0% found this document useful (0 votes)
36 views25 pages

Principles of Business Management

Uploaded by

saanviyadav1000
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
36 views25 pages

Principles of Business Management

Uploaded by

saanviyadav1000
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 25

Principles of

Business
Management
Dr. Shilpa Joshi
Syllabus
•Management: Definition, Functions, Concept, Scope of Management, Nature of Management, Levels of
Management, Managerial Skills, Roles of a Manager, Difference between Management and Administration
•Evolution of Management Thoughts: Classical Approach- scientific management, Administrative
Management and Bureaucracy. Neo-Classical Approach- Human relations movement and Behavioural
approach. Modern Approach- Quantitative approach, Systems approach, and Contingency approach.
•Forms of organization – Sole Proprietorship, Partnership, Co-operative Organization, and Company.
•Functions of Management: Planning: Concept, Importance, Strategies, Planning Premises; Decision
making, Management by Objectives (MBO), Process of Planning. Organizing: Concept, Importance,
Process of Organizing, Types of Organizational Structures, Span of Management, Line and Staff
Relationship, Centralization and Decentralization. Staffing: Concept, Scope of Staffing, Manpower
Planning, Selection & Training, Performance Appraisal. Directing: Concept, Importance. Motivation:
Concept, Importance, Maslow’s Need Hierarchy theory, Leadership: Concept, Characteristics of Leadership,
and Leadership styles. Communication: Types, Process, Channels and Barriers of Communication.
Coordinating: Definition, Characteristics, Principles and Techniques of Coordination, Concept of
Managerial Effectiveness. Controlling: Concept, Importance, Process of Controlling, Management Control
Techniques, Effective Control Systems.
What is Management?

Management is the process of


planning, organizing, leading, and
controlling an organization’s human,
financial, material, and other resources
to increase its effectiveness.
CONCEPT OF MANAGEMENT

A. TRADITIONAL CONCEPT
• Management is the art of getting things done through others.
(Mary Parker Follett)
• A manager is one who accomplishes organizational objectives by directing the
efforts of others. (C.S. George)

B. MODERN CONCEPT
• Management is establishing an effective environment for people operating in
formal organizational group.
(koontz and op’donnel)
• Management is the co-ordination of all resources through the process of
Planning, Organizing, Directing and Controlling in order to attain stated objectives.
(F.W.
Taylor)
The Functions Of Management
Management
• process of working with people and resources to
accomplish organizational goals
effective – “Doing things right”
achieve organizational goals
efficient – “Doing the right things”
achieve goals with minimum waste of resources

1-5
What Managers
Do
Managers (or administrators)
Individuals who achieve goals through other
people.
Manager: Any person who supervises one or
more subordinates.
Managerial
ManagerialActivities
Activities
••Make
Makedecisions
decisions
••Allocate
Allocateresources
resources
••Direct
Directactivities
activitiesofofothers
otherstoto
attain
attaingoals
goals
Planning Managers’ Job
Organizing
Leading
Controlling
Managemen
t Functions
Henry Fayol
wrote that a a French Indu
ll managers p strialist
functions erform four m
anagement
Managers’ Job
Management Functions • Organizing
Henry Fayol a French Industrialist wrote that all
managers perform four management functions • Determines what tasks are to be
done;
Planning
Organizing • Who is to do them;
Leading
Controlling
• How the tasks are to be grouped;
• Who reports to whom; and
Planning • Where decisions are to be made.
Organizing
Leading
controlling
Managers’ Job
Management Functions • Leading
Henry Fayol a French Industrialist wrote that all
managers perform four management functions • Motivating employees;
Planning
• Direct their activities;
Organizing • Select the most effective
Leading
Controlling
communication channels; or
• Resolve conflicts among members.
Planning
Organizing

Leading
controlling
Managers’ Job
Management Functions
Henry Fayol a French Industrialist wrote that all
• Controlling
managers perform four management functions
• Monitoring performance;
Planning • Comparing performance with the
Organizing
set standard;
Leading
Controlling • Making corrections, if necessary.

Planning
Organizing
Leading
Controlling
Managerial Roles

• Role: A set of behaviors or tasks a person is


expected to perform because of the position
he or she holds in a group or organization.
• In 1960s, Mintzberg after studying 5
executives to determine what those
managers did on their jobs.
• Mintzberg concluded that mangers perform
10 different, highly interrelated roles – or set
of behaviors – attributable to their jobs.
ROLES OF A
MANAGER
• Mintzberg’s Management Roles Approach
• Interpersonal roles
Figurehead, leader, liaison
• Informational roles
Monitor, disseminator, spokesperson
• Decisional roles
Entrepreneur, disturbance handler,
resource allocator, negotiator
Mintzberg’s Managerial Roles
Role Description
Interpersonal

Figurehead Symbolic head, required to perform a


number of routine duties of a legal or social nature

Leader Responsible for the motivation & direction of


employees

Liaison Maintains a network of outside contacts who


provide favors & information
Mintzberg’s Managerial Roles

Role Description
Informational

Monitor Receives a wide variety of information; serves as


nerve centre of internal & external information of
the organization

Disseminator Transmits information received from outsiders or


from other employees to members of the
organization

Spokesperson Transmits information to outsiders on


organization's plans, policies, actions, & results;
serves as an expert on organization’s industry
Mintzberg’s Managerial Roles
Role Description
Decisional
Entrepreneur Searches organization & its environment for
opportunities & initiatives projects to bring
about change

Disturbance handler Responsible for corrective action when


organization faces important, unexpected
disturbances

Resource allocator Makes or approves significant organizational


decisions

Negotiator Responsible for representing the organization at


major negotiation
Nature of Management:
•Universal Process: Wherever there exists human pursuit, there exists management. Without effective
management, the intentions of the organisation cannot be accomplished.
•The factor of Production: Equipped and experienced managers are necessary for the utilisation of funds and
labour.
•Goal-Oriented: The most significant aim of all management pursuit is to achieve the purposes of a firm. The
aims must be practical and reachable.
•Supreme in Thought and Action: Managers set achievable goals and then direct execution on all aspects to
achieve them. For this, they need complete assistance from middle and lower degrees of management.
•The system of authority: Well-defined principles of regulation, the regulation of proper power and efficiency at
all degrees of decision-making. This is important so that each self must perform what is required from him or
her and to whom he must report.
•Profession: Managers require to control managerial expertise and education, and have to adhere to a verified
law of demeanour and stay informed of their human and social responsibilities.
•Process: The management method incorporates a range of activities or services directed towards an object.
The level of management determines a chain of command, the
amount of authority & status enjoyed by any managerial position.
The levels of management can be classified in three broad
categories:
Top Level or Administrative Level - It consists of board of directors, chief executive
or managing director.

The role of the top management can be summarized as follows:

 Top management lays down the objectives and broad policies of the enterprise.
 It issues necessary instructions for preparation of department budgets, procedures, schedules etc.
 It appoints the executive for middle level i.e. departmental managers.
 It controls & coordinates the activities of all the departments.
 It is also responsible for maintaining a contact with the outside world.
 The top management is also responsible towards the shareholders for the
performance of the enterprise.
The branch managers and departmental managers constitute middle level.

• They are responsible to the top management for the functioning of their
department.
 They devote more time to organizational and directional functions.
 They execute the plans of the organization in accordance with the policies and
directives of the top management.
• They interpret and explain policies from top level management to lower level.
• It also sends important reports and other important data to top
level management.
• They evaluate performance of junior managers.
• They are also responsible for inspiring lower level
managers towards better performance.
Lower Level of Management is also known as supervisory / operative level of management. It
consists of supervisors, foreman, section officers, superintendent etc. According to R.C.
Davis, “Supervisory management refers to those executives whose work has to be largely
with personal oversight and direction of operative employees”. In other words, they are
concerned with direction and controlling function of management.

Assigning of jobs and tasks to various workers.

They guide and instruct workers for day to day activities.

They are responsible for the quality as well as quantity of production.

They are also entrusted with the responsibility of maintaining good relation in the organization.

They communicate workers problems, suggestions, and recommendatory appeals to the higher level and higher level goals and
objectives to the workers.
Lower Level of Management

•They help to solve the grievances of the workers.


• They arrange necessary materials, machines, tools etc for getting
the things done.
• They prepare periodical reports about the performance of the
workers.
•They ensure discipline in the enterprise.
•They motivate workers.
•They are the image builders of the enterprise because they
are
in direct contact with the workers.
Top
Conceptual
Skills Needed Managers
Skills
at Different Middle Human
Managers Skills
Management
Technical
Levels Lower-level
Skills
Managers

Importance
Managerial Skills
• Conceptual Skills:
The ability to analyze and diagnose a
situation and distinguish between cause
and effect.
• Human Skills:
The ability to understand, work with,
lead, and control the behavior of other
people and groups.
• Technical Skills:
Job-specific knowledge and techniques.
Managerial Skills

Katz has grouped various managerial skills into three broad


categories in his book;
Conceptual skills – A conceptual skills are Manager’s ability to
work with ideas and concepts. These skills enable executives to
understand and better decide the actions that have to be taken in a
particular field of work.
For example, managers use conceptual skills to take decisions and
formulate strategies.

Human skills – This is a manager’s ability to work with people,


understand and motivate them.
For example, managers use human skills to get along with people
and to communicate and work within teams.

Technical skills – This is a manager’s ability to use tools,


procedures, or techniques in his specialized area.
For example, using certain computer software packages (like; MS
Excel or Access) is an advanced technical skill.

You might also like