Principles of Management ppt

2. COURSE OUTCOME
K1 CO1 To understand the functions in management as
applied in practice.
K2 CO2 To evaluate organizational decision.
K3 CO3 To get the idea about training and development.
K4 CO4 To analyze the key issue related to administering.

3. Unit-1 Introduction to Management:
Management –Definition – Nature – Scope and Functions – Principles of Management -Evolution of
Management – Thoughts – Contribution of F.W. Talyor – Henry Fayol – Elton Mayo – Hawthorne
Experiment – Management by Objective(MBO) – Management by Exception (MBE) – Management by
Participation (WPM)
Unit-2 Functions of Management:
Planning – Importance – Advantages – Steps in Planning – Types of Plans – Decision Making –
Planning – Types of Decision – Process of Decision Making.
Organizing: Nature and Purpose of Organizing – Principle of Sound Organization –Types of
Organization – Factors
Unit-3 Human Resource Management:
Measures - Definition – Need – Evaluation – Importance- HR Planning – Factors Governing Planning.
Unit-4 Performance Appraisal and Sustaining Employee:
Methods of Performance - Staffing – Sources of Recruitment - Selection Process – Training -
Evaluation. Modern Methods of Control - The Control Process – Importance, Techniques – Methods –
Requirement of Effective Control Systems Grievances – Causes – Implications – Redressed Methods –
Collective
Unit-5 Motivation of Employee’s:
Motivation – Types of Motivation – Theories of Motivation – Morale – Measures to Improve Morale –
Job Satisfaction – Determinants of Job Satisfaction - Steps to Improve Job Satisfaction – Stress
Management – Causes – Steps

7. 1. Management is an activity
2. It is an purposeful activity
3. It is concerned with the effort of a group
4. Management is getting things done through
5. It applies economic principles
6. Involves decision making
7. Co-ordinates all activities and resources
8. It is a universal activity
9. It is intangible
10. It is profession

8. 1. Subject matter of management
2. Functional areas of management
3. Management is an interdisciplinary approach
4. Principles of management
5. Scientific management

9. Management
Planning
Organizing
Staffing
Directing
Co-ordinating
Controlling

10. Functions of management

14. MBO is "a process whereby superior and
subordinate managersof an Organization jointly define
its common goals, define each individual's major areas
of responsibility in terms Of results expected of him
and use these measures as guides for operating the unit
and assessing the contribution of each of its
members."
GeorgeOdiorne

15. All individuals within an organization are assigned a
special set of objectives that they try to reach during a
normal operatingperiod.
Performance reviews are conducted periodically to
determine how close individuals are to attaining their
objectives.
Rewards are given to individuals on the basis of
how closethey cometo reaching theirgoals.

16. • Translate main statement into operational
terms.
• To give directions and set standards for the
measurement of performance.
• Tomeasureand judgeperformance
• To relate individual performance to
organizational goal
• To foster increasing competence and growth
of subordinates

17. • To enhance communication between
superiors andsubordinates
• Toserveasabasisfor judgments about salary and
promotion
• Tostimulate subordinatesmotivation
• Toserveasadevice for organizational control and
integration
• Toset long term and short termobjectives

18. Define
Organization
al Goals
Define
Employee
Objectives
Continuous
Monitoring
Of Employee
Performance
And Progress
Performance
Evaluation/
Reviews
Providing
Feedback
Performance
Appraisals

19. Developsresult-orientedphilosophy
Formulationof dearergoals
Facilitatesobjectiveappraisal
Raises employeemorale
Facilitateseffectiveplanning.
Actsas motivationalforce.
Facilitateseffectivecontrol
Facilitatespersonalleadership.
Basis fororganizationalchange

20. Time-consuming
Failure to teach MBOphilosophy
Reward-punishment approach
Increasespaper-work
Createsorganizational problems
Developsconflicting objectives
Problem of co-ordination
Lacksdurability

23.  Type of management in which employees at all levels are encouraged
to contribute ideas towards identifying and setting organizational-
goals, problem solving, and other decisions that may directly affect
them. Also called consultative management.
 Participatory management is the practice of empowering members
of a group, such as employees of a company or citizens of a
community, to participate in organizational decision making.

25. Meaning of planning
The first and foremost function of management is planning.
Simply, planning is deciding in advance what should be
done.
Definition
Planning is deciding the best alternative among others to
perform different managerial operations in order to achieve
the predetermined goal.
- Henry fayol

26. 1. It focuses on objective
2. It helps to avoid “no work” or “work pressure” situation.
3. It helps to avoid wastage of resources
4. It ensures efficiency as well as effectiveness
5. It reduces risk and uncertainty
6. It provides for co-ordination
7. It facilitates control
8. Planning also provide scope for decentralization

27. 1. Uncertain nature
2. Expensive
3. Rigidity
4. Loss of initiative
5. Ignorance of subordinates interest
6. Complacent attitude

28. 1. Identifying business opportunities
2. Establishment of objectives
3. Determination of planning premises
4. Identifying the alternative course of action
5. Evaluation the alternative course of action

29. Classification of plans according to time
1. Long-term planning-
2. Medium- term planning
3. Short-term planning

30. Meaning
Decision making is the process of selecting one alternative from
among a number of alternatives available.
Definition
decision making is a process of selection from a set of
alternative course of action which is thought to fulfill the
objective of the decision problem more satisfactory than others.
- Haynes and Massie

31. 1. Identifying and understanding the problem
2. Making an analysis of the problem
3. Identifying alternative solution
4. Evaluating the alternative solution
5. Selecting the best solution
6. Implementing the decision
7. Review

32. 1. Organizational decisions
2. Personal decisions
3. Strategic or basic decision
4. Routine or repetitive decisions
5. Policy decisions
6. Operating decisions
7. Programmed or structured decisions
8. Non-programmed or unstructured decisions
9. Individual decisions
10. Group decisions

33. Definition
Organizing is the structural framework of duties and
responsibilities required of personnel in performing
various functions within the company.
- Wheeler

34. 1. Objective
2. Division of work
3. Authority and responsibility
4. Delegation
5. Balance
6. Responsibility is absolute
7. Unity of command
8. Unity of direction
9. Simplicity
10. Flexibility

35. 1. Line organization
2. Line and staff organization
3. Functional organization
4. Committee organization
5. Project organization
6. Matrix organization

36. The line organization, also known as the military
organization, is the oldest form of organization. In such an
organization the superior at the top makes decision and
communicates his decision and assign certain work to his
subordinate. The subordinate in turn makes certain
decisions within the scope of his authority and assign duty
to his subordinate and so on.

38. Advantages of lineorganisation Disadvantages of lineorganisation
1.Simplicity 1. Lackof specification
2. Division of authority andresponsibility 2. Overloading
3. Unity of control 3. Lackof initiative
4. Speedyaction 4. Scopefor favoritism
5. Discipline 5. Dictatorial
6. Economical 6. Limited communication
7. Co-ordination 7. United administration
8. Direct communication 8. Subjective approach
9. Flexibility 9. Instability
10. Lackof co-ordination

39. Meaning
This type of organization is suitable for large scale
establishment. There will be separate departments to
look after different line of activities.

40. Board of directors
Managing director
Production manager marketing manager
Foreman 1 Foreman 2 Sales off-1 sales off-2
Workers Workers

41. Advantages offunctional
organisation
Disadvantages offunctional
organisation
 Benefit of specialization
 Application of expertknowledge
 Reducingthe workload
 Efficiency
 Adequate supervision
 Relief to lineexecutive
 Co-operation
 Economy
 Flexibility
 Massproduction
 Complexrelationship
 Discipline
 Over specialization
 Ineffective co-ordination
 Speedof action
 Centralization
 Lackof responsibility
 Increasing the overheadexpenses
 Pooradministration
 Suitability offunctional

42. The organization structure, in which specialist are
added to the line managers to provide guidance and
support, is called line and staff organization.

44. Advantages of line and stafforganisation Disadvantages of line and stafforganisation
Facilitates to work faster andbetter If powers are not defined then getconfusion
Specialization isattained Lineofficers mayreject advice without any
reason for their action
Enablesto utilize experienceandadvice Staff officers are not responsible iffavorable
results are not obtained.
Officers cantake sound advice Difference between line and staff officerswill
defeat the very purpose ofspecialization
New technology or procedure canbe
introduced without anydislocation
Lineofficers blame staff officers for unfavorable
results and want to get rewardsfor favorable
results
Promotes efficient functioning of lineofficers
Verygood opportunity is made available to
youngperson to gettraining

45. A number of persons may come together to take a
decision, decide a course of action, advise line officers
on some matters, it is a committee form of
organization. It is a method of collective thinking,
corporate judgment and common decision. A
committee may be assigned some managerial functions
or some advisory or exploratory service may be
expected from it.

46. Merits Demerits
Pooling of opinions Time and cost
Improved cooperation Compromise
Motivation Strain on interpersonal
relations
Representation Lack of effectiveness
Dispersion of power Personal prejudice

47. Definition
A project organization is a preferred means
whenever a well defined project must be dealt with or the
task is bigger than anything, the organization is
accustomed to.
-George R. Terry

49. Merits Demerits
Concentrated attention on project
work
Accentuated problems of co-
ordination
Advantages of team specialization Unclearly defined relationship
Ability to cope with environmental
influences
Feeling of insecurity among personnel
Timely completion of the project Duplication of efforts

50. Definition
A matrix organization is a structure in which there
is more than one line of reporting managers. Effectively, it
means that the employees of the organization have more
than one boss!

52. Merits ofMatrix
organization
Demeritsofmatrix
organization
Achievement of objectives
Bestutilization of
resources
Appropriatestructure
Flexibility
Motivation
Personaldevelopment
Complexrelationship
Strugglefor power
Excessive,emphasison group
decision-making
Arising conflictresolution
Heterogeneous

57. • Clerical Function1920-1940
• Administrative Functions1941-1960
• Managerial Function1961-1980
• Strategic Partner1981-2000
• Strategic partner and
Decision making
From 2000

58. What is human resource planning?
Human resource planning is the process of
determining the manpower requirements and the means
for meeting those requirements in order to carry out the
integrated plan of the organization.
- Coleman

59. 1. It helps the organisation to procure the required
manpower.
2. It further helps to replace employees
3. It helps in expansion programmes
4. It ensure optimum investment in human resource
5. It is indispensable to give effect to reservation
policy
6. It is essential in view of the problem of labour
turnover
7. It helps to tackle the problem of surplus and
shortage of manpower
8. It becomes necessary to meet the needs of changing
technology

60. Factors governing HRP
Internal factor External factor

62. Performance appraisal is the process of making an
assessment of the performance and progress of the
employees of an organization.

63. Traditional
method
Rating scale
Rating method
Check list
method
Critical incidents
method
Forced choice
Forced
distribution
Essay method
Paired
Modern
method
360 degree feedback
MBO
Assessment centers
Behaviorally Rating Scale
(BARS)

64. What is training?
Training is the act of increasing the knowledge and
skills of an employee for doing a particular job.
- Edwin B. Flippo
What is Executive development?
It is a planned program for developing the conceptual,
decision making and leadership abilities of managers.

65. On the
job
training
Apprentic
eship
Job
rotation
Vestibule
training
Job
instruction
Training
Under
study
Coaching

66. Off the
job
training
lecture
Confere
nce
Reading
Role
playing
Case
study
Business
game
Counseli
ng
In
basket
training

67. What is recruitment?
Recruitment is the process of searching for
prospective employees and stimulating them to apply for
jobs in the organization.
-Edwin B Flippo

68. INTERNAL
SOURCES
Recommendation by
existing employee
Transfer
Promotions

69. INTERNAL SOURCES
ADVANTAGES DISADVANTAGES
 Time saving
 Reliable method
 Reduced training cost
 Better motivation
 Improved loyalty
 Reduces turnover
 Better relation
 High productivity
 Limited scope
 Partiality
 Hinder fresh thinking
 Less choice
 Talent ignored
 Lethargic attitude
 Conflict
 Might affect growth
 Difficult to turnaround

70. EXTERNAL
SOURCES
Advertisement
Employment exchange
Private employment consultants
Campus interview
Rival firm
Unsolicited applicants

71. EXTERNAL SOURCES
ADVANTAGES DISADVANTAGES
Availability of suitable person
Brings fresh thinking
Economical
Initiate turnaround
Avoids politics
Enables growth
Improved diversity
 Higher turnover
 Lack of co-operation
 Lack of adjustment
 Affects initiative
 Affects motivation
 Clash of ideas
 Chance of failure

72. Recruitment Process
Recruitment planning
Designing recruitment strategy
Evaluation of recruitment sources
Implementation of strategy
Advertising the vacancy
Evaluation

73. What is Selection?
Selection is the process in which candidate for
employment are divided into two classes, those who
are to be offered employment and those who are not to
be.
- Dale Yoder

74. Receiving application forms
Scrutiny
Preliminary interview
Test
Final interview

75. Checking reference
Medical examination
Appointment
Probation
Confirmation of service

76. Control is the continuing process of measuring the
actual results of the operations of an organization to the
results which were planned.
-Brech

77. Establishment
of standards
Measurement
of actual
performance
and making
comparison
Finding out
deviations
Taking
corrective
action

78. 1. It ensures attainment of enterprise objective
2. It highlights the quality of plans
3. It ensures successful implementation of plan
4. It ensures that employees work with commitment
5. It provides scope for delegation
6. It facilitates co-ordination
7. It promotes efficiency

79. Simplicity
Suitability
Objectivity
Flexibility
Economical
Usefulness
Forward looking
Promptness
Supported by employees

80. 1. Budgetary control
2. Cost control
3. Inventory control
4. Break-even point
5. Profit and loss control
6. Statistical analysis
7. External and internal audit
8. Return on investment control
9. Management information system

89. Any combination of psychological and
physiological and environmental circumstances that
cause a person to truthfully say I am satisfied with my
job.
- Hoppock

91. Morale is a mental condition of groups and
individuals which determine their attitude.
- Davis

92. Right man for right job
Satisfactory work
Work environment
physical condition
Work method
Social environment
Incentives
Job rotation
Grievance handling

93.  Firms should be guided by human values. They should
treat their employees fairly and with respect.
 Employees should be provided for growth in their
career.
 There should be opportunities for employees to exhibit
their initiative.
 Job should be made interesting and challenging.
 Job should be matched with the interest , knowledge
and potential of employees.
 Remuneration and incentives should be according to
employee contribution.

94.  Working condition should be good and the work
environment should be convenient.
 There should be healthy relationship with superior,
subordinates and peers
 Employee should be informed of the importance of
their contribution.
 Opportunities to improve skills and knowledge
through training and development.
 Building a strong company image so that employees
feel proud to work in a firm.
 Job rotation, job enrichment and job enlargement to
reduce monotonous and increase the interest.

95. Meaning
stress is an adaptive response to an external
situation that results in physical, psychological and
behavioral deviations for organizational participants.
- Fred Luthans

96. 1. Individual stressors
 Life and career change
 Personality type
 Role characteristics
2. Group stressors
 Group norms
 Group cohesiveness
 Group objectives
 Lack of social support
 Conflict

97. 3. Organizational stressors
 Goals
 Policies and procedures
 Rules and regulations
 Working conditions
 Compensation
 Job design
 Organizational structure
 Performance appraisal

98. 4. Extra organizational stressor
 Family obligations
 Economic conditions
 Financial conditions
 Cultural conditions
 Technological conditions

101. Thank you