Principles & Practice of Management

Management
Management as a Discipline Management as a Group Management as a Science Management as an Art Management as a Profession Management as a Process

Nature & Characteristics of Management

Management is Goal-Oriented Management is a continuous force Management is a Coordinative process Management is an Intangible force Management is a part of Group Effort Management Balances Results through the Cooperation of Others. Management Accomplishes Effectiveness & Efficiency.

Nature & Characteristics of Management

Management is a Dynamic Discipline Management is a Science as well as an Art Management is Pervasive or Universal

Continued
Verifiable Principles- Everybody can verify the principles by repeating the experiments. The results are same every time. Universal Application- They gave some result everywhere if the prescribed conditions are satisfied.

Management as an Art
Body of Knowledge Personalized Application of Knowledge and Skills Practice Creativity

Management as a Profession
Specialized Knowledge Restricted Entry Based on Formal Training Representative Association Ethical Code Social Responsibilities Professional Fee

Administration
Administration is concerned with laying down objectives of an enterprise, formulates its policies, determining the broad organization structure, and overall control of the undertaking.

Management and Administration

American Viewpoint: Administration is a higher level function, whereas management is a lower level function. British Viewpoint: Management is the generic term and includes administration. Modern Viewpoint: Both the terms are used interchangeably.

Administration and Management

Top Management

Middle Management

Lower Management

Classification of Management Levels

Top Management Middle Management Lower or Supervisory Management

Qualities of a Successful Manager

Ability to Think Broad Vision Clear Expression Technical Ability Human Relations Skills Organizational Ability Dynamic Personality Emotional Stability Integrity

Managerial Skills
R.L. Katz has given three types of managerial skills as follows: Technical Skills Humans Skills Conceptual Skills Analytical Skills Administrative Skills

Functional areas Of Management

Finance Function Production Function Marketing Function Personnel function Purchase Function Public Relations Function Legal Function

Henry Fayol : Principles of Management

Division of Work Authority and Responsibility Discipline Unity of Command Unity of Direction Subordination of Individual to General Interest Remuneration of Personnel Centralization

Fayol Principles
Scalar Chain or Hierarchy Order: a place for everything & everything in its place Equity Stability of Tenure of Personnel Initiative Esprit de Corps: Team Spirit

Scientific Management
F.W. Taylor: Father of Scientific Management Scientific Management is the substitution of exact scientific investigation and knowledge for the old individual judgement or opinion in all matters relating to the work done in the shop. Scientific Management includes finding the efficient method of production, scientific selection and training of workers, proper allotment of duties and work and achieving cooperation between workers and management.

Scientific Management
In short, scientific management involves: Scientific study and analysis of work; Scientific selection and training of employees; and Standardisation of raw materials, working conditions and equipment.

Business Ethics
Business Ethics refers to the moral principles which should govern business activities. They are concern with what is right and what is wrong while doing the business

Social Responsibility
Social responsibility of business means obligation to act in a manner which will serve the best interests of the society.

Why Social Responsibility

Social Entity Self-Interest Moral Justification Public Image Consumers Awareness

Social Towards Different Groups

Owners/Investors Employees Customers Suppliers Government Community & Society

Planning
Acc to Killen Planning is the process of deciding in advance what is to be done, who is to do it, how it to be done and when it is to be done.

Nature of Planning
Planning is an intellectual activity. Planning involves selection among alternatives Planning is Forward- Looking Planning is related to objectives Planning is the most basic of all management functions Planning is a pervasive function of management.

Significance of Planning
Focuses Attention on Objectives Ensures Economical Operations Reduces Uncertainty Facilitates Control Encourages Innovation & Creativity Improves Motivation Improves Competitive Strength Facilitates Coordination

Types of Planning
Strategic Planning Operational Planning Tactical Planning

Time Span of Planning

Long-range Planning Intermediate or Medium-range Planning Short-range Planning

Process of Planning
Establishing Objectives Collection of Information and Forecasting Development of Planning Premises Search of Alternatives Evaluation of Alternatives Selection of Plan & Development of Derivative Plans

Essential Requirements of an Effective Plan

The plan should be specific. The plan should be logical. The plan should be complete and integrated. The plan should be flexible. The plan should be capable of being controlled.

Key Principles of Planning

Principle of Contribution to Objectives. Principle of Pervasiveness of Planning. Principle of Limiting Factors. Principle of Flexibility. Principle of Navigational Change. Principle of Commitment.

Barriers to Effective Planning

Lack of Reliable data Lack of initiative Costly Process Rigidity in Organisational Working Non-acceptability of Change External Limitations Psychological Barriers

Measures to Overcome Limitations of Planning

Setting Clear-cut Objectives Management Information System Careful Premising Business Forecasting Dynamic Management Flexibility Availability of Resources Cost-Benefit Analysis

Decision Making
It is the process of selection from a set of alternative courses of action which is thought to fulfill the objectives of the decision problem more satisfactorily than other.

Characteristics of Decision-Making
It is a process of choosing a course of action from among the alternative courses of action. It is a human process involving to a great extent the application of intellectual abilities. It is the end process preceded by deliberations and reasoning. It is always related to the environment. It involves a time dimension and a time lag.

Characteristics.
It always has a purpose. It involves all actions like defining the problem and probing and analysing the various alternatives which take place before a final choice is made.

Types of Decisions
Routine and Strategic Decisions Policy and Operating Decisions Organisational and Personal Decisions Programmed and Non-programmed Decisions Individual and Group Decisions

Stages in Decision-Making
Defining the Problem Analysing the Problem Collection of Data Developing Alternatives Review of Key Factors Selecting the Best alternative Implementing the Decision

Techniques of Decision-Making
Marginal Cost Analysis Cost-Benefit Analysis Operations Research Linear Programming Network Alaysis

Organisation Structure
Organisation is a framework of duties and responsibilities through which an enterprise functions. It defines the scope of activities of the enterprise by laying down the structure of relationships. It is the mechanism through which management directs, coordinates and controls the activities of the enterprise. It involves enumeration & identification of activities dividing among various members or departments and establishing authority relationship among them for the accomplishment of certain objectives.

Process of Organising
Determination of objectives Division of activities Creating & grouping of jobs Assignment of groups of jobs Creation of Managerial Hierarchy Establishing Integration Mechanism