Principles of

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

 That is:

 As managers, people carry out the managerial

functions of planning, organizing, staffing, leading, and
controlling.
 Management…
 Management applies to any kind of organization
(government, non government, profit making, non
profit making).

 It applies to managers at all organizational levels.

 The aim of all managers is the same: to create a

surplus.

 Management is concerned with productivity; this

implies effectiveness and efficiency.
 Management…
Efficiency:

 The ability to do things right.

 The ability to minimize the use of resources in

achieving organizational objectives.

 That is getting work done with a minimum of effort,

expense, or waste.
 Management…
Effectiveness:

 The ability to do the right thing.

 Choosing right goals.

 The ability to determine appropriate objectives.

 That is accomplishing tasks that help fulfill

organizational objectives such as customer service
and satisfaction.
 Organization
 Two or more people who work together in a
structured way to achieve a specific goal or set of
goals.

 The purpose that an organization strives to achieve

often have more than one goal.

 Goals are fundamental elements of organizations, a

reason for existence.

 Eg: Government, Non governmental organizations,

political organizations, etc.
 Functions of Management
 The concepts, principles, theory, and techniques of
management are grouped into five functions,

 Planning

 Organizing

 Staffing

 Leading

 Controlling.
 Functions of Management…
Planning:

 It involves selecting mission and objectives and the

actions to achieve them.

 That is choosing future course of action from among

alternatives.

 Plans guide managers in the use of resources to

accomplish specific goals.
 Functions of Management…
Organizing:

 It is a process of engaging two or more people

working together in a structured way to achieve a
specific goals or set of goals.

 That is it involves establishing an intentional structure

of roles for people to fill in an organization.
 Functions of Management…
Staffing:

 It involves filling, and keeping filled, the positions in

the organization structure.

 That is identifying work force requirements,

inventorying the people available,

 and recruiting, selecting, placing, promoting, appraising,

planning the careers of, compensating, and training.
 Functions of Management…
Leading:

 It is influencing people so that they will contribute to

organization and group goals.

 It is understandable that leading involves motivation,

leadership styles and approaches and communication.

 Functions of Management…
Controlling:

 It is measuring and correcting individual and

organizational performance to ensure that events
conform to plans.

 That is controlling facilitates the accomplishment of

plans.

 Thus outcomes are controlled by controlling what

people do.
The Interactive Nature of Management Process
PLANNING
Managers use logic
and methods to think
through goals and
actions ORGANIZING
CONTROLLING Managers arrange
Managers make sure and allocate work,
an organisation is authority and
moving towards resources to achieve
organisational goals. organizational goals
LEADING
Managers direct,
influence and
motivate employees
to perform essential
tasks.
 Who is a Manager?
 Managers are responsible for the processes of getting
activities completed efficiently with and through
other people and

 setting and achieving the firm’s goals through the

execution of four basic management functions,

 planning, organizing, leading, and controlling.

Managerial Levels

Top Level
Managers

Middle Level
Managers

First Level (First Line)

Supervisors / Managers
 First Level (First Line) Managers
 First level or lower level is also known as supervisory
or operative level of management.
 These managers who are responsible for the work of
operating employees only and will not supervise
other managers.
 They are concerned with direction and controlling
function of management.
 Like assigning of jobs and tasks to various workers
etc.
 Eg: Foreman, supervisors, section officers etc.
 First Level (First Line) Managers…
 Guide and instruct workers for day to day activities.

 Are responsible for the quality as well as quantity of

production.

 Are also entrusted with the responsibility of

maintaining good relation in the organization.

 They communicate workers problems and give

suggestions and recommendations to the higher level.

 Help to solve the grievances of the workers.

 Middle Level Managers
 Are in the midrange of the organizational hierarchy and
will be the heads of various departments.

 They are responsible and direct the activities of lower

level managers and also report to more senior
managers.

 Devote more time to organizational and directional

functions.

 Execute the plans of the organization in accordance

with the policies and directives of the top management.

 Interpret and explain policies from top level

management to lower level.
 Middle Level Managers…
 They participate in the training of lower level
management.

 Are responsible for coordinating the activities within

the department.

 They also sends important reports and other

important data to top level management.

 They evaluate performance of junior managers.

 Are also responsible for inspiring lower level

managers towards better performance.
 Top Level Managers
 Managers responsible for the overall management of
the organization.

 They are the ultimate source of authority and

manages goals and policies for an enterprise.

 Devotes more time on planning and coordinating

functions.

 They lays down the objectives and broad policies of

the enterprise.
 Top Level Managers…
 They issues necessary instructions for preparation of
department budgets, procedures, schedules etc.

 Controls and coordinates the activities of all the

departments.

 They are also responsible for maintaining a contact

with the outside world.

 They provides guidance and direction.

 Thus the top management are responsible for the

overall performance of the enterprise.
 Managerial Roles
 According to Henry Mintzberg, managers fulfil three
major roles while performing their jobs.That is,

 Interpersonal Roles

 Informational Roles

 Decisional Roles.

 That is managers talk to people, gather information

and make decision.
Ten Managerial Roles by Mintzberg
Interpersonal Roles

1. The figure head role (ceremonial duties like greeting

company visitors, representing the company at an
event etc.) (symbol)

2. The leader role (motivating and encouraging

workers) (lead)

3. The liaison role (communicate with outsiders)

(liaison)
Ten Managerial Roles by Mintzberg…
Informational Roles

1. The monitor role (scan their environment for

information) (monitor)

2. The disseminator role (passing information to

subordinates and others) (share information)

3. The spokesperson role (sharing information with

people outside the department and organization)
(spokesperson)
Ten Managerial Roles by Mintzberg…
Decision Roles

1. The entrepreneurial role (adapt themselves, their

subordinates, and their units to change) (Initiative)

2. The disturbance handler role (respond to pressures

and problems) (Handle Disagreements)

3. The resource allocator role (allocate resources)

4. The negotiator role (negotiate)

 Managerial Levels and Skills
Conceptual
Top Level and Design
Managers Skills

Middle Level
Human
Managers
Skills

First Level
Managers Technical
Skills
 Technical Skills
 The ability to use procedures, techniques and
knowledge of a specialized field.
 Surgeons, engineers, musicians and accountants all
have technical skill in their respective fields.
 Technical skills are of greatest importance at the
supervisory level.
 For middle level managers, the need for technical
skills decreases.
 There is relatively little need for technical abilities for
top level management.
 Human Skills
 The ability to work with, understand, and motivate
other people as individuals or in groups.

 Cooperative effort, team work, secure environment

creation for people to express opinions, etc.

 Human skills are not that much necessary for first

level but it is helpful for the supervisors to interact
with their subordinates.

 Human skills are essential for the middle and top level
managers.
 Conceptual and Design Skills
 The ability to coordinate and integrate all of an
organization's interest and activities.

 Anticipating how a change in any of its parts will

affect the whole.

 The conceptual and design skills are not critical for

lower level supervisors.

 But in the middle and top level it gain in importance.

 Management as a Science or Art
 Management is science because of several reasons,

 it has universally accepted principles,

 it has cause and effect relationship, etc., and

 at the same time it is art as it requires perfection

through practice,

 practical knowledge, creativity, personal skills, etc.

 That is Management is both art and science.

 Management as a Science or Art…
 Artistic application of management know-
how/knowledge is a must for solving complex
situations in organizations.

 It is understood that managing is doing things

artistically in the light of the realities of a situation.

 Human skills cannot stand alone; they need to be

aligned with conceptual skills and technical skills.

 Therefore, theoretical knowledge of management is

not adequate or relevant for solving problems.
 Management as a Science or Art…
 A manager gains experience by continual application

of management knowledge and facing new

experiences.

 By solving many problems, a manager develops skills

for translating knowledge into practice.

 Management as a Profession
 Profession can be defined as an occupation backed by
specialized knowledge and training, in which entry is
restricted.

 In the case of management there is availability of

systematic body of knowledge.

 Scholars are studying various business situations and

are trying to develop new principles to tackle these
situations.
 Management as a Profession…
 The entry to a profession is restricted through an
examination or degree.
 Nowadays many companies prefer to appoint
managers only with MBA degree.
 For all the professions, special associations are
established and every professional has to get
himself/herself registered with his/her association
before practicing that profession.
 But legally it is not compulsory for managers to
become a part of any organizations by registration.
 Management as a Profession…
 For every profession there are set of ethical codes
fixed by professional organizations and are binding on
all the professionals of that profession.

 But legally it is not compulsory for all the managers

to get registered with any of the professional
management organizations and abide by the ethical
codes.
 Management as a Profession…
 From the above points, it is clear that management is
not a full fledged profession.That is:
 It does not restrict the entry in managerial jobs for
account of one standard or other.
 No minimum qualifications have been prescribed for
managers.
 No management association has the authority to
grant a certificate of practice to various managers.
 Competent education and training facilities do not
exist.
 Management as a Profession…
 Managers are responsible to many groups such as
shareholders, employees and society.

 A regulatory code may curtail their freedom.

 Managers are known by their performance and not

mere degrees.

 The ultimate goal of business is to maximize profit

and not social welfare.
 Functional Areas of Management
 There are five main functional areas of management,
that is:

 Human resource management,

 Marketing management,

 Finance management

 Operations management and

 ICT management.
Evolution of Management Thought
 The industrial revolution that took place in the 18th
century had a significant impact on management as a
whole.
 It changed how businesses, as well as individuals,
raised capital, organize labor and the production of
goods.
 Entrepreneurs had access to all the factors of
production such as land, labor, and capital.
 This tempted them to make an effort to combine
these factors to achieve a targeted goal successfully.
 Evolution of Management Thought…
 The evolution of modern management began in the
late nineteenth century, after the industrial
revolution.

 Mechanization changed systems like crafts production

into large scale manufacturing.

 Certain pioneers tried to challenge the traditional

character of management by introducing new ideas
and character of management by introducing new
ideas and approaches.
The Classical Theory of Management (1895-1920)
 Scientific Management
 Bureaucratic Management
 Administrative Management
Neo Classical Theory (1920-1960)
 Human Relations
 Behavioural Science Approach
The Modern Management Theories (1960 onwards)
 Quantitative Approach
 System Approach
 Contingency Approach
 Operational Approach
The Classical Theory of Management
 Classical approach is the oldest formal school of
thought which began around 1900 and continued into
the 1930s.

 It mainly concerned with the increasing the efficiency

of workers and organizations based on management
practices, which were an outcome of careful
observation.

 Classical approach mainly looks for the universal

principles of operation in the striving for economic
efficiency.
 The Classical Theory of
Management…
 Classical approach includes scientific, administrative
and bureaucratic management.

Scientific Management

 Major contributors are Frederick Winslow Taylor

(1856-1915).

 Frank Gilbreth (1868-1924) and Lillian Gilbreth

(1878-1972).
 F. W. Taylor’s Contribution (1856-1915)
 Frederick Taylor, known as the father of scientific
management, published principles of scientific
management, in which he proposed work methods
designed to increase workers productivity.

 Scientific management focuses on studying and testing

different work methods to identify the best, most
efficient way to complete a job.

 Organizational productivity can be increased by

increasing the efficiency of production process.
F. W. Taylor’s Contribution (1856-1915)…
Taylor’s four principles of scientific management are:

1. Develop a science for each element of a man’s

work, which replaces the old rule of thumb method.

2. Scientifically select, and then train, teach and

develop each worker rather than passively leaving
them to train themselves.
F. W. Taylor’s Contribution (1856-1915)…
3. Wholeheartedly cooperate with the workers so as
to ensure all of the work being done is in
accordance with the principles of the science that
has been developed.

4. Divide the work and the responsibility equally

between managers and workers, so that the
managers apply scientific management principles to
planning the work in a better way for each worker
and there by workers can perform the task better
and quicker.
F. W. Taylor’s Contribution (1856-1915)…
The main things Taylor noticed for inefficiency are:

 Lack of standard tools or techniques.

 There is no match between skill and job.

 Lack of specific tasks and goals.

 No motivation from the management like rewards

and incentives.

 Long work hours and lack of breaks between the

work hours.
 Scientific Management…
General approach behind scientific management are:

 Select workers with appropriate abilities for each job.

 Develop standard method for performing each job.

 Train workers in standard method.

 Support workers by planning their work and

eliminating interruptions.

 Provide wage incentives to workers for increased

output.
 Scientific Management…
Criticisms are:

 It considered money as the primary motivational

source for the workers.

 Did not appreciate the social context of work and

higher needs of workers.

 It was more in the favour of management and

workers have little say in the things.
 Contributions of Frank and
Lillian Gilbreths
 The husband and wife team of Frank and Lillian
Gilbreth are best known for their use of motion
studies to simplify work.

 Motion Study: breaking each task or job into separate

motions and then eliminating those that are
unnecessary or repetitive.

 Thereby simplify work, improve productivity, and

reduce the level of effort required to safely perform a
job.
 Contributions of Frank and
Lillian Gilbreths…
 Gilbreths used films to analyze worker activity.

 They would break the tasks into discrete elements

and movements and record the time it took to
complete one element.

 In this way, they were able to predict the most

efficient workflow for a particular job.

 The films the Gilbreths made were also useful for

creating training videos to instruct employees in how
to work productively.
 Contributions of Henry L. Gantt
(1861-1919)
 Associated with F.W.Taylor.

 He improved Taylor’s differential piece rate system

Task and Bonus Plan (Provide extra wages for extra
work).

 Best known for Gantt chart: a graphical chart that

shows which tasks must be completed at which times
in order to complete a project or task.

 That is, by showing time in various units on the x axis

and tasks on the y axis.
 Contributions of Henry L. Gantt
(1861-1919)…
 Gantt found that workers achieved their best
performance levels if they were trained first.

 However, supervisors were reluctant to teach

workers what they knew for fear that they could lose
their jobs to more knowledgeable workers.

 He overcame the supervisors resistance by rewarding

them with bonuses for properly training all of their
workers.
 Contributions of Henry L. Gantt
(1861-1919)…
Gantt’s approach to training:

 A scientific investigation in detail of each piece of

work, and the determination of the best method and
the shortest time in which the work can be done.

 A teacher capable of teaching the best method and

the shortest time.

 Reward for both teacher and pupil when the latter is

successful.
 Bureaucratic Management
 Max Weber (1864-1920).
 Bureaucracy comes from the French word
bureaucratie, bureau means desk or office and cratie
or cracy means to rule,
 bureaucracy literally means to rule from a desk or
office.
 According to Weber, bureaucracy is the exercise of
control on the basis of knowledge.
 Rather than ruling by virtue of favoritism or personal
or family connections.
 Bureaucratic Management…
The seven elements of bureaucratic organizations:

1. Qualification based hiring: employees are hired on

the basis of their technical training or educational
background.

2. Merit based promotion: promotion is based on

experience or achievement (Managers, not
organizational owners, decide who is promoted).
 Bureaucratic Management…
3. Chain of command: each job occurs within a
hierarchy, the chain of command, in which each
position reports and is accountable to a higher
position (A grievance procedure and a right to
appeal protect people in lower positions).

4. Division of labour: tasks, responsibilities, and

authority are clearly divided and defined.
 Bureaucratic Management…
5. Impartial application of rules and procedures: rules
and procedures apply to all members of the
organization and will be applied in an impartial
manner, regardless of one’s position or status.

6. Recorded in writing: all administrative decisions,

acts, rules, and procedures will be recorded in
writing.

7. Managers separate from owners: the owners of an

organization should not manage or supervise the
organization.
 Bureaucratic Management…
 That is, Fairness replaced favoritism,

 the goal of efficiency replaced the goal of personal

gain, and

 logical rules and procedures took the place of

traditions or arbitrary decision making.

 Weber’s ideas about bureaucracy represent a

tremendous improvement in how organizations
should be run.

 But in reality bureaucracy has limitations as well.

 Administrative Management
 Henri Fayol (1841-1925) known as Father of modern
management.
 According to Fayol the success of an enterprise
generally depends much more on the administrative
ability of its leaders than on their technical ability.
 Also Fayol argued that managers need to perform five
managerial functions if they are to be successful:
planning, organizing, coordinating, commanding, and
controlling.
 According to Fayol, effective management is based on
the fourteen principles.
 Henri Fayol’s 14 Principles
1. Division of work
2. Authority and Responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interests to the general interests
7. Remuneration
8. Centralization of authority
9. Scalar chain or Line of authority
10. Order
11. Equity
12. Stability of tenure of personnel
13. Initiative
14. Esprit de corps.
 Henri Fayol’s 14 Principles…
Division of work:

 Increase production by dividing work so that each

worker completes smaller tasks or job elements.

Authority and Responsibility:

 A manager’s authority, which is the right to give

orders, should be commensurate with the manager’s
responsibility.

 However, organizations should enact controls to

prevent managers from abusing their authority.
 Henri Fayol’s 14 Principles…
Discipline:

 Clearly defined rules and procedures are needed at

all organizational levels to ensure order and proper
behavior.

Unity of command:

 To avoid confusion and conflict, each employee should

report to and receive orders from just one boss.
 Henri Fayol’s 14 Principles…
Unity of direction:

 One person and one plan should be used in deciding

the activities to be carried out to accomplish each
organizational objective.

Subordination of individual interests to the

general interests:

 Employees must put the organization’s interests and

goals before their own.
 Henri Fayol’s 14 Principles…
Remuneration:

 Compensation should be fair and satisfactory to both

the employees and the organization; that is, don’t
overpay or underpay employees.

Centralization:

 Avoid too much centralization or decentralization.

 Strike a balance depending on the circumstances and

employees involved.
 Henri Fayol’s 14 Principles…
Scalar Chain:

 From the top to the bottom of an organization, each

position is part of a vertical chain of authority in
which each worker reports to just one boss.

 For the sake of simplicity, communication outside

normal work groups or departments should follow
the vertical chain of authority.
 Henri Fayol’s 14 Principles…
Order:

 To avoid confusion and conflict, order can be

obtained by having a place for everyone and having
everyone in his or her place; in other words,

 there should be no overlapping responsibilities.

 Henri Fayol’s 14 Principles…

Equity:

 Kind and fair treatment for all will develop

commitment and loyalty.

 That is, managers should be both friendly and fair to

their subordinates.
 Henri Fayol’s 14 Principles…
Stability of tenure of personnel:

 Low turnover, meaning a stable work force with high

tenure, benefits an organization by improving
performance, lowering costs, and

 giving employees, especially managers, time to learn

their jobs.
 Henri Fayol’s 14 Principles…
Initiative:

 Because it is a great source of strength for business,

 sub ordinates should given the freedom to express

and carry out their plans, even though some mistakes
may result.

 Management should take steps to encourage worker

initiative, which is defined as new or additional work
activity undertaken through self direction.
 Henri Fayol’s 14 Principles…
Esprit de corps:

 Develop a strong sense of morale and unity among

workers that encourages coordination of efforts.

 It is an intangible term used to describe the capacity

of people to maintain belief in an institution or a goal,
or even in oneself and others.

 Promoting team spirit will give the organization a

sense of unity.
Neo Classical Theory of Management
Human Relations Management:

 The human relations approach to management

focuses on people, particularly the psychological and
social aspects of work.

 It holds that people’s needs are important and

 that their efforts, motivation, and performance are

affected by the work they do and

 their relationships with their bosses, coworkers, and

work groups.
 Mary Parker Follett (1868–1933)
 Mary Parker Follett (1868–1933) believed that the
best way to deal with conflict was not domination or
compromise, but integration.

 Domination: an approach to dealing with conflict in

which one party satisfies their desires and objectives
at the expense of the other party’s desires and
objectives.
 Mary Parker Follett (1868–1933)…
 Compromise: an approach to dealing with conflict
in which both parties give up some of what they want
in order to reach agreement on a plan to reduce or
settle the conflict.

 Integrative conflict resolution: an approach to

dealing with conflict in which both parties indicate
their preferences and then work together to find an
alternative that meets the needs of both.
 Mary Parker Follett (1868–1933)…
 According to her giving orders involves discussing
instructions and dealing with dissatisfaction.

 Authority flows from job knowledge and experience

rather than position.

 Leadership involves setting the tone/style for the

team rather than being aggressive and dominating,
which may be harmful.

 Coordination and control should be based on facts

and information.
 Elton Mayo (1880–1948)
 Elton Mayo (1880–1948) is best known for his role in
the famous Hawthorne Studies at the Western
Electric Company.

 According to him human factors related to work are

more important than the physical conditions or
design of the work.

 That is workers feelings and attitudes affecting their

work more than anything.
 Elton Mayo (1880–1948)…
 According to Mayo financial incentives weren’t
necessarily the most important motivator for
workers.

 Groups, group norms, and group behavior play at

work.

 That is, group social interactions, employee

satisfaction, and attitudes had a great effect on
individual and group performance.
 Elton Mayo (1880–1948)…
 According to mayo cause of increase in the
productivity of the workers:

 not a single factor like rest, pauses or changing

working hours,

 but a combination these and several other factors

such as,

 less restrictive supervision, giving autonomy to

workers, allowing the formation of small cohesive
groups of workers and so on.
 Factors affecting Human Relations

(Satisfaction versus positive environment)

(Unique)

Individual Work Environment

Work Group
Leader
(Centre of focus, influence, attitudes)
Person behind success
 Taylor Mayo

Purely engineering Referred to social needs of

employees and their satisfaction.

Materialistic Applied psychological approach

to management

Only concern was Recommended humanization of

production and management for better results in
productivity terms of production and
productivity.
 Criticism of Human Relations Approach
 Lack of scientific Validity

 Limited focus on work

 Over emphasis on group

 Over stretching of human relations

 Over stress on socio psychological factors

 Negative view of conflict.

 Behavioural Science Approach
 Explain and predict human behavior.

 Laid emphasis on the study of motivation,

 leadership,

 communication group dynamics,

 participative management.
 Behavioural Science Approach…
 Individual differ with respect to attitude, perception
and value system.

 As a result they behave differently to different stimuli

under different conditions.

 Individual goals differ from organizational goals.

 Wide range of factors influence inter personal and

group behaviour of people in organization.
The Modern Management
Theories
 Quantitative Approach
 The quantitative management approach is given by
the mathematical school that recommends the use of
computers and mathematical techniques,

 to solve complex management issues and assist in the

managerial decision making process.

 The different factors involved in management can be

quantified and expressed in the form of equations.
 Quantitative Approach…
 Managers observe historical quantitative relationships
and use quantitative techniques such as

 statistics,

 information models, and

 computer simulations to improve their decision

making.
 Quantitative Approach…
 Managers can use computer models to figure out the
best way to do something saving both money and
time.
 Mathematical forecasting helps make projections that
are useful in the planning process.
 Inventory modeling helps control inventories by
mathematically establishing how and when to order a
product.
 Queuing theory helps allocate service personnel or
workstations to minimize customer waiting and
service cost.
 Systems Approach
 A system is a set of interrelated elements or parts
that function as a whole.

 Systems approach encourages managers to

complicate their thinking by looking for connections
between the different parts of the organization.

 Organizational systems are composed of parts or

subsystems, which are simply smaller systems within
larger systems.
 Systems Approach…
 Subsystems and their connections matter in systems
theory because of the possibility for managers to
create synergy.

 Synergy occurs when two or more subsystems

working together can produce more than they can
working apart.

 That is, synergy occurs when 1+1=3.

 Systems Approach…
 In organizational terms, synergy means when separate
departments within an organization cooperate and
interact, they become more productive than if they
had acted in isolation.

 Systems can be open or closed.

 Closed systems can function without interacting with

their environments.
 Systems Approach…
 But nearly all organizations should be viewed as open
systems that interact with their environments and
depend on them for survival.

 Therefore the systems approach encourages

managers to look for connections,

 between the different parts of the organization and

 the different parts of its environment.

Advantages of Systems Approach
 It forces managers to view their organizations as part
of and subject to the competitive,

 economic, social, technological, and

 legal/regulatory forces in their environments.

 It forces managers to be aware of how the

environment affects specific parts of the organization.
 Advantages of Systems Approach…
 Because of the complexity and difficulty of trying to
achieve synergies among different parts of the
organization,

 the systems view encourages managers to focus on

better communication and cooperation within the
organization.

 It makes managers deeply aware that good internal

management of the organization may not be enough
to ensure survival.
 Advantages of Systems Approach…

 Survival also depends on making sure that the

organization continues to satisfy critical

environmental stakeholders,

 such as shareholders, employees, customers, suppliers,

governments, and local communities.

 Contingency Approach
 The contingency approach to management clearly
states that there are no universal management
theories and

 that the most effective management theory or idea

depends on the

 kinds of problems or situations that managers or

organizations are facing at a particular time and place.

 In short, the best way depends on the situation.

 Contingency Approach…
 That is, managers need to look for key
contingencies/occurrences that differentiate today’s
situation or problems from yesterday’s situation or
problems.

 It means that managers need to spend more time

analyzing problems, situations, and employees before
taking action to fix them.
 Contingency Approach…
 The success of management depends on its ability to
cope up with its environment.

 It has to make special efforts to anticipate and

comprehend the possible environmental changes.

 It recognizes that all the subsystem of the

environment are interconnected and interrelated.

 By studying their interrelationship, the management

can find solution to specific situation.
 Operational Approach
 Operations management approach involves managing
the daily production of goods and services.

 In general, operations management uses a quantitative

or mathematical approach to find ways,

 to increase productivity,

 improve quality, and

 manage or reduce costly inventories.

 Operational Approach…
 The most commonly used operations management
tools and methods are,

 quality control,

 forecasting techniques,

 capacity planning,

 productivity measurement and improvement,

 linear programming,
 Operational Approach…
 scheduling systems,

 inventory systems,

 work measurement techniques (similar to the

Gilbreths’ motion studies),

 project management (similar to Gantt’s charts), and

cost benefit analysis.
 References
 Koontz, H., & Weihrich, H. Essentials of Management, McGraw Hill Publishers.

 Williams. Management, (International edition) South-western Cengage Learning.

 Stoner, Freeman, Gilbert Jr. (2014). Management (6th edition), New Delhi: Prentice
Hall India.

 Daft, R. L. (2009). Principles of Management (1st edition), Cengage Learning.

 Gupta, R.S., Sharma, B.D., & Bhalla. N.S. (2011). Principles & Practices of Management
(11th edition). New Delhi: Kalyani Publishers.

 John R. Schermerhorn. Management,Wiley-India

 L M Prasad, (2007). Principles and Practices of Management, Himalaya Publishing

House

 Rao, P.S. (2009). Principles of Management, Himalaya Publishing House.

 Moshal, B.S. Principles of Management,Ane Books.

Thank You…

Dr. Ajai Krishnan G