principles of management pimsat

7/27/2019 Principles of Management PIMSAT

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PRINCIPLES

OF

MANAGEMENT


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Terminologies

Manage

Manager

Management

Administration Principles (of Management)

Principles of Management


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Definition of Management

Management is the process of designingand maintaining an environment in which

individuals, working together in groups,

efficiently accomplish selected aims.


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Definition of Management

Management is the process of designingand maintaining an environment in which

individuals, working together in groups,

efficiently accomplish selected aims.


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Management as an Essential for Any

Organization

Managers are charged with the

responsibility of taking actions

that will make it possible forindividuals to make their best

contributions to group objectives.


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Nature and Purpose of Management

As managers, people carry out the managerialfunctions of planning, organizing, staffing ,

leading, and controlling.

Management applies to any kind of organization.

It applies to managers at all organizational levels.

The aim of all managers is the same: to create a

surplus.

Managing is concerned with productivity; thisimplies effectiveness and efficiency.


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Definition of An Organization

An organization is a group of people workingtogether to create a surplus.

In business organization this surplus is profit.

In non-profit organization i.e. CharitableOrganizations, it may be satisfaction of needs.

Universities create a surplus through generation

and dissemination of knowledge as well as

providing services to the community or society


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The Functions of Management

1. Five Managerial Functions

Planning

Organizing

Staffing

Leading

Controlling2. The Concepts, Principles, Theory and Techniques of

Management are Grouped into these five functions.


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Strategic Managers

Tactical Managers

Operational Managers

Levels of management


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Strategic Managers

The firms senior executives with overall

responsibility for the firm.

Developing the companys goals

Focus on long-term issuesEmphasize the growth and overall effectiveness of the

organization

Concerned primarily with the interaction betweenthe organization and its external environment.


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Tactical Managers

Responsible for translating the general

goals and plans developed by strategic

managers into specific objectives and

activities.

Shorter time horizon

Coordination of resources

These are middle managers


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Operational Managers

Lower-level managers who supervise the

operations of the organization.

Directly involved with non-managementemployees

Implementing the specific plans developed with tactical

managers.

This is a critical role to the organization.

Operational managers are the link between management

and non-management staff


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Management Functions

Planning Organizing

Leading Controlling

McGraw-Hill 2004 The McGraw-Hill Companies, Inc. All rights reserved.


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Planning

The management function that assesses the

management environment to set future objectives

and map out activities necessary to achieve those

objectives.

To be effective, the objectives of individuals, teams,

and management should be coordinated to support

the firms mission.


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Organizing

The management function that

determines how the firms human,

financial, physical, informational,

and technical resources arearranged and coordinated to

perform tasks to achieve desired

goals.

The deployment of resources to

achieve strategic goals.


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Leading

The management function that energizes people tocontribute their best individually and in cooperationwith other people.

This involves:

Clearly communicating organizational goals

Inspiring and motivating employees

Providing an example for others to followGuiding others

Creating conditions that encourage management

of diversity


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Controlling

The management function that measures

performance, compares it to objectives,

implements necessary changes, and monitors

progress.

Many of these issues involve feedback or

identifying potential problems and taking

corrective action.


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Management as a set of roles

Day-to-day management activities are routine,orderly, and rational.

These include:

Interpersonal roles - communication with superiors,peers, subordinates, and people from outside theorganization.

Information Roles - obtaining, interpreting, and giving

out information.

Decisional Roles - choosing amongcompetingalternatives.


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Management as a set of skills

The four basic management functions require a set

of skills to be carried out properly.

Because most managerial tasks are unique,ambiguous, and situation-specific, there is seldom

one best way to approach them.


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Four major categories of skills will help you become a goodmanager:

Strategic Skills- the ability to see the big picture, focus on key

objectives without getting mired in details, and having a sense

what is happening inside and outside the company. Task-Related Skills- the ability to define the best approach to

accomplish personal and organizational objectives. They include

consideration of all resources, including time, organizational

structure, financial resources, and people. They also involve the

ability to prioritize, remain flexible to make necessary changes,and ensure that value is being created


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People-Related Skills - getting work done through others and

with others. Include the ability to delegate tasks, share

information, resolve conflicts, be a team player, and work

with people from very different backgrounds

Self-Awareness Skills- Being aware of your personal

characteristics can help you adapt to others and can help

you understand why you react to them the way you do.

These skills can help you to avoid rushed judgments,

appreciate the nuances of particular situations, size upopportunities, capitalize on your personal strengths, and

avoid situations in which you are likely to fail.


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Skills for Managerial Success

Strategic Skills

Environmental assessment

scanning

Strategy formulation

Mapping strategic intent and

defining mission

Strategy implementation

Human resource congruency

Task Skills

Setting and prioritizingobjectives

Developing plan of action and

implementation Responding in a flexible

manner

Creating value

Working through the

organizational structure

Allocating human resources

Managing time efficiently


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Skills for Managerial Success (continued)

People Skills

Delegating

Influencing

Motivating

Handling conflict Win-win negotiating

Networking

Communicating

Verbal

Nonverbal Listening

Cross-cultural management

Heterogeneous teamwork

Self-Awareness Skills

Personal adaptability

Understanding personal biases

Internal locus of control


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The Operational Perspective

Scientific ManagementFrederick W. Taylor

Quantitative ManagementFord W. Harris

Quality ManagementWalter A. Shewhart

Bureaucratic Management

Max Weber Administrative ManagementHenri Fayol


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Taylors Four Principles of Scientific Management

1. Scientifically study each part of a task and develop thebest method of performing the task.

2. Carefully select workers and train them to perform the

task by using the scientifically developed method.

3. Cooperate fully with workers to ensure that they usethe proper method.

4. Divide work and responsibility so that management isresponsible for planning work methods using scientificprinciples and workers are responsible for executingthe work accordingly.


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Key Characteristics of Webers Ideal

Bureaucracy

Specialization of labor

Formal rules and procedures

Impersonality

Well-defined hierarchy

Career advancement based on merit


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Fayols 14 Principles of Management

Division of work

Authority

Discipline

Unity of command

Unity of direction

Subordination of

individual interest to the

general interest

Remuneration

Centralization

Scalar chain (A system wherebyauthority passes down from the top through

a series of executive positions or military

ranks in which each is accountable to the one

directly superior)

Order

Equity

Stability and tenure

Initiative

Esprit de corps (A commonspirit of comradeship, enthusiasm, and

devotion to a cause among the

members of a group)


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Behavioral Perspective

The behavioral perspective acknowledges that

psychological and social processes of human behavior

can result in improvements in productivity and work

satisfaction.

The Hawthorne effect - when a manager shows concern for

employees, their motivation and productivity levels are likely to

improve.

Human Relations Approach - the relationship between

employees and a supervisor is a vital aspect of management.

Employee motivation

Leadership style


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Physical Needs

Need for Security

Need for Social Relations

Need for Self Esteem

Self-Actualization

Maslows Hierarchy of

Needs


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McGregors Theory X and Theory Y

Leaders and managers who hold Theory Xassumptions believe that employees are inherentlylazy and lack ambition.

A negative perspective on human behavior.

Leaders and managers who hold Theory Yassumptions believe that most employees do not

dislike work and want to make useful contributionsto the organization.

A positive perspective on human behavior.


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Contemporary Management Perspectives

Systems Theory

Contingency Theory

The Learning Organization Perspective


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Systems Theory

Views the organization as a system of interrelatedparts that function in a holistic way to achieve acommon purpose.

Systems theory concepts that affect managementthinking:

Open and closed systems

Subsystems

Synergy

Equifinality


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Contingency Theory

States that there is no one best way to manage an

organization.

Because what works for one organization may not work for

another

Situational characteristics (contingencies) differ

Managers need to understand the key contingencies that

determine the most effective management practicesin a given situation


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The Learning Organization

The management approach based on an

organization anticipating change faster than its

counterparts to have an advantage in the market

over its competitors.

There are two ways organizations can learn:

Experimental learning

External learning

McGraw-Hill


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