MANAGEMENT PRINCIPLES AND PRACTICES

1. MANAGEMENT PRINCIPLES AND PRACTICES Dr. R. Krishna FT – MBA – NMIMS FIRST TRIMESTER

2. Definition of Management • Management : On expanding : Manage – men – tactfully Manage – Men – technology Manage – men – as team Manage – competencies Manage – objectives (MBO) Manage – men and things (resources – physical, inanimate) MANAGE – f ( RISKS, REWARDS) Competencies = f (SKATE) (Men/Women- no discrimination) Norway will have, 40% women in all fields, in govt orgs, in corporates and also in NGOs. This is now made as a law.

3. When it comes to manage people, it is said that “people are enigmatic.” • Thus, Management is enigmatic. • Harold Koontz described the present state of management theory as a “jungle.” There can be lots of ambiguity and there will be no recipe book

4. MANAGEMENT IS A FUNCTION OF : M = f(RESULTS, FEEDBACK, RESULTS……) MANAGING THE INTERNAL AND EXTERNAL ENVIRONS IN THE BIO-ECOSYSTEMS, THROUGH VARIOUS EFFECTIVE AND EFFICIENT PROCESSES, WITH THE OBJECTIVE OF ACHIEVING LAID DOWN EXPECTED RESULTS.

5. All is PEOPLE RESOURCE MANAGEMENT • Why? Get into discussion mode: Who Created all that is around us: Except the sun, the moon, air, ocean, sky, stars, and the first human being and the first animals/insects Thereafter the development of clones, artificial insemination, going on the moon, technological advancements and moving towards civilization is all done my people.

6. Definition of “Management” • By Griffin: “A set of management functions directed at the efficient and effective utilization of resources in the pursuit of organization goals.”

7. Definition….contd…. • By Koontz and Weihrich: “Management is the process of designing and maintaining an environment in which individuals working together in groups, efficiently accomplish selected aims.”

8. Peter F. Drucker-Father of Modern Management • Management is an organ, organs can be described and defined only through their functions

9. The difference between Management Principles and Management Functions: • “What should I do (principles) to ensure that I do my job (functions) with effectiveness and efficiency.” • Principles are strategies / processes which enable the individual to do their functions better to achieve laid down goals and objectives • GOALS – qualitative achievements • Objectives – could have a mix of quantitative and qualitative

10. Terry & Franklin… • Management is a distinct process consisting of activities of planning, organizing, actuating, and controlling, performed to determine and accomplish stated objectives with the use of human beings and other resources.”

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

12. Henry Mintzberg… • He has categorized these roles into three groups interpersonal roles Informational roles Decisional roles Description of each of the roles……

13. 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)

14. Informational roles • A manager serves as a monitor by gathering information; • As a disseminator of information • As a spokesperson of the organization

15. 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

16. ALL THE THREE ROLES PUT TOGETHER IS CALLED AS: THE MANAGERIAL WORK ACTIVITY APPROACH

17. The whole management process is actually an integration of the work activity (Mintzberg) and the management functions • MANAGEMENT FUNCTIONS : Planning, Organization, Co-ordination, motivation, and control are Universal. These functions are performed in all organizations – SMEs, Large, not-for-profit organizations, etc.

18. Definitions • Planning : Management functions that involves the process of defining goals, establishing strategies for achieving those goals and developing plans to integrate and coordinate activities • Organizing: management function that involves the process of determining what tasks are to be done, who is to do them, how the tasks have to be grouped, who reports to whom, and where decisions are to be made

19. Leading : management functions that involves motivating subordinates, influencing individuals or teams as they work, selecting the most effective communicating channels or dealing with any with employee behavior issues • Controlling : Management functions that involving monitoring actual performance, compiling actual to standard, and taking action if necessary • Management process : The set of ongoing decisions and work activities in which managers engage as they plan, organize, lead and control.

20. The pyramid to the top • Talk of management levels: • Top level • middle level • Front line supervision • Non-managerial work force

21. Leadership • Blake and Mouton: R1 ---- R2 ------ R3 R1 = RESOURCES R2 = RELATIONSHIPS R3= RESULTS

22. What is leadership? • A sound way of exercising leadership is through the use of what are called as three Rs – Resources, relationships and results. How a person operates in this context can make a difference between organization success and failure

23. THE ;LEADERSHIP GRID : Source: Scientific Methods Inc. X & Y axis on a scale of 1 – 9 CONCERN FOR PEOPLE High 1,9 – Country Club Mgmt Team Mgmt 9,9 5, 5 Middle of the Road Management 1,1 Impoverished Mgmt Authority Compliance 9,1 low High Low CONCERN FOR PRODUCTION

24. How concerns for Production/People affect Leadership Style: 1,9 : Country Club Management : Thoughtful attention to the need of people for satisfying relationships leads to a comfortable, friendly organization atmosphere and work tempo. 1,1 : Impoverished Management : Exertion of minimum effort to get required work done is appropriate to sustain organizational membership 9,1 : Authority Compliance : Efficiency in operations results from arranging conditions of work in such a way that human elements interfere to a minimum degree 9,9 : Team Management : Work accomplishment is from committed people; interdependence to a “common stake” in organization purpose leads to relationships of trust and respect

25. 9+9 : Paternalistic management : Reward and approval are granted to people in return for loyalty and obedience; failure to comply leads to punishment OPPORTUNISTIC MANAGEMENT : In this style, organization performance occurs according to a system of exchanges, whereby effort is given only for an equivalent measure of the same. People adapt to the situation to gain maximum advantage from it. (all leadership points ie. 1,1; 1,9;, etc., converge at a new point – OPM)

26. THE MOTIVATIONAL DIMENSIONS FOR EACH STYLE – • PLEASE REFER TO LEADERSHIP GRID OF BLAKE AND MOUTON.

27. Management….. • Is based on a systematic body of knowledge-laws, principles and concepts – • And this knowledge is universal • If a manager has this fundamental knowledge • And knows how to apply it to a given situation • He should be able to perform the managerial functions efficiently and effectively

28. Management…… • Management Practice is regarded as an art • But, organized knowledge about management is a science • THUS MANAGEMENT IS BOTH AN ART AND A SCIENCE

29. Management ….. • Is also a profession Separation of ownership from control The rules and regulations framed by the govt to protect citizens from exploitation The growth of trade union movement The desired of business leaders for social status And the Impetus of the scientific management philosophy which stresses the need for technically trained professional managers – contributed to the PROFESSIONALIZATION OF MANAGEMENT.

30. Most important human activities is managing Mackenzie King remarked: “Labor cannot do anything without capital, Capital nothing without labor and neither Can do anything without the guiding genius of management.”

31. This should have enabled you to understand what management is at a fundamental level of definition and understanding…….. • Any questions……

32. Evolution of Management Thought • Give a handout titled: “Early streams of Managerial ideas responding to situational demands Put students on discussion mode

33. Schools of Management Thought • It was during the 20th century that a systematic study of management began

34. 4 schools of thought(by: Newman, Summer and Warren) • Productivity approach • Behavioral approach • Rationalistic model approach, and • Institutional approach

35. Hutchison’s classifications • Classical management theory • Human behavior theories • Social and political systems approaches • Ecological systems approach and • Rational decision making concepts

36. THE CONTRIBUTORS ON MANAGEMENT PRICIPLES…

37. Charles Babbage (1792-1871) • Benefits of division of labor • Use of science and mathematics • Emphasis on cost reduction

38. Henry R. Towne • Main contribution is : “That he set the climate and atmosphere for the later application of scientific methods. Of lesser importance was his plan of gain-sharing as a system of wage payment.”

39. Henry Metcalfe (1847-1917) • In 1885, his pioneering work: The Cost of Manufacturers and the administration of Workshops, Public and Private Theory of Management was based on system and control He insisted that all authority should emanate from a given source, with a flow back to that source of detailed information concerning expenditures and accomplishments

40. Henry Laurence Gantt (1816-1919) • Educated from John Hopkins College • Engineer, as draughtsman and later Asst. engineer • His publications: Work, Wage and Profits (1910); Industrial Leadership(1916); and Organizing for Work.(1919)

41. Gantt’s Thoughts…. • Task and Bonus Plan • Daily Balance Chart (Gantt Chart) • Humanizing Science of Management • Important of Leadership • Training of Workers • Social Responsibility of Business (Also called as : Forerunner of modern industrial democracy; also called as “apostle of industrial peace”)

42. Harrington Emerson (1853-1931)- Popularizer of scientific management • Principles of Efficiency (12) 1. Clearly define ideal 2. commonsense 3. Competent Counsel 4. Discipline 5. Fair deal 6. Reliable, immediate, adequate and permanent records 7. Dispatching (production scheduling and control techniques) 8. Standards and schedules 9. Standardized conditions 10. Standardized Operations 11. Written standard practice instructions 12. Efficiency reward

43. According to Ernest Dale, Emerson really advocated the elimination of waste: • Setting definite logical goals for all company operations and making managers down the line understand them so that they would not be seeking private goals of their own • Production planning and scheduling and the use of written standard practices • Better utilization of machine and man

44. d. Cost Accounting • e. Standards and specifications for materials • f. Standardization of parts and products as far as possible • g. A rational approach to capital expenditures • h. Better selection, placement, and fair treatment of employees and a system of financial incentives as equitable as possible

45. Frank Bunker Gilbreth (1868-1924) and Lillian Moller Gilbreth(1878-1972) • FBG: authored: Concrete Systems (1908); Field System (1908); Motion Study (1911); Power of Scientific Management (1912); Fatigue Study (1916); Applied Motion Study (1917, with Lillian Gilbreth); and Motion study for the Handicapped (1920) • The Father of Motion Study was a contemporary of Taylor and Gantt

46. Lillian Moller Gilbreth:Professor of Management at Purdue University. Her famous works: The Psychology of Management (1914) and Quest for the Best Way (1924)

47. Contributions by Frank Gilbreth • Motion study • Time Study • One best way • Training of personnel • Three position plan of promotion (each worker should be considered to occupy three positions: a. the job he held before promotion to his present position b. his present position and c. the next higher job • Part of his work, then would be teaching the man below him and learning from the man above him. In this way, he would qualify for promotion himself and help to provide a successor to his current job.

48. Contributions of Lillian Gilbreth • It should be noted that FBG was greatly assisted by Lillian Gilbreth whom he married in 1904 • Both of them used motion picture films to analyze and improve motion sequences • Both developed the process of chart and the flow diagram to record process and flow patterns used in a work situation • They emphasized written instructions to avoid confusion and misunderstanding (the white list card system) • The Gilbreths urged tha the POM and motion analysis could effectively be applied to huge untapped area of self-management. They started to search into the area of fatigue and its impact o health and productivity.

49. Robert Owen (UK)-The father of personnel management • Contributions: Improvement in Factory and domestic conditions of his employees Social reforms (creating model community out of his mills town; educational reforms) Owen said that his object was not to be a “mere manager of cotton mills, but to introduce principles in the conduct of the people.”

50. MODERN GURUS - POM