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1 Introduction to Management Principles of Management DIPAK KUMAR BHATTACHAYYA
LEARNING OBJECTIVES After going through this chapter, you will be able to understand: •the concept and process of management •the various functions of management •the characteristic features of management and its different dimensions •the importance of management in studying organizational structures and systems •modern management thoughts Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 2
A BACKDROP TO MANAGEMENT An organization is made of a group of people with some specific goals, objectives, and activities. Organization is also defined as the relations among the components of a system. Organization structure denotes the components and relations that bind the people working within the organization. Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 3
A BACKDROP TO MANAGEMENT (contd) People issues encompass education, training, and attitudes. Organization issues cover strategy, policy, culture, and bureaucracy. Technology issues encompass hardware, software, telecommunications, and information systems. Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 4
NATURE AND PROCESS OF MANAGEMENT Operationally, management can be defined as a dynamic process that helps to get things done, through and with the efforts of people. Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 5
DIMENSIONS OF MANAGEMENT The definitions of management can be categorized into different approaches according to their different dimensions: Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd Management dimensions 6 Productivity orientation Human-relations orientation Decision-making orientation Leadership orientation Process orientation
FUNCTIONS OF MANAGEMENT Fayol (1949), the founder of modern management theory, divided all the activities of an organization into six groups: 1. technical 2. commercial 3. financial 4. security 5. accounting 6. managerial Principles are rules and guidelines, while elements are functions of management. Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 7
FUNCTIONS OF MANAGEMENT (contd) Fayol has grouped the elements into five managerial functions: 1. planning 2. organizing 3. commanding 4. coordinating 5. controlling Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 8
FUNCTIONS OF MANAGEMENT (contd) Another way of describing the functions of management is to consider them as a series of interrelated functions constituting a process. Planning Organizing Staffing Leading Coordinating Controlling Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd Functions of management 9
CHARACTERISTICS OF MANAGEMENT The following are certain important features of the discipline of management: Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd •organized activities •aligned with organizational objectives •optimizes constraining resources •works with and through people •decision making •science as well as an art 10
•universal •intangible •an interdisciplinary approach •a social process •a system of authority •dynamic •principles are relative and not absolute •a profession •a strategic function Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd CHARACTERISTICS OF MANAGEMENT (contd) 11
SIGNIFICANCE OF MANAGEMENT Management is important due to the following reasons: •It optimizes use of scarce resources •It ensures effective leadership and motivation •It promotes harmony among industrial relations •It facilitates the achievement of goals •It facilitates change and growth •It enhances the quality of life •It improves productivity •It contributes to organizational competitiveness •It develops professionalism •It contributes to organizational growth Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 12
DIFFERENT APPROACHES TO MANAGEMENT Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 13 History of management Classical approach Scientific management approach Administrative approach Bureaucratic approach Neo-classical approach Behavioural sciences approach Quantitative approach Contingency approach Modern approach
CONTRIBUTIONS OF PRE-CLASSICAL THEORISTS The pre-classical theorists focussed on developing some specific techniques to solve some identified problems. Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 14
CONTRIBUTIONS OF CLASSICAL THEORISTS The theorists of the classical school laid down the foundation of managing an organization in accordance with certain principles. Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 15
CHARACTERISTICS OF BUREAUCRATIC THEORY The bureaucratic theory emphasizes authority structures and description of an organization based on the authority relations. Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 16
MAJOR CONTRIBUTORS TO THE BEHAVIOURAL SCHOOL The behavioural school of management emphasizes the human element in an organization. Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 17
MODERN APPROACHES Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 18 Modern approaches Quantitative school of thought Management science approach Operations management approach Systems theory approach Management systems approach Contingency theory
CONTEMPORARY SCHOOL OF MANAGEMENT THOUGHT The contemporary school of management thought provides a framework of management practices based on more recent trends like globalization, theory Z concepts, McKinsey’s 7-S approach, excellence models, and productivity and quality issues. Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 19
CONTEMPORARY SCHOOL OF MANAGEMENT THOUGHT (contd) McKinsey’s 7-S framework developed by T. J. Peters and R. H. Waterman (1982) identified seven independent organizational factors that need to be managed by today’s managers: 1. Strategy 2. Structure 3. Systems 4. Staff 5. Style 6. Superordinate goals (shared vision) 7. Skill Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 20
CONTEMPORARY SCHOOL OF MANAGEMENT THOUGHT (contd) Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd McKinsey’s 7-S Model 21
DIFFERENT TYPES OF MANAGEMENT PRACTICES Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 22
MANAGEMENT BY OBJECTIVES When objectives are set in a systematic manner, consciously directed towards effective and efficient achievement of organizational and individual targets, it is known as management by objectives (MBO). Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 23
CHARACTERISTICS OF EXCELLENT ORGANIZATIONS Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 24
MANAGERIAL ROLES Managerial roles denote position-specific behavioural patterns of managers. Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd Mintzberg’s Managerial Roles 25
MANAGERIAL SKILLS AND COMPETENCIES Skill can be categorized as either generic or technical, or entry-level or advanced. Conventionally, skill can be defined as the amount of knowledge or attributes deemed vital to organizational success. There are four general types of skills: Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 26 1. Technical 2. Supervisory 3. Interpersonal 4. General business
A skills inventory is a device for pinpointing information about individuals and their suitability for different jobs. Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd SKILLS INVENTORIES 27
Multi-skilling is the process of training employees in specific skills that cross the traditional trade-specific or craft-specific skill sets. Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd MULTI-SKILLING 28
Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 29 COMPETENCIES Competencies are sets of behaviours that encompass skills, knowledge, abilities, and attributes.

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Principles

  • 1. 1 Introduction to Management Principles of Management DIPAK KUMAR BHATTACHAYYA
  • 2. LEARNING OBJECTIVES After going through this chapter, you will be able to understand: •the concept and process of management •the various functions of management •the characteristic features of management and its different dimensions •the importance of management in studying organizational structures and systems •modern management thoughts Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 2
  • 3. A BACKDROP TO MANAGEMENT An organization is made of a group of people with some specific goals, objectives, and activities. Organization is also defined as the relations among the components of a system. Organization structure denotes the components and relations that bind the people working within the organization. Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 3
  • 4. A BACKDROP TO MANAGEMENT (contd) People issues encompass education, training, and attitudes. Organization issues cover strategy, policy, culture, and bureaucracy. Technology issues encompass hardware, software, telecommunications, and information systems. Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 4
  • 5. NATURE AND PROCESS OF MANAGEMENT Operationally, management can be defined as a dynamic process that helps to get things done, through and with the efforts of people. Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 5
  • 6. DIMENSIONS OF MANAGEMENT The definitions of management can be categorized into different approaches according to their different dimensions: Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd Management dimensions 6 Productivity orientation Human-relations orientation Decision-making orientation Leadership orientation Process orientation
  • 7. FUNCTIONS OF MANAGEMENT Fayol (1949), the founder of modern management theory, divided all the activities of an organization into six groups: 1. technical 2. commercial 3. financial 4. security 5. accounting 6. managerial Principles are rules and guidelines, while elements are functions of management. Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 7
  • 8. FUNCTIONS OF MANAGEMENT (contd) Fayol has grouped the elements into five managerial functions: 1. planning 2. organizing 3. commanding 4. coordinating 5. controlling Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 8
  • 9. FUNCTIONS OF MANAGEMENT (contd) Another way of describing the functions of management is to consider them as a series of interrelated functions constituting a process. Planning Organizing Staffing Leading Coordinating Controlling Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd Functions of management 9
  • 10. CHARACTERISTICS OF MANAGEMENT The following are certain important features of the discipline of management: Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd •organized activities •aligned with organizational objectives •optimizes constraining resources •works with and through people •decision making •science as well as an art 10
  • 11. •universal •intangible •an interdisciplinary approach •a social process •a system of authority •dynamic •principles are relative and not absolute •a profession •a strategic function Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd CHARACTERISTICS OF MANAGEMENT (contd) 11
  • 12. SIGNIFICANCE OF MANAGEMENT Management is important due to the following reasons: •It optimizes use of scarce resources •It ensures effective leadership and motivation •It promotes harmony among industrial relations •It facilitates the achievement of goals •It facilitates change and growth •It enhances the quality of life •It improves productivity •It contributes to organizational competitiveness •It develops professionalism •It contributes to organizational growth Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 12
  • 13. DIFFERENT APPROACHES TO MANAGEMENT Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 13 History of management Classical approach Scientific management approach Administrative approach Bureaucratic approach Neo-classical approach Behavioural sciences approach Quantitative approach Contingency approach Modern approach
  • 14. CONTRIBUTIONS OF PRE-CLASSICAL THEORISTS The pre-classical theorists focussed on developing some specific techniques to solve some identified problems. Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 14
  • 15. CONTRIBUTIONS OF CLASSICAL THEORISTS The theorists of the classical school laid down the foundation of managing an organization in accordance with certain principles. Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 15
  • 16. CHARACTERISTICS OF BUREAUCRATIC THEORY The bureaucratic theory emphasizes authority structures and description of an organization based on the authority relations. Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 16
  • 17. MAJOR CONTRIBUTORS TO THE BEHAVIOURAL SCHOOL The behavioural school of management emphasizes the human element in an organization. Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 17
  • 18. MODERN APPROACHES Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 18 Modern approaches Quantitative school of thought Management science approach Operations management approach Systems theory approach Management systems approach Contingency theory
  • 19. CONTEMPORARY SCHOOL OF MANAGEMENT THOUGHT The contemporary school of management thought provides a framework of management practices based on more recent trends like globalization, theory Z concepts, McKinsey’s 7-S approach, excellence models, and productivity and quality issues. Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 19
  • 20. CONTEMPORARY SCHOOL OF MANAGEMENT THOUGHT (contd) McKinsey’s 7-S framework developed by T. J. Peters and R. H. Waterman (1982) identified seven independent organizational factors that need to be managed by today’s managers: 1. Strategy 2. Structure 3. Systems 4. Staff 5. Style 6. Superordinate goals (shared vision) 7. Skill Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 20
  • 21. CONTEMPORARY SCHOOL OF MANAGEMENT THOUGHT (contd) Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd McKinsey’s 7-S Model 21
  • 22. DIFFERENT TYPES OF MANAGEMENT PRACTICES Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 22
  • 23. MANAGEMENT BY OBJECTIVES When objectives are set in a systematic manner, consciously directed towards effective and efficient achievement of organizational and individual targets, it is known as management by objectives (MBO). Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 23
  • 24. CHARACTERISTICS OF EXCELLENT ORGANIZATIONS Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 24
  • 25. MANAGERIAL ROLES Managerial roles denote position-specific behavioural patterns of managers. Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd Mintzberg’s Managerial Roles 25
  • 26. MANAGERIAL SKILLS AND COMPETENCIES Skill can be categorized as either generic or technical, or entry-level or advanced. Conventionally, skill can be defined as the amount of knowledge or attributes deemed vital to organizational success. There are four general types of skills: Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 26 1. Technical 2. Supervisory 3. Interpersonal 4. General business
  • 27. A skills inventory is a device for pinpointing information about individuals and their suitability for different jobs. Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd SKILLS INVENTORIES 27
  • 28. Multi-skilling is the process of training employees in specific skills that cross the traditional trade-specific or craft-specific skill sets. Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd MULTI-SKILLING 28
  • 29. Principles of Management BHATTACHAYYA © 2012 Dorling Kindersley (India) Pvt. Ltd 29 COMPETENCIES Competencies are sets of behaviours that encompass skills, knowledge, abilities, and attributes.