HU 302

Principles of Management

Sreejith Alathur, PhD

Office : Main Building 13

Email : sreejith.nitk@gmail.com
Mobile: +91 9400963126

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Introduction to Management – Management science
theory and practice, external environment, management
and society, ethics and social responsibilities, global,
comparative and quality management.

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Scope of Public Administration

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Planning – Principles, process, MBO, Strategies, policies,
planning premises, strategic management and decision
making.
Organizing – Nature, entrepreneuring, reengineering,
organization structure, departmentation, line staff authority,
power, empowerment, decentralization, effective organization
culture.
Staffing and Leading – Human Resource Management,
process of recruitment, selection, performance appraisal,
career strategy, managing change and organization
development, leading, human factor and motivation,
leadership committees, teams, group decision making and
communication.
Controlling – System and process of controlling, controlled
techniques, productivity, operations management and Total
Quality Management.
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Management
 Getting things done through people , both
efficiently and effectively.

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Management…

 The art of application of skills to achieve

desired results.
 Refers to a social group of people.
 Profession.

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What is management?
It is a vast subject
It is an evolving discipline

There are no universally acceptable definition.

As a noun it refers to people in charge of others

As a process it refers to planning, organizing,

staffing, directing.
As a subject it is a body of knowledge taught and
practiced.
Management is defined differently by different
people.

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Definition

“Management 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
“Management is the art of securing maximum
results with minimum effort so as to secure
maximum prosperity and happiness for both
employer and employees and give the public the
best possible service”
-- John F Mee

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Management is simply the process of
decision making and control over the
action of human beings for the expressed
purpose of attaining pre-determined
goals”
-- Stanely Vance
“Management is the art of getting things
done through and with people in formally
organised groups”
--Harold Koontz
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 Management
 Applies to any kind of organization

 Applies to all levels of organization

 Important in day today life of people.

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 Management
 is a distinct process
 Consisting of planning, organizing, actuating
 Controlling performance
 To determine and accomplish objectives
 By the use of people and resources

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 Management involves

 Securing Men
Money
Material
Machinery

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Factors responsible for increasing
significance of management
Globalization- widened challenges and opportunities
Technology- complexity and criticality of processes
and methods
Workforce diversity- dealing with employees of
divergent background.
Awakened customer- customer rules the business
Stringent government norms- environment, labour,
taxation, quality etc.
Innovation- reduced product life cycle.

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Manager
 Is one who contributes to the organizational
goals indirectly
 By directing the efforts of others
 Not by performing the task himself.

 Makes things happen

 Accept challenging jobs
 Never accepts defeats
 Recruit right person for the right job
 Carryout managerial functions.

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Organization

 Systematic arrangement of people

 Brought together
 To accomplish some specific purpose
 Expressed in terms of objectives or
goals.
 e.g.:

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 FUNCTIONS OF MANAGEMENT

 Planning
 Organizing
 Staffing
 Directing
 Communicating
 coordinating
 Motivating
 Reporting
 Budgeting
 Controlling
 Decision making

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Planning
 Process of defining goals
 Establishing strategies for achieving
those goals
 Develop plans to coordinate activities
 E.g.: Business plan
Marketing plan

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Organizing

 Prescribing formal relationship among

people and resources.
 Process of grouping activities in
systematic manner.

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Staffing
 Ensure qualified employees available at
all levels

 Finding the right people with right skill

for the right job

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Directing
 Leading
 Influencing

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Communicating
 Transferring information
 Ideas
 Understanding
 Feeling among people

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Coordinating
 Coordinate the interdependent
activities
 Contribute to the achievement of
overall objective

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Motivating
 Pushes one towards performing a
certain action.

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Reporting
 Transferring information- Higher
level

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Budgeting
 Preparing a statement of allocation
of resources in financial terms

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Controlling
 Comparing actual performance
with standards
 Take corrective actions.

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Decision making
 Process of generating alternatives
 Evaluating alternatives

 Making choices

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Is Administration and management one
and the same?
There is no universally accepted view on this point.
American school of thought says

Administrators think-top level function

Managers do- lower level function

British school of thought says

Management is a wider concept than administration

Administration is a lower level function of day to day

activities
Management is a rule making and enforcing activity.

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Management and administration

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Management- SCIENCE OR ART?

What is science?
Systematic body of verifiable knowledge

Principles capable of general application

Developed through observation,

experimentation and validation.

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What is an art?
Arts require vision, knowledge and
communication.
Obtaining results through application of skill

Art is based on the principles developed by

science
THUS MANAGEMENT IS BOTH AN ART
AND SCIENCE

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Levels of management

Top
Management

Middle
management

Junior/first line
management

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Top managers
 Organization’s most senior executives.
 Responsible for providing the overall direction
of the firm.
 Make decisions which affect the entire firm
 They set goals for the organization.
 They do not direct the day-to-day activities of
the firm.
 Direct the company to achieving the objective.
 Responsible for the performance of the
organization.

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 E.g.
 Chairman of the board
 President
 Managing director
 Chief executive officer
 Chief operating officer
 Vice president
 Director
 General manager

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 Functions of top management:
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1. Determine objectives for the

organization:
 profit, business growth, competitive
pricing, marketing methods, widening the
area of sales.

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2.Frame the policy:
 E.g.:
 Production policy – quality, product
variety, schedule,
 Marketing policy - advertisement, sales
promotion technique, pricing the product,
channel of distribution, Commission,
discounts,
 Personnel policy: discounts, placement,
training, remuneration
 Financial policy: Procurement of funds,
sources of finance, management of
earnings.
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3. Organizational Framework:
 Determine structure to executing the plans.

4. Assemble the Resources:

 Men, Machines, Material, Money

5. Control the Operations through

Organization:
 Budget, cost, statistical quality control and
accounting devices.

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 Middle managers
 Subordinate to the firm’s top managers.
 Responsible for carrying out the goals set by the
management.
 Motivate and assist first-line managers to achieve
business objectives.
 Communicate upward
 Offering suggestions and feedback to top
managers.
 More involved in the day today working of a
company.
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 E.g.:
 Divisional manager
 Senior manager
 Plant manager
 Department manager

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 Functions of Middle management:
 To execute the various functions of
organization.
 To co-operate among themselves, with
the top management and supervisors – for
smooth function.
 To understand the interlocking of
departments in major policies.
 To achieve co-ordination between the
different parts of the organization.
 To develop and train employees

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Junior managers
 Responsible for the daily management
of line workers.
 Employees who actually produce the
product or offer the services.
 They do not set goals for the
organization.
 They have very strong influence on the
company.
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 E.g.:
 Section head
 Officer
 Executive
 Supervisor

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 Functions of Junior level management:

 To issue orders and instructions to the workers

 To plan the activities of the section.
 To classify and assign jobs to the workers.
 To direct and guide the workers about work
procedure.
 To look after the proper maintenance of tools,
machineries etc.
 To solve the problems of workers.
 To inform management about the problem
 To maintain discipline among the workers
 To maintain good human relations.

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Managerial skill
 Abilities and behavior that are crucial to
success in a managerial position.

 General skill: Manager must possess.

 Specific skill: Related to managerial
success

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 CONCEPTUAL SKILLS

Top level H
U
TE
M
CH
A
NI
Middle level N
CAL
S
SKI
K
LLS
Supervisory ILL
level/entry
level S

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Management as a set of skills

 The four basic management

functions require a set of skills to be
carried out properly.

 Because most managerial tasks are

unique, ambiguous, and situation-
specific, there is seldom one best
way to approach them.

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Management as a set of skills

 Four major categories of skills will help you become a good

manager:
 Strategic Skills - the ability to see “the big picture”, focus on key
objectives without getting mired in details, and having a sense
what is happening inside and outside the company.
 Task-Related Skills - the ability to define the best approach to
accomplish personal and organizational objectives. They include
consideration of all resources, including time, organizational
structure, financial resources, and people. They also involve the
ability to prioritize, remain flexible to make necessary changes,
and ensure that value is being created

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Management as a set of skills
 People-Related Skills - getting work done through others and
with others. Include the ability to delegate tasks, share
information, resolve conflicts, be a team player, and work with
people from very different backgrounds
 Self-Awareness Skills - Being aware of your personal
characteristics can help you adapt to others and can help you
understand why you react to them the way you do. These skills
can help you to avoid rushed judgments, appreciate the nuances
of particular situations, size up opportunities, capitalize on your
personal strengths, and avoid situations in which you are likely to
fail.

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Skills for Managerial Success
Strategic Skills
 Environmental assessment
scanning
 Strategy formulation
 Mapping strategic intent and
defining mission
 Strategy implementation
 Human resource
congruency
Task Skills
 Setting and prioritizing
objectives
 Developing plan of action
and implementation
 Responding in a flexible
manner
 Creating value
 Working through the
organizational structure
 Allocating human resources
 Managing time efficiently
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Skills for Managerial Success (continued)
People Skills Self-Awareness Skills
 Delegating  Personal adaptability
 Influencing  Understanding personal
 Motivating biases
 Handling conflict  Internal locus of control
 Win-win negotiating
 Networking
 Communicating
 Verbal

 Nonverbal

 Listening
 Cross-cultural management
 Heterogeneous teamwork

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General Skills
 1. Conceptual skill:
 Mental ability to co-ordinate
organization’s interests and activities.
 Mental ability to analyze and diagnose
complex situations.
 Understanding how organizational units
work together
 How the organization fit in to its
competitive environment.
 e.g.: decision making 63
2. Interpersonal skill or
Human skill
 Ability to work with other people.
 Ability to understand and motivate other
people
 Ability to interact effectively with
organizational members.
 E.g.: Managing conflict

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3. Technical skill
 Ability to apply specialized knowledge

 Involves understanding and demonstrating

proficiency in workplace.

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4. Political skill
 Manager’s ability to build a powerbase.
 Manager use power to achieve organizational
objective.

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Specific skill
 Controlling the organization’s environment and
its resources

 Organizing and co-coordinating

 Handling information

 Providing for growth and development

 Motivating employees and handling conflicts.

 Strategic problem solving. 69

Management Competencies:

A cluster of related knowledge,

skills and attitudes related to
effective managerial performance.
 1. Analytical skill:
 Ability to analyzes and understand the
information

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 2. Decision making skills:

 Process of generating and

evaluating alternatives and making
choices among them.

 Ability to take the correct decision.

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 3. Communicating skill:
 Ability to transfer information, ideas,
feeling among people.

 Ability to speak effectively

 Good listener

 Providing feedback

 Managing conflict

 Negotiating 72
 4. Motivating Skill:

 Ability to motivate people

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 5. Coordinating skill:

 Ability to ensure that persons who perform

inter-dependent activities work together to
attain the objective.

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 6.Leadership skills:

 Lead the subordinates

 Influence the subordinates

"Leadership is a function of knowing yourself,

having a vision that is well communicated,
building trust among colleagues, and taking
effective action to realize your own
leadership potential."
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 Leadership Traits and Skills
Traits Skills
 Adaptable to situations • Clever (intelligent)
 Alert to social environment • Conceptually skilled
 Ambitious and achievement • Creative
orientated • Diplomatic and tactful
 Assertive • Fluent in speaking
 Cooperative • Knowledgeable about group task
 Decisive • Organised (administrative ability)
 Dependable • Persuasive
 Dominant (desire to influence • Socially skilled
others)
 Energetic (high activity level)
 Persistent
Leaders will also use:
 Self-confident
Integrity, Honesty, Compassion,
 Tolerant of stress
Humility
 Willing to assume responsibility

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Henry Mintzberg…

 He has categorized these roles into three

groups
interpersonal roles
Informational roles
Decisional roles

Description of each of the roles……

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Management as a set of roles

 Day-to-day management activities are routine,

orderly, and rational.

 These include:
 Interpersonal roles - communication with superiors,

peers, subordinates, and people from outside the

organization.
 Information Roles - obtaining, interpreting, and giving
out information.
 Decisional Roles - choosing among competing

alternatives.
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Interpersonal Roles

 A manager serves as a figurehead – a

symbol; as a leader, ie., hires, trains,
encourages, fires, remunerates, judges; and
as a liaison between outside contacts and the
organizational)

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Informational roles

 A manager serves as a monitor by gathering

information;
 As a disseminator of information
 As a spokesperson of the organization

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Decisional Roles

 A manager serves as an entrepreneur by being:

An initiator
Innovator
Problem discoverer
Designer of improvement projects
As a disturbance handler of unexpected situations
As a resource allocator and
As a negotiator

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 ALL THE THREE ROLES PUT TOGETHER
IS CALLED AS:

THE MANAGERIAL WORK ACTIVITY

APPROACH

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 The whole management process is actually an

integration of the work activity (Mintzberg) and the

management functions

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Nature and characteristics of
Management:
 Management is an activity.
 It is a purposeful activity.
 It is concerned with the efforts of a group.
 Management is getting things done.
 It applies economic principle.
 It involves decision-making.
 It coordinated all activities and resources.

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 It is a universal activity.
 It is an integrating process.
 It is concerned with directions and control.
 It is intangible.
 It is a profession.
 It is an interdisciplinary approach.
 It is an economic resource.
 It is dynamic, not static.

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Importance of Management:

 1. Effective utilization of resources

 2. Development of Resources.
 3. To incorporate Innovations.
 4. Integrating various Interest groups.
 5.Stability in the society.

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