Principles of

Management

Capt(Retd) Dr. POOJA MEHRA

1–2
 UNIT

1
OVERVIEW OF

MANAGEMENT
What Is Management?
• Managerial Concerns
 Efficiency
 “Doing things right”
– Getting the most output
for the least inputs
 Effectiveness
 “Doing the right things”
– Attaining organizational
goals

1–4
What Is Management?
• Management involves coordinating and
overseeing the work activities of others so that
their activities are completed efficiently and
effectively.

1–5
Exhibit 1–3
Effectiveness and Efficiency in Management

1–6
Classifying Managers
• First-line Managers
 Individuals who manage the work of non-managerial
employees.
• Middle Managers
 Individuals who manage the work of first-line
managers.
• Top Managers
 Individuals who are responsible for making
organization-wide decisions and establishing plans
and goals that affect the entire organization.

1–8
Managerial Levels

1–9
What Managers Do?
• Three Approaches
Functions they perform.

Roles they play.

Skills they need.

1–
10
Functions of
Management
Plannin
g

•Defining goals, establishing strategies

achieve goals, developing plans to integrate
and coordinate activities.
Or ganizing

 Arranging and structuring

work to accomplish
organizational goals.
Leading
Involves motivating
subordinates, influencing
individuals or teams as
they work, selecting the
most effective
communication channels
Controlling

Monitoring,
comparing,
and correcting
work.
Management Skills
What Managers Do (Mintzberg)
• Actions
thoughtful thinking

practical doing

1–15
Management Roles
Interpersonal roles

Leader
Figurehead

Negotiator
Managerial Monitor
Resource roles

Allocator
Disturbance
handler Spokesperson
Entrepreneur Informational
Decisional roles
roles
Inter per sonal Roles

• Roles that involve interacting with other

people inside and outside the organization

• Interpersonal roles:
Figureheads: Greet visitors, Represent the company
at community events

 Leader: Influence, motivate, and direct others as

well as strategize, plan, organize, control, and
develop
Infor mational Roles

• Collecting, Processing
• Roles: Monitor, and
spokesperson
 Decisional Roles
• Whereas interpersonal roles deal with people and
informational roles deal with knowledge, decisional
roles deal with action

• Decisional roles:
 Entrepreneur: Managers must make sure their
organizations innovate, change, develop, and adopt
 Disturbance handler: Addressing unanticipated problems
as they arise and resolving them.
 Resource allocator: How best to allocate resources
 Negotiator: Negotiation is continual for managers
• interpersonal roles deal
with people

• informational roles deal

with knowledge,

• decisional roles deal

with action
1–20
What Is An Organization?
• An Organization Defined
 A deliberate arrangement of people to accomplish
some specific purpose (that individuals independently
could not accomplish alone).
• Common Characteristics of Organizations
 Have a distinct purpose (goal)
 Composed of people
 Have a deliberate structure

1–26
Exhibit 1–9 Characteristics of Organizations

1–27
What Managers Do?
• Skills Managers Need
Technical skills
 Knowledge and proficiency in a specific field

Human skills
 The ability to work well with other people

Conceptual skills
 The ability to think and conceptualize about
abstract and complex situations concerning the
organization
1–28
Skills Needed at Different Management Levels

1–29
 How The Manager’s Job Is Changing
• The Increasing Importance of Customers
 Customers: the reason that organizations exist
 Managing customer relationships is the responsibility of all
managers and employees.
 Consistent high quality customer service is essential for
survival.
• Innovation
 Doing things differently, and taking risks
 Managers should encourage employees to be
aware of and act on opportunities for innovation.

1–30
Why Study Management?
• The Value of Studying Management
 The universality of management
 Good management is needed in all organizations.

 The reality of work

 Employees either manage or are managed.

 Rewards and challenges of being a manager

 Management offers challenging, exciting and creative
opportunities for meaningful and fulfilling work.
 Successful managers receive significant monetary rewards
for their efforts.

1–31
Universal Need for Management

1–32
1–33
1–34
Principles of Scientific Management
• Replacing Rule of Thumb with
science
• Harmony, not discord
• Co-operation, not individualism
• Maximum output, in place of restricted
output
• The development of each man to his
greatest efficiency.

1–35
or
M a na gem ent
as an A r t
• Art refers to creative skills and
talent which people require to conduct
certain activities effectively.

• Art is an Inborn talent. However it can

be refined through Learning and
Practice.
M a na gem ent i s a n Ar t
due t o t h e following
Reasons:
1.Intelligence 2.Initiative

3. Innovative
4. I n d i v i d u a l A p p r o a c h

5. A p p l i c a t i o n & D e d i c a t i o n

6. R e s u l t Oriented
 Comparison :
M a na gem ent a s

As An a r t As a
Science
• Based on Practice
a n d c r e a t i v i t y. • Based on
Ex pe r ime n t a t io n .

• It i s a t h e o r e t i c a l
body o f kno wl e dg e . • It i s a s y s t e m a t i z e d
body o f
knowledge.
• Has Personalized
Application.
• Has Universal
Application.
I . Modern Operational
Management
Theory
1 4 Principles of Henri Fayol
 D I V I S I O N OF WORK OR SPECIALIZATION
 A U T H O R I T Y A N D RESPONSIBILITY
 DISCIPLINE
 U N I T Y OF C O M M A N D
 U N I T Y OF DIRECTION
 S U B O R D I N AT I O N OF
I N D I V I D U A L TO

GENERAL

REMUNERATION

CEN T RA LIZA T IO N

LINE OF
 COMMAND/SCALA
R CHAIN

ORDER

EQ U IT Y

STABILITY OF TENURE
 1. D IV IS IO N OF
W O RK or
SPECIALIZATION

Division of work makes a man specialist. The reason

is that division of work helps to specialize in an activity which
increases the output with perfection. It also avoids
wastage of time. Division can be applied to both technical
and managerial kind of work.
 Authority & Responsibility.

 Managers must be able to give orders.

Authority gives them this right. Note that
responsibility arises wherever authority is
exercised.
 Discipline.
 Employees must obey and respect the
rules that govern the organization.
 Unity of command.

 Every employee should receive orders from only

one superior.
 Unity of direction.

 Each group of
organizational
activities that have
the same
objective should
be directed by
one manager
using one plan.
Subordination of individual
• The individual
should
subordinate self-
interest to the
general good. It is
incumbent upon
management to
reduce conflict
between the
individual and the
general well being
wherever possible.
 Remuneration

 Workers must be paid a fair

wage for their services.
 Means the wages and salaries paid
to employee. It should be fair &
must be paid on time.
 It satisfy both employee &
employer
 It should be decided on-Work
allotted.
 cost of living.
  CENTRALIZATION

Fayol thought centralization of authority to be

desirable, at least for overall control. Certainly,
both
formulation of policy and the generation of
basic rules and procedures ought to be
centralized
 Scalar
chain
 The line of authority
from top management to
the lowest ranks
represents the scalar
chain. Communications
should follow this chain.
 Order

 People and materials

should be in the right
place at the right time.
 Equity

 Managers should be
kind and fair to their
subordinates.
 Stability of tenure of personnel

 High employee turnover is inefficient. Management

should provide orderly personnel planning and
ensure that replacements are available to fill
vacancies.
 Initiative.

 The power of
thinking out,
proposing and
executing.
Management
should encourage
employees to
originate and
carry out plans.
 Esprit de corps

 It means that create a

team spirit or union
is strength.
 Developed an
atmosphere of mutual
trust and understanding.
 Create a sense of
belonging employees
 It bring a loyalty,
dedication and
commitment to the