Management Principles and Practices: Mr. S. Manikandan BA - Media Fourth Semester

MANAGEMENT PRINCIPLES
AND PRACTICES
Mr. S. Manikandan
BA – Media
Fourth Semester
1
Definition of Management
• Management :
On expanding : Manage – men – tactfully
Manage – Men – technology
Manage – men – as team
Manage – competencies
Manage – objectives (MBO)
Manage – men and things (resources – physical,
inanimate)
2
• 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
3
• MANAGEMENT IS A FUNCTION OF :
M = f(RESULTS, FEEDBACK,
RESULTS……)
MANAGING THE INTERNAL AND EXTERNAL
ENVIRONS IN THE BIO-ECOSYSTEMS,
THROUGH VARIOUS EFFECTIVE AND
EFFICIENT PROCESSES, WITH THE
OBJECTIVE OF ACHIEVING LAID DOWN
EXPECTED RESULTS.
4
All is PEOPLE RESOURCE
MANAGEMENT
• Why?
Get into discussion mode:
Who Created all that is around us:
Except the sun, the moon, air, ocean, sky, stars,
and the first human being and the first
animals/insects
Thereafter the development of clones, artificial
insemination, going on the moon, technological
advancements and moving towards civilization is
all done by people.
5
Definition of “Management”
• By Griffin:
“A set of management functions directed at
the efficient and effective utilization of
resources in the pursuit of organization
goals.”
Mr.S.Manikandan - Management 6
Principles
Definition….contd….
• By Koontz and Weihrich:
“Management is the process of designing
and maintaining an environment in which
individuals working together in groups,
efficiently accomplish selected aims.”
Principles
Peter F. Drucker-Father of Modern
Management
• Management is an organ, organs can be
described and defined only through their
functions
Principles
• The difference between Management Principles
and Management Functions:
• “What should I do (principles) to ensure that I do
my job (functions) with effectiveness and
efficiency.”
• Principles are strategies / processes which
enable the individual to do their functions better
to achieve laid down goals and objectives
• GOALS – qualitative achievements
• Objectives – could have a mix of quantitative
and qualitative
Principles
Terry & Franklin…
• 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.”
Principles
CONCEPTUAL SKILLS
Top level H
U
TE
M
CH
A
NI
Middle level N
CAL
S
SKI
K
LLS
Supervisory ILL
level/entry
level S
Principles
Henry Mintzberg…
• He has categorized these roles into three
groups
interpersonal roles
Informational roles
Decisional roles
Description of each of the roles……
Principles
Interpersonal Roles
• A manager serves as a figurehead – a
symbol; as a leader, ie., hires, trains,
encourages, fires, remunerates, judges;
and as a liaison between outside contacts
and the organizational)
Principles
Informational roles
• A manager serves as a monitor by
gathering information;
• As a disseminator of information
• As a spokesperson of the organization
Principles
Decisional Roles
• A manager serves as an entrepreneur by being:
An initiator
Innovator
Problem discoverer
Designer of improvement projects
As a disturbance handler of unexpected situations
As a resource allocator and
As a negotiator
Principles
• ALL THE THREE ROLES PUT
TOGETHER IS CALLED AS:
THE MANAGERIAL WORK ACTIVITY

APPROACH
Principles
• The whole management process is actually an
integration of the work activity (Mintzberg) and
the management functions
• MANAGEMENT FUNCTIONS :
Planning, Organization, Co-ordination, motivation,
and control are Universal.
These functions are performed in all organizations
– SMEs, Large, not-for-profit organizations, etc.
Principles
Definitions
• Planning : Management functions that involves
the process of defining goals, establishing
strategies for achieving those goals and
developing plans to integrate and coordinate
activities
• Organizing: management function that involves
the process of determining what tasks are to be
done, who is to do them, how the tasks have to
be grouped, who reports to whom, and where
decisions are to be made
Principles
• Leading : management functions that involves motivating
subordinates, influencing individuals or teams as they
work, selecting the most effective communicating
channels or dealing with any with employee behavior
issues
• Controlling : Management functions that involving
monitoring actual performance, compiling actual to
standard, and taking action if necessary
• Management process : The set of ongoing decisions and
work activities in which managers engage as they plan,
organize, lead and control.
Principles
The pyramid to the top
• Talk of management levels:
• Top level
• middle level
• Front line supervision
• Non-managerial work force
Principles
Leadership
• Blake and Mouton:
R1 ---- R2 ------ R3
R1 = RESOURCES
R2 = RELATIONSHIPS
R3= RESULTS
Principles
What is leadership?
• A sound way of exercising leadership is
through the use of what are called as three
Rs – Resources, relationships and results.
How a person operates in this context can
make a difference between organization
success and failure
Principles
THE ;LEADERSHIP GRID : Source: Scientific
Methods Inc.
X & Y axis on a scale of 1 – 9
C
High 1,9 – Country Club Team Mgmt 9,9
O
N Mgmt
C
E
R 5, 5
N
F
O Middle of the Road
R Management
P
E
O
1,1 Impoverished
P Authority Compliance 9,1
low Mgmt
L
E
Low High
CONCERN FOR PRODUCTION
Principles
How concerns for Production/People affect
Leadership Style:
1,9 : Country Club Management : Thoughtful attention to the
need of people for satisfying relationships leads to a
comfortable, friendly organization atmosphere and work
tempo.
1,1 : Impoverished Management : Exertion of minimum effort
to get required work done is appropriate to sustain
organizational membership
9,1 : Authority Compliance : Efficiency in operations results
from arranging conditions of work in such a way that human
elements interfere to a minimum degree
9,9 : Team Management : Work accomplishment is from
committed people; interdependence to a “common stake” in
organization purpose leads to relationships of trust and
respect
Principles
• 9+9 : Paternalistic management :
Reward and approval are granted to people in
return for loyalty and obedience; failure to
comply leads to punishment
OPPORTUNISTIC MANAGEMENT : In this style,
organization performance occurs according to a
system of exchanges, whereby effort is given
only for an equivalent measure of the same.
People adapt to the situation to gain maximum
advantage from it. (all leadership points ie. 1,1;
1,9;, etc., converge at a new point – OPM)
Principles
• THE MOTIVATIONAL DIMENSIONS FOR
EACH STYLE –
• PLEASE REFER TO LEADERSHIP GRID
OF BLAKE AND MOUTON.
Principles
Management…..
• Is based on a systematic body of knowledge-
laws, principles and concepts –
• And this knowledge is universal
• If a manager has this fundamental knowledge
• And knows how to apply it to a given situation
• He should be able to perform the managerial
functions efficiently and effectively
Principles
Management……
• Management Practice is regarded as an
art
• But, organized knowledge about
management is a science
• THUS MANAGEMENT IS BOTH AN ART
AND A SCIENCE
Principles
Management …..
• Is also a profession
Separation of ownership from control
The rules and regulations framed by the govt to
protect citizens from exploitation
The growth of trade union movement
The desired of business leaders for social status
And the
Impetus of the scientific management philosophy
which stresses the need for technically trained
professional managers – contributed to the
PROFESSIONALIZATION OF MANAGEMENT.
Principles
Most important human activities is
managing
Mackenzie King remarked:
“Labor cannot do anything without capital,
Capital nothing without labor and neither
Can do anything without the guiding genius
of management.”
Principles
• This should have enabled you to
understand what management is at a
fundamental level of definition and
understanding……..
• Any questions……
Principles
Evolution of Management Thought
• Give a handout titled:
“Early streams of Managerial ideas
responding to situational demands
Put students on discussion mode
Principles
Schools of Management Thought
• It was during the 20th century that a
systematic study of management began
Principles
4 schools of thought
(by: Newman, Summer and Warren)
• Productivity approach
• Behavioral approach
• Rationalistic model approach, and
• Institutional approach
Principles
Hutchison’s classifications
• Classical management theory
• Human behavior theories
• Social and political systems approaches
• Ecological systems approach and
• Rational decision making concepts
Principles
• THE CONTRIBUTORS ON
MANAGEMENT PRICIPLES…
Principles
Charles Babbage (1792-1871)
• Benefits of division of labor
• Use of science and mathematics
• Emphasis on cost reduction
Principles
Henry R. Towne
• Main contribution is :
“That he set the climate and atmosphere for
the later application of scientific methods.
Of lesser importance was his plan of gain-
sharing as a system of wage payment.”
Principles
Henry Metcalfe (1847-1917)
• In 1885, his pioneering work:
The Cost of Manufacturers and the administration
of Workshops, Public and Private
Theory of Management was based on system and
control
He insisted that all authority should emanate from
a given source, with a flow back to that source of
detailed information concerning expenditures
and accomplishments
Principles
Henry Laurence Gantt (1816-1919)
• Educated from John Hopkins College
• Engineer, as draughtsman and later Asst.
engineer
• His publications: Work, Wage and Profits
(1910); Industrial Leadership(1916); and
Organizing for Work.(1919)
Principles
Gantt’s Thoughts….
• Task and Bonus Plan
• Daily Balance Chart (Gantt Chart)
• Humanizing Science of Management
• Important of Leadership
• Training of Workers
• Social Responsibility of Business
(Also called as : Forerunner of modern industrial
democracy; also called as “apostle of industrial
peace”)
Principles
Harrington Emerson (1853-1931)-
Popularizer of scientific
management
• Principles of Efficiency (12)
1. Clearly define ideal 2. commonsense 3.
Competent Counsel 4. Discipline 5. Fair deal
6. Reliable, immediate, adequate and
permanent records 7. Dispatching (production
scheduling and control techniques) 8.
Standards and schedules 9. Standardized
conditions 10. Standardized Operations 11.
Written standard practice instructions 12.
Efficiency reward
Principles
• According to Ernest Dale, Emerson really
advocated the elimination of waste:
a. Setting definite logical goals for all
company operations and making
managers down the line understand
them so that they would not be seeking
private goals of their own
b. Production planning and scheduling and
the use of written standard practices
c. Better utilization of machine and man
Principles
• d. Cost Accounting
• e. Standards and specifications for
materials
• f. Standardization of parts and products as
far as possible
• g. A rational approach to capital
expenditures
• h. Better selection, placement, and fair
treatment of employees and a system of
financial incentives as equitable as
possible
Principles
Frank Bunker Gilbreth (1868-1924)
and Lillian Moller Gilbreth(1878-
1972)
• FBG: authored: Concrete Systems (1908); Field
System (1908); Motion Study (1911); Power of
Scientific Management (1912); Fatigue Study
(1916); Applied Motion Study (1917, with Lillian
Gilbreth); and Motion study for the
Handicapped (1920)
• The Father of Motion Study was a
contemporary of Taylor and Gantt
Principles
• Lillian Moller Gilbreth:Professor of
Management at Purdue University. Her
famous works: The Psychology of
Management (1914) and Quest for the
Best Way (1924)
Principles
Contributions by Frank Gilbreth
• Motion study
• Time Study
• One best way
• Training of personnel
• Three position plan of promotion (each worker should be
considered to occupy three positions: a. the job he held
before promotion to his present position b. his present
position and c. the next higher job
• Part of his work, then would be teaching the man below
him and learning from the man above him. In this way,
he would qualify for promotion himself and help to
provide a successor to his current job.
Principles
Contributions of Lillian Gilbreth
• It should be noted that FBG was greatly assisted by
Lillian Gilbreth whom he married in 1904
• Both of them used motion picture films to analyze and
improve motion sequences
• Both developed the process of chart and the flow
diagram to record process and flow patterns used in a
work situation
• They emphasized written instructions to avoid confusion
and misunderstanding (the white list card system)
• The Gilbreths urged tha the POM and motion analysis
could effectively be applied to huge untapped area of
self-management. They started to search into the area of
fatigue and its impact o health and productivity.
Principles
Robert Owen (UK)-The father of
personnel management
• Contributions:
Improvement in Factory and domestic
conditions of his employees
Social reforms (creating model community
out of his mills town; educational reforms)
Owen said that his object was not to be a
“mere manager of cotton mills, but to
introduce principles in the conduct of the
people.”
Principles
• MODERN GURUS - POM
Principles
Fredrick Taylor
• The credit of systematic study and practice
of management goes to FWT, very well
known as FATHER OF SCIENTIFIC
MANAGEMENT
• Experiments of Taylor ……
Principles
Midvale experience
• At Midvale Steel Company, he found that
individual workers had their own notions about
work and different workers performed the same
task in different ways
• He realized that greater output was possible on
the part of the workers but most of them were
engaged in what he called ‘systematic
soldiering.’
• The solution: the first task of management was
to know what constituted a proper day’s work
• He conducted time studies at Midvale Steel
Company which proved of immense use to him
Principles
Bethlehem Experiments – Pig-Iron
Handling
• Taylor was hired by the Bethlehem Steel Company to
increase the output of one of the larger machine shops
which had been a serious production bottleneck
• Conclusion: Periodic rests enabled a worker to produce
more than continuous work. By a systematic resting time
and improved methods average productivity was raised
from 12.5 tons to 47.5 tons per day.
• Taylor began selecting workers and training them in
handling pig-iron
• The original crew was 75, this reduced dramatically
• The earnings of the crew increased from USD1.15 to
USD 1.85 per man per day.
Principles
Taylor’s prescription for Manager’s
responsibilities
• Under four heads :
a. They should develop a science for each element of man’s work
which replaces the old rule of thumb method
b. They should scientifically select and then train, teach and develop
the workmen
c. They should heartily cooperate with the men so as to ensure
performance of work in accordance with the principles of the
science which have been developed
d. There should be almost equal division of work and responsibility
between management and workmen
Taylor, wanted that management should take the responsibility of
planning, directing and organizing work.
HE DEEMED IT ESSENTIAL TO SEPARATE THE PLANNING OF
WORK FROM ITS EXECUTION, SO THAT EACH INDIVIDUAL
COULD WORK AT HIS BEST EFFICIENCY AND COULD BE
COMPENSATED ACCORDINGLY.
Principles
Taylor’s Management Principles
• Large, daily, defined task
• Standard conditions – skill sets and tool sets
to be made available with authority along
with clear cut objectives and expectations;
this is called as ACCOUNTABILITY
• High Pay for success
• Loss in case of failure
• Separation of planning from doing – the most
valuable insights of TAYLOR
• Functional foremanship
Principles
HENRY FAYOL= Father of
Principles of Management
• Division of labor
• Authority and Responsibility
• Discipline
• Unity of command (one boss---
subordinate)
• Unity of Direction (one head and one plan)
• Subordination of Individual Interests to
General Interest (FIRM, FAST AND FAIR)
Principles
• Remuneration of Personnel (Pay by Results;
motivational – ESOPS, etc)
• Centralization (optimization between
centralization and decentralization; as the
human body – brain is the centralized organ)
• Scalar Chain – This is “the chain of superiors”
ranging from the ultimate authority to the lowest
ranks. THE ORGANOGRAM
• Order: Right man in the right place; competency
specific; man should fit the job and not the other
way round; or else this will be like A SQUARE
PEG IN A ROUND HOLE.
Principles
• Stability of tenure of personnel – retention
of talent; attrition; turnover of people
• Initiative – encourage initiative among
subordinates
• Esprit-de-Corps : UNION IS STRENGTH;
team work; cohesiveness among the
members
Principles
Fayol’s Elements of Management
• Fayol made a distinction between
“General Principles of Management” and
“elements of Management.”
• The latter was regarded as functions of
management. Dividing them into:
PLANNING, ORGANIZATION, COMMAND,
COORDINATION AND CONTROL
Principles
Planning
• Planning : most important and difficult managerial
function.
• Planning meant “looking ahead” and to foresee – both to
assess the future and make provision for it
• He considered – unity, continuity, flexibility and provision
as the broad features of a good plan of action
• A GOOD PLAN IS A PRECIOUS MANAGERIAL
INSTRUMENT
• A GOOL PLAN ALSO HAS TO BE IMPLEMENTABLE
Principles
ORGANIZING
• Means : “to organize a business is to
provide it with everything useful to its
functioning, raw materials, tools, capital,
personnel.”
• Fayol concerned himself both with
structure and process, listing 16
managerial duties and emphasizing the
necessity for clear objectives, authority,
decisions and task
Principles
COMMAND/DIRECTION
• After the organization is formed, it is the mission
of command to set it going.
• For every manager, the object of command is to
get the optimum return from all employees of his
unit in the interest of the whole concern
• The art of command, according to Fayol, rests
on certain personal qualities and knowledge of
general principles of management
Principles
COORDINATION
• To coordinate is to harmonize all the activities of a
concern so as to facilitate its working and its success
• According to him, in a well coordinated enterprise the
following facts are to be observed;
1. Every dept works in harmony with the rest
2. Divisions or sub-divisions in each dept are precisely
informed as to the share they must take in the
commercial task and the reciprocal aid they are to
afford one another
3. The working schedule of the various departments and
sub-divisions thereof is constantly attuned to
circumstances
Principles
CONTROL/MEASUREMENT AND
FEEDBACK
• According to Fayol, control consists in verifying
whether everything occurs in conformity with the
plan adopted, the instruction issued and the
principles established
• Its object is to point out weaknesses and errors
in order to rectify them and prevent recurrence.
• It operates on everything – resources (things),
people and actions
Principles
Key principles of Mgmt of FAYOL
• Unity of command
• Unity of direction
• Responsibility equal to authority and
• Scalar Chain
Principles
MAX WEBER- THETHEORY OF
AUTHORITY STRUCTURES
• There are three factors involved in the
understanding of any organization as under:
The laws and the traditional taboos of the society
Individual leadership (charisma) which is largely
emotional
Bureaucracy, i.e., The mass of administrators who
carried out the laws and policies of the
government
Principles
Three types of authority
• Charismatic Authority – based on the
personal magnetism of the leader
• CHARISMA : PERSONAL QUALITY OR
GIT THAT ENABLES AN INDIVIDUAL TO
IMPRESS AND INFLUENCE MANY OF
HIS FELLOWS, A LEADER DOMINATES
DECISION MAKING
Principles
TRADITIONAL AUTHORITY
• In this type of authority system – the
leader has authority by virtue of his status
that he has inherited
• The extent of his authority is fixed by
custom
• The officials who carry out the orders are
like ‘household staff’ of the master
Principles
Rational-Legal authority =
bureaucracy
• This authority system dominates, and it is most efficient
one
• This system is characterized by rationality and legality
• The system is rational because the means are expressly
designed to achieve certain specific goals
• The org is like a well designed machine with a certain
function to perform, and every part of the machine
contributes to the attainment of maximum performance
of that function.
• It is legal, because authority is exercised by means of a
system of rules and procedures through the office which
the individual occupies at a particular time
Principles
BUREAUCRATIC FUNCTIONS
ARE:
• Regular activities aimed at organizational goals
– so that they are distributed as fixed official
duties
• All activities follow the organizational principles
of hierarchy
• Operations receive equal treatment under a
consistent systems of abstract rules
• Officials operate as formalistic personalities
without becoming emotionally involved.
Principles
Lyndall Urwick – 6 sets
• Principle of Investigation
• Principle of Objective
• Principle of Organization
• Principle of Direction
• Principle of Experiment
• Principle of Control
(Urwick’s principles of management and
organization – source: A dictionary of Industrial
Administration edited by John Lee )
Principles
Urwick’s Principles of Organization
• This was his main contirbutions to original
thinking in regard to the framework of
management
• The principles were modified and
published by AMA
• They are :
Principles
• Principle of Objective
(purpose/mission/objectives and vision)
• Principle of Specialization : the activities of
every member of any organized group
should be confined, as far as possible, to
the performance of a single function
• Principle of coordination: The purpose of
organizing per se, as distinguished from
the purpose of the undertaking, is to
facilitate coordination and unity of effort.
Principles
• Principle of Authority: In every organization
group, the supreme authority must rest
somewhere. There should be a clear line of
authority from the supreme authority to every
individual in the group
• Principle of Responsibility : The responsibility of
the superior for the acts of his subordinate is
absolute
• Principle of Definition: The content of each
position, the duties involved, the authority and
responsibility contemplated and the relationships
with other positions, should be clearly defined in
writing, and published to all concerned
Principles
• Principle of Correspondence: in every
position, the responsibility and the
authority should correspond
• Principle of Span of Control: No person
should supervise more than five, or at the
most six direct subordinates (reportees)
whose work interlocks
• Principle of Balance: The various units of
an organization should be kept in balance
• Principle of continuity : Reorganization is a
continuous process, in every undertaking
specific provision should be made for it.
Principles
George Elton Mayo (1880-1949)
• He has been called the founder of the “human
relations school.”
• He became famous on account of the
Hawthorne experiments
• These experiments had a significant impact on
management thought, and considerably
influenced the “human relations movement.”
• Experiments conducted in the Hawthorne Plant
of the Western Electric Company in Chicago –
from 1927 to 1932.
Principles
Hawthorne studies – three general
phases
• 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
Principles
TEST ROOM STUDIES
• Illumination Experiments: Two test groups – varied
effects of lighting on output vs. no change situation; the
results were that in both the groups the output increased.
Conclusion that environmental factors like lighting may
not be the only factor, there could be other variables
• Relay Assembly Test Room Experiments: This study
was made to discover the anomalies of the previous
experiments. Numerous variables were put into action –
room conditions, pauses during work, piece-work, work
without pauses and shorter working hours. After 12
week study, the output went up to a record level
Principles
• Interviewing studies: An interview program of
thousands of workers was conducted with the object of
finding out the attitude of the employees towards their
job, working conditions and supervision
The interviewing program revealed the following points:
a. Merely giving a person an opportunity to talk and air
his grievance has a beneficial effect on his morale
b. Complaints are not necessarily objective statements of
facts. They are often symptoms of more deep-seated
disturbances
c. Workers are influenced in their demands by
experience both inside and outside the factory
d. Worker is satisfied or dissatisfied not in terms of any
objective frame of reference but rather in terms of how
he regards his social status in the firm and what he
feels he is entitled to in the way of rewards
Principles
Observational studies
• The Bank Wiring Observation Group Study constituted
the last phase of Hawthorne studies
• It was conducted to investigate the social pattern of a
group of fourteen workers and their associated
supervisors
• The main point of difference between this study and the
earlier test room studies was that no experimental
changes were planned but efforts were directed to study
the group in its customary functioning
• This study revealed that there existed a GROUP NORM
in terms of which the behavior of different individuals
was in some sense being regulated
Principles
• This group was restricting the output on account of various forms of
social pressures
• The group had for itself a standard of a day’s work which was not
imposed upon them, but had apparently been evolved by workmen
themselves
• The group had various social pressures to see that the workers did
not exceed the group output norm, and nobody attempted to attain
official production targets
• Those who attempted to exceed became targets of social
disapproval, verbally or physically
• This study showed the importance of informal, social group in
business organization
• A member of such a group cared more for the opinion of the group
rather than for financial incentives of the management
• IT WAS THE GROUP THAT DECIDED HIS ATTITUDE TO WORK,
MANAGEMENT AND LEVEL OF PRODUCTION
• THESE STUDIES FURTHER REAFFIRMED THE IMPORTANCE
OF INFORMAL GROUP IN THE MOTIVATION OF WORKERS.
Principles
CONCLUSIONS OF HAWTHORNE
STUDIES
1. Environmental factors not the sole factors
affecting productivity
2. Worker is not an economic man (not
purely motivated by money alone)
3. Importance of recognition, Security and
Morale
4. Importance of Informal group
5. Importance of total work situation
6. Complaints as symptoms
Principles
Mary Parker Follett-famed political
and social philosopher
• Her main contributions:
Was formulation of principles of human association and organization,
especially in terms of industry
The basis of her philosophy was that one cannot separate work from
human beings
Business is a series of interrelationships between people
Follett pleaded that there is a great need to recognize the motivating
desires of the individual and the group
She said that the basic problem of any organization was that of
harmonizing and coordinating the group efforts to achieve the most
efficient effort towards completing a task
She talked about power, leadership and authority.
Her ideas are as under:
Principles
Conflicts
• Follett said that conflicts have a constructive role
to play in an organization.
• Conflicts are not “warfares” but the “appearance
of difference, difference of opinion, of interests.”
• Conflicts are neither good or bad; if used
constructively their results are god and if used
destructively their results are bad
• She suggested that conflicts can be harnessed
to the service of the group much as an engineer
uses friction
Principles
Three ways to resolve conflicts
• Domination (victory of one side over the other. Follett did not
advance this method, because of use of force beyond a certain
point lessens energies and self-respect)
• Compromise (This is better than Domination; both sides surrender
some part of what they are demanding, i.e., for a compromise there
must be a mid-point between the needs and desires of both parties
on which they agree, willingly or unwillingly. This method is still
commonly unsatisfactory)
• Integration (best way to resolve conflicts; it means combination of
what is best in all view points, i.e, bringing about unity of conflict in
which both sides se a way out which will satisfy their real needs. It
resolves conflicts for good
• FOR DETAILS ATTEND A CONFLICT MANAGEMENT CLASS
Principles
Follett’s views on Leadership
• It is the role of the leader to educate and
train
• The leader is responsible for integrative
unity
• The great leader is one who is able to
integrate the experience of all and use it
for a common purpose
• Leadership is not the product of position
but of knowledge
Principles
Follett’s views on Authority and
Responsibility
• Authority belongs to the job and stays with
the job
• An executive decision is an movement in a
process
• Authority and responsibility go with
function
Principles
Follett’s views on Co-ordination
• CONTROL , Follett, meant fact control
rather than human control, and central
control meant synthesis rather than
domination from the center
• The four principles of organization at
which she finally arrived at provided for the
need of four kinds of coordination as the
basis of good management:
Principles
4 principles of coordination
• Coordination by direct contact of the responsible people
concerned. Ideas, ideals, goals and purposes can be
easily stated and understood through direct personal
contact and communication
• Coordination should be achieved in early stages of
planning and policy-making. It would be easier to secure
the willing enthusiastic adherence of all concerned to any
new principles and policy if they have participated from
the beginning. For this principle – Follett had suggested
cross relations between heads of departments instead of
up and down the line through the chief executive
Principles
• In coordination all factors in a situation are
reciprocally related
• Coordination is a continuous process. It
means that coordination should be left to
chance and it is the duty of the coordinator
to strive for it constantly so that the efforts
of the group are directed towards
achieving the common goals
Principles
Follett on PROFESSIONAL
MANAGEMENT
• Management can develop as a profession on two bases:
a. Its recognition as a function of or service to the community
b. Application of an accepted and proven body of knowledge and
principles
Managers can become professional by working for long hours and thus
getting satisfaction from work.
According to her, a professional manager has three main jobs:
1. S/he must be loyal to company

2. S/he must inform the public what are good practices and
standards (today it is called Corporate Governance) and
3. S/he must try to extend the boundaries of knowledge in his/her
profession and then pass on his/her extra knowledge for the
benefit of all.
Principles
CHESTER I. BARNARD (1886-
1961)
• While Fayol developed the principles of management,
Barnard proved that such principles could be applied in
practice
• He defined organization as : “ a system of consciously
coordinated activities or forces of two or more persons.”
• He believed people in organization contributed services
and not themselves
• Barnard tried to analyze how organization functions as a
‘living body.’
• For him, to understand the small organization was to
understand the large organization because all
organizations possess certain common characteristics
Principles
Elements of Organization
• Willingness to cooperate
• Common purpose and
• Communication
Are the elements of an organization
Principles
Equilibrium internal and external
• Barnard firmly believe that an organization is separate
from the environment in which it operates
• The person who contribute services to the orgs has two
distinct roles – the personal role and the an
organizational role
• He suggested that orgs must maintain internal and
external equilibrium
• Internal equilibrium he meant: reward and satisfaction for
the participation; thus the balance between what
employees get out of work (money, status, reward, etc)
and what they contribute (time, worry, discomfort, etc)
must be maintained
• The relationship of the org to the environment is not
static but functional
Principles
Acceptance theory of authority
• Barnard disagreed with the classical view that
authority transcends from top to bottom
• He said that authority transcends from bottom to
top i.e. it is delegated upwards
• Authority does not depend on commands, but on
a reciprocal relationship; a communication
becomes authoritative by virtue of its
acceptance by a contributor.
• Thus AUTHORITY DEPENDS ON
COMMUNICATION
Principles
• A PERSON CAN AND WILL ACCEPT A
COMMUNICATION AS AUTHORITATIVE ONNLY
WHEN FOUR CONDITIONS ARE
SIMULTANEOUSLY FULFILLED:
1. S/HE can and does understand communication
2. At the time of his/her decision, he believes that it is not
inconsistent with the purpose of the organization
3. At the time of his/her decision, s/he believes it to be
compatible with his / her personal interest as a whole ,
and
4. s/he is able, mentally and physically, to comply with it.
Principles
Zone of Indifference
• Barnard developed the concept of ‘zone of indifference.’
• He believed that the form and nature of the acceptance
of the communication differ and it depends upon the
zone of indifference
• Certain orders are acceptable, certain barely acceptable,
and certain orders are unquestionable
• Those orders which are unquestionably acceptable lie
within the zone of indifference, ie. They lie within the
range that in a general way was anticipated at the time
of undertaking the connection with their organization
Principles
Barnard’s views on Incentives
• Incentives are prerequisites of cooperation in any organization.
Barnard was of the view that people in the org do not work for
money alone. Some of the incentive types are:
a. Material or financial inducements
b. Personal opportunities, such as status, power, et
c. Good physical conditions
d. Attractiveness of social conditions
e. General conditions adapted or suitable to the individual’s ideas
and attitudes
f. Opportunities for participation
g. Good communication and
h. Opportunities for satisfying perosnal motivation such as pride in
work, sense of adequacy, etc.
Principles
Executive decisions and functions
• The executive who occupies a crucial position in the
organization has three basic functions. They are:
a. Maintaining org communication. It includes
determining the scheme of organization, fostering
loyalty in subordinates and maintaining the informal
system
b. Obtaining essential services from individuals: It
includes correct selection of individuals, and provision
of the necessary inducements, maintaining morale
(subjective feeling toward work), providing incentives
and sanctions, supervision and training
c. Formulating purposes and objectives at all levels
Principles
Barnard on Communication
• Principles of Communication:
1. Channels of communication must be definitely known
by all
2. These channels must be formally laid down
3. Each channel should be as short as possible
4. Generally communication should go through all stages
in the channel
5. People acting as communication centers (managers)
should be adequate to their tasks
6. Channels of communications should not be interrupted
while the organization is functioning
7. Communications (orders) must come from points
where the necessary authority is known to exist
Principles
Barnard on Leadership
• The real test of the executive or manager
is leadership
• Leaders should recognize that low morality
will not sustain leadership long

Principles
Alfred P. Sloan (1875-1966)
• Greatly responsible for the success of General Motors
• Sloan regarded two factors as important for the success of a
business:
a. Motivation – through incentive compensation
b. Opportunity – through decentralization
He said that good management rests on a reconciliation of
centralization and decentralization or “decentralization with
coordination control”
Decentralization results in initiative, responsibility, development of
personnel, decisions close to facts, and flexibility.
Coordination results in efficiencies and economies
Authority and responsibility must be congruent and commensurate to
each other

Principles
Sloan’s real partnership process…
with his executives was done by
a. Utilizing their abilities to the full
b. A fair policy of promotion
c. Offering real incentives
d. By using persuasion rather than
command

Principles
GM PLAN: IN 1920, INDICATES
HIS SEVERAL THOUGHTS
• This plan was based on two principles:
a. Decentralization of operation and
b. Centralized staff services to advise the line on
specialized phases of the work, and central
measurement of results to check the exercise
of delegated authority
(staff function = support function; line function
= responsible for the “earnings” for the
corporation. Thus only line function is
SALES AND ALL OTHER FUNCTIONS
INCLUDING MARKETING ARE STAFF
FUNCTIONS.
Principles
Points emphasized in the PLAN:
a. Relationship of various divisions of a
corporation with one another as well as with
the central organization
b. Status of central organization
c. Coordination of operations of the central
organization with the corporation as a whole
d. Centralization of control of all the executive
functions in the CEO
e. Limit on the number of executives reporting
directly to the President

Principles
Sloan’s Principles of Organization
1. Establishment, by the Board of Directors and its
committees, of uniform policies and procedures to
govern the overall operations of all divisions in any
area in which such consistency is judged to be
necessary for the best interests of the corporation as a
whole
2. Delegation of full authority, within this framework of
uniform policy and procedures, with corresponding
responsibility for the use of the authority so delegated
3. A continuous flow of ides and information upward and
downward through the management organization, by
means of executive visits, formal reports and frequent
meetings of line and staff executives at all appropriate
levels

Principles
ABRAHAM H. MASLOW :THE
FATHER OF HUMAN
PSYCHOLOGY (1908-1970)
• 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

Principles
Maslow’s Hierarchy of Needs
Self actualization
Self-esteem
Love, Affection & Social
Safety & Security
Stimulation
Physiological

Principles
Frederick I. Herzberg – a noted
behaviorist of USA (1923-
• His greatest contributions to management thought : his
Two-Factor Theory, Two-Human Needs Theory, KITA
concept, and illuminating ideas about job loading
(vertical and horizontal) ie is job enrichment
• He assumes that the individual is the center of the work-
managerial situation
• He said that if anything meaningful was to be found
about motivation, the question of factors-attitudes-effects
must be studied as a whole and not as an isolated item
• He believed management is monolithic (huge, massive,
single stone like)

Principles
MOTIVATION HYGIENE THEORY
Hygiene factors MOTIVATORS
(Environment) (the Job itself)
Policies and administration Achievement
Supervision Recognition for accomplishments
Working conditions Challenging Work
Interpersonal relations Increased responsibility
Money, status, Growth and development

security
Principles
Relationship between Maslow’s and
Herzberg’s Theories to Motivation
SITUATION
MASLOW
MOTIVES
(NEEDS)
BEHAVIOR
GOAL
(INCENTIVES)
HERZBERG
Principles
Douglas M. McGregor-(1906-1964;
a social psychologist)
THEORY X THEORY Y
Work is inherently distasteful to most people Work is as natural as play, if the conditions are
favorable
Most people are not ambitious, have little desire Self-control is often indispensable in achieving
for responsibility, and prefer to be directed organizational goals
Most people have little capacity for creativity in The capacity for creativity in solving
solving organizational problems organizational problems is widely distributed in
the population
Motivation occurs only at the psychological and Motivation occurs at the social, esteem, and self-
safety levels actualization levels, as well as physiological and
security levels
Most people must be closely controlled and often People can be self-directed and creative at work
coerced to achieve organizational objectives if properly motivated

Principles
David C. McClelland
• Best known for his achievement
motivation, his research ranges from
personality to consciousness.
• Along with John. W. Atkinson, he
developed the scoring system for the
THEMATIC APPERCEPTION TEST (TAT)
which was used in achievement motivation
research

Principles
McCllelland’s need theory
• Need for power
• Need for Affiliation
• Need for Achievement
• Need for training

Principles
Henry Mintzberg (1939-
• Well known luminary in the field of
management
• Dubbed as ICONOCLAST – as he
rejected several accepted management
practices
• He is against the B-schools in USA – their
curriculum, case study methods, etc.

Principles
Contributions-The managerial roles
• He grouped ten basic roles performed by
managers into three major classes ( as a
result of detailed research on the activities
of five practicing CEOs):
INTERPERSONAL ROLES
INFORMATIONAL ROLES
DECISIONAL ROLES

Principles
Interpersonal roles
• While performing interpersonal roles,
mangers work as:
1. Figureheads
performing number of routine duties of legal
or social nature; these duties include
handling ceremonies, signing documents
required by law, and officially receiving
visitors.
Principles
• Leaders
As leaders, the mangers perform all
managerial activities involving
subordinates including hiring, training and
firing. As leaders they are responsible for
motivation and direction of subordinates

Principles
• Liaison persons
Serving as liaison between outside contacts
(community, suppliers,, etc) and the
organization

Principles
Informational roles
• Mintzberg pointed out that managers
function as nerve centers in which they
obtain information about the environment
and their own organization by monitoring
them. The three informational roles are:
Monitor
Disseminator
spokesperson
Principles
• Montiors : As monitors, managers seek and are
presented with information about the operations for
which they are responsible and bout the environment
• Disseminators: they are disseminators of information
flowing from both external and internal sources;
Managers pass information from outside their units to
inside and also from one subordinate to another
• Spokesperson: mangers speak on behalf of their units to
outsiders. They transmit information to outsiders on
organization’s plans, policies, actions and results and
serve as experts on organization's industry
THESE INFORMATIONAL ROLES PROVIDE A
COMMUNICATIONS NETWORK FOR THE
ORGANIZATION.
Principles
Decisional roles
• Four of them as per Mintzberg:
Entrepreneur
Disturbance handler
Resource allocator
negotiator

Principles
As ENTREPRENUEURS : managers are initiators, innovators, problem-
discoverers and designers of improvement projects that direct and control
change in the organization. Thus, entrepreneurial work refers to mangers’ efforts
to improve the functioning and accomplishments of their organizations
As disturbance handler: managers take corrective action in response to

unforeseen problems such as resignation of subordinates, breakdown of
productive equipment, etc. It is worthwhile to mention that while entrepreneurs,
managers voluntarily take initiative to improve performance, as disturbance
handler
As resource allocator: they are responsible for allocating human, physical, and
monetary resources. MAKING DECISIONS ABOUT HOW LIMITED TIME,
MONEY, MATERISALS, LABOR HOURS AND OTHER RESOURCES WILL BE
APPLIED TO MULTIPLE AND COPETING CLAIMS UPON THEM IN THE
WORK OF RESOUCRCE ALLOCATION ROLE
Mangers as Negotiators: they discuss issues and bargain with other units to gain
advantages for their own units. Mintzberg opines : that “negotiation is resource
trading in real-time.”

Principles
Relationship of Managerial roles
and process
ROLE PORCESS
PLANNING
INTERPERSONAL
LEADING
INFORMATIONAL
ORGANIZIING
DECISIONAL
CONTROLLING

Principles
PETER F. DRUCKER (1909-2005)
Austrian by birth
• Numerous books – around 35/36
• Drucker is repeatedly preaching a philosophy of management, that
of management by objectives and self-control
• He pleaded for creative management instead of bureaucratic
management
• He said that managers should go beyond decentralization, and
design principles of taskforce team, simulated decentralization and
the systems organizations
• Managers should learn to lead people rather than contain them
• He said that the Innovative org – the org that resists stagnation
rather than change – is a major challenge to management
• More and more organizations which are innovative and productive
for society, economy and the individuals should come up
• His first line in “practice of management” – “The manager is the
dynamic, life-giving element in every business.”

Principles
Jobs of Management
• According to Peter Drucker, management
has the following three tasks:
ECONOMIC PERFORMANCE
PRODUCTIVE WORK AND WORKER
ACHIEVEMENT
SOCIAL IMPACT AND SOCIAL
RESPONSIBILITIES

Principles
Business objectives and
entrepreneurial functions…Drucker
• There is only one valid definition of business
purpose : to create a customer
• According to him, “it is the customer who
determines what a business is. It is the
customer alone whose willingness to pay for a
good or for a service converts economic
resources into wealth, things into goods.”
• CONCEPT OF PROFIT AS THE OBJECT OF
BUSINESS
• Profit is not the explanation, cause or rationale
of business behavior and business decisions but
the TETST OF THEIR VALIDITY.
Principles
On Profit….Drucker
• The profit motive and profit maximization are, in
his opinion, ‘irrelevant’ in managing a business.
• However, profits are necessary on account of
risk in business
• Profit is the test of performance; it is premium for
the risk of uncertainty; profit alone can supply
capital for tomorrow’s jobs, profit pays for the
economic satisfaction and services of a society

Principles
• As the purpose of business is to create a
customer, the business enterprise has
two functions as under :
1. Marketing
2. Innovation
Rest is cost.

Principles
Drucker on Objectives…
• Objectives are not fate; they are direction
• They are not commands; they are
commitments
• They do not determine the future; they are
means to mobilize the resources and
energies of the business for the making of
the future

Principles
The following areas where objectives are to be set:
Marketing; Innovation; Human organization; Financial resources
Physical resources; Productivity; Social responsibility
Profit requirements
OBJECTIVES IN THESE AREAS ENABLE MANGERS TO :
A. ORGANIZE AND EXPLAIN THE WHOLE RANGE OF BUSINESS
PHENOMENA IN A SMALL NUMBER OF GENERAL STATEMENTS
B. TEST THESE STATEMENTS IN ACUTAL EXPERIENCE
C. PREDICT BEHAVIOR
D. APPRAISE THE SOUNDNESS OF DECISIONS WHILE THEY RE STILL
BEING MADE AND
E. ANALYZE THEIR EXPERIENCES AND THUS IMPROVE
PERFORMANCE

Principles
MANAGEMENT BY OBJECTIVES
AND SELF-CONTROL
• The concept is credited to Drucker and George
S.Odiorne.
• The MBO is the central point of discussion in his
book – The practice of Mangement-writes :
“Management is not just a creature of the
economy; it is a creator as well. And only to the
extent to which it masters the economic
circumstances, and alters them by conscious,
directed action, does it really change. To
manage business means, therefore, to mange
by objectives.”
Principles
• MBO is a managerial philosophy and
technique that attempts to draw on
people’s needs for achievement,
competence and anatomy by allowing
them to set their objectives, goals, and
performance criteria
• This concept applies to employees at any
position

Principles
Why MBO?
• The specialized work of the manager
• The hierarchy in organizations
• The existence of difference in vision in
businesses
Such factors cause conflict and breakdown
in the organization and MBO overcomes
these deficiencies by relating the task for
each manager to the overall goals for he
company.
Principles
WORK OF MANAGER
• To set objectives
• To organize ie. To analyze the activities,
decisions, and relations needed
• To motivate and communicate
• To analyze, appraise and measure
performance and
• To develop people, including himself

Principles
In 1950s, Drucker’s 7 tasks to be
performed by tomorrow’s manager
• He must manage by objectives
• He must take more risks and for a longer period
ahead
• He must be able to make strategic decision
• He msut be ableto build and integrated team
• He must be able to communicate information
fast and clearly
• He mustbe bale to see the business as a whole
and to integrate his function with it, and
• He must be able to relate his product and
industry to the total environment
Principles
Social responsibilities for
Management
• The triple bottom line :
Economic profit (profit as by product in a
business process)
Social profit ( giving to the community)
Environmental profit (carbon trading, etc)

Principles
Warren G. Bennis
Manager Characteristics Leader Characteristics
Administers Innovates
Focuses on systems and structure Focuses on people
Relies on control Inspires trust
Short range view Long range perspective
Asks how and when Asks what and why
Eye on the bottom line Eye on the horizon
Imitates Originates
Accepts status quo Challenges the status quo
Classic good soldier Own person

Does things right Principles Does the right thing
Bennis’ four competencies of
leadership
• Attention through vision
• Meaning through communication
• Trust through positioning – being
predictable, making your position clear,
keeping at it, and
• Positive self-regard

Principles
Chris Argyris’ Immaturity-Maturity
model
Immaturity Maturity
Passive Active
Dependence Independence
Capable of behaving in many ways
Behave in a few ways
Deeper and stronger interests
Erratic shallow interests
Long-time perspective (past and
Short-time perspective future)
Equal or superordinate position
Subordinates position
Awareness and control over self
Lack of awareness of
self Mr.S.Manikandan - Management 140
Principles
T- Groups
• Also known as sensitivity training and
laboratory training. T-Group technique
had its genesis in the late 1940s, largely
as a result of work done by Kurt Lewin and
Ronald Lippitt. Argyris contributed to this
concept by making several clarifications
about it.

Principles
Definition T-Group
• T-Group is ….a group experience
designed to provide maximum possible
opportunity to the individuals to expose
their behavior, give and receive feedback,
experiment with new behavior and develop
an everlasting awareness and acceptance
of self and others.”

Principles
Properties of Organizational
effectiveness
Properties leading to Ineffectiveness Properties leading to effectiveness
One part or subset of parts, controls the whole The whole is created and controlled through the
inter-relationship of the parts
Awareness only of random plurality of parts Awareness of pattern among parts
Objectives related only or mainly to parts Objectives related to the whole
Inability to influence core activities whether they Ability to influence core activities whether they
are internally or externally oriented are internally or externally oriented
Core activities only influenced by immediate Core activities influenced by past, present and
present future

Principles
Argyris’ other contributions
• Leadership
• Intervention theory (OD)
• Process consulting: Argyris and Edgar H.
Schein are regarded as chief developers
of the process consulting method

Principles
Process consulting method
• Process consulting regards groups such as
teams, task force, committees or project groups
as the basic building blocks of organization.
• Process consulting deals with tasks, conflicts,
between members, work flows, and the
processes by which the group achieves its task
• Process consulting analyzes the roles and
functions of group members, group problem-
solving-methods, decision making, the
development of group norms, and the use of
leadership and authority
Principles
Process consulting…contd…
• The process consultant examines the
processes at work among group members
by using devices such as questionnaires,
role playing session, coaching and
counseling methods, etc.

Principles
Argyris’ – 4 principles of
organization
• Task specialization – Individuals should
concentrate on a narrow range of task. It
increases human skills and output too
• Chain of command (Hierarchy of authority)
• Unity of direction – Leaders must define and
direct the work of those under them
• Span of control – administrative efficiency is
increased if there is a limit to the number of
people a leader or supervisor can control

Principles
William G. Ouchi
• Ouchi’s main contribution to management
thought relates to Theory Z. Contrast
between Japanese and American
corporations leads to identification of the Z
theory

Principles
Z theory
Japanese Corporation American Corporation
Lifetime employment Short-term employment
Slow evaluation and promotion Rapid evaluation and promotion
Non-specialized career points Specialized career points
Implicit control techniques Explicit control techniques
Collective responsibility
Individual responsibility
Concern for the whole Concern for parts of the
organization organization
Principles
Participative Management
• Ouchi emphasized participative management and consensus
decision-making, if Theory Z is to work.
• Social scientists have described this as a democratic process in
which may people are drawn into shaping of important decisions
• The participative process is one of the mechanisms that provides for
the broad dissemination of information and values within the org,
and it also serves the symbolic role of signaling in a unmistakable
way the cooperative intent of the firm
• Typically, Theory Z orgs devote a great deal of energy to developing
the interpersonal skills necessary to effective group decision making
• In theory Z companies the decision making may be collective, but
the ultimate responsibility for decisions still resides in one individual

Principles
Tom Peters Seven S Model-
developed for McKinsey & Co
Structure
Strategy
Superordi Systems
nate
Goals
Skills Style
Staff

Principles
7-S framework for change
• Structure refers to the organizational structure
• Strategy is a plan or course of action leading to the allocation of a
firm’s scarce resources, over time, to reach identified goals
• Systems consist of all the formal and informal procedures that allow
the organization to function
• Style is the pattern of substantive and symbolic actions under taken
by top mangers
• Staff is another factor. Successful organization view people as
valuable resources who should be carefully nurture, developed,
guarded and allocated.
• Skills refer to those activities organizations do best and for which
they are known
• Superordinate Goals referred to guiding concepts, values and
aspirations that unite an organization in some common purpose
• TOM PETERS ADVOCATED : MBWA

Principles
Tom Peter’s books
• In search of Excellence
• Passion for excellence
• Thriving in chaos
• And many others

Principles
THANK YOU
CHEERS.

Principles

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MANAGEMENT PRINCIPLES

There can be lots of ambiguity and there will

Description of each of the roles……

THE MANAGERIAL WORK ACTIVITY

Put students on discussion mode

• FOR DETAILS ATTEND A CONFLICT MANAGEMENT CLASS

1. S/he must be loyal to company

Mr.S.Manikandan - Management 101

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• His need based theory of motivation,

Mr.S.Manikandan - Management 107

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Mr.S.Manikandan - Management 109

(Environment) (the Job itself)

Policies and administration Achievement

Supervision Recognition for accomplishments

Working conditions Challenging Work

Interpersonal relations Increased responsibility

Money, status, Growth and development

Mr.S.Manikandan - Management 112

Mr.S.Manikandan - Management 113

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As disturbance handler: managers take corrective action in response to

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Focuses on systems and structure Focuses on people

Relies on control Inspires trust

Short range view Long range perspective

Asks how and when Asks what and why

Eye on the bottom line Eye on the horizon

Accepts status quo Challenges the status quo

Classic good soldier Own person

Mr.S.Manikandan - Management 139

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Objectives related only or mainly to parts Objectives related to the whole

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Slow evaluation and promotion Rapid evaluation and promotion

Non-specialized career points Specialized career points

Implicit control techniques Explicit control techniques

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