1. Introduction<br />Principles and Practice of management<br />
2. Koontz : <br /> “Management is the art of getting things done through and with the people in formally organized groups.”<br />
3. Henry Fayol: <br /> To manage is “to forecast and plan, to organize, to command coordinate, and to control.” <br />
4. <ul><li>Multidisciplinary:</li></ul>It draws ideas and concepts from such disciplines as psychology, sociology, anthropology, economics, ecology, statistics, operations research, history etc. <br /><ul><li>Management is dynamic: </li></ul>it is constantly growing process<br /><ul><li>Management is universal:</li></ul>The basic principles of management are applicable in business as well as in other organizations<br />e.g., university, government, army, family, club, business.<br /><ul><li>Management is goal oriented:</li></ul>objectives sought to be accomplished are those of the organization.<br />Nature of management<br />
5. Management as Profession: <br />it possesses all the attributes of profession as: <br /> (a) a systematic corpus of knowledge, <br /> (b) a code of conduct.<br />Characteristics of profession:<br />Formalized methods of acquired training and experience.<br />The establishment of a representative organization with professionlisation as its goal.<br />Existence of a body of knowledge, techniques, skills and specialized knowledge.<br />The charging of fees based on the nature of service extended. <br />The formation of an ethical code for the guidance of its conduct. <br />Cont…<br />
6. Body of knowledge: All over the world there is marked growth of an organized systematic body of knowledge about management as a process.<br /> <br />Formal methods of teaching: The establishment of professional schools of management in which management as a body of knowledge can be taught is seen everywhere.<br /> <br />Fee as remuneration: The number of management consultants is increasing. Even a large number of well reputed firms are establishing their consultancy agencies.<br /> <br />Existence of ethical code: There is growing emphasis on the ethical basis of management behavior.<br /> <br />Establishment of representative organizations: Both at the national and international levels management associations have been formed with their membership rules, codes of conduct, etc<br />Arguments in favour<br />
7. Management as a Science:<br />Science is by definition a body of knowledge gathered by experimentation and observation, artificially tested and expressed in the form of general principles.<br />Identification of the problem <br />Scientific inquiry<br />Choice of the best available alternative<br />Rigorous control procedure<br />Universally applicable<br />Management AS- Science or Art:<br />
8. Management as an Art: <br />Art refers to the skill to put into action a systematized body of knowledge for the achievement of a given tasks.<br />Personal skill<br />Practical knowledge<br />Result oriented approach<br />Personal judgment<br />Continuous practice<br />
9. 1.Management is a group activity:<br />2.Existence of Objectives: <br /> An objective or set of objective should exist towards which the organized group activities are directed.<br />3. Management is important organ of society:<br />4. Working with and Through People:<br />5. Decision making<br />Features of management:<br />
10. Effective Utilisation of resources<br />Development of resources<br />To incorporate innovations<br />Integrating various interest groups<br />Stability in the society<br />Importance of management<br />
12. Evolution of Management Thought<br />
13. Frederik Winslow Taylor<br />
14. Management Introduced by Frederik Winslow Taylor in USA <br />“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”.<br /> Emphasis is on solving the managerial problem in a scientific way.<br /> He carried various experiments about how to increase the efficiency of people. <br />SCIENTIFIC MANAGEMENT<br />
15. Elements and Tools of scientific Management <br />Principles of Scientific Management<br />Taylor’s principles can be described into two parts: <br />
16. Separation of Planning And Doing<br />He emphasized on the separation of planning aspect from actual doing of the work<br />Previously, workers used to plan for the work to be done where put under the supervision of a supervisor.<br />Emphasize that planning should be done by the supervisor and worker should emphasize on operational work only.<br />Elements and tools of scientific management<br />
17. Functional Foremanship<br /><ul><li>Separation resulted in development of Supervision.
18. In this system, eight persons are involved to direct the activities of workers.
19. Four persons are concerned with planning
20. Other four are concerned with production. </li></li></ul><li>Workshop manager<br />Planning Incharge<br />Production incharge<br />Instruction<br />Card clerk<br />Time and <br />Cost clerk<br />Mainte-<br />Nance<br />foreman<br />Inspector<br />Discipli-<br />narian<br />Route clerk<br />Speed <br />boss<br />Gang <br />boss<br />worker<br />
21. Job analysis is undertaken to find out the one best way of doing the things.<br />The best way of doing a job is one which requires the least movements, consequently less time and cost.<br />It can be done by Time –Motion-Fatigue studies.<br />Time study involves the determination of time a movement takes to complete. The movement which takes minimum time is best one. <br />Motion study involves the study of movements in parts which are involved in doing a job and thereby eliminating the wasteful movements and performing only necessary movements.<br />fatigue study shows the amount and frequency of rest required in completing the work. <br />Job Analysis<br />
22. Standards should de maintained in respect of instruments and tools, period of work, working condition, cost of production etc. <br />Standardisation<br />
23. <ul><li>He says that workers should be selected on scientific basic taking into account their education, work experience,
24. Physical strength etc. Physically and technically sound worker.
25. Training for workers to make them more efficient and effective. </li></ul>Scientific Selection And Training of Workers<br />
26. Motivate the workers to put their maximum efforts.<br />He applied the concept of differential piece rate system:-<br /> The worker who completes the normal work gets higher rate.<br /> one who does not complete the normal work gets the lower rate.<br /> He said wages should be based on individual performance and not on the position which he occupies. <br />Financial Incentives<br />
27. Adequate consideration should be given to Economy and profit. <br />For this technique of cost and control should be adopted:- <br />Making resources more productive as well as by eliminating the wastages. <br />Economy<br />
28. Mutual co-operation between management and workers. <br />For this mental change in both parties from conflicts to co-operation.<br />Mental revolution<br />
29. Principles of Scientific Management<br />
30. He says that , the exactness of various aspects of work like day’s 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.<br />Replacing Rule of Thumb With Science<br />
31. There should be mutual give and take situation and proper understanding so that group as a whole contributes to the maximum.<br />Harmony In Group Action<br />
32. It is based on mutual confidence, co-operation and goodwill.<br /> co-operation between management and workers can be developed through mutual understanding and a change in thinking. <br />Co Operation<br />
33. It involves continuous increase in production and productivity instead of restricted production either by management or by worker. <br />Maximum Output<br />
34. Required Scientific selection of workers and providing them training at the work place.<br />Development of Workers<br />
35. Knowledge<br />Decisiveness:- <br />A manager must act fast to be decisive.<br />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. <br />Ability to handle conflict <br />Emotional stability <br />Characteristics of quality Managers<br />
36. Fayol’sAdministrative Management : <br />
37. Father of modern operational management<br />Fayol looked at the problems of managing an organisation from top management point of view.<br />His contribution were first published in book form titled ‘Administration Industrielle at Generale’ in French language.<br />Use the term administration instead of management<br />
38. Division of Work-<br />Produces more and better work with same effort. <br />Various functions like <br />Planning, <br />Organizing, <br />Directing And <br />Controlling <br />cannot be performed by a single person. <br />Henry Fayol’s 14 principles <br />
39. Management: Getting work done through others. <br />Manager should have the right to give orders and power to get obedience. <br />Authority and Responsibility<br />
40. <ul><li>It means obedience of authority, rules & regulations. Respect for superiors.
45. A person should get instructions and orders from only one superior. <br />Unity of Command<br />X<br />Y<br />Z<br />X<br />Y<br />Z<br />B<br />W<br />A<br />W<br />Unity of command<br />Violation of unity of command<br />
46. According to this, each group of activities with the same objective must have one head and one plan.<br />Unity of Direction<br />Main objective <br />Sub objective<br />(HR Dept) <br />Sub objective<br />(Finance Dept) <br />Sub objective<br />(Operation Dept) <br />Sub objective<br />(Marketing Dept) <br />
47. Common interest is above the individual interest. <br />The agreement between the employers and the employees should be fair. <br />Subordination of individual to general interest<br />Common interest <br />Individual (2)<br />intt<br />Individual (3)<br />intt<br />Individual (4)<br />intt<br />Individual (1)<br />intt<br />
48. Fair and provide maximum satisfaction to employee.<br />It increases worker’s efficiency and morale and maintain good relationship between them and Management. <br />Remuneration of Personnel<br />
49. Increase importance of subordinate’s role is decentralization. <br />Reduce its importance is centralization. <br />Decided by management on the basis of nature of circumstances, size of the undertaking etc. <br />Centralization<br />
50. There should be scalar chain of authority and of communication ranging from the highest to the lowest. <br />Communication must follow through each position in the line of authority (upward and downward both). <br />Scalar Chain<br />
52. Proper place for everything and everything at its proper place. (Material order) <br />Similarly, Right man at the Right place. (social order) <br />Exact knowledge of human requirement and resources and constant balance between them is required<br />Order<br />
53. Equal Treatment to all. <br />Brings loyalty <br />It requires good sense, experience and manager to be free from personal likes or dislikes. <br />Equity<br />
54. No employee should be removed within short of time.<br /> Job security in order to motivate the workers. <br />Sense of Attachment.<br />Stability of Tenure<br />
55. Within the limits of authority and discipline, managers should encourage their employees for taking initiative. <br />Initiative<br />
56. Principle of ‘Union is Strength’<br />Extension of Unity of command for establishing team work.<br />Team spirit among the employees. <br />The motto of divide and rule should be avoided. <br />Esprit-de-corps<br />
57. BUREAUCRACY<br />
58. In 1910 Max weber made the study of different types of business and govt. organizations and distinguished 3 basic type of administration in them:-<br /><ul><li>Leader oriented:
59. No delegation of management functions.
60. Tradition oriented:
61. Managerial positions are handed down from generation to generation.
62. ‘Who you are’ is more important then ‘what you can do’
63. Bureaucratic Administration:
64. Delegation of Management responsibilities is based on person’s demonstrated ability to hold the position.
65. People earn positions because they are presumed to be best capable of filling them. </li></li></ul><li>Administrative class:<br /><ul><li>Administrative class responsible for maintaining coordinative activities of the members.
66. Main features of this class are:
67. People are paid as whole time employees
68. They receive salary and other perquisites normally based on their positions.
69. There tenure in the organization is determined by rules and regulations of the organization.
70. They are selected on the basis of their competence. </li></ul>Features of Bureaucracy:-<br />
71. <ul><li>Each lower office is subject to control and supervision by a higher office. Thus no office is left uncontrolled.
72. This hierarchy serves as lines of communication & delegation of authority. </li></ul>Hierarchy:<br />
73. This increases production by improving efficiency and saving time in changing over from one job to another. <br />Work is divided on the basis of specialization.<br /> 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.. <br />Division of work<br />
74. 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<br />Rules & regulations<br />
75. Relationships among the individuals are governed through the system of official authority and rules. <br />Official positions are free from personal involvement, emotions and sentiments. <br />Impersonal Relationships:<br />
76. This emphasizes on the maintenance of proper official records. <br />The decision and activities are formally recorded and preserved for future reference <br />Official Record:<br />
78. The Hawthrone plant of the General Electric Company was manufacturing Telephone System Bell.<br /> Employed about 30,000 employees at time of experiments.<br />In spite of providing various benefits to employees there was dissatisfaction among the workers and productivity was not up to the mark.<br /> In order to investigate the real causes, a team was formed to study the relationship between productivity and physical working conditions.<br />They conducted various researches into four phases: <br />HAWTHRONE EXPERIMENT AND HUMAN RELATIONS<br />
79. To find out how varying levels of illuminations (light at place of work) affected the productivity.<br /> Hypothesis was that with higher illumination productivity would increase.<br /> Firstly a group of workers was chosen and placed into two separate groups <br />One Group (Experimental Group) exposed to varying intensities of illumination. <br />Another Group (Control Group) continued to work under constant conditions <br />1. Illumination Experiment: <br />
80. When illumination was increased in the experimental group, productivity increased in both the groups. <br />When illumination was decreased the productivity still increased. <br />it decreased only when it was decreased to level of moon light. <br />Conclusion- It did not have any effect on productivity.<br />
81. To determine the effect of changes in hours and other working conditions on productivity<br /> For this test two girls were chosen. These girls were asked to choose four more girls as their co-workers.<br /> The work was related to the assembly of telephone relays. Each relay consisted of a number of parts which girls assembled into finished products.<br /> Output depended on speed and continuity. <br />Experiments started with introducing changes in sequence with duration of each change ranging from 4-12 weeks. <br />Before each change they were consulted and their views were invited. In some cases they were also allowed to take decisions.<br />Relay Assembly Test Room Experiments:<br />
82. Incentive system was changed: Each girl’s extra pay was based on other five rather than output of larger group. (Productivity Increased) <br />two 5 mins rest- 1 morning & 1 evening later increased to 10 mins. ( Productivity Increased)<br /> Rest periods was reduced to 5 mins but frequency was increased.(Decreased because rhythm got affected) <br />No. of rest reduced to 2 of 10 mins each but coffee or soup in morning and snack in evening.(Productivity increased) <br />Changes in working hours and workday were introduced.- Saturday off. Girls were allowed to leave early. (Productivity Increased) <br />Changes:<br />
83. As a result of these changes: <br />Absenteeism Decreased <br />Less Supervision was required. <br />Researchers decided to revert back to original position, but productivity still increased. Due to change in girl’s attitude towards work and friendly attitude of the supervisor.<br />
84. 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. <br />Firstly, direct questions were asked but much information could not be extracted.<br /> Later, technique was changed to non-directive type of interviewing, in which workers were free to talk. <br />It was found that social relations inside organization had influence in their attitudes and behaviors. <br />Workers behaviour was being influenced by group behaviour. <br />Mass Interviewing<br />
85. 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. <br />Hourly wage rate for workers was based on average output of each worker while bonus was given on the basis of average group output.<br /> It was assumed that workers would work more efficiently and would help each other in order to produce more and earn more. <br />This hypothesis did not hold valid.<br /> Workers decided the targets for them, lower than the company’s target because:<br />Fear of Unemployment <br />Fear of Raising Standards <br />Protection of Slower workers. <br />Satisfaction on the part of Management.<br />Bank Wiring Observation Room Experiments<br />
86. It has tried to unearth those factors which are important for motivating people at workplace, major findings are:<br />Social factor in output<br />Group influence <br />Conflict<br />Leadership<br />Supervision<br />Communication <br />Implication of Hawthorne Experiments<br />
87. Management Skills<br />Technical Skills<br />The ability to apply specialized knowledge or expertise<br />Human Skills<br />The ability to work with, understand, and motivate other people, both individually and in groups<br />Conceptual Skills<br />The mental ability to analyze and diagnose complex situations<br />
89. (i) Production Management:<br />Managing the production so as to produce right goods in right quantity at the right cost and at the right time. <br /> (a) Designing the product<br /> (b) Location and layout of plant and building<br /> (c) Planning and control of factory operations <br /> (d) Operation of purchase and storage of materials <br /> (e) Repairs and maintenance <br /> (f) Inventory cost and quality control <br /> (g) Research and development etc. <br />SCOPE OF MANAGEMENT <br />
90. Identification of consumers needs and supplying them goods which can satisfy those wants<br />Marketing research to determine the needs and expectation of consumers <br />Planning and developing suitable products <br />Setting appropriate prices <br />Selecting the right channel of distribution, and <br />Promotional activities like advertising and salesmanship to communicate with the customers.<br />(ii) Marketing Management: <br />
91. Ensuring right amount and funds to business at right time at a reasonable cost. <br />Selecting the appropriate source of funds <br />Raising the required funds at the right time <br />Administration of earnings <br />Estimating the volume of funds <br />(iii) Financial Management: <br />
92. Selecting , compensating etc human resources at right time in the enterprise<br />Manpower planning <br />Recruitments, <br />Selection, <br />Training <br />Appraisal, <br />Promotions and transfers, <br />Compensation, <br />Employee welfare services, and <br />Personnel records and research, etc.<br />(iv) Personnel Management: <br />
94. Planning<br />A process that includes defining goals, establishing strategy, and developing plans to coordinate activities<br />
95. Organizing<br />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<br />
96. Staffing<br />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. <br />
97. Directing<br />Directing is guiding people in the organization through the means (effective communication) of counseling, instructing and motivating. <br />
98. Controlling<br />Monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations<br />