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1. Principles and Practices of Management UNIT - 1

2. M A N A G E --------------------- M E N ----------------------------- T ( TACTFULLY)

3. MANAGEMENT MAN / AGE/ MEN/ T MAN KNOWLEDGE MEN TECHNOLOGY

4. DEFINITIONS: “Management is the art of getting things done through and with people in formally organized groups ” --- Koontz “Management is the art of getting things done through and with people” --- Mary Parker “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 the accomplishment of results through the efforts of other people” --- Lawrence “Management is to manage is to forecast and plan, to organize, to command, to coordinate and contro l”. -- Henry Fayol  

5. Why Management????

6. Why Management is Important ? Management meet the challenge of change It helps in meeting all the challenges of change by effective utilization of resources . Accomplishment of group goals By coordinating the activities of various dept. and employee management helps in achieving organizational goals. Effective utilization of resources Guidance and supervision the employees helps in effective utilization of resources. Effective functioning of business Management helps of proper functioning by coordinating the various depts. of business.

7. Bring order to Endeavour It helps in directing efforts of all individuals in one direction and bring uniformity in their efforts which leads to systematic working of the organization . Maintain discipline It helps in maintaining discipline by directing and controlling the activity of employees in the organization . Maximize productivity It improves production by increasing efficiency of employees . Providing judgement and vision It helps in taking right decision at right time and maintain equilibrium and balance of working.

8. DEFINITIONS OF MANAGEMENT Management is a multipurpose organ that manage a business and manages Managers and manages Workers and work. —Peter Drucker Management is a distinct process consisting of planning, organising , actuating and controlling performance to determine and accomplish the objectives by the use of people and resources” – -George R. Terry Management is the task of Manager to establish and maintain an internal environment in which people working together in groups can perform effectively and efficiently towards the attainment of group goals. Koontz and O’ DonnelL

9. Management as an Art, Science and Profession To decide whether management is science, art or profession, one has to comprehend the characteristics and definitions of science, art and profession and associate them with management definition and traits. ART DEALS WITH CREATIVITY SCIENCE DEALS WITH LAWS MANAGEMENT DEALS WITH PRINCIPLES

10. Management as an Art: Art is the experienced and personal utilisation of subsisting information to accomplish solicited outcomes. It can be procured via education, research and practice. As art is involved with the personal utilisation of data some kind of inventiveness and creativity is needed to follow the fundamental systems acquired. The essential characteristics of art are as follows: The presence of theoretical knowledge : Art assumes the presence of specific academic knowledge. Specialists in their particular fields have obtained specific elementary postulates which are appropriate to a specific sort of art. For instance, the literature on public speaking, acting or music, dancing is publicly acknowledged. Personalised application : The application of this primary information differs from person to person. Art, hence, is a highly personalised notion. Based on custom and creativity : Art is practical. Art includes the creative practice of subsisting intellectual knowledge. We know that music is based on 7 notes. However, what makes the style of a musician different or distinctive is his performance of these notes in an artistic way that is uniquely his own solution.

11. Management as a Science Science is an organised collection of knowledge that emphasises definite universal truths or the action of comprehensive laws. The central characteristics of science are as follows: The organised body of knowledge : Science is a precise entity of knowledge. Its systems are based on a purpose and consequence association. Universal validity : Scientific conventions have global genuineness and application. Systems based on experimentation : Scientific conventions are originally formed via research and then tested via repeated trial and error under the regulated situations.

12. Management as a Profession The profession can be described as an occupation upheld by specific education and practice, in which entry is limited. A profession has the following features: The well-defined theory of knowledge : All services are based on a well-defined form of education that can be procured through education. Restricted entry : The entrance to a profession is defined through an examination or through obtaining an educational degree. For instance, to become a chartered accountant in India an aspirant has to clear a detailed examination regulated by the Institute of Chartered Accountants of India (ICAI). Professional community : All professions are affiliated to a professional association which controls entry, presents a certificate of training and expresses and supports a system of government. To be qualified to study in India, lawyers have to become members of the Bar Council which monitors and regulates their actions.

13. Manager = ?

14. Who managers are? Someone who coordinates and oversees the work of other people in order to accomplish organizational goals .

15. How many level of managers can we classify?

16. How to classify managers in organizations? Traditional Pyramid Form of Management Level Top Managers Middle Managers First-Line Managers Non-Managerial Employees Functional Areas R&D Marketing Finance Production HR

17. I. Lowest Level of Management First-line managers: manage the work of non managerial employees who typically are involve with producing the organization’s products or servicing the organization’s customer They are often called: supervisor, shift manager, district manager, department manager, office manager

18. II. Middle Level of Management Middle managers: manage work of first-line managers They are often called: regional manager, project leader, store manager, division manager

19. III. Upper Level of Management Top managers: are responsible for making organization wide decisions and establishing the plans and goals that affect the entire organization. They are often called: executive vice president, president, managing director, chief operating officer, chief executive officer

20. What is Management? Management involves coordinating and overseeing the work activities of others so that their activities are completed efficiently and effectively . Or Management is the art of getting work done through others

21. Important Words for Management: Efficiency and Effectiveness

22. Efficiency and Effectiveness Efficiency Efficiency = getting the most output from the least amount of inputs “doing things right” concern with means (ways) of getting things done Effectiveness Effectiveness = do those work activities that will help the organization reach its goals “doing the right things” concern with ends (result) of organizational goal achievement

23. Efficiency and Effectiveness Efficiency Efficiency = getting work done with a minimum effort, expense, or waste (use resources – people, money, raw materials– wisely and cost-effectively ) Effectiveness Effectiveness = accomplish tasks that help fulfill organizational objectives (make the right decisions and successfully carry them out to accomplish the org. goal)

24. Efficiency and Effectiveness in Management Resource Usage Goal Attainment Management Strives for: Low Resource Waste ( high efficiency ) High Goal Attainment ( high effectiveness ) Low Waste High Attainment Efficiency (Means) Effectiveness (Ends)

25. Management Functions PLANNING ORGANIZING LEADING CONTROLLING MANAGER

26. 1. PLANNING Define goals Establish strategies for achieving those goals Develop plans to integrate and coordinate activities Setting goals and plans (how to achieve them)

27. 2. ORGANIZING Determine What tasks are to be done ? Who is to do them ? How tasks are to be grouped ? Who reports to whom ? Where decisions are to be made ? Arrange tasks and other resources to accomplish organization’s goals

28. 3. LEADING Motivate subordinates(lower positions) Help resolve group conflicts Influence individuals or teams as they work Select the most effective communication channel Deal with employee behavior issues Hire, train, motivate (lead) people

29. 4. CONTROLLING Monitor activities’ performance Compare actual performance with the set goals Evaluate activities’ performance whether things are going as planed Correct any disturbance to get work back on track and achieve the set goals Ensure all activities are accomplished as planne d

30. POSDCORB POSDCORB is a word composed of the initials of the functions of the executives. POSDCORB is developed by Luther Gulick POSDCORB lists the functions of the executives according to Luther Gulick who was a well known member of the classical school. POSDCORB includes seven functions.

31. P defining goals, establishing strategy to meet them, establish plans to coordinate activities, outline methods for doing them to accomplish purpose set by the cooperative O Determining what tasks are to be done, establish the formal structure which work are arranged, defined and coordinated for the defined objective S Staffing is the whole personnel function of bringing in and training the staff and maintaining favorable conditions of work D Directing is the continuous task of making decisions and embodying them in specific and general orders and instructions and serving as the leader of the cooperative Co Coordinating is the all-important duty of interrelating the various parts of the work R Reporting is keeping those to whom the executive is responsible informed as to what is going on, which thus includes keeping himself and his subordinates informed through records, research and inspections B Budgeting, with all that goes with budgeting in the form of fiscal planning, accounting and control.

32. Nature of Management: Universal Process : Wherever there exists human pursuit, there exists management. Without effective management, the intentions of the organisation cannot be accomplished. The factor of Production : Equipped and experienced managers are necessary for the utilisation of funds and labour . Goal-Oriented : The most significant aim of all management pursuit is to achieve the purposes of a firm. The aims must be practical and reachable. Supreme in Thought and Action : Managers set achievable goals and then direct execution on all aspects to achieve them. For this, they need complete assistance from middle and lower degrees of management. The system of authority : Well-defined principles of regulation, the regulation of proper power and efficiency at all degrees of decision-making. This is important so that each self must perform what is required from him or her and to whom he must report. Profession : Managers require to control managerial expertise and education, and have to adhere to a verified law of demeanour and stay informed of their human and social responsibilities. Process : The management method incorporates a range of activities or services directed towards an object.

33. Concept of Management Management as group of people Management as process Management as discipline Management as Technology

34. Significance of Management: Achieving Group Goals:  Management encourages collaboration and coordination amongst workers. A general control must be provided to the organisational and personal objectives in order to favourably accomplish the aims. Increases Efficiency:  Management improves productivity by managing resources in a reliable conceivable way in order to decrease cost upscale potency. Creates Dynamic organisation :  Management undertakes the conditions by assuring that these variations are well accepted privately and that objection to change is controlled. Achieving personal objectives:  Management promotes leadership and furnishes motivation to the employees to operate effectively in order to accomplish their personal aims while working towards the organisational goals. Development of Society:  Management helps in the enhancement of community by manufacturing reliable quality commodities, establishing employment chances and fostering innovative technologies.

35. MANAGEMENT ROLES AND SKILLS Specific actions or behaviors expected of a manager 3 types of managerial roles : Interpersonal Informational D ecisional

36. Mintzberg’s Managerial Roles Interpersonal Roles: involve people (subordinates and person outside the organization) and other duties that are ceremonial and symbolic in nature Informational Roles: involve collecting, receiving, and disseminating information Decisional Roles: entail making decisions or choices

37. Mintzberg groups managerial activities and roles as involving: Managerial activities Associated roles I nterpersonal roles: arising from formal authority and status and supporting the information and decision activities. figurehead liaison leader Informational roles monitor disseminator spokesman D ecisional roles: making significant decisions improver/changer (entrepreneur) disturbance handler resource allocator negotiator

38. 1. Interpersonal Roles Figurehead: P erform ceremonial duties like greeting company visitors, speaking at the opening of a new facility, or representing the company at a community luncheon to support local charities.

39. 1. Interpersonal Roles (Cont) Leader: motivate and encourage workers to accomplish organizational objectives Liaison: deal with people outside their units to develop alliances that will help in organisational goal achievement.

40. 2. Informational Roles Monitor: scan environment for information, actively contact others for information, continually update news/ stories related to their business (inside and outside org .) Disseminator : share the information they have collected with their subordinates and others in the company Spokesperson: share information with people outside their departments and companies

41. 3. Decisional Roles Entrepreneur: adapt themselves, their subordinates, and their units to change/ innovation Disturbance Handler: respond to pressures and problems demand immediate attention and action

42. 3. Decisional Roles (Cont) Resource Allocator: set priorities and decide about use of resources Negotiator: continual negotiate schedules, projects, goals, outcomes, resources, and employee raises in order to accomplish the goals

43. Management Skills

44. Management Skills Technical Skills: job-specific knowledge and techniques needed to proficiently perform work tasks Human Skills: ability to work well with other people both individually and in group Conceptual Skills: ability to see the organization as a whole, understand the relationships among various subunits, visualize how the organization fits into its external environment

45. Skills Needed at Different Managerial Levels Human Skills Conceptual Skills Technical Skills Top Managers Middle Managers Low-Level Managers *Dark color = necessary to have

46. Manager Skills Conceptual Technical Human Decision making Problem Solving

47. Conceptual Skills Ability to see the ‘big picture’, to recognize and understand significant elements in a situation. Creation Phase : Establish positive thinking Develop creative ideas Combine Refine Re - arrange Simplify

48. Technical Skills Knowledge of and proficiency in activities involving methods, processes and procedures. Development of your technical skills as an integral part of your personal development Strong technical skills can save you time and increase income

49. Human Skills Ability to work with people. Creation of an environment in which people feel secure and free to express their opinions. HR i s most important career skill One’s ability to get along is the single most important factor affecting chances of success in the workplace

50. Decision Making Skill Simple tips : get all the facts weigh decide act Post Implementation : monitor verify results document celebrate success Ability to solve problems that will benefit enterprise . Also ability to design a workable solution to the problems and to avoid them in future

51. The Differences Between Administraton and Management

52. Management Versus Administration Basis For Comparison Management Administration Meaning An organized way of managing people and things of a business organization is called the Management. The process of administering an organization by a group of people is known as the Administration. Authority Middle and Lower Level Top level Role Executive Top level Applicable to Profit making organizations, i.e. business organizations Government offices, military, clubs, business Work Putting plans and policies into actions. Formulation of plans, framing policies and setting objectives Function Executive and Governing Legislative and Determinative Focus on Managing work Making best possible allocation of limited resources.

53. Contribution of F. W. Taylor in Scientific Management Management is often described as “ oldest of the arts and youngest of the sciences.”   Who was the F. W. Taylor? F. W. Taylor (1856-1915)  was an American  mechanical engineer  who sought to improve  industrial efficiency . He was one of the first  management consultants . Taylor was one of the intellectual leaders of the  Efficiency Movement  and his ideas, broadly conceived, were highly influential in the  Progressive Era (1890s–1920s). Taylor summed up his efficiency techniques in his book  The Principles of Scientific Management .

54. Salient Features of Scientific Management Taylor conducted various experiments at the work place to find out how to human beings could be mad more efficient by standardizing the work which as follow:- i .    Separation of Planning and doing Taylor introduced the separation of Planning from actual doing we know that in before Taylor’s Scientific management, a worker used to plan about how he had to work and what instruments were necessary for doing that work for the reason of being that this was creating lot of problems. Taylor insisted that planning should be left to on the shoulder of supervisor’s and the workers should concentrate on work what work has been assigned to him.   ii.    Functional Foremanship At above we have seen that all planning has been moved to shoulder of supervisor shoulder so from ding resulted in the development of supervision system. For this purpose. Taylor developed the concept of functional foremanship based on specialization of functions. iii.   Job analysis According to Taylor the best way of doing a job is one which requires the least movement what is the mean of least movement, consequently less time and cost. He analyzed the various jobs to find out the best way of doing things with the help of time and motion and fatigue study. Time  study involves the determination of time. A movement taken to complete. Motion  study involves the stud of movements which involved in doing job.  Fatigue  study shows the amount and frequency of rest requirement in completing the work. 

55. iv.   Standardization For this point, instruments and tools, period of work, amount of work, working condition and cost of the production have to be standardized on the basis of job analysis. v.   Scientific Selection and Training of Workers Taylor suggested that workers should be selected on scientific basis which would their education, work experience, aptitude, physical, strength weakness etc. Apart from selection given to them training to make them efficient and effective. vi. Financial Incentive Taylor also introduced this concept financial incentive to motivate workers to put in maximum efforts in their works. He introduced different scheme to give them incentive. He also suggested that wages should be based on individual performance. vii.Mental Revolution Taylor strongly suggested a change in the attitude of employers and employees. Mutual conflict should be replaced by mutual cooperation which is beneficial to both. Taylor argued mental revolution is the most important features of scientific management because in its absence, no principle of scientific management could be applied.

56. “The principles of Scientific Management” rested on the following four basic principles:- The development of a true science of management, so that the best method for performing each  task could be determined . The scientific selection of the workers, so that each worker would be given  responsibility for the task for which he or she was best suited .    The  scientific education and development  of the workers. Intimate,  friendly to-operation  between management and labour .

57. Henri Fayol 14 Principles of Management Henry Fayol , also known as the ‘father of modern management theory’ gave a new perception of the concept of management. He introduced a general theory that can be applied to all levels of management and every department. The Fayol theory is practised by the managers to organize and regulate the internal activities of an organization. He concentrated on accomplishing managerial efficiency. The fourteen principles of management created by Henri Fayol are explained below. 1. Division of Work- Henri believed that segregating work in the workforce amongst the worker will enhance the quality of the product. Similarly, he also concluded that the division of work improves the productivity, efficiency, accuracy and speed of the workers. This principle is appropriate for both the managerial as well as a technical work level. 2. Authority and Responsibility- These are the two key aspects of management. Authority facilitates the management to work efficiently, and responsibility makes them responsible for the work done under their guidance or leadership. 3. Discipline- Without discipline, nothing can be accomplished. It is the core value for any project or any management. Good performance and sensible interrelation make the management job easy and comprehensive. Employees good behaviour also helps them smoothly build and progress in their professional careers. 4. Unity of Command- This means an employee should have only one boss and follow his command. If an employee has to follow more than one boss, there begins a conflict of interest and can create confusion.

58. 5. Unity of Direction- Whoever is engaged in the same activity should have a unified goal. This means all the person working in a company should have one goal and motive which will make the work easier and achieve the set goal easily. 6. Subordination of Individual Interest- This indicates a company should work unitedly towards the interest of a company rather than personal interest. Be subordinate to the purposes of an organization. This refers to the whole chain of command in a company. 7. Remuneration- This plays an important role in motivating the workers of a company. Remuneration can be monetary or non-monetary. However, it should be according to an individual’s efforts they have made. 8. Centralization- In any company, the management or any authority responsible for the decision-making process should be neutral. However, this depends on the size of an organization. Henri Fayol stressed on the point that there should be a balance between the hierarchy and division of power. 9. Scalar Chain- Fayol on this principle highlights that the hierarchy steps should be from the top to the lowest. This is necessary so that every employee knows their immediate senior also they should be able to contact any, if needed.

59. 10. Order- A company should maintain a well-defined work order to have a favourable work culture. The positive atmosphere in the workplace will boost more positive productivity. 11. Equity- All employees should be treated equally and respectfully. It’s the responsibility of a manager that no employees face discrimination. 12. Stability- An employee delivers the best if they feel secure in their job. It is the duty of the management to offer job security to their employees. 13. Initiative- The management should support and encourage the employees to take initiatives in an organization. It will help them to increase their interest and make then worth. 14. Esprit de Corps- It is the responsibility of the management to motivate their employees and be supportive of each other regularly. Developing trust and mutual understanding will lead to a positive outcome and work environment.

60. 4 Main Contribution of Mayo in Developing Management Thought Some of the major contribution of mayo in developing management thought are as follows: 1. Human Relations Approach 2. Non-Economic Awards 3. Social Man 4. Organisation as a Social System.

61. 1. Human Relations Approach: Mayo is rightly called the father of human relations movement. His ideas were a milestone and a turning point in human relations approach of the management. He recognised the importance of human beings in management. He said that human beings are complex and influential input into organisational performance. The social and psychological needs of human beings cannot be ignored, if management wants to enhance productivity. 2. Non-Economic Awards: The earlier assumption was that workers will work more if they are offered more monetary incentives. Taylor was the main proponent of this approach. Elton Mayo said that the techniques of economic incentives were not only inadequate but also unrealistic. He was able to show that humane and respectful treatment, sense of participation and belonging, recognition, morale, human pride and social interaction are sometimes more important than pure monetary rewards.

62. 3. Social Man: Mayo developed a concept of ‘social man’. He said that man is basically motivated by social needs and obtains his sense of identity through relationships with others. He is more responsive to the social forces of the informal group rather than managerial incentives and controls. He also related productivity to a social phenomenon. 4.  Organisation as a Social System: Mayo was of the view that informal relationships in the organisation are more effective than formal relationships. People form informal groups to give a bent to their feelings and seek guidance for action from such groups.

63. STATEMET OF MAYO In Mayo’s words, “An organisation is a social system, a system of cliques, grapevines, informal status systems, rituals and a minute of logical, non-logical and illogical behaviour .” He was of the opinion that managers should maintain an equilibrium between the logic of efficiency’ demanded by the formal organisation . He thought that besides logic and facts people are also guided by sentiments and feelings.

64. Social responsibility Social responsibility is  an ethical theory in which individuals are accountable for fulfilling their civic duty, and the actions of an individual must benefit the whole of society . In this way, there must be a balance between economic growth and the welfare of society and the environment.

65. Four types of social responsibility There are four types of social responsibility which we’ll be discussing in this article: Environmental responsibility Human Rights/Ethical responsibility Philanthropic responsibility (aim goal for the society) Economic responsibility Follow along to learn how to address each type of responsibility to engage employees, improve branding, and make a positive social impact.

66. Business Ethics It's essential to understand the underlying principles that drive desired ethical behavior and how a lack of these moral principles contributes to the downfall of many otherwise intelligent, talented people and the businesses they represent. There are generally 12 business ethics principles: Leadership : The conscious effort to adopt, integrate, and emulate the other 11 principles to guide decisions and behavior in all aspects of professional and personal life. Accountability :  Holding yourself  and others responsible for their actions. Commitment to following ethical practices and ensuring others follow ethics guidelines. Integrity : Incorporates other principles—honesty, trustworthiness, and reliability. Someone with integrity consistently does the right thing and strives to hold themselves to a higher standard. Respect for others : To foster ethical behavior and environments in the workplace, respecting others is a critical component. Everyone deserves dignity, privacy, equality, opportunity, compassion, and empathy.

67. Honesty : Truth in all matters is key to fostering an ethical climate. Partial truths, omissions, and under or overstating don't help a business improve its performance. Bad news should be communicated and received in the same manner as good news so that solutions can be developed. Respect for laws : Ethical leadership should include enforcing all local, state, and federal laws. If there is a legal grey area, leaders should err on the side of legality rather than exploiting a gap. Responsibility : Promote ownership within an organization, allow employees to be responsible for their work, and be accountable for yours. Transparency : Stakeholders are people with an interest in a business, such as shareholders, employees, the community a firm operates in, and the family members of the employees. Without divulging trade secrets, companies should ensure information about their financials, price changes, hiring and firing practices, wages and salaries, and promotions are available to those interested in the business's success.

68. Compassion : Employees, the community surrounding a business, business partners, and customers should all be treated with concern for their well-being. Fairness : Everyone should have the same opportunities and be treated the same. If a practice or behavior would make you feel uncomfortable or place personal or corporate benefit in front of equality, common courtesy, and respect, it is likely not fair. Loyalty : Leadership should demonstrate confidentially and commitment to their employees and the company. Inspiring loyalty in employees and management ensures that they are committed to best practices. Environmental concern : In a world where resources are limited, ecosystems have been damaged by past practices, and the climate is changing, it is of utmost importance to be aware of and concerned about the environmental impacts a business has. All employees should be encouraged to discover and report solutions for practices that can add to damages already done.

69. Thank you