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Introduction to Principles and Functions of Management (Text Book Chapters – 1 & 2) 1 Issue
Introduction to Principles
and Functions of
Management
(Text Book Chapters – 1 & 2)
1
Issue # 1
Principles of Management / BSG – 201

Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

Management: Meaning, Principles and Functions of Management. Different Schools of Management and Management Thought. 2 Issue
Management:
Meaning, Principles and
Functions of Management.
Different Schools of
Management and
Management Thought.
2
Issue # 1
Principles of Management / BSG – 201

Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

Efficiency Efficiency Getting work Getting work done through done through others others Effectiveness Effectiveness 3 Issue
Efficiency
Efficiency
Getting work
Getting work
done through
done through
others
others
Effectiveness
Effectiveness
3
Issue # 1
Principles of Management / BSG – 201

Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

Efficiency and Effectiveness 4 Issue # 1 Principles of Management / BSG – 201
Efficiency and
Effectiveness
4
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Principles of Management / BSG – 201

Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

Principles of Management – F.W. Taylor Develop a science for each element of a man’s work,
Principles of Management –
F.W. Taylor
Develop a science for each element of a man’s work,
Develop a science for each element of a man’s work,
which replaces the old rule-of-thumb method.
which replaces the old rule-of-thumb method.
Scientifically select and then train, teach, and
Scientifically select and then train, teach, and
develop the workmen.
develop the workmen.
Cooperate with the men to insure all work is done in
Cooperate with the men to insure all work is done in
accordance with the principles of the science.
accordance with the principles of the science.
There is almost equal division of the work and the
There is almost equal division of the work and the
responsibility between management and workmen.
responsibility between management and workmen.
5
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Principles of Management / BSG – 201

Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

Time & Motion Studies: Lillian Gilbreth Frank & Time Study Timing how long it takes good
Time & Motion
Studies:
Lillian Gilbreth
Frank &
Time Study
Timing how long it takes good workers
to complete each part of their jobs.
Motion Study
Breaking each task into its separate
motions and then eliminating those that
are unnecessary or repetitive.
6
Issue # 1
Principles of Management / BSG – 201

Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

14 Principles of – Henry Fayol Management 1. Division of Work: allows for job specialization. Work
14 Principles of
– Henry Fayol
Management
1.
Division of Work: allows for job specialization. Work
should be divided among individuals and groups.
2.
Authority and Responsibility: Authority right to
give orders. Responsibility involves being answerable
Whoever assumes authority assumes responsibility
3.
Discipline: Common efforts of workers. Penalties
4.
Unity of Command: Employees should have only
one boss.
5.
Unity of Direction: A single plan of action to guide
the organization.
6.
7
Issue # 1
Subordination of individual interests to the
t
Principles of Management / BSG – 201
Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan
l
i
t
f
i
ti
14 Principles of – Henry Fayol Management 7. Remuneration: An equitable uniform payment system that motivates
14 Principles of
– Henry Fayol
Management
7.
Remuneration: An equitable uniform payment
system that motivates and contribute to success.
8.
Centralization: The degree to which authority rests
at the top of the organization.
9.
Scalar Chain: Chain like authority scale.
10.
Order: The arrangement of employees where they
will be of the most value to the organization.
11.
Equity: The provision of justice and fair dealing
12.
Stability of Tenure of Personnel
13.
Initiative
14.
Esprit de corps: Harmony, general good feeling
among employees
8
Issue # 1
Principles of Management / BSG – 201

Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

9 Issue # 1 Principles of Management / BSG – 201
9
Issue # 1
Principles of Management / BSG – 201

Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

Planning and Decision Making Defining goals, establishing strategy and developing sub plans to choose alternatives and
Planning and
Decision Making
Defining goals,
establishing
strategy and
developing sub
plans to choose
alternatives and
coordinate activities
10

Issue # 1

Principles of Management / BSG – 201

Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

• Deciding where decisions will be made • Who will do what jobs and tasks •
• Deciding where
decisions will be made
• Who will do what jobs
and tasks
• Who will work for
whom
11
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Principles of Management / BSG – 201

Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

Inspiring Inspiring Leading Leading Leading Leading Motivating Motivating 12 Issue # 1 Principles of Management /
Inspiring
Inspiring
Leading
Leading
Leading
Leading
Motivating
Motivating
12
Issue # 1
Principles of Management / BSG – 201

Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

Monitoring progress towards goal achievement and taking corrective action when needed 13
Monitoring
progress towards
goal achievement
and taking
corrective action
when needed
13

Issue # 1

Principles of Management / BSG – 201

Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

Levels and Areas of Management Levels of Management Top managers Middle managers First-line managers Areas of
Levels and Areas
of Management
Levels of Management
Top managers
Middle managers
First-line managers
Areas of Management
14
Issue # 1
Principles of Management / BSG – 201
Marketing
Finance
Operations
Human
resources
Administration Other

Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

Creating a context for change Creating a context for change Developing commitment Developing commitment and ownership
Creating a context for change
Creating a context for change
Developing commitment
Developing commitment
and ownership in employees
and ownership in employees
Creating a positive organizational
Creating a positive organizational
culture through language and action
culture through language and action
Monitoring their business environments
Monitoring their business environments
15
Issue # 1
Principles of Management / BSG – 201

Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

What Middle Managers Do? Plan and allocate resources to meet objectives Plan and allocate resources to
What
Middle
Managers
Do?
Plan and allocate resources to meet objectives
Plan and allocate resources to meet objectives
Coordinate and link groups,
Coordinate and link groups,
departments, and divisions
departments, and divisions
Monitor and manage the performance
Monitor and manage the performance
of subunits and managers who report to them
of subunits and managers who report to them
Implement changes or strategies
Implement changes or strategies
generated by top managers
generated by top managers
16
Issue # 1
Principles of Management / BSG – 201

Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

Responsibilities of First-Line Managers Manage the performance of Manage the performance of entry-level employees entry-level employees
Responsibilities of
First-Line Managers
Manage the performance of
Manage the performance of
entry-level employees
entry-level employees
Encourage, monitor, and reward
Encourage, monitor, and reward
the performance of workers
the performance of workers
Teach entry-level employees how to do
Teach entry-level employees how to do
their jobs
their jobs
Make detailed schedules and operating
Make detailed schedules and operating
plans
plans
17
Issue # 1
Principles of Management / BSG – 201

Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

Interpersonal Informational Decisional Figurehead Monitor Entrepreneur Leader Disseminator Disturbance Handler Liaison Spokesperson Resource Allocator Negotiator Adapted
Interpersonal
Informational
Decisional
Figurehead
Monitor
Entrepreneur
Leader
Disseminator
Disturbance
Handler
Liaison
Spokesperson
Resource
Allocator
Negotiator
Adapted from Exhibit 1.4
H. Mintzberg, “The Manager’s Job: Folklore and Fact:.”
Harvard Business Review, July-August 1975.
18
Issue # 1
Principles of Management / BSG – 201

Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

Technical Skills Technical Skills Human Skills Human Skills Motivation to Motivation to Conceptual Skills Conceptual Skills
Technical Skills
Technical Skills
Human Skills
Human Skills
Motivation to
Motivation to
Conceptual Skills
Conceptual Skills
Manage
Manage
19
Issue # 1
Principles of Management / BSG – 201

Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

Ethics Knowledge Diversity Management MANAGER Innovation Globalization Customers E-Business Chapter 1, Stephen P. Robbins, Mary Coulter,
Ethics
Knowledge
Diversity
Management
MANAGER
Innovation
Globalization
Customers
E-Business
Chapter 1, Stephen P. Robbins, Mary Coulter, and
Nancy Langton, Management, Eighth Canadian Edition.
Copyright © 2005 Pearson Education Canada Inc.
20

Issue # 1

Principles of Management / BSG – 201

Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

History: Schools of Management Thought (start) Quality Quality Viewpoint Viewpoint Contingency Contingency Viewpoint Viewpoint Systems Systems
History:
Schools of
Management Thought (start)
Quality
Quality
Viewpoint
Viewpoint
Contingency
Contingency
Viewpoint
Viewpoint
Systems
Systems
Viewpoint
Viewpoint
Behavioral
Behavioral
Viewpoint
Viewpoint
Traditional
Traditional
Viewpoint
Viewpoint
1900
1900
1910
1910
1920
1920
1930
1930
1940
1950
1960
1970
1980
1990
2000
1940
1950
1960
1970
1980
1990
2000
21
Issue # 1
Principles of Management / BSG – 201

Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

 Administrative Management Goals:  Bureaucratic Management Efficiency Consistency  Scientific Management 22 Issue # 1
 Administrative
Management
Goals:
 Bureaucratic
Management
Efficiency
Consistency
 Scientific
Management
22
Issue # 1
Principles of Management / BSG – 201

Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

Characteristics of Bureaucratic Management  Rules—formal guidelines for the behavior of employees on the job 
Characteristics of
Bureaucratic Management
 Rules—formal guidelines for the behavior of
employees on the job
 Impersonality—employees are evaluated
according to rules and objective data
 Division of Labor—splitting work into
specialized positions
23
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Principles of Management / BSG – 201

Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

24 Issue # 1 Principles of Management / BSG – 201
24
Issue # 1
Principles of Management / BSG – 201

Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

Fourteen Principles of Management given by Henry Fayol 25
Fourteen
Principles of
Management
given by
Henry Fayol
25

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Principles of Management / BSG – 201

Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

What is Behavioral Viewpoint  Focuses on dealing effectively with the human aspects of organizations 
What
is Behavioral
Viewpoint
 Focuses on dealing effectively with the
human aspects of organizations
 Started in the 1930’s
 Emphasis on working conditions
 Workers wanted respect
Workers formed unions to bargain
with management
26
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Principles of Management / BSG – 201

Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

Systems View of Organizations 27 Issue # 1 Principles of Management / BSG – 201
Systems View of
Organizations
27
Issue # 1
Principles of Management / BSG – 201

Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

What is Contingency Approach? Problem or Situation Problem or Situation Important Important Contingencies Contingencies Solution or
What
is Contingency
Approach?
Problem or Situation
Problem or Situation
Important
Important
Contingencies
Contingencies
Solution or
Solution or
SSolution or
Solution or
Solution or
SSolution or
Action A
Action B
Action C
Action A
Action B
Action C
Source: Van Fleet, David D., Contemporary Management, Second Edition. Copyright © 1991 by Houghton Mifflin Company.
28
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Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

Positive Lower Costs Company and Higher Image Market Share Decreased Product Liability Quality 29 Issue #
Positive
Lower Costs
Company
and Higher
Image
Market Share
Decreased
Product Liability
Quality
29
Issue # 1
Principles of Management / BSG – 201

Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

Islamic Management Perspective: 1. Work is an act of Worship 2. Work as Trust – Amana
Islamic
Management
Perspective:
1.
Work is an act of Worship
2.
Work as Trust – Amana
3.
Discipline
4.
Reliance on Own Self
5.
Proper placement depending upon Skills & Talent
6.
Fairness and Proper Treatment of Employees
7.
Quality – Itqan
8.
Consultative and decision making skills – Shura
30
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31 Issue # 1 Principles of Management / BSG – 201
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Issue # 1
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Copyright ©2007 by South-Western a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan