MG6851 PRINCIPLES OF MANAGEMENT

1. MG6851 PRINCIPLES OF MANAGEMENT Prepared by Mr. M. ILAYARAJA, ASP/CIVIL, MSEC – KILAKARAI.

2. UNIT - 1 INTRODUCTION TO MANAGEMENT AND ORGANIZATIONS

3. 2 DEFINITIONOF MANAGEMENT Its Nature andPurpose Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selectedaims.

4. 3 The Functions ofManagement The five managerial functions around which managerial knowledge are organized are: planning, organizing, staffing, leading, and controlling.

5. 4 Management as an Essential for AnyOrganization Management applies to small or large organizations, to profit and not-for-profit enterprises, to manufacturing as well as service industries.

6. 5 Managerial Functions at Different OrganizationalLevels • No basic distinction is made between managers, executives, administrators, andsupervisors • All managers carry out managerial functions. However, the time spent for each function maydiffer

7. 6 Time Spent in Carrying Out ManagerialFunctions

8. 7 Managerial Skills and the OrganizationalHierarchy • The four skills for administratorsare: • Technical • Human • Conceptual • Designskills

9. 8 MANAGING: SCIENCE ORART? Managing as practice is an art; the organized knowledge underlying the practice may be referred to as ascience.

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11. 10 Administration andManagement • Administration

12. 11 Administration andManagement

13. 12 THE FUNCTIONS OFMANAGERS • Planning • Organizing • Staffing • Leading • Controlling

14. 13 Definition ofPlanning Planning involves selectingmissions and objectives and the actions to achieve them; it requires decision making.

15. 14 Definition ofOrganizing Organizing involves establishingan intentional structure of roles for people to fill in anorganization.

16. 15 Definition ofStaffing Staffing involves filling, andkeeping filled, the positions in the organizationstructure.

17. 16 Definition ofLeading Leading is influencing peopleso that they will contribute to organization and groupgoals.

18. 17 Definition ofControlling Controlling is measuring and correcting individual and organizationalperformance to ensure that events conform toplans.

19. 18 Coordination The Essence ofManagership It is the essence of managership, for achieving harmony among individual efforts toward the accomplishmentof group goals. Each of the managerial functions is an exercise contributing to coordination.

20. 19 Management asProfession • Existence ofknowledge • Formal teaching ofknowledge • Existence of representativebody • Ethicalstandards • Reasonableremunerations • Legislation and licensing (missing inIndia) • Ongoing professionaldevelopment • CareerPath

21. Major Schools Of ManagementTheory • CLASSICALSCHOOL • BEHAVIORALSCHOOL • QUANTITATIVE SCHOOL • SYSTEMSSCHOOL • CONTINGENCYSCHOOL • CONTEMPORARY /EASTERNAPPROACHES

22. CLASSICALSCHOOL • Scientific Management:- Application of Scientific Method to optimizeproductivity • FREDERICK W.TAYLOR[1856-1915] • HENRY GANTT[1861-1919] • FRANK [1868-1924]& LILLIAN GILBRETH[1878-1972] • HUGO MUNSTERBERG[1863-1916] • Administrative Management:- Emphasizes Role of the manager and the functions ofManagement. • HENRI FAYOL[1841-1925] • HENRIMINZBERG • Bureaucratic Management:- Focuses on Ideal Form of Organization. • MAX WEBER[1864-1920] • PETERDRUCKER

23. BEHAVIOURALSCHOOL • Human Relations:- Dealt with human aspects ofOrganizations • ELTON MAYO [1880-1949] &OTHERS • MARY PARKERFOLLETT • CHESTER BERNARD[1886-1961] • Human Resources:-Motivation and Leadership techniques focusetc. • ABRAHM MASLOW,KURT LEWIN &OTHERS • Behavioural Science:-Personality, Attitude, Groups, Values focusetc. • DOUGLASMcGREGOR • FREDERICKHERZBERG • CHRISARGYRIS • RENAISLIKERT

24. QUANTITATIVESCHOOL • Management Science &MIS:- Uses Mathematicaland • Statistical approaches to solve managementproblems • GEORGE DANTZIGEtc. • DSS & ERP SYSTEMS • Production and Operations Management:-Focuses upon operation and control of production process that transforms resources into finished goods andservices. • JURAN • W.EDWARDSDEMING

25. SYSTEMSSCHOOL • Views Organizations as an interrelated and interdependent set of subsystems functioning as a whole open system interacting with the Environment • LUDWIG VONBERTALANFFY • JAMESROSENZWEIG • KENNETHBOULDING

26. CONTINGENCYSCHOOL • Emphasizes the fit between organizational processes and the characteristics of the situation • PAULLAWRENCE • JAYLORSCH • FRED FIEDLER • JOAN WOODWARD

27. CONTEMPORARYAPPROACHES • Total Quality Management :-Managing the entire organization to deliver quality goods/services to thecustomer • JOSEPH JURAN/W. EDWARDS DEMING/PHILCROSBY • Learning Organization:-All employees involved in the growth& • learning of organization as it deals with the changingenvironment • PETERSENGE • Excellence Approach:- Attributes of Excellence empiricallyderived. • PETERS &WATERMANS • Chaos Theory:- Views Organizations as complex adaptivesystems

28. OTHERAPPROACHES • Indian ManagementApproach:- • Emphasizes value-based and management of mind as well as an attitude of detachment to the outcome but focused concentration on the work inhand. • Japanese ManagementApproach:- • Emphasizes Participative style of Management andcontinuous • improvement.

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30. 29 EarlyContributors • Chinese philosopher Menicus (3rd centuryBC) • ▫ Division oflabour • Greek philosopher Plato (4th centuryBC) • ▫ Specialised labour/employees • Adam Smith and James Watt(1765) • ▫ Industrialisation

31. 30 EarlyContributors • Four management pioneer during industrial revolution • ▫ Robert Owens (1771-1858), Scotish entrepreneur – Concern forworkers • ▫ Charles Babbage (1792-1871), A man behind the computers – Economic principles of manufacturing • ▫ Andrew Ure (1778-1857) – Mechanizationtheory • ▫ Charles Dupin (1784-1873) – Timestudy

32. 31 FREDERICK W.TAYLOR[1856-1915] HENRY GANTT[1861-1919] FRANK [1868-1924]& LILLIAN GILBRETH [1878-1972] HUGO MUNSTERBERG[1863-1916]

33. FW Taylor(1856-1915) • The development of true science of management. • The scientific selection ofworkers. • The scientific education and development of the worker. • Intimate, friendly cooperation between management andlabour. • Criticism: • ▫ Layoff • ▫ Unionism

34. 33 Henry L. Gantt(1861-1919) • Differential ratesystem • ▫ Everyworker • ▫ Supervisor on everyworker • ▫ Supervisor on wholeteam • Coding system – on individual barcharts • ▫ Black on attainingstandard • ▫ Red on belowstandard • ▫ Green on abovestandard

35. 34 TheGilbreths • Frank B. and Lillian M. Gillbreth (1868-1924 and1878-1972) • Fatique and motion –Intertwined • Less motion would raise themorale. • Physicalbenefits.

36. 35 HENRI FAYOL[1841-1925] HENRIMINZBERG

37. 36 Henri Fayol(1841-1925) • Division of labour/work • Authority andresponsibility • Discipline • Unity ofcommand • Unity ofdirection • Subordination of individual to generalinterest • Remuneration ofpersonnel • Centralisation • Scalar chain/hierarchy

38. 37 Henri Fayol(1841-1925) • Order • Equity • Stability oftenure • Initiative • Esprit deCorps

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40. 39 MAX WEBER[1864-1920] PETERDRUCKER

41. 40 Max Weber(1864-1920) • Karl Emil Maximilian "Max"Weber • ▫ Traditional • ▫ Charismatic • ▫ Rational-legal (Bureaucratic) – Ideal • Administrativeclass • Hierarchy • Division ofwork • Officialrules • Impersonalrelationship • Officialrecord

42. 41 Problems inBureaucracy • Invalidity of bureaucraticassumptions • Goaldisplacement • Unintendedconsequences • Inhumanorganisation • Closed-system perspective

43. 42 Mary Parker Follett(1868-1933) • Human relations and organisationalstructure • Individual can grew with through their relationship with other teammembers • “The art of getting things done throughpeople” • Managers (order givers) subordinates (order takers) are in naturalpartnership • Power of group diverse talent something bigger • ‘Holistic model’ -> politics, economics, and biology