Principles Of Management Chapter 1 GTU MBA

7/31/2019 Principles Of Management Chapter 1 GTU MBA

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Management: Science,

Theory, & Practice


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Definition of Management: Its Nature

and Purpose

Management is the process of designing and maintaining an

environment in which individuals, working together in groups,

efficiently accomplish selected aims.


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Functions of Management

Planning

Organizing

Staffing

Leading Controlling


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Managerial Functions at Different

Organizational Levels

All managers carry out managerial functions, but the time spent

for each function may differ.


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Time Spent in Carrying Out

Managerial Functions


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Managerial Skills and the Organizational Hierarchy

The four skills required of administrators:

Technical skills

Human skills

Conceptual And Design skills


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Skills and Management Levels


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The Goals of All Managers and Organizations

The aim of all managers should be to create a surplus. Thus,

managers must establish an environment in which people can

accomplish group goals with the least amount of time, money,

materials, and personal dissatisfaction.


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Characteristics of Excellent & Most

Admired Companies

Oriented toward action

Learned about the needs of their customers

Promoted managerial autonomy and entrepreneurship

Achieved productivity by paying close attention to the needs oftheir people

Driven by a company philosophy often based on the values oftheir leaders

Focused on the business they knew best

Had a simple organization structure with a lean staff Centralized as well as decentralized, depending on

appropriateness.


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Trends

Technology

Globalization

Entrepreneurship


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Productivity

Productivity implies effectiveness and efficiency in individual andorganizational performance.

Productivity= Input

Output

Increasing outputs with the same inputs

Decreasing inputs but maintaining the same outputs

Increasing the outputs and decreasing the inputs to change the

ratio favorably


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Definitions of Effectiveness

and Efficiency

Effectiveness is the achievement of objectives.

Efficiency is the achievement of the ends with the least amountof resources (time, money, etc.).


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Managing: Science or Art

Managing as practice is an art; the organized knowledge

underlying the practice is a science.


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Management & Administration

Administration Management

Traditional & bureaucratic More modern & dynamic

Refers to decision making &

determination of what is to be done &

how

Refers to execution & implementation of

agreed goals

Normative by nature Problem solving by nature

Stress on process, & elaborate rule

governed procedure

Stress on output by often not trying to

minimize something, but optimizing the

opposing forces.Focus on ideology Focus on skills

Importance of uniformity & standards Importance of variance & context

Priority is governance Priority is performance


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The Evolution of Management

Thought

Scientific management

Frederick Taylor, Henry Gantt, Frank & Lillian Gilbreth

Modern operational management theory

Henry Fayol

Behavioural sciences

Hugo Munsterberg, Walter Dill Scott, Max Weber, Vilfredo Pareto,Elton Mayo & F J Roethilisberger

Systems theory

Chester Bernard Modern management thought

Peter F Drucker, W Edwards Deming, Laurence Peter, WilliamOuchi, Thomas Peters and Robert Waterman


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Frederick Taylor & Scientific

Management

Fundamental principles that Taylor saw underlying scientific

management:

Replacing rules of thumb with science (organized knowledge)

Obtaining harmony, rather than discord, in group action

Achieving cooperation of human beings, rather than restricted

output

Developing all workers to the fullest extent possible for their own

and their companys highest prosperity.


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Henri Fayols 14 Principles of

Management Division of labour

Authority

Discipline

Unity of Command

Unity of Direction Subordination of Individual Interest to Common Good

Remuneration

Centralization

The Hierarchy

Order Equity

Stability of staff

Initiative

Esprit de Corps


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Elton Mayo & F J Roethlisberger

The Hawthorne studies


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Patterns of Management Analysis

The Managerial Roles Approach

Interpersonal roles

Informational roles

Decision roles

The Management Process or Operational Approach

Draws together the pertinent knowledge of management by relating

it to the managerial job.


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The Systems Approach to the

Management Process

Inputs and claimants

The managerial transformation process

The communication system

External variables

Outputs

Reenergizing the system


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The Functions of Managers

Planning Selecting missions and objectives as well as the actions to achieve them,

which requires decision making

Organizing Establishing an intentional structure of roles for people to fill in an

organization Staffing

Filling and keeping filled, the positions in the organization structure

Leading Influencing people so that they will contribute to organizational and group

roles Controlling

Measuring and correcting individual and organizational performance toensure that events conform to plans

Principles Of Management Chapter 1 GTU MBA

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