PRINCIPLES OF

MANAGEMENT

VINEETH S
ASSISTANT PROFESSOR
Management
• People became forming groups, achieve more &
accomplish aims, managing became essential to ensure
coordination of individual efforts.
• According to Harold Koontz,
"Management is the art of getting things done through and
with people in formally organized groups.“
• According to Henri Fayol,
"To manage is to forecast and to plan, to organize, to
command, to co-ordinate and to control.“
• Management is the process of designing and
maintaining an environment in which individuals,
working together in groups, efficiently accomplish
selected aims.
• People carry out managerial functions of planning,
organizing, staffing, leading and controlling
• Management applies to any kind of organization, College, IT
firm, football team, cricket team etc.
• Concerned with productivity, implies efficiency and
effectiveness
• Organizing is a systematic process of structuring,
integrating, co-ordinating task goals, and activities to
resources in order to attain objectives.
• Organization could be defined as a group of people with a
particular purpose, working together to create a surplus.
• Enterprise- a business, hospital, government agency,
university or any other type of organization
Managerial Functions
• All managers carry out managerial functions (manager,
executive, administrator, supervisor)
• Koontz and O’ Donnell have adopted the
following functions:
• (i) Planning
• (ii) Organizing
• (iii) Staffing
• (iv) Leading/Directing
• (v) Controlling.
Time spent in carrying out
managerial functions
Managerial skills and
level
1. Conceptual and design Skills
• Conceptual skill is the ability to visualize (see) the organization as
a whole. It includes Analytical, Creative and Initiative skills.
• Prof. Robert Katz, conceptual skills are mostly required by the top-
level management because they spend more time
in planning, organising and problem solving.
2. Human Relations Skills
• Human relations skills are also called Interpersonal skills. It is an
ability to work with people. It helps the managers to understand,
communicate and work with others.
3. Technical Skills
• The low-level managers require more technical skills. This is
because they are in charge of the actual operations.
• E.g., Elon Musk
Management as Science
or Art
• Management as a Science:
• Science can be defined as a systematic and organised
body of knowledge based on logically observed findings,
facts and events.
• Science comprises of exact principles which can be
verified and it can establish cause and effect relations.
 Main characteristics/features of
science are:
1. Systematic body of knowledge:
2. Scientific principles are derived on the basis of logical and
scientific observations:
• Observation of human being cannot be purely logical and
objective.
3. Principles are based on repeated experiments:
4. Universal Validity:
• Management principles are not exact like scientific principles so
their application and use is not universal.
5. Replication is possible:
• But in management managers have to conduct research or
experiments on human beings
 Management as an Art:
• 1. Systematic body of knowledge/Existence of theoretical
knowledge:
• 2. Personalized application:
• 3. Based on Practice and creativity:
• Management is both science as well as art.
• Like science it has systematic and well- organised body of knowledge
and like art it requires personal skill, creativity and practice to apply
such knowledge in the best possible way. Science and art are not in
contrast to each other but as complementary; both exist together in
every function of management.
• Managing as a practice is art, the organized knowledge
underlying the practice is a science.
Organization and External
Environment
 Elements that affect operation of an Organization
• Managers should be aware and responsive to external environment or
factors
1. Technological Environment
• Invention, innovation
• Product, service and process innovation(Apple, Toyota)
• Incremental(Kaizen), breakthrough: Apple, Radical innovation:
Salesforce(new business model and new technology)
2. Ecological Environment
• Relationship between people and other living things with their
environment
• Pollution, hazardous waste
3. Social Responsibility
• Social responsiveness of organization(Apple-Foxconn)
4. Political and legal
• Government stability, Incentives for international trade
5. Economic
• Economic system- market economy, Natural resources, Infrastructure
Global, innovative and entrepreneurial perspectives of
Management

1. Global
• Major trend, international presence, WTO organized to
govern international trade
• Higher income job opportunities for developing countries
• Lead to innovative practices in the country
• Managers should hence promote international perspective
• Importing and exporting,
• Licensing- allowing another brand to use logo, trademark
etc
• Strategic alliances
• Direct investing- Harley Davidson, Toyota
2. Innovative and Entrepreneurial Perspective
• CRM-uses latest technology to manage customers,
Salesforce
• SCM- manage suppliers, Walmart
• E-commerce, M-commerce. M-payment
• Increase employment and prosperity
• Barcode system in KTU
 Managing People & Organization in the context of new Era
• Companies have global workforce
• Different countries, different systems, workforce, language,
methodologies
• Annual performance management, different scales, numbers & cant
compare
• Should have, system, data and information which was not available
then and a challenge, SCM, MIS, CRM (Walmart)
• Standardize- global performance management system, global
employee management system
• Huge resistance for different countries, face change in organization
• Managers should develop global mindset, open minded to engage
with different culture, social, political, economic characteristics
• Serving the bottom of pyramid(BOP), e.g., Goodrej Chotukool for
rural market in India, innovative, affordable for unreached poor
population who need the product, small shop
 Managing For Competitive Advantage
• Diversity and multiculturalism in Organizations
• Age distribution, ethnicity and Gender- this workforce excels
• Managing this leads to competitive advantage
• Quality, Innovation, Speed(time period to serve), Cost competitive
Characteristics

• Physical-age, gender,
race, ability, cognitive
style
• Cultural- ethnic/national
origin, lifestyle, marital
status, religion
• Socio-economic –
education, profession,
function, social class
Michael Porters Strategies
• Differentiation : product with unique attributes
McDonalds, Apple
• Cost leadership: superior profit, lowest cost Walmart,
Tesco (Clubcard- loyalty program
• Focus strategy : concentrate on a narrow segment to
achieve cost advantage or differentiation, specialization
Pepsico(Quaker oats, Tropicana, Frito lay( Lays, Cheetos)
• Deming , Juran and Crosby TQM
• Deming- Organizations should focus primarily on quality, which is defined by the
equation ‘Quality = Results of work efforts/total costs’. When this occurs, quality
improves, and costs decrease, over time.
• Juran- Products fitness for use, PDCA, quality of the end product, root cause of
quality issues was the resistance to change, and human relations problems
• Plan: Design a consumer research methodology which will inform business
process components.
• Do: Implement the plan to measure its performance.
• Check: Check the measurements and report the findings to the decision makers
• Act/Adjust: Draw a conclusion on the changes that need to be made and
implement them.
• Quality, planning, control and improvement
• Crosby- do it right the first time, achieve zero-defects
• The First Absolute: The definition of quality is conformance to requirements
• The Next Absolute: The system of quality is prevention
• The Third Absolute: The performance standard is zero defects
• The Final Absolute: The measurement of quality is the price of non-conformance
• Needed statistical analysis
 THE CHALLENGES OF MANAGEMENT

1. Planning and decision making in a global economy;

• Managers understand environmental, competitive issues, local and
technological factors, market, domestic and foreign competition
e,g, entering a country with a new firm
1. Controlling in a global economy: distance, time zone, culture
2. Organizing in a global economy: manage operations, local
managers more responsibility, manage change, human resource
3. Leading in a global economy : leading, communication cultural
differences