Principles of Management - Useful for Anna University & Madras University Syllabus

1. INTRODUCTION TO MANAGEMENT
- R.Shyam Prasad

2. Syllabus
• Unit - I
• Management : Importance - Definition - Nature and
• Scope of Management process - Role and Functions of
a
• Manager - Levels of Management - Development of
Scientific
• Management and other Schools of thought and
approaches.

3. Definition of Management
• According to Harold Koontz “Management is
the art of getting things done through & with
people in formally organized groups”

4. Nature of Management
• Management is Universal
• Management is Purposeful
• Management is a Social Process
• Management is Multi disciplinary
• Management is Continuous process
• Management is Intangible

5. Levels of Management
• Top level Management
– Creating long term goals (5 years), planning to achieve goals
– Deal with external forces – Customers, competitors, Government etc.
• Middle level Management
– Creating medium term goal (1 year) which helps to achieve the goal set
by Top Mgt,
– Acting as a link between Top & lower mgt
– Supervising the lower level mgt.
• Lower level Management
– Advising, Assisting, maintaining Supervising the lower level Employees.

6. Roles of Manager
• Mintzberg has created three broad roles for manager
• Interpersonal Role
–Figure Head
–Leader
–Liaison
• Informational Role
–Monitor
–Disseminator
–Spokesperson
• Decisional Role
–Entrepreneur
–Disturbance Handler
–Resource Allocator
–Negotiator

7. Scope of Management
• Production Management
• Marketing Management
• Financial Management
• Personnel Management

8. Functions of Management /
Steps in Management Process
• Planning
• Organizing
• Staffing
• Directing
• Controlling

9. Approaches to Management
• Classical Approach
• Behavioral Approach
• Management Science Approach
• Systems Approach
• Contingency Approach

10. Classical Approach
• Mgt is a process of interrelated functions performed to
achieve goals.
• Mgt principles can be derived from the experiences of
managers in different organizations
• These Mgt principles are general truths which can be
applied in other organizations
• Extensive research helps to create a body of knowledge.
• Classical Approach is further classified into Scientific,
Administrative, bureaucracy.

11. Management Thought
• Scientific Management – FW Taylor
• Administrative Theory – Henry Fayol
• Behavioral Theory – Elton Mayo

12. Scientific Management – FW Taylor
• FW Taylor is known as “Father of Scientific
Management”
• According to FW Taylor “Management is the Art
of knowing what you want men to do & seeing
that they do it in the best & cheapest way”
• He advocates that there is “One best way” of
doing work and such work has to be created
scientifically

13. Scientific Management – FW Taylor
• Techniques of Scientific Management
• Time Study
• Motion Study
• Scientific Task Planning
• Standardization & Simplification
• Differential Piece rate system
• Functional Foremanship

14. Differential Piece rate system
• Items that can be produced in 1 day = 10
• Standard rate for producing 1 item = 1
• If no of items produced in a day < 10, rate = 0.8
• If no of items produced in a day > 10, rate = 1.2
• Worker A = 10 items * 1.0 (Std. rate) = 10
• Worker B = 7 items * 0.8 (lower rate) = 5.6
• Worker C = 13 items * 1.2 (Higher rate) = 15.6

15. Functional Foremanship

16. Administrative Theory – Henry Fayol
• Elements of Management
– Planning
– Organising
– Commanding
– Coordinating
– Controlling

17. Administrative Theory – Henry Fayol
• Universal Principles of Management or Henry fayol’s 14
Management Principles
1. Division of Work
2. Authority & Responsibility
3. Discipline
4. Unity of Command “One boss for one subordinate”
5. Unity of Direction “Sense of direction”
6. Subordination of Individual to General Interest
7. Remuneration of Personnel
8. Centralization

18. Administrative Theory – Henry Fayol
9. Scalar Chain
10.Order “Every thing person & thing has its place”
11.Equity
12.Stability of Tenure
13.Initiative – “Entrepreneurship skill”
14.Espirit de Corps

19. Bureaucratic Management
• Bureaucracy refers to the management of
large organizations characterized by
hierarchy, fixed rules, impersonal
relationships, rigid adherence to procedures,
and a highly specialized division of labor.

20. Bureaucratic Management
• Clearly specified, activities are distributed as official duties
• Organization follows hierarchial principle — subordinates follow orders or superiors,
but have right of appeal
• The management of the office follows general rules which are more or less stable,
more or less exhaustive, and which can be learned.
• Employees are selected on basis of technical qualifications
• The official is a full-time employee and looks forward to a life-long career. After a trial
period they get tenure of position and are protected from arbitrary dismissal.

21. Behavioral Approach
• An organization is not just a techno-economic system.
It is more of a social system of interpersonal &
intergroup relations.
• Attitudes & Performances of an employee are
dominated by the social group to which he belongs
• Social & psychological rewards are far important than
economical reward
• There should be harmony between individual goals &
organizational goals.

22. Behavioral Approach – Elton Mayo
• Hawthrone Experiments
– Illumination Experiment
– Relay Assembly Test Room Experiment
– Mass Interviewing Program
– Bank wiring Observation Room Study

23. Relay Assembly Test Room Experiment

24. Management Science or
Mathematical Approach
• Use of Mathematical & Statistical Models
• Focused on finding right answers to complex
questions, where question has several variables
• Examples:
– Queues formed in banks & Service time
– Transportation problems
– Sequencing of activities in production

25. Systems Approach

26. Systems Approach
• An organization is a system of many interrelated sub systems.
• Every organization draws inputs in the form of Material, Men,
Money from its environment and transforms them into goods &
service, which is returned to the environment
• Organization is open system as it interacts and has to change itself
according to its environment
• Systems Approach stresses the importance of sub systems and its
interaction with environment

27. Contingency Approach
• Each organization is unique. As no single approach or
theory can be applied to all organizations and even when
applied the results thereof will be different.
• There is difference between organizations due to Internal
factors such as Size, nature, management style,
Employees etc.
• Hence management is entirely situational. There is no
one best way of managing an organisation