BBA 101:Principles &Practices of

Management
Concept of Management
Definition:

Management is the process of planning, organizing, leading, and controlling resources to achieve
specific goals efficiently and effectively.

Nature and Scope:

" Universal Process: Applicable all types of organizations.

" Goal-0riented: Aimed at achieving organizational objectives.
" Continuous Process: Involves ongoing activities.
" Dynamic Function: Adaptable to changing environments.

Relation with Other Social Sciences:

" Economics: Decision making for resource allocation.

" Psychology: Understanding human behavior.
" Sociology: Impact of societal norms on organization.
" Political Science: Influence of political environment.

Evolution of Management Thought

Classical Theory of Management

1. Bureaucracy (Max Weber):

" Emphasizes a structured hierarchical organization.

" Clear division of labor and rules.

" Impersonal relationships among employees.

2. Scientific Management (F.W. Taylor):

Focuses on improving efficiency through scientific methods.

" Time and motion studies.
Standardization of tasks.

" Differential piece-rate system to motivate workers.

3. Process Management (H. Fayol):

" ldentified five primary functions of management: Planning, Organizing, Commanding.

Coordinating, and Controlling.
" Emphasized administrative principles like unity of command and scalar chain.
Neoclassical Theory of Management

1. Human Relations (B.E. Mayo and Roethlisberger):

" Hawthorne Studies: Highlighted the importance of social relations in the workplace.
" Emphasized employee welfare and motivation.

2. Behavioral Science Approach (D. McGregor, A. Maslow, and Others):

" McGregor's Theory Xand Theory Y.

" Maslow's Hierarchy of Needs: Physiological, Safety, Social, Esteem, and Self-actualization
needs.

" Focus on individual behavior and group dynamics.

Modern Management Theories

1. Peter Drucker:

" Emphasized the importance of objectives and performance.

" Introduced the concept of Management by Objectives (MBO).

Management Functions
Planning:

" Concept: Determining the organization's direction.

" Nature: Fundamental to allmanagement functions.
" Importance: Helps in setting objectives and formulating strategies.
" Objectives: Establishing what the organization aims to achieve.
" Policies: General guidelines for decision-making.
" Procedures: Specific methods for handling activities.
" Strategies: Long-term action plans.
" Method of Decision Making: Steps include identifying problerns, generating alternatives, and
choosing the best solution.

Organization:

" Definition: Arranging resources to achieve objectives.

" Theories of Organization: Classical, Neoclassical, and Modern.
" Forms of Organization: Line, Functional, Line and Staff, Matrix.
" Formal and Informal Organization: Formal is structured and official; informal arises
spontaneously.
" Types of Formal Organizations: Business, Government, Non-Profit.
 Line and Staff Relationship: Line managers direct work; staff provide support.
" Span of Management: Number of subordinates under a manager's control.
Authority and Responsibility: Authority is the right to make decisions; responsibility is the
obligation to perform.
Delegation: Assigning responsibility and authority to subordinates.
" Centralization and Decentralization: Degree of decision-making concentration.
" Committees: Groups assigned to deliberate and decide on specific issues.

Staffing:

" Selection: Choosing the right candidates.

" Recruitment: Attracting potential employees.
" Training: Enhancing employee skills.
" Development: Preparing employees for future roles.
Welfare: Ensuring employee well-being.

Directing:

Leadership and Supervision: Guiding and overseeing employees.

" Motivation: Encouraging employees to perform.
" Communication: Sharing information and understanding.

Controlling:
Elements: Setting standards, measuring performance, and correcting deviations.
Process and Style of Control: Techniques include budgetary control, audits, and performance
appraisals.

Techniques of Control: Statistical reports, break-even analysis.

" Social Responsibility of Business: Ethical behavior and contributing to community well-being.

Executive Functions
" Production: Converting resources into finished goods/services.
Marketing: Promoting and selling products.
" Finance: Managing financial resources.
Personnel: Managing human resources.
Planning
Concept: Planning involves setting goals and deciding how to achieve them.
" Nature: Planning is a continuous, pervasive function.
Importance: Provides direction, reduces uncertainty, and improves efficiency.
" Objectives: Goals that the organization aims to achieve.
" Policies and Procedures: Guidelines for decision-making and action.
" Strategies: Long-term plans to achieve objectives.
Method of Decision Making: Process of selecting the best course of action among alternatives.

Organization
Definition: The structured arrangement of people working together to achieve common goals.
" Theories of Organization: Various models and frameworks for structuring organizations.
Forms of Organization: Different types of organizational structures (e.g., functional, divisional,
matrix).
" Formal and Informal Organization: Formal organization refers to the official structure, while
informal organization refers to the network of personal and social relationships.
Types of Formal Organizations: Different categories such as corporations, non-profits,
government agencies.
" Departmentation: Division of an organization into different departments.
Line and Staff Relationship: The distinction between line managers (directly involved in
achieving organizational goals) and staff managers (provide support and advice).
Authority, Responsibility, Delegation: Authority is the right to make decisions, responsibility is
the duty to perform tasks, and delegation is the process of assigning tasks to subordinates.
" Centralization and Decentralization: The extent to which decision-making is concentrated at
higher levels or distributed throughout the organization.
Committees: Groups formed for specific tasks or decision-making purposes.

Staffing
Selection: Choosing the right candidates for the job.
" Recruitment: Attracting candidates to apply for positions.
" Training and Development: Enhancing employees' skills and knowledge.
" Welfare: Ensuring the well-being of employees.

Directing
Leadership and Supervision: Guiding and overseeing employees' work.
Motivation: Encouraging employees to perform well.
Communication: Sharing information effectively within the organization.

Controlling
" Elements of Control: Setting standards, measuring performance, and correcting deviations.
Process and Style of Control: Steps involved in the control process and different approaches to
controlling.
" Techniques of Control: Various methods used to monitor and regulate activities.
Social Responsibility of Business: The obligation of the organization to act in ways that benefit
society as a whole.