principles of management.ppt

Contents
Nature of management,
Meaning of management and
Significance of management.
Managerial functions.
Managerial processes.
Managerial skills.
Managerial roles in organizations.

DEFINITIONS OF MANAGEMENT
There are as many definitions numbers of authorities in
this field.
 As per Mary Parker Follet:
“The art of getting things done through others.”
As per George R. Terry:
“Management is a process of planning, organizing,
actuating and controlling performed to determine and
accomplish the objectives by use of people and resources.

Definition of management
process
Production or efficiency oriented
Decision-oriented
People-oriented
Function-oriented
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MANAGEMENT CONCEPT/DR. KAAMINI SHARMA

Production oriented
According to Taylor management define as a
“management is the art of knowing what you want to do and
then seeing that it is done in the best and chepest way.”
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Decision oriented
“Management is simply the control over the action of human
beings for the expressed purpose of attaining pre-determined
goals.”
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People oriented
Lawrence appley define management as a “management is the
accomplishment of result through the efforts of other people.”
According to koontz “management is the art of getting things
done through and with people formally organized group.”
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Function oriented
According to Henry Fayol “ to manage is to forecast and to plan,
to organize, to coordinate and to control.”
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In simple words of van Flrt
&Peterson
“management as a set of activities directed at the efficient &
effective utilization of resources in the pursuit of one or more
goals.
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Financial resources
Physical resources
goals
Informational resources
Human resources
Managerial activities
Effective & efficient utilization
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COMMENTS ON THE NATURE OF
MANAGEMENT
Management is not just an art – it is also a
science.
Managers are required to do more than one
function.
Managers also perform non-managerial roles.
Managerial functions are done in all
organizations.
Managerial functions are executed at all levels.
Management functions have been defined using
different types and different number of words.
Aim of all managers is to create a surplus.
Managing is concerned with efficiency,
effectiveness and productivity.
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Nature of management
1. Multidisciplinary
2. Dynamic nature of principles
3. Relative , not absolute principals
4. Management science or art
5. Management a profession
6. Universality of management
7. Management is an integrative process
8. Management is necessarily activity based
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Feature of management
1. It is a process
2. It is a social process
3. Group efforts
4. Attainment of pre determine objective
5. It is a distinct entity
6. It is a system of authority
7. Universality of management
8. It is needed at all levels
9. It is a discipline
10. It is a integrative process
11. It is an art as well as science
12. It is a profession
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Importance of management
1. Achievement of group goals
2. Minimization of cost
3. Change and growth
4. Effective and smooth running of business
5. Higher profit
6. Provide innovation
7. Social benefits
8. Effective utilization of resources
9. Development of resources
10. Sound organization structure
11. Useful for developing countries
12. Integration various interest groups
13. Stability in the society
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SYSTEMS VIEW OF ORGANIZATIONS
Organizations can be considered as
open systems that continually interact
with the external environment.
The external environment is both a
supplier of resources as well as a
source of consumers and
significantly influences the
operations and outcomes.
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SYSTEMS VIEW OF ORGANISATIONS
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#
OPPORTUNITIES
#
THREATS
RESCOURCE
INPUTS
Money Land
Materials Energy
Machines Info
Methods Mgmt
Men
OUTPUTS
Finished goods
and/or services,
Others
TRANSFORMATION
PROCESS
Workflows turn
resources into
outputs
Supplies
Environment
Organization creates Consumes
GOAL INPUTS OF STAKE HOLDERS
Investors/Customers/Employees/Suppliers/Society/Government
Consumer Feedback

ORGANISATIONAL PERFORMANCE
PRODUCTIVITY,EFFICIENCY AND EFFECTIVENESS
Resources and customers are two critical
elements of open system view of organizations.
For organizational success the resources must
be well utilized and customers well served.
The need for value creation is vital in this
context.
Value is created when resources are utilized in
the right way, at the right time and at minimum
cost.
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ORGANISATIONAL PERFORMANCE.
If organizations add value to the original cost of
inputs then :
1)business organizations earn profit
2)non profit organizations add wealth to the
society.
All organizations utilize a variety of performance
measures.
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ORGANISATIONAL PERFORMANCE
Productivity
Productivity is one of the most
common indicators of performance.
Productivity is defined as the
overall value of goods and services
produced divided by the value of
inputs needed to generate that
output.
Productivity is also linked to
efficiency and effectiveness
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ORGANISATINAL PERFORMANCE
Efficiency and Effectiveness
Efficiency is the relationship between
inputs and outputs –minimizing
wastes and therefore cost of
resources.
Effectiveness is a measure of goal
attainment.
Summing up: ORGANIZATIONS NEED
TO DO THE RIGHT THINGS IN A RIGHT
WAY
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ORGANISATIONAL
PERFORMANCE
Efficiency-Effectiveness Matrix
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INEFFECTIVE AND INEFFICIENT
•Goals not achieved
•Resources wasted
•Poor revenue and high cost
•Loss
EFFECTIVE AND EFFICIENT
•Goals achieved
•Resources well utilized
•Good revenue and low cost
•Good profit
EFFECTIVE BUT INEFFICIENT
•Goals achieved
•Resources wasted
•Good revenue but high cost
•Marginal profit or loss
EFFICIENT BUT INEFFECTIVE
•Goals not achieved
•No wasted resources
•Poor revenues and low cost
•Marginal profit or loss
GOAL
ATTAINMENT
HIGH
LOW
POOR GOOD
RESOURCE UTILISATION

FUNCTIONS OF MANAGEMENT
The most well accepted framework for
understanding management is to break down the
management functions into its constituent
processes:
PLANNING
ORGANISING
STAFFING
LEADING
CONTROLLING
Management is referred to as a process to
emphasize that ALL managers engage in certain
INTER-RELATED activities in order to achieve the
desired goal.
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PLANNING
IT IS THE FUNCTION THAT DETERMINES
THE FUTURE COURSE OF ACTION. IT
INVOLVES:
Setting missions, goals and objectives.
Formulating the strategy to achieve the
above.
Answering the 5W’s and 2H’s in a general
way for all the units and the sub units of the
organization.
Allocating resources-human, physical and
monetary.
Planning exercise to be done at all levels.
The time horizon for planning to be on long
term, medium term as well as on short term
basis
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ORGANISING
Organizing a business requires providing it
with all the necessary inputs at the place and
at the time they are required.
Based on the requirement of the plan, design
the structure.
The structure results from:
- identifying individual roles,
- grouping of work,
- integrating the total effort and
- establishing relationships.
Organizational structure creates an
environment for human performance.
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STAFFING
Staffing is a perpetual function requiring
managers to find the ‘right person for the right
job.' This is a dynamic situation since people are
continually leaving, getting fired, dying, promoted
and transferred. Building of human organization
involves:
Identifying work force requirement.
Inventorying available people.
Selecting and recruiting new people.
Planning careers of workforce.
Training and developing the current incumbent
and his/her successor to enable them to perform
their tasks efficiently and effectively.
Appraising and promoting.
Setting compensation.
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LEADING PREDOMINANTLY DEALS WITH
INTERPERSONAL ASPECTS OF MANAGING.MOST
IMPORTANT OPPORUNITIES AS WELL AS
PROBLEMS FOR MANAGERS ARISE FROM PEOPLE.
EFFECTIVE MANAGERS ALSO NEED TO BE
EFFECTIVE LEADERS. LEADING INVOLVES:
Communication- it has to be a two - way traffic.
Leadership- it is the process of guiding and
influencing the work of subordinates.
Motivation- it arouses the desire in the workers to
give their best. It is an act of inspiring and
stimulating.
Motivation can be financial as well as non-
financial.
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LEADING

CONTROLLING
IT IS ENSURING OUTCOMES OF ACTIONS
CONFORM TO THE ADOPTED PLANS.THIS
INVOLVES:
Establish standards of performance.
Compare current performance with
standards.
For any deviation take corrective action to
ensure the organizational goals are met.
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THE MANAGEMENT PROCESS IN
PRACTICE
It is easier to understand a process, as complex
as management, when it is broken down into
parts and the basic relationships between the
parts are clearly identified.
Descriptions of this kind are called models.
In reality, managing is not as simplistic as made
to look during previous discussion on
management functions using models.
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PRACTICE
The management process is the ongoing
decisions and work activities in which
managers engage as they plan, organize, lead
and control.
Various models are more intertwined than
implied by our earlier model.
There is no simple cut-and dried beginning or
ending point as managers plan, organize, lead
and control.
As managers ‘manage’ they are often involved
in some planning, some organizing, some
leading and some controlling,- and perhaps not
even in that sequential order.
Different management processes seem to
merge into each other like a continuous river.
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PRACTICE
THE INTERACTIVE NATURE OF
MANAGEMENT PROCESS
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PLANNING
Setting performance objectives
And how to achieve them.
CONTROLLING
Measuring performance and
taking action to ensure
desired results are achieved.
ORGANISING
Arranging tasks ,people and
other resources to accomplish
the work.
LEADING
Inspiring people to give their
best to achieve high
performance levels.

Differencebetweenmanagement and
administration
Basis Administration Management
Nature of work Mainly concerned
with the
determination of
objective & and
major policies of an
org.
It puts the policies &
plans into action
Type of function Thinking or
determinative
function
It is a doing or
executive function.
Level of authority
Top level activity Middle level activity
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Decision making Decision are generally
influenced by public
opinion, thinking or
determinative function
It is a ‘doing’ or
executive function
Main function Planning and
organising
Motivation and
controlling
Administrative &
technical ability
It needs administrative
rather than technical
ability
It require technical
ability more than
administrative ability.
Co-ordination and
control
Co-ordinates finance,
production and
distribution. Frame
org. structure &
exercises control over
the enterprise.
It uses org. for
achievement of the
targets fixed by
administration.
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MANAGERIAL ROLES IN ORGANISATION
People working together in groups to
achieve some goal must have roles to play,
like the roles actors fill in a drama.
These roles could be the one’s :
- They develop themselves
- Are accidental and haphazard or
-Well defined and structured by someone
to ensure people contribute in a specific
way to group efforts.
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MANAGERIAL ROLE IN
ORGANISATION
H. Mintzberg’s study of five top managers at
work challenged several long held concepts
about a manager’s job, like managers were
reflective thinkers, who carefully &
systematically processed information before
making decisions.
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MANAGERIAL ROLES IN
ORGANISATION
Mintzberg discovered that:
-His managers engaged in a large number
of varied, unpatterned and short duration
activities.
-There was little time for reflective
thinking because managers faced
constant interruptions.
-Half of manager’s activities lasted less
than nine minutes each.
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MANAGERIAL ROLES IN ORGANISATION
In addition to above insights on what managers
did, Mintzberg categorised what managers do
based on what managers actually do on their
jobs.
Mintzberg concluded that managers perform ten
different but highly interrelated roles
Management roles refer to specific categories of
managerial behaviour.
Mintzberg’s ten managerial roles can be grouped
as:
1. INTERPERSONAL ROLES
2. INFORMATIONAL ROLES
3. DECISIONAL ROLES
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MINTZBERG’S MANAGERIAL ROLES
1.INTERPERSONAL
Role Description Examples of identifiable
activities
Figure
head
Symbolic head; required to
perform a number of routine duties
of a legal or social nature.
Greeting visitors,
signing legal
documents.
Leader Responsible for motivation and
activation of subordinates,
staffing, training and associated
duties.
Performing virtually all
activities involving
subordinates.
Liaison Maintains self developed network
of outside contacts and informers
who provide favours and
information. Such networks are
also developed and maintained
within the organisation.
A sales manager
conferring at a
marketing trade
association meeting.
Also receiving
information from H.R.
manager of the org.
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2. INFORMATIONAL
Roles Description Examples of identifiable
activities
Monitor Seeks and receives wide
variety of information to
develop thorough
understanding of organization
& the environment. Becomes
the nerve centre of internal and
external information.
Reading magazines &
journals, studying
reports.
Disseminat
or
Acts as an ‘information conduit’
to different members of the org.
Some information may require
interpretation and integration.
Holding communication
meetings, phone calls to
relay information.
Spokespers
on
Transmitting information to
outsiders- plans, policies,
actions, results etc.
Holding board meetings.
Interviews with media.
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3. DECISIONAL
Role Description Examples of
identifiable activities
Entreprene
ur
Searches org. and its environment for
opportunities and initiates ‘empowerment
projects’ to bring about changes;
supervises design of certain projects and
oversees their execution.
Organising strategy &
review sessions to
develop new
programmes
Disturbance
handler
Responsible for corrective action when
organisation faces important unexpected
disturbances
Organising strategy &
their review to deal
with
crises&contingencies
Resource
allocater
Responsible for allocation of all
organisational resources in effect, making
or approving all significant decisions
Scheduling,
requesting,
authorising,budget,
programming,
subordinates work
Negotiator Responsible for representing the
organisation at major negotiations
Participating in union
contract negotiations
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MANAGERIAL ROLE IN ORGANISATION
EVALUATION OF MINTZBERG’S FINDINGS
Follow up studies validate and support Mintzberg’s
role categories:
1. Managers of all organisations & at all levels
perform similar roles.
2. However emphasis on different roles may change
with their organizational levels eg. Roles of
figurehead, disseminator, negotiator are important
at higher levels. Leader role is more important at
lower levels.
3. Most of Mintzber’s roles align smoothly with the
four functions
4. All managers do some work that is not purely
managerial.
Mintzberg has clearly offered new insights into what
managers actually do .
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MANAGERIAL SKILLS
A skill is an individual’s ability to translate knowledge into
action and is manifested in the performance.
People can be born with certain skills but it is very much
possible to develop them through appropriate training
and experience.
In order to discharge his roles successfully a manager
should possess the following three roles:
1. Conceptual skills,
2. Interpersonal skills and
3. Technical skills.
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Conceptual Skills
Conceptual skill is the ability to think analytically and solve
complex problems. It involves the ability to break down
problems into smaller parts, and to recognise the influence
or implications of any one problem on others.
Managers are increasingly required to deal with more
ambiguous problems, that have many complications and long
term consequences.
The ability to understand the external and the internal
environment, conceptualise the issues involved directly and
indirectly and come out with a decision or solution.
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Human Relations Skill
Human relations skill is the ability to work well in co-operation with
other people at all levels.
This skill develops in the manager an ability:
1. To recognise the feelings and sentiments of others,
2. To anticipate and judge the outcome of various actions envisaged
to be taken.
3. To examine his own concepts and values which may enable him to
develop correct attitudes
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Technical Skills
A technical skill is the ability to use a special proficiency
or expertise in one’s work.
Engineers, doctors, tailors, accountants, market
researchers for example possess technical skills.
Technical skills can be initially acquired thru’ formal
education and are further developed by training and
experience.
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Skill–mixatdifferentmanagementlevels.
Lower level Middle Level Top level
managers managers managers
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Conceptual skills-the ability to think analytically and achieve
integrative
Problem solving.
Human skills-the ability to work well in cooperation with other
people
Technical skills-the ability to apply expertise and perform
Special tasks with proficiency

Differencebetweenmanagement and
organization
Management Organization
1) It is executive function which is
primarily concerned with the
getting things done through others.
It is organic function of putting
together the different parts of an
enterprise into working order.
2) Planning, organization, staffing,
motivation, direction, coordination
and control are all function of
management.
Organization is one of the
important function of management.
3) Management function are
executed by bringing into being an
organisation.
Organisation is framework or
edifice of management.
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Cont….
4) It is like the entire body of
human being.
It is like the nervous system of a
human body.
5)There is different level of
management viz., top, middle and
lower.
There is no such level in
organisation.
6)Management uses the
organisation determined by
administration.
Organisation is the machine of
management in its achievement of
the ends determined by
administration.
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