Management Theory and Practice

Management Theory and Practice

,

Jinuachan VadakkemulanjanalVimal Jyothi Institute of Management & Research,

Chemperi PO, Kannur Dr , Kerala-670632 [email protected]; +91-9447373415; 04602213399; 2212240

First SEMESTER MBA- MBA1C06

http://www.vjim.ac.in/

mailto:[email protected]

Module 1

• Meaning and definitions of Management• Historical development – Elements • Approaches to Management• Processes and functions of management • Schools of Management thoughts • Classical theory- Neo classical theory - Systems

theory –Contingency theory

MANAGEMENT THEORY AND PRACTICE - Jinuachan Vimal Jyothi MBA 2

Course Outcomes


1.Familiarize to the world of management principles and schools of management

2.Understand the planning function in management

3.Learn about the organizations and the organizing functions

4.Understand the staffing and selection function of Management

5.Gain knowledge of management control function

6.Gain knowledge about the issues in modern management

INTRODUCTION TO MGMT


Why should there be managers ?

Why should you become managers ?

What do you manage ?

Can’t the world exist without managers?

Can you manage things without learning MBA ?

Is management an ART or SCIENCE ?

Management is the art of getting things done through and with thepeople in formally organized groups

Meaning

Management is the process of planning, organizing, staffing, directing coordinating, reporting and budgeting to accomplish

organizational objectives through the coordinated use of human and material resources

POSDCORBMANAGEMENT THEORY AND PRACTICE - Jinuachan Vimal Jyothi MBA 5

"Management is a multi-purpose organ that manages business and manages managers and manages workers and work.“

Peter Drucker"The Principles of Management".

Meaning


What are you managing?



• People / team members

• Money

• Machines

• Time

• Process

• Technology

We manage...

“To manage is to forecast and to plan, to organize, to command, to co-ordinate and to control.” Henry fayol - Book -"Industrial and General Administration".


Definition of Management

"Management is the art of getting things donethrough and with people in formally organizedgroups

Harold Koontz- Book "The Management Theory Jungle".

"Management is the art of getting things done through people.“

Mary Parker Follett


Definition of Management

Etymology of Management


The English verb "manage" comes from the Italian maneggiare (to

handle, especially tools or a horse), which derives from the two

Latin words manus (hand) and agere (to act).

FEATURES OF MANAGEMENT


Presentation

• Jerin- Peter Ducker

• Arya K- Henry fayol

• Shinto- Harold Koontz

• Stephiya- Mary Parker Follett


Managerial skills1. Conceptual Skills. ...

2. Human Relations Skills. ...

3. Technical Skills. ...

4. Communication Skills. ...

5. Administrative Skills. ...

6. Leadership Skills. ...

7. Problem Solving Skills. ...

8. Decision Making Skills.

9. ….!!! stillmore


Can you identify the managerial skillsfrom this picture?

Managerial skills1. Conceptual Skills. ...

2. Human Relations Skills. ...

3. Technical Skills. ...

4. Communication Skills. ...

5. Administrative Skills. ...

6. Leadership Skills. ...

7. Problem Solving Skills. ...

8. Decision Making Skills.

9. ….!!! stillmore



Managerial Skill Sets

• The toolbox for what a manager needs in order to perform their job

effectively, typically, fall into one of three categories:

• Technical skills

• Human skills

• Conceptual skills.


• Communication skills

• Administrative Skills

• Leadership Skills

• Problem Solving Skills

• Decision Making Skills


Technical skills

• Technical skills are those skills needed to accomplish a specific task. It is

the 'how to' skill set that allows a manager to complete his or her job.

These skills are the combination of formal education, training, and on-

the-job experience


Human Skills

• Managers with good human skills understand their role inside the

manager/employee relationship and how important things, like trust,

cohesion, fairness, empathy, and good will, are to the overall success of

the organization.


Conceptual Skills

• Conceptual skill is the ability to visualise (see) the organisation as a

whole. It includes Analytical, Creative and Initiative skills. It helps the

manager to identify the causes of the problems and not the symptoms. It

helps the manager to fix goals for the whole organisation and to plan for

every situation.


Communication Skills

• Communication skills are required equally at all three levels of management.

A manager must be able to communicate the plans and policies to the

workers. Similarly, he must listen and solve the problems of the workers. He

must encourage a free-flow of communication in the organisation


Administrative Skills

• Administrative skills are required at the top-level management. The top-level

managers should know how to make plans and policies. They should also

know how to get the work done. They should be able to co-ordinate different

activities of the organisation. They should also be able to control the full

organisation.


Leadership Skills

•

Leadership skill is the ability to influence human behaviour. A

manager requires leadership skills to motivate the workers. These

skills help the Manager to get the work done through the workers.


http://kalyan-city.blogspot.com/2010/07/managerial-leadership-leader-qualities.html

Problem Solving Skills

• Problem solving skills are also called as Design skills. A manager should

know how to identify a problem. He should also possess an ability to find a

best solution for solving any specific problem. This requires intelligence,

experience and up-to-date knowledge of the latest developments


http://kalyan-city.blogspot.com/2010/06/decision-making-process-in-management.html

Decision Making Skills

• Decision-making skills are required at all levels of management. However, it

is required more at the top-level of management. A manager must be able

to take quick and correct decisions. He must also be able to implement his

decision wisely. The success or failure of a manager depends upon the

correctness of his decisions.


http://kalyan-city.blogspot.com/2011/08/what-is-decision-making-meaning.html

Intelligence Quotient


What you are good at?


Home work

Write a summary of

1. Management as an art

2. Management as profession

3. Management and administration

Ref. principles of management – Tripathi and reddy


Concept of management-Raymond G. Leon

• Management by Communication

• Management by Systems

• Management by Results

• Management by Participation

• Management by Motivation

• Management by Exception

• Management by Objectives


FUNCTIONS OF MANAGEMENT


FUNCTIONS OF MANAGEMENT

• PLANNING

• ORGANIZING

• STAFFING

• DIRECTING

• CONTROLLING


PLANNING

• Planning is the fundamental management function, which

involves deciding beforehand, what is to be done, when is it to be done,

how it is to be done and who is going to do it. It is an intellectual

process which lays down an organisation’s objectives and develops

various courses of action, by which the organisation can achieve those

objectives. It chalks out exactly, how to attain a specific goal.


Types of Planning• Purposes or missions,

• Objectives-It is the ultimate goal towards which the activities of the organization are

directed

• Strategies-general program of action and deployment of resources

• Policies-general statement or understanding which guide or channel thinking in

decision making


• Procedures-states a series of related steps or tasks to be performed in a

sequential way

• Rules-prescribes a course of action and explicitly states what is to be done

• Programs-comprehensive plan that includes future use of different resources

• Budgets-statement of expected results expressed in numerical terms



• Managerial function: Planning is a first and foremost managerial function

provides the base for other functions of the management, i.e. organising,

staffing, directing and controlling, as they are performed within the periphery

of the plans made.

• Goal oriented: It focuses on defining the goals of the organisation, identifying

alternative courses of action and deciding the appropriate action plan, which

is to be undertaken for reaching the goals.


• Pervasive: It is pervasive in the sense that it is present in all the segments

and is required at all the levels of the organisation. Although the scope of

planning varies at different levels and departments.

• Continuous Process: Plans are made for a specific term, say for a month,

quarter, year and so on. Once that period is over, new plans are drawn,

considering the organisation’s present and future requirements and

conditions. Therefore, it is an ongoing process, as the plans are framed,

executed and followed by another plan.


• Intellectual Process: It is a mental exercise at it involves the application of mind,

to think, forecast, imagine intelligently and innovate etc.

• Futuristic: In the process of planning we take a sneak peek of the future. It

encompasses looking into the future, to analyse and predict it so that the

organisation can face future challenges effectively

• Decision making: Decisions are made regarding the choice of alternative courses

of action that can be undertaken to reach the goal. The alternative chosen should

be best among all, with the least number of the negative and highest number of

positive outcomes


Steps in Planning1. Determining the goals or objectives for the entire organization.

2. Making assumptions on various elements of the environment.

3. To decide the planning period.

4. Examine alternative courses of actions.

5. Evaluating the alternatives.

6. Real point of decision making

7. To make derivative plans.



Process of Organizing

• Organizing: After a plan is in place, a manager needs to organize her

team and materials according to her plan.

• Organizing is the function of management that involves developing an

organizational structure and allocating human resources to ensure the

accomplishment of objectives

• Assigning work and granting authority are two important elements of

organizing.MANAGEMENT THEORY AND PRACTICE - Jinuachan Vimal Jyothi MBA 42

43

• Plans and objectives: Identify activities and classify

• The Plan and objectives are the net line of action.

• From the objective identify the different roles, processes, and activities

required to achieve the objectives.

• Assign the roles and tasks for the team members.

• Identify different tasks of each role to perform and include specific processes

of the tasks


Major Task and Assign the duties and resources

• Once you’ve identified the above, you would begin organizing the

resources.

• You would assign the specific tasks for the persons you feel are the

most qualified and provide the resources to the processes, which

most need them.


Division: Delegate authority and create responsibilities

• Managers shouldn’t behave like dictators.

• Although the power is concentrated on the manager, it doesn’t mean he should

have all the authority.

• In order the get the marketing campaign working properly, one might want to

ensure the person in charge of the team has the authority to make decisions. One

need delegation of responsibility, as it can ensure the plan works efficiently.


Process of Organizing

• Determine what is to be done/ Division of Work:

• Assign Tasks: Departmentalization:

• Link Departments: Hierarchy Development:

• Decide how much Authority to Designate/ Authority, Responsibility

• Delegation of Authority

• Decide the Levels at which Decisions are to be made / Centralization vs.Decentralization:

• Decide how to Achieve Coordination:


• Allocation: Co-ordinate authority and responsibilities

• As well as delegating authority, you also need to co-ordinate it to match the overall

functionality of the organization and the structure of the objectives.

• For example, you might want two people to share the responsibility of organizing

the price reductions, with each having the ability to respond to supplier queries.

• Furthermore, if you have other managers above you, it’s important to co-ordinate

the authority to ensure the functionality doesn’t suffer as a result of different plans


• Evaluate the result of the organizing strategy

• Identify the cooperation and the interim results


Techniques for achieving coordination.

• Coordination by Rules or Procedures

• Coordination by Targets or Goals:

• Coordination through the Hierarchy

• Coordination through

Departmentalization

• Using a Staff Assistant for

Coordination:

• Using a Liaison for Coordination:

• Using a Committee for Coordination

• Using Independent Integrators for

Coordination:

• Coordination through Mutual

Adjustment:


STAFFING

Definition 1

• Selecting and training individuals for specific job functions, and charging them with the

associated responsibilities.

Definition 2

• Number of employed personnel in an organization or program. Also called workforce.


Staffing is the process of hiring, positioning and overseeing employees in an organisation

DIRECTING/LEADING

• Provides positive and dynamic leadership

• Provides maximum opportunities

• Provides proper motivation of personnel

• Ability to command people


Control Function

• Control is a primary goal-oriented function of Management

• It is a process of comparing the actual performance with the set standards of the company to ensure that activities are performed according to the plans and if not, then taking corrective action.


Steps in the Control Process

Detective, preventative, and corrective controls

• Establish Standards of Performance

• Measure Actual Performance

• Compare Performance to Standards:

• Take Corrective Action


CONTROLLING CONCEPTS• Feed Forward Control-Control that attempts to identify and prevent

deviations before they occur is called feed forward control, sometimes called preliminary or preventive control.

• Concurrent Control-Control that monitors ongoing employee activities during their progress, to ensure they are consistent with quality standards, is called concurrent control.

• Feedback Control-In this case, the control takes place after the action. Sometimes called post-action or output control


Budgeting Function

• A budget is a tool that managers use to plan and control the use of scarce resources.

• A budget is a plan showing the company's objectives and how management intends to acquire and use resources to attain those objective

• It is a management tool for achieving efficiency, productivity, improvements and for determining the degree to which policy goalshave been accomplishes

• Budgets: Operating budgeting, capital budgeting, and cash flow budgeting.


Reporting Function

• It is a process of providing information to various levels of management so as to enable in judging the effectiveness of their responsibility centers and become a base for taking corrective measures.

• It includes all the reports that management uses to run the organization, make business decisions, and monitor progress


Types of Report

(1) Classification on the Basis of Object and Purpose

(2) Classification on the Basis of Nature

(3) Classification on the Basis of Period

(4) Classification of Reports on the Basis of Functions.


Management theories

i) The management process school

ii) The empirical school

iii) The human behavioural school

iv) The social systems school

v) The decision theory school

vi) The mathematical school.


Schools of Management Thought • The construction of a single pyramid occupied more than 100,000

workers for 20 years.

• The Pharaohs was between 4000 B.C. and 525 B.C.

• The most obvious demonstration of Egyptian power is the construction projects that remain even today. covers thirteen acres and contains 2,300,000 stone blocks. The blocks weigh about two and a half tonseach and were cut to size many miles away.


History and approaches

CLASSICAL THEORY / APPROACH1. SCIENTIFIC MGMT2. ADMINISTRATIVE MGT3. BUREAUCRACY

MODERN THEORY1. QUANTITATIVE APPROACH2. SYSTEMS THEORY3. CONTINGENCY THEORY

NEO-CLASSICAL THEORY1. HUMAN RELATIONS MOVEMENT2. BEHAVIOURAL APPROACH

'autocratic' or 'authoritarian' or pre-scientific era (earlier to AD1880)


Classical Management Theory -1880s-1920s

1. Scientific Management – Frederick Winslow Taylor 1856 – 1915

2. Administrative Management - Henry Fayol -1841-1925

3. Bureaucratic Organisation - Max Weber- 1864- 1920


Classical theory- 1880s-1920s

• Traditional school of management

• It consisted of scientific management, administrative principles and bureaucratic organisation.

• Emphasis on the economic rationality of management and organisation

• Contribution: (i) application of science to the practice of management (ii) development of the basic management functions and (iii) articulation and application of specific principles of management.


Scientific Management – Frederick Winslow Taylor1856 – 1915

1. Time and Motion Study

2. Differential Payment

3. Rearrangement of Supervision

4. Scientific Recruitment and Training of Employees

5. Friendly Relationship Between Workers and Management


Critical view on Taylorism or Scientific Mgt

1. It’s a physiological organization theory – no suggestions for

managerial jobs

2. Only economic incentive can motivate employees

3. ‘One best way’

4. Separation of planning and doing

5. Protest from workers



MANAGER’S ROLES

• Interpersonal role

• Informational role

• Decisional role


INTERPERSONAL ROLE

• Figurehead- ethical guidelines and the principles of behavior employees are to follow in their dealings with customers and suppliers

• Leader- give direct commands and orders to subordinates and make decisions

• Liaison-coordinate between different departments and establish alliances between different organizations


INFORMATIONAL ROLE

• Monitor- evaluate the performance of managers in different functions

• Disseminator-communicate to employees the organization’s vision and purpose

• Spokesperson- give a speech to inform the local community about the organization’s future intentions


DECISIONAL ROLE

• Entrepreneur- commit organization resources to develop innovative goods and services

• Disturbance handler- to take corrective action to deal with unexpected problems facing the organization from the external as well as internal environment

• Resource allocator- allocate existing resources among different functions and departments

• Negotiator- work with suppliers, distributors and labor unions


TYPES OF MANAGERS

• FIRST-LINE MANAGERS- often called supervisors stand at the base of the managerial hierarchy

• MIDDLE MANAGERS- heads of various departments and organise human and other resources to achieve organizational goals

• TOP MANAGERS- set organizational goals, strategies to implement them and make decisions


WHAT MAKE MANAGERS SUCCESSFUL?

• Hard work

• Smart work

• Patience

• Out of box thinking

• Reading and acquiring knowledge

• Ethical consciousness

• Collaborative relationship

• Perseverance


Thank you


Education

Management Theory and Practice