Principles of Management

Unit-1

BCA
MANAGEMENT
 By Harold Koontz, “Management is
an art of getting things done through
and with the people in formally
organized groups. It is an art of
creating an environment in which
people can perform and individuals and
can co-operate towards attainment of
group goals”
 Managers carry out their managerial
function
 Applies to any kind of Organisation
 Applies to managers at all
Organizational levels
 Aim is to create a surplus
 Concerned with productivity, implies
effectiveness and efficiency
 Mgt of 4 M’s in the Orgn – Men,
Machine, Materials & money
 Need for management
 To meet the challenges of change
 To Develop resources
 For effective utilization of 7 M’s
 For Directing the organization
 To provide stability to business
 Integration of various interests
 Management provides Innovation to
tackle business problems
 Coordination & Team spirit
NATURE OF MANAGEMENT
 Management is an activity
 Invisible Force
 Goal Oriented
 Management is an Art as well as
Science
 Universal activity
 Accomplishment through the
efforts of Others
 Management is
Multidisciplinary
 Need at all levels
 Management as a continuous
process
 Integrated process
 Management is a group activity
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
 Ithelps in Achieving Group Goals
 Optimum Utilization of Resources
 Reduces Costs
 Establishes Sound Organization
 Establishes Equilibrium
 Essentials for Prosperity of Society
 LEVELS OF MANAGEMENT
 Top management
 Upper middle
management /
Intermediate
management
 Middle
management
 Lower level or first
line management
 FUNCTIONS OF
MANAGEMENT
 Planning

 Organizing

 Staffing

 Directing

 Controlling
 Process of Output
Inputs Management Goods &
Men Planning Services
Money Organizing Productivity
Materials Staffing Growth
Directing Taxes
Methods
Controlling Employment

PROCESS OF MANAGEMENT
 MANAGERIAL SKILLS
 Technical skills -It refers to the ability and
knowledge in using the equipments, techniques and
procedures involves in performing specific tasks.
 Human skills / Behavioral / Inter personal skills-
Human skills refer to the ability to work effectively
with other people both as individuals and as member
of a group.
 Conceptual skills -It comprises the ability to see the
whole organization and the inter-relationship between
its parts. These skills refer to the ability to visualize
the entire picture or to consider a situation in its
totality.
 MANAGERIAL SKILLS
 Decision making skills-Managers particularly at the
upper level must also have decision making skills. These
refer to abilities to break down a complex problem or
situation into its components , to clinically examine its
dimensions , to proceed in a logical & step by step
manner.

 Administrative skills-These involve abilities to act in a

pragmatic manner, to get things done by implementing
plans, to mobilize& organize resources, to harmonize &
coordinate diverse activities & to regulate performance in
an orderly manner.
 Conceptual
Skills

Human skills
(Middle level)

Technical skills
(Lower level)

SKILLS OF THE MANAGER

Managerial Roles by Minzberg
 INTERPERSONAL ROLES
1. Figurehead- In this role a manager performs
symbolic duties required by the status of his office.
Making speeches, bestowing honours, welcoming
official visitors, distributing gifts to retiring employees
are of such ceremonial and social duties.
2. Leader-This role defines the manager’s relationship
with his own subordinates. The manager sets an
example, legitimizes the power of subordinates and
brings their needs in accord with those of his
organization.
3. Liaison-It describes a manager’s relationships with
the outsiders. A manager maintains mutually beneficial
relation with other organization, government, industry
groups, etc.
 INFORMATIONAL ROLES
4. Monitor-It implies seeking and receiving
information about his organization and external
events. An example is picking up a rumour about
his organization.
5. Disseminator-It involves transmitting
information and judgments to the member of the
organization. The information relates to internal
operations and the external environment. A
manager calling a staff meeting after a business
trip is an example of such a role.
6. Spokesman- In this role, a manager speaks
for his organization. He lobbies and defends his
enterprise. A manager addressing the trade union
is an example.
 DECISIONAL ROLES
7. Entrepreneur-It involves initiating change or acting as a
change agent. For example, a manager decides to launch a
feasibility study for setting up a new plant.
8. Disturbance handler-This refers to taking charge when a
organization face a problem or crisis, e.g., a strike, feud
between subordinates, loss of an important customer. A
manager handles conflicts, complaints and competitive
actions.
9. Resource allocator- In this role a manager approves
budgets and schedules, sets priorities and distributes
resources.
10. Negotiator-As a negotiator, a manager bargains with
suppliers, dealers, trade union, agents, etc.
 DEVELPOMENT OF
MANAGEMENT THOUGHT

 Classical Approach / Functional Approach

/ Empirical Approach / Management
Process Approach
 Neo – classical Approach
 System Approach
 Contingency Approach
 CLASSICAL APPROACH
 The salient features of are as follows:-
 Management is viewed as a systematic network
(process) of interrelated functions. The nature and
content of these functions, the mechanics by which each
function is performed and the inter relationship between
these functions is the core of the classical approach.
 On the basis of experiences of, practicing managers,
principles are developed. These principles are used as
guidelines for the practicing executive and basis of
management training.
 Functions, principles and skills of management are
considered universal. They can be applied in different
situations.
 CLASSICAL APPROACH
 Formal education and training is emphasized for
developing managerial skills in would-be Managers. Case
study method is often used for this purpose.
 Emphasis is placed on economic efficiency and the formal
organization structure.
 People are motivated by economic gains. Therefore,
organization control economic incentives.
Classical Approach is based on 3 PILLARS:

 BUREAUCRACY
 SCIENTIFIC MANAGEMENT
 ADMINISTRATIVE THEORY
BUREAUCRACY-
By Max Weber
BUREAUCRATIC APPROACH
 Max Weber a German Social scientist also known as father
of bureaucracy approach of management 1910 ,made a
study of different types of business organization

Features
1. Division of work
2. Rules and regulations
3. Hierarchy of authority
4. Technical competence
5. Record – keeping
6. Impersonal relations
 BUREAUCRATIC APPROACH
 Advantages  Limitations
1. Specialization 1. Rigidity

2. Structure 2. Goal displacement

3. Rationality 3. Impersonality

4. Predictability 4. Compartmentalization
of objectives
5. Democracy
5. Paperwork
6. Empire Building
7. Red Tape
Administrative
Theory-
BY HENRY FAYOL
Classifications of Activities
He classifies business activities into 6:
◦Technical
◦Commercial
◦Financial
◦Accounting
◦Security
◦Managerial
MANAGERIAL FUNCTIONS
 Planning
 Organising
 Commanding
 Co-ordinating
 Controlling
According to Fayol, a manager
requires the following qualities and
skills :-
 Physical Qualities,
 Mental qualities,
 Moral qualities,
 General education,
 Special knowledge, and
 Work Experience
ADMINISTRATIVE THEORY BY
HENRI FAYOL
14 Principles of Management described by Henri
Fayol
 Division of Work
 Parity of Authority & Responsibility
 Principle of One Boss
 Unity of Direction
 Equity
 Order
 Discipline
 Initiative
ADMINISTRATIVE THEORY BY
HENRY FAYOL
 Fair Remuneration
 Stability of Tenure
 Scalar Chain
 Sub-Ordination of Individual Interest to
General Interest
 Espirit De’ Corps (can be achieved through
unity of command)
 Centralization & De-Centralization
Criticism of Administrative
Management Theory
 Management Oriented Theory
 Lack of Importance to Informal
Organization
 Concepts Borrowed From
Military Science
 Mechanical Approach
Frederick Taylor was called as the
father of Scientific management.
His book The Principles of
Scientific management was
published in 1911. Immediately,
its contents became widely
accepted by managers throughout
the world.
 There were no clear concepts of
responsibilities to workers and managers.
 No effective work standards existed.
 Management decisions were based on
hunch and intuition.
 Workers were placed on jobs with little or
no concern for matching their
abilities and aptitudes with the tasks
required.
 Managers and workers considered
themselves to be in continual conflict—any
gain by one would be at the expense of the
other.
 Taylor’s Four Principles of
Management
 Develop a true science for each element of a
worker’s old rule of thumb method
 Job specialization or division of labour
should be a part of each job
 Scientific selection, training and development
of workers
 Close co-operation between managerment
and workers
 Maximum output in place of restricted
output.
 Mental
Revolution
Techniques of Scientific Management
 Time Study
 Motion Study
 Scientific Task Planning
 Standardisation and simplification
 Differential Piece rate system
 Functional Foremanship
Planning of Work
◦ Instruction card clerk concerned with tagging
down of instructions according to which workers
are required to perform their job
◦ Time & cost clerk is concerned with setting a
time table for doing a job & specifying the
material and labor cost involved in it.
◦ Route clerk determines the route through
which raw materials has to be passed.
◦ Shop Disciplinarians are concerned with
making rules and regulations to ensure discipline
in the organization.
Execution of work at shop floor
◦ Gang boss makes the arrangement of
workers, machines, tools, workers etc.
◦ Speed boss concerned with maintaining the
speed and to remove delays in the production
process.
◦ Repair boss concerned with maintenance of
machine, tools and equipments.
◦ Inspector is concerned with maintaining the
quality of product.
Criticism
 Employer’s Viewpoint
◦ Expensive
◦ Time Consuming
 Workers Viewpoint
◦ Unemployment
◦ Exploitation
◦ Monotony
◦ Weakening of Trade Union
◦ Over speeding
 Neo-
classical
Approach
Three Main Pillars
 Hawthorne Experiments
 Human Relations Movement
 Behavioural Approach
 The Hawthorne Studies
Studies of how characteristics of the work
setting affected worker fatigue and
performance at the Hawthorne Works of
the Western Electric Company from 1924-
1932.
Four Phase of Hawthrone
experiments:
Prof. Elton Mayo and his team
conducted researches in four
phases.
 Illumination experiments
 Relay assembly room
experiments
 Mass interviewing programme
 Bank wiring room study
 Illumination Experiment(1924-27):
These experiments were performed to find
out the effect of different levels of
illumination (lighting) on productivity
of labour. The brightness of the light was
increased and decreased to find out the effect
on the productivity of the test group.
Surprisingly, the productivity increased even
when the level of illumination was decreased.
It was concluded that factors other than light
were also important.
 Relay Assembly Test Room Study
(1927-1929):Under these test two small
groups of six female telephone relay
assemblers were selected. Each group was
kept in separate rooms. From time to time,
changes were made in working hours, rest
periods, lunch breaks, etc. They were
allowed to choose their own rest periods
and to give suggestions. Output increased in
both the control rooms. It was concluded
that social relationship among workers,
participation in decision-making, etc. had a
greater effect on productivity than working
conditions.
 Mass Interviewing Programme (1928-
1930): 21,000 employees were interviewed
over a period of three years to find out
reasons for increased productivity. It was
concluded that productivity can be increased
if workers are allowed to talk freely about
matters that are important to them
 Bank Wiring Observation Room
Experiment: A group of 14 male workers
in the bank wiring room were placed under
observation for six months. A worker's pay
depended on the performance of the group
as a whole. The researchers thought that
the efficient workers would put pressure on
the less efficient workers to complete the
work. However, it was found that the group
established its own standards of output, and
social pressure was used to achieve the
standards of output.
Conclusion
Criticism of Hawthorne Studies
 Lacks Validity
 More Importance to Human
Aspects
 More Emphasis on Group Decision-
making
 Over Importance to Freedom of
Workers
Human Relation Approach
◦ A business organisation is not merely a
techno-economic system but also a social
system and involves human element.
◦ An individual employee is motivated not
merely by economic incentives but also by
non economic incentives, psychological and
social interests, needs and aspirations.
◦ The informal groups in the organisation are
more important than individuals and play an
important role in raising productivity.
◦ In place of task-centered leadership, the
employee-centered, humanistic, democratic
and participative style of leadership should be
introduced as it is more effective / productive.
◦ Employees are not necessarily inefficient or
negative in their approach. They are capable of
self-direction and control.
◦ Employees performance can be raised by
meeting their social and psychological needs.
Cordial atmosphere at work place is also
useful for raising productivity.
◦ Management needs social skills along with technical
skills in order to create a feeling (among the
employees) that they are a part and parcel of the
organisation and not outsiders.
◦ Employees need respect and positive feeling from the
management. For this, employees should be
encouraged to participate and communicate freely
their views and suggestions in the concerned areas of
decision-making.
◦ The management has to secure willing cooperation of
employees. The objective before the management
should be to secure cooperative effort of its
employees. For this, employees should be made happy
and satisfied.
 Limitations of Human
Relations Approach
 Too much importance to employees,
and social needs
 Employee-oriented approach to a
limited extent
 Faulty assumption in the theory
 Limited importance to economic
incentives
 Behavioural Approach
 An organisation is a sociotechnical system
 Individual differs in terms of their attitudes,
perceptions and value systems; therefore, they
react differently to the same situation.
 People working in an organisation have their
needs and goals which may differ from the
organisation’s needs and goals. Management
should achieve fusion between organizational
goals and human needs.
 A wide range of factors influence relations
among people
 People’s behaviour as individual may be
different from their behaviour as members
of a group.
 Persons working together in an organisation
form their own informal groups. Such groups
have their own norms, culture and
communication system.
 Informal groups exercise a significant
influence on the attitudes, behavior and
performance of employees.
The Systems Approach
 What’s the system approach?
 Two basic types of the system: closed
and open
Closed systems are not influenced by and
do not interact with their environment. In
contrast, an open system dynamically interacts
with its environment.
 An organization is an open system
 The operating model in organizational
systems
An Organization Is an Open
System
 An organization is a system that interacts with
and depends upon its environment.
Organization’s stakeholders:any group that is
affected by organizational decisions and policies. The
manager’s job is to coordinate all stakeholders to
achieve the organization’s goals.
 Organizational survival often depends on
successful interactions with the external
environment
The Operating Model in
Organizational System

Input Transformation Output

Feedback
Contingency Theory
 “There is no one best way to organize”
 The idea that the organizational
structures and control systems manager
choose depend on—are contingent on—
characteristics of the external
environment in which the organization
operates.
Thank you