Principal and Practice management.

Unit.1

What is Management?
Harold Koontz and Cyrill O Donnell.
Definition of Management: Management is the art of getting things done through
with the people in formally organized.

William Spriegel: Management is function of enterprises which control direction

Geroge R terry: Management is distinct process of consisting the planning.

Dalton Macfarland: Management is the process by which manager create, direct,

control.

2. Business org and Management: Where the group of people undertake a

particular activity to produce goods and Services

Form of Business houses

Sole ownership
Partnership
Cooperation
Co-operative

3.Nature of Business.
Producing goods
Distribution
Rendering services

Three component of business.

Owner
Employee
Customer

Function s of Business organization.

Production function
Making function
Personal function

Types of Industries:
Primary Indus Secondary Indus Tertiary Indus
 Extraction business Financial services
and Genetic Business Educational
Information service
and tech
Quaternary Industries.

Factor of Affecting Establish business.

Nature of Business
Ease of formation
Source of finance
Excepted competition
Govt Regulation
Stability

Objective of management
Organizational objective
1 Customer satisfaction
2. Stability and growth
3 Improving good will

Social Objective.
Supply quality product
Business ethics
Increase employment

Personal objective.

8. Principle of Management
The basic principle of management is profound Henry Fayol given 14
principles for smooth Administration industries.

9. Nature of Management.
Management is art
Management as a Science
Management as profession: There are 10 professions characteristic.

10. Level of Management

Top Level
Mid-Level
Lower Level.
 Assessment question and answer
Is supervisor is responsible for framing the plans (False)

Middle level management encourage there manager to executive the

program( True)

A industries which collect the information, store it by processing and

disseminates in the market is the type of “Information industries “

Marketing, production and personnel are Independent activity

Management is treated as profession as it based on certain Principle and

method .

Management thinker Contrubution

F.W Taylor Father of scientific management
Henry Fayol Principle and Management
Peter Druker MBO
Herberg Two Factor theory

UNIT -2. Managing Organization.

Management as process: it determines what works needed to be accomplish

the goal. As George R Terry said that , Management is a distinct process
consisting of planning.
As Theo Haimann : Management is sum total of all process. Planning,
Direction , Control the orgnisation.

Management is as Activity: As Joseph Messie say Management is process by

which action are directed by a cooperative groups to achieving the goals

Management as discipline: after second world war , this concept, Managers

organize the enterprises

4. Managerial Skill: below mentioned skill are required to be Manager.

Technical skill Acquire subject related knowledge
Digital skill How to communicate the system
Analytical skill
Conceptual skill
Decision Skill
Inter- personal
skill
 Communication
Political Skill

Catageroryof Managerial role:

Interpersonal role : to provide leadership, to be figurehead, being a liaison

with in company.
2 figurehead role: this role is applicable, when the manager is responsible for Social,
inspirational, legal and commercial.

3 .Leadership Role: it involves co coordinating and controlling subordinates.

Liaison Role: interaction Means communication between two different groups
or units in the org.

Informational Role: to obtain and transmit the information . The following are
types of roles.
1. Monitor Role :Keep constantly scan globally.
A. Disseminator Role: Collect the information through monitor role.
B. Spoke person role: Used that public relation Capacity.

Decision roles: Interpersonal relationship it’s time to take decision process.

Entrepreneurial role.
Disturbance Role
Resource allocator
Negotiator Role

4. Social responsibility:
Owner, Customer , Employer, GOVT, Society, Supplier and Competitor

Legal Aspect and social responsibility:

Government rule, Pay all taxes, Maintain transparency, Discourage
corruption.
UNIT -3. Organization Chart.

Definition of Organization structure: When Group is divided in to sub groups as

per their specialization and an individual heads direct and control that groups
ensuring the smooth functioning and division or department are an org structure?
Org Chart: Chart is graphical presentation of data with different symbol.
Chart can represent in the forms of diagram.
Chart can make it easy to understand large data its relation between various
elements. Data presented with chart and Graphs Could understood Quickly,
Probably at glance.
Types of Chart.
Bar Chart
Pie Chart
Line Chart

Following are the element of chart.

Authority Has right to make decision to process the work.
It Ensure team motivation, timely decision, avoid
losses, respect for team leader. Upgrade skill.
Authority and responsibility is assigned to each
individual
Span of control Su
Subordinate work
Chain of It indicates relationship with different level
command authority from top to Bottom.
Only one person can give command a defined
group.
Manager one wants to works get done from
employee who subordinate manager of another
manager.

Hierarchy Shows specific position of each employee and his

duties
Empowerment Give Responsibility to people at level
Delegation Pass the authority from superior to subordinate.
Division of authority .
Division of authority where Power and
responsibility
Line Structure of Org: is nothing but hierarchical structure.

Drawback of Chart.
1. Large Organization chart is not updated.
Large org is big hence its complicated.
Large org chart is showing Formal relationship , not showing Social relationship.

Line Structure: C Hayel , in terms of authority relationship line connotes authority

relationship to take action decision.
Advantages Disadvantage
Specialization Flow of Communication
Centralization Fixing Responsibility
Proper division work
Disciplining work

Functional Structure : F.W taylor Functional approach Management.

Advantages Disadvantage
Expert Knowledge, Increase Overlaping authority
efficacy, Stress management,
Reduce Barriers, Quick decision High Cost
Quick Decision , Employee Lose control and increase in
Preparation discipline
Functional ,
Geographical ,Product, Customer
Decentralization

Quiz and Answer.

Component are centralized org , Complexity, Formalization, and
Centralization.
Different type of Departmentalization is functional , Geographical, product
and customer.
Different forms of organization structure line, Line & Staff Functional matrix.
Five important matrix org ( Goal, Leader, influence, Promotion, costing, and
awarding)

Functional structure is based on F. W Taylor approach.

Centralization is carried out bring all activity under a control of signal
manager
Interdepartmental conflict and connectedness affects Product Quality.

From Structure Description

 Line structure Suitable for small org
Line and Staff Structure Traditional form of an org
Fucntional structure Divided as per the
opration
Matrix Structure Complex Structure
Centralization Decesion making rest top
to bottom
Depatmentalization Suitable for professional

UNIT 4
Management Resource: Resource are managed effectively and efficiently for
better use.
Procution resource .
Finance
Material
Information
Human intellectual Management
Time management

Resource Management;
People Direct Monitor activity
Finance Use monitory resource
Material Maximum utilization of
production
Information Cope up future change
Machinery Appropriate and updated
changes
Time Ensure better qulality

Information Resource
Information business Resource
Finance As resource
Time Resource
Material resource
Inventory Management
Quiz and Answer
Finance is blood resource of an organization.
The obtain final product of material needs to be under an Production process.

UNIT 5.
Organization Behavior: Keith Davis: is the study of application at knowledge
about the people.

Robert Owner is father of personnel management. Then 1935 Andrew Ure

published a book “Philosophy of Manufacture.

F.W Taylor has converted the general theory to an idea s of practical

The Hawthorne Study. 1927 to 1932

Experiment
Normal condition , 2400 relays week
Routine work
Put on price work, Output increased
two 5 minute rest
paused, rest paused
increased, two rest
pauses free hot
meal, finish the
work ½ house
Six 5 minute paused Output deceased
Finish work 1 hour Output remain same
before
All the facilities Domestic change occured
taken away and
backed with Normal
condition

QUIZ and Answer

Job Description Decides content the job
Organizational culture Process that bind the org
together
Team Work A set of inter related activity
Self Esteem None
Personality It arises with in individuals
and remains throught out the
life

Unit 6.
 Planning Definition: Koontz o Daniel: to bridge the gap from where we are and
where we want to go.

Objective of planning. :
What kind of organizational structure?
What kind of people it require?
Find out effective leadership
To analyze standards for control

Planning A Managerial Activity

It provides direction
It Reduces Uncertain
Can choose alternate plant
Managers can take the
Process of co –ordination
Encourages Creativity
It is base managerial
Allocation resource
Effective usages
Anticipation of Crisis

Level of planning
Corporate
Divisional
Departmental

Types of planning

Strategic planning Broad objectives and goals are prepared

Long Term plans Forecasting future events, today
Short term plans Activities carried out to accomplish long term plans
Formal plans Documentation is required.
Informal plans Outcome of informal discussions
Administrative plans Is carried out by middle level managers.
Operational planning Planning is done for actual execution.
Adhoc planning Draft a plan for a particular project
Standing plans These are prepared to use repeatedly
Functional planning Forms uniformity within a section
Tactical planning Bridge the gap between strategic and operational planning
ELEMENTS OF PLANNING:: Objectives, Strategy, Policy, Procedure, Method, Rule,
Program, Budget, Resources.

PLANNING PROCESS: Identification of the problem, Establishing premising, Define

business mission and objectives, State principles and ideologies for its
implementation, Prepare alternative courses, Proper documentation, Budget, Check
the performance.

TOOLS FOR PLANNING:

1. Research Methods – In research planning process is carried out with systematic
methods. Coding methods, statistical tools, different types of research are used
for study purpose.
2. MIS (Management Information System) – Information and data does highly
influence decision making process, that is necessary for planning. MIS is the
function to collect and transmit all relevant data for a project as well as
information on managerial applications.

3. PERT/CPM (Program Evaluation Review Technique/ Critical Path Method)

– PERT is a more precise method of scheduling a task. It shows sequence by
detailed activity and time by hours, days and week. It is a graphical
representation of interrelationships of activities within a particular project

Question and Answer.

1. -------- Convert the plan in to monetary money.

2. Job and activity can be better defined along with time duration it required
in the ---------------------- planning.

4. Standards and codes can be better explained for the policy execution with
the help of ------------------------process.

Informal Planning Is outcome of informal classification

Functional Planning Draft a plan for specific planning
Element of planning Policies and producer are decided method

MIS Retrieves org and distributes information

for studies

UNIT 7 STAFFING.
A given by McFarland –
“Staffing is the function by which managers build an organization through the
recruitment,
selection and development of individuals as capable employees”.

IMPORTANCE OF STAFFING:

MAIN COMPONENTS OF HUMAN RESOURCE:

1. Acquisition Phase – This step includes recruiting, selection and properly
placing of selected personal to obtain maximum productivity.
2. Retention – skilled and talented employees are always prove to be more
productive for the organization. For long-term organizational stability
these employees are beneficial.
3. Termination – Due to job cutbacks, employees adverse performance or if
employee breaks rules, results in frequent terminations.

STAFFING PROCESS; Staffing process is a process of analyzing manpower

requirements within the organization. Staffing process decides the kind of
staff and number of staff to be managed to form the successful organizational
structure.

7.10.2 Performance Appraisal Methods:

1. MBO: It can be defined as a process whereby the employees and the
superiors come together to identify common goals, the employees set their
goals to be achieved, the standards to be taken as the criteria for
measurement of their performance and contribution and deciding the course
of action to be followed.

2. 360 Degree Appraisal System-This method gives a chance to the employee

to look at his/her strengths and weaknesses, his achievements, and judge
his/her own performance. Superior’s appraisal forms the traditional part of
the 360 degree performance appraisal where the employees’ responsibilities
and actual performance is rated by the superior.
UNIT 8 LEADING

Definition

FUNCTIONS OF LEADERS.

1. Development of Team Work

2. Representing a team
3. Managing Time
4. Guiding team members

MANAGEMENT WITH LEADERSHIP.

8.10 LEADERSHIP THEORIES.
Trait Theory : It is said that, effective leaders are born, not made. This
statement is based on the previously known theory of Great Man theory of
Leadership. While it was said that in born behavior develops a great man i.e. a
leader.

THE BEHAVIORAL THEORY: During 1950’s and 1960’s different behaviors

have been studies for leadership styles.

8.12 CONTINGENCY THEORYL: Contingency theory is similar to situational

theory in that there is an assumption of no simple
One right way.
UNIT 9 DIRECTION

According to Newman and Warren, “Directing Deals with the steps a manager
takes to get subordinates and others to carry out plans.”

IMPORTANCE OF DIRECTING:

 Direction initiates actions

 Direction integrates employees efforts-
 Direction attempts to get maximum out of an individuals-
 Direction facilitates changes in the organization-
 Direction provides stability and balance in the organization

SUPERVISION: Supervision is monitoring the environment. Supervision is one

the technique of directing subordinates for better results. Supervision is the
activity carried out to monitor the productivity and progress of employees.

Features of supervisory skills

 Set standards
 Increases the efficiency
 Planning and organizing
 Supervising for effective performance
 Monitoring -
Motivational Factor

MOTIVATIONAL THEORIES: Various motivational studies have found a

correlation between employee engagement and organizational output.

9.9.1 Maslow’s Need Hierarchy Theory : Most of the employees are motive by
the desire to satisfy their needs. A clinical psychologist, Abraham Maslow has
developed a theory on motivation that is coned as Need Hierarchy theory.
Douglas McGregor’s Theory X and Theory Y.
Douglas McGregor in his book ‘The Human side of Enterprise’ published in
1960 stated two theories of motivation; theory X and theory Y.
Theory X
This theory assumes – employees are inherently lazy and will avoid work if
they can. Due to this assumption workers need to be supervised closely and
control systems has to be appropriate.
Theory Y
Theory assumes – Work can be as natural as a rest or play
According to this assumption people are not by nature passive and resist to
Organizational needs.

COMMUNICATION: Communication is the way we interact with fellow humans, the

way we get our message across. The process of communication involves exchanging
facts, ideas, and opinions, emotions between two or more people.
UNIT 10: Controlling.
Definition: George R. Terry and Franklin defined it as -
“Controlling is determining what is being accomplished that is, evaluating
performance and, if necessary, applying corrective measures so that
performance takes place according to plans.”

Herald Koontz and O’Donnell say it as –

“Controlling is the measuring and correcting of activities of subordinates to
ensure that events conform to plans”.

10.3 THE SIX MAJOR PURPOSES OF CONTROL FUNCTION.

 Control makes plans more effective
 Control observes the consistency in the organizational activities
 Control makes organization more effective
 Control provides feedback
 Control makes organization more efficient
 Control is a decision making aid.

10.5 PLANNING AND CONTROL

Controlling involves where the organization would like to be and how to get
there, which involves bridging the gap between performance and goals
decided and strategy determined. It involves three main activities:
a) Situation analysis - where are we now?
b) Objectives - where do we want to be?
c) Strategy and tactics - how can we best reach our goals?
10.14 INVENTORY CONTROL

Inventory control is a most important tool for management to handle

inventory of an organization. Maximum utilization with minimum resources is
the basic aim of any organization. Properly managed and controlled stock,
adds to the income and unnecessary wastages reduces expenses. There are
some important techniques of stock control.

1. Min-Max System – Here stock is divided into two segments. Top most line
and bottom most line is decided. Here if a stock reaches below the bottom
most line it is filled up with fresh stock while taking care of not exceeding
top mostline.

2. Two bin system – Here two bins are used. One is regular and another as
supportive whenever necessary. When a stock from regular bin is over it is
borrowed from thereserved stock bin.

3. Economic ordering quantity – It determines the optimum quantity of that

company should hold, in its given cost of production, demand rate and
other variables.

4. ABC Analysis - Under this system item of inventory are divided under three
main categories i.e. A, B, C. Here classification of ABC analysis is done on
the basis of cost and valuation of those items. This categorization is based
on the Pareto’s principles where situation and majority of activities are
governed by very few attributes.
VED Analysis – According to this analysis stock is categorised according to their necessity
during the production. This is a production based analysis.

1. Vital stock – The stock which are highly necessary for the production process.

2. Essential stock – These are comparatively less vital but work without them cannot be
Managed for few days.

2. Desirable stock – These are stock which is needed but their absence even for some
days will not lead to stoppage of production.

Information and support needs for effective decision making by managers. There are
different types of Management support systems used as tools to control
theinformation–
 UNIT-11: UNIT 11 CO-ORDINATION IN MANAGEMENT

According to Henri Fayol,

“To co-ordinate is to harmonies all the activities of a concern so as to facilitate its
working and its success. In a well-coordinated enterprise, each department or
division works inharmony with others and is fully informed of its role in the
organization. The working schedules of the various departments are constantly
attuned to circumstances.”

According to George R. Terry,

“Co-ordination is the orderly synchronization of efforts to provide the proper
measure, timing and directing of execution of resulting in harmonious unified action
to stated

Definition:
1. According to Louis Allen
“Delegation is the dynamics of management, it is the process a manager follows in
dividing the work assigned to him so that he performs that part which only he,
because of his unique organizational placement, can perform effectively and so that
he can get others to help him with what remains.”

3. F. C. Moore defined delegation as - “Delegation means assigning work to others and

giving them authority to do so”.
UNIT 12 DECISION MAKING:

 T N Dueing and J M Ivancevich defined it as –

“A conscious choice among alternatives followed by action to implement the
decision”
 A Business Dictionary defined it as –
“The though process of selecting a logical choice from the available options”.

 Lyndon B. Johnson said – “Doing what’s right isn’t hard but knowing
what right is”. For effective decision making, a person must be able to
forecast the outcome of each option based on positive and negatives
perspectives, before determining the option that is best for the future
situation.

UNIT 13 EVOLUTIONS OF MANAGEMENT THOUGHTS

13.2 HENRI FAYOL (1841- 1925) : A French management theorist was born in
Istanbul in 1941. His contribution to management concepts is always
remarkable for the industrialization. He has coined five primary functions of
management those are.

1. Planning,
2. Organizing,
3. Commanding,
4. Coordinating,
5. Controlling.
These five points pervaded management thinking in the future. “Command
and control” became the slogan for the authoritative style of management
fashionable through the 1950s and 1960s, though Fayol’s method was more
nuanced than this. His “commanding”, for instance, included energizing
employees, while “controlling” included adapting the overall plan to
changing circumstances.

FREDERICK WINSLOW TAYLOR (1856 – 1915)

13.5 JOSEPH M. JURAN (1904 -2008) : Joseph M. Juran made many

contributions to the field of quality management in his lifetime.

Pareto principle -
In the late 1940’s Juran came across various observations with mathematical
formulas made by, an Italian economist, that twenty percent people owe
eighty percent of the wealth. Here he derived an attributes of 80/20 rule,
ABRAHAM HAROLD MASLOW (APRIL 1, 1908 - JUNE 8, 1970): Abraham H.
Maslow was a American psychologist who is known for his theory that he
proposed “hierarchy of human needs”.

PETER F. DRUCKER (1909 - 2005): Peter F. Drucker, father of Modern

Management,

CHESTER IRVING BARNARD (1886 - 1961): improved product quality."

UNIT 14 RECENT TRENDS IN MANAGEMENT: