MANAGEMENT

A Global and Entrepreneurial Perspective

PRINCIPLES OF MANAGEMENT
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15 Quiz per Class

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Management: Science, Theory and Practice (27th September 2010) Essentials of Planning and Managing by Objectives Strategies, Policies and Planning Premises Decision Making The Nature of Organizing, Entrepreneuring, and Reengineering Organization Structure: Departmentation Line/ Staff Authority, Empowerment and Decentralization Effective Organizing and Organization Culture Human Factors and Motivation Leadership Committees, Teams and Group Decision Making The System and Process of Controlling
50 Total Sessional External Evaluation 50 External Exam

Sessional Evaluation 15 20 Assignment & Presentation Mid-term

Management: Science, Theory and Practice

Chapter 1

TABLE OF CONTENTS
1.

2.
3. 4. 5. 6.

Definition of Management: Its nature and purpose Managing: Science or Art The Evolution of Management Theory Patterns of Management Analysis: A management Theory Jungle The Systems approach to management process The functions of Managers

1. Definition of Management
Management is the process of designing and

maintaining 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

Steve Jobs At Apple

Bill Ford Jr at Ford Motors

Jack Welch at GE

Bill Gates at Microsoft

Obama , US

Functions of Management

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

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

2.

MANAGING: SCIENCE OR ART

Managing as practice is an art; the

organized knowledge underlying is a science

3.

EVOLUTION OF MANAGEMENT THOUGHT

1. Frederick Taylor and Scientific

Management 2. Henri Fayol, The father of Modern Management Theory 3. Elton Mayo and F.J. Roethlisberger and the Hawthorne Studies

Frederick Taylor and Scientific Management

Taylors principles of scientific management were

published 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

HENRY FAYOL, THE FATHER OF MODERN MANAGEMENT THEORY

Henri Fayol, the father of modern

management theory, gave 14 principles of management, noting that they are flexible and usable in all organizational settings, some are as follows:
Authority and Responsibility Unity of Command Scalar chain Espirit de corps (in union is strength)

ELTON MAYO & F.J. ROETHLISBERGER AND THE HAWTHORNE STUDIES

Hawthorne studies were conducted to understand the

effect of light and other factors on workers and productivity. After Mayo continuing the experiments realized that changing illumination for the test group, modifying rest periods, 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, satisfactory interrelationships and effective management. Interpersonal skills such as motivating, counseling, leading and communicating were the majors factors which played part in improving productivity. The phenomenon of being noticed has been named as Hawthorne Studies

4. PATTERNS OF MANAGEMENT ANALYSIS: A MANAGEMENT THEORY JUNGLE

The management roles approach

The management process, or operational approach

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

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

THE MANAGEMENT PROCESS, OR OPERATIONAL APPROACH

The management process or operational, approach

draws together the pertinent knowledge of management by relating it to the managerial job.

The systems approach to the management process

The enterprise receives inputs, transforms them and

exports the outputs to the environment

INPUTS

Re-energizing the System

TRANSFORMATION PROCESS

External Environment

Outputs

Goal Inputs: Employees, Consumers, Suppliers, Stock holders, Governments, Community etc
Managerial Knowledge, Goals of claimants, and use of Inputs

Inputs: Human, Capital, Managerial, Technological

Planning

Organizing

Re-energizing the System

Communication
Staffing

External Variables and Information: Opportunities, Constraints and others

Leading

Controlling

To produce Outputs

Outputs: Products, Services, Profits, Satisfaction, Goal Integration, Others

 INPUTS AND CLAIMANTS:

Inputs are people, capital, managerial skills, technical knowledge

and 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 only

be gained by communication It helps in corrective measures after identification of errors through 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

 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

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 an

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

LEADING
Influencing people so that they will contribute to organizational and

group goals
CONTROLLING
Measuring and correcting individual and organizational performance

to ensure that events conform to plans

COORDINATING
It is the essence of managership, for achieving harmony among

individuals efforts towards the accomplishment of group goals