Essentials Of Management


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Essentials of Management: Preliminary part of Principles of management: Recommended for Anna University Curriculum

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Essentials Of Management

  1. 1. Essentials of Management Dr. P. Rajendran Professor – Management Sciences SNS College of Engineering Coimbatore
  2. 2. Introduction • Managing is one of the important human activity. • People usually forming groups to accomplish aims which (aims) could not achieve as individuals. • So, managing has been essential to ensure the co-ordination of individual efforts. • Managerial practices are very essential to all persons in organization.
  3. 3. Introduction - Contd… MANAGE - MEN T ME N
  4. 4. Management • Every business unit has objectives of its own. • These objectives can be achieved with the co-operative efforts of several personnel. • The work of a number of persons are properly coordinated to achieve the objectives through the process of management. • Management is the art of getting the things done by a group of people with the effective utilisation of available resources.
  5. 5. Management - Defined • Henry Fayol – “to manage is to forecast and plan, to organise, to compound, to coordinatre and to control”. • Donald J. Clough – “management is the art and science of decision making”. • F.W. Taylor – “management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way”. • R.M. Currie – “the organisation and control of human activity are directed towards specific ends”.
  6. 6. Management - Expanded • Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims. • This basic definition needs to expanded: • As Managers, people carryout the managerial functions of Planning, organising, staffing, leading and controlling. • Management applies any kind of organisation at any organisational level. • The aim of managers is same: to creat a Surplus. • Managing is concerned with • Productivity = Efficiency + Effectiveness
  7. 7. Productivity, Efficiency and Effectiveness • Productivity – The input-output ratio within a time period with due consideration for quality. • Output/Input Ratio • Efficiency -Rate of achievement with least amount of resources. • [Output/Input] X 100 • Effectiveness - Rate of achievement of objectives • By time, quantity and quality
  8. 8. Characteristics of Management • Art as well as Science • Art – Possessing of managing skill by a person. • Science – Developing principles and laws where group of activities are coordinated. • Management is an activity – Effective utilisation of resources (4M) • Management is a Continuous Process – POSD:CORC(B). • Management is a Discipline • Management aims at maximising profit • Management is A Profession • Universal application.
  9. 9. Functions of Management • Planning – Deciding in advance: achieving organisational Objectives. • Organising – Distribution of work in group-wise: More departments are brought together. • Staffing – selection and placement of competent personnel: Placement of right persons in the right jobs. • Directing – Guidence, supervision and motivation: total manner in which a manager influences the action of his subordinates.
  10. 10. Functions of Management • Coordinating – Summing up the resources towards the accomplishment of goals. • Motivating – increasing the speed of performance: Developing a willingness on the part of the workers. • Controlling – Ensuring that goals are achieved. • Innovation • Decision-Making • Communication.
  11. 11. Role of a Manager • Director – instructing • Motivator – stimulating • Human Being – treating equally and no personal bias • Guide – well aware of using equipments, techniques and procedures • Friend – forwarding voluntarily and eliminating misunderstanding • Planner – identifying requirements time-to- time. • Supervisor – executing performance • Reporter – providing feed back information to the top level management.
  12. 12. Managerial Functions at Different Organisational Levels Organisational Levels Functions of Management Top Level P O Middle Level L Lower Level C
  13. 13. Managerial Skills at Different Organisational Levels • Levels of Management Skills – T – H – C&D
  14. 14. Eight characteristics of Excellent Enterprises Profitability is an important measure of company excellence. Thomas Peters and Robert Waterman identified 43 companies that they regarded as excellence which are found in their book, In Search of Excellence. In choosing some of the firms, they considered factors such as; Growth of assets and equity, Average return on total capital. • Characteristics of Excellent Enterprises • Oriented towards action • Learned about the need of their customers, • Promoted managerial autonomy and entrepreneurship • Achieved productivity by paying close attention to the needs of their people • Driven by company’s philosophy often based on the values of their leaders, • Focused on the business they knew best, • Had a simple organisational structure with a lean staff and • Centralized and decentralised depending on appropriateness (Ex :Decide on investment Centralisation/Effort on cost control Decentralisation.
  15. 15. Evolution of Management Thought • In managing, as in any other field, unless practitioners are to learn by trial and error, there is no place they can turn to, for meaningful guidance other than the accumulated knowledge underlying their practice. • Many different contributions of writers and practitioners have resulted in different approaches to management. • These practitioners and management reviewers have come up with principles and divisions of management. • Among the various experts of management, FW Taylor, Henry fayol, Elton Mayo and FJ.Roethlisberger are found as pioneers of Management.
  16. 16. The Emergence of Management Thought S.No Name Major Work and Year Major Contribution to Management Scientific Management 1 F. W. Taylor (Father of Scientific Management) •Shop Management (1903) •Principles of Sci. Mgt (1911) Scientific Management – Increasing productivity through greater efficiency by application of Scientific method. 2 Henry L. Gantt Gantt Chart (1901) Harmonious Cooperation b/w labor and Management, stressed the need for training 3 Frank & Lillian Gilbreth Frank is Known for time and Motion Study, Lillian an industrial psychologist focused on human aspects of work (1900). Understanding of worker’s personalities and needs
  17. 17. S.No Name Major Work and Year Major Contribution to Management Modern operational Management Theory 1 Henry Fayol (Father of Operational Management) Administration Industrielle et generale (1916) Division of Industrial Activities - Technical, commercial, financial, security, accounting and managerial. Formulated 14 Principles of Management. Behavioural Sciences 1 Hugo Mintzberg (1912) Psychology in Industry 2 Walter Dill Scott Psychology in Promotional and Personnel Management ((1901, 1911) Application of Psychology in Advertising, marketing, and personnel management 3 Vilfredo Pareto Father of Social Systems and Approach (1896 – 1917) Social Systems and Approach to organization and Management. 4 Elton Mayo Hawthorne Plant Behavioural Studies at Hawthorne Plant of Western Electric Company 5 F.J Roethlisberger Influence of Social attitudes (1933) Influence of Social attitudes and relationships of work groups on performance. Systems Theory 1 Chester Barnard The Functions of the Executive (1938) Comprehensive social system as task of Managers 2 Peter F Drucker W. Edward Deming General management (1974) Introduced QC in Japan 3 Thomas Peters & Robert Waterman Excellence of Companies (1982) Identified Characteristics of companies they considered Excellent.
  18. 18. Fayol’s (1841-1925) 14 Principles of Management • Division of Work – Various functions – posd corb. • Authority & Responsibility – right to give orders and power to exact obedience. • Discipline – obedience to authority and observance of rules of service • Unity of Command – receive instructions about a particular work from one superior only. • Unity of Direction – complete identitiy between individual and organisational goals • Subordination of Individual interest to general interest. • Remuneration – fair wages and salary • Centralisation – deciding on the degree of centralisation or decentralisation of authority on the basis of • the nature of the circumstances (functional/operational) • Size of the undertaking (SML/MSME) • The type of activities (Manufacturing/Product/Services) • Nature of the organisational structure (Functional, line, staff, Matrix) • Scalar Chain – hierarchy of authority from the highest executive to lowest one for the purpose of communication.
  19. 19. Fayol’s 14 Principles of Management – Contd.., • Scalar Chain As per the principle, the orders or communications should pass through the proper channel. • Order – putting the things in order through competent HR and equipments. • Equity – equality of fair treatment = Kindness + Justice. It requires managers to be free from all prejudices, personal likes and dislikes. • Stability of Tenure of personnel – assured security of job by the management. If they have fear if insecurity of job, their morale will be low and the cannot give more and better work. • Initiative – freedom to think an execute the plan. Innovation is the hallmark of technological process is possible where the employees are encouraged to take initiative. • Esprit de Corps – union is strength: • creating team spirit among employees • Harmony and unity among the employees are a great source of strength to the undertaking. • To attain EdC, 1. Motto of divide and rule should be avoided 2. Verbal communication should used for removing misunderstanding. A C D B E M N O P
  20. 20. FW Taylor’s (1856 – 1915) Contribution as Scientific Management • Time and Motion Study – stop watch method: unnecessary motion ate avoided: best way doing job was found: replace the old-rule-of–thumb knowledge • Differential Payment – incentives with production with high piece rate. • Drastic Reorganization of supervision – each worker to plan his own work. The worker himself used to select his tools. • Scientific recruitment and Training – train every worker to bring out his best performance and enabling them to higher and profitable class of work. • Intimate friendly cooperation b/w the management and the worker – a complete mental revolution Vs quarrel over poor profits / rich loss.
  21. 21. Elton Mayo and FJ Roethlisberger – Hawthorne Studies • EM & FJR undertook the famous experiments at the Hawthorne Plant of the Western Electric Company between 1927 and 1932. • To determine the effects of illumination and other conditions on workers and their productivity. • The experiment constrains are: • Increasing or decreasing illumination • Modifying rest period • Shortening work days • Varying incentive pay systems all partly responsible for productivity • Other findings are: • Social factors as morale, • Interrelationships • Group behaviour • Motivating, counselling • Leading and communicating Also playing important roll in determining productivity.
  22. 22. 10 Managerial Roles(Activities) identified by Mintzberg (Prof. Henry Mintzberg – McGill University) •The figure Role (performing ceremonial and social duties as the organisation’s representative) •The Leader Role (being able to lead all by living as model) •The Liaison Role (particularly with outsiders) •The Recipient Role (receiving information about the operation of an enterprise) •The Disseminator Role (Passing and interpreting information to subordinates) •The spokesperson Role (transmitting information to those outside the organisation) •The Entrepreneurial Role •The Disturbance-handler role •The resource-allocator role •The Negotiator Role (dealing with various persons and groups of persons) Interpersonal Roles Informational Roles Decision Roles
  23. 23. Patterns or Approaches to Management • Empirical or Case approach-Analysing an incident or event • Managerial Roles approach-3IPR+4DR+3IR • Contingency or situational approach • Causes + contingency = Effect • Mathematical or management Science Approach • Statistics, Operations Research • Decision Theory approach • Process of DM • Entire area of Business Activity • Nature of Organisation Structure • Information for Decisions • Individual and Group DM • Reengineering approach • Fundamental rethinking process Analysis • Radical Redesign • Dramatic Reults
  24. 24. • Systems Approach • POSD CORB • Interacting with external Environment • Socio Technical Systems approach • Technical Skill given importance • Emphasis only on BC and LL workforce • Ignoring other managerial Knowledge • Cooperative social systems approach • Concerned with • Interpersonal and • Group Behavoural Aspects • Cooperative group with a clear purpose • Group behaviour approach • Studying behaviour of group through Sociology and Socio Psychology
  25. 25. • Interpersonal Behaviour Approach • Focus on • Interpersonal Behaviour • Human relations • Motivation • McKinsey’s 7s Framework Orgn Structure Strategy Skills Shared Values Systems Staff Style
  26. 26. • TQM Approach • Satisfaction through Quality Products and Services • Management Process or • Operational Approach Summary of approaches above Operational Approach Integrates the approaches with Science and theory as well as Practical