03-01-2025

BMGT101L - Principles of Management

Dr. Kannan C
SMEC, VIT

Course Objectives

1. To provide knowledge on management key

concepts, evaluation of management thoughts and
theories.

2. To understand the various functions of

management and framework.

3. To gain a holistic understanding of the

multidisciplinary nature of management for
effective functioning.

1
 03-01-2025

Course Outcomes
At the end of the course, the students will be able to

1. Understand the basic concepts of management.

2. Analyse the environmental factors that affect the

organisation and its growth.

3. Identify and apply appropriate techniques to

manage an organisation.

4. Critically analyse the problem in each function of

the management.

5. Ascertain the role of technologies in management.

Syllabus
Module 1: Management

Management - nature and purpose, evolution of management

concept, approaches to management process, functions and roles
of management, influence of external and internal environment
on decision making, factors affecting social responsibility and
sustainability, and ethical business management.

Module 2: Planning

Types of plans, steps in planning, strategic planning process,

SWOT matrix, portfolio matrix, Porter’s industry analysis and
generic competitive strategies, decision making – importance of
decision making, development of alternatives and evaluation of
alternatives, and decision making under certainty, uncertainty
and risk.

2
 03-01-2025

Syllabus
Module 3: Organizing

Formal and informal organization, organizational levels and span

of management, organization reengineering, structure and
process of organizing, departmentation, matrix organization,
strategic business units, virtual organization, line and staff
authority, decentralization and delegation of authority, and
organization culture.

Module 4: Staffing

Overview to staffing functions, factors affecting staffing,

position requirements, job design, job description, selection
process and techniques, orientating new employees, performance
appraisal and career strategy - appraisal criteria, team
evaluation, rewards, and formulating career strategy, managerial
training and development, conflict management, managing
change and learning organization.

Syllabus
Module 5: Leading

Understanding motivation, motivation theories, leadership traits,

styles, and types, committees, groups, and team decision-
making, communication purpose, communication process, and
barriers to effective communication.

Module 6: Controlling

Basic control process, critical control points, standards and

benchmarking, real-time information and control, feedforward or
preventive control, control of overall performance, profit and loss
control, control through ROI, management audits - balanced
scorecard, bureaucratic and clan control, and control techniques
and information technology.

3
 03-01-2025

Syllabus

Module 7: Managing Operations and Technology

Operations management and corporate strategy, value chain

management, role of technology in modern management
practices, virtual organization and its structure, online business
management, applications of digital technology, e-commerce, m-
commerce, social media, and artificial intelligence in business
management, and challenges to modern management practices.

Module 8: Contemporary Issues

Textbook

1. Harold Koontz and Heinz Weihrich, Essentials of Management:

An International and Leadership Perspective, 2020, 11th edition,
McGraw-Hill, India.

Reference Books

1. Stephen P. Robbins, Mary Coulter and Agna Fernandez,

Fundamentals of Management, 2019, 14th Edition, Pearson
Education, India.

2. Robert N. Lussier, Management Fundamentals: Concepts,

Applications, & Skill Development, 9th Edition, 2020, Sage
Publications, USA

3. Pravin Durai, Principles of Management – Texts and Cases,

2019, 2nd Edition, Pearson Education, India.

4
 03-01-2025

Mode of Evaluation

o CAT 1 – 50 marks
o CAT 2 – 50 marks
o FAT – 100 marks
o Digital Assignment 1 – 10 marks
o Digital Assignment 2 – 10 marks
o Quiz / Seminar Presentation – 10 marks

Significance of Subject
I . Tim1tnw,nog1tm1t1it
z. Ruourc,r olloc.otion

i . Iditntifying risks
2 . Crisis rnonogmitnt

Principles of
Management

1. BudgetfMII09C1Mnt
Z. Cort - Dcneflt onolysls
o Activities Involved
o Implementation of
Advanced Software

10

5
 03-01-2025

Significance of Subject …

"As individual contributors, engineers are good at

solving technical problems. However, they're often not
as strong at communicating the value of technology,
leveraging data science techniques to make evidence-
based decisions, or leading and inspiring teams of
diverse people with empathy and inclusiveness."

Fred Higgs, Executive Director of the Rice Center for

Engineering Leadership

Rice University # 151 in QS 2025 Ranking

11

Significance of Subject…
Management skills can help engineers overcome these universal
concerns. These skill sets are transferable and applicable in all
engineering industries, including mechanical, civil and
environmental, aerospace and aeronautical, chemical,
biomedical, industrial, and petroleum. An engineer with all-
encompassing management skills can see the bigger picture.
Engineers in leadership roles can identify and prioritise the
balance between safety, efficiency, and profit, ensuring a fully
rounded project. Engineering managers can connect the
technical operation of the technological product or service to its
economic outcomes, thereby seeing opportunities that others
cannot see.

12

6
 03-01-2025

Significance of Subject…
Engineering Manager Skills and Characteristics

1. Human skills: Leadership, accountability, innovation, emotional

intelligence, and motivation

2. Hybrid skills: Communication, problem-solving, and project

management

3. Technical skills: Operations, research, troubleshooting, and

integration

13

Module 1
 Management - nature and purpose
 Evolution of management concept
 Approaches to management process
 Functions and roles of management
 Influence of external & internal environment on decision-making
 Factors affecting social responsibility and sustainability
 Ethical business management.

14

7
 03-01-2025

Management - Nature and Purpose

Definition: Management is the process of

designing and maintaining an environment
(organization) in which individuals working
together in groups efficiently accomplish
selected aims.

Who does this process?

Manager!

Managers Carry out the managerial functions of

planning, organising, staffing, leading, and
controlling

Managing is concerned with productivity which

implies effectiveness and efficiency.

15

Functions of Management

lla i!i:\lii·\-a.~ iiihi-

Top management

Percent of job
Supervisors
Skhs very In impo,tance at different manageme:nl kMtts.

Roles & Responsibility of Managers:

Minimal time
Establish an environment for employees Achieve Goals Minimal resources

16

8
 03-01-2025

Nature of Management
Inter- Di sci pl inary Dynamic

Milnagemcnt drilws from It Is a continuously evolving

various fl•lds Ilk• practice thilt adapts to
economics, sociology. changes In th• business
psychol09Y, and environment, technology,
cnglnttrlng to aeatc • and soclml expectations.
comprchcnstvc approach
to soMng organlutional
problems..

Universal Goal - Orientated

The principles of miln~emcnt MaNigcmcnt focuses on

apply to all typn of organizations, achieving specific
regardless of their size, naiture, or organlz.atlonal goals effld•ntly
Industry. •nd •ff•ctiv•ly.

17

Purpose of Management

1. Achieve Organizational Goals

2. Optimal Utilization of Resources
3. Improve Efficiency
4. Adaptability
5. Foster Innovation
6. Maintain Stability

 3 M‘s in different contexts

 Failure cases of Nokia & Yahoo

18

9
 03-01-2025

Evolution of Management Concept

Frederick Winslow Taylor (1856-1915) - Father of
Scientific management
• Experiences as an apprentice common labourer for
men master mechanic and chief engineer of a steel
company
• 1911  “principles of scientific management “
Henry Fayol (1814-1925) - Father of modern
management theory  Introduced 14 principles of
management
Elton Mayo (1880- 1949) and F.J. Roethlisberger -
Studied the effect of illumination and other
conditions  Declared failure

19

Evolution of Management Concept …

Elton Mayo - Hawthorne effect - productivity
increased due to social factors such as morale,
satisfactory interpersonal relationships, sense of
belonging  interpersonal skills such as
motivation, counselling, leading, and
communicating.

Later Peter Drucker, Edward Deming, and Joseph M

Juran contributed to the modern management
theory.

20

10
 03-01-2025

Approaches to Management Process

1. Quantitative
2. System
3. Contingency

Quantitative approach - Uses quantitative techniques and

tools to support decision-making and problem-solving

a. Operations research: Applies mathematical and analytical

methods to address complex organizational problems.

Queuing theory, network analysis, and game theory: To

optimize resource allocation, logistics, decision-making
processes etc.

21

Approaches to Management Process …

b. Statistical methods: Helps organizations make informed
decisions, improve processes, and achieve their objectives.

Statistical process control (SPC) techniques such as control

charts, histograms, and Pareto analysis to monitor and
improve process performance.

Quality control tools like Six Sigma for manufacturing and

service processes.

Statistical sampling methods to inspect products and

services for quality assurance.

22

11
 03-01-2025

Approaches to Management Process …

Statl::tlc«l optiml:.cttion
t•chnl ◄ u•: To optimize inventory levels,
production planning, and supply
(linear progri::m,ming and
chain management
integer pro~ramming}

Stclti:tlc«I m•thod: To analyze employee performance

data, identify factors influencing
(regression analysis and productivity and job satisfaction,
correlation analysis) and malte informed HR decisions.

Stcltl::tic«l m•thod:
To analyze financial data, assess
(variance analysis and performance against benchmarks
ratio analysis) and Identify areas for improvement

To assess risk, model uncertain

Prob"blflty di:tribution:
outcomes, and ma~e investment
"""' :lmul«tio., tach.,l ◄ ua:
decisions.

23

Approaches to Management Process …

In overall, the statistical methods

 Enhance decision-making,

 Optimize processes,

 performance improvement,

 Improve competitiveness,

 Contribute to organizational success

c. Project Management:

Utilizes quantitative techniques to plan, schedule, and control

projects effectively. Critical Path Method (CPM), Program Evaluation
and Review Technique (PERT), and Project Management Software
facilitate project planning, resource allocation, and progress
tracking.

24

12
 03-01-2025

Approaches to Management Process …

ISystems Approach - Organizations are complex systems comprising
interconnected parts that interact with each other and their
environment. It is needed to understand the interdependencies and
relationships between different components of the organization

Key aspects of systems approach

a. Systems Thinking:

o View the organization as a whole rather than individual parts.

o Analysis of interactions between subsystems and how changes in

one part of the system can affect other parts.

o Promote a holistic understanding of organizational dynamics

o Identify leverage points for intervention.

25

Approaches to Management Process …

b. Systems Theory:

o Provides a theoretical framework for understanding complex

organizations as systems with interconnected components.

o It identifies key concepts such as inputs, processes, outputs,

feedback loops, and boundaries.

o Used to analyze the organization's structure, processes, and

relationships with its environment.

c. Open Systems Perspective:

Open systems theory emphasizes that organizations are open to

their environment, constantly exchanging inputs, outputs, and
feedback with the external environment. Managers focus on
adapting to environmental changes, managing stakeholders, and
aligning organizational goals with external demands. It highlights
the importance of environmental scanning, strategic planning, and
organizational flexibility.

26

13
 03-01-2025

Approaches to Management Process …

Contingency approach

o Recognizes the complexity and variability of organizational

environments.

o Emphasizes the importance of tailoring management practices to

fit the specific situation.

o By adopting a contingency perspective, managers can enhance

organizational performance, promote adaptability, and respond
effectively to changing conditions.

27

Approaches to Management Process …

Overall, the quantitative approach to management provides
managers with valuable tools and techniques to

Analyze data,

Optimize processes,

Make data-driven decisions,

Improve organizational performance and competitiveness.

28

14
 03-01-2025

Functions and Roles of Management

29

Functions and Roles of Management

1. Planning

involves setting objectives and determining the best course of

action to achieve them

― Setting goals aligned with the organization’s vision & mission

― Identifying resources and constraints

― Developing strategies, policies & procedures

― Formulating action plans

― Choosing from alternatives

30

15
 03-01-2025

Functions and Roles of Management …

2. Organizing:

Arranging resources and tasks to implement the plan efficiently.

 To organize a business, personnel + raw materials + tools +

capital etc. are needed

― Assign tasks and responsibilities.

― Group similar activities into departments.

― Allocate resources (e.g., human, financial, physical).

― Establish a clear chain of command and authority structure.

31

Functions and Roles of Management …

3. Staffing:

Ensures the right people are in the right jobs to achieve

organizational goals

― Recruitment, selection, and hiring.

― Training and development of employees.

― Appraising performance and promotions.

,. ,.,.,.,
~
~
hlpe,son

• •l\ ••••
(or1hengh1job '

― Ensuring a healthy work culture and employee satisfaction.

32

16
 03-01-2025

Functions and Roles of Management …

4. Leading

 involves guiding, motivating, and influencing employees to

work towards organizational objectives

― Effective communication.

― Motivation techniques (e.g., rewards, recognition).

― Leadership styles (e.g., transformational, transactional).

― Building teams and resolving conflicts.

"A great leader does not blame his team when

failure occurs. Instead, he takes the responsibility
and gives the credit to the team when success
comes."

33

Functions and Roles of Management …

5. Controlling

 Controlling ensures actual performance aligns with the

planned goals.

― Set performance standards.

― Measure actual performance.

― Compare performance with standards.

― Take corrective actions where necessary.

34

17
 03-01-2025

Functions and Roles of Management …

Co-ordinating

 Essence of managership

o To achieve harmony among individual

o Efforts towards the accomplishment of group goals

o Each managerial function is an exercise contributing to

coordination

35

Influence of External and Internal Environment on

Decision-Making
External Environment:
1. Market Conditions:

Market trends, customer preferences, and competitor actions can

influence strategic decisions regarding product development, pricing,
and marketing strategies.

For example, changes in consumer demand may prompt

organizations to introduce new products or modify existing ones to
remain competitive. E.g.. Organic food products, Millet etc.

2. Economic Factors:

Economic conditions such as inflation rates, interest rates, and GDP

growth can impact decisions related to budgeting, investment, and
expansion plans.

During economic downturns, organizations may prioritize cost-

cutting measures and focus on improving operational efficiency.

36

18
 03-01-2025

Influence of External and Internal Environment on

Decision-Making …
3. Legal and Regulatory Environment:

Laws, regulations, and government policies can affect decision-

making in areas such as compliance, risk management, and product
safety. E.g. BS-1,2,…6 etc.

Organizations must ensure that their decisions align with legal

requirements and industry standards to avoid potential legal issues
and penalties.

4. Technological Changes:

Advances in technology can create opportunities for innovation and

efficiency improvements but may also pose challenges related to
cybersecurity, data privacy, and workforce skills. Organizations need
to assess the potential impact of technology on their operations and
make decisions about adopting new technologies.

37

Influence of External and Internal Environment on

Decision-Making …
5. Social and Cultural Factors:

Societal trends, cultural norms, and demographic shifts can influence

decisions related to corporate social responsibility, diversity and
inclusion initiatives, and marketing campaigns.

Organizations must consider the values and preferences of their

stakeholders, including customers, employees, and the community
when making decisions.

Internal Environment:

1. Organizational Culture:

The values, norms, and beliefs prevalent within an organization can

shape decision-making processes and outcomes. A supportive and
collaborative culture may foster creativity and innovation, whereas
a culture of risk aversion may inhibit experimentation and initiative.
Eg: Netflix employees are given freedom (and authority) to make
decisions

38

19
 03-01-2025

Influence of External and Internal Environment on

Decision-Making …
2. Leadership Style:

The leadership style of top management can influence decision-

making processes and organizational culture.

Autocratic leaders may make decisions unilaterally, while

participative leaders involve employees in the decision-making
process, fostering a sense of ownership and commitment.

3. Organizational Structure:

The organizational structure, including the hierarchy of authority,

division of tasks, and communication channels, can impact decision-
making processes.

Centralized structures may facilitate faster decision-making but

may limit flexibility, whereas decentralized structures allow for
greater autonomy but may lead to coordination challenges.

39

Influence of External and Internal Environment on

Decision-Making …
4. Available Resources:

The availability of financial, human, and technological resources can

constrain or enable decision-making.

Organizations with limited resources may need to prioritize

investments and allocate resources strategically to achieve their
goals.

5. Past Experience and Learning:

Past experiences, successes, and failures can influence decision-

making by shaping managers' perceptions, attitudes, and risk
tolerance.

Learning from past decisions and feedback can help organizations

improve decision-making processes and avoid repeating mistakes.

40

20
 03-01-2025

Types of social Responsibility of business

To Shareholders

To Employees

Towards Consumers

Towards Community

41

Corporate Social Responsibility (CSR)

Corporate social responsibility (CSR)

is a business model that helps
~ ,:;> companies be accountable to their
t®
GOAi.
::r.~= a
.::!J CORPORATE ~ HARK£T
community,
themselves.
stakeholders, and

t@t SOCIAL JJ CSR is a broad concept that

":::/~RESPONSIBILITY~ (®

-
describes a company’s commitment
AESOOliC£5 ~ , .... to ethical business practices.
I' - \ _
~J ~
• RCSPCINSIBruT'Y

This means considering positive

SUSTAINABtl/TY CTHICS impact on social, economic, and
environmental impacts and human
rights.

42

21
 03-01-2025

(~), SUSTAINABLE
~ DEVELOPMENT
G~"~ALS
~,.,;ii -\

43

Factors affecting social responsibility …

Ethical responsibility: Core pillar of CSR.

Companies often set their standards, but
external forces, client demands, and
company culture may shape ethical goals.
1111
Economic responsibility:

o Shareholders demand a reasonable return

on their investment. Employees also want
safe and fairly-paid jobs.
11111
Environmental:

oExert control over resources and provide

goods to consumers. 0
mfl
44

22
 03-01-2025

Factors affecting social responsibility…

Political Influences:

Political concerns may affect the social

responsibility. Businesses must be aware of
their political context and tailor their CSR
initiatives appropriately.

Transparency:

Companies that prioritise transparency in

their social responsibility efforts build trust
with their customers and employees

Top Management:
• T
Implementation advantages when it comes
from the top.

45

Factors affecting social responsibility

Society Factors:

o Suppose a very resourceful company is established nearby

a very poor locality so they will expect different types of
social responsibilities such as education, health, etc

Government and Laws:

o Government controls and laws are important factors

determining what you can do and what not

Competitors:

o When others become more active with society and it

produces positive results, others also have to follow the
same. Sometimes competitors expose each other.

46

23
 03-01-2025

Factors affecting social responsibility …

Ethics Driven Companies:

Some companies may have rule-based ethical decision-

making top bodies. Eg. SAP : No mails after office hours/
holidays. No Performance Evaluation etc.
o Employee rating: 4.2 / 5

47

Factors affecting social responsibility …

Other factors that affect a business's social responsibility

include:
o Market forces
o Government intervention
o Emergence of professional managers
o Growth of trade unions
o Public scrutiny

48

24
 03-01-2025

Factors affecting social responsibility and

sustainability …
o Sustainability means meeting our
own needs without compromising
the ability of future generations
to meet their own needs.
o Sustainability in business refers
to a company's strategy to reduce
the negative environmental
impact of their
operations. Sustainability is not
just environmentalism.
Sustainability practices are
usually related to environmental,
social, and economic aspects.

49

Factors affecting sustainability

Environment:
• Neglecting one of the environmental areas can
jeopardize the future of all businesses.
• Environmental factors can help reduce carbon footprints,
water usage & packing waste.

Economic :
• Economic sustainability is one of the three pillars of
sustainability.
• It focuses on ensuring that economic growth and
development occur in a sustainable manner in the long
run.

50

25
 03-01-2025

Factors affecting sustainability …

Technology:
• Technology is arguably the biggest driver behind
corporate sustainability efforts. It can help reduce the
amount of corporate waste and lessen a company's
carbon footprint.
• Eg. Solar Panels for electricity generation
Management:
• Effective management contributes to the overall
success and sustainability of the organization.
• Management is responsible for guiding and overseeing
the organization's activities to achieve its goals.

51

Factors affecting sustainability …

Law:
• Law is a necessary part of the solution to sustainability
challenges.
• To achieve sustainability goals, appropriate and well-
implemented legal frameworks and tools must be in
place.

Other factors that affect sustainability include:

• Government tax incentives
• Funding
• Attracting investors
• Saving money
• Improving long term viability

52

26
 03-01-2025

Ethical business management

• Also said as ethical management, it is a dynamic and ongoing

process that must adapt to the changing internal and external
context of the organization (i.e., stakeholders, technological
advancement, globalisation, regulatory compliance, long term
trust & reputation, continuous improvement)
• Ethical management is the process of accounting for morals
while overseeing an organization. This practice allows
managers to prioritize the well-being of employees, customers
and the community while considering the company's bottom
line.
• By adhering to the company's core values and making
challenging decisions on a case-by-case basis, an ethical
management team promotes principles like honesty and
fairness.

53

Benefits of ethical management in business

Ethical management in business can:
• Promote Productivity
• Create positive Reputation for the company
• Facilitate community well-being

54

27