principles of management by diffrent thinkers

management principles

1. PRINCIPLES OF
MANAGEMENT

2. Concept of Management
Nature and scope of management;
Management : science or Arts; Skills
of managers, productivity, efficiency
and effectiveness.
The Social Psychology of Industry-
JAC Brown

3. The history of industrialization
Lewis Mumford-Technics and Civilization
Eotechnic era/ medieval phase -1000-
1750
The role of owner/manager/worker/marketing -
merged in one person
Paleotechnic era
factory system/ joint stock company system
The role of owner + manager merged

4. Neotechnic era
Mass production
Large industrial enterprise
Huge investment is needed-Share holders
are the owners---Manager----Workers
Industrial organizations have become
competitive and demanding work place
There is possibility of no difference in
technical skill but people's skill may differ

5. Why managers fail ?
According to Hymowitz (1988) because of
poor interpersonal skill
What managers do ?
Managers get things done through other
people. They take decisions, allocate
resources, and direct the activities of
others to attain goals.

6. Definition of management
AccordingtoWeihrich&Koontz(1994)
management istheprocessofdesigningand
maintaininganenvironmentinwhichindividuals,
workingtogetheringroups,efficientlyaccomplish
selectedaims.

7. This basic definition needs to
be expanded:
1. As managers, people carry out the
managerial functions of planning,
organizing, staffing, leading, and
controlling.
2. management applies to any kind of
organization.
3. it applies to managers at all
organizational levels.

8. 4. the aim of all managers is the same: to
create a surplus.
5. managing is concerned with productivity;
this implies effectiveness and efficiency.
According to Robbins (1998) the people who
oversee the activities of others and who
are responsible for attaining goals in
organizations are managers.

9. Management functions
HenriFayol,aFrenchindustrialistwrote
thatmanagersperformfivefunctions.
Todaywehavecondensedthosetofour:
Planning:Defininggoals,establishing
strategy,anddevelopingplansto
coordinateactivities.
Organizing:Determiningwhattasksareto
bedone,whoistodothem,howthetasks
aretobegrouped,whoreportstowhom,
andwheredecisionsaretobemade.

10. Management functions
Continue………
Leading: includes motivating
subordinates,directingothers,selecting
the most effectivecommunication
channels,andresolvingconflicts.
Controlling:Monitoringactivitiestoensure
theyarebeingaccomplishedasplanned
andcorrectinganysignificantdeviation.

11. Management functionsContinue….
Henry Mintzberg ( 1973) observed 5 managers and
noted what they did on the job
1. Interpersonal roles
 figurehead-symbolic head -ceremonies
 leader-responsible for motivation
 liaison-outside contact
2. Informational
monitor-receives wide variety of information
disseminator-transmits information to members
spokesperson-transmits information to outsiders

12. Management functions Continue….
3.Decisional
entrepreneur-strategy and review sessions
disturbance handler-disturbance and
crises
resource allocator-scheduling, budgeting
negotiator-contract negotiation

13. Managerial Skills
1.Technical skills: The ability to apply specialized
knowledge or expertise. Many people are
technically proficient but interpersonally
incompetent.
2. Human skills: The ability to work with,
understand, and motivate other people, both
individually and in groups.
3. Conceptual skills: The mental ability to analyze
and diagnose complex situations.

14. ALLOCATION OF ACTIVITY BY TIME
Average managers
Successful managers
Effective managers

15. Successful defined in terms of the speed
of promotion.
Effective defined in terms of the quality
and quantity of their performance,
satisfaction and committment

16. Effcetive Vs. Successful managerial
activities
Luthansetal.studied450managers.These
managerswereengagedinfourmanagerial
activities.
Traditionalmanagement (T.M.):Decision
making,Planningandcontrolling.
Communication (Comm):Exchangingroutine
informationandprocesspaperwork.
Human Resource Management (H.R.M):
Motivating,disciplining,managing conflict,
staffing,training.
Networking(N.W):Socializing,politickingand
interactingwithoutsiders.

17. Average managers29%
32%
19%
20%
Comm
T.M.
N.W.
HRM

18. Successful managers28%
13%48%
11%
COMM.
T.M.
N.W.
H.R.M.

19. Effective managers44%
19%
11%
26%
Comm
T.M.
N.W.
HRM

20. Challenges and opportunities
in organizations
Changes in bonds of loyalty:
Employee is getting older
Women work force
Corporate restructuring
Cost cutting
Global competition
Innovation

21. Critical issues
Improving quality and productivity
Total quality management
A philosophy of management that is
driven by the constant attainment of
customer satisfaction through the
continuous improvement of all
organizational processes.

22. What is quality management ?
1. intense focus on the customer
2. concern for continual improvement
3. improvement in the quality of everything
the organization does.
4. accurate measurement
5. empowerment of employees.

23. Critical issues continue……
Reengineering
Reconsiders how work would be done and the
organization structured if they were being
created from scratch
Employees participation is needed in planning
any change
Improving people skills
effective listener
proper way to give performance feedback
how to delegate authority
how to create effective team
your own experience

24. Critical issues continue……
MANAGING WORK FORCE DIVERSITY
you have to become more accommodating
with regard to their:
different life style
family needs
work styles
if not managed properly it will lead to:
higher turnover
more difficult communication
more interpersonal conflict

25. Critical issues continue……
Responding to globalization/
empowering people
managersarebeingcalledcoaches,advisors,
sponsors,facilitators
decisionmakingisbeingpusheddowntothe
operatinglevelwhereworkersarebeinggiven
thefreedomtomakechoicesaboutschedules,
procedures,andsolvingworkrelatedproblems
Nowmanagershavetolearnhowtogiveup
controlandemployeeshavetolearnhowtotake
responsibility

26. Critical issues continue……
Stimulating innovation and change
stimulate employees creativity and tolerance for
change
Coping with temporariness
because of ongoing change employees have to update
their knowledge and skills
flexibility, change in teams, quality circles

27. Critical issues continue……
Declining employee loyalty
discard traditional policies on job security,
seniority, and compensation
closing factories, moving operations,
selling off less profitable business,
eliminating levels of management,
replacing permanent with temporaries
.

28. Critical issues continue……
Improving ethical behavior
Ethical dilemma: situations where an
individual is required to define right and
wrong conduct
Managers need to create an ethically
healthy climate for his or her employees,
where they can do their work productively
and confront a minimal degree of
ambiguity regarding what constitutes right
and wrong behaviour

29. Productivity, effectiveness, and
efficiency
One of the basic functions of managers is
to create surplus through higher
productivity
Output
Productivity= ___________ (within a time
Input period,quality
considered)

30. Productivity can be improved-
By increasing outputs with the same
inputs,
By decreasing inputs by maintaining the
same outputs, or
By increasing outputs and decreasing
inputs to change the ratio favourably
Inputs are:
Labour
Materials (they work in composite)
Capital

31. PLANNING
Planning is part of life
Where we are to where we want to go
Intellectually demanding process
Selecting missions and objectives and the
action to achieve them
Decision making

32. In earlier times the emphasis was on only
workers but now it has shifted to
managers
Productivity implies effectiveness and
efficiency.
Effectiveness is the achievement of
objectives
Efficiency is the achievement of the ends
with the least amount of resources
Managers cannot know whether they are
productive unless they first know their
goals and those of the organizations

33. Some Definitions
Koontz & O’Donnel: Planning is deciding in advance what
to do, how to do it, when to do it and who is to do it. It
bridges the gap from where we are to where we want to go.
Terry:Planning is the selecting and relating of facts and
the making and using of assumptions regarding the future
in the visualization and formulation of proposed activities
believed necessary to achieve desired results.
Fayol:Planning is deciding the best alternatives among
others to perform different managerial operations in order
to achieve the pre-determined goals.
Urwick:Planning is fundamentally mental pre-disposition
to do things in an orderly way to think before acting and to
get in the light of facts rather than of guesses.

34. Four aspects of planning
The contribution of planning to purpose
and objectives
The primacy of planning
The pervasiveness of planning
The efficiency of plans

35. Types of plans
Failure to recognize the various types of plans may
cause difficulty in effective planning.
Plans are varied and may be classified as:
Purposes or missions (basic function or task)
Business/ hospital/ university etc.
Objective or goals (ends) of organization as well as
of Departments.
Strategies (course of action & allocation of
resources) framework for guiding thinking and
action.
Policies (an area within which a decision is to be
made and ensure that the decision will be consistent
with and contribute to an objective).

36. Types of plans continue…..
Procedures (manner in which activities must be
accomplished)
Rules(specific required action or no-action with
no discretion).
Programmes ( a complex of goals, policies, and
other elements necessary to carry out a given
course of action ordinarily supported by budget).
Budgets (its a statement of expected results
expressed in numerical terms: finance, work
hours, machine hours).

37. Characteristics of planning
Planning is looking into the future.
Planning involves pre-determined line of action.
Planning discovers the best alternative out of
available many alternative out of available many
alternatives.
Planning requires considerable time for
implementation.
Planning is a continuous process.
Planning’s object is to achieve pre-determined
objectives in a better way.
Planning integrates various activities of
organization.

38. Characteristics of planning
continue…….
Planning is done for a specific period.
Planning not only selects the objectives but
also develops policies, programmes and
procedures to achieve the objectives.
Planning is required at all levels of
management.
Planning is an inter-dependent process which
co-ordinates the various business activities.
Planning directs the members of the
organization.
Growth and prosperity of any organization
depends upon planning.

39. Objectives of planning
Reduces uncertainty.
Brings Co-operation and Co-ordination
Economy in operation.
Anticipates unpredictable contingencies.
Achieving the pre-determined goals.
Reduces competition.

40. Nature of planning
Primary of Planning
Planning contributes to objectives
Planning an intellectual activity
Planning results in higher efficiency
Planning is a continuous process
Planning is flexible
Unity and consistency
Planning is common to all
Basis for all managerial functions
Getting co-ordination
Considering limiting factors

41. Importance of planning
Planning should take place before doing
defective and inadequate planning lead to
failure of organization
To manage by objectives
Convert uncertainty in to certainty
Economy in operation
Help in co-ordination
Tackling increasing complexities of business
Effective control
Effective utilization of resources
Avoiding business failures

42. Advantage of planning
Better utilization of resources
Helps in achieving objectives
Economy in operation
Minimises future uncertainties
Improve competitive strength
Effective control
Motivation
Co-operation

43. Advantage of planning continue….
Promote growth and improvement
Develops rationality among management
executives
Prevents hasty judgement
Reduces red-tapism
Encourage innovative thought
Improves ability to cope with change
Creates forward looking attitude in management
Development of efficient methods
Delegation of authority facilitated
Anticipation of crises

44. Steps in planning process
BEING AWARE OF OPPORTUNITY
In light of:
 The market
 Competition
 What customers want
 Our strength
 Our weaknesses
SETTING OBJECTIVE OR GOALS
Where we want to be and what we want to accomplish and when
CONSIDERING PLANNING PREMISES
In what environment-internal or external-will our plans operate ?

45. Steps in planning processcontinue…
IDENTIFYING ALTERNATIVES
What are the most promising alternatives to accomplishing our
objectives
COMPARING ALTERNATIVES IN LIGHT OF GOALS SOUGHT
Which alternative will give us the best chance of meeting our
goals at the lowest cost and highest profit
CHOOSING AN ALTERNATIVE
Selecting the course of action we will pursue
FORMULATING SUPPORTING PLANS
Such as plan to:
 Buy equipment
 Buy materials
 Hire and train workers
 Develop a new product

46. Steps in planning processcontinue…
NUMBERING PLANS BY MAKING BUDGETS
Develop such budget as:
 Volume & price of sales
 Operating expenses necessary for
plans
 Expenditure for capital
 Equipment

47. Steps in planning
Analysis of external environment
Analysis of internal environment
Determination of objectives
Determining planning premises and
constraints
Examination of alternative course of action
Weighing alternative course of action

48. Steps in planning continue…
Selection of the best alternative course of
action
Establishing the sequence of activities
Formulation of action programme
Determining secondary plans
Securing participation of employees
Follow-up and evaluation

49. Methods of planning
Objectives plans
Standing plans
Master plans

50. Limitation of planning
Inflexibility
Limitation of forecasts
Unsuitability
Time consuming
Costly
Mental ability
False sense of security
Delay during emergency period
Capital investment
Political climate
Trade unions
Technological changes

51. Obstacles in planning
Unreliability
Of forecasts
Recurrence of same type of problems
Expensive
Loss of initiative

52. DECISION-MAKING
One of the functions
Selection of alternatives
Success depends on quality of decisions
No emotionality

53. Characteristics
Decision-making is a selection process
Decision-making is the end process
Decision-making is application of
intellectual process
Decision gives happiness
Decision-making is a dynamic process
Decision-making is situational
Decision-making is to achieve objective
Decision maker has the freedom to decide
Decision-making involves evaluation
Decision may be positive or negative

54. Decision-making process
Identification of a problem
Diagnosing the problem
Collect and analyse the relevant
information
Discovery of alternative course of action
Analysing the alternatives
Screening the alternatives

55. Decision-making processcontinue…
Selection of best alternatives
A. Experience
B. Experimentation
C. Research & analysis
 Conversion of decision into action
 Implementation
Verifying the decision

56. The importance & limitations of
rational decision-making
Premising, identifying/evaluating/choosing
alternatives (making a decision)
Rationality in decision making
Limited, or bounded, rationality
The search for alternatives
Evaluation of alternatives
Quantitative and qualitative factors
Marginal analysis
Cost effectiveness analysis

57. Selecting an alternative: Three approaches
Experience
Experimentation
Research and analysis

58. Programmed & nonprogrammed
decision
Decision making under creativity,
uncertainty, & risk
Modern approaches to decision making
under uncertainty
Risk analysis
Decision trees
Preference theory-
Attitudes toward risk
Personal risk or preference curves

59. Evaluating the importance of a decision
Decision support system

60. Creativity and innovation
The creative process
Techniques to enhance creativity-
Brainstorming
Synectics
Limitation of traditional group discussion
The creative manager
The systems approach & decision
approach

61. Principles of decision-making
Marginal theory of decision-making
Mathematical theory
Psychological theory
Principle of alternatives
Principle of limiting factors
Principle of participation

62. Effective decision
Action orientation
Goal direction
Efficiency in implementation

63. Administrative problem in decision-making
Accuracy
Environment for decision
Timely decision
Communication of decision
Participative decision-making
Implementation

64. Types of decisions
Programmed decision
Non-programmed decision
Major decision
Minor decision
Operative decision
Organisational decision
Personal decision
Individual decision
Group decision
Departmental decision

65. Types of decisions continue…
Non-economic decision
Crisis decision
Research decision
Problem decision
Opportunity decision
Certainty decision
Uncertainty decision

66. Personal phase of decision-making
Intelligence
Education
Experience
Courage
Motivation
Forecasting ability
Self-confidence

67. ORGANIZING: Designing & maintaining organizational roles
is basically the managerial function of organizing
Organizational role incorporate:
-verifiable objective
-a clear idea of major duties or activities involved
-an understood area of discretion or authority
-provision for supplying needed information & other
necessary tools
Thus organizing means :
-the identification & classification of required activities
-the grouping of activities necessary to attain objectives
-the assignment of each grouping to a manager with the
authority (delegation) necessary to supervise it
-the provision for coordination horizontally & vertically in
the organization structure.

68. Formal Organization:
The intentional structure of roles.
Informal Organization:
A network of personal and social relations
neither established nor required by formal
authority but arising spontaneously.
Organizational Division: The Department
-It is a distinct area, division, or branch
of an organization over which a manager
has authority for the performance of
specified activities.

69. Organization level and
span of Management

70. SpanofManagement refersto
thenumberofpeopleamanager
caneffectivelysupervise.

71. Organization with Narrow Spans
Advantages:
-Close supervision
-Close control
-Fast communication between subordinates and
superiors
Disadvantages:
-Supervisors tend to get too involved in
subordinates' work
-Many levels of management
-High costs due to many levels
-Excessive distance between lowest level and top
level

72. Organization with Wide Spans
Advantages:
-Superiors are forced to delegate
-Clear policies must be made
-Subordinates must be carefully selected
Disadvantages:
-Tendency of overloaded superiors to
become decision bottlenecks
-Danger of superior's loss of control
-Requires exceptional quality of managers

73. Problems with Organization levels
Expensive
Complicate communication
Complicate planning and control

74. Factors determining an effective span:
Training of subordinates
Clarity of delegation of authority
Clarity of plans
Use of objective standards
Rate of change
Communication Techniques
Amount of Personal Contact Needed
Variation by Organizational level

75. The Structure and
Process of Organization

76. The Logic of Organizing:
Establishing enterprise objectives
Formulating supporting objectives, policies, and plans
Identifying and classifying the activities necessary to
accomplish these
Grouping these activities in light of the human and material
resources available and the best way, under the
circumstances, of using them
Delegating to the head of each group the authority
necessary to perform the activities
Tying the group together horizontally and vertically,
through authority relationships and information flows

77. Departmentation
Departmentation by simple numbers
Departmentation by time
Departmentation by enterprise function
Departmentation by territory or geography
Customer Departmentation
Process or equipment Departmentation
Departmentation by product

78. Matrix Organization
Why Matrix management is used
Variation in practice
Problems with Matrix Management
Guidelines for making Matrix Management
effective
Strategic Business Units (SBUs)

79. Authority & power
Line & staff concepts
Functional Authority
Benefits of Staff
Limitations of Staff
-danger of undermining line authority
-lack of staff responsibility
-thinking in a vacuum
-managerial problems

80. Decentralization of authority
Nature & Kinds
Delegation of authority
How authority is delegated
Splintered authority
Recovery of delegated authority

81. The art of delegation
-personal attitude toward delegation
 receptiveness
 willingness to let go
 willingness to let others make mistakes
 willingness to trust subordinates
 willingness to establish and use broad
controls

82. Guides for overcoming weak
delegation
define assignments and delegate
authority in light of results expected
Select the person in light of the job to
be done
Maintain open lines of communication
Establish proper controls
reward effective delegation and successful
assumption of authority

83. Factors determining the degree of
decentralization of authority
-Costliness of the decision
-Desire for uniformity of policy
-size and character of the organization
-History and culture of the enterprise
-management philosophy
-desire for independence
-Availability of managers
-Control techniques
-Decentralized performance
-Business dynamics: The pace of change
-Environmental influences

84. Recentralization of authority & balance as
the key to decentralization
SOME MISTAKES IN ORGANIZING
-failure to plan properly
-failure to clarify relationship
-failure to delegate authority
-failure to balance delegation
-confusion of lines of authority with lines
of information
-granting authority without exacting
responsibility
-holding people responsible who do not
have authority

85. SOME MISTAKES IN ORGANIZING continue,…
-careless application of the staff device
-misuse of functional authority
-multiple subordination
-misunderstanding of the function of
service department
-overorganization and underorganization

86. Avoiding mistakes in organizing by
planning
-planning for the ideal
-modification for the human factors
-advantages of organization planning

87. Avoiding organizational inflexibility
-signs of inflexibility
-avoiding inflexibility through
reorganization
-need for readjustment and change

88. Making staff work effective
-understanding authority relationships
-making line listen to staff
-keeping staff informed
-requiring completed staff work
-making staff work as a way of
organizational life

89. Avoiding conflict by clarification
-organization charts
-position descriptions

90. Ensuring understanding of organizing
-teaching the nature of organizing
-recognizing the importance of informal
organization and the grapevine