HS300

Principles of management
Course Objectives

To develop ability to critically analyze and evaluate a

variety of management practices in the contemporary
context;
To understand and apply a variety of management and
organizational theories in practice;
To be able to mirror existing practices or to generate their
own innovative management competencies, required for
today's complex and global workplace;
To be able to critically reflect on ethical theories and
social responsibility ideologies to create sustainable
organizations.
MODULE 1
 Management
• People became forming groups, achieve more & accomplish aims,
managing became essential to ensure coordination of individual
efforts.
• According to HaroldKoontz,
"Management is the art of getting things done through and with people
in formally organized groups.“

• According to HenriFayol,
"To manage is to forecast and to plan, to organize, to
command, to co-ordinate and to control.“
• Management is the process of designing and maintaining an
environment in which individuals, working together in groups,
efficiently accomplish selected aims.
• People carry out managerial functions of planning,
organizing, staffing, leading and controlling
• Management applies to any kind of organization, College, IT firm,
football team, cricket team etc.
• Concerned with productivity, implies efficiency and
effectiveness
• Organizing is a systematic process of structuring, integrating,
co-ordinating task goals, and activities to resources in order to
attain objectives.
• Organization could be defined as a group of people with a
particular purpose, working together to create a surplus.
• Enterprise- a business, hospital, government agency,
university or any other type of organization
1. Robert Owen (1778-1858)
Performance & Working conditions

2. Charles Babbage (1792-1871)

Used Science & Mathematics, Technology and accurate data

3. James Watt Jr. (1796-1848) & Robinson Boulton (1770-1842)

Forecasting, Planned Layout, Production Planning, Standardization of
Parts, Elaborate Statistical records,Welfare of workers.
The fundamental principles that Taylor saw underlying the scientific
approach to management are

1. Replacing rules of thumb with science.

2. Obtaining harmony in group action, rather than discord.
3. Achieving cooperation of human beings, rather than chaotic
individualism.
4. Working for maximum output, rather than restricted output.
5. Developing all workers to the fullest extent possible for their own
and their company’s high prosperity.
Management is finding one best way to do a job.

Management is the process of getting things done, effectively and

efficiently, with and through other people.

Management of an organization is the process of establishing

objectives and goals of the organization periodically, designing the
work system and the organization structure, and maintaining an
environment in which individuals, working together in groups,
accomplish their aims and objectives and goals of the organization
effectively and efficiently.
Efficiency refers to getting the most output from the least amount of inputs.

Effectiveness is often described as “doing the right things”

ORGANIZATION

• Organization has a distinct purpose.

• Organization is composed of
People

• Deliberate structure within which members do

their work.
CHARACTERISTICS OF ORGANIZATION
Henri Fayol – French industrialist
‘Father of modern management theory’

Fundamental principles by Henri Fayol

1.Authority and responsibility

2.Unity of command

3.Scalar chain

4.Espirit de Corps
Who are Managers and where do they work?

• No such conditions to be there for managers.

• Runs large corporations as well as entrepreneurial start-ups.
• Managers can also be found doing managerial work in every
country on the globe.
• Some managers are top-level managers while others are first-line
managers.
• Equally likely to be women as they are men.
• However all managers share one common element. They work in
an organization setting.
Managerial Functions
• All managers carry out managerial functions
(manager,
executive, administrator, supervisor)
• Koontz and O’ Donnell have
adopted the following functions:
• (i) Planning
• (ii) Organizing
• (iii) Staffing
• (iv) Leading/Directing
• (v) Controlling.
• (vi) Co-ordination
MANAGEMENT HIERARCHY
Time spent in carrying out managerial
functions
MANAGERIAL SKILLS

There are three types of skills required by a manager.

• Conceptual Skills

• Technical skills

• Human Relations Skills

Managerial skills and level
Managerial Roles:
Managerial roles refer to managerial activities. This can be grouped in
to three.
A. Interpersonal Role
1. The figure head role : perform ceremonial and social duties
2. The Leader Role
3. The Liaison Role : with outsiders
B. Informational Role
4. The recipient Role : receiving information about the operation of an
enterprise
5. The disseminator Role : passing information to subordinates
6. The spokesperson Role: transmitting information to outside
C. Decision Role
7. The entrepreneurial Role
8. The disturbance – handler Role
9. The resource allocator Role
10. The negotiator Role
Management as Science or Art

• Management as a Science:
• Science can be defined as a systematic and organised body
of knowledge based on logically observed findings, facts
and events.
• Science comprises of exact principles which can be
verified and it can establish cause and effect relations.
Main characteristics/features of science are:
1. Systematic body of knowledge:
2.Scientific principles are derived on the basis of logical
and scientific observations:
• Observation of human being cannot be purely logical
and objective.
3. Principles are based on repeated experiments:
4. Universal Validity:
• Management principles are not exact like scientific
principles so their application and use is not universal.
5. Replication is possible:
• But in management managers have to conduct research or
experiments on human beings
 Management as anArt:
• 1. Systematic body of knowledge/Existence of
theoretical knowledge:
• 2. Personalized application:
• 3. Based on Practice and creativity:
• Management is both science as well as art.
• Like science it has systematic and well- organised body of
knowledge and like art it requires personal skill, creativity and
practice to apply such knowledge in the best possible way. Science
and art are not in contrast to each other but as complementary;
both exist together in every function of management.
• Managing as a practice is art, the organized knowledge
underlying the practice is a science.
EXTERNAL ENVIRONMENT

•Major forces outside the organization with potential to

influence a product or service’s success.

•Environment that indirectly influences business

•Includes factors which are uncontrollable by the business

Two types of external environment :

Micro environment and macro environment

Micro environment
Consists of
• Suppliers - essential supply of raw materials to company
• Marketing intermediaries -include middlemen such as
agents and merchant that help company to find customers
• Customer-a person who buys goods or services from a shop
or business. most important task of company is to create and
sustain customers
Macro environment

•Macro environment is commonly known as general

environment

•Macro factors are more uncontrollable than micro environment

factors

•The success of company depends upon its adaptability to the

macro environment

•Some of the macro environments in management are listed as

follows
Economic environment – economic system of the country,
inflation etc.

Social environment --- sociology factors such as customs and

conventions, values etc.

Political and legal environment --- influenced by political

parties , ideology of government, flexibility and adaptability of
law

Technical environment -----technology adapted by the

industries determines the type and quality of goods and
services to be produced
Ecological environment – Managers must take into account
the ecological factors while decision making
Ecological factors relate to the people, air soil water etc.
Global, innovative and entrepreneurial perspectives of
Management
1. Global perspective

Relates to global presence of organizations.

Eg. MNCs Multi National Corporations

they are headquartered in one country but operates in many
countries
Eg. HONDA – H.Q at Japan operates in literally all over the
world.
2. Innovative Perspective

• CRM (customer relationship management ) -uses latest

technology to manage customers, goal is to improve business
relationships. Salesforce
• E-commerce, M-commerce. M-payment
• Increase employment and prosperity
• Eg. Barcode system in KTU
3. Entrepreneurial perspective
•Involves creation and operation of an enterprise in an uncertain
business environment

• Related to innovation

• Continuous search for new ideas

• Level of return or compensation for taking on the risk of developing

idea into an actual business venture

• Willingness to assume risk , results may not be instantaneous and

positive
Characteristics of organizations of new era
• Clearly defined structure
• Sense of order and organized structure
• Structure and order of the organization does not limit
innovation and growth.
• New organizational structure like virtual organization
• Customer oriented
•Today, the business organisations are more customer
oriented than product oriented.
•Creates best solutions for customers rather than creating
best product
• Better employee participation
• Giving the opportunity to take initiative rather than
imposing decisions
• New managers guide/lead employees to make
decisions rather than imposing decisions on them.

• Better collaboration between departments

• Group harmony and team work

• Use of science and technology in business practices

• Higher growth rate and reducing manual works
owing to the use of scientific practices.
• Organizations align, people, systems and processes
• Process towards the achievement of overall
development

• Understand different cultures

• Global organizations take the area’s cultural practices
and regional values into account in their business
practices

• Adapts to opportunities and changes

• Knows how to adapts to technological or operational
changes. Organizations always look for chances to
grow.
• How to recognize and exploit good opportunities
Managing For Competitive Advantage

• Competitive advantage means superior performance

relative to other competitors in the same industry or
superior performance relative to the industry average.
• Competitive advantage is the favorable position an
organization seeks in order to be more profitable than
competitors.
• To survive and win in the age of globalization,
organizations must adapt some fundamental success drivers
to gain competitive advantage.
 Managing For Competitive Advantage
• Diversity and multiculturalism in Organizations
• Age distribution, ethnicity and Gender- this workforce excels
• Managing this leads to competitive advantage
• Quality, Innovation, Speed(time period to serve), Cost competitive
Characteristics

• Physical-age, gender,
race, ability, cognitive

style
• Cultural- ethnic/national
origin, lifestyle, marital

status, religion
• Socio-economic –
education, profession,
function, social class
Fundamental success drivers

1. Cost Competitiveness
2. Quality
3. Speed
4. Innovation
Cost Competitiveness
• Cost competitiveness is all about by keeping the price low by
realizing the profit.
• Dell computers are one of the best companies of the world dealing
in computers they provide computers in affordable prices and deal
online in the Internet.
• Chinese products dominating the Asian market by keeping the
price low of products.
• Major company like Intel establish manufacturing plants to cheap
labor countries like china, Pakistan , India and Bangladesh by
managing labor, manufacturing and minimize taxes result in low
cost of the product.
Quality

“Quality is the excellence of a product, including such thing

as attractiveness, lack of defects, reliability, and long term
dependability.”
• Probably one of the most important success driver next to
cost.
• Dell computer maintain quality as well as they are cheaper
than others.
• Intel Corporation deals in many computer products like
processors and motherboard and satisfies people by the
performance, reliability of their products that’s why they
capture computer hardware market.
Speed
“Fast and timely execution of the response”
• Know about market condition and customer requirements and
deliver the product as soon as possible .
• Timely response to the customer adds value to the company.
• Dell computer gets specification of the computer from the user
and deliver the same, within 36 hours, because of they have
good coordination with their supplier to get the parts in 10
hours.
• Pizza hut deliver each order in 15 minutes people don’t have to
wait too much, that is why they are dominating..
Innovation
“Creation of new devices, objects, ideas, or procedures useful in
accomplishing human objectives”

• Samsung leading cell phone company dominating because they

implement new ideas in their products and deliver continuously new
products in the market for every class of customer
THE CHALLENGES OF MANAGEMENT
Some of the challenges in management are

1. Globalisation Managing in a global environment may be

difficult as the cultures, political systems and economy change,
which seldom poses a difficulty to the managers.
2. Quality and productivity : Increased competition and the desire
for quality poses a major challenge to the managers as it is a
difficult task to maintain quality considering the competition and the
market demands.
3.Change in technology: Technology in the present scenario is
changing in a fast rate and it is challenging for the modern day
manager to keep up with the latest technology.
4.Change in environmental forces : Effect of organizations on environments is
one of the serious issues today. Industries are facing pressures to reduce
environmental impacts in form of pollution while balancing their regular
operations.

5. Lack of skills : It is becoming harder to find talented and skilled taskforce for
an organization which is one of the challenges faced by managers.

6. Market changes : Coping with continuous and rapid changes in marketplace

and the need to find new ways in anticipating changes are challenging.

7. Ethical and social responsibility: Business ethics have been codified and it
is needed that the managers abide by these.
Every industry or organization as a whole has responsibility towards society
regarding the impacts of the business.