PRINCIPLE OF MANAGEMENT

CONCEPT OF MANAGEMENT

Management can be defined as following categories: Management is a process Management is purposive activity Management is a discipline Management is a group Management is science and an art

Management is a profession
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MANAGEMENT DEFINITION

According to F. W. Taylor management is an art of knowing what to do, when to do and see that it is done in the best and cheapest way. According to Harold Koontz management is an art of getting things done through and with the people in formally organized groups.
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Mary parker Follett (1919) the art of getting things done with and through people.

Chester I. Barnard (1938) getting things done through people by making the efficient use of resources.

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Kast and Rosenzweig (1974)to make efficient use of resources and to get people and other resources to work harmoniously together in order to achieve objectives. Ricky W. Griffin (2000) management is set of activities directed at an organization resources with the aim of achieving organizational goals effectively and efficiently in a changing environment.
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CHARACTERISTIC OF MANAGEMENT

Achieving the objectives Working with others

Attaining effectively and efficiently

Adopting situational approaches Coping with the environment
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PRINCIPLE OF MANAGEMENT
Management by objectives Division of work Substitution of resources Span of control Unity of functions Unity of command Delegation of authorities Management by expectation

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14 PRINCIPLE AS HENRI FAYOL

DIVISION OF WORK: Work should be divided among individuals and groups to ensure that effort and attention are focused on special portions of the task. Fayol"s presented work specialization as the best way to use the human resources of the organization.

AUTHORITY: The concepts of Authority and responsibility are closely related. Authority was defined by Fayol as the right to give orders and the power to exact obedience. Responsibility involves being accountable, and is therefore naturally associated with authority. Whoever assumes authority also assumes responsibility.

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DISCIPLINE: A successful organization requires the common effort of workers. Penalties should be applied judiciously to encourage this common effort.

UNITY OF COMMAND: Workers should receive orders from only one manager. UNITY OF DIRECTION: The entire organization should be moving towards a common objective in a common direction.
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SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS: The interests of one person should not take priority over the interests of the organization as a whole. REMUNERATION: Many variables, such as cost of living, supply of qualified personnel, general business conditions, and success of the business, should be considered in determining a workers rate of pay.
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CENTRALIZATION: Fayol defined centralization as lowering the importance of the subordinate role. Decentralization is increasing the importance. The degree to which centralization or decentralization should be adopted depends on the specific organization in which the manager is working. SCALAR CHAIN( LINE OF AUTHOTITY): Managers in hierarchies are part of a chain like authority scale. Each manager, from the first line supervisor to the president, possess certain amounts of authority. The President possesses the most authority; the first line supervisor the least. Lower level managers should always keep upper level managers informed of their work activities. The existence of a scalar chain and adherence to it are necessary if the organization is to be successful.

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ORDER: For the sake of efficiency and coordination, all materials and people related to a specific kind of work should be treated as equally as possible. EQUITY: All employees should be treated as equally as possible. STABILITY OF TENURE OF PERSONNEL: Retaining productive employees should always be a high priority of management. The period of service should not be too short and employees should not be moved from positions frequently.
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INITIATIVE: Management should take steps to encourage worker initiative, which is defined as new or additional work activity undertaken through self direction. ESPIRIT DE CORPS (Team Spirit): Management should encourage harmony and general good feelings among employees.
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MANAGEMENT PROCESS AND FUNCTION

LEGISLATIVE SUB- SYSTEM (Formulating of goal, policies, common rules, procedure, plans, routines and budgets)

EXECUTIVE SUB-SYSTEM (Allocating role between managers and operative) JUDICIAL SUB-SYSTEM (Feedback to legislative and executive sub system)

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According to Henry Fayol to manage is to forecasts and plan, to organize , command and to control)

According to George and Jerry planning ,organizing, actuating and controlling.

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Luther Gullick keyword-(POSDCORB) Planning, organizing, staffing, directing, co-ordination, reporting and budgeting. But Most acceptable ones is by Koontz and O'Donnell i.e. planning, organizing, staffing, directing and controlling.

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TYPES OF MANAGERS

LINE MANGERS( mangers who directly in the chain of command)

are

STAFF MANAGERS(expertise): need for specialized or technical information increases as organization become more complex.

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PURE LINE ORGANIZATION

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LINE AND STAFF RELATIONSHIPS

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10 MINTZBERGS MANAGERIAL ROLE

Mintzberg published his Ten Management Roles in his book, "Mintzberg on Management: Inside our Strange World of Organizations," in 1990. Figurehead. Leader. Liaison. Monitor. Disseminator. Spokesperson. Entrepreneur. Disturbance Handler. Resource Allocator. Negotiator.

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MANAGERIAL ROLES

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MANAGERIAL LEVEL

TOP LEVEL( policies, plans, budgets and objectives) MIDDLE LEVEL ( revenue, costs, profits) OPERATING LEVEL ( goods, services , performance)

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MANAGERIAL SKILLS

Political: used to build a power base and establish connections. Conceptual: used to analyze complex situations. Interpersonal: used to communicate, motivate, mentor and delegate. Diagnostic: ability to visualize most appropriate response to a situation. Technical: Expertise in one's particular functional area.
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PYRAMID

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LEVELS AND SKILLS

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EMERGING CHALLENGES FOR MANAGEMENT

Administrative role Cultural role Quality/ethics/environment impact Power bases Interpersonal dealing Learning Problems Changes and conflicts information

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GLOBALIZATION

The world economy is becoming increasing global in character. Manager will be involved in the management of global organization. They will need to think globally and act locally. Today more than one fourth of all goods produced worldwide cross the national boundaries. So it is one of the main emerging challenges.

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TECHNOLOGY

Development of new technology has brought quickness, simplicity and effectiveness in managerial works. Management will need to manage changing technology effectively. So it has appeared as challenges.

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SOCIAL RESPONSIBILITIES

An organization should be responsible towards shareholders, employees, customers, society and nation. Now-days social responsibilities has become compulsory not a subject of discussion.

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CHANGE MANAGEMENT

Change is demand of time. In the complex and dynamic environmental context, change should also be brought in different aspect for organization.

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CULTURAL DIVERSITY

Education, tour, communication, experiences etc bring changes cultural norms and values of human. Different races, languages, custom, fashion and living style add diversity to it. Cultural norms and value go on changing, adding diversities which are great challenges.

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EMPOWERMENT
Empowerment is the process of increasing the capacity of individuals or groups to make choices and to transform those choices into desired actions and outcomes. The manager should provide the works full control over their works by promoting self managed teams on encouraging maximum participation, more information is provided to employees to make them aware of problems of their organization.

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Globalization Development of Environment Innovation and Change Technological Development Knowledge Management Work Force Diversity Empowerment of Employees
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ADMINISTRATION & MANAGEMENT

According to Theo Haimann, Administration means overall determination of policies, setting of major objectives, the identification of general purposes and laying down of broad programmers and projects. It refers to the activities of higher level. It lays down basic principles of the enterprise. According to Newman, Administration means guidance, leadership & control of the efforts of the groups towards some common goals. Whereas, management involves considering, initiating and bringing together the various elements; coordinating, actuating, integrating the diverse organizational . it is an art of getting things done through & with the people in formally organized groups.
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CREATIVITY AND INNOVATION

Creativity is essential for innovation for a product must exist at least in a concept stage for you cannot innovate anything that does not exist. Thus innovation depends on creativity while creativity does not depend on innovation. Though the better success of creativity depends on innovation. Creativity = Invention Innovation = improvements = changes to make it effective and efficient = making it practical = researching new ways to produce and improve creativity = the act of producing the same concept in a newer and improved form.
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WORKFORCE DIVERSITY

Similarities and differences among employees in terms of age, cultural background, physical abilities and, religion, sex etc.

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ISSUES THAT FRUSTRATE MANAGERS

Employee disputes gossip jealousy and poor time management

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GOALS AND OBJECTIVES

1. Goals and objectives are both tools for accomplishing what you want to achieve. 2. Goals are long term and objectives are usually accomplished in the short or medium term.

3. Goals are nebulous and you cant definitively say you have accomplished one whereas the success of an objective can easily be measured.
4. Goals are hard to quantify or put in a timeline, but objectives should be given a timeline to be more effective.

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EFFICIENCY AND EFFECTIVENESS

1. Efficiency means doing the things right whereas Effectiveness is about doing the right things. 2.Efficiency focuses on the process or means whereas Effectiveness focuses on the end.

3.Efficiency is restricted to the present state whereas effectiveness involves thinking long term.
4.Organizations have to be both effective and efficient in order to be successful.

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