Introduction

Principles and Practice of management

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Koontz :

Management is the art of getting things done through and with the people in formally organized groups.

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 Henry

Fayol:

To manage is to forecast and plan, to organize, to command coordinate, and to control.

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Nature of management

Multidisciplinary:

It draws ideas and concepts from such disciplines as psychology, sociology, anthropology, economics, ecology, statistics, operations research, history etc.

Management is dynamic:
it is constantly growing process

Management is universal:

The basic principles of management are applicable in business as well as in other organizations e.g., university, government, army, family, club, business.

Management is goal oriented:

objectives sought to be accomplished are those of the organization.

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Cont

Management as Profession:
it possesses all the attributes of profession as: (a) a systematic corpus of knowledge, (b) a code of conduct.

Characteristics of profession: Formalized methods of acquired training and experience. The establishment of a representative organization with professionlisation as its goal. Existence of a body of knowledge, techniques, skills and specialized knowledge. The charging of fees based on the nature of service extended. The formation of an ethical code for the guidance of its conduct.

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Arguments in favour
Body

of knowledge: All over the world there is marked growth of an organized systematic body of knowledge about management as a process. methods of teaching: The establishment of professional schools of management in which management as a body of knowledge can be taught is seen everywhere. as remuneration: The number of 4/27/12 management consultants is increasing. Even

Formal

Fee

Management AS- Science or Art:

Management

as a Science:

Science is by definition a body of knowledge gathered by experimentation and observation, artificially tested and expressed in the form of general principles.
1) 2) 3) 4) 5)

Identification of the problem Scientific inquiry Choice of the best available alternative Rigorous control procedure Universally applicable

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 Management

as an Art:

Art refers to the skill to put into action a systematized body of knowledge for the achievement of a given tasks.
1. 2. 3. 4. 5.

Personal skill Practical knowledge Result oriented approach Personal judgment Continuous practice

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Features of management:
1.Management is a group activity: 2.Existence of Objectives: An objective or set of objective should exist towards which the organized group activities are directed. 3. Management is important organ of society: 4. Working with and Through People: 5. Decision making

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Importance of management
Effective

Utilisation of resources of resources

Development To

incorporate innovations various interest groups

Integrating Stability

in the society

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Evolution of Management Thought

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Frederik Winslow Taylor

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SCIENTIFIC MANAGEMENT
Management

Taylor in USA

Introduced by Frederik Winslow

Scientific

Management is concerned with knowing Exactly What you want men to do and then seeing that they do it in the best and cheapest way. Emphasis is on solving the managerial problem in a scientific way.
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Taylors principles can be described into two parts:

Elements Principles

and Tools of scientific Management of Scientific Management

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Elements and tools of scientific management

Separation of Planning And Doing
He emphasized on the separation of planning aspect from actual doing of the work Previously, workers used to plan for the work to be done where put under the supervision of a supervisor. Emphasize that planning should be done by the 4/27/12

Functional Foremanship
Separation

resulted in development of Supervision. In this system, eight persons are involved to direct the activities of workers. Four persons are concerned with planning Other four are concerned with production.

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Workshop manager Planning Incharge Instruct ion Rout Card e clerk clerk Time and Cost clerk Production incharge

Discip Spe lied narian boss work er

Inspec tor

Maint eNanc e forem an

Gan g bos s

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Job Analysis
Job

analysis is undertaken to find out the one best way of doing the things. best way of doing a job is one which requires the least movements, consequently less time and cost. can be done by Time Motion-Fatigue studies.

The

It

Time study involves the determination 4/27/12 a of time

Standardisation
Standards should de maintained in respect of instruments and tools, period of work, working condition, cost of production etc.

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Scientific Selection And Training of Workers

He says that workers should be selected on scientific basic taking into account their education, work experience, Physical strength etc. Physically and technically sound worker. Training for workers to make them more efficient and effective.
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Financial Incentives
Motivate

efforts.

the workers to put their maximum

He

applied the concept of differential piece rate system:

The worker who completes the normal work gets higher rate. one who does not complete the normal work gets the lower rate.

He said wages should be based on individual performance and not on the 4/27/12 position which he occupies.

Economy
Adequate

consideration should be given to Economy and profit. this technique of cost and control should be adopted:

For

Making resources more productive as well as by eliminating the wastages.

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Mental revolution
Mutual

co-operation between management and workers. this mental change in both parties from conflicts to co-operation.

For

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Principles of Scientific Management

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Replacing Rule of Thumb With Science

He

says that , the exactness of various aspects of work like days fair work, standardization of work. Differential piece rate etc. is the basic core of scientific management. It is essential that all these are measured precisely and not on mere estimates.

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Harmony In Group Action

There

should be mutual give and take situation and proper understanding so that group as a whole contributes to the maximum.

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Co Operation
It

is based on mutual confidence, cooperation and goodwill. co-operation between management and workers can be developed through mutual understanding and a change in thinking.

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Maximum Output
It

involves continuous increase in production and productivity instead of restricted production either by management or by worker.

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Development of Workers
Required

Scientific selection of workers and providing them training at the work place.

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Characteristics of quality Managers

Knowledge Decisiveness:

A manager must act fast to be decisive. A good Manager should be able to make decision, even when only partial data is available, so that his decision may be based on analytical and intuitional judgment.

Ability

to handle conflict stability

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Emotional

Fayols Administrative Management :

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 Father Fayol

of modern operational management

looked at the problems of managing an organisation from top management point of view. contribution were first published in book form titled Administration Industrielle at Generale in French language. the term administration instead of management 4/27/12

His

Use

Henry Fayols 14 principles

Division of Work Produces

effort. Various functions like

more and better work with same

Planning, Organizing, Directing And Controlling cannot be performed by a single person.

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Authority and Responsibility

Management:

Getting work done through

others. Manager should have the right to give orders and power to get obedience.

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Discipline

It means obedience of authority, rules & regulations. Respect for superiors. They can be maintained by:

Good supervisors at all levels. Clear & fair agreements b/w both. Judicious application.

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Unity of Command
A

person should get instructions and orders from only one superior.
X Y Z X A Y W Z B

W Violation of unity of command

Unity of command
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Unity of Direction
According

to this, each group of activities with the same objective must have one head and one plan.
Main objective

Sub objective (Marketing Dept)

Sub objective (HR Dept)

Sub objective (Finance Dept)

Sub objective (Operation Dept)

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Subordination of individual to general interest

Common

interest. The agreement between the employers and the employees should be fair.
Common interest Individual (1) intt Individual (2) intt Individual (3) intt Individual (4) intt
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interest is above the individual

Remuneration of Personnel
Fair

and provide maximum satisfaction to employee. increases workers efficiency and morale and maintain good relationship between them and Management.

It

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Centralization
Increase

importance of subordinates role is decentralization. its importance is centralization.

Reduce

Decided

by management on the basis of nature of circumstances, size of the undertaking etc.

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Scalar Chain
There

should be scalar chain of authority and of communication ranging from the highest to the lowest. must follow through each position in the line of authority (upward and downward both).

Communication

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A B C D E F -----------------------G (Gang Plank) L M N O P Q

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Order
Proper

place for everything and everything at its proper place. (Material order) Right man at the Right place. (social order) knowledge of human requirement and resources and constant balance between them is required

Similarly,

Exact

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Equity
Equal

Treatment to all. loyalty

Brings It

requires good sense, experience and manager to be free from personal likes or dislikes.

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Stability of Tenure
No

employee should be removed within short of time. Job security in order to motivate the workers. of Attachment.

Sense

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Initiative
Within

the limits of authority and discipline, managers should encourage their employees for taking initiative.

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Esprit-de-corps
Principle

of Union is Strength command for

Extension

of Unity of establishing team work.

Team spirit among the employees. motto of divide and rule should be avoided.
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The

BUREAUCRACY

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In 1910 Max weber made the study of different types of business and govt. organizations and distinguished 3 basic type of administration in them:

Leader oriented:

No delegation of management functions.

Tradition oriented:

Managerial positions are handed down from generation to generation. Who you are is more important then what you can do
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Features of Bureaucracy:Administrative class:

Administrative class responsible for maintaining coordinative activities of the members. Main features of this class are: People are paid as whole time employees They receive salary and other perquisites normally based on their positions. There tenure in the organization is determined by rules and regulations of the organization. They are selected on the basis of their competence.

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Hierarchy:

Each lower office is subject to control and supervision by a higher office. Thus no office is left uncontrolled. This hierarchy serves as lines of communication & delegation of authority.

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Division of work
This

increases production by improving efficiency and saving time in changing over from one job to another. is divided on the basis of specialization.

Work

It ensures that each office has a clearly defined area of competence within the organization and each official knows the areas in which he operates..
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Rules & regulations

The

rules and regulations that are to be followed by employees are well defined to instill(feel) discipline in them and to ensure that they work in a coordinated manner to achieve the goals of the organization

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Impersonal Relationships:
Relationships

among the individuals are governed through the system of official authority and rules. positions are free from personal involvement, emotions and sentiments.

Official

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Official Record:
This

emphasizes on the maintenance of proper official records. decision and activities are formally recorded and preserved for future reference

The

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HAWTHRONE EXPERIMENT ANDHUMAN RELATIONS :

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HAWTHRONE EXPERIMENT AND HUMAN RELATIONS

The

Hawthrone plant of the General Electric Company was manufacturing Telephone System Bell. Employed about 30,000 employees at time of experiments. spite of providing various benefits to employees there was dissatisfaction among the workers and productivity was not up to the mark.
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In

1. Illumination Experiment:
To

find out how varying levels of illuminations (light at place of work) affected the productivity. Hypothesis was that with higher illumination productivity would increase. Firstly a group of workers was chosen and placed into two separate groups

One Group (Experimental Group) exposed to varying intensities of illumination. 4/27/12 Another Group (Control Group) continued to work

 When

illumination was increased in the experimental group, productivity increased in both the groups. illumination was decreased the productivity still increased. decreased only when it was decreased to level of moon light. It did not have any effect on productivity. 4/27/12

When

it

Conclusion-

Relay Assembly Test Room Experiments:

To determine the effect of changes in hours and other working conditions on productivity

For this test two girls were chosen. These girls were asked to choose four more girls as their co-workers. The work was related to the assembly of telephone relays. Each relay consisted of a number of parts which girls assembled into finished products.

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Changes:

Incentive system was changed: Each girls extra pay was based on other five rather than output of larger group. (Productivity Increased) 5 mins rest- 1 morning & 1 evening later increased to 10 mins. ( Productivity Increased) Rest periods was reduced to 5 mins but frequency was increased.(Decreased

two

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 As

a result of these changes:

Absenteeism Decreased Less Supervision was required.

Researchers

decided to revert back to original position, but productivity still increased. Due to change in girls attitude towards work and friendly attitude of the supervisor.

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Mass Interviewing
About

20,000 workers were interviewed. In this phase, they wanted to know as to what were the basic factors responsible for human behaviour at work. direct questions were asked but much information could not be extracted. Later, technique was changed to nondirective type of interviewing, in which workers were free to talk.
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Firstly,

Bank Wiring Observation Room Experiments

In this a group of 14 male workers was employed in the bank wiring room. The work involved attaching wire to switches for certain equipments used in telephone exchange.
Hourly

wage rate for workers was based on average output of each worker while bonus was given on the basis of average group output. It was assumed that workers would work
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Implication of Hawthorne Experiments

It has tried to unearth those factors which are important for motivating people at workplace, major findings are:
Social Group

factor in output influence

Conflict Leadership
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Management Skills
Technical Skills
The ability to apply specialized knowledge or expertise

Human Skills

The ability to work with, understand, and motivate other people, both individually and in groups

Conceptual Skills
The mental ability to analyze and diagnose complex situations
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Management skills

Technical skill Human skill

Conceptual skill To p Middl e Managemen t levels Low er

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SCOPE OF MANAGEMENT
(i) Production Management:
Managing the production so as to produce right goods in right quantity at the right cost and at the right time. (a) Designing the product (b) Location and layout of plant and building (c) Planning and control of factory operations (d) Operation of purchase and storage of materials (e) Repairs and maintenance (f) Inventory cost and quality control (g) Research and development etc.
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(ii) Marketing Management:

Identification of consumers needs and supplying them goods which can satisfy those wants
(a)

(b) (c) (d) (e)

Marketing research to determine the needs and expectation of consumers Planning and developing suitable products Setting appropriate prices Selecting the right channel of distribution, and Promotional activities like advertising and salesmanship to communicate with the customers.

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(iii) Financial Management:

Ensuring right amount and funds to business at right time at a reasonable cost.
1. 2. 3. 4.

Selecting the appropriate source of funds Raising the required funds at the right time Administration of earnings Estimating the volume of funds

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(iv) Personnel Management:

Selecting , compensating etc human resources at right time in the enterprise
(a) (b) (c) (d) (e) (f) (g) (h) (i)

Manpower planning Recruitments, Selection, Training Appraisal, Promotions and transfers, Compensation, Employee welfare services, and Personnel records and research, etc.
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Management Functions

Planning

Organizing

Management Functions
Controlling Staffing

Directing

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Planning
A process that includes defining goals, establishing strategy, and developing plans to coordinate activities

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Organizing
Determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made

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Staffing
Staffing is the process of choosing right people for organization. It can be associated with human resource management and involves recruitment, hiring, training and compensating the workforce.

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Directing
Directing is guiding people in the organization through the means (effective communication) of counseling, instructing and motivating.

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Controlling
Monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations

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