Pom unit-i, Principles of Management notes BBA I Semester OU

BBA notes, Osmania University, I sem, Principles of Management, PPT of Principles of Management, Osmania University BBA Notes, POM notes by NET qualified faculty

1. PRINCIPLES OF
MANAGEMENT
PRESENTED BY
K.BALASRI PRASAD
B.Sc(KU), M.B.A(OU), NET(UGC), (Ph.D)(MGU)

2. Management
Managementisco-ordinationof
allresourcesthroughthe
process of planning,
organizing,directingand
controllinginordertoattain
statedobjectives.

3. Nature of Management
1.Universalphenomenon
2.Itisanorganizedactivity
3.ItisaGroupactivity
4.Managementisasystematic
process
5.Itisasocialprocess
6.Itisabout“Gettingthingsdone
throughpeople”

4. 7.ManagementisanIntegratedprocess
8.ManagementisIntangible
9.Goal-Oriented
10.Inter-DisciplinaryApproach
11.Dynamic
12.ManagementisaboutsystemAuthority
13.GoodLeadership
14.ManagementisanEconomicactivity
15.Oneofthefactorsofproduction
16.Managementisaprofession

5. Scope of Management
1.SubjectmatterofManagement:
Planning,Organizing,Staffing,Directing,
Coordinating,MotivatingandControllingare
mainfunctionsofManagement.
2.FunctionalAreasofManagement:
(i)FinancialManagement
(ii)MarketingManagement
(iii)ProductionManagement
(iv)HumanResourceManagement

6. 3.Inter-DisciplinaryApproach:
Managementisadisciplinethattakesthe
helpofothersubjectslikePsychology.
Sociology,Engineering,Economicsetc,.
4.UniversalPhenomenon:
Managementisalsopresentinpolitical,
religious,charities,Armedforces,
educationalinstitutionsetc,.

7. Management functions (or)
Process of Management
There are five types of functions in management. They are,
Planning-Defines the goal & establishing strategy.
Organizing-includesdeterminingwhattaskhastobedone,
whoistodothem.
Staffing-Includesrecruitmentofpeopleandtrainingthem
towardstheproject.
Directing-Includesthemotivatingtheemployeesandleading
theactivities.
Controlling-Itistheprocessofmonitoringtheperformance.

8. Managerial Skills
Therearethreetypesofskillsrequiredbyamanager.They
are:
ConceptualSkills-Theseskillsarerequiredbythe
employeewhoareintoplevelmanagement.
HumanRelationsSkills-Theseskillsarerequiredby
theemployeewhoareinmiddlelevelManagement.
Technicalskills-Theseskillsarerequiredbytheemployee
inthesupervisorylevel.

9. Different Managerial Levels
Top Management
Middle Management
Supervisory Level
Human Relations Skills
Conceptual
Skills
TechnicalSkills

10. Order of Management
Operatives
(or)
Executive
First-Line Managers
Middle
Managers
Top
Management

11. Effectiveness:Adequatetoaccomplishapurpose;producing
theintendedorexpectedresult.
Efficiency:Performingorfunctioninginthebestpossible
mannerwiththeleastwasteoftimeandeffort.
(Or)
Efficiencyisdoingsomethingwiththeleastpossibleexpenditureof
resources(suchastime,energy,etc.)
Efficiency & Effectiveness

12. Principles of Management-Henry Fayol
Divisionofwork
Authority&responsibility
Discipline
Unityofcommand
Unityofdirection
Subordination of individual to general
interest
Centralization
Scalar chain

13. Remuneration
Order
Equity
Stability of tenure
Initiative
Esprit de corps

14. EVOLUTION
OF
MANAGEMENT THOUGHT

15. INTRODUCTION
The term ‘management’ encompasses an array of different functions
undertaken to accomplish a task successfully.
It is the process of designing and maintaining an environment in which
individuals, working to gather in groups, efficiently accomplish selected aims.
There are many approaches for the management varying from a problem to
problem solving style to the change.
Each approach has its own limitations and advantages.
Management isall about ‘getting things done’.

16. ENVIRONMENT FACTORS
SOCIAL
INFLUENCE
•The aspects of culture that influence norms
and values
ECONOMIC
INFLUENCE
•The concept to availability, production, and
distribution of resources within a society
POLITICAL
INFLUENCE
•The impact of political institutions on
individuals and organisations

17. EVOLUTION OF MANAGEMENT THOUGHT

18. DIFFERENT APPROACHES
•SCIENTIFIC
•ADMINISTRATIVE
•BUREAUCRATIC
CLASSICAL
•GROUP INFLUENCES
•MASLOW’S NEED THEORY
•THEORY X AND THEORY Y
•HAWTHORNE STUDIES
BEHAVIOURAL
•SYSTEM
•CONTINGENCY
•THEORY Z AND QUALITY MANAGEMENT
MODERN

19. Focuses on the
individual worker’s
productivity
Focuses on the
functions of
management
Focuses on the
overall
organizational
system
CLASSICAL APPROACH

20. SCIENTIFIC MANAGEMENT: Taylor
•develop a scientific approach for each element of one’s work
•scientifically select, train, teach and develop each worker
•cooperatewithworkerstoensurethatjobsmatchplansandprinciples
•ensure appropriate division of labor
FOUR
PRINCIPLES
•Task Performance
•Supervision
•Motivation
THREE AREAS OF
FOCUS:
•Piece-rate-incentive system
•Time and motion study
TWO MANAGERIAL
PRACTICES:

21. FAYOL’s PRINCIPLE OF MANAGEMENT
1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interest to
the common good
7. Remuneration of personnel
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability
13. Initiative
14. Esprit de corps

22. BEHAVIOURAL
APPROACH
The behavioural school of management
emphasized what the classical theorists
ignored.
Acknowledged the importance of human
behavior in shaping management style.
Personalities
•Mary Parker Follett
•Douglas McGregor
•Chester Barnard
•Elton Mayo

23. HIERARCHY’s HUMAN NEEDS
SELF
ACTUALIZATION
NEED FOR SELF
ESTEEM
NEED FOR SOCIAL
RELATIONS
NEED FOR SECURITY
PHYSIOLOGICAL NEEDS

24. CONTINGENCY THEORY
Thereisno“OneBestWay”tomanageallthe
situations.
Also known as ‘Situational Theory’.
Developedbymanagers,consultants,and
researcherswhotriedtoapplytheconcepts
dependingonvariousInternalandExternalfactors

25. LEVELS OF MANAGEMENT

26. Theterm“LevelsofManagement’
referstoalineofseparationbetween
variousmanagerialpositionsinan
organization.
The number oflevelsin
managementincreaseswhenthe
sizeofthebusinessandworkforce
increasesandviceversa.
The levelofmanagement
determinesachainofcommand,the
amountofauthority&statusenjoyed

27. The levels of management can be
classified in three broad categories: -
Top level / Administrative level.
Middle level management.
Low level / Supervisory.

29. Consistsofboardofdirectors,chief
executiveormanagingdirector.The
topmanagementistheultimate
sourceofauthorityandmanages
goalsandpoliciesforanenterprise.
Theydevotesmoretimeonplanning
andcoordinatingfunctions.
Top Level of Management

30. Topmanagement laysdownthe
strategicobjectivesandbroadpolicies
oftheenterprise.
Issuesnecessaryinstructionsfor
preparationofdepartmentbudgets,
procedures,schedulesetc.
Controls&coordinatestheactivitiesof
allthedepartments.Providesguidance
anddirection.
Thetopmanagement isalso
responsibletowardstheshareholders
Role of Top Mgmt

31. Thebranchmanagersanddepartmental
managersconstitutemiddlelevel.
Theyareresponsibletothetop
managementforthefunctioningoftheir
department.
Theydevotemoretimetoorganizational
anddirectionalfunctions.
Insmallorganization,thereisonlyone
layerofmiddlelevelofmanagementbut
inbigenterprises,theremaybesenior
andjuniormiddlelevelmanagement.
Middle Level of Management

32. Theyexecutetheplansoftheorganizationin
accordancewiththepoliciesanddirectives
ofthetopmanagement.
They make plans for the sub-units of the
organization.
Theyparticipateinemployment&trainingof
lowerlevelmanagement.
Theyinterpretandexplainpoliciesfromtop
levelmanagementtolowerlevelandsends
importantreportsandotherimportantdatato
toplevelmanagement.
Theyevaluateperformanceofjunior
Role of Middle level Mgmt

33. Lowerlevelisalsoknownas
supervisory/operativelevelof
management.
It consists of supervisors, section
officers, superintendent etc.
According toR.C.Davis,
“Supervisorymanagementrefersto
thoseexecutiveswhoseworkhasto
belargelywithpersonaloversight
and directionofoperative
Lower Level of Management

34. Assigning of jobs and tasks to various
workers.
Theyguideandinstructworkersfordayto
dayactivities.
Theyareresponsibleforthequalityaswell
asquantityofproduction.
Theycommunicateworker’sproblems,
suggestions,andrecommendatoryappeals
etctothehigherlevel.
They help to solve the grievances of the
workers.
Theyprepareperiodicalreportsaboutthe
performanceoftheworkers.
Role of Lower level Mgmt

35. FUNCTIONS OF
MANAGEMENT

36. FUNCTIONS OF
MANAGEMENT

37. PLANNING
According to KOONTZ,
“Planningisdecidinginadvance
-whattodo,whentodo&howto
do.Itbridgesthegapfromwhere
weare&wherewewanttobe”.
Planningisnecessarytoensure
properutilizationofavailable
resources.

38. ORGANIZING
According to Henry Fayol, “To organize a
business is to provide it with everything useful
or its functioning i.e. raw material, tools,
capital and personnel”.
Organizing as a process involves:
Identification of activities.
Classification of grouping of activities.
Assignment of duties.
Delegation of authority and creation of
responsibility.
Coordinatingauthority&responsibility
relationships.

39. STAFFING
AccordingtoKoontz&O'Donnell,“Managerialfunctionof
staffinginvolvesmanningtheorganizationstructurethrough
properandeffectiveselection,appraisal&developmentof
personneltofilltherolesdesignedunthestructure”.
Staffing involves:
Manpower Planning
Recruitment, selection & placement.
Training & development.
Remuneration.
Performance appraisal.
Promotions & transfer.

40. DIRECTING
Itisthatpartofmanagerialfunctionwhich
actuatestheorganizationalmethodstowork
efficientlyforachievementoforganizational
purposes.
Direction has following elements:
Supervision
Motivation
Leadership
Communication

41. CONTROLLING
Thepurposeofcontrollingistoensurethat
everythingoccursinconformitieswiththe
standards.
Therefore controlling has following
steps:
Establishment of standard
performance.
Measurement of actual performance.
Comparisonofactualperformance
withthestandardsandfindingout
deviationifany.

42. PPT can be downloaded from
link:
https://www.slideshare.net/BALASRIPR
ASADKAMARAP/principles-of-
managementbba1semunit1-osmania-
university