Principles of Management

Text Book

Robbins, Stephen and Coulter, Mary Management 7th Ed, Prentice Hall Inc. 2002

Bartol, Kathryn and Martin, David Management: 3rd Ed., McGraw-Hill Inc.2003

Lesson 1

Learning Objectives:
After listening and reading this lecture we will be able to:
 Discuss what are management and its importance in daily life.
 Discuss historical background of Management.
 Discuss who is manager and what his responsibilities are.
Overview
 Management
o People
o Purpose
o Process
 Organizations
o What is an organization
o Types of organizations
 Historical Back ground of Management
o The Egyptian Pyramid
o Great China wall
o Sydney opera house
 Managers
Lesson 2

Learning Objectives
After listening and reading this lecture we will be able to:
 Discuss why we study management
 Discuss how can you bring quality in an organization
 Discuss managerial roles in an organization
Overview
 Who are managers?
 What do Managers do?
o Planning o Organizing
o Leading o Controlling
 What is Management?
o People o Purpose
o Process
 Why study Management
Lesson 3

Learning Objectives
At the end of this lecture we will be able to understand:
 The definition of Role
 What is Role of Management in Organization
 Types of Roles performed by the Management
Overview
 Definition Of Role

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  Management’s Role by Dr. Henry Mintzberg
o Interpersonal Role o Informational Role
o Decisional Role
 Interpersonal Role
o Figurehead o Leader
o Liaison
 Informational Role
o Monitor o Disseminator
o Spokesperson
 Decisional Role
o Entrepreneur o Disturbance Handler
o Resource Allocator o Negotiator
Lesson 4
Managerial Functions i.e. POLCA
Learning Objectives
At the end of this lecture we will be able to understand:
 What POLCA stands for
 Management Process
 Difference between efficiency and Effectiveness
 Mistakes Managers often make
Overview
 POLCA as Functions:
o Planning o Organizing
o Leading o Controlling
o Assurance
 Management Process
o Work Methods, Managerial Roles, and Managerial Work Agenda
o Application in both Profit and Non-Profit Organization
 Efficiency
 Effectiveness
 Managerial Mistakes
o Incentives to Others: abrasive, intimidating, bullying style
o Cold, Aloof, Arrogant
o Betrayal of Trust
o Overly Ambitious: Thinking of next job, Playing Policies
o Specific Performance Problems with the business
o Over Managing: unable to delegate or build a team
o Unable to staff effectively
o Unable to think strategically

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 o Unable to adapt to boss with different style
o Over Dependence
Lesson 5

Learning Objectives:
After listening and reading this lecture we will be able to:
 Understand relation of management with other fields of study
 Learn about the historical background of Management
 Analyze different evolution of management theories
Overview
 Management’s Connection to other Fields of Study
o Anthropology o Economics
o Philosophy o Political science
o Psychology o Sociology
 Historical Background of Management
 Pre-Classical Ideas
o Egyptian Pyramid o Division of Labor
o Industrial revolution
 Early Management Ideas
o Robert Owen o Charles Babbage
o Henry E. Towne
 Classical Ideas
o Scientific Management o Bureaucratic management
o Administrative management
 Behavioral Theories
o Hawthorne Experiments o Human Relation Views
o Behavioral Science
 Quantitative Approaches
o Operations Research o Operations Management
o MIS
Lesson 6

Learning Objectives
At the end of this lecture we will be able to understand:
 What are Scientific Management Theories
 Important Contributions in the Scientific Management
 Hoe do Today’s Managers Use Scientific Management
 Bureaucratic Management Theories
 Max Weber’s Ideal Bureaucracy
 Contribution of the Classical Viewpoint
Overview

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  Definition of Scientific Management
 Important Contributions
o Frederick Winslow Taylor
 Four Principles of Management
o Frank and Lillian Gilbreth
 Time and Motion Theory
o Henry L. Gantt
 Incentive system and Social Responsibility of Business
 Gantt Charts
 How do Today’s Managers Use Scientific Management
o Raises the standard of Living
o Many tools and techniques are in use today
 Definition of Bureaucratic Management Theories
 Max Weber’s Ideal Bureaucracy
o Impersonality o Formal Rules & Procedures
o Well-defined Hierarchy o Specialization of Labor
o Career Advancement on basis of Merit
 Contribution of the Classical Viewpoint
o Highlight the need for the scientific management
o Point out that work methods often can be improved through study
o Identifies a number of important principles that are useful in organization efficiently.
Lesson 7

Learning Objectives
After listening and reading this lecture we will be able to:
 Discuss Fayol’s 14 Management Principles
 Discuss behavioral theories of management
Overview
 Administrative Management
o Henri Fayol (1841-1925)

 Fayol’s 14 principle of management

o Division of work o Authority
o Discipline o Unity of command
o Unity of direction o Remuneration
o Centralization o Scalar Chain
o Order o Equity
o Stability of tenure of personnel o Initiative
o Esprit de corps

 Behavioral Theories
o Hawthorne Experiments o Human relation views
o Behavioral Science

Lesson 8

Learning Objectives

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After listening and reading this lecture we will be able to:
 Discuss the contributions of the early advocated of OB
 Discuss the contributions of the Hawthorne studies to the field of management
 Discuss Maslow’s hierarchy of need theory and McGregor’s theory X and Y

Overview
 Early Advocates
o Robert Owen o Hugo Munsterberg
o Mary Parker Follett o Chester Barnard

 Behavioral Viewpoint
o Hawthorne Experiments(1920-1930)

 Maslow’s hierarchy of needs theory

o Physiological needs o Safety needs
o Social needs o Esteem needs
o Self-actualization
 Mc Gregor’s theory X and Y
o Theory X
 Work avoiding
 Need to control
 Avoid responsibility
 Workers seek security
o Theory Y
 Work is necessary
 Capable of self direction
 Seek responsibility
 Can make good decisions

Lesson 9

Learning Objectives:
After listening and reading this lecture we will be able to:
 Learn about the Quantitative approach to Management.
 Learn about the different branches of quantitative management.
 Learn about the importance of contemporary viewpoints.
 Learn about the Emerging views of management.
Overview
 Quantitative Approaches to Management
 How quantitative approaches help managers
 Branches of Quantitative management
o Operations Research
o Operations Management
o Management Information System
 Contemporary Viewpoints
o The System Theory
o Contingency Theory
 Emerging Views

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 o Globalization
o Entrepreneurship
o Managing in an E-business World
 E-business
 E-commerce
o Need for innovation and flexibility
o Quality Management System
o Learning Organization
o Knowledge Management
o Theory Z

Lesson 10

Learning Objectives:
After listening and reading this lecture we will be able to:
 Understand the importance of a system.
 Understand the system theory.
 Learn about the characteristics of open and close system.
Overview
 Managing Systems
o System
 Open System
 Close system
 The System Theory
o Inputs o Transformation process
o Outputs o Feedback
 Open versus close system
 Characteristics of Open System
o Negative entropy o Synergy

Lesson 11

Learning Objectives:
At the end of this lecture we will understand:
 What is environment  The main types of environment
 Types of External Environment  Major elements of Mega Environment
 What is Task Environment  Elements of Task Environment
 Organizational Relationship with stakeholders  The Organizational Culture
Overview
 Definition of Environment
 Types of Environment

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 o External Environment o Internal Environment
 External Environment
o Types of External Environment
 The Mega environment  The Task Environment
o Major elements of Mega Environment
 Technological element  Political Elements
 Legal Political Elements  Socio-cultural Elements
 International Elements

 Task Environment
o Elements of Task Environment
 Customers and clients  Competitors
 Suppliers  Labor Supply
 Government Agencies
 Organizational Relationship with stakeholders
 Internal Environment
o The Organizational Culture
Lesson 12

Learning Objectives:
At the end of this lecture we will be able to understand:
 The Organizational Social Responsibility
o Social responsibility, Social Obligation, Social Responsiveness
 Relationship between Social Responsibility and Economic Performance
 Managerial Ethics
 Moving towards improving Ethical Behavior
 Different concepts of 21st Century
Overview
 Organizational Social Responsibility
o Social Responsibility o Social obligation
o Social Responsiveness
 Social Responsibility and Economic Performance
 Managerial Ethics
o Utilitarian view of Ethics o Rights View of Ethics
o Theory of Justice view of Ethics o Integrative Social Contract theory
 Towards improving Ethical Behavior
 Different Concepts of 21st century
o Entrepreneurship o Managing in an E-Business World
o Globalization
Lesson 13

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Learning Objectives:
At the end of this lecture we will understand:
 What is Global Environment  What Planning is all about
Overview
 Global Environment
o Regional Trade Alliances
 European Union (EU)
 North American Free Trade Agreement (NAFTA)
 Association of Southeast Asian Nations (ASEAN)
 South Asian Alliance for Regional Cooperation (SAARC)
o World trade Organization (WTO)
 Definition of Planning
 Why do managers Plan
o Purposes of Planning
 Gives direction  Reduces impact of changes

 Reduces uncertainty  Coordination among activities

 Reduces overlapping and wasteful activities
 Establish standards used in controlling
Lesson 14

Learning Objectives:
After listening and reading this lecture we will be able to:

 Understand the importance of Decision Making

 Differentiate between Decision Making and Decision Taking

 Understand the Decision Making Process
 Analyze different situations of Decision Making
Overview
 Importance of Decision Making
 Approaches to Decision Making
o Descriptive decision making o Normative decision making
 Decision Making Process
o Define the problem o Gather information
o Identify and assess the Alternatives o Choose a course of Action
 Decision Making Situations
o Certainty o Uncertainty
o Risk
Lesson 15

Learning Objectives:

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At the end of this lecture we will learn:
 Managers as a decision makers
 Nature of managerial decision making
 Different decision making models
Overview
 Managers as a decision making body
 Nature of managerial decision making
o Decision making
 Crises problem  Non-crises problems
 Opportunity Problems
 Models of Decision Making
o Rational decision making o Non-Rational decision making
 Rational decision Making
o Steps involved in rational decision making models
 Identify the problem  Identify the decision criteria
 Allocate weight to criteria  Develop alternatives
 Analyze the alternatives  Selection of alternatives
 Choosing and implementing the course of action  Evaluation of the decision’s
effectiveness
Lesson 16

Learning Objectives:
At the end of this lecture we will understand:
 The Nature of Managerial Decision Making  Types of Problems and Decisions
 What are the general Organizational Situations  Different Decision Making Styles
Overview
 Nature of Managerial Decision Making
o Programmed decisions o Non-Programmed decisions
 Types of Problems and Decisions
o Well Structured Problems and use of Programmed decision
 Procedure  Rule
 Policy
o Poorly structured Problems and the use of Non-Programmed decisions
 General Organizational Situations
o Higher level management and Poorly structured problems
o Lower level management and well structured Problems
o Some Decisions are based on the basis rationality, bounded rationality, or intuition
 Decision making styles
o Individual’s way of thinking-------rational or intuitive and the other is individual’s tolerance for
ambiguity ------low or high

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  Four Decision Making Styles
• Directive style • Analytical style
• Conceptual style • Behavioral style
o Dominant style and alternate styles
Lesson 17

Learning Objectives:
At the end of this lecture we will understand:
 Non Rationality Model  Satisficing Models
 Incremental Model  Garbage-can decision making model
 What is Group Decision Making

 Different steps to avoid pitfalls of group decision making

 Tactics to avoid pitfalls of groupthink

Overview
 Non Rationality Model
 Satisficing Model
o Bounded Rationality
o Constraints of decision making process
 Inadequate information  Time and cost factor
 Decision maker’s prejudices  Limited human memory
 Incremental Model
o Decisions are not based upon information
o More useful in short run rather than in long run
 Garbage-can Model
o Personal interest are involved o Useful in the absence of strategic management
 Group Decision Making
o Advantages o Disadvantages
 Pitfalls of Group Decision Making
o Involve only relevant information o Groups should be heterogeneous
 Tactics to avoid Group think
o Devil’s Advocates o Dialectical Inequity
Lesson 18

Learning Objectives:
At the end of this lecture we will understand:
 Group decision Making  Creativity Factor in decision making
 Tactics to enhance Group Creativity  Lateral Thinking vs. Vertical Thinking
 Other decision Making Models  Deming’s Tool for improvements and innovations
Overview
 Group decision Making

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 o Advantages o Disadvantages
 Tactics to avoid the pitfall of Group Thinking
o Devil’s advocates o Dialectical inequity
 The creativity factors in decision making
o Creativity versus Innovation
 Creativity  Innovation
o Creativity requires
 Convergent Thinking  Divergent Thinking
o Creativity has three ingredients
 Domain relevant skills  Creativity relevant skills
 Task motivation
o Creativity passes through different stages
 Individual’s immersion  Incubation
 Illumination  verification
 Tactics to enhance Group Creativity
o Brainstorming o Nominal Group Technique
 Lateral vs. Vertical Thinking
 Other decision Making Methods
o Delphi Method o Scenario Analysis
 Deming’s Tool for Improvement and Innovation
Lesson 19

Learning Objectives:
At the end of this lecture we will understand:
 Techniques for assessing Environment  Forecasting
 Suggestions for improving forecasting  Methods of Forecasting
 Delphi Method and Scenario Analysis  Benchmarking
Overview
 Techniques for assessing Environment
o Environmental Scanning o SWOT analysis
o Competitor Analysis
 Forecasting
 Suggestions for improving forecasting
o Use simple techniques o Compare every forecast
o Don’t rely on single result o Shorten the length of forecast
o Don’t assume that actual results are found
 Methods of Forecasting
o Quantitative Forecasting o Qualitative Forecasting
o Judgmental Forecasting
 Quantitative Forecasting

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 o Time Series Method o Explanatory or Casual Models
o Regression Method o Econometric Method
o Leading Indicators
 Qualitative Forecasting
 Judgmental Forecasting
o Jury of Executive opinion o Sale force composite
 Benchmarking
Lesson 20

Learning Objectives:
At the end of this lecture we will understand:
 Techniques for Allocating Resources  Contemporary Planning Techniques
 Other Planning Techniques
Overview
 Techniques for Allocating Resources
o Budgeting
 Revenue budget  Cash budget
 Profit budget
 Scheduling
o GANTT Chart o PERT analysis
o Breakeven analysis o Linear Programming
 Contemporary Planning Techniques
o Project Management o Scenario Planning
 Other Planning Techniques
o Queuing or waiting-line models o Simulation models
o Decision trees
Lesson 21

Learning Objectives:
At the end of this lecture we will understand:
 What is Planning  Why managers have to plan
 How the managers plan  The role of goals and plans in planning
 The nature of Organizational Goals  What are the three levels of Goals
 Link of Goals and Plans
Overview
 Definition of Planning
 Why do managers plan
 How do managers Plan
 The role of goals and Plans
o Stated Goals o Real Goals
 Nature of Organizational Goals

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 o Performance can be improved o Expectation can be improved
o Controlling function facilitated
 Three levels of Goals
o Strategic Goals o Tactical Goals
o Operational Goals
 Linkage of Goals and Plans
o Plans like Goals enter into a hierarchy of levels
 Strategic plans  Tactical plans
 Operational plans
o Categories of Plans
 Single use plans
• Program • Project
 Standing Plans
• Policy • Procedures
o Relate to different Time horizon
o Promote innovation

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