Principles of Business Management
Principles of Business Management
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?
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 Description
Informational
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.
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
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