PRINCIPLES OF

MANAGEMENT

UNIT I – INTRODUCTION TO
MANAGEMENT
DR.P.VIKKRAMAN
 ORGANIZATION
 Organization which can be defined as a group
of people working together to create a surplus.
 In business organizations this surplus is profit
 In nonprofit organizations such as charitable
organizations it may be the satisfaction of
needs
 MANAGEMENT
 Definition:
• It is the process of designing and maintaining an
environment in which individuals, working together in
groups, efficiently accomplish selected aims.
 Koontz and Weihrich
• It is the art of knowing what you want to do and then
seeing that it is done in the best and cheapest way.
 F.W.Taylor
 NATURE OF MANAGEMENT
 Multidisciplinary
 Dynamic Nature of Principles
 Relative, Not Absolute Principles
 Management as Profession
 Universality of Management
 Group Effort
 Management is Activity based
 Management is Purposeful
 Management is a Process
 Management is both a Science and an art
 Management is Intangible
 Management Accomplishes Result through others
 IMPORTANCE OF MANAGEMENT
 Helps in Achieving Group Goals
 Optimum Utilization of Resources
 Reduces Costs
 Establishes a Sound Organization
 Maintains Equilibrium
 Essential for Prosperity of the Society
 Modern Management is an Agent of Change
 SCOPE OF MANAGEMENT
 Activity point of View
 Functional Areas of Management
 Management is an Inter-Disciplinary Approach
 Universality of Management
 Essential of Management
 Modern Management is an Agent of Change
 FUNCTIONS OF MANAGEMENT
Subsidiary
Main Functions
Functions
• Planning • Co-ordination
• Organizing • Motivation
• Staffing • Communication
• Directing • Decision Making
• Controlling • Innovation
 MANAGERIAL ROLES

Managerial
Roles

Interpersonal Informational
Decisional Role
Role Role
 MANAGEMENT AS A PROCESS

OUTPUTS (End Result)

Men Goods and
INPUTS (6 M’s)

Money Services
Materials Productivity
Machines Satisfaction
Methods Information
Markets
LEVELS OF MANAGEMENT

TOP
Presiden
t
Vice-
Presiden
MIDDLE
ts
Plant Managers,
Division Managers, Department
Managers

SUPERVISORY/OPERATIVE MANAGEMENT
Foreman, Supervisors, Office Managers, Team
Leaders
 MANAGER
 Meaning:
• A manager is person tasked with overseeing one or
more employees or departments to ensure these
employees or departments carry out assigned duties as
required.
• Depending on the size of the company, there might be a
single, dual or triple management layer involved.
 TEN MANAGERIAL ROLE IDENTIFIED
BY MINTZBERG
 INTERPERSONAL ROLES
• Figurehead role Provide
• Leader role Information
• Liaison role
 INFORMATIONAL ROLES
• Recipient role Process
• Disseminator role Information
• Spokesperson
 DECISION ROLES
• Entrepreneurial role
Use
• Disturbance-handler role Information
• Resource-Allocator role
• Negotiator role
 SKILLS NEEDED BY MANAGERS
 TechnicalSkills
 Human Skills
 Conceptual Skills
 QUALITIES EXPECTING FROM
MANAGERS
 Health and Vigour
 Intelligence
 Moral qualities
 General knowledge (culture)
 Management capacity
 Notions about other functions (activities)
 Strongest skills in the function managed
 DEDICATION
 EVOLUTION OF MANAGEMENT
THOUGHT
Evolution of
Management

Classical Behavioral Modern

Approach Approach Approach

1.Quantitative Approach
1.Scientific 1.Human Relation
Approach 2. System Approach
Management
3.Contigency Theory
2.Administrative 2.Behavioral Science
Approach 4.Social System Approach
Management
5.Decision Theory
3.Bureaucracy 6.7’s Frame work
7.Theory z
 CLASSICAL APPROACH
 Classical theorist formulated principles for
setting up and managing organizations.
 These views are labeled Classical because they
form the foundation for the field of
management thought.
 Major Contributors:
• Frederick W.Taylor
• Henry Fayol
• Max Weber
 SCIENTIFIC MANAGEMENT
 Scientific Management is concerned with
knowing exactly what you want men to do and
then see in that they do it in the best and
cheapest way.
 Frederick .Winslow .Taylor was the pioneer of
the scientific management theory.
 PRINNCIPLES OF SCIENTIFIC
MANAGEMENT
 Replacing rule of Thumbs with science
 Harmony In-group Action
 Cooperation between Management and
Workers
 Maximum Output in Place of Restricted
Output
 Development of Workers through Scientific
Selection and Training
ADMINISTRATIVE MANAGEMENT
 HENRY FAYOL , a French Industrialist, has
been regarded as the real father of modern
management.
 He has divided the activities of an industry into
six groups: Technical, Commercial, Financial,
Security, Accounting and Managerial.
 PRINCIPLES OF ADMINISTRATIVE
MANAGEMENT
 Division of Work
 Authority
 Discipline
 Unity of Command
 Unity of Direction
 Subordination of Individual Interest to the
Common Interest
 Remuneration of personnel
 Contd.,
 Centralisation
 Scalar Chain
 Order
 Equity
 Stability of personnel tenure
 Initiative
 Esprit de corps (Union is Strength)
 BUREAUCRACY
 MAX WEBER Contributed the theory of
bureaucracy to the management thought. He
used this word to mean the specific king of
administrative organization.
 There are Three types of legitimate authority
which are follows:
 Rational-Legal Authority
 Traditional Authority
 Charismatic Authority
 BEHAVIORAL APPROACH
 The Human Behavior approach is the outcome
of the thoughts developed by behavioral
scientists who took at the organization as
collectivity of people.
 Since management involves getting things
done with and through people, the study of
management must revolve around human
behavior.
 HUMAN RELATION APPROACH
 ELTON MAYO was the first person to look into
the matter of human relations emphasizing the
importance of desires, attitudes and feeling of the
workers.
 The Hawthorne studies actually consist of FOUR
different, interrelated experiments. They were:
 Illumination Experiments
 Relay Room Experiments
 Bank Wiring Observation Room Experiments
 Interview Program
 BEHAVIORAL SCIENCE APPROACH
 Behavioral Science developed in parallel under
the overarching theory of Self Actualization
described by Abraham Harold Maslow (1954)
 Maslow’s Hierarchy of Needs is the
fundamental premise that the behavioral
approach to management is built on.
 Self

Actualiza
tion
PYRAMID
–
Personal
Growth
and
Fulfillmen
Esteem Needs – Achievement,
t
Status, Responsibility, Reputation

Belongingness and Love Needs – Family,

Affection Relationships, Work group

Safety Needs – Protection, Security, Order, Law, Limits,

Stability

Biological and Physiological Needs – Basic life needs – Air, Food, Water,
Shelter
 MODERN APPROACH
 It includes the follows:
• System Approach
• Contingency Theory
• Social System Approach
• Decision Theory Approach
• 7’s Framework
 SYSTEM APPROACH
 It is a set of interrelated but separate parts
working towards a common purpose.
 The arrangement of elements must be orderly
and there must be a proper communication
facilitating interaction between the elements
and finally this interaction should lead to
achieve a common goal.
 SYSTEM APPROACH TO
MANAGEMENT
 EXTERNAL
ENVIRONMENT

INPUT (Resources)  OUTPUT

Human  TRANSFORMATION  Products
Capital  Services
Materials

FEEDBACK
 SYSTEM APPROACH
 It helps the dynamic and interrelated nature of
organizations to plan for actions and anticipate
consequences and mutual effects.
 It helps the general managers to maintain
balance among various subsystems and the
organization.
 CONTINGENCY APPROACH
 It is an important addition to the paradigm of
modern management theory and approach
 Extension of system approach.
 It suggest that system approach does not
adequately spell out the precise relationship
between organization and its environment.
 It tries to fill the gap between the organization
and environment, i.e. what should be done in
response to an event in the environment.
 SOCIAL SYSTEM APPROACH
 It extended the implications of human relations
approach further.
 An organization is essentially a cultural system
composed of people who work in co-operation.
 It is similar to behavior approach, except that it
s more formal in nature.
 It is a study and analysis of the concept of the
individual social behavior and the group
behavior as it affects the field of management.
 DECISION-MAKING APPROACH
 It focuses on managerial decision-making which in its
view, is the core management task, pervading all
management functions.
 It has the following features:
• Management is essentially decision-making.
• The members of the organization are decision-makers and problem
solvers.
• Organization can be treated as a combination of various decision
centers.
• Quality of decision affects the organizational effectiveness.
• All factors affecting decision-making are the subject matter of study.
 Mc KINSEY’S 7-S FRAMEWORK
 The framework rest on the proposition that effective
organizational change is best understood in terms of
the complex relationship between strategy, structure,
systems, skills, staff and super-ordinate goals.
 The proposition of the 7-S model suggest that there are
multiple factors which influence an organization’s
ability to change and its proper mode of change.
 Since the variables are interconnected, significant
progress cannot be made in one area.
Mc KINSEY’S 7-S FRAMEWORK
 MANAGEMENT AND SOCIETY
 Social development is the main aim of any
form of organization all over the world.
 But they are not fulfilling their social
responsibilities.
 Over the years the social involvement of
corporate sector has been increasing
 It had ingrained contribution to society as
separate mission in their philosophy of
business
ENVIRONMENTAL FACTORS
 MANAGING GLOBALLY
 Global management is a philosophy of viewing
management in global perspective in terms of
global outlook, using globally viable
technology, offering the product/services
which can satisfy the customer needs in a
global environment maintains a quality in
adherence to global standards fostering a
global organizational and global culture.
 MANAGING GLOBALLY
 Effective international managers need to:
• Accept that knowledge and perceptions are influenced
by cultural background.
• Be able to avoid pre-judgments about others.
• Accept others questioning of their beliefs.
• Be able to communicate respect for different ways of
behaving.
• Show empathy for the feelings of others.
• Be flexible and sensitive to cultural differences.
• Be willing to admit a lack of understanding.
 STRATEGIES FO INTERNATIONAL
BUSINESS
 Strategies to international business and its
marketing take the form of an EPRG model
EPRG MODEL
ETHNOCENTRIC APPROACHES
POLYCENTRIC APPROACHES
REGIOCENTRIC APPROACHES
GEOCENTRIC APPROACHES