Principles & Practice OF Management (MBA 011)
Principles & Practice OF Management (MBA 011)
Principles & Practice OF Management (MBA 011)
OF MANAGEMENT
(MBA 011)
MANAGEMENT
Definitions : Frederick W Taylor Management has been defined as the art of knowing what you want to do and seeing that it is done in the best and cheapest way.
Stanley Vance (From the point of view of decision making) Management is the process of decision making and control over the action of human beings for the expressed purpose of attaining predetermined goals. Lawrence Appley (From the view point of people orientation) It is the accomplishment of results through the efforts of other people.
Harold Koontz Management is the art of getting things done through and with people in formally organized groups. John Mee Management is the art of securing maximum results with minimum effort so as to secure maximum prosperity and happiness for both employer and employee and giving the public the best possible service.
MANAGEMENT
Finally
Contd.
Management is a process of effective utilization of human and other resources to achieve the stated organizational objectives. Management is a process consisting of management functions i.e. Planning, Organising, Staffing, Directing and Controlling. For What To achieve the organizational objectives like: To earn profits. To provide Goods and Services desired by customer. To provide Goods and Services with Quality. For satisfaction of all i.e. Employees, Customers, Govt. and other parties like suppliers, distributors etc. How By effective utilization of resources i.e. 6Ms (Men & Women, Materials, Machines, Methods, Money and Market)
MANAGEMENT FUNCTIONS
Planning :
Determining the objectives of the activity Making Decisions & Policies for the activities.
Creation of Departments.
Delegation of Authority and Responsibilities. Establishment of relationships.
Staffing :
MANAGEMENT FUNCTIONS
Contd.
Directing :
Inter personnel Relationships. Instruction, Supervision, Guidance & Support. Communication with subordinates. Providing Leadership. Motivation of employees.
Controlling : Comparing the actual performance with the planned & standards
Taking regular and timely corrective action.
____________________
Characteristics of MANAGEMENT
1. Management is a continuous process unless its objectives are not achieved. 2. It is a human activity, where human beings plan, implement and control the activities. 3. Management is an integrative force i.e. it binds together the different elements of the organisation.
4. It is a social process i.e. it is done by the people, through people and for the people. (Interpersonal Relationship)
5. Management is required at all levels of the organisation (Top, Middle and Lower Level) with difference of nature and authority. 6. It is a dynamic activity which is continuously performed to update the organisation for changing environment. 7. Management is getting the things done. It always promotes to perform tasks as and when required.
Characteristics of MANAGEMENT
contd.
8. Management is intangible i.e. it can not be seen but can be felt in the form
of their results. 9. Management is a combination of both science and an art. 10. Management is a profession. ____________________
Importance of MANAGEMENT
1. It makes people realize the objectives and directs their efforts to achieve them. 2. It helps in utilizing the various resources optimally. 3. It helps in reducing the cost and enables organisations to face competition. 4. It provides efficient and smooth running of business processes. 5. It helps in generation of new ideas and methods to tackle day-to-day problems.
Art of decision making: A management professional regularly practicize the Art of decision making.
Creativity: Management itself is one of the most creative Arts as it is concerned with getting work done through others by motivating them to work and coordinating their activities. Discretionary Role: As an Artist, uses his own wish and choice to prepare an Art, also Management professionals always requires certain discretionary powers to choose the way or method, time and people for getting the things done effectively.
Management as a Profession
Systematic Knowledge: Management provides systematic knowledge and formal training to its individuals. Ethical code of conduct: Management professionals are required to adopt an ethical behaviour & code of conduct for appealing and convincing others. Attitude: Management professionals always have an attitude to take things or issues in a positive & professional manner with proper utilization of resources to provide better results.
Recognition: Society always recognize the status of managers in an organization as a respectable person as they provides solutions to every problem and also produce units to benefit the society.
Competition: Increasing competition in the business would also leads to involve more and more management professionals in the organization in different roles and processes. Professional characteristics: Management professionals have knowledge, positive attitude, competent application, self control and social responsibility which recognize their job as a profession.
Levels of Management
Top Management : It consist of Board of Directors, Chairman, Chief Executive Officer, Managing Director and Other Directors etc.
Functions:
To determine the objectives Setting up an organizational framework Framing policies and making plans to achieve organizational objectives. To work as a bridge between internal and external environment. Providing overall leadership Exercising effective measures to overall control.
Levels of Management
Middle Management: It consists of Departmental Heads, Branch Managers, Superintendents etc. Functions: Interpreting the policies framed by Top Management. Selecting suitable operative & supervisory personnel. Assigning duties and responsibility for timely execution.
Levels of Management
Lower Management: It consist of Foreman, Supervisors, Sales Officer, Finance and Account Officer, HR Officer etc. Functions: To issue order & instructions to the workers and control their activities. To plan the activities of their section and assign job to the worker. To provide on-the-job training.
Levels of Management
Management Levels Planning Top Management Organising Staffing Middle Management Directing Lower Management Controlling Managerial Functions
Managerial Skills
Conceptual skills: It is the activity To see or review the organization as a whole. Having broad knowledge and skills To recognize inter relationship among different functions. To review the functions involved in the organization. To plan for various activities and formulate strategies. Making decision based on circumstances in the best interest of the organization. To conceptualize, which requires imagination, broad knowledge, mental capacity to conceive abstract ideas.
Managerial Skills
Human Skills: It is the ability To work with others and to win cooperation from people in the work To effectively communicate the message. To resolve conflicts. To motivate employees To provide effective leadership To understand the problems of others. Technical Skills: It consists of Proficiency in technical knowledge and skills Instant solution to the day to day problems troubleshooting. Ability to conduct various processes on its own. Guide and support on technical points to subordinate. group
Conceptual Skills
Human Skills
Technical Skills
Top Management
Strategic Planning
Middle Management
Lower Management
Implementation
Foresight: A good manager should have an open mind and be receptive to new ideas. He should be able to foresee the problems and can pre-mature formulate its solution.
Self-confident: A manager should be able to take initiative and take decisions after scientific analysis.
Evolution of Management
1. Classical Theory of Management (a) (b) Bureaucracy Max Weber Scientific Management FW Taylor
(c)
2. Neo Classical Theory (a) (b) Behavioral Science Approach Human Relations Approach Hawthrone Experiments Elton Mayo 3. Modern Theory (a) (b) (c) (d) Social System Approach Quantitative Approach Decision Theory Approach 7-S Framework McKinsey
(e)
Contingency Theory
Bureaucratic Model
Max Weber specified several characteristics and elements in his ideal bureaucratic organization:
1. Specialization and Division of Labour: Weber concentrates basically on the competence. This includes:
2. Rules & Regulations of performance are strictly followed and is subject to definite conditions.
3. Hierarchical position: Positions are arranged in hierarchical order. Each lower office is under control and supervision of the higher one. 4. A system of abstract rules: A set of formal rules are provided to ensure uniformity & coordination of efforts. These rules also provide the continuity & stability. People may come & go in the organization but the rules persist as such.
Bureaucratic Model
Contd.
5. Impersonal relationships: In order to make complete rational decisions, bureaucrats must avoid emotional attachment for subordinates, clients & customers. Their formal behaviour should be above any affection & enthusiasm.
6. Employee Selection, Promotion and Dismissal: Employment is based on technical qualification. Bureaucrats are provided the authority of arbitrary dismissals, promotion are made according to seniority and for achievements.
Advantages in Bureaucracy Predictable behaviour of employees under the framework of defined guidelines It leads to efficiency in the organization There is proper delegation of the authority People avoid their own emotions or preferences and will go forward with rules & regulations.
Bureaucratic Model
Criticism of Bureaucracy:
Contd.
With the strict follow up of the organizational rules & regulations, the development of individual personality harnessed. Bureaucracy does not emphasize on the goals of individual.
Scientific Management stresses on 1. Scientific study and analysis of different units of the business. 2. Scientific study of different methods of doing a work. 3. Scientific selection of workers. 4. Determination of the most efficient unit of the work.
3. The interest of employer and the employees should be fully harmonized to create mutual benefit relationship. The aim of both management and workers should be to maximize output.
4. Management should decide the method of work, working conditions, time of completion instead of leaving them at the discretion of workers.
Techniques of Scientific Management a) Scientific Work Study i) Method Study: Here the entire production process is studied to improve plant layout, product design, material handling and to reduce time & efforts involved. ii) Motion Study: It includes the study of movement of an operator in performing an operation for the purpose of eliminating useless motions.
iii) Time Study is the estimation of standard time required to complete an operation.
iv) Fatigue Study indicates that the workers feel tired after putting on work over a period of time and after that they are unable to work with their full capacity. It recommends the relax time and its frequency at appropriate intervals during a working day. b) Scientific Task Planning i) Routing: It specifies the route that a raw material should follow before its conversion into finished material.
ii) Scheduling: It is the timetable of operation with their priority to ensure the completion of each operation at the right time. iii) Dispatching: It involves assembling of necessary resources, job assignment, supervision, coordinating activities and issuing instructions to start a work etc. iv) Follow Up: It involves checking of work and taking corrective measures to ensure the completion of work at right time in right time and at a right cost.
Techniques of Scientific Management c) Scientific Selection and Training: It includes systematic selection of workers as per the nature & requirement of job. Its objective is to select & place right person at right job. d) Standardization: It is a process of fixing tested standards or norms with a view to maximize efficiency of work. Taylor suggested standardization of methods, tools & equipments and even working conditions. e) Differential Piece Wage System: Taylor suggested the use of such System (Incentive system) in order to motivate workers to produce maximum quantity of output.
f) Functional Foremanship: Under this scheme, planning and execution are separated from each other and each worker is supervised by different experts in different phases. It avoids the system of one foreman over a number of workers. Taylor advocated the appointment of eight foremen, four of them in the office responsible for planning and other four with the execution of work. These are
a) Route clerk specifies the sequence/path that each operation is to follow. b) Instruction card clerk prepares detailed instructions for workers to perform the jobs. c) Time and cost clerk frames the timetable of jobs and maintains record of work cost. d) Shop Disciplinarian enforces the discipline among the workers. e) Gang Boss is concerned with all the preliminary work before the actual operation. f) Speed boss is responsible for ensuring that the work is done well in time. g) Repair Boss ensures that each worker keep his machine clean with proper oiling.
Mental Revolution: It involves the change in attitude of both the management and the workers. Scientific Management seeks to bring about the prosperity of both the management and the workers. According to Taylor, the Scientific management would be fruitless until and unless there is a complete mental revolution on the part of both the management and the workers as to their outlook and attitude towards one another.
Benefits of Scientific Management 1. Establishment of harmonious relationship between management and workers.
2. Detailed instructions and constant guidance to the workers. 3. Proper selection and training of the workers. 4. Standardisation of tools, equipments and work methods. 5. Applying scientific techniques for each element of mans work. Criticism of Scientific Management: 1. The concept of functional foreman is not feasible in practice as it violates the principle of unity of command. 2. Trade unionist opposed Scientific Management on the grounds that the wages of the workers were not increased in direct proportion of the productivity increase. 3. The principle of Scientific Management except production is not applicable to other