PRINCIPLES AND PRACTICE OF MANAGEMENT

*(1) EFFICIENCY

Efficiency is the (often measurable) ability to avoid wasting materials, energy, efforts,
money, and time in doing something or in producing a desired result. In a more general sense, it
is the ability to do things well, successfully, and without waste. In more mathematical or
scientific terms, it is a measure of the extent to which input is well used for an intended task or
function (output). It often specifically comprises the capability of a specific application of effort
to produce a specific outcome with a minimum amount or quantity of waste, expense, or
unnecessary effort. Efficiency refers to very different inputs and outputs in different fields and
industries.
*SET THINK RIGHT
* Efficiency is defined as the ability to produce something with a minimum amount of
effort.
Examples of efficiency
Efficiency is defined as the ability to produce something with a minimum amount of effort. An
example of efficiency is a reduction in the number of workers needed to make a car.
Efficiency Formula
Efficiency is a measure of how much work or energy is conserved in a process. In many
processes, work or energy is lost, for example as waste heat or vibration. The efficiency is the
energy output, divided by the energy input, and expressed as a percentage. A perfect process
would have an efficiency of 100%.

Efficiency=(output /input)*100%

η = efficiency (Greek letter "eta")

Wout = the work or energy produced by a process. Units are Joules (J).

Win = the work or energy put in to a process. Units are Joules (J).

η = 0.40 x 100%

η = 40%
*(2) EFFECTIVENESS

Effectiveness is the capability of producing a desired result or the ability to

produce desired output. When something is deemed effective, it means it has an intended or
expected outcome, or produces a deep, vivid impression
The degree to which objectives are achieved and the extent to which targeted
problems are solved. In contrast to efficiency, effectiveness is determined without reference to
costs and, whereas efficiency means "doing the thing right," effectiveness means "doing the right
thing."

*SETTING RIGHT THINKS

*(3) PRODUCITIVITY
Productivity describes various measures of the efficiency of production. A
productivity measure is expressed as the ratio of output to inputs used in a production process,
i.e. output per unit of input. Productivity is a crucial factor in production performance of firms
and nations. Increasing national productivity can raise living standards because more real income
improves people's ability to purchase goods and services, enjoy leisure, improve housing and
education and contribute to social and environmental programs. Productivity growth also helps
businesses to be more profitable. There are many different definitions of productivity and the
choice among them depends on the purpose of the productivity measurement and/or data
availability.
Examples:-
* Partial productivity
* Labour productivity
Labour productivity=output volume / labor input use

* Multi-factor productivity
*Accounting procedure
*Total productivity
*Benefits of productivity growth
*Drivers of productivity growth
*Individual and team productivity
*Business productivity

**LESSER THE INPUT MORE OUTPUT (OUTPUT INPUT RATIO)

A measure of the efficiency of a person, machine, factory, system, etc., in
converting inputs into useful outputs. Productivity is computed by dividing average output per
period by the total costs incurred or resources (capital, energy, material, personnel) consumed in
that period.
*(3) GOAL

A goal is an idea of the future or desired result that a person or a

group of people envisions, plans and commits to achieve. People endeavor to reach goals within
a finite time by setting deadlines.

A goal is roughly similar to a purpose or aim, the anticipated result

which guides reaction, or an end, which is an object, either a physical object or an abstract
object, that has intrinsic value.

* Edwin A. Locke and Gary P. Latham, the fathers of goal-setting theory

According to Locke and Latham, goals affect performance in the following ways:

1. goals direct attention and effort toward goal-relevant activities,

2. difficult goals lead to greater effort,
3. goals increase persistence, with difficult goals prolonging effort, and
4. goals indirectly lead to arousal, and to discovery and use of task-relevant knowledge and
strategies.

*EXAMPLE:-

*Short-term goals
*Personal goals
*Achieving personal goals
*Personal goal achievement and happiness
*Self-concordant goals
*Goal management in organizations

*(1)MANAGEMENT

MANAGEMENT IS GETTING SOME THINK THROUNG OTHERS, GETTING

MANAGEMENT THINK DONE BY OTHERS

Management (or managing) is the administration of an

organization, whether it is a business, a not-for-profit organization, or government body.
Management includes the activities of setting the strategy of an organization and coordinating
the efforts of its employees (or of volunteers) to accomplish its objectives through the application
of available resources, such as financial, natural, technological, and human resources. The term
"management" may also refer to those people who manage an organization.
Larger organizations generally have three levels of managers, which are typically organized in a
hierarchical, pyramid structure:

 Senior managers (TOP LEVELS), such as members of a Board of Directors and a

Chief Executive Officer (CEO) or a President of an organization. They set the strategic
goals of the organization and make decisions on how the overall organization will
operate. Senior managers are generally executive-level professionals, and provide
direction to middle management who directly or indirectly report to them.
 Middle managers, examples of which would include branch managers, regional
managers, department managers and section managers, provide direction to front-line
managers. Middle managers communicate the strategic goals of senior management to
the front-line managers.
 Lower managers, (OPERATIONAL LEVELS) such as supervisors and front-line team
leaders, oversee the work of regular employees (or volunteers, in some voluntary
organizations) and provide direction on their work.

In smaller organizations, an individual manager may have a much wider scope. A single manager
may perform several roles or even all of the roles commonly observed in a large organization.

*Senior managers (TOP LEVELS), DECISIONS

*Middle managers, EXECUTION

*Lower managers, (OPERATIONAL LEVELS) GETTING EXECUTED

*(2)ROLE

A prescribed or expected behavior associated with a particular

position or status in a group or organization

A role (also role or social role) is a set of connected behaviors, rights,

obligations, beliefs, and norms as conceptualized by people in a social situation. It is an expected
or free or continuously changing behavior and may have a given individual social status or social
position. It is vital to both functionalist and interactionist understandings of society. Social role
posits the following about social behaviour:
 1. The division of labour in society takes the form of the interaction among heterogeneous
specialised positions, we call roles.
2. Social roles included appropriate and permitted forms of behaviour and actions that recur
in a group, guided by social norms, which are commonly known and hence determine the
expectations for appropriate behaviour in these roles, which further explains the place of
a person in the society.
3. Roles are occupied by individuals, who are called actors.
4. When individuals approve of a social role (i.e., they consider the role legitimate and
constructive), they will incur costs to conform to role norms, and will also incur costs to
punish those who violate role norms.
5. Changed conditions can render a social role outdated or illegitimate, in which case social
pressures are likely to lead to role change.
6. The anticipation of rewards and punishments, as well as the satisfaction of behaving
prosocially, account for why agents conform to role requirements.

The notion of the role is examined in the social sciences, more specifically economics, sociology
and organisation theory.

*KIND OF IMPRESSION

*(3)ROLES OF A MANAGER

Managers have five basics functions. Those functions are; planning,

organizing, staffing, directing, and controlling. Managers must plan, or
narrow goals from their broadest to most intricate form. They must
organize and create a structure for daily tasks and communication .
 Every organization has ‘ Managers’ who are entrusted with the
responsibility of guiding and directing the organization to achieve its goals.

Managers administer and coordinate resources effectively and efficiently to channelize their
energy towards successful accomplishment of the goals of the organization. Managers are
required in all the activities of organizations. Their expertise is vital across departments
throughout the organization.
Role of Managers
Managers are the primary force in an organization's growth and
expansion. Larger organizations are particularly complex due to their size, process, people and
nature of business. However, organizations need to be a cohesive whole encompassing every
employee and their talent, directing them towards achieving the set business goals. This is an
extremely challenging endeavor, and requires highly effective managers having evolved people
management and communication skills.
The Top Management
The top level executives direct the organization to achieve its
objectives and are instrumental in creating the vision and mission of the organization. They are
the strategic think-tank of the organization.
Senior Management
The General Manager is responsible for all aspects of a
company. He is accountable for managing the P&L (Profit & Loss) statement of the company.
General managers usually report to the company board or top executives and take directions
from them to direct the business.
The Functional Manager is responsible for a single
organizational unit or department within a company or organization. He in turn is assisted by a
Supervisor or groups of managers within his unit/department. He is responsible for the
department’s profitability and success.
Line and Staff Managers
Line Managers are directly responsible for managing a single
employee or a group of employees. They are also directly accountable for the service or product
line of the company. For example, a line manager at Toyota is responsible for the manufacturing,
stocking, marketing, and profitability of the Corolla product line.
Staff Managers often oversee other employees or subordinates
in an organization and generally head revenue consuming or support departments to provide the
line managers with information and advice.
Project Managers
Every organization has multiple projects running
simultaneously through its life cycle. A project manager is primarily accountable for leading a
project from its inception to completion. He plans and organizes the resources required to
complete the project. He will also define the project goals and objectives and decide how and at
what intervals the project deliverables will be completed.
The Changing Roles of Management and Managers
Every organization has three primary interpersonal roles that
are concerned with interpersonal relationships. The manager in the figurehead role represents the
organization in all matters of formality. The top-level manager represents the company legally
and socially to the outside world that the organization interacts with.

In the supervisory role, the manager represents his team to the

higher management. He acts as a liaison between the higher management and his team. He also
maintains contact with his peers outside the organization.
Mintzberg's Set of Ten Roles

Professor Henry Mintzberg, a great management researcher,

after studying managers for several weeks concluded that, to meet the many demands of
performing their functions, managers assume multiple roles.

He propounded that the role is an organized set of behaviors. He

identified the following ten roles common to the work of all managers. These roles have been
split into three groups as illustrated in the following figure.

Interpersonal Role

 Figurehead − Has social, ceremonial and legal responsibilities.

 Leader − Provides leadership and direction.

 Liaison − Networks and communicates with internal and external contacts.

Informational Role

 Monitor − Seeks out information related to your organization and industry, and monitors
internal teams in terms of both their productivity and well-being.
  Disseminator − Communicates potentially useful information internally.

 Spokesperson − Represents and speaks for the organization and transmits information
about the organization and its goals to the people outside it.

Decisional Role

 Entrepreneur − Creates and controls change within the organization - solving problems,
generating new ideas, and implementing them.

 Disturbance Handler − Resolves and manages unexpected roadblocks.

 Resource Allocator − Allocates funds, assigning staff and other organizational

resources.

 Negotiator − Involved in direct important negotiations within the team, department, or

organization.

Managerial Skills

Henri Fayol, a famous management theorist also called as the Father of Modern Management,
identified three basic managerial skills - technical skill, human skill and conceptual skill.

Technical Skill

 Knowledge and skills used to perform specific tasks. Accountants, engineers, surgeons all
have their specialized technical skills necessary for their respective professions.
Managers, especially at the lower and middle levels, need technical skills for effective
task performance.

 Technical skills are important especially for first line managers, who spend much of their
time training subordinates and supervising their work-related problems.

Human Skill

 Ability to work with, understand, and motivate other people as individuals or in groups.
According to Management theorist Mintzberg, the top (and middle) managers spend their
time: 59 percent in meetings, 6 percent on the phone, and 3 percent on tours.

 Ability to work with others and get co-operation from people in the work group. For
example, knowing what to do and being able to communicate ideas and beliefs to others
and understanding what thoughts others are trying to convey to the manager.
Conceptual Skill

 Ability to visualize the enterprise as a whole, to envision all the functions involved in a
given situation or circumstance, to understand how its parts depend on one another, and
anticipate how a change in any of its parts will affect the whole.

 Creativity, broad knowledge and ability to conceive abstract ideas. For example, the
managing director of a telecom company visualizes the importance of better service for
its clients which ultimately helps attract a vast number of clients and an unexpected
increase in its subscriber base and profits.

Other Managerial Skills

Besides the skills discussed above, there are two other skills that a manager should possess,
namely diagnostic skill and analytical skill.

Diagnostic Skill − Diagnose a problem in the organization by studying its symptoms. For
example, a particular division may be suffering from high turnover. With the help of diagnostic
skill, the manager may find out that the division’s supervisor has poor human skill in dealing
with employees. This problem might then be solved by transferring or training the supervisor.

Analytical Skill − Ability to identify the vital or basic elements in a given situation, evaluate
their interdependence, and decide which ones should receive the most attention. This skill
enables the manager to determine possible strategies and to select the most appropriate one for
the situation.

For example, when adding a new product to the existing product line, a manager may analyze the
advantages and risks in doing so and make a recommendation to the board of directors, who
make the final decision.

Diagnostic skill enables managers to understand a situation, whereas analytical skill helps
determine what to do in a given situation.

THREE LEVELS OF MANAGERS

*X
*Y
*Z

*(1)GEMBA WALK KAIZEN

Gemba Kaizen is a Japanese concept of continuous improvement

designed for enhancing processes and reducing waste. Within a lean context, Gemba simply
refers to the location where value is created, while Kaizen relates to improvements.

*(2)JAPANESE STYLE OF MANAGEMENT

A “Japanese Management Style” popularized by Dr. William
Ouchi. Theory Z focused on increasing employee loyalty to the company by providing a job for
life with a strong focus on the well-being of the employee, both on and off the job. 9. Long-term
employment and job security
*(3) SOHO
*SMALL OFFICE HOME OFFICE
*(4)OYO/M/C
*OWN YOUR DIVICE
*(5)PESTE
*POLITICAL, ECONOMIC, SOCIOLOGICAL, TECHNOLOGY, ENVIRONMENT