Principle and practices of management ch1

Principle and Practices of Management Chapter 1

Organizations

A systematic arrangement of people brought together to accomplish some specific purpose; applies to all organizations—for-profit as well as not-for-profit organizations.

Where managers work (manage) Common characteristics

Goals Structure People

Common Characteristics of Organizations

Organizational Levels

Management

The organization and coordination of the activities of a business in order to achieve defined objectives.

"Management is the art of getting things done through and with people in formally organized groups.“-Harold Koontz

"To manage is to forecast and to plan, to organize, to command, to co-ordinate and to control.“- Henri Fayol,

Management….(Cont)

"Management is a multi-purpose organ that manages business and manages managers and manages workers and work.“- Peter Drucker

"Management is the art of getting things done through people.“-Mary Parker Follet

Management brings together all Six Ms i.e. Men and Women, Money, Machines, Materials, Methods and Markets. They use these resources for achieving the objectives of the organisation such as high sales, maximum profits, business expansion, etc.

Characteristics of ManagementContinuous and Never Ending ProcessResult Oriented ApproachResult through othersUniversal ApproachIntangibleDynamic in NatureBoth Art and ScienceAuthoritative StructureBased on Group Activity

Management Functions

The 4 basic management functions that make up the management process activities are :

Planning Organizing Leading Controlling

Management Functions

Planning

Deciding in Advance. Includes defining goals, establishing strategy, and

developing plans to coordinate activities Planning involves choosing tasks that must be

performed to attain organizational goals, outlining how the tasks must be performed, and indicating when they should be performed.

Organizing Organizing can be thought of as assigning

the tasks developed in the planning stages, to various individuals or groups within the organization. Organizing is to create a mechanism to put plans into action.

People within the organization are given work assignments that contribute to the company’s goals. Tasks are organized so that the output of each individual contributes to the success of departments, which, in turn, contributes to the success of divisions, which ultimately contributes to the success of the organization.

Leading

The purpose of leading is to increase productivity. Human-oriented work situations usually generate higher levels of production over the long term than do task oriented work situations because people find the latter type distasteful.

Includes motivating employees, directing the activities of others, selecting the most effective communication channel, and resolving conflicts

Controlling The process of monitoring performance,

comparing it with goals, and correcting any significant deviations

Gather information that measures performance Compare present performance to pre established

performance norms. Determine the next action plan and

modifications for meeting the desired performance parameters.

Controlling is an ongoing process

Management: ArtArt implies application of knowledge & skill

to trying about desired results. Practical Knowledge: E.g. to become a

good painter, the person may not only be knowing different colour and brushes but different designs, dimensions, situations etc to use them appropriately.

Personal Skill:  E.g. there are several qualified painters but M.F. Hussain is recognized for his style. Similarly management as an art is also personalized.

Management: Art (Cont..) Creativity: Every artist has an element of

creativity in line. That is why he aims at producing something that has never existed before which requires combination of intelligence & imagination. Eg. It tries to produce sweet music by combining chords in an efficient manner.

Perfection through practice: Managers learn through an art of trial and error initially but application of management principles over the years makes them perfect in the job of managing.

Goal-Oriented: Every art is result oriented as it seeks to achieve concrete results. In the same manner, management is also directed towards accomplishment of pre-determined goals.

Management: ScienceScience is a systematic body of

knowledge pertaining to a specific field of study that contains general facts which explains a phenomenon. It establishes cause and effect relationship between two or more variables and underlines the principles governing their relationship. 

Universally acceptance principles - E.g. - law of gravitation which can be applied in all countries irrespective of the time.

Experimentation & Observation - E.g. the principle that earth goes round the sun has been scientifically proved. Same as for Management like Henry Fayol.

Management: Science(Cont...)

Cause & Effect Relationship -E.g. when metals are heated, they are expanded. The cause is heating & result is expansion. Same as in Management lack of parity (balance) between authority & responsibility will lead to ineffectiveness.

Test of Validity & Predictability -Validity of scientific principles can be tested at any time or any number of times i.e. they stand the test of time. Each time these tests will give same result. E.g. H2 & O2 will always give H2O.

Same as in Management principle of unity of command can be tested by comparing two persons - one having single boss and one having 2 bosses. The performance of 1st person will be better than 2nd.

Management: Just A Science

It cannot be denied that management has a systematic body of knowledge but it is not as exact as that of other physical sciences like biology, physics etc.

It deals with human beings and it is very difficult to predict their behavior accurately.

Since it is a social process, therefore it falls in the area of social sciences.

It is a flexible science & that is why its theories and principles may produce different results at different times and therefore it is a behavior science.

Ernest Dale has called it as a Soft Science.

Management: Art and Science

Management is both an art and a science.

Science because it has an organized body of knowledge which contains certain universal truth.

Art because managing requires certain skills which are personal possessions of managers.

Science provides the knowledge & Art deals with the application of knowledge and skills.

For Manager and Organization Science is the root and Art is the fruit.

Management: Profession

A profession may be defined as an occupation that requires specialized knowledge and intensive academic preparations to which entry is regulated by a representative body. 

Specialized Knowledge –Eg. Expertise, Skills and Innovation.

Formal Education & Training -Minimum Qualification is required. Eg. MBA or other relevant degree required.

Social Obligations –Eg. Provide quality goods at reasonable prices to the society.

Management: Profession(Cont..)

Code of Conduct - Rules and regulations, norms of honesty, integrity and special ethics to be followed.

Representative Association –Always connected with various group and departments.

Authority and Responsibility- Responsible for many group performance like employees, shareholders and society.

Responsible for Professional Goal- Eg. Maximizing profit and Growth of organization.

Management vs AdministrationBASIS FOR COMPARISON MANAGEMENT ADMINISTRATION

MeaningAn organized way of managing people and things of a business

organization is called the Management.

The process of administering an organization by a group of

people is known as the Administration.

Authority Middle and Lower Level Top level

Role Executive Decisive

Area of operation It works under administration. It has full control over the activities of the organization.

Applicable to Profit making organizations, i.e. business organizations.

Government offices, military, clubs, business enterprises,

hospitals, religious and educational organizations.

Work Putting plans and policies into actions.

Formulation of plans, framing policies and setting objective

Focus on Managing work Making best possible allocation of limited resources

Represents Employees, who work for remuneration

Owners, who get a return on the capital invested by them.

Managerial Skills

Managerial Skills (Cont.)

Conceptual skills: Conceptual skills involve the ability to see the whole

organization and the interrelationships between its parts.

These skills refer to the ability to visualize the entire picture or to consider a situation in its totality.

These skills help the managers to analyze the environment and to identify the opportunities.

Conceptual skills are especially important for top-level managers, who must develop long-range plans for the future direction of their organization.

Managerial Skills (Cont.)Human skills:

Human skills refer to the ability of a manager to work effectively with other people both as individual and as members of a group.

Human skills are concerned with understanding of people.

These are required to win cooperation of others and to build effective work teams.

Managerial Skills (Cont.)Technical skills: Technical skills refer to the ability and

knowledge in using the equipment, techniques and procedure involved in performing specific tasks.

These skills require specialized knowledge and proficiency in the mechanics of a particular.

Technical skills lose relative importance at higher levels of the management hierarchy, but most top executives started out as technical experts.

Managerial Roles

Qualities of Excellent Manager Leadership Result Oriented Creativity Effective Decision

Making Demonstrate Maturity Visionary Positive Attitude Accountability Honest Self Motivation Industry Knowledge

Delegation Patience Flexibility Empathy

Levels of Management

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