Principles and Practices of Management: DR (Capt) C M Chitale

Principles of Management
Principles and Practices of Management
Dr (Capt) C M Chitale
Professor & Head
Department of Management Sciences
University of Pune,Pune 411007
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I – Introduction to Management
II - Planning
III – Organizing
IV – Direction
V - Staffing
VI – Controlling
VII – Coordination
VIII- Decision Making
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I. Introduction to Management
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Agenda
1. Introduction
a. Business
b. Organization
c. Administration
d. Management
2. Why Management? Objectives, Efficiency and Effectiveness
3. Different Roles of Manager
4. Survival of Organization – Internal and External Environment
5. Management – Whether Science or Art? Different Approaches to
Management
6. Evolution of Management thought
7. Contribution of Henry Fayol and F. W. Taylor
8. Different Functions of Management
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1. Introduction
a. Business
• Business may be identified as any activity which leads to the
creation of utilities of goods and services for the satisfaction
of human wants in return for a price.
b. Organization
• C.H. Nothcott has applied the term organization to
“arrangements by which tasks are assigned to men and women
so that their individual efforts contribute effectively to some
more or less clearly defined purpose for which they have been
brought together”.
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1. Introduction
c. Administration
• “Administration” is fundamentally the direction of business
affairs - 3 main Elements:
I. Formulation of goals
II. The choice of ways & means to achieve these goals
III. The direction of the people in some group purpose
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1. Introduction
d. Management
• 8 M’s of management
I. Men
II. Money
III. Material
IV. Machines
V. Methods
VI. Markets
VII. Milieu
VIII. Minutes
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1. Introduction
d. Management
• Is an artful science
• Direction of people towards predetermined goal
• Accomplishment, of the desired objectives by establishing an
environment favorable to performance by people operating in
the organized groups
• A multipurpose organ, manages a business, manages managers
and manages workers & work
• Is a process of getting things through the people for the
successful accomplishment of the organizational goals
• Is always the art of the possible, art of the acceptable and art
of the fruitful
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1. Introduction
d. Management
• Definitions
– Dr. William R Spriegel: Management is an executive function
which is primarily concerned with carrying out of the broad
policies laid down by the administration; it is that function of an
enterprise which concerns itself with the direction & control of
the various activities to attain the business objectives.
– S George: Management consists of getting things done through

others. Manager is one who accomplishes the objectives by
directing the effort of others.
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2. Why Management? Objectives, Efficiency and

Effectiveness
 Why Management?
• A Manager is
– One who can step on your toes without damaging your shine
– One who can bring about an excellent, compromise between the
individual objective and organizational objectives of a worker
– One who can get extra-ordinary work from an ordinary worker
 Objectives
• To make profit, the logical and publicly desirable aim of the
management should be a surplus.
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Survival of Organization – Internal and External

Environment
 The General Environment consists of all conditions in
external environment that form a background context for
managerial decision making.
 Typical external environmental issues include:
• Economic Conditions
• Social Cultural Conditions
• Legal
• Technological Conditions
• Natural Environment conditions
• Ethical
 Growth and Development is the strategy for Survival
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Effectiveness
 Objectives
• “ In search of excellence” Thomas J. Peters & Robert
H.Waterman identified the following 8 attributes of successful
firms.
i. Were oriented toward action
ii. Learned about the need of their customers
iii. Promoted managerial autonomy and entrepreneurship
iv. Achieved productivity by paying close attention to the needs of
their people
v. Were driven by a company philosophy often based on the values
of their leaders
vi. Focused on the business they knew best
vii. Had a simple organization structure with a lean staff
viii. Were centralized as well as decentralized, depending on
appropriateness.
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Effectiveness
 Efficiency and Effectiveness
• Efficiency is doing things right, Ability to do things right.
• Effectiveness is doing the right things, setting right job.
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Effectiveness
 Efficiency and Effectiveness
• Managerial effectiveness:
– Information
» Functional Information
» Organizational Information
» Environmental Information
– Skills
» Functional skills
» Interpersonal Skills
– Vision
» Insight: The understanding of how is his job contributes to
the objectives of his organization
» Foresight: How the job is likely to develop in future
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3. Different Roles of a Manager (by Mintzberg)

 Interpersonal Roles
• The figurehead role (performing ceremonial and social duties
as the organization’s representative)
• The leader role
• The liaison role (particularly with outsiders)
 Informational Roles
• The recipient role (receiving information about the operation
of an enterprise)
• The disseminator role (passing information to subordinates)
• The spokesperson role (transmitting information to those
outside the organization)
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3. Different Roles of a manager

 Decision roles
• The entrepreneurial role
• The disturbance-handler role
• The resource-allocator role
• The negotiator role (dealing with various persons and groups
of persons)
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4. Management – Whether Science or Art? Different

Approaches to Management
 Managing: Science or Art
 Three important characteristics of science:
• It is an systematized body of knowledge & uses scientific
methods for observation
• Its principles are evolved on the basis of continued
observation & experiment
• Its principles are exact and have universal applicability
without any information.
 What is ‘Art’?
• ‘Art’ refers to the way of doing specific things
• It indicates how an objective is to be achieved
• It is know-how to accomplish a desired concrete results
• Getting the things done
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 Elements of Science
• Science is organized knowledge.
• Scientific approach first requires clear concepts – words and
terms that are exact, relevant to the things being analyzed &
informative to the scientists & practitioner alike.
• Theory is a systematic grouping of interdependent concepts
and principles which give a framework to or tie together, a
significant area of knowledge Principles in management, like
those in the physical sciences, are descriptive or productive
and not prescriptive.
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 Different Approaches to Management
* For figure refer page 19 Par
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Different Approaches to Management
Classical School
(People are Rational)
Scientific Mgt School Organisational School

•Babbage Charles •Fayol Henri
•F W Taylor •Weber Max
•Gilbreths •Mooney & Reilly
•Grantt Henry •Chester Barnard
•Herbert Simon
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Contribution by F.W. Taylor

 F.W. Taylor is generally acknowledged as “Father of Scientific
Management”.
 Principal concern
• increasing efficiency in production, not only to lower costs &
raise profits, but, also to make possible increased pay for
workers through their higher productivity.
 The fundamental principles – underlying the scientific

approach to managing (according to F.W. Taylor)
• Applying rules of thumb with science (organized knowledge)
• Obtaining harmony in group action, rather than disorder.
• Achieving Cooperation of human beings, rather than chaotic
individualism
• Working for maximum outputs, rather than restricted output.
• Developing all workers to the fullest extent possible for their own
and their company’s highest prosperity.
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Contribution by Henry Fayol

 14 Principles and Management teaching by Henry Fayol
i. Division of work
ii. Authority & Responsibility
iii. Discipline
iv. Unity of command
v. Unity of Direction
vi. Subordination of Individual interest to general interest
vii. Remuneration of personnel
viii. Centralization
ix. Scalar Chain
x. Order – A place for everything & everything in its place
xi. Equity is a combination of kindliness & Justice
xii. Stability of tenure of personnel
xiii. Initiative
xiv. Espirit de Corps
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Behavioural School
(People are Social and Self-Actualizing)
•Robert Owen
•Hugo Munsterberg
•Elton Mayo
•Mary Parker Follett
•Abraham Maslow
•Douglas McGregor
•Chris Argyris
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Quantitative School
(People can use applied mathematics )
•Management Science
•Operations Management
•Management Information System
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Quantitative School
• Characterized by:
1. Primary Focus on Decision Making The end result of
problem analysis will include direct implications for
managerial action.
2. Based on Economic Decision Theory Final actions are
chosen on such criteria as costs, revenues, and rates of
return on investment.
3. Use of Formal Mathematical Models Possible solutions to
problems are specified as mathematical equations and then
analyzed according to mathematical rules and formulas.
4. Frequent Use of Computers Heavy reliance is placed on
computers and their advanced processing capabilities
(Schermerhorn, 1989)
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 Quantitative School
• Management Science
– Applies Mathematical Analysis to decision Making
• Operations Management
– Application of quantitative methods to the organizational tasks of
production and operations control
• Management Information Systems
– Management Information Systems (MIS) are integrated programs
for the collection, analysis and dissemination of information to
support management decision making.
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Integration School
(There is no one best way to Manage)
•Contingency Theory
•System Theory
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Evoluation of Management thought

 Integration School
• Contingency Theory
– Contingency theory is based on the notion that the proper
management technique in a given situation depends upon the
nature and conditions of that situation.
• Systems Theory
– A system may be defined as a goal-oriented organism that is
composed of parts interrelated in such a way that the total
system is greater than the sum of its parts. For any organism, the
number one objective is survival.
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Contemporary School
(People are Complex)
•Global
•Theory Z
•McKinsey 7 S
•Excellence
•Quality/ Productivity
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 Contemporary School
• Theory Z
– Ouchi and Jaeger (1978) studied Japanese and
American management practices and classified them
under three headings”
» Type J forms which use typical Japanese
Management practices
» Type A firms which use typical American
management techniques
» Type Z firms which are those highly successful
American firms that use many of the Japanese
management practices.
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 Contemporary School
• Mc Kinsey – 7s Factors
– Strategy, or the plans that
» determine the allocation of an organization’s scarce resources
and
» commit the organization to a specified course of action
– Structure, or the design of the organization that determines
» the number of levels in its hierarchy and
» the location of the organization’s authority
– Systems, or the organizational processes and proceduralized reports
and routines
– Staff, or the key human resource groups within an organization,
described demographically.
– Style or the manner in which managers behave in pursuit of
organizational goals.
– Skills, or distinct abilities of the organization’s personnel
– Superordinate goals (shared values), or the significant meanings or
guiding concepts that an organization instils in its members (Pascale
and Athos, 19 81).
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Different Functions of Management

a. Planning,
b. Organizing,
c. Staffing,
d. Leading,
e. Controlling
f. Coordination
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What have we covered:

1. Introduction
a. Business
b. Organization
c. Administration
d. Management
2. Why Management? Objectives, Efficiency and Effectiveness
3. Different Roles of Manager
4. Survival of Organization – Internal and External Environment
5. Management – Whether Science or Art? Different Approaches to
Management
6. Evolution of Management thought
7. Contribution of Henry Fayol and F. W. Taylor
8. Different Functions of Management
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II. Planning
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II. Planning
1. What is Planning?
 Planning involves selecting from among alternative future
courses of action for the enterprise as a whole and for
every department or section within it.
 Planning bridges the gap between from where we are to

where we want to go.
 Planning is an intellectually demanding process
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II. Planning
2. Steps of Planning
 Being Aware of opportunity
 Setting Objectives or goals
 Considering planning premises
 Identifying alternatives
 Comparing Alternatives in light of goals sought
 Choosing an Alternative
 Formulating supporting plans
 Numberizing plans by making Budgets
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II. Planning
3. The Hierarchy of Plans
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II. Planning
Vision Mission
 Involves thinking  Defines current business
strategically about activities
 Firm’s future business 
plans Highlights boundaries of
 Where to “go” current business
 Tasks include  Conveys
 Creating a roadmap of  Who we are,
the future  What we do, and
 Deciding future business
position to stake out
 Where we are now
 Providing long-term  Company specific, not
direction generic —
 Giving firm a strong so as to give a company its
identity own identity
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III. Organizing
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III. Organizing
1. Formal & Informal Organization, Forms of

Departmentation
 Organizing is defined as the management function of
assigning duties, grouping tasks, establishing authority, &
Allocating resources to carry out a specific plan.
• Formal Organization: means the Intentional structure of roles
in a formally organized enterprise
• Informal Organization: A network of personal and social
relations not established or required by the formal
organization but arising spontaneously as people associate
with one another
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III. Organizing
1. Formal & Informal Organization, Forms of

Departmentation
 Forms of Departmentation:
i. Function
ii. Product or Service
iii. Territory
iv. Customer
v. Processes
vi. Project
vii. Matrix
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III. Organizing
2. Line and staff organization, Authority,

Responsibility, Accountability, Power,
Centralization and Decentralization, Delegation of
Authority
 Line and Staff Organization
• The line organization refers to those departments which are
held directly responsible for accomplishing the major
activities of the organization.
• Staff departments refer to those that are not directly involved
in the mainstream activity of the organization or department.
 Authority
• It is the right to give orders and power to exact obedience
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III. Organizing

Authority
 Responsibility & Accountability
• Responsibility refers to the obligation that is created when an
employee accepts a manager’s authority to delegate tasks or
assignments.
• Accountability refers to the fact that employee will be judged
by the extent to which they have fulfilled their responsibilities
(Both cannot be delegated).
 Power
• Power is used in terms of ability or capacity to do something
or to get intended results.
• Power is ability to exert influences in the organization
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III. Organizing

Authority
 Centralization and Decentralization
• Centralization refers to concentrating the power and authority
near the top, or in the head of an organization.
• Decentralization is dispersing the power and decision making
to successively lower levels of organization.
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III. Organizing

Authority
 Comparison between Delegation and Decentralization
• Delegation is a process while decentralization is the end result
of a deliberate policy of making delegation widespread in the
organization.
• Delegation is between superior & Subordinate while
decentralization is company wide. Delegation is between top
management and departments or divisions of the organization
• In delegation, the delegator exercises supervision and control
over the delegatees, while in decentralization, top
management exercises broad & minimum control.
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IV. Direction
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IV. Direction
1. Communicating
• Definition of communication: “Communication as a transfer
of information from the sender to the receiver with the
information being understood by both the sender and the
receiver” – Koontz / O’Donnel.
 Four fundamentals of communication
i. Communication is a perception
ii. Communication is expectation
iii. Communication makes demands and
iv. Communication and information though different are largely
interdependent
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IV. Direction
Five Factors contributing towards successful

communication
• Source
• Message
• Channel
• Receiver
• A destination or a goal
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IV. Direction
Model of Communication
Feedback
Thought Encoding Transmission Reception Decoding Understanding

of Message
Sender Receiver
Noise
A Communication Process Model
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IV. Direction
Barriers of Effective Communication

 Barriers
• Lack of planning
• Un-clarified Assumptions
• Semantic Distortion
• Poorly expressed messages
• Loss in Transmission or poor retention
• Poor listening & premature evaluation
• Impersonal communication
• Distrust, Threat or Fear
• Insufficient period for adjustment to change
• Information overload.
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IV. Direction
2. Leading
 Definition of Leadership
• Leadership is the process of Influencing and supporting others
to work enthusiastically toward achieving objectives
• Leadership is the catalyst that transforms potential into
reality
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IV. Direction
Leading –Leadership Traits

 Stogdills Trait factors
 Intelligence & Scholarship: Physical traits, Personality,
Social Status & Experience, Task Orientation
 Ghiselli’s personnel traits
 Very Important : Decisiveness , Intellectual capacity, Job
achievement, orientation , self-actualization feelings, Self-
confidence, Management Ability-team builder
• Moderately Important: Affinity for working classes drive &
Initiative, need for a lot of money, need for job security,
personal maturity
• Almost No importance
– Masculinity Vs. Femininity
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IV. Direction
Leadership Continuum
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IV. Direction
Leading – Autocratic verses Democratic Leader

 Autocrat & Democrat Leader
Autocratic Democratic
• An autocratic leader is work- centered or • This type of leadership centralizes managerial

leader-centered. authority.
• He concentrates all the authority and all the • The leader’s decisions are taken after
decision- making powers in himself. consultation with his followers and after their
• He structures the complete work situation for participation in the decision-making process.
his employees. • He involves the members of his group in the
• There is no process; they simply do what they decisions on the feasibility and workability of
are told to do. an idea, or a job and its content, and on the
• He tolerates no deviation from the orders. extent and the content of the problems that
• His subordinates fully depend upon him and affect them.
are unaware of the goals of the organization. • He believes that their co-operation in the
• The leader takes and assumes full attainment of organizational goals can be
responsibility for decision making, for enlisted only if they are committed to the
initiating action, and for directing, motivating organization, and that commitment can be
and controlling his subordinates. ensured only by an honest and open
communication of ideas with them and by the
development of a team spirit.
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IV. Direction
Leading
The Managerial
Grid
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IV. Direction
Leading
Hersey &
Blanchard's
Situational
Leadership
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IV. Direction
3. Motivation –
• The Need – Want – Satisfaction Chain
Give rise Which

Needs to Wants cause Tensions
Which Which
give rise Actions result in Satisfaction
to
Need – want – satisfaction Chain
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IV. Direction
Motivation
 Motivation
• Differences between motivation and satisfaction
Motivation Results
Satisfaction
DIFFERENCES BETWEEN MOTIVATION AND SATISFACTION

Motivation is the drive to satisfy a want (achieve an outcome);
satisfaction is experienced when the outcome has been achieved.
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IV. Direction
 Maslow’s - The Hierarchy of Needs Theory
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IV. Direction
 The Hertzberg’s Model
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IV. Direction
 Maslow’s Theory
Vs Herzberg’s
Theory
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IV. Direction
Employee Moral and Satisfaction

• Morale is a feeling on the part of the employee , of being
accepted & belonging to a group of employees, through
adherence to common goals & confidence in the desirability
to those goals
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V. Staffing
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V. Staffing
1. Staffing
 Definition of Staffing: Staffing is defined as
filling positions in the organization structure
through identifying work-force requirements,
inventorying the people available, recruitment,
selection, placement, promotion, appraisal,
compensation, and training of needed people.
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Staffing
 Job Analysis is the systematic study of job

requirements and the factors that influence the
performance of those job requirements. This is the
first step in the staffing process and is designed to
identified who is to do what, where, when, and
how.
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Staffing
According to McCormick(1976) job analysis usually

concentrates on :
1.Work Activities
2. Performance Standards
3. Job-related Tangibles and Intangibles
4. Job Context
5. Personal Requirements
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Staffing
The objective of Human Resource Management process is to attract an
effective work force, which requires four basic activities:
1. To identify human resource needs by monitoring growth, retirements,
and terminations.
2. Recruitment activities.
3. Selection process.
4. Orientation of new employees.
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Staffing
Forecasting HR Supply and Demand

Recruitment and Selection
Orientation / Induction
Training and Development
Replacement
Performance Appraisal
Compensation and Benefits
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Staffing
Four C’s Model for Human Resource Management:

1. Competence
2. Commitment
3. Congruence
4. Cost-effectiveness
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VI. Controlling
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VI. Controlling
 The Control functions essentially insures that planned

performance is achieved with a minimum of disorder and
disruptions
 Types of controlling
• Feed forward controls
• Concurrent (prevention) control
• Feedback controls
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Controlling
 The Process of Control

i. Establishing Standards: Physical, Technical, Monetary,
Managerial, time standards, Qualitative Standards
ii. Determining Performance standards
iii. Measuring performance: Ways of measuring performance,
a. Observation
b. Reports both oral and written
c. Automatic Methods
d. Inspections, tester samples
iv. Comparing performance with standards and analyzing
deviations: Comparison between ‘what is’ and ‘what
should be’
v. Taking corrective action, if needed
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Controlling
 Controlling Key Function Areas

• Financial Control:
– Return on Investment (ROI)
» ROI = Sales X Profit
Investments Sales
– Ratio Analysis (RA)
» RA simply involves selecting two or more components of a
firms financial statement and expressing their relationship
as a percentage ratio
– Profit and loss control
– Budgets
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Controlling

• Inventory Control:
– Purposes
» Establish the maximum and minimum amounts of inventory
to have available
» Keep inventory levels and costs at desired minimum
» Provide feedback about the movement of inventory and
changes in inventory controls
» Signal management when items reach or fall below the
minimum (required) level
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Controlling

• Quality Control:
– Activities Involved
» Setting Standards
» Inspection
» Statistical techniques
» Testing
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VII. Coordination
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VII. Coordination
Major task in the organizing process is that of coordination.
The activities of different departments/units are required to be linked
together to assure the achievement of overall organizational goals and the
attainment of synergy.
This is done through coordination, or the process of linking the activities of
the various departments in the organization.
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Coordination
The departments in an organization are basically interdependent, as they
depend upon one another for the resources that are required to perform their
respective tasks.
James Thompson(1967) identified three major forms of interdependence:
1. Pooled,
2. Sequential, and
3. Reciprocal.
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Coordination
Pooled Interdependence: The lowest level of interdependence is called

pooled interdependence. Departments with this low degree of
interdependence tend to operate with little interaction, as the output of
each of the units is pooled at the organizational level.
Sequential Interdependence: When two departments operate in a state of
sequential interdependence, the output of one department becomes the
input for the other in a sequential manner.
Reciprocal Interdependence: The most complex and interrelated level is
reciprocal interdependence, whereby activities flow both ways for both
departments.
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Coordination
 Characteristics of Good Co-Ordination

• Co-Ordination is a continuous process carried on by the managers.
• Co-ordination should not be made through orders.
• Co-ordinating activities must respond to time, policies, programs
and objectives.
• Co-ordinating approach should be balanced and as far as possible
it should be of both the types – vertical as well as horizontal.
• It should be based on personal contact, mutual co-operation,
mutual confidence, good human relations and above all on the
continuity principles.
• It should aim at morale boosting of the workers.
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Coordination
 Principles of Co-ordination
• Principle of Early Beginning – The success of co-ordinating
activities depends on the beginning itself. If it has started at an early
stage it proves fruitful. Planning is the beginning of an enterprise. Co-
ordination should from this very stage start functioning.
• Principle of Direct Contact – Instead of issuing orders and
instructions it is better and helpful if the co-ordinating parties meet
personally and talk over the matter. This helps in mutual
understanding and creates mutual confidence
• Principle of Reciprocity – This helps in co-ordinating the efforts of
each other thus help in establishing an effective and harmonious
relation between each other.
• Principle of Continuity – Co-ordination is a continuous process. It
goes on relentlessly from the very beginning.
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VIII. Decision Making
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VIII. DECISION MAKING
Decisions and Decision Making
A decision may be defined as a choice made from available alternatives.
Four decision-making activities:
1. The manager identifies the existence of a problem or an opportunity to

improve a situation.
2. The manager generates a set of alternate courses of action.
3. The manager selects one of the alternatives.
4. The manager implements the selected course of action.
84
Types Of Decisions
 Programmed Decisions: are those that are applied to routine

situations that have occurred often and for which decision
rules and procedures have been developed and used again and
again. These rules are recorded as the organization’s standard
operating manual / procedures (SOM / SOP )
 Non-programmed Decisions: are applied to non-routine
situations that are new and different from situations
experienced in the past. There are no standard methods that
appear to be appropriate. So manager must apply judgment,
intuition, and creative thinking to the development of
alternatives that are compatible with past operating
procedures and organizational policy.
85
Decision Making Environments

 Certainty: A state of certainty exists only when the manager knows the
available alternatives as well as the conditions and consequences of
those actions.
 Risk: A state of risk exists when the manager is aware of all the
alternatives, but is unaware of their consequences.
 Uncertainty: Most significant decisions made in today’s complex
environment are formulated under a state of uncertainty, where there
is an unawareness of all the alternatives and so also the outcomes–
even for the known alternatives.
 Ambiguity: The most difficult decision situation is the state of
ambiguity, in which the problem to be resolved or the goals to be
reached are not clear.
86
Models of Decision Making

 Classical Model:
 Is a prescriptive approach that is based on critical
economic assumptions. Traditional management theory
assumed that managers made decisions to serve the
economic interests of the organisation.
 Administrative Model (Simon, 1987):

 This model is a normative approach in that it does not
prescribe how decisions should be made, instead it
describes how decisions are actually made.
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When faced with a decision situation, Manager should:
Classical model Administrative model

Obtain complete and Use incomplete and imperfect
perfect information information
Eliminate uncertainty Are constrained by bounded
Evaluate everything rationally rationality
and logically Tend to satisfy
… and end up with a decision … and end up with a decision

that best serves the interests that may or may not serve the
of the organisation interest of the organisation
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Administrative Model of Decision Making
Simon’s model is based on two concepts:

1) Bounded rationality infers that decision makers have
limits or boundaries on the extent to which they can
be rational. The decision maker’s rationality is limited
by inherently individualized beliefs, values, attitudes,
education, skills, habits, and unconscious reflexes. It is
also limited by the complexity of the organization and
its environments as well as the amount of information
to be processed and the amount of time and money
needed to rationalize the situation. Because of these
and other limitations, managers usually satisfice.
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2) Satisficing infers that the decision maker will tend to

select the first solution alternative that satisfies some
minimal set of outcome expectations. That is, the
manager is not in a position to sort through all the
alternatives in search of that single course of action
that will maximize the economic returns for the
organization. Instead, the manager will probably opt
for the first solution that appears to resolve a problem
situation, even if better solutions are believed to
exist. Limited time and money usually discourage
in-depth analysis, especially when an apparently
acceptable solution has already been identified.
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The Steps of Rational Decision Making
1) Recognize and Define the Decision Situation

2) Identify Appropriate Alternatives
3) Evaluate Each Alternative
4) Select the Best Alternative
5) Implement the Selected Alternative
6) Evaluate the Results and follow-up
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Behavioural Nature of Decision Making
1) Political Forces and Coalitions

One of the major behavioral influences in decision making is the
existence of political forces
Within the organization, a coalition is defined as an informal
alliance among individuals or groups that is designed to achieve
some common objective.
2) Intuition
Intuition can be defined as an innate belief about something
without conscious analysis.
3) Escalation of Commitment
Too often, managers make decisions and then become so
committed to that course of action, that they continue with it
long after it becomes quite obvious that the results are less than
successful, or that better alternatives are now available.
92
Deciding Who is to Decide
Individual Decisions
Consultative Decisions
Group Decisions
93
Quantitative Decision Making Tools
Payoff Matrix
Payoff Matrix depicts the probable value of each of the
decision alternatives, by displaying the various
outcomes and the probabilities of their occurrence.
Decision Tree
Decision Tree is graphic representation of the sequence
of decisions required in determining the expected
values of alternative courses of action.
Queuing Models
Queuing Models are used by managers to control various
sorts of waiting lines.
94
Quantitative Decision Making Tools
Distribution Models
Distribution Model helps the marketing manager deal
with the problems of product distribution.
Inventory Models
Inventory Model helps the manager determine how
much inventory to maintain.
Game Theory
Game Theory is a technique for the application of
computers to the measurement of outcome under a
variety of contingencies.
95

Principles and Practices of Management: DR (Capt) C M Chitale

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Principles and Practices of Management: DR (Capt) C M Chitale

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Principles of Management

Principles and Practices of Management

– S George: Management consists of getting things done through

2. Why Management? Objectives, Efficiency and

Survival of Organization – Internal and External

2. Why Management? Objectives, Efficiency and

2. Why Management? Objectives, Efficiency and

2. Why Management? Objectives, Efficiency and

3. Different Roles of a Manager (by Mintzberg)

3. Different Roles of a manager

4. Management – Whether Science or Art? Different

5. Management – Whether Science or Art? Different

5. Management – Whether Science or Art? Different

* For figure refer page 19 Par

Different Approaches to Management

Scientific Mgt School Organisational School

Contribution by F.W. Taylor

 The fundamental principles – underlying the scientific

Contribution by Henry Fayol

Different Approaches to Management

Different Approaches to Management

Different Approaches to Management

Evoluation of Management thought

Different Approaches to Management

Different Functions of Management

What have we covered:

 Planning bridges the gap between from where we are to

 Planning is an intellectually demanding process

3. The Hierarchy of Plans

1. Formal & Informal Organization, Forms of

1. Formal & Informal Organization, Forms of

2. Line and staff organization, Authority,

2. Line and staff organization, Authority,

2. Line and staff organization, Authority,

2. Line and staff organization, Authority,

Five Factors contributing towards successful

Thought Encoding Transmission Reception Decoding Understanding

A Communication Process Model

Barriers of Effective Communication

Leading –Leadership Traits

Leading – Autocratic verses Democratic Leader

• An autocratic leader is work- centered or • This type of leadership centralizes managerial

• The Need – Want – Satisfaction Chain

Give rise Which

Need – want – satisfaction Chain

DIFFERENCES BETWEEN MOTIVATION AND SATISFACTION

 Maslow’s - The Hierarchy of Needs Theory

 The Hertzberg’s Model

Employee Moral and Satisfaction

 Job Analysis is the systematic study of job

According to McCormick(1976) job analysis usually

Forecasting HR Supply and Demand

Four C’s Model for Human Resource Management:

 The Control functions essentially insures that planned

 The Process of Control

 Controlling Key Function Areas

 Controlling Key Function Areas

 Controlling Key Function Areas

Major task in the organizing process is that of coordination.

The activities of different departments/units are required to be linked

together to assure the achievement of overall organizational goals and the

This is done through coordination, or the process of linking the activities of