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principles of management

principles of management

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  • 1.
    • Principles & practice of Management:
    • Bureaucracy.
    • Fayol’s Administrative or process theory
    • Unit :1
    • Chapter:2
  • 2. Bureaucracy
    • The first pillar in the classical organization theory was systematically provided by Max Weber (1864-1920)
    • He was a German sociologist .
    • Weber specified various characteristic & elements of his ideal organization structure , like specialization, division of labour, hierarchy position, impersonal relationship etc.
    • It provides rigid machine model of an organization for the achievement of its objectives.
  • 3. Definition
    • Definition: It is an administrative system designed to accomplish large scale administrative tasks by systematically coordinating the work of many individuals.
    Admin.System designed Large scale admin.task Systematic coordinating Work of many individuals
  • 4. Features of bureaucracy
    • Administrative class
    • Hierarchical position
    • Specialization & Division of work.
    • Official rules.
    • Impersonal Relationship.
    • Official Records
    principles & practice of management_L.M.Prasad
  • 5. Positive aspect of Bureaucracy
    • The behavior of the employee is predictable because how they will react under different situation as guidelines are already there in writing.
    • Bureaucracy leads to efficiency in the organization : there is division of work & specialization which result in efficiency
  • 6.
    • There is proper delegation of authority in the organization: People are given task according to their competences.
    • The behavior of the employee is rational . They take decisions as per law, rules & regulation. they do not go with emotions and interpersonal parameters.
  • 7. Problems in Bureaucracy
    • Invalidity of bureaucratic assumption.
    • Goal Displacement.
    • Unintended consequences.
    • Inhuman organization.
    • Closed system perspective.
  • 8. Administrative or process management theory
    • This approach was contributed by Henery Fayol.
    • Henery Fayol,A French Executive and a contemporary of Taylor.
  • 9. Fayol’s Administrative Management
    • He divide management approach in to parts:
    • Managerial qualities.:
    • physical,
    • mental,
    • moral,
    • educational,
    • technical
    • and experience
  • 10.
    • 2. Elements of Management. (Planning,organising,Cordinating,
    • controlling etc)
    • Fayol's definition of management roles and actions distinguishes between Five Elements :
    • Prevoyance . (Forecast & Plan). Examining the future and drawing up a plan of action. The elements of strategy.
    • To organize . Build up the structure, both material and human, of the undertaking.
    • To command . Maintain the activity among the personnel.
    • To coordinate . Binding together, unifying and harmonizing all activity and effort.
    • To control . Seeing that everything occurs in conformity with established rule and expressed command.
  • 11.
    • General principle of management:
    • Division of Work.
    • Authority .
    • Discipline .
    • Unity of Command
    • Unity of Direction
    • Subordination of individual interest
    • Remuneration .
    • Centralization
    • Scalar chain
    • Order
    • Equity
    • Stability of Tenure of Personnel
    • Initiative .
    • Esprit de Corps
  • 12. 14 principles of management
    • Division of Labor
      • Henry Fayol has stressed on the specialization of jobs.
      • He recommended that work of all kinds must be divided & subdivided and allotted to various persons according to their expertise in a particular area.
      • Subdivision of work makes it simpler and results in efficiency.
      • It also helps the individual in acquiring speed, accuracy in his performance.
      • Specialization leads to efficiency & economy in spheres of business.
  • 13.
    • Authority & Responsibility
      • Authority & responsibility are co-existing.
      • If authority is given to a person, he should also be made responsible.
      • In a same way, if anyone is made responsible for any job, he should also have concerned authority.
  • 14.
      • Authority refers to the right of superiors to get exactness from their sub-ordinates whereas responsibility means obligation for the performance of the job assigned.
      • There should be a balance between the two i.e. they must go hand in hand.
      • Authority without responsibility leads to irresponsible behavior whereas responsibility without authority makes the person ineffective.
  • 15.
    • Principle of One Boss/unity of command
      • A sub-ordinate should receive orders and be accountable to one and only one boss at a time.
      • In other words, a sub-ordinate should not receive instructions from more than one person because –
    • -  It undermines authority -  Weakens discipline -  Divides loyalty -  Creates confusion -  Escaping responsibilities -  Duplication of work -  Overlapping of efforts
  • 16.
    • Unity of Direction
      • Fayol advocates one head one plan which means that there should be one plan for a group of activities having similar objectives.
      • Related activities should be grouped together. There should be one plan of action for them and they should be under the charge of a particular manager.
  • 17.
      • According to this principle, efforts of all the members of the organization should be directed towards common goal.
      • Without unity of direction, unity of action cannot be achieved.
      • In fact, unity of command is not possible without unity of direction.
  • 18.
    • Equity
      • Equity means combination of fairness, kindness & justice.
      • The employees should be treated with kindness & equity if devotion is expected of them.
      • It implies that managers should be fair and impartial while dealing with the subordinates.
      • They should give similar treatment to people of similar position.
      • They should not discriminate with respect to age, caste, sex, religion, relation etc.
      • Equity is essential to create and maintain cordial relations between the managers and sub-ordinate.
  • 19.
    • Order
      • This principle is concerned with proper & systematic arrangement of things and people.
      • Arrangement of things is called material order and placement of people is called social order.
      • Material order- There should be safe, appropriate and specific place for every article and every place to be effectively used for specific activity and commodity.
      • Social order- Selection and appointment of most suitable person on the suitable job. There should be a specific place for every one and everyone should have a specific place so that they can easily be contacted whenever need arises.
  • 20.
    • Discipline
      • According to Fayol, “Discipline means sincerity, obedience, respect of authority & observance of rules and regulations of the enterprise”.
      • This principle applies that subordinate should respect their superiors and obey their order.
  • 21.
      • It is an important requisite for smooth running of the enterprise.
      • Discipline is not only required on path of subordinates but also on the part of management.
      • Discipline can be enforced if –
    • -  There are good superiors at all levels. -  There are clear & fair agreements with workers. -  Sanctions (punishments) are judiciously applied.
  • 22.
    • Subordination of Individual Interest to General Interest
      • In an organization, there are two types of interest, viz., the individual interest of the employees, and the general interest of the organization.
      • The individual interest should be given less importance, while the general interest should be given most importance.
      • If not, the organization will collapse.
    • Remuneration
      • Remuneration is the price for services received.
      • If an organization wants efficient employees and best performance, then it should have a good remuneration policy.
      • This policy should give maximum satisfaction to both employer and employees.
      • It should include both financial and non-financial incentives.
  • 23.
    • Centralization
      • In centralization, the authority is concentrated only in few hands.
      • However, in decentralization, the authority is distributed to all the levels of management.
      • No organization can be completely centralized or decentralized.
      • If there is complete centralization, then the subordinates will have no authority (power) to carry out their responsibility (duties).
      • Similarly, if there is complete decentralization, then the superior will have no authority to control the organization.
      • Therefore, there should be a balance between centralization and decentralization.
  • 24.
    • Initiative
      • Management should encourage initiative. That is, they should encourage the employees to make their own plans and to execute these plans.
      • This is because an initiative gives satisfaction to the employees and brings success to the organization.
    • Stability of Tenure
      • An employee needs time to learn his job and to become efficient. Therefore, he should be given time to become efficient.
      • When he becomes efficient, he should be made permanent. In other words, the employees should have job security.
  • 25. Scalar Chain
    • Scalar Chain is a line of authority. This line joins all the members (managers and employees) from top to bottom.
    • Every member must know who is his superior.
    • He must also know who is his subordinate.
    • Scalar Chain is necessary for good communication.
    • Scalar Chain must not be broken in norm circumstances.
    • However, if quick action is necessary, then this chain can be broken.
    • This is done using " Gang Plank " / " Bridge " / " Direct Contact ".
  • 26.
    • Esprit De Corps
      • Esprit de Corps means " Team Spirit ". Therefore, the management should create unity, co-operation and team-spirit among the employees.
      • They should avoid the divide and rule policy.