Introduction to Principles of Management

Information and Computer Studies, Dept. University of Santo Tomas November 2005/May 2011

Overview
Definition of Management Functions of Management Levels of Management Managerial Skills Managerial Roles Management Principles

Definition of Management Management Sayings

Management is nothing more than motivating other people.- Lee Iacocca Good management consists in showing average people how to do the work of superior people. John D. Rockefeller Good management is the art of making problems so interesting and their solutions so constructive that everyone wants to get to work and deal with them.Paul Hawken What gets measured gets managed. - Peter Drucker Art of getting things done through people - Mary Parker Follett

Definition of Management
Art of getting things done through people (definition by Mary Parker Follett) This definition calls attention to the fact that managers achieve organizational goals by arranging for others to perform whatever tasks may be necessary not by performing the task themselves The process of planning, organizing, leading and controlling the efforts of organization members and of using all other organizational resources to achieve stated organizational goals

Functions of Management
Planning Organizing Leading Controlling

Planning Function of Management

Planning means looking ahead and chalking out future courses of action to be followed. It is a preparatory step. It is a systematic activity which determines when, how and who is going to perform a specific job.

Steps in Planning Function

1. 2. 3. 4. 5. 6.

Establishment of objectives Establishment of Planning Premises Choice of alternative course of action Formulation of derivative plans Securing Co-operation Follow up/Appraisal of plans

Characteristics of Planning
Planning is goal-oriented. Planning is looking ahead. Planning is an intellectual process. Planning involves choice & decision making. Planning is the primary function of management Planning is a Continuous Process. Planning is all Pervasive. Planning is designed for efficiency. Planning is Flexible.

Advantages of Planning
Planning facilitates management by objectives. Planning minimizes uncertainties. Planning facilitates co-ordination. Planning improves employees moral. Planning helps in achieving economies. Planning facilitates controlling. Planning provides competitive edge. Planning encourages innovations.

Disadvantages of Planning
Rigidity Misdirected Planning Time consuming Probability in planning False sense of security Expensive

Planning
Selection of goals for the organization Establish programs Consider feasibility deciding what to do evaluate use of resources set organizational goals determine tactical direction

Organizing Function of Management

Organizing is the function of management which follows planning. It is a function in which the synchronization and combination of human, physical and financial resources takes place. All the three resources are important to get results. Therefore, organizational function helps in achievement of results which in fact is important for the functioning of a concern

Staffing Function of Management

The managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal and development of the personnel to fill the roles assigned to the employers/workforce.

Organizing (and Staffing)

Means that managers coordinate the human and material resources of the organization structuring the firm establishing communications networks Staffing the recruitment, placement, and training of qualified personnel to do the organizations work

Organizing (and Staffing)

Directing Function of Management

DIRECTING is said to be a process in which the managers instruct, guide and oversee the performance of the workers to achieve predetermined goals. Directing is said to be the heart of management process. Planning, organizing, staffing have got no importance if direction function does not take place.

Leading
Describes how managers direct and influence subordinates, getting others to perform essential tasks By establishing the proper atmosphere, they help their subordinates do their best selecting the most effective communication channels directing and motivating people

21 Qualities of a Leader John Maxwell

1. Character 2. Charisma 3. Commitment It separates doers from dreamers 4. Communication Without it you travel alone 11. Listening To connect with their hearts, use your ears 12. Passion Take this life and love it 13. Positive Attitude 16. Responsibility 19. Servanthood 21. Vision

21 Laws of Leadership John Maxwell

1. The Law of the Lid Leadership ability determines a persons level of effectiveness 2. The Law of Influence The true measure of leadership is influence nothing more nothing less 3. The Law of Process Leadership develops Daily, Not in a Day 6. The Law of Solid Ground Trust is the Foundation of Leadership 7. The Law of Respect People naturally follow leaders stronger than themselves 12. The Law of Empowerment Only secure leaders give power to others 21. The Law of Legacy A leaders lasting value is measured by succession

Controlling
determine if the firms performance is on target Involves three main elements: Establishing standards of performance Measuring current performance and comparing it against the established standards Taking action to correct performance that does not meet those standards

Controlling Function of Management

Controlling consists of verifying whether everything occurs in confirmities with the plans adopted, instructions issued and principles established. Controlling ensures that there is effective and efficient utilization of organizational resources so as to achieve the planned goals. Controlling measures the deviation of actual performance from the standard performance, discovers the causes of such deviations and helps in taking corrective actions

Process of Controlling
1. 2. 3.

4.

Establishment of standards Measurement of performance Comparison of actual and standard performance Taking remedial actions

Basic Steps in Control Process

Managerial Skills
Robert L. Katz, educator and business executive identified three basic types of skills: technical, human conceptual

Technical Skills
Ability to use the tools, procedures, and techniques of a specialized field The manager needs enough technical skill to accomplish the mechanics of the particular job he or she is responsible for

Human Skill
Is the ability to work with, understand and motivate other people either as individuals or as groups Managers need enough of this human relations skill to work with other organization members to lead their own work group

Conceptual Skill
Is the mental ability to coordinate and integrate all of the organizations interests and activities Involves the managers ability to see the organization as a whole and to understand how its parts depend on each other Involves the managers ability to understand how a change in any given part can affect the whole organization A manager needs enough conceptual skills to recognize how the various factors in a given situation are interrelated, so that the actions he or she takes will be the best interests of the total organization

Levels of Management
Strategic level Tactical level Operational level
Top

Middle

First Level or First Line (Rank and File)

Operational employees

Strategic Level
Also known as the top level People at this level establish organizational goals and work with the internal environment Set the corporate direction E.g. CEO, CIO, CTO, COO Board of Directors

Tactical Level
Also known as the middle level Allocate resources to meet objectives of top management

Operational Level
Also known as the first level or first line Supervise day-to-day operations like order entry, credit checking, and inventory control

Conceptual

Conceptual Conceptual

Human

Human Human Technical Technical First Level Management Second Level Management Technical Third Level Management

Managerial Roles of Mintzberg

Interpersonal Role Figurehead role, leader role, liaison role Informational Role Monitor role, disseminator role, spokesperson Decisional Role entrepreneurial manager; disturbance handler resource allocator, and negotiator

Henri Fayols (1841-1925) 14 Principles of Management

Division of Labor Authority Discipline Unity of Command Unity of Direction Subordination of Individual Interest to the Common Good Remuneration Centralization The Hierarchy Order Equity Stability of Staff Initiative Esprit de Corps

Henri Fayols (1841-1925) 14 Principles of Management

Division of Labor the more people who specialize, the more efficiently they can perform their work. This principle is epitomized by the modern assembly line Authority managers must give orders so that they can have things done Discipline members in an organization need to respect the rules and agreements that govern the organization Unity of Command each employee must receive instructions about a particular operation from only one person

Henri Fayols (1841-1925) 14 Principles of Management

Unity of Direction those operations within the organization that have the same objective should be directed by only one manager using one plan Subordination of Individual Interest to the Common Good in any undertaking the interests of employees should not take precedence over the interests of the organization as a whole Remuneration compensation for work done should be fair to both employees and employers

Henri Fayols (1841-1925) 14 Principles of Management

Centralization decreasing the role of subordinates in decision making is centralization; increasing their role is decentralization. Fayol believed that managers should retail final responsibility but also need to give their subordinates enough authority to do their jobs properly The Hierarchy the line of authority in an organization often represented today by the neat boxes and lines of the organization chart runs in order of rank from top management to the lowest level of the enterprise

Henri Fayols (1841-1925) 14 Principles of Management

Order materials and people should be in the right place at the right time. People in particular should be in the jobs or positions most suited for them Equity managers should be both friendly and fair to their subordinates Stability of staff a high employee turnover rate is not good for the efficient functioning of an organization

Henri Fayols (1841-1925) 14 Principles of Management

Initiative subordinates should be given the freedom to conceive and carry out their plans, even though some mistakes may result Esprit de Corps promoting team spirit will give the organization a sense of unity.

References
Management by James A.F. Stoner and Charles Wankel Management Information Systems 8th Edition by Raymond McLeod Jr. and George Schell