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MODULE1MGT

This document provides an overview of a management principles and functions course syllabus. It is divided into 4 modules over 45 lectures. Module I covers basic concepts of management including definitions of managers and management, levels of management, and managerial skills. It also discusses the evolution of management approaches including classical, neo-classical, quantitative, and contemporary. Module II will cover planning, Module III organizing, and Module IV directing and controlling. The document lists reference books and provides details on some topics that will be covered in Module I such as the functions of management proposed by Henri Fayol.

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0% found this document useful (0 votes)
22 views61 pages

MODULE1MGT

This document provides an overview of a management principles and functions course syllabus. It is divided into 4 modules over 45 lectures. Module I covers basic concepts of management including definitions of managers and management, levels of management, and managerial skills. It also discusses the evolution of management approaches including classical, neo-classical, quantitative, and contemporary. Module II will cover planning, Module III organizing, and Module IV directing and controlling. The document lists reference books and provides details on some topics that will be covered in Module I such as the functions of management proposed by Henri Fayol.

Uploaded by

mahindedhia7
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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MANAGEMENT:

PRINCIPLES &
FUNCTIONS
SEMESTER III
SYLLABUS
MODUL MODULE TITLE NO. OF
E LECTURES
I INTRODUCTION TO 12
MANAGEMENT
II PLANNING & DECISION MAKING 10

III ORGANISING 11

IV DIRECTING & CONTROLLING 12

TOTAL 45
Reference books
• Essentials of Management – Koontz & Weihrich
• Management – Robbins, Coulter & Vohra
• Management Theory & Practices – C. B. Gupta
• Principles of Management – Neeru Vasishth and Vibhuti Vasishth
• Principles and Practices of Management – L. M. Prasad
• Principles of Management – Tripathi & Reddy
Module I: Introduction to Management
BASIC CONCEPTS

• Who are managers?


• What is Management?
• What do Managers do?
Who are Managers?

Definitions
• Robbins and others defines” a manager is someone who coordinates and
oversees the work of other people so that the organizational goals can be
accomplished.”

• Management is what managers do.


Meaning

• A manager is one who contributes to the organizational goals indirectly


by directing the efforts of others but not by performing the task himself.
• Organizations need managers: good and great managers, who can
1. Set actions and plan to achieve those goals
2. Organize and arrange the things
3. Lead and motivate others to achieve those goals
4. Evaluate and control and change the things if necessary
What is Management?
• Mary Parker defines management as “ an art of getting things done from
others”
• George Terry defines management as “a distinct process of planning,
organizing, actuating (influencing) and controlling, performed to determine
and accomplish the objectives by use of people and resources.”
• Henri Fayol, “ to manage is to forecast, to plan, to organize, to command, to
coordinate and to control.”
• John Mee defines,” Management as the art of securing maximum results with
minimum efforts so as to secure maximum prosperity and happiness for both
the employer as well as the employee and give public the best possible
service.”
Nature
• A process and Features of Management
• A social process
• Goal Oriented
• Needed at all levels
• All pervasive (Needed in all walks of life)
• Multi-disciplinary
• Continuous and dynamic
• Intangible
• A combination or art and science
• A profession
Significance/ Benefits/ Importance of
Management
• Optimum utilization of resources
• Discipline at work
• Raises efficiency, productivity & profitability
• Helps in establishing cordial relationship with the human resource
• Enhances corporate image
• Enhances comparative strength
• Provides vision
• Smooth expansion and diversification of business
• Improves well being of the society
Levels Of Management

• Top Level Management


• Middle Level Management
• Lower/ First-line/ Supervisory
Management
Management Skills
Robert Katz: 3 Basic skills

1. Technical Skills

2. Human Skills

3. Conceptual & Design Skills


Technical Skills

• An ability to use processes, systems, tools and techniques


• Job specific knowledge and techniques needed to efficiently
perform the given task

• E.g. operating a machine or a computer, preparing an accounts


statement; etc.

• Technical skills are more required at lower/ supervisory level.


Human Skills

Interpersonal skills: An ability to work with people, individually and


in a group. It includes

• Communication Skills: An ability to talk, listen and understand.


It also includes presentation skill.

• Leadership Skills: An ability to lead, guide, influence and


motivate others. It also includes negotiation skills and ability to
understand the problem and resolve it.
It is essential at all levels of Management.
Conceptual Skills
• An ability to think and conceptualize the complex situations
• An ability to visualise and understand the future.
• Prepare the long term plans and strategies
• To diagnose problems and suggest solutions
• An ability to identify the opportunity and manage challenges and
changes

• Essential at top level


Managerial Skills at different levels of
Management
Administrative/ Organisational Skills

• An ability to arrange the resources, implement the plans &


decisions, coordinate the diverse activities, monitor and regulate
the work.

• More essential at middle and lower level


Managerial Roles
By Henry Mintzberg

• Interpersonal Roles
• Informational Roles
• Decisional Roles
Interpersonal Roles (Relation roles)

• It involves people and duties that are symbolic and ceremonial in nature
1. As Figurehead: Performing ceremonial duties, such as breaking the
coconut.

2. As Leader: Leading the subordinates by influencing, guiding and


motivating them.

3. As a Liaison Officer: Maintaining relations with insiders as well as


outsiders.
Informational Roles

• It involves collecting, receiving and disseminating (distributing) information.


1. As Monitor: The work of collection of information

2. As Disseminator: To supply information to those who need it.

3. As Spokesperson: represent the organisation and speak to outsiders and the


media.
Decisional Roles

• It involves making decision or choices


1. As Entrepreneur: Invest by starting and raising funds

2. As Disturbance Handler: Handles the troubles and brings peace to the


organisation.

3. As Resources Allocator: Provides the resources to different heads or staff.

4. As Negotiator: To enter into negotiation or contractual obligation with


suppliers, creditors, union leaders; etc.
Evolution of Management

1. The Classical Approach (Scientific management, Administrative theory,


Bureaucratic Management)

2. The Neo- Classical or Behavioural Approach (Human relation,


Behavioural)

3. The Quantitative Approach

4. The Contemporary Approach


The Classical Approach

• Classical management theory is based on the belief that workers only have
physical and economic needs.

• It does not take into account social needs or job satisfaction, but instead
advocates a specialization of labor, centralized leadership and
decision-making, and profit maximization.

• Developed through 3 main streams namely


1. Scientific Management : F.W. Taylor

2. Administrative Theory or Functional Theory : Henry Fayol

3. Bureaucratic Management : Max Weber


Scientific Management

• Studies management from technical viewpoint to improve efficiency through


men-machine relationship

• Main Contributors: F. W. Taylor, Harrington Emerson, Henry Gantt, Frank


Gilberth and Lillan Gilberth, etc;
Elements/ Tools of Scientific Management

• Separation of Planning and Doing (Division of Work)


• Time and Motion Study
• Standardization (Use of standard tools and techniques)
• Scientific Recruitment (Selection) and Training
• Financial Incentives (Differential Wage Payments)
• Economy (Use of control techniques to control Wastage)
• Mental Revolution (From Conflict to Cooperation)
Principles of Scientific Management
• Principle of scientific study of task: Replace the rule-of-thumb method with
the Work Study and other similar studies.

• Principle of Scientific Recruitment and training: Scientific selection,


training & development of employees

• Principle of instruction & supervision: Instructions to each worker and


supervision on performance of task.

• Principle of Division of work: Divide your work between managers and


workers, so that the managers concentrate on planning the work and the
workers concentrate on execution.
Administrative Theory/ Functional Theory

• The theory is focused on principles that could be used by


managers to coordinate the internal activities of organisations.

• The most prominent theory of administrative theorists was Henri


Fayol.

• He believed that organisational managerial practices are important


for driving predictability and efficiency in organisations.
Functions of Management

Henri Fayol proposed 5 functions of management.

• Planning (Module II)


• Organising (Module III)
• Commanding (Module IV)
• Coordinating
• Controlling (Module IV)
14 Principles of Henri Fayol
• Division of Work
• Centralisation
• Authority and Responsibility
• Scalar Chain
• Discipline
• Equity
• Unity of Command
• Order
• Unity of Direction
• Stability of tenure of Personnel
• Subordination of Individual
Interest to General Interest • Initiative
• Remuneration • Esprit De Corps
Division Of Work

• The specialisation of the work force according


to the skills of a person, creating specific
personal and professional development within
the labour force and therefore increase
productivity.

• Leads to specialisation which increases the


efficiency of the labour.
Authority and Responsibility

• Authority means the right of a superior to


give enhance order to his subordinates;
responsibility means obligation to
perform.

• The principle suggest that there must be


parity between authority and
responsibility.

• They co-exist and go together.


Discipline

• Discipline refers to obedience, proper


conduct in relation to others, respect of
authority, etc;

• It is essential for the smooth functioning


of all organisations.

• This will also help shape the culture


inside the organisation.
Unity of Command

• This principle states that every subordinate


should receive orders and be accountable
to one and one superior.

• If employees receives orders from more


than one superior; it is likely to create
confusion and conflict.

• It also makes easy to fix responsibilities.


• The workers should receive orders from
only one manager.
Unity of Direction

• All those working in the same line of activity must


understand and pursue the same objectives.

• All related activities should be put under one group


and there should be one plan of action and under
control of one manager.

• The entire organisation should be moving towards


a common objective in a common direction.
Subordination of Individual Interest to General
Interest
• The management should put aside
personal consideration and put
companies objectives first.

• Therefore the interest of the goals of


the organisation must prevail over the
personal interests of individuals.

• The interest of one person should not


take priority over the interest of the
organisation as a whole.
Remuneration
• It includes payment of fair wages to
motivate employees.
• Workers must be paid sufficiently as this is
the chief motivation of the employees and
therefore, greatly influences the
productivity.
• The quantum and methods of remuneration
payable should be fair, reasonable and
rewarding of effort.
• Workers rate of pay is subject to several
variables such as cost of living, general
business condition.
Centralization

• Centralization implies the


concentration of decision making at
the top management.

• Sharing of authority with the lower


level is called decentralization.

• The organization should strive to


achieve a proper balance
Scalar Chain
• Scalar Chain refers to the chain of superiors
ranging from top management to lower rank.

• The principle suggests that there should be a clear


line of authority from top to bottom linking all
managers at all levels

• It is considered a chain of command


• It involves a concept called Gang Plank
• Using Gang Plank a subordinate may contact a
superior or his superior in case of emergency,
defying the hierarchy of control.

• However the immediate superior must be informed


about the matter
Equity

• Employees must be treated kindly, and


justice must be enacted to ensure a just
workplace.

• Managers should be fair and impartial


when dealing with employees.

• Management should give equal attention


towards all employees.
Order
• The systematic, orderly and proper
arrangement of people, places and things

• Social order ensures the fluid operation


of a company through authoritative
procedure.

• Material order ensures safety and


efficiency in the workplace.

• Order should be acceptable and under the


rules of the company.
Stability of tenure of Personnel

• The period of service should not be too


short and employees should not be
moved from positions frequently.

• An employee cannot render useful


service if he is removed before he
becomes accustomed to the work
assigned to him.
Initiative
• Using the initiative of employees can
add strength and new ideas to an
organization.

• Initiative on the part of employees is a


source of strength for organization
because it provides new and better
ideas.

• Employees are likely to take greater


interest in the functioning of the
organization.
Esprit De Corps

•This refers to the need of the


managers to ensure and develop
morale in the workplace;
individually and communally.

•Team spirit helps develop an


atmosphere of mutual trust and
understanding.
Bureaucratic Management

Its main emphasis is on…

• Formal & uniform rules & procedures


• Hierarchy of authority
• Specialization, Career advancement on merit, etc.
In India, the entire Government machinery works on Bureaucratic Structure
which at times, is ‘too much rigid & time consuming’ due to ‘Red Tapism.’ It
results into a lot of delays
The Neo Classical Approach

•Early contributors: Elton Mayo, Mary Parker, Robert


Owen, Chester Barnard, Hugo Munsterberg, etc.

•Classical approach focuses on JOBS whereas this


approach focuses on PEOPLE performing the jobs

•Elton Mayo’s Hawthorne Experiments proved that the


Jobholder is more important than the Job
Human Relations Approach
• The Hawthorne Experiments revealed that productivity could be increased not
only by improving the lighting levels i.e. physical conditions but through
informal social relations among the members of the work-group

• A factory or an office is not only a work place but also a place for social
interaction

• A concept of ‘Social Man’ was introduced


• The Hawthorne studies discovered that workers were highly responsive to
additional attention given by their managers.

• It created the feeling that their managers actually cared about, and were
interested in their work

• The studies also found that although financial motives are important, social
issues are equally important factors in worker’s productivity
Hawthorne Theory
• The Hawthorne studies included a series of investigations by Elton Mayo &
Fritz Roethlisberger
• It emphasized on the socio-psychological aspects of human behavior in
organizations.
• They were conducted in the 1920s at the Hawthorne plant of the Western
Electric Company
• The hypothesis of research was that if workers are given a choice in choosing
their co-workers, everyone works together as a group, everyone is treated
special, and everyone is supervised by a sympathetic supervisor, the
productivity of workers will increase
• Its key finding ‘fulfilling workers’ desires to work as a group and feel
included in decision making was more important than the monetary incentives
combined with good working conditions
• The studies originally looked into whether workers were more responsive
and worked more efficiently under certain environmental conditions,
such as improved lighting

• Mayo and Roethlisberger found that workers were more responsive to


social factors—such as the people they worked with on a team and the
amount of interest their manager had in their work—than the factors of
lighting,

• These studies discovered that workers were highly responsive to


additional attention from their managers and the feeling that their
managers actually cared about, and were interested in, their work

• The studies also found that although financial motives are important,
social issues are equally important factors in worker productivity
Behavioural Approach

• It is based on Psychology, Sociology and Anthropology


• This approach led to the study of “Organizational Behaviour” that
involves the study of attitudes and behaviour of groups

• Contributors include Maslow, Davis, McGregor, Herzberg, Rensis


Likert, Kurt Lewin, Chris Argyris, etc.

• Motivation, leadership, communication, group dynamics and


participative management are the core aspects
The Quantitative Approach
• Also known as Mathematical or Operations Research Theory.
• Main contributors: Simon, Newman, James March, etc.
• Main aspects:
• Management involves decision making after evaluating various
alternatives

• Use of mathematical models to evaluate the alternatives


• Evolved from Mathematical & Statistical solutions developed for military
problems during World War II
Quantitative Approach includes
• Use of Mathematics and Operations Research in Planning,
Decision Making and Controlling to achieve precision
• Linear Programming to improve resource allocation decisions
• Queuing Theory to reduce customers’ queues and serve them
faster
• Inventory Modeling for better inventory management
• MIS for better information to management
• PERT and CPM for timely completion of projects and avoiding
cost over-runs
The Contemporary Approach

• Early approaches focused on ‘inside view’ of the organisation


• In 1960s, management experts began to look at the ‘outside view’ i.e. the
external environment or what is happening outside the boundaries of the
organisation

• Two contemporary views emerged:


i) System Approach and

ii) ii) Contingency Approach


Systems Approach

• A System is a set of interrelated and interdependent parts arranged


in a manner that produces a unified whole
• It gets influenced by the external environment e.g. influence of
external forces
• Organisations need to adapt to their systems to survive and
succeed
• Main contributors: Kenneth Boulding, Ludwig Von, R. A.
Johnson, etc.
Contingency/Situational Approach

• Main contributors: Tom Burns, Paul Lawrence, G.W. Stalker


• This approach believes that organisations are different, they face
different situations and require different ways of managing

• There is no ‘single best way’ of managing in all situations


• Management or leadership is entirely situational, it depends upon a
given situation and it varies from situation to situation, at times, it
may be autocratic, at other times, it may be democratic or
participative
General Functions of Management
• Core Functions
• Planning
• Organising
• Leading
• Controlling
• Other Functions
• Staffing
• Coordinating
Coordination

• To coordinate means to
harmonise, to synchronise, to
match-up, to bring together,
etc.

• Henri Fayol, “ to coordinate is


to harmonise all the activities
of a concern (business
organisation) so as to facilitate
its working and its success.”
Nature/ Feature of Coordination

• Not a distinct/separate function but the very essence of


management

• Does not takes place automatically, it is a result of conscious


efforts

• Continuous and systematic process


• Mainly required in group efforts and not in individual efforts
• Present in all functions of management
Significance/ Benefits/ Importance of
Coordination
• It is the essence of management: Needed in all functions of Management
• Helps in reconcile/ unite goals of different departments/ people
• Brings unity and teamwork: Leads to better understanding and cooperation
• Minimises conflicts: Ensures smooth functioning
• Economy in operations: Higher efficiency
• Synergy: Compliments each function and brings higher benefits than the
individual effort

• Leads to Higher faster growth


Thank You

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