father of scientific management. The systematic study of the relationships between people and tasks to redesign the work for higher efficiency. Taylor sought to reduce the time a worker spent on each task by optimizing the way the task was done

10. 2.Administrative Management Theory Henri Fayol (1841-1925) : Fayol was born in France, where he worked for a coal-mining business. He developed 14 administrative principles for organizational structure and management.

11. Bureaucracy A bureaucracy is an organization made up of many departments and divisions that are administered by lots of people. Seeks to create an organization that leads to both efficiency and effectiveness. Max Weber developed the concept of bureaucracy. A formal system of organization and administration to ensure effectiveness and efficiency

12. Weber’s Five Principles

13. 3.Behavioral Management Focuses on the way a manager should personally manage to motivate employees. Mary Parker Follett a n influential leader in early managerial theory. Suggested workers help in analyzing their jobs for improvements. The worker knows the best way to improve the job. If workers have the knowledge of the task, then they should control the task

14. Theory X and Y Social psychologist Douglas McGregor of MIT expounded two contrasting theories on human motivation and management in the 1960s: The X Theory and the Y Theory.

15. 4.Management Science Management Science is concerned with developing and applying models and concepts that help to illuminate management issues and solve managerial problems. The models used can often be represented mathematically, but sometimes computer-based, visual or verbal representations are used.

16. 4.Management Science Quantitative management: utilizes linear programming, modeling, simulation systems. Operations management: techniques to analyze all aspects of the production system. Total Quality Management (TQM): focuses on improved quality. Management Information Systems (MIS): provides information about the organization.

17. 5.Organization-Environment Theory Considers relationships inside and outside the organization. The environment consists of forces, conditions, and influences outside the organization. Systems theory considers the impact of stages: Input: acquire external resources. Conversion: inputs are processed into goods and services. Output: finished goods are released into the environment.

18. Definitions Of Management The art of getting things done through people . -- Mary Parker Follett  

19. Management is an art of knowing what is to be done and seeing that it is done in the best possible manner . - F.W.Taylor

20. Concept of management Harbison and Myers offered a classic threefold concept for emphasizing a broader scope for the viewpoint of management. They observe management as ( 1) an economic resource ( 2) a system of authority ( 3) a class or elite ( a select group that is superior in terms of ability or qualities to the rest of a group or society. )

21. Levels of management

22. Principles of Management ( 14 principles of Henry Fayol)

23. 1. Division Of Work : It is also called Delegation of work Due to division of work, people gets less variation in work Extra pressure on very few is avoided Work gets completed in time with better quality Results into Functional specialization

24. 2. Authority Right to give orders Right to command If authority used in good sense and in positive manner the system works smoothly Authority can be delegated(divided) Higher the authority, higher the responsibility

25. 3. Discipline Discipline means obedience, respect for authority, and observance of established rules . Requires for Smooth functioning of organization No excuses Starts form top management

26. 4. Unity Of Command One boss principal Workers should receive orders from only one manager As soon as two superiors impose their authority over the same person or department, uneasiness makes itself felt. Dual command is a source of conflict  

27. 5. Unity Of Direction 'One Head One Plan'. A ll the employees having same objective must be directed towards the achievement of the common goal and thus must have one head and one plan No confusion among the employees

28. 6. Subordination Of Individual Interests To The General Interests This principle states that general interest is superior to the individual interest

29. 7. Remuneration : Many people work for Remuneration Reward for employment in the form of pay, salary, or wage, including allowances, benefits (such as company car, medical plan, pension plan), bonuses , cash incentives, and monetary value of the noncash incentives.

30. 8. Centralization Centralization  is said to be a process where the concentration of decision making is in a few hands. lowering the importance of the subordinate role Does not considered local issues

31. Decentralization On the other hand, Decentralization is a systematic delegation of authority at all levels of management

32. 9. Scalar Chain Line of authority and responsibility This varies from top level management (executive board) to the lower level in the organization.

33. 10. Order  H ere Order  does not mean any command Order means right arrangement of things and activities . A proper place for everything and everything at its proper place. If it is at fixed place it avoids hindrance which leads into higher efficiency and output

34. 11. Equity core values of an organization . All employees should be treated as equally and kindly, with justice as possible. gives dignity to everyone There Is no bias nature

35. 12. Stability Of Tenure Of Personnel In order to run an organization smoothly, personnel  (especially managerial  ) must not frequently enter and exit the organization . Stability provides secure feelings Economic stability, work load work area team stability etc.

36. 13. Initiative To start with enthusiasm employees should be allowed to express new ideas . encourages interest and involvement and creates added value for the company. 

37. 14. Espirit De Corps TEAM spirit S tands for striving for the involvement and unity of the employees Development of the culture and creates an atmosphere of mutual trust and understanding .

38. Scientific M anagement by F . W. Taylor application of a scientific approach to managerial decision­ making consisting of-collection of data, an analysis of data and basing decisions on the outcome of such analyses and discarding at the same time, all unscientific approaches, like – rule of the thumb, a hit or miss approach and a trial and error approach .

39. 4 Principals

40. Network Techniques CPM- Critical Path Method PERT- PERT is a method of analyzing the tasks involved in completing a given project, especially the time needed to complete each task, and to identify the minimum time needed to complete the total project

41. CPM &PERT Model

42. Advantages Of Scientific Management Over The Traditional Management Plan is more optimistic Idle time is reduced Suitable men for suitable job Effective assignment avoids overlapping of work Cost reduction Material wastages reduced Unnecessary delays avoided Directs best method of work

43. Functions of Management Planning Organizing Staffing Directing Controlling Decision Making

44. 1.Planning

45. Planning It is Deciding in advance - What to do -why to do -How to do -When to do -where to do it -Who is going to do it

46. Bridges a gap between where we are today and where we want to reach . Planning is necessary to ensure proper utilization of human & non-human resources.

47. Why Planning Is Required?? To reduce effects of uncertainty To find out the risks involved To focus the objectives of work To make process more economical To improve the efficiency and effectiveness To avoid repetitions of work

48. Planning process

49. Why plan fails?? No adequate information Improper and insufficient actions Unrealistic goals Planning is done only for plan sake Partial commitment inadequate resources

50. 2.Organizing

51. Steps In Organizing No Description 1 Objectives /Aims /Goals Are Determined 2 Formulation Of Supporting Policies And Plans 3 Identification And Classifying The Activities 4 Grouping The Activities In The Best Ways 5 Assignment Of Duties 6 Horizontal And Vertical Relationships Of Authority And Responsibility

52. Importance Of Organizing Benefit of specialization Provides optimum utilization of recourses Effective administration Channels expansion and growth Co-ordination among different departments Scope for new change

53. 3.Staffing Staffing is the process of filling positions in the organization with adequate and qualified personnel (employees)

54. Staffing Recruiting, selecting, appointing the employees, assigning duties, maintaining cordial relationship ( friendly and sincere) and taking care of grievances of employees. Training and Development of employees, deciding their remuneration, promotion and increments . Evaluating their performance.

55. 4.Directing Directing is said to be a process in which the managers instruct, guide and oversee the performance of the workers to achieve predetermined goals. Directing is said to be the heart of management process.

56. Directing Giving direction or instruction to employees to get the job done. Leadership qualities are required. Communicating with them at regular intervals .

57. Aspects Of Directing It deals directly with- Supervision Leadership Motivation Communication Co-ordination Of workers to achieve predetermined goals.

58. Importance Of Directing Joins the management and subordinates Guidelines to juniors from seniors Experience is always gives better in doing work Success rate is more due to valid and correct direction It removes confusion among team members

59. 5.Controlling

60. Controlling

61. Controlling Planning is a process by which an organization's objectives and the methods to achieve the objectives are established C ontrolling is a process which measures and directs the actual performance against the planned goals of the organization.

62. Controlling Main purpose is to avoid deviation in the work It primarily needs standards, objectives and goals It decide Criterion Of Performance Work on correct track with correct speed is possible by controlling

63. Techniques Used For Controlling Statically reports Audit Personal observations Budgetary control CPM PERT Breakeven Analysis

64. Advantages 1. Efficient Execution: System runs as per rule, as per plan 2. Helps Delegation 3 .  Simplifies Supervision 4 .  Aids to Efficiency Losses are avoided Wastes is minimized Proper utilization of Recourses Deviation in executed process is reduced

65. 6.Decision Making

66. Meaning Decision-making is the act of choosing between two or more courses of action. In the wider process of problem-solving, decision-making involves choosing between possible solutions to a problem.

67. Importance Correct decisions provide opportunities of growth while wrong decisions lead to loss and instability

68. Steps In Decision Making

69. Types Of Decision Programmed and non-programmed decisions concerned with the problems of repetitive nature or routine type matters 2. Routine and strategic decisions related to the general functioning of the organization.

70. 3. Strategical (Policy ) and operational decisions Decisions pertaining to various policy matters of the organization are policy decisions. 4 . Organizational and personal decisions When an individual takes decision as an executive in the official capacity, it is known as organizational decision.

71. Major and minor decisions Individual and group decisions

72. Techniques Used In Decision Making 1. Brainstorming 2. Nominal group technique 3. Multi-voting 4. Delphi method brainstorm and submit their ideas anonymously. Other team members do not know the owner of the ideas. circulates them among others for modifying or improving them

73. Advantages Of Decision Making actions will not be possible and the resources will not be put to use. Is necessary for planning, organizing, staffing, coordinating and communicating. Follow-up actions are not possible To face new problems and challenges .

74. 7.Motivating Motivation in management describes ways in which managers promote productivity in their employees Energizes people to work more Is to increase the will power and encourage to employee Its related with inspiring to do work better

75. Maslow Theory Of Motivation

76. Administration And Management Administration means overall determination of policies, setting of major objectives, the identification of general purposes and laying down of broad programs and projects

77. Difference Management  is all about plans and actions, but the administration  is concerned with framing policies and setting objectives.