Fundamentals of mgt.


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Fundamentals of mgt.

  1. 1. Fundamentals of ManagementFundamentals of Management Management Principles 1Fundamentals of Management
  2. 2. Concept of managementConcept of management Basic elements of managementBasic elements of management Nature of the managerial taskNature of the managerial task Modern Approaches to ManagementModern Approaches to Management 2Fundamentals of Management
  3. 3. Definition of ManagementDefinition of Management ManagementManagement in business and humanin business and human organization activity is simply the act oforganization activity is simply the act of getting people together to accomplishgetting people together to accomplish desired goalsdesired goals According to the management guru PeterAccording to the management guru Peter Drucker, “Drucker, “Organization and coordinationOrganization and coordination of the activities of an enterprise inof the activities of an enterprise in accordance with certain policies and inaccordance with certain policies and in achievement of clearly defined objectives”achievement of clearly defined objectives” Fundamentals of Management 3
  4. 4. WHAT IS MANAGEMENT?WHAT IS MANAGEMENT? An art more than a scienceAn art more than a science Deductive Method: General to ParticularDeductive Method: General to Particular Inductive Method: Particular to GeneralInductive Method: Particular to General Inherently social in natureInherently social in nature Getting things done through othersGetting things done through others 4Fundamentals of Management
  5. 5. GOALS OF BUSINESS ORGOALS OF BUSINESS OR MANAGEMENTMANAGEMENT Business/economics traditionally definedBusiness/economics traditionally defined as based on a sole primary motive of self-as based on a sole primary motive of self- interestinterest Lead to thinking about profit-maximizationLead to thinking about profit-maximization as the major goal of enterpriseas the major goal of enterprise Failed to account for the social nature ofFailed to account for the social nature of business/economics -- inaccurate basedbusiness/economics -- inaccurate based on new scienceon new science 5Fundamentals of Management
  6. 6. Is Administration andIs Administration and management same?management same?  Administration refers to the activities ofAdministration refers to the activities of the higher level of the management groupthe higher level of the management group who identifies the major aims and policies.who identifies the major aims and policies. Administration is a part of managementAdministration is a part of management Fundamentals of Management 6
  7. 7. FOUR FUNCTIONSFOUR FUNCTIONS  First stated by Henri Fayol(1841-1925)-FrenchFirst stated by Henri Fayol(1841-1925)-French CEOCEO  Now stated asNow stated as 1. Planning1. Planning 2. Organizing2. Organizing 3. Directing3. Directing 4. Controlling4. Controlling 7Fundamentals of Management
  8. 8. PLANNING & ORGANIZINGPLANNING & ORGANIZING Planning -- Setting firms goals plus thePlanning -- Setting firms goals plus the way to accomplish themway to accomplish them Organizing -- deciding structure ofOrganizing -- deciding structure of decision-makingdecision-making What will be done, by whom, for whomWhat will be done, by whom, for whom 8Fundamentals of Management
  9. 9. DIRECTING & CONTROLLINGDIRECTING & CONTROLLING Directing-- Motivating employees toDirecting-- Motivating employees to achieve firm’s objectivesachieve firm’s objectives Controlling --Controlling -- Monitoring progress toward goalsMonitoring progress toward goals Taking corrective actionTaking corrective action 9Fundamentals of Management
  10. 10. Scientific ManagementScientific Management  Pioneers tried to find more efficientPioneers tried to find more efficient methods and procedures for controlmethods and procedures for control Aims at investigating every problem andAims at investigating every problem and find best possible way to solve thefind best possible way to solve the problems using the scientific methods orproblems using the scientific methods or researchresearch Fundamentals of Management 10
  11. 11. Scientific Management Contd.Scientific Management Contd. F W Taylor, a management guru, listedF W Taylor, a management guru, listed different principles to guide management:different principles to guide management: • Each worker should have a large, clearlyEach worker should have a large, clearly defined, daily taskdefined, daily task • Standard conditions are needed to ensure theStandard conditions are needed to ensure the task is more easily accomplishedtask is more easily accomplished • High payment should be made for successfulHigh payment should be made for successful completion of taskscompletion of tasks Fundamentals of Management 11
  12. 12. F W Taylor’s Principles cont:F W Taylor’s Principles cont: Taylor also listed ‘new duties’ ofTaylor also listed ‘new duties’ of management:management: • The Development of a true scienceThe Development of a true science • The Scientific selection, education andThe Scientific selection, education and development of workmendevelopment of workmen • Friendly close co-operation betweenFriendly close co-operation between management and workersmanagement and workers Fundamentals of Management 12
  13. 13. Administrative ManagementAdministrative Management  Henry Fayol aimed at developing aHenry Fayol aimed at developing a science of administration for managementscience of administration for management He believed managers, at higher levels,He believed managers, at higher levels, are less dependent on technicalare less dependent on technical knowledge and more on a knowledge ofknowledge and more on a knowledge of administrationadministration Fundamentals of Management 13
  14. 14. Fayol’s 14 principles ofFayol’s 14 principles of management:management: 1.1. Division of LaborDivision of Labor 2.2. AuthorityAuthority 3.3. DisciplineDiscipline 4.4. Unity of commandUnity of command 5.5. Unity of directionUnity of direction 6.6. Subordination of Individual Interest toSubordination of Individual Interest to general interestgeneral interest 7.7. Remuneration or Salary and wagesRemuneration or Salary and wages Fundamentals of Management 14
  15. 15. Fayol’s 14 principles ofFayol’s 14 principles of management Contd:management Contd: 8. Centralization8. Centralization 9. Scalar Chain9. Scalar Chain 10. Order10. Order 11. Equity11. Equity 12. Stability of tenure of personnel12. Stability of tenure of personnel 13. Initiative13. Initiative 14. Esprit de corps14. Esprit de corps Fundamentals of Management 15
  16. 16. Max Weber (1864 – 1920)Max Weber (1864 – 1920)  More concerned with the basics of howMore concerned with the basics of how enterprises are structuredenterprises are structured Developed ideas about the structure ofDeveloped ideas about the structure of the organization that define what we knowthe organization that define what we know as bureaucracy (structure and set ofas bureaucracy (structure and set of regulations in place to control activity,regulations in place to control activity, usually in large organizations andusually in large organizations and government)government) Fundamentals of Management 16
  17. 17. Weber’s perspectives onWeber’s perspectives on Administrative Management are:Administrative Management are: Division of laborDivision of labor Hierarchy of authorityHierarchy of authority Formal selectionFormal selection Career managersCareer managers Formal rulesFormal rules Fundamentals of Management 17
  18. 18. Human relations movement andHuman relations movement and behavioral sciencebehavioral science Deals with sciences of mankind and ofDeals with sciences of mankind and of behavior as individuals and in groupsbehavior as individuals and in groups Concerned with problems of fatigue andConcerned with problems of fatigue and efficiency at work andefficiency at work and Problems relative to selecting and trainingProblems relative to selecting and training employeesemployees Fundamentals of Management 18
  19. 19. Hawthorne ExperimentsHawthorne Experiments  Focused toward psychological andFocused toward psychological and behavioral side of employees at workbehavioral side of employees at work Psychological Experiments ofPsychological Experiments of Elton MayoElton Mayo disclosed or revealed components of thedisclosed or revealed components of the job and work satisfactionjob and work satisfaction Experiments were divided into threeExperiments were divided into three phasesphases Fundamentals of Management 19
  20. 20. Hawthrone Experiments Contd:Hawthrone Experiments Contd: 1.1. Test Room Studies: assesses the effectTest Room Studies: assesses the effect of single variables upon employeeof single variables upon employee performanceperformance 2.2. Interviewing Studies: consists ofInterviewing Studies: consists of employees’ surveys and interviewsemployees’ surveys and interviews 3.3. Observational Studies: involves studyingObservational Studies: involves studying the “normal” group workingthe “normal” group workingFundamentals of Management 20
  21. 21. Systems approach toSystems approach to managementmanagement  A system is an organized combination ofA system is an organized combination of parts, which forms interactions betweenparts, which forms interactions between the parts and between the system and thethe parts and between the system and the environmentenvironment Gives managers a way of looking atGives managers a way of looking at organizations as a complete wholeorganizations as a complete whole Fundamentals of Management 21
  22. 22. System approach contd:System approach contd:  Systems can be divided into twoSystems can be divided into two categories:categories: Deterministic : Behavior can be determinedDeterministic : Behavior can be determined Probabilistic : Behavior can only be estimatedProbabilistic : Behavior can only be estimated  A system includes different elements orA system includes different elements or systems called sub-systemssystems called sub-systems Fundamentals of Management 22
  23. 23. Elements of a systemElements of a system  Sensing systemSensing system  Information coding systemInformation coding system Physical processing systemPhysical processing system Regulating and controlling systemRegulating and controlling system Information and storage systemInformation and storage system Goal setting or policy making systemGoal setting or policy making system Fundamentals of Management 23
  24. 24. Systems Approach ProcessSystems Approach Process  Open page no. 21 of the course bookOpen page no. 21 of the course book Fundamentals of Management 24
  25. 25. Today’s ManagerToday’s Manager  Responsible for others and their ownResponsible for others and their own workwork Managers are also:Managers are also: MediatorsMediators of disputesof disputes PoliticiansPoliticians:: Persuade and motivatePersuade and motivate DiplomatsDiplomats:: Representative of companiesRepresentative of companies Fundamentals of Management 25
  27. 27. Decisional Roles of ManagersDecisional Roles of Managers Entrepreneur: Brings new ideasEntrepreneur: Brings new ideas Disturbance Handler: Handles or tacklesDisturbance Handler: Handles or tackles strikes and lockoutsstrikes and lockouts Resource allocator: Allocates or utilizesResource allocator: Allocates or utilizes the company’s resourcesthe company’s resources Negotiator: Deals with suppliers andNegotiator: Deals with suppliers and negotiates for prices or for best servicesnegotiates for prices or for best services Fundamentals of Management 27
  28. 28. Entrepreneurship andEntrepreneurship and IntrapreneurshipIntrapreneurship  Entrepreneurship is a process of bringingEntrepreneurship is a process of bringing creative and innovative ideas andcreative and innovative ideas and implement them by combining factors ofimplement them by combining factors of production to create wealth and meet aproduction to create wealth and meet a needneed Intrapreneurship involves bringing newIntrapreneurship involves bringing new ideas within the organizationideas within the organization Fundamentals of Management 28