introduction to management

1. Principles of
Management
Introduction

2. Introduction
 Science or Art ?

3. Management
 Management is the act of getting people together to accomplish desired goals
and objectives using available resources efficiently and effectively.
 Management consists of planning, organizing, staffing, leading, coordinating
and controlling an organization (a group of one or more people or entities) or
effort for the purpose of accomplishing a goal.
 Resourcing encompasses the development and utilization of human resources,
financial resources, technological resources and natural resources.
 Since organizations can be viewed as systems, management can also be
defined as human action, including design, to facilitate the production of useful
outcomes from a system.
 Management is essential for the conduct of business activity in an orderly
manner. It is a vital function concerned with all aspects of working of an
enterprise.

4. Taylor’s Contribution to
Management
 Frederick Winslow Taylor (20 March 1856-21 March 1915),
widely known as F. W. Taylor, was an American mechanical
engineer who sought to improve industrial efficiency.
 He was one of the first management consultants.
 He is sometimes called the “Father of Scientific Management”.

5. Scientific
Management
Taylor's scientific management consists of four
principles:
Science is not a rule of thumb
Replace rule-of-thumb work methods with methods based on a
scientific study of the tasks.
Scientific Selection, Training and Development:
Scientifically select, train, and develop each employee rather than
passively leaving them to train themselves.
Harmony not discord:
Harmonious relationship between employees and employers.
Cooperation of employees so that managers can ensure that work is
carried in accordance with standards.
Division of work:
Divide work nearly equally between managers and workers, so that
the managers apply scientific management principles to planning
the work and the workers actually perform the tasks.

6. Fayol’s Contribution to
Management
 Henri Fayol (29 July 1841–19 November 1925) was a French
mining engineer, mining executive, author and director of mines
who developed a general theory of business administration that is
often called Administrative Theory or Fayolism.
 Emphasized the flow of information and how organizations
should operate
 Often referred as ‘Father of Management Studies and Thoughts’

7. Fayol’s Principles & Elements of Management
 Fourteen Principles of Management (Tools for
Accomplishing Objectives)
 Division of work
 Authority and Responsibility
 Discipline
 Unity of Command
 Unity of Direction
 Subordination
 Remuneration
 Centralization
 Scalar Chain
 Order
 Equity
 Stability of Tenure
 Initiative
 Esprit de Corps
 Elements of Management
 Planning
 Organising
 Command
 Control
 Coordination

8. Drucker’s Contribution to
Management
 Peter F. Drucker (19 November 1909 – 11 November 2005) was
an Austrian-born American management consulting, educator, and
author, whose writings contributed to the philosophical and
practical foundations of the modern business corporation.
 He invented the concept of ‘Management by Objectives’ and &
his contributions include Decentralization , Divisionalization etc
 He has often been described as the ‘Founder of Modern
Management’.

9. Contributions
1. Nature of Management
2. Management Functions
3. Organisation Structure
4. Federalism
5. Management by Objectives
6. Organizational Change.

10. Management Functions
Planning – deciding in advance what is to be done
A process that includes defining goals, developing a course of
action to achieve a goal or a set of steps based on a forecast

11. Management Functions
Organizing
Determining how 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.

12. Management Functions
Staffing
Staffing is the process of recruiting & selecting eligible candidates
in the organization or company for specific positions. In
management, the meaning of staffing is hiring employees by
evaluating their skills, knowledge and then offering them specific
jobs / roles accordingly.

13. Management Functions
Leading
A function that includes motivating employees, directing others,
selecting the most effective communication channels, and resolving
conflicts.

14. Management Functions
Controlling
Monitoring activities to ensure they are being accomplished as
planned and correcting any significant deviations.

15. Management Functions
Planning
Defining goals,
establishing
strategy, and
developing
subplans to
coordinate
activities
Lead to
Organizing
Determining
what needs
to be done,
how it will
be done, and
who is to do it
Leading
Directing and
motivating all
involved parties
and resolving
conflicts
Controlling
Monitoring
activities
to ensure
that they are
accomplished
as planned
Achieving the
organization ’s
stated
purpose

16. S
K
I
L
L
S
LEVELS OF MANAGEMENT
CONCEPTUAL
HUMAN
TECHNICAL
TOP MIDDLE JUNIOR

17. Managerial Competencies
COMPETENCY EXPERTISE ROLES JOB
Two broad groups of competencies
Technical competency
Social competency

18. COMPETENCIES----- -------- -EXPERTISE--------- --------ROLES----------------- --JOB
(Reqd behavior linked to
Job Performance) (Spl K & S ) (Grouping of (Combination of Roles)
competencies)
TWO BROAD GROUPS OF COMPETENCIES
Technical Competence = Functional Competence
Social Competence = Interpersonal Competence
Communication Ability
Ability to Collaborate
Personal Credibility

19. Example :-
JOB HR Manager
ROLES Functional Expert/Employee Advocate/Human Capacity Developer
EXPERTISE Knowledge of HR Concepts & Knowledge/Skills of best practices
COMPETENCIES Business Knowledge
Personal Credibility
TASKS Talent Acquisition
Handling of Compensation & Benefits

20. Introductory Concepts: What Are
Managerial Competencies?
 Competency – a combination of knowledge,
skills, behaviors, and attitudes that contribute to
personal effectiveness
 Managerial Competencies – sets of knowledge,
skills, behaviors, and attitudes that a person
needs to be effective in a wide range of positions
in various organizations

21. Why are Managerial Competencies
Critical?
 You need to use your strengths to do your best
 You need to know your weaknesses
 You need developmental experiences at work to become
successful leaders and address your weaknesses
 You probably like to be challenged with new learning
opportunities
 Organizations do not want to waste human resources
 Globalization, deregulation, restructuring, and new
competitors add to the complexity of running a business

22. Managerial Competencies
Teamwork
Competency
Global
Awareness
Competency
Strategic
Action
Competency
Planning and
Administration
Competency
Self-Management
Competency
Communication
Competency

23. Managerial Competencies
Teamwork
Competency
Global
Awareness
Competency
Strategic
Action
Competency
Planning and
Administration
Competency
Self-Management
Competency
Communication
Competency
Managerial
Effectiveness

24. Types of Business
 Proprietorship: This is when there is a single owner. There is minimal paperwork required
for this purpose. Keep in mind there is an unlimited liability in this case, i.e. if things go
wrong and you are sued, then you might end up losing your personal property as well in
order to meet the liabilities.
 Partnership: This is where we have partners and there is an agreement or a registration
that happens. Again, There are unlimited liabilities in this case. A partnership is valid till the
end of an agreement, or if the partner/partners declare insolvency or if the partner/partners
die. So, the life of a partnership is limited. Nature of the business can be kept private.
 Limited Liability Partnership(LLP): This is something that was introduced int 2008.
Using this the liability of the partners is limited. There has to be a registration that happens
at the MCA. Though the liability is limited, these have a shorter life than a private limited
company (same cases as a partnership).
 Private Limited Company: There is paperwork involved in this process and you have to
register with the MCA. The life of a private limited company is longer and can be closed
only as per law. There are companies that are more than 100 years old. From a trust
standpoint, Private Limited is much better. Some of the bigger companies might not even
deal with companies that are not Private Limited
 Public Limited Company.

25. Corporate Governance - Business Ethics
 Primarily concerned with public listed companies i.e. those listed on a Stock
Exchange.
 Focused on preventing corporate collapses such as Enron, Polly Peck and the
Maxwell companies.
 Contemporary corporate governance started in 1992 with the Cadbury report in
the UK.
 Cadbury was the result of several high profile company collapses.
 is concerned primarily with protecting weak and widely dispersed
shareholders against self-interested Directors and managers.

26. Corporate Governance (Stakeholders & Pillars)
Corporate Governance Stakeholders:
 Shareholders – those that own the company.
 Directors – Guardians of the Company’s assets for the Shareholders.
 Managers who use the Company’s assets.
Pillars:
 Accountability
 Fairness
 Transparency
 Independence

27. Management Trends and Challenges
 Changing Organisational Perspective
 Globalisation of Business
 Quality Assurance and Productivity
 Corporate Governance
 Corporate Social Responsibility/ Affirmative Action /Sustainability
 Innovation and Change
 Workforce Diversity / Inclusiveness
 Empowerment
 Technology
 Relationship Management
 Workplace Wellness /Work Life Balance
 Knowledge Management
 Remaining relevant, surviving, growing in a VUCA world and now a Covid /post Covid world

29. Globalization
 IMF defines globalisation as ‘the growing economic interdependence of
countries worldwide through increasing volume and variety of cross border
transactions in goods and services and of international capital flows, and also
through the more rapid and widespread diffusion of technology’.

30. Drivers of Globalization
 International Trade
 Financial Flows
 Communications
 Technological advancements in transportation, electronics, etc.
 Population mobility, especially labour.

31. Levels of Globalization
 World Level
 Country level
 Industry Level
 Company Level
 Locality Level

32. Foreign Market Entry Strategies
 Exporting
 Licensing/franchising
 Contract manufacturing
 Management contract
 Assembly operations
 Fully owned manufacturing facilities
 Joint Venture
 Countertrade
 M&A
 Strategic Alliance

33. Consequences of Globalization for India
 Led to unequal competition giant MNC’s and Indian
companies.
 It is like integrating a mouse into a herd of elephants
 Greater opportunities for MNC’s to raid and takeover
Indian Enterprises, inability to meet the challenges
from MNC’s due to weak economic strength vis a vis
MNC’s.
 Size disadvantages

34. Consequences of Globalisation for India
 Upto 1991, operated in a protectionist environment.
 Cost of capital for Indian business much higher than
MNC’s
 Immense financial strength of MNC’s, as they can bear
losses for more time and also buyout most Indian firms
as they like
 Indian firms cannot reduce labour but MNC’s can easily
adopt modern technology and reduce labour
requirements.

41. Corporate Social Responsibility 3 Ps

42.  Sustainability ( UN SDGs)
 Some SDGs other than Zero Hunger ,No Poverty
- Education
- Gender equality
- Responsible consumption & production
- Clean water & sanitation
- Climate action
- Life on land
- Life below water
- Partnerships to achieve goals