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A Global and Entrepreneurial Perspective

MANAGEMENT


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PRINCIPLES OF MANAGEMENT

Sr. No. Chapter No. Chapter Heading

1 1 Management: Science, Theory and Practice (27th September 2010)

2 4 Essentials of Planning and Managing by Objectives

3 5 Strategies, Policies and Planning Premises

4 6 Decision Making

5 7 The Nature of Organizing, Entrepreneuring, and Reengineering6 8 Organization Structure: Departmentation

7 9 Line/ Staff Authority, Empowerment and Decentralization

8 10 Effective Organizing and Organization Culture

9 14 Human Factors and Motivation

10 15 Leadership

11 16 Committees, Teams and Group Decision Making

12 18 The System and Process of Controlling

Sessional Evaluation External Evaluation

15 15 20 50 50

Quiz per Class Assignment & Presentation Mid-term Total Sessional External Exam


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Chapter 1

Management: Science, Theory and

Practice


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TABLE OF CONTENTS

1. Definition of Management: Its nature and purpose

2. Managing: Science or Art

3. The Evolution of Management Theory

4. Patterns of Management Analysis: A managementTheory Jungle

5. The Systems approach to management process

6. The functions of Managers


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1. Definition of Management

Management is the process of designing andmaintaining an environment in which individuals

working together in groups, efficiently accomplish

selected aims.

Organization is a group of people working

together to create a surplus. In business

organizations, this surplus is profit, other wise it

may be satisfaction of needs etc


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Steve Jobs At AppleBill Ford Jr at

Ford MotorsJack Welch at GE

Bill Gates at MicrosoftObama , US


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Functions of Management


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External Elements that affect operations:

economic, Technological, social, ecological, political and ethical factors

Enterprise: A business, government agency, hospital, university or any other type

of organization

Managerial Functions at Different organizational levels:

Managerial functions are performed by managers, executives, administrators,

supervisors etc in their specific roles but the time spent in performing these

functions is different at different levels, as shown in the picture

Managerial Skills at Different Organizational levels:Four Managerial skills may be listed down;

Technical, Human, Conceptual and Design Skills.

These skills are critical for the managers at different levels

As shown in the picture, higher the level,

higher is the importance of Conceptual skills and like wise


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PRODUCTIVITY, EFFECTIVENESS AND

EFFICIENCY

PRODUCTIVITY: The output- input ratio within a time period with due

consideration for quality

Productivity = Outputs/ Inputs (within a time period, quality considered)

Inputs are Labor, material and capital

EFFECTIVENESS:

It is the achievement of objectives

EFFICIENCY:Achievement of the ends with the least amount of

resources


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2. MANAGING: SCIENCE OR ART

Managing as practice is an art; theorganized knowledge underlying is a

science


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3. EVOLUTION OF MANAGEMENT THOUGHT

1. Frederick Taylor and ScientificManagement

2. Henri Fayol, The father of Modern

Management Theory3. Elton Mayo and F.J. Roethlisberger and

the Hawthorne Studies


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Frederick Taylor and Scientific

Management

Taylors principles of scientific management werepublished in 1911. These were:

Replacing rule of thumb with science (organized

knowledge)

Obtaining harmony, rather than discord, in group action

Achieving cooperation of human beings rather than

chaotic individualism

Working for maximum output, rather than restricted

output Developing all workers to the fullest extent possible for

their own and their companys highest prosperity


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HENRY FAYOL, THE FATHER OF

MODERN MANAGEMENT THEORY

Henri Fayol, the father of modernmanagement theory, gave 14

principles of management, noting that

they are flexible and usable in all

organizational settings, some are asfollows:

Authority and Responsibility

Unity of Command

Scalar chain

Espirit de corps (in union is strength)


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ELTON MAYO & F.J. ROETHLISBERGER

AND THE HAWTHORNE STUDIES

Hawthorne studies were conducted to understand theeffect of light and other factors on workers and productivity.

After Mayo continuing the experiments realized thatchanging illumination for the test group, modifying restperiods, shortening workdays and varying incentive pay

systems did not have a direct impact on productivity He found in general, the change in productivity was due to

social factors such as; morale, satisfactoryinterrelationships and effective management.

Interpersonal skills such as motivating, counseling, leading

and communicating were the majors factors which playedpart in improving productivity.

The phenomenon of being noticed has been named asHawthorne Studies


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4. PATTERNS OF MANAGEMENT ANALYSIS:

A MANAGEMENT THEORY JUNGLE

The management roles approach

The management process, or operational approach


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THE MANAGERIAL ROLES

APPROACH

Given by Henry Mintzberg of McGill University He explained that the managers have 10 roles which may be

categorized as follows:

Interpersonal Roles:

The figurehead role (the representative)

The leader role The liaison role (with outsiders)

Informational Roles

The recipient role (receiving info from outside)

The disseminator role (passing info)

The spokesperson role (transmitting info outside the org)

Decision Roles:

The entrepreneurial role

The disturbance-handler role

The resource allocator role

The negotiator role


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THE MANAGERIAL ROLES

APPROACH

Criticism on Mintzberg: The sample containing five CEOs was far too small for the study

Managers do some tasks other than managerial tasks like

relationship building etc

Most of the activities are directly related to the primary managerial

functions themselves


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THE MANAGEMENT PROCESS, OR

OPERATIONAL APPROACH

The management process or operational, approachdraws together the pertinent knowledge of

management by relating it to the managerial job.

Th t h t th


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The systems approach to the

management process The enterprise receives inputs, transforms them and

exports the outputs to the environment

INPUTS

TRANSFORMATIONPROCESS

Outputs

Re-energizing the

System

External

Environment


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Managerial Knowledge, Goalsof claimants, and use of Inputs

Planning

Organizing

Staffing

Leading

Controlling

To produce Outputs

CommunicationRe-energizing the

System

Goal Inputs:

Employees, Consumers,

Suppliers, Stock holders,

Governments, Community etc

Inputs:

Human, Capital,

Managerial,

Technological

Outputs:

Products, Services,

Profits, Satisfaction, GoalIntegration, Others

External

Variables

andInformation:

Opportunities,

Constraints

and others


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INPUTS AND CLAIMANTS:

Inputs are people, capital, managerial skills, technical knowledgeand skills

THE MANAGERIAL TRANSFORMATIONAL PROCESS: The task of managers is to transform the inputs, in an effective

and efficient manner into outputs

THE COMMUNICATION SYSTEM: It integrates the managerial functions

Effective leadership and motivation in the employees could onlybe gained by communication

It helps in corrective measures after identification of errorsthrough communication

It also links the enterprise with the external environment

It helps in identification of customer needs

It helps awareness of the competition and other potential threats


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EXTERNAL VARIABLES:

OUTPUTS

Products, services, profits, satisfaction, integration of the

goals of claimants to the organization

REENERGIZING THE SYSTEM

The transformation of output into the inputs such as

knowledge or skills, profits, capital goods etc


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THE FUNCTIONS OF MANAGERS PLANNING

Selecting missions and objectives as well as the actions to achieve

them, which requires decision making ORGANIZING

Establishing an intentional structure of roles for people to fill in anorganization

STAFFING

Filling, and keeping filled, the positions in the organization structure LEADING

Influencing people so that they will contribute to organizational andgroup goals

CONTROLLING

Measuring and correcting individual and organizational performanceto ensure that events conform to plans

COORDINATING

It is the essence of managership, for achieving harmony amongindividuals efforts towards the accomplishment of group goals

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