INTRODUCTION TO

MANAGEMENT

Principles of Management
(unit 1)
 Unit-I
• UNIT- I
• Introduction, Nature, Scope and Significance of
Management; Management practices from past to
present, Different levels of management, Managerial
skills, Roles & Functions, Manager and Business
environment.

• Planning- Objective of planning, planning process, Types

of planning, Types of plans, Corporate Planning,
Management by Objective, Decision-making- types,
process & techniques, making decision effective.
 Management is…

Efficiency
Getting work
done through
others Effectiveness

1
Basic Purpose of Management

EFFICIENTLY
Using resources wisely
and
And
in a cost-effective way
EFFECTIVELY
Making the right decisions and
successfully implementing them
Figure 1.1
 Management is…
• Concerned with ideas, things and people.
• It involves judicious deployment of
available resources
• To attain predetermined objectives
• Effectively and efficiently.
 Management of Ideas
• These are the thoughts, intentions and
opinions generated in human mind.
• Example: new product, new markets,
improvements etc.
• These ideas are the gateways for the survival
and growth of a firm. It involves the planning
phase of management requiring innovation
and creativity.
• Hence, its management is important.
 Management of Things
• It refers to the mobilization, allocation and
deployment of material, machinery,
technology and other facilities
• To convert ideas into performance and
result
• To achieve predetermined goals
• Effectively and efficientely.
 Management of People
• It involves procurement, development,
retention and integration of human
resources at an organization.
• Assigning, directing, motivating and
controlling them
• And getting the work done
• With employee satisfaction.
 .

Hence, management is
the efficient utilization of
men, material and
resources to achieve
predetermined goals
and objectives
effectively.
 OBJECTIVES OF MANAGEMENT
• Getting Maximum Results with Minimum
Efforts
• Increasing the Efficiency of factors of
Production
• Maximum Prosperity for Employer &
Employees
• Human betterment & Social Justice
IMPORTANCE OF MANAGEMENT
• It helps in Achieving Group Goals
• Optimum Utilization of Resources
• Reduces Costs
• Establishes Sound Organization
• Essentials for Prosperity of Society
 Why Study Management?
• Universality of Management
– management is needed
• in all types and sizes of organizations
• at all organizational levels
• in all work areas
– management functions must be performed in
all organizations
• consequently, have vested interest in improving
management

© Prentice Hall, 2002 1-13

 Nature of Management
• Goal Oriented : predetermined goals and
objectives.
• Pervasive : required at all the levels of all the
organizations like business, military etc.
• Creative Process : based on innovation and
new ideas.
• Continuous Process : never stops and restart
after completion.
• Contingent : depends and varies from situation
to situation.
 Nature of Management (cont.)
• Dynamic Process: it keeps on changing with
the change in environmental factors.
• Intangible force : it can’t be touched but felt.
• Social process : its done by the people, for the
people and through the people.
• Unifying force : it brings together the men,
material and ideas.
• Group phenomenon : it involves management
of a group of people with common objectives.
 Functions of Management
• Planning
• Organizing
• Staffing
• Directing and motivating
• Controlling
• Coordinating
• Decision Making
• Henry Fayol – Five Functions
– Planning
– Organizing
– Commanding
– Controlling
– Coordinating
 PODSCORB
• Planning
• Organizing
• Directing
• Staffing
• Coordinating
• Reporting
• Budgeting (BOTH are the part of
CONTROLLING)
Functions of Management

Figure 1.2
 Levels of Management
Top Level Management CEO
COO
CIO
Middle Level Management General Mgr
Plant Mgr
Regional Mgr
First-Line
Management
Office Manager
Shift Supervisor
Department Manager
Team Leader
3
Types of Managers

Figure 1.3
 Top Management
• Analyze and interpret the changes in the environment.
• Defining the long term objectives of the organization.
• Designing organizational structure.
• To appoint heads and other key members of the
organization.
• Designing and approving the master budget and
departmental budgets.
• Providing overall direction and controlling the organization.
• To coordinate different departments.
• To determine the distribution of profits.
 Middle level management

• Setting the short term goals for their

departments.
• Managing the departments and their working.
• Appointing, directing, motivating and controlling
supervisors.
• Communicating the orders of the top
management and rules to the supervisors.
• Providing the feedback to the top management.
 Lower level management

• To plan and manage the day to day operations of

the organization.
• To manage the work force of an organization.
• To issue orders to the workers.
• To arrange for the tools, material and machinery
to ensure smooth working.
• To maintain discipline and good relations with the
workers in the organization.
• To give feedback to the middle level management
Relative Amount of Time That Managers
Spend on the Four Managerial Functions

Figure 1.4
Basis Management Administration

Meaning Management is an It is concerned with

art of getting things formulation of broad
done through others objectives, plans &
by directing their policies.
efforts towards
achievement of pre-
determined goals.
Nature Management is an Administration is a
executing function. decision-making
function.

Process Management decides Administration

who should do it & decides what is to be
how should he do it. done & when it is to
be done.
Function Management is a Administration is a
doing function thinking function
because managers get because plans &
work done under their policies are
supervision. determined under it.

Skills Technical and Human Conceptual and

skills Human skills

Level Middle & lower level Top level function

function
MANAGEMENT AS A SCIENCE
Science is characterized by following main
features
• Universally acceptance principles

• Experimentation & Observation

• Cause & Effect Relationship

• Test of Validity & Predictability

 MANAGEMENT AS AN ART
Art implies application of knowledge & skill to
trying about desired results. Art has the
following characters
• Practical Knowledge
• Personal Skill
• Creativity
• Perfection through practice
• Goal-Oriented
 Management as a Profession
• A profession may be defined as an occupation that requires
specialized knowledge and intensive academic
preparations to which entry is regulated by a representative
body.
• Specialized Knowledge
• Formal Education & Training
• Social Obligations/ Responsibility
• Code of Conduct
• Representative of Professional Association
• Professional Fee
 Managerial Roles and Skills
Mintzberg identified
three categories of
roles – Decisional,
Informational,
Interpersonal
 Decisional Roles
Roles associated with methods , managers use in
planning strategy and utilizing resources.
– Entrepreneur—deciding which new projects or
programs to initiate and to invest resources in.
– Disturbance handler—managing an unexpected
event or crisis.
– Resource allocator—assigning resources
between functions and divisions, setting the
budgets of lower managers.
– Negotiator—reaching agreements between other
managers, unions, customers, or shareholders.
 Informational Roles
Roles associated with the tasks needed to obtain and
transmit information in the process of managing the
organization.
– Monitor—analyzing information from both the
internal and external environment.
– Disseminator—transmitting information to
influence the attitudes and behavior of employees.
– Spokesperson—using information to positively
influence the way people in and out of the
organization respond to it.
 Interpersonal Roles
Roles that managers assume to provide direction and
supervision to both employees and the organization as a
whole.
– Figurehead—symbolizing the organization’s mission and what
it is seeking to achieve.
– Leader—training, counseling, and mentoring high employee
performance.
– Liaison—linking and coordinating the activities of people and
groups both inside and outside the organization.
 Managerial Skills
• Technical Skills

• Human Skills

• Conceptual skills
Core skills and their use in the
different levels
Managerial levels
Lower Middle Top

Conceptual skills

Human skills

Technical skills
 Qualities of a successful
Manager
• Ability to think
• Physical features (height, weight etc)
• Broad vision
• Clear expression
• Technical ability
• Human relations skills
• Organisational ability
• Dynamic personality
• Emotional stability
• Integrity
Process of Management
 Management Theories
• The development of mgt thought can be
grouped in four major periods :
1.Classical
2.Neo classical
3.Systems Approach
4.Contingency Approach
 Figure 2.2 Subfields of the Classical Perspective on
Management
Focuses on the
individual worker’s
productivity
Focuses on
the overall
organizational
Focuses on the system
functions of
management
 Scientific Management: Taylor
• Frederick W. Taylor (1856-1915)
– Father of “Scientific Management.
• attempted to define “the one best way” to perform
every task through systematic study and other
scientific methods.
• believed that improved management practices lead
to improved productivity.

– Three areas of focus:

• Task Performance
• Supervision
• Motivation
 Principles of Scientific Management

• Science, not rule of thumb

• Right men for right jobs
• Scientific Selection, Training & Development of Workers
• Harmony not discord
• Equal distribution of responsibility
• Division of work
• Maximum Prosperity for Employer & Employees
• Co-oporation not individualism
• Maximum output
 Techniques of Scientific Management
• Scientific task setting
• Work study
• Time Study
• Method study
• Motion Study
• Fatigue study
• Planning the task
• Specialisation of Functional Foremanship
• Standardization of tools and equipments.
• Differential Piece Wage Plan
• Scientific selection and training of workers.
 Benefits of Scientific Management
• Replacement of rule of thumb with planning
• Proper selection and training of employees
• Equal division of responsibilities between the workers and
management.
• Establishment of harmonious relationships
• Standardisation of tools, equipments, materials and work.
• Increased efficiency
• Better utilization of resources
• Elimination of waste
• Scientific determination of fair work.
 Benefits to workers
• Detailed instruction and constant guidance
• Training and development to increase
skills
• Incentive wages for higher production
• Better working conditions
• Less fatigue in work
• Better health
 Benefits to society
• Better quality products at lower cost
• Higher standard of living of people through
better products
• Increased productivity in the economy
• Industrial peace in the country
• Technological development due to
scientific investigation.
 Criticisms of scientific
management
• Exploitation of workers
• Boredom
• No scope for initiative
• Unemployment
• Weakening of trade unions
• No human element
 Henri Fayol
• First came up with the five basic
functions of management—Planning,
Organizing, Staffing, Directing,
Communicating, and Controlling
• First wrote that management is a set of
principles which can be learned.
• Developed Fourteen Principles of
Management
 Administrative Principles
• A principle refers to a fundamental truth.
• It establishes cause and effect relationship
between two or more variables under given
situation.
• They serve as a guide to thought & actions.
• They serve as a guide for managerial decision
making and actions.
Fourteen principles of management by
Henry Fayol
• Division of Labor
• Authority & Responsibility
• Discipline
• Unity of Command
• Unity of Direction
• Subordination of individual interest
• Remuneration
Fourteen principles of management by
Henry Fayol
• Centralization
• Scalar Chain
• Order
• Equity
• Stability
• Initiative
• Esprit de Corps
 Taylor v/s Fayol
• Taylor disregards human • Fayol pays due regards
elements and there is on human element. E.g.
more stress on improving Principle of initiative,
men, materials and Espirit De’ Corps and
methods Equity recognizes a need
• Father of scientific for human relations
management • Father of management
• Stressed on efficiency principles
• Stressed on general
administration
 Taylor v/s Fayol
• These principles are • These are applicable in all
restricted to kinds of organization
regarding their
production activities management affairs
• Scientific • Administrative
management management
• It has micro-approach • It has macro-approach and
discuses general principles
because it is of management which are
restricted to factory applicable in every field of
only management.
THANK YOU