PRINCIPLES AND PRACTICES OF MANAGEMENT

BASIC CONCEPTS OF MANAGEMENTINTRODUCTIONWhy study Organisations and Management ?

• Members of one organisation or another A college A Sports team a business, etc.Basic element of any organisation-GOAL OR

PURPOSE.• Some programs or methods for achieving goals - a

PLAN.• Allocate and acquire the resources necessary to achieve

goals.• Need people responsible for helping in achieving the

goals-‘MANAGERS’

WHAT IS MANAGEMENT?

DEFINITION IFor the purpose of study-

“ Management is the process of planning, organizing, leading, and controlling the resources of an organisation in the efficient and effective pursuit of specified organisational goals.”

- Burton & Thakur

EFFICIENCY AND EFFECTIVENESSEFFICIENCY- Ability to maximize the use of

resources in achieving organisational objectives- “doing things right”

Input- output concept.EFFECTIVENESS- Ability to determine

appropriate objectives: “doing the right things”

Involves choosing right goals.

PRODUCTIVITY Surplus is created through productive

operations.Definition:

“Productivity is the output-input ratio within a time period with due consideration for quality.”

Productivity = output inputs(within a time period and quality considered)

DEFINITION II

“ Management is the process of designing and maintaining an environment in which individuals , working together in groups, efficiently accomplish selected aims.”

- Harold Koontz & Heinz Weihrich

EXPLANATION Following managerial functions are carried out –

PlanningOrganizingStaffingLeadingControlling

Applies to any kind of organisation. Aim of all managers is the same- TO CREATE

SURPLUS. Applies to managers at all organisational levels. Concerned with productivity (effectiveness and

efficiency).

DEFINITION III

“Management is the process of functions”, and there are five major functions –

To forecast and plan To organize To command To co-ordinate To control

- Henri Fayol

Management As A Science

Systematized body of knowledge covering general truths or the operation of general laws.

Better work by using the organized knowledge about management.

Organized knowledge underlying the practice.

MANAGEMENT AS AN ART

Managing as practice. Learning from mistakes and polishing

managing art.

“Science and art are not mutually exclusive; they are complementary.”

MANAGEMENT AS A PROFESSION Occupation for which specialized knowledge,

skills, and training are required. Use of these skills for larger interests of the

society not for self- satisfaction. Success is measured not in terms of money

alone.

Certain Characteristics of Profession Missing in Management1. No formal education requirements for entry into

management.2. No system of accreditation or licensing for

managers.3. Managers do not have specific clients.4. No clear code of managerial ethics.5. No common body of knowledge required for

understanding someone to be a manager.

Thus, Management is moving closer to the state of professionalism.

Management Functions at Different Organisational Levels

Management Levels1. First- Line Managers:

Responsible for the work of operating employees only and do not supervise other managers.

‘First’ or lowest level managers in the organisational hierarchy.

2. Middle Managers: Managers in the midrange of the

organisational levels.

Responsible for other managers and sometimes for some operating employees.

Report to more senior managers.

3. Top Managers:

Responsible for the overall management of the organisation.

Establish operating policies.

Guide the organization's interaction with its environment.

Management Functions1. PLANNING

“Process of establishing goals and a suitable course of action for achieving those goals.” Actions are based on some method, plan or

logic. Plans are the guides by which –

The organisation obtains and commits the resources.

Members of the organisation carry on activities consistent with the chosen objectives and procedures.

Progress toward the objectives is monitored and measured to

take corrective actions.

2. ORGANIZING

“Process of engaging two or more people in working together in a structured way to achieve a specific goal or set of goals.”

Different goals require different structures.

Bridge connecting the conceptual idea in creating and planning to the specific means for accomplishing ideas.

3. LEADING “Process of directing and influencing the task-

related activities of group members or an entire organisation.”

Management of human resources. Interpersonal task of motivating the individual

employee. Motivate the work unit, work group or

department as a complexity of individuals. Management of organizational power, political

forces and organizational culture. Management of organizational communication

processes.

4. CONTROLLING

“Process of ensuring that actual activities conform to planned activities.”

Main Elements: Establishing standards of performance. Measuring current performance. Comparing this performance to the established

standards. Taking corrective actions if deviations are

detected.

PLANNINGManagers use logic &

methods to think through goals and

actions.

ORGANIZNGManagers arrange &

allocate work, authority,and resources to achieve

organizational goals.

LEADINGManagers direct,

influence and motivate employees to perform

essential tasks.

CONTROLLINGManagers make sure an organisation is

moving towards organizational

objectives.

THE INTERACTIVE NATURE OF THE MANAGEMENT FUNCTIONS

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Planning Organizing Leading Controlling

First lineManagers

Middlemanagers

Topmanagers

IMPORTANCE OF MANAGEMENT FUNCTIONS AT DIFFERENT LEVELS