Basic Concepts & Principles

MANAGEMENT
The Term ‘Management’ is used to refer the
process of Managing the activities of Enterprise
Management is the attainment of
organizational goals in an effective and
efficient manner through organizational
resources.
Organizational resources include
men(human beings), money, machines and
materials.
 Definitions
Harold Koontz -“Management is art of getting
things done through and with the people in
formally organised groups”
Mary Parker Follet- The act of getting things
done through people.
Frederick Taylor defines “Management as the art
of knowing what you want to do and then seeing
that they do it in the best and cheapest way”
Management is defined in terms of functions
undertaken by the manager to achieve
organisational goals. Management is the
systematic way of doing things.
 Characteristics/Features
Management principles are Universal in nature
Management is an organized activity
Management aims at the accomplishment of
predetermined objectives. (Purposeful)
Management is a social process
Management is a group activity
Management integrates human and other
resources
System of Authority
Management Is a Continuous function
Functional Areas of Management
Production Management (Work analysis
planning , Quality control, Inventory control and
Inspection)
Financial Management (Financing decision ,
Investment decision & Dividend decision)
Personnel Management (Manpower planning,
Recruitment & selection , Training and
development of employees, Compensation)
Marketing Management (Marketing mix
decisions)
Production Management
Concept of Management
Management by Communication
Management by Systems
Management by Results
Management by Participation
Management by Motivation
Management by Exception
Management by Objectives
Process of Management
 FEATURES
Management involves Five functions
These functions are organized to achieve
organizational goals.
Management involves effective and efficient use
of resources
Administration Vs Management
 FUNCTIONS OF MANAGEMENT
PLANNING
ORGANIZING
STAFFING
DIRECTING
CONTROLLING
 PLANNING
• Planning is determining the objectives and
formulating the methods to achieve them.
• During planning one needs to ask oneself the
following:
• Planning is deciding in advance - what to do,
when to do & how to do?
• What resources do I have and do I need to
accomplish the same?
• What are the methods and means to achieve the
objectives?
• Is this the optimal path?
 Elements of Planning
• Purposes or missions
• Objectives-It is the ultimate goal towards which the
activities of the organization are directed
• Strategies-general program of action and deployment of
resources
• Policies-general statement or understanding which guide or
channel thinking in decision making
• Procedures-states a series of related steps or tasks to be
performed in a sequential way
• Rules-prescribes a course of action and explicitly states
what is to be done
• Programs-comprehensive plan that includes future use of
different resources
• Budgets-statement of expected results expressed in
numerical terms
 Principles of Planning
Principle of Commitment
Principle of Flexibility
Principle of Contribution to Enterprise
Objectives
Principle of Efficiency
Principle of Selection of Alternatives
Principle of Timing and Sequence of Operations
Principle of Pervasiveness
Principle of Innovation
Principle of Follow-up
 Steps in Planning
1. Perception of the Opportunities
2. Establishment of the Objectives
3. Building the Planning Premises
4. Identifying the Alternatives
5. Evaluation of the Alternatives
6. Choice of the Course of Action
7. Formulation of Supporting or Derivative Plans
8. Establishing the Sequence of Activities
9. Securing Participation
10. Follow-up
Types of Managerial Decisions:
Programmed & Non programmed
Routine and Basic Decision-making
Individual and Group Decision-making
Tactical and Strategic Decision-making
Planned and Unplanned Decision-making
Organizing
Determining & providing human and non-
human resources to the organizational
structure
Process of bringing together Physical,
Financial and Human resources (human and
non-human )
Developing productive relationship amongst
them for achievement of organizational goals
Organizing Activities
Determine what is to be done/ Division of Work:
Assign Tasks & Duties :
Departmentalization: Link Departments
Delegation of Authority
Decide the Levels at which Decisions are to be
made / Centralization vs. Decentralization:
Decide how to Achieve Coordination:
STAFFING
Definition 1
Staffing involves manning the organization
structure through proper and effective
selection, appraisal & development of
personnel to fill the roles designed un the
structure”
The main purpose of staffing is to put right
man on right job
STAFFING INVOLVES
Manpower Planning
Recruitment, Selection & Placement.
Training & Development.
Remuneration.
Performance Appraisal.
Promotions & Transfer.
DIRECTING/LEADING
Direction is the sum total of managerial
efforts that are applied for guiding and
inspiring the working terms to make better
accomplishments in the organization.
“Directing concerns the total manner in
which a manager influences the actions of
subordinates. It is the final action of a
manager in getting others to act after all
preparations have been completed.”
DIRECTING/LEADING
Provides positive and dynamic leadership
Provides maximum opportunities
Provides proper motivation of personnel
Ability to command & direct people
Elements of Direction
Influencing
Supervision
Motivation
Leadership
Communication
CONTROLLING
Process of evaluating and regulating the
activities of the organisation to ensure they
are in accordance with pre-determined plans
procedure and desired results
TYPES OF CONTROL
Feed Forward Control-Control that attempts to
identify and prevent deviations before they occur
is called feed forward control, sometimes called
preliminary or preventive control.
Concurrent Control-Control that monitors
ongoing employee activities during their
progress, to ensure they are consistent with
quality standards, is called concurrent control.
Feedback Control-In this case, the control takes
place after the action. Sometimes called post-
action or output control
Steps in the Control Process
Establishing the standard of performance
Measuring the actual performance
Comparing the actual with standard
Measuring the variance or deviation
Taking the corrective actions
Principles of Effective Control
Simplicity: Simple and easily understandable
Objectivity: Objective and specific
Promptness: Report the deviations promptly
Economy : Not so much expensive
Flexibility : As per the changing
situation/environment
Accuracy : To detect deviation
Suitability : As per the nature & types of
organisation
Motivating : Designed to secure positive action
Corrective Action : Control system must ensure
corrective actions
 MANAGERIAL SKILLS

CONCEPTUAL

HUMAN

TECHNI
CAL
TECHNICAL SKILLS
A persons’ knowledge and ability to make effective
use of any process or technique constitutes his
technical skills.
For eg: Engineer, accountant, data entry operator,
lawyer, doctor etc.
HUMAN SKILLS
An individuals’ ability to cooperate with other
members of the organization and work effectively
in teams.
For eg: Interpersonal relationships, solving
people’s problem and acceptance of other
employees.
CONCEPTUAL SKILLS
Ability of an individual to analyze complex
situations and to rationally process and interpret
available information.
For eg: Idea generation and analytical process of
information.
MANAGER’S ROLES
Interpersonal role
Informational role
Decisional role
INTERPERSONAL ROLE
Figurehead- ethical guidelines and the principles
of behavior employees are to follow in their
dealings with customers and suppliers
Leader- give direct commands and orders to
subordinates and make decisions
Liaison-coordinate between different
departments and establish alliances between
different organizations
INFORMATIONAL ROLE
Monitor- Evaluate the performance of managers
in different functions
Disseminator- Communicate to employees the
organization’s vision and purpose
Spokesperson- Give a speech to inform the local
community about the organization’s future
intentions
DECISIONAL ROLE
Entrepreneur- commit organization resources to
develop innovative goods and services
Disturbance handler- to take corrective action to
deal with unexpected problems facing the
organization from the external as well as internal
environment
Resource allocator- allocate existing resources
among different functions and departments
Negotiator- work with suppliers, distributors and
labor unions
TYPES OF MANAGERS
FIRST-LINE MANAGERS- often called
supervisors stand at the base of the managerial
hierarchy
MIDDLE MANAGERS- heads of various
departments and organise human and other
resources to achieve organizational goals
TOP MANAGERS- set organizational goals,
strategies to implement them and make decisions
 WHAT MAKE MANAGERS SUCCESSFUL?
Hard work
Smart work
Patience
Out of box thinking
Reading and acquiring knowledge
Ethical consciousness
Collaborative relationship
Perseverance