Management processes

Management ProcessesManagement Processes

Confidential to SoftTech Engineers Pvt. Ltd. Pune

PRINCIPLES OF MANAGEMENT

MANAGEMENT CONCEPT• Management is getting work done and not the performance

of operational work.• Management is getting work done through people since

there are people at the root of manual, mechanised and even automated work.

• Management is getting work done through other people and since these other people may not have self-direction, self-motivation and self control, special managerial effort is to motivate, diRect, coordinate and control them.

05/03/23 2Confidential to SoftTech Engineers Pvt. Ltd. Pune


• Management is getting work done with people the idea being to ensure feeling of oneness and belonging as also co-operation and goodwill.

• Management may be spelt as “MANAGEMENT” where “T” stands for tactfully. If mathematical, commodity and mechanistic approaches are avoided or minimally used, people at work will be more productive Live and ‘satisfied.



• Management means people who manage, namely, top Management, Middle, Management and Lower Management.

• Management also means Managerial work including Planning, Organising, Directing and controlling.


• Division of work: Also called “specialisation”, it refers to systematic division and subdivision of work so that special categories of work are created and experts or specialists appointed accordingly.


FAYOL’S PRINCIPLES OF MANAGEMENT


• Authority and Responsibility: It is necessary that the superior delegates to his

subordinates just enough authority. Less authority than necessary, makes it difficult for the subordinate to perform his duties efficiently and more authority than necessary is likely to be misused by the subordinate. Thus the parity of responsibility and authority is necessary for efficient performance.

05/03/23 6

• Discipline: For securing smooth working, discipline is necessary. In this

regard, there must be clear and fair agreements on objectives policies, procedures and rules and that these must be respected and put into practice by all members of the organization.



• Unity of Command : It is an arrangement whereby a subordinate receives

commands that is instructions, orders, advice, guidelines, directives etc. from only one superior and hence it is also called “one boss” principles. Multiplicity of bosses is avoided and as a result the subordinates get co-ordinated instructions.



• Unity of Direction : There should be one head and one plan for a group of

activities having the same objective. The result is unity of action, coordination of strength and focusing of effort and therefore the proper direction of work.



• Subordination of Individual Interest to General Interest :

The interest of one employee or group of employees must not prevail over that of the concern although this is so obvious; it is lost sight of because of ignorance, ambition, selfishness, laziness and weaknesses.



• Remuneration of Personnel: This should be fair and equitable from the point of view of the

employers and the employees. This will increase employee motivation and decrease employee-exploitation.



• Centralisation: Everything that increases the importance of subordinate’s

role is decentralisation and vice-a-versa. Whether there should be more centralisation or less depends on needs of a situation. That is “Optimum centralisation” should be aimed at



• Scholar chain: It is a vertical chain of superiors and hence decides the

levels or agrees of various jobs in an organisation. It decides the hierarchy of authority and states who is account able to whom. Whereas this must be followed in practice, there can be occasions, such as danger of delays when the chain can be short circuited for securing efficient work



• Order: It is necessary in two ways, namely material and social.

Material order means a place for everything in its place. Similarly, social order means a place for every one and every one in his place. In the absence of such order, there will be confusion and chaos.



• Equity: The manager must strive to install a sense of equity through

all levels of the scaler to evoke devotion and loyalty from the personnel, if necessary to treat them with kindness. Equity results from kindliness and justice.



• Stability of Tenure of Personnel: Instability of tenure constitutes the cause and effect of and

management. Time is required for an employee to succeed in his new work assuming he possessed the requisite qualities. Often, a mediocre manager who stays, is preferable to outstanding managers who merely come and go, and responsibilities of each person in the organisation.



The management must attempt to secure proper co-ordination among the work to be done by various employees. Further, it must staff the organisation with suitable persons, and maintain and stabilised, them. Last, it must not discourage emergence of informal organisation. An informed organization emerges out of human needs and convenience. It is necessary for smooth working of the enterprise. Hence, it can easily co-exist along with the formal organization.



The management must attempt to secure proper co-ordination among the work to be done by various employees. Further, it must staff the organisation with suitable persons, and maintain and stabilised, them. Last, it must not discourage emergence of informal organisation. An informed organization emerges out of human needs and convenience. It is necessary for smooth working of the enterprise. Hence, it can easily co-exist along with the formal organization.



• Directing: Directing consists in instructing the employees and makes

them work accordingly. In this regard, the management has to prepare proper directives, instructions, guidelines, and advice. It has also to communicate these effectively to the concerned employees.



Further, the management has to motivate the employees to make them work according to the directives; it has, therefore, to issue only fair instructions to the employees. Instructions which benefit the enterprise at the cost of the employees should never be given. The management must consider the employees as human beings and sincerely attempt to fulfill their aspirations, so, it should provide for various monetary and non-monetary incentives. It should also act as good leader so that the followers, namely, the subordinates will attempt to be good.



• Controlling: Management has to control the working of the enterprise.

That is, it has to ensure from time to time that the actions conform to the predetermined standards of some sort. In this regard, it has to compare the actual work figures over a period of time with the predetermine policies, plans, procedures, budgets, etc. Now, if the actual work is found to be as per the predetermined plans and procedures, the work is said to be under control.



However, if the actual performance falls short of the plans, it demonstrates a lack of control. Under this situation there exists unfavorable variation. Here the management has to take steps to improve its control. These are :( 1) Locate the variation (2) Study and analyze the variation; (3) Determine the causes of variation, (4) Find out the suitable remedial measure; (5) Implement these remedial measures.



If the remedial action wipes out the causes of variation, in due course, the actual work will be secured as per the plans. his will ensure proper control.

However, inspire of all possible attempts, if the management fails to wipe out the variation, it indicates that the plan itself needs revision.



Management Process

• Management process is a process of planning and controlling the performance or execution of any type of activity.

• The organization's senior management is responsible for carrying out its management process.


Management Process

• Processes provide a likely solution. They can be defined as collections of tasks and activities that together—and only together—transform inputs into outputs.

Within organizations, these inputs and outputs can be as varied as materials, information, and people.


Management Process

• Common examples of processes include new-product development, order fulfillment, and customer

service; resource allocation and decision making.


Components of Management

• Planning

• Organizing

• Coordinating

• Staffing

• Directing

• Controlling

• Evaluating


ORGANIZATIONAL PROCESSES

• Work processes, • Behavioral processes, and • Change processes



• WORK PROCESSES: Organizations accomplish their work through linked chains of

activities cutting across departments and functional groups. These chains are called processes and can be conveniently grouped into two categories:– Operational Processes – Administrative Processes



WORK PROCESSES• Operational Processes : Are the processes that create,

produce, and deliver products and services that customers want. (e.g. New-product development, manufacturing, and logistics and distribution)

• Administrative Processes: These processes do not produce outputs that customers want, but they are necessary for running the organisation / business. (e.g. strategic planning, budgeting, and performance measurement)



WORK PROCESSES Operational and administrative processes share several

characteristics. Both involve sequences of linked, interdependent activities that together transform inputs into outputs. Both have beginnings and ends, with boundaries that can be defined with reasonable precision and minimal overlap. And both have customers, who may be internal or external to the organization. The primary differences between the two lie in the nature of their outputs.



WORK PROCESSES Operational and administrative processes are frequently

considered independent, unrelated activities, even though they must usually be aligned and mutually supportive if the organization is to function effectively.



WORK PROCESSES • Flow charts are developed to show all the steps in a process;

the process is then made more efficient by eliminating multiple approvals and checkpoints, finding opportunities to reduce waiting time, smoothing the handoffs between departments, and grouping related tasks and responsibilities.



WORK PROCESSES • At some point, “process owners” with primary responsibility

for leading the improvement effort are also deemed necessary. Their role is to ensure integration and overcome traditional functional loyalties; for this reason, relatively senior managers are usually assigned the task.



WORK PROCESSES • Insights for Managers: The work processes perspective

has led to a number of important insights for managers. It provides an especially useful framework for addressing a common organizational problem: fragmentation, or the lack of cross-functional integration. Many aspects of modern organizations make integration difficult, including complexity, highly differentiated subunits and roles, poor informal relationships, size, and physical distance.



BEHAVIORAL PROCESSES:• The behavioral process approach, which has roots in

organization theory and group dynamics, focuses on ingrained behavior patterns. These patterns reflect an organization’s characteristic ways of acting and interacting; decision-making and communication processes are examples. The underlying behavior patterns are normally so deeply embedded and recurrent that they are displayed by most organizational members. They also have enormous staying power.



BEHAVIORAL PROCESSES• Behavioral processes are able to withstand the turnover of

personnel as well as some variation in the actual behaviors people contribute.



BEHAVIORAL PROCESSES• All behavioral processes share several characteristics. They

are generalizations, distilled from observations of everyday work, and have no independent existence apart from the work processes in which they appear. This makes them difficult to identify but explains their importance.



BEHAVIORAL PROCESSES• Behavioral processes profoundly affect the form, substance,

and character of work processes by shaping how they are carried out. They are different, however, from organizational culture because they reflect more than values and beliefs. Behavioral processes are the sequences of steps used for accomplishing the cognitive and interpersonal aspects of work.



BEHAVIORAL PROCESSES• Behavioral processes are able to withstand the turnover of

personnel as well as some variation in the actual behaviors people contribute.

• All behavioral processes share several characteristics. They are generalizations, distilled from observations of everyday work, and have no independent existence apart from the work processes in which they appear. This makes them difficult to identify but explains their importance.



BEHAVIORAL PROCESSESThree categories of behavioral processes:• Decision-making. • Communication and• Organizational learning processes. These all three involve the collection, movement, and

interpretation of information, as well as forms of interpersonal interaction. In most cases, the associated behaviors are learned informally, through socialization and on-the-job experience, rather than through formal education and training programs.



BEHAVIORAL PROCESSESDecision-Making Processes: Organizational decision making is a distributed activity,

extending over time, involving a number of people. Managers think that decision making as their personal

responsibility, rather than as a shared, dispersed activity that they must orchestrate and lead.



BEHAVIORAL PROCESSESCommunication Processes: The efficacy of these relationships invariably rests on the

quality and richness of interpersonal communication and information-processing activities: how individuals and groups share data, agree on agendas and goals, and iron out conflicts as they go about their work.



BEHAVIORAL PROCESSESCommunication Processes: These processes frequently become patterned and

predictable. But because they are embedded in everyday work flows, they are not always immediately apparent. Like decision-making processes, they reflect unconscious assumptions and routines and can often be identified only after repeated observations of individuals and groups.



BEHAVIORAL PROCESSESOrganizational Learning Processes:• Organizational learning is essential to organizational health

and survival, involves the creation and acquisition of new knowledge, and rests ultimately on the development of shared perspectives (often called “mental models”)

• The way an organization approaches learning is as deeply embedded as its approaches to decision making and communication



BEHAVIORAL PROCESSESOrganizational Learning Processes:• Four broad processes are involved:

– Knowledge acquisition, – Interpretation, – Dissemination, and – Retention.



BEHAVIORAL PROCESSESOrganizational Learning Processes:• Four broad processes are involved:

– Knowledge acquisition, – Interpretation, – Dissemination, and – Retention.



CHANGE PROCESSES• The change process approach, which has roots in strategic

management, organization theory, social psychology, and business history, focuses on sequences of events over time. These sequences, called processes, describe how individuals, groups, and organizations adapt, develop, and grow. Change processes are explicitly dynamic and intertemporal. Unlike the relatively static portraits of work and behavioral processes, they attempt “to catch reality in flight.”



CHANGE PROCESSES• All change processes share several characteristics. They are

longitudinal and dynamic, designed to capture action as it unfolds, with three components always present: “a set of starting conditions, a functional end-point, and an emergent process of change.”



CHANGE PROCESSES• Change processes fall into two broad categories:

autonomous and induced. • Autonomous processes have a life of their own; they

proceed because of an internal dynamic. Autonomous processes have a life of their own; they proceed because of an internal dynamic.

• Induced processes do not occur naturally but must be created. All planned change efforts therefore fall into this category.



CHANGE PROCESSES• They may be autonomous or induced, involve slow

incremental evolution or alternating periods of stability and revolutionary change.


Organizational Processes Framework


Organizational Processes


Managerial Processes Framework


Framework for Action


Education

Management processes