1.
Principle of Management
GOVINDA ARYAL

2.
Introduction to Management
 All the activities done by the manager for getting things
done through others
 the art of getting things done through people
Functions:
 Planning
 Organizing
 Staffing
 Directing
 Controlling

3.
Levels:
Top level management
Mid level management
Low level management

4.
Managers
• person who manages the works and staff of the
organization
Types of Managers
 Top Level Manager
 Middle Level Manager
 Low Level Manager

5.
Perspective of Management
Pioneers’ of Management
 Robert Owen
 Charles Babbage
 Hennery Robinson Towne
 Captain Henry Metcalf
Categorization of Theories
• Classical Theory
• Behavioral Science and Human Relation Perspective
• Quantitative Perspective
• Integrating Perspective

6.
Scientific Management
Profounder: Federic Winslow Taylor- 1911
Principles
• Scientific work rather than tradition
• Training and Development of Workers
• Equilibrium in division of work
• Mental revolution
• Maximum output in place of restricted output
• Co-operation between manager and worker

7.
Contribution
• Use modern techniques to increase production
• Follows the rule minimize the cost, maximize the profit
• Improve the living standard of workers
• Bring attitude between employees and employers
Limitation
• Focus on technical terms and ignores human aspect
• Has not mention informal relation
• Workers are forced to do same task again and again
• Workers are not allowed to take initiative

8.
Administrative Management
Profounder: Henry Fayol-1919
Principles
• Division of work
• Discipline
• Unity of command
• Remuneration of personnel
• Equity
• Initiative
• Centralization
• Scalar Chain

9.
Contribution
• Laid heavy emphasis on universal principles of management
• Follows the process “planning, organizing, directing and controlling”
• Provide conceptual framework for analyzing the management
process
• Has isolated and analyzed management as separate discipline
Limitation
• Has not paid proper attention to the human behavioral aspects
• No clear distinction between structure and process so it is vague
• Based on personal experience and little observation
• Does not provide guidance how when and where it must be applied

10.
Bureaucratic Management
Profounder: Max Weber – 1920
Principles
• Formal rules and procedure
• Functional Specialization
• Well Defined Hierarchy of Authority
• Supervision by Higher Authority
• Technical Competence for Promotion
• Interpersonal relation

11.
Contribution
• Focus on Chain of command
• Proper division of work
• Specific procedure
• Job security
Limitation
• Rigid rules and regulation
• Ignores innovation
• Lack of effective communication
• Problem of role conflict

12.
Human Relation Approach
Profounder: Elton Mayo
Studies Conducted
i. Illumination experiment
ii. Relay test room experiment
iii. Mass interviewing program
iv. Bank wiring observation experiment

13.
Contribution
• Personal and social factors are important
• Informal leaders play an important role
• The concept of “social man” became unavoidable
• Effective supervision plays an important role
Limitation
• It does not focus on work
• Only focus on interpersonal relationship
• Neglect the economic dimension of work satisfaction
• The HR movement is anti individualist

14.
Need hierarchy Theory
Profounder: Abraham Maslow – 1943
Low Order Needs
• Psychological Needs
• Security Needs
• Social Needs
Low Order Needs
• Esteem Needs
• Self-Actualization Needs

15.
Two Factor Theory
Profounder: Federick Herzberg
Factors:
Hygienic Factor
Salary
Personal Life
Job Security
Relationship with Subordinates
Motivating Factor
Personal Growth
Responsibility
Achievement
Advancement

16.
Behavioral Theory
Contribution
• Identifies the role of human elements
• Emphasizes on non-financial rewards
• Emphasizes the role of individual psychology
Limitation
• Neglates the economic dimension of job satisfaction
• Has not considered situational variables
• Views management as nothing but applied business science
• Has clinical bias and lacks scientific validity

17.
Quantitative Perspective
Profounder: New Man, Joel Dean, PMS Blackket – 1940s
Types:
i. Management Science Theory
ii. Operation Science Theory
iii. Management Information Theory

18.
Contribution
• Complex relation among variables can expressed more effectively
• Presents management with an objective basis for making a decision
• Emphasizes logical analysis in decision making process
Limitation
• Does not deal with the people aspect of an organization
• All the required data can’t be updated and are not accurate
• Requires unrealistic or unfounded assumptions

19.
System Theory
Profounder: Ludwing Van Bertalanffy , Kenneth Boulding
Elements of System Theory
• Goal Oriented
• Subsystem
• Synergy
• System Boundary
• Flow
• Feedback
• Open or closed system

20.
Contribution
• Provide conceptual framework for meaningful analysis of
management
• Exhorts managers to analyze and understand every elements
• Tries to integrate various theories
Limitations
• Is too abstract so can’t be easily applied to practical problem
• Does not offer any tools and techniques
• Does not offer a unified body of knowledge

21.
Contingency Theory
Profounder: Tom Burns, James Thompson
Contingency Variables
• Organizational Size
• Routineness of Task Technology
• Environmental Uncertainty
• Individual Difference

22.
Contribution
• Managers get help in innovating new better approaches to meet
complex situation
• Gives the capability to think analytical, critical
• Managers are given more freedom
• Managers become more sensitive and alert
Limitation
• Ignores universally applicable principles
• Fails to enlist contingency variables
• Focus in situation but which tools in what situation should be used is
not defined
• Ignores human behavior aspect

23.
Planning
Concept
determines the course of actions to be followed in the
future to accomplish organizational objectives

24.
Levels of Planning

25.
Steps in planning
• Analyze opportunities
• Setting objectives
• Determination of premises
• Evaluation of alternatives
• Selection of best alternatives
• Formulation of derivative plan

26.
Tools for planning
• Forecasting
• Network technique
• Flow chart
• Gantt chart
• Breakeven analysis
• Linear programming
• Simulation

27.
Pitfalls of planning
• Lack of control
• Expensive process
• Inflexibility
• Based on certain assumption
• Delay in action
• Difficult to implement
• Unwillingness to change

28.
Decision Making
Concept
process of solving problem by choosing a specific course of
from among various alternatives
Types
• Programmed and Non-programmed decision
• Routine and basic decision
• Organizational and personal decision
• Individual and group decision
• Decision under certainty and risk

29.
Process of Decision Making
i. Defining the problems
ii. Identifying the relevant alternatives
iii. Evaluating the alternatives
iv. Selecting the best alternative
v. Implementing the decision
vi. Evaluating the result

30.
Organizing
Meaning
• process of dividing and grouping of the activities
• concern with structure and design of organization
• organizing function of management
Process of Organizing
i. Division of Activities
ii. Grouping the acticities
iii. Hierarchy of management
iv. Co-ordination

31.
Principles of Organizing
• Division of labor
• Authority & Responsibility
• Centralization & Decentralization
• Departmentation
• Co-ordination
• Balance

32.
Organizational Architecture
Vertical Design
Tall Structure
Flat Structure
Horizontal Design
Functional Structure
Geographical Structure
Multi-Divisional Structure
Matrix Structure

33.
Authority
• right to perform or command
• allows its holder to act in certain designated ways and to
directly influence the actions of others through orders
Types of Authority
i. Line Authority
ii. Staff Authority

34.
Staffing/HRM
Concept
• sub function of organizing
• relates with fulfillment of various position of a structure
• In the place of staffing, HRM is popular nowadays
• HRM, broad concept in management is also known as
ADUM
A = Acquisition
D = Development
U = Utilization
M= Maintenance

35.
Objectives of HRM(Human Resource Mgmt)
i. Quality of Work Life
ii. Readyness for change
iii. Productivity and Profitability
iv. Commitment and Satisfaction
Features
• Broad Concept
• Maintenance of people
• Maintain low turn over through satisfaction

36.
Importance of HRM
• Increase in product and profit
• Sharp the knowledge of people
• Forcing people in right track
• Proper utilization of resources
• Hiring right people

37.
Leading
Concept
• Concern with a process of influencing other
• Also called Implementation aspect
• Two participants involvement: leader and follower
• Gateway of success
• Act as a source of light
Qualities of Leader
i. Personal Quality
ii. Managerial Quality

38.
Personal Qualities
• Good personalities
• Self Dependent
• Education
• Discipline
• Experience
Managerial Qualities
• Head Person
• Technical skill
• Decision Making
• Plan Maker
• Power Exercise

39.
Leadership Styles
i. Autocratic/ Authoritian / Leader-Centered
ii. Democratic/ Consultative/ Participative / People-Centered
iii. Leissez-Faire/ Free-rein/ Individual- Centered

40.
Group
Concept
• Collection of people
• Grouping task of organization
• Team work
• Innovative
Process of Group Formation
i. Pre-Stage
ii. Storming Stage
iii. Norming Stage
iv. Performing Stage
v. Adjourning Stage

41.
Types of Group
Formal Group
Command Group
Task Group
Informal Group
Interest Group
Friendship Group

42.
Motivation
Concept
• Sub function of Leading
• Process of influencing and attracting other
• Psychological aspect
• Continuous process
Importance
• To fulfill physical and financial needs
• To increase efficiency
• To increase productivity
• To increase goodwill

43.
Techniques of Motivation
i. Job Rotation
ii. Job Enlargement
iii. Job Enrichment
iv. Self managed Work Team
v. Participation
vi. Understanding Behavior
vii.Reward System

44.
Communication
Concept
• Sub class of Leading
• Process of transferring information
• Continuous process
• Universally applicable
• Participate of active listener
• Fastest process

45.
Components
i. Message
ii. Sender
iii. Encoding
iv. Channel
v. Decoding
vi. Receiver
vii.Feedback
viii.Noise

46.
Networks of Communication
Chain
Wheel
Circle
Completely Connected
Types
i. Formal Communication
ii. Informal Communication
iii. Inter-personal Communication
iv. Non- Verbal Communication

47.
Barriers to Effective Communication
i. Physical Barriers
ii. Psychological Barriers
iii. Process Barriers
iv. Semantic Barriers
Features of Active listener
• Educated
• Healthy
• Concentration
• Intension
• Interest

48.
Controlling
Concept
• Function of management
• Process of creating discipline environment
• Insuring the jobs in right order
• Last function but not least
• Continuous process
• Makes all activities in track

49.
Purpose
• To insure jobs in right order
• To take corrective action
• To find out deviation
• To insure smooth operation
• To minimize losses
• To minimize misuse of resources
Process
i. Establishing standards (Desire Stage)
ii. Measuring actual performance
iii. Finding out the deviation
iv. Taking corrective action

50.
Types of Control
i. Input control/ Gatekeeper/ Initial
ii. Process control/ Concurrent/ Transformation
iii. Output control/ Feedback/ Post Action
Essentials of Effective Control System
• Objective oriented
• Flexibility Control System
• Economical
• Accuracy
• Timely
• Skillful

51.
Tools and Techniques of Control
i. MIS (Management Information System)
ii. DSS (Decision Support System)
iii. Financial & Budgetary Control
iv. Production & Operational Control
v. Quality Control
vi. Cultural Control
vii.Personal Control
viii.Technological Control

52.
Quality
Concept
• Mechanism to make production perfect
• Anything that can satisfy the consumers’ need
• Excellency that can give by the product
Importance
• Helps to satisfy people
• Helps to make production excellent
• Helps to compete in market
• Helps to create sustainable
• Profit making
• Helps to increase sales

53.
Emerging Issues of Quality management
• Globalization
• Technological Development
• Consumer Awareness
• Innovation of Change
• Employee Turnover
• Quality of Work Life
• Promotion

54.
Total Quality Management
Concept
• Never ending process of improving quality
• Continuous process of improving quality
• Focused on team work
Components
• Strategic Commitment
• Employee Commitment
• Materials
• Technology
• Methods

55.
Principles of TQM
• Customer Focus
• Leadership
• Process approach
• Continuous Improvement
• Awareness
• Mutual Relationship
Tools & Techniques of TQM
i. Bench Marking
ii. Out Sourcing
iii. Speed
iv. ISO Certificate
v. SQC(Statistical Quality Control)

56.
Organizational Change
Concept
• Shifting from old state to new state
• Continuous improvement of organization
• Process of shifting regular practices of organization

57.
Forces of OC
Internal Forces
Organizational Goal
Organizational Structure
Organizational System
Organizational policies
External Forces
Task Force
Customers, Competitors, Facilitators
External General Forces
Political, Economic, Socio-Cultural, Technical

58.
Paradigm Shifts & Areas
i. Structure
ii. Technology
iii. Business Process
iv. Behaviors
Resistance to Change
• Lack of Education
• Politics
• Conflict
Way to Resistance to Change
• Overt
• Covert

59.
Overcoming Resistance to Change
• Fulfill the needs
• Training
• Flexible rules and regulation
• New technology
• Awareness
• Proper Supervision
• Group Work
• Quality of work life
• Reduce Conflict

60.
Organizational Development
Concept
• Continuous process of improvement
• Sequential achievement of goals
• Improvement in all sectors of organization
• Possible only by making small small changes of organization