management theory practice

7/18/2019 Management Theory Practice

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PRINCPLES & PRACTICES OFMANAGEMENT



Definitions

Management is the process of designing and maintaining an environment in whichindividuals working together in groups efficiently accomplish selected aims.

- Weihrich and Kuontz

The use of people and other resources to accomplish objectives.

- oone and Kurtz

The process by which managers create! direct ! maintain and operate purposiveorganizations through systematic! coordinated! cooperative human effort.

- Mc. "arland

Management is a multi-purpose organ that manages a business! manages amanager and manages workers and work.

- #eter $rucker



Management- Science & Art

Science

Adances !"#no$%edge

Proes

Predicts

Defines

Measres Im'resses

Art

Adances !"'ractice

Fee%s

Gesses

Descri!es

O'ines E('resses



)*" Std" Management

+ti%i,ation of resorces est 'erformance is a gien sitation To ac*iee 're-determined o!.ecties Interna% and E(terna% Enironmenta% factors affecting

!siness For form%ating cor'orate strateg" To face com'etitie c*a%%enges For R &D

To nderstand t*e im'act of c*ange To nderstand t*e im'ortance of /a%it" To nderstand *o$ it can !e a''%ied to so%e an"

!siness 'ro!%em



0PROFESSIONAL MANAGEMENT1

Professional Management

Se'aration of o$ners*i' from management

2no$%edge !ased decision ma#ing

Professiona% managers are 'erformanceoriented

T*e" fo%%o$ management 'ractices !ased

on information o!tained3e('erience A''%ication of management t*eories to

so%e emerging organi,ationa% 'ro!%ems



Eo%tion of Management t*og*t

%lassical approach

Fredrick Taylor (1856-1915)

&. 'cience! not rule of the thumb

(. )armony! not discord

*. %ooperation! not individualism+. Ma,imum output

. $evelopment to greatest efficiency and prosperity

. )igh wages! low cost

Charles Babbage

&. 'pecialization

(. Work measurement/ methods*. 0tilization of machines and tools

+. $ivision of labour

. 'cience and mathematics

. %ost reduction



Cont455

Frank and Lillian Gilberth (1868-19! " 18#8-19#)

&. Time and motion study

(. Worker welfare

*. #otential of workers

$enry Gantt (1861-1919)

&. 1antt %hart(. onuses for Workers and 'upervisors

*. 1ood understanding of 23



Cont4

$enry Fayol ( 18!1-195)

&. $ivision of labour

(. $iscipline

*. 0nity of command

+. 'ubordination of individual interest to common good

. 3emuneration

. %entralization

4. )ierarchy

5. 6rder

7. 89uity&:. 'tability of 'taff

&&. 2nitiative

&(. 8sprit $e %orps



Cont45 Ma( )e!er 6789:-7;<=>

reacrac" Criticisms

E%ton Ma"o- T*e ?a$t*orn E('eriments 67;<@-<> 6788=-7;:;>

Mar" Par#er Fo%%ett 67898-7;>

C*ester arnard 67889-7;97



Cont45 Behavioral Science

Mas%o$ Mc5 Gregor A%derfer ?er,!erg

Management Science

Mat*ematica% Mode%%ingB or for so%tions of management 'ro!%ems

Recent Developments

S"stems A''roac* Contingenc" A''roac* D"namic Engagement A''roac* Et*ics and socia% Res'onsi!i%it" C%tres and M%tic%trism TM



Re%ation of Motion & Time Std" to)or# Design

O!.ectieIm'roe O's !"Effectie ti%i,ationOf a%% resorces

O!.ectieIm'roe Contro% !"More accrate '%ng3estimating3 ea%ating'erformance

s

)or#Design

Method Study/ OR

Motion

Study

Time Study

Standard S"m!o%so O'eration TN3 Moement Ins'ection D De%a"3 Tem' Storage Storage

+sed to Ea%ate

A%ternate designs3met*ods Dee%o'ed !" Ta"%orDee%o'ed!"

Gi%!ert*

+sed to find t*e fastest

Motion se/ences

)or# Measrement

Com!ined Actiit"



Manageria% ro%es identified !"Mint,!erg

Inter'ersona% Figre*ead Leader Liaison

Informationa% Monitor Disseminator S'o#es'erson

Decisiona% T*e Entre'reneria% ro%e T*e distr!ance *and%er ro%e T*e resorce a%%ocator ro%e T*e negotiator ro%e

“ Aim all communication at identifying and solvingprolems! not laming"#



Manageria% Attri!tes

Professiona% Com'etence

Et*ics3 a%e Drien

Candor and *onest" Emotiona% Inte%%igence

Commitment

?man a%es Leaders*i' a%ities



$ey Aspect of the Management Process

Organi%ational Resources &unctions of Management

;<abour

;%apital

;Materials

;Machinery

;2nformation

;#lanning

;6rganizing

;'taffing

;<eading

;%ontrolling

;%oordinating

=ttainment

6f

6rganizationa

l

1oal

Ty%es o& 'anagers

Type &- 8,pectations >alues Targets

Type (- 8,pectations >alues Targets

Type *- 8,pectations >alues Targets

Type +- 8,pectations >alues Targets



Socia% & Et*ica% Res'onsi!i%it" ofManagement

0CSR refers to t*e !sinessmans decisions and actions ta#en forreasons 'artia%%" !e"ond t*e firms direct economic or tec*nica%interest51

- 2eit* Dais

0CSR contends t*at management is res'onsi!%e to t*e organi,ationitse%f and to a%% t*e interest gro's $it* $*ic* it interacts5 Ot*erinterest gro's sc* as $or#ersB cstomersB creditorsB s''%iersBgot5 and societ" in genera% are '%aced essentia%%" e/a% $it*s*are*o%ders

- O'erationa% Definition Et*ics

?o$ or decisions affect ot*er 'eo'%e Std" of 'eo'%es rig*ts & dties Mora% r%es 'eo'%e a''%" $*i%e ma#ing decisions Natre of re%ations*i's among 'eo'%e



Arguments for Social 'nvolvement

Im'roements !enefit !ot* societ" and !siness Greater Freedom and f%e(i!i%it" from got5 Po$er $it* res'onsi!i%it"

Pro!%ems can !ecome 'rofits Faora!%e '!%ic image etter to 'reent t*an cre

Arguments Against

Primar" O!.ecties Costs Associated Enog* Po$er No Acconta!i%it"



P%anning

#lanning is a continuous process of making present entrepreneurialdecisions systematically and with best possible knowledge of theirfuturity! organizing systemically the efforts needed to carry out thesedecisions and measuring the results against e,pectations throughfeedback system.

- #eter $rucker

#lanning is the selection and relating the facts and making use of

assumptions regarding the future in the visualization and formalizationof proposed activities believed necessary to achieve the desired result.

- Terry



Natre of P%anning

P%anning is goa% oriented

P%anning is an inte%%ecta% or rationa%'rocess

P%anning is a 'rimar" fnction

P%anning is a%% 'erasie

P%anning is for$ard %oo#ing

P%anning is a 'er'eta% 'rocess P%anning is an integrated 'rocess

P%anning ino%es c*oice



Significance of P%anning

Focses attention on o!.ecties Offsets ncertaint" and ris# Proides sense of direction

Proides gide%ines for decision ma#ing Increases organi,ationa% effectieness Proides efficienc" in o'erations Ensres !etter coordination

Faci%itates contro%s Encorages innoation and creatiit" Faci%itates de%egation



T"'es of P%ans

Top (evel Middle (evel (o)er (evel

Time <ong 2ntermediate 'hort 3ange

3ange 3ange

'cope 'trategic Tactical 6perational

ight a*or areas o& +trategic Goals

; Market 'tanding and %ustomer loyalty

; 2nnovation; )uman 3esources Management

; "inancial 3esources; #hysical 3esources! $eployment and 0se; #roductivity! effectiveness ! efficiency; 'ocial 3esponsibility;#rofit 3e9uirements



+nderstanding organi,ation

)*at is Organi,ation

i%ding %oc#s

Diision of $or# De'artmenta%i,ation ?ierarc*" Coordination

Mec*anistic 3s Organic S"stems



Cont4

C%assification of Organi,ations Predominant%" coercieB non-%egitimate at*orit" Predominant%" ti%itarianB rationa% %ega% at*orit"B se of

economic re$ards Predominant%" normatieB se of mem!ers*i' stats and

intrinsic a%e re$ards at*orit" on c*arisma3 e('ertise Mi(ed strctres

Strctres

" Fnction " Prodct Matri(3Mi(ed



Organi,ing

,e&inition

2dentification and classification of re9uired objectives 1rouping of activities necessary to attain objectives =ssignment of each grouping to the manager with authority to supervise it

#rovision of coordination horizontally and vertically

"ormalized intentional structure of roles or positions.

$etermining what tasks are to be done! who is to do them! how the tasks are to begrouped! who reports to whom and where decisions are to be made

- 3obbins ? %oulter

6rganizing is a management function involving assigning duties! grouping tasks!delegating authority and responsibility and allocating resources to carry out aspecific plan in an efficient manner



Common Organi,ationa% Designs

Sim'%e Strctre reacrac"

Matri( Strctre Team Strctre irta% Organi,ation ondar" %ess Organi,ation Diisiona% Strctre Fnctiona% Strctre



)*" Do Strctres Differ

Mec*anistic s Organic Mode%s

Strateg"

Organi,ationa% Si,e Tec*no%og"

Enironment



Line and Staff At*orit" (ine Authority

Direct%" res'onsi!%e for organi,ationa% goa%s Standard c*ain of command ased on %egitimate 'o$er

Staff Authority

Proides serices and at*orit" to %ine managers E('ert *e%' and adice ased on e('ert 'o$er Researc*B ana%"sis and o'tion dee%o'ment Po%ic" im'%ementationB monitoring and contro%

&unctional Authority

Rig*t to Contro% actiities of ot*er de'artments ased on %egitimate 'o$er3 e('ert 'o$er Practiced in most organi,ations



Contd4

De%egation

Forma% at*orit" and acconta!i%it" tocarr" ot s'ecific tas#s

Necessar" for efficient fnctioning ofan" organi,ation



S'an of Contro%

De'artment )ide S'an Narro$ S'an Factors determining effectie s'an

&actors determining effective Span of *ontrol

Trained s!ordinated C%arit" of de%egation of at*orit" C%arit" of '%ans +se of o!.ectie standards

Rate of c*ange Commnication tec*ni/es Amont of 'ersona% contact needed +se of Staff Assistants Com'etence of Manager



Re%ations*i's 6 ie$s on Conf%icts>

Im'ortance of Conf%ict Management

Re$ards

Leaders*i'

C*ange 6Nad%er and Ts*man>

Incrementa% Strategic

Antici'ator" Tning Re-orientation

Reactie Ada'tation Re-creation

(earning Organi%ationsTo%erance for am!igit"

Managing diersit"O'en CommnicationsCPSConf%ict Reso%tionTeam OrientationInnoatie Efforts



Conf%ict ?and%ing Modes *ompetitive *ollaorating 6o$n concerns at ot*ers 6$or#ing $it* ot*er

E('ense> 'art" to find so%tions>

*ompromising

6Mta%%" acce'ta!%e so%tion>

Avoidance Accommodating 6Not addressing conf%ict> 6Satisf"ing>

6?ig*>

Assertiveness

6Lo$>

6Lo$> Coo'eratieness 6?ig*>

Mode Assertieness Coo'eratieness

Com'eting ?ig* Lo$Co%%a!oraing ?ig* Lo$Aoiding Lo$ Lo$Accomodating Lo$ ?ig*Com'romising Moderate Moderate



C%tre T*e com'%e( mi(tre of assm'tionsB !e*aiorsB storiesB m"t*sB meta'*ors and

ot*er ideas t*at fit toget*er to define $*at it means to !e a mem!er of a'artic%ar societ"

Body Shop)or#B LieB Loe and Learn- rat*er t*an$or#B $or#B $or#

See meaning and mone"- rat*er t*an mone"a%onei%d net$or# of re%ations*i's- rat*er t*an*ierarc*ies of 'o$erSstain resorces rat*er t*an 0+se it andLose it1 Gro$ Natra%%"- rat*er t*an gro$ fastEm!race $or# and fami%"- rat*er t*an $or#or fami%"

Artifacts- Es'osed a%es- asic Assm'tions



Cont45

C%tra% Practices Materia% s Non Materia% c%tres Eco%og" and C%tre C%tra% C*aracteristics

O!sered e*aior Norms a%esB Attitdes and !e%iefs

P*i%oso'*" R%es Organi,ationa% C%imate



Decision Ma#ing Process of identif"ing and se%ecting a corse of action to so%e a s'ecific 'ro!%em

'mportant aspects Past E('erience H !ot* 'ositie and negatie ?man Re%ations*i's Pro!%ems and o''ortnit" finding Deciding to decide

Prolem finding process Deiation from 'ast e('erience Deiation from set '%ans From ot*er 'eo'%e Performance of com'etitors

Opportunity finding process Somet*ing t*at offers a c*ance to e(ceed o!.ecties Dia%ectica% in/ir" met*od 6Dei%s Adocate met*od> Im'ortance of information gat*ering

Recogni%ing the Prolem Prioriti,e Is t*e 'ro!%em eas" to dea% $it* Mig*t t*e 'ro!%em so%e itse%f Is t*is m" decision to ma#e



Cont4

Decision Ma#ing

S'ecific Re/irements

75 E('ected Res%ts

<5 Resorce Constraints

Prioriti,e Needs

O'tiona% Corses of Action

C*oose est O'tion Identif" Potentia% nfaora!%e

conse/ences



Cont45 Natre of Decision Ma#ing

Programmed

Non Programmed

Certaint"

O!.ecties

AccrateB measra!%e and re%ia!%e information Ris#

Otcome cannot !e 'redicted

Pro!a!i%it" factor

+ncertaint"

Litt%e #no$n a!ot a%ternatie and otcome

Im'ortance of e(terna% factors and information

Programmed Non'rogrammed*ertainty Ris+ ,ncertainty

Manageria% contro%?ig* Lo$



Factors affecting t*e decisionma#ing 'rocess

Information Time factor Enironmenta% factors

Interna% Factors Persona%it" of t*e decision ma#er Partici'ationB acce'tance & im'%ementation Precedent Esca%ation of commitment Pro!%em 'erce'tion



Rationa% Decision Ma#ing Process

'nvestigate SitDefine 'ro!%emDiagnose casesIdentif" decisiono!.ecties

DevelopalternativesSee# creatiea%ternatiesDo not ea%ate"et

'mplementand monitorP%an Im'%ementation

MonitorMa#e ad.stment

Ea%ateA%ternaties &Se%ect !estaai%a!%e



Cont4

'nvestigation Define t*e 'ro!%em Diagnose t*e cases Identif" decision o!.ecties Development

Eas" for 'rogrammed Diffic%t for non-'rogrammed -valuation Is t*e a%ternatie feasi!%e Is t*e a%ternatie a satisfactor" so%tion )*at are t*e conse/ences for t*e rest of t*e organi,ation

'mplementation A''ro'riate instrctions Ac/isition3 A%%ocation of resorces Assigning res'onsi!i%itiesB !dgeting Progress re'orts and corrections



Information S"stems for Manageria% Contro% andDecision Ma#ing

Cor'orateData!ases

Information for decisionMa#ing

Information for contro%

MIS

DSS

EIS

Feed!ac#Contro% S"stems

Mgt Contro% S"stems

a%anced Scorecard



Management Contro% S"stems

Acta%Performance

MeasrePerformance Com'arison

Desired'erformance

Deiations

ReasonForDeiation

CorrectieActions

&eedac+ (oop



O!.ecties of MCS

Re%ations*i' $it* organi,ationa% goa%s

Identification of critica% 'rocesses t*ataffect goa%s

Identif" #e" sccess factors Identif" res'onsi!i%ities

Acconta!i%it"

Financia% s non financia% 'erformance Im'roement of co%%ectie decision ma#ing



)*" Management Contro% s"stemfai%

Most contro% s"stems are 'ast actionoriented

Precision Leae %itt%e margin for error

Contro%s do not c*ange $it* missionsBstrategiesB o!.ecties and '%an

e*aiora% and *man side if t*e contro%s"stem oer%oo#ed

Standards are not modified as 'er t*esitation at *and

Im'ortance of s'eed" and re%ia!%e feed!ac#



ERP

ERP- Integration of !siness 'rocesses across de'artments into anenter'rise $ide information s"stem

Integration of

Prodct P%anning Parts 'rc*asing Inentor" Contro% Prodct Distri!tion and f%fi%%ment Order trac#ing

ERP +sers T*ose $*o e(ecte strategic '%anning T*ose $*o 'erform manageria% contro% T*ose $*o do o'erationa% contro%



Cont45

Sa%es Order '%acement Order sc*ed%ing

S*i''ing and inoicing

Finance Financia% data

Financia% re'orts Tria% a%anceB a%ance S*eet arter%" financia% data



Management Contro%

Management contro% is a s"stematic effort to set 'erformancestandards $it* '%anning o!.ecties to design informationfeed!ac# $it* t*ese 're determined standards and to measret*eir significance and to ta#e an" action re/ired to assre t*ata%% cor'orate resorces are !eing sed in t*e most effectie

and efficient $a" 'ossi!%e in ac*ieing cor'orate o!.ecties - Moc#%er

P%anning

Im'%ementation of strategies Contro% !" com'aring

Acta% res%ts $it* '%anned res%ts

Strategies to ac*iee o!.ecties



Feed!ac# Loo' of ManagementContro%

DesiredPerformance Acta%

Performance

MeasrementPerformance

Ana%"sisDeiations

IdentificationOf deiations

Com'arisonAgainstStandards

CorrectieAction Im'%ementation

Of correction



Cont455

Management Contro% *e%'s in

75 Co'ing $it* ncertaint"

<5 Detecting irreg%arities5 Identif"ing o''ortnities

:5 ?and%ing com'%e( sitations

J5 Minimi,ing costs

management theory practice

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