Principles and Practices of Management

Definition of Management Contd

When it comes to manage people, it is said that people are enigmatic. Thus, Management is enigmatic. Harold Koontz described the present state of management theory as a jungle. There can be lots of ambiguity and there will be no recipe book

Definition of Management Contd

Management is a function of :

m = f (results, feedback, results)

Managing the internal and external environments in the bio-ecosystems, through various effective and efficient processes, with the objective of achieving laid down expected results

Definition of Management Contd

Management consists of getting things done through other manager, one who accomplishes the objectives by directing the efforts of other. By George R. Terry

Definition of Management Contd

Management is the art of directing and inspiring people. By S. George

Management is the art of getting things done through and with people in formally organized groups. By Harold Koontz

Definition of Management Contd

Good Management is the art of making problem so interesting & their solutions so constructive that everyone wants to get to work & deal with them.
By Paul Hawken

Definition of Management Contd

Management is a distinct process consisting of activities of planning, organizing, actuating, and controlling, performed to determine and accomplish stated objectives with the use of human beings and other resources.
By Terry & Franklin

Top level

Middle level

Supervisory level/entry level

Concepts of Management
Management as an Economic Resource: Like land, labour, capital and entrepreneurship, management is vital factor of production. An who entrepreneur establishes the organization is its owner. But it is management that transforms the various resources into a productive entity. Management as a Team: As a team or group of persons, management consists of all personnel having managerial responsibility. Managers occupy positions at different levels of authority but perform the same basic functions.

Concepts of Management
Management as an Academic Discipline: As an academic discipline or field of study, management implies a branch of knowledge. It comprises management theory and principles for talking managerial problems. Therefore management has become a very popular subject of study. Management as a process: The best way to describe management is in terms of what managers do. It involves organizing directing, and controlling human efforts to accomplish predetermined goals.

Concepts of Management
Management as a human process: The scientific management school developed by F.W. Taylor laid exclusive emphasis on machines and neglected the human factor in Industry. Management of ideas involves intellectual, creative and innovative process and decision-making process involves conversion of ideas and information into actions. Management of Things: Management of things refers to the mobilization, allocation and development of material, machinery, technology and other facilities to connect ideas into results and performance. It is the conversion of ideas and information into actions.

Concepts of Management
Management of People: Management of people refers to the procurement, development, maintenance and integration of human beings working in the organizations. It is the most important task of a manager because without people no manager can manage ideas and things in the area of getting things done through and with people in formally organized groups. Management is concerned with ideas, things and people: Management of ideas is very crucial for economic and social development. It is the job of management to generate, organize creative ideas and transform them into operating results. These ideas relive to new products, new markets and improvement in existing, products and markets. This is very important with changing consumer preferences. In the early stages of the evaluation of management people were treated as part of things. But after the Hawthorne Experiments people are the most critical factor in management. Thus management may be defined as the process of converting ideas into results by getting things done through and with the people in an organized setting.

Characteristics of Management
Management is an activity It is a purposed activity It is concerned with the efforts of a group Management is getting things done It applies economic principles Involves decision-making It co-ordinates all activities and resources It is a universal activity It is an integrating process It is concerned with direction and control It is intangible Management is both a science and an art It is a profession It is an interdisciplinary approach It is a system of authority It is an economic resource

Features of Management
It is Goal Oriented It is a Group Activity It makes internal environment conducive to work It establishes relationship among resources

Nature of Management

It is purposive activity
It is pervasive It is continuous process It is universal activity

Purpose of Management
Determination of objectives

Efficient use of resources

Satisfaction of stakeholders Capital building Satisfying workforce Relationship building

Evolution of Management Thought

Management practice us as old as human civilisation when people started living together in groups. This led to emergence of variety of orientation and approaches in management field. To name a few great thinkers: F W Taylor Henry Fayol Hawthrone Abraham Maslow

Scientific Management- FW Taylor

He is known as father of scientific management

Scientific management is an art of knowing what exactly you want from your team to do & then seeing that is done in the best possible manner.
In simple words, it is application of science to management

Scientific Management- FW Taylor

After years of experiments and researches Taylor proposed following 4 principles of Scientific Management: 1.Replace rule of thumb work methods with methods based on a scientific study of the tasks. The work assigned to any employee should be observed and analysed in respect to time and part involved. The way of doing the job should be clear to all.

Scientific Management- FW Taylor

2. Scientifically select and then train, teach, and develop the

workman, whereas in the past the employee (or workmen) chose his own work and trained himself as best he could. Selection means to choose the best employee according to the need. Their skills and experience must match the requirement of job. Training should be given to all employees who are selected for the job so that they can perform the job efficiently. Scientific development refers to criteria for promotions, transfers etc. so that work is done with full efficiency.

Scientific Management- FW Taylor

3. Provide "Detailed instruction and supervision of each worker in the performance of that worker's discrete task.

4. Divide work nearly equally between managers and workers, so that the managers apply scientific management principles to planning the work and the workers actually perform the tasks. Harmonious relationship between employees and employers.

Administrative Management By Henry Fayol

Henry Fayol is known as father of Administrative Management. He contributed 14 Management principles. Gist of his principles is as follows: 1. Division of work or Specialisation of labour 2. Authority and responsibility 3. Discipline 4. Unity of Command

5. Unity of direction
6. Subordination of individual interests 7. Remuneration

Administrative Management By Henry Fayol Contd

8. Centralisation or Decentralisation

9. Scalar Chain (Hierarchy or line of authority)

10. Order (both material and social) 11. Equity 12. Stability 13. Initiative 14. Espirit de corps

Hawthrone Studies by Elton Mayo

Hawthrome studies were conducted from 1927 to 1932 at the Western Hawthrone Works in Chicago; which was engaged in producing bells and other electrical equipments for telephonic industry. Elton Mayo is considered to be founder of Management based on Human Relations. His study further provides that an organisation is not merely a formal arrangement of men and functions; more than that it is a social system which can be operated successfully only with effective Human relations.

Hawthrone 3 phased Studies

Test Room Studies : the object being to assess the effect of single variables upon employee performance. They were experimental in nature Interviewing Studies: these were largely concerned with improving employee attitudes and were psychological in nature Observations Studies: these were undertaken to understand and describe the factors influencing the informal organization of work groups and were sociological in nature

Elton Mayo- Human Relations

Social Factor in output : Organisation is a structure in which production norms are set by social norms and not official prescription. Group Influence: Employer should not deal with employee as an individual but as a members of work group. Leadership: Superior is more acceptable as leader only if he can associate himself with the workers. It results in better productivity Communication: Transparency between employer and employee reduces the scope of conflicts resulting in better output.

Behavioural Sciences Approach of Management

Behavioural Sciences approach was studied after 1940 It is further refinement of Human Relations Approach. This approach is drawn heavily on the work of Abraham Maslow, an American Psychologist. He proposed the theory of Motivation- Hierarchy of Needs

His need based theory of motivation, published in 1943, laid foundation for subsequent psychologists (Renis Likert, Douglas McGregor, Fredrick Herzberg, etc) to analyze human behavior

Maslows Hierarchy of Needs

Why do we need Management?

Functions of Management
Planning: It process of determining in advance
what is to be done, where, when, why, by whom and how. It involves setting clear goals & objectives before hand.

Organising: It involves identification, grouping and

assigning of activities to be carried out.

Staffing: recruitment, selection, training &

development of the employees.

Controlling: process of ensuring that activities and

usage of resources are in conformity with the predetermined goals.