Concept based notes. Principles and Practices of Management. MBA-(I Sem). Navleen Kaur. Richa Khunteta. MBA faculty (BISMA). Biyani Institute of Science. R. Sivarethinamohan and P. Aranganathan, “Principles of Management”, 1st Edition, . published a book on “the principles of scientific management” in UNIT I OVERVIEW OF MANAGEMENT Definition - Management - Role of managers - Evolution of Management thought - Organization and the.
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This tutorial talks about the Principles of Management, the basic guidelines that This tutorial first justifies how management is both an art as well as science. Here is a compilation of notes on the principles of management: 1. Definition of Management 2. Socio-Economic and Cultural Significance of Management 3. Engineering Class handwritten notes, exam notes, previous year questions, PDF free download.
Equity: The working environment of any organization should be free from all forms of discrimination religion, language, caste, sex, belief or Basis Unity of Command Unity of Direction nationality and principles of justice and fair play should be followed.
No worker should be unduly favoured or punished. Stability of Personnel: After being selected and appointed by rigorous procedure, the selected person should be kept at the post for a minimum period decided to show results.
Initiative: Workers should be encouraged to develop and carry out their plan for improvements. Initiative means taking the first step with self-motivation. It is thinking out and executing the plan. Espirit De Corps: Management should promote team spirit, unity and harmony among employees. Management should promote a team work. Taylor conducted a number of experiments and came to conclusion that workers were producing much less than the targeted standard task.
Also, both the parties — Management and workers are hostile towards each other. He gave a number of suggestions to solve this problem and correctly propounded the theory of scientific management to emphasize the use of scientific approach in managing an enterprise instead of hit and trial method. Scientific Management attempts to eliminate wastes to ensure maximum production at minimum cost. Principles of Scientific Management 1 Science, not rule of Thumb: There should be scientific study and analysis of each element of a job in order to replace the old rule of thumb approach or hit and miss method.
We should be constantly experimenting to develop new techniques which make the work much simpler, easier and quicker.
This will increase the productivity by utilizing the skills of the workers to the fullest possible extent. Functional Foreman-ship: Functional foreman-ship is a technique in which planning and execution are separated. There are eight types of specialized, professionals, four each under planning and execution who keep a watch on all workers to extract optimum performance.
Planning Incharges: 1. Route Clerk to specify the exact sequence and route of production. Instruction card clerk is responsible for drafting instructions for the workers. Time and cost clerk to prepare time and cost sheet for the job. Shop Disciplinarian to ensure discipline and enforcement of rules and regulations among the workers. Production Incharges: 1. Gang boss is responsible for keeping tools and machines ready for operation.
Speed boss is responsible for timely and accurate completion of job. Repair boss to ensure proper working conditions of tools and machines. Inspector to check quality of work. The strength of an organisation largely depends on its ability to marshall various human and non-human resources to attain a goal.
It is obvious that the more integrated and coordinated the work of an organisation, the more effective it is likely to be. It is the job of the manager to achieve this co-ordination.
In this context, we have to do three things: i To discuss different ways of getting work in organisations such as staffing, designing jobs, establishing work schedules, using committees and the management of conflict ; ii To explain how all these various elements and concepts fit together to form an overall organisation structure or design; and iii To highlight the importance as also the problems associated with organisational change and development i.
Leading: Motivating and Managing Employees: Once the organisation process is complete, different people are to be given different assignments and put at appropriate places. But the job of the manager does not end here. Rather, it is the beginning of the hardest part of the management process — leading.
Leading is the set of processes used to get members of the organisation to work together to further the interests of the organisation. It is not the task of managers to give orders, but to create proper atmosphere so as to help subordinates to their best. Rather they get others to perform essential tasks.
Four Sub-functions: The leading function consists of four different activities. It involves giving employees the opportunity to attain individual goals and rewards through their performance on the job. A second aspect of leading is leadership itself. The third part of the leading function has to do with groups and group process. An inherent part of the organising process is the initial creation of groups in a company. However, once this activity is over, the manager has to deal with groups, i.
The fourth and final component of leading is communication, not communication for its own sake, but communication with a purpose, i. It is concerned with recruitment, or, selection of the right type of people as also proper manpower planning, it is also concerned with job evaluation and merit rating performance appraisal. Controlling: Monitoring and Evaluating Activities: The final phase of the management process is controlling. As the organisation moves toward its goal, management must monitor its progress.
If there is any deviation from the path it has to be corrected as soon as possible. This monitoring and corrective function is known as controlling.
The term controlling refers to the process of measuring and monitoring actual performance in companies with pre-determined objectives, plans, standards and budgets and taking any corrective action required.
Controlling helps ensure the effectiveness and efficiency needed for successful management. No doubt, people are the most important resource of an organisation. But manages must also rely on other resources available to them to achieve the best possible results. For example, a marketing manager, whose objective is to increase sales, must not only motivate the sale force but also spend huge amount of money on advertising and sales promotion.
The process is essential to the functioning of all types of organisations — profit and non-profit; the necessary resources human and material must be acquired and combined in some way to produce a useful goods or to generate a valuable service.
The general process in the manufacture of a motor car, an audit of accounting records, the insurance of a government regulation, or the education of student. The implication is that managers of any organisation — be a profit-seeking firm, a hospital, a government department or a sports club — must try to attain specific ends.
These ends, of course, do vary from organisation to organisation. But management is the process by which the goals are sought to be achieved. See Fig. The Most Accepted One: Perhaps the most widely accepted definition of management is the following one suggested by H. To sum up, there are five basic functions of management: planning and decision-making, organising, leading directing , staffing and controlling.
However, from our real life we see that every activity we undertake involves an element that ensures coordination and cohesiveness to the activity, without which our acts would be random, stumbling, unproductive and, thus, ineffective.
The element that infuses plan and objective, as well as cohesion, into our activities is called management.
Notes on the Nature of Management: Management is both a simple and a complex activity. In other words, its intensity complexity varies with and depends on circumstances. Managing a small single-owner firm is not the same thing as managing a giant multinational company like Union Carbide or ITC Ltd.
Management in a simple undertaking may simply encompass such activities as receiving, sorting remembering , translating and communicating information. In such an organisation, the manager who directs the efforts of a labourer who loads a certain article, say radio or pressure cooker, into a lorry, may just instruct the loader what needs to be loaded, how it should be packed and direct how it should be unloaded once the lorry reaches its destination.
To the manager of an organisation, the basic task is to see what needs to be done and to tell his men what to do. There management consists of getting things done through others; a manager is one who accomplishes objectives by directing the efforts of others. Contrarily, some organisations are complex in structure. Managing these may require skills other than just issuing verbal orders.
It may necessitate technical knowledge and skills, a wide perception of the international market and world demand and an understanding of the business environment in which the company operates and a clear thinking of the decisions affecting the outcome of the operations made. Top management — be it the chief executive of a company or president of a large firm or head of a government undertaking — will have to take note of these realities irrespective of the organisational framework. Decision-Making: Management is essentially a decision-making process, and to manage well a manager has to take the right decision at the right time.
As management becomes more and more technical and complex the volume of decision-making increases proportionately, or more than proportionately, in some cases.
Furthermore, if one accepts that there is a limit to the number of people an executive can deal with, rather exclusively, it is essential that decision-making is properly shared. Broadly, decisions are of two kinds: policy-decisions and crisis decisions. In normal running of a business there are crisis decisions. The crisis point is simply emphasised to underscore the point that top management should not allow itself to go off the track.
Decisions vary in the way they commit an undertaking in the future and in the number of people they affect. Management, in a word, becomes more analytical and less intuitive. Says R. Confused orders and delayed actions are signs of a management that is incapable of decisive thought. Every industrial or commercial organisation requires the making of decisions, the coordination of diverse as well as interrelated activities, the handling of people and the evaluation of performance directed towards group objectives or goals.
The dynamics of it should necessarily be the characteristic of any study of its theory and practice.
In general, the word management implies identifying a special group of people whose job is to direct effort towards common objectives through the activities of other people.
This process involves techniques by which a distinguishable group of people managers co-ordinates activities themselves. This process consists of certain basic functions. Notes on the Managerial Acts: The list of function of a manager is a big one and can hardly be made exhaustive. Yet, in a nutshell, it may be said that a manager — a Talks to employees, b Gives directions to supervisors, c Dictates letters, e Reads communications, reports, etc. The activities thus listed and professionally undertaken by a manager are either physical or mental in nature.
The physical activities came under the broad concept of communication. The manager is either communicating something in writing, over the telephone, by gesture, etc. These activities can be observed directly. Certainly, mental activities are not directly observable.
Decision-making is basically a mental activity and belief about it must be created among the persons concerned. To quote C.
George, Jr. In fact, if such an environment is not created, employees will be reluctant to join him in accomplishing the desired tasks. Notes on the Process of Management: The process of management can be analysed by describing the various functions performed by management.
Planning: In an uncertain world every manager must, to a considerable extent, make plans for the future in order to avoid uncertainty by adopting certain safeguards against it. Short-run plans are basically concerned with the efficient use of scarce eisting resources of a firm. Contrarily, long-run plans may encompass such things as the provision for new physical resources as short-run plans.
Moreover, the crucial factor that extends the range of planning is uncertainty. Company planning goes under the name corporate planning or strategic planning. The practice of corporate planning is now established on a worldwide basis and it continues to grow rapidly. The interest in planning stems from the fact, in some situations that management and planning are virtually synonymous. Various benefits can be derived from a formal approach to planning.
It forces a manager to think forward and anticipate problems in advance much before they occur. It provides a detailed forecast. This enables the business manager to eliminate uncertainty regarding the future and thus take rational decision on the basis of such forecast. Moreover, detailed planning enables a manager to delegate with more confidence. Within the overall framework of corporate plan, a subordinate can be given a fair amount of autonomy and independence, while his superior, on the other hand, retains general control.
Planning may, therefore, be treated as a natural part of the management process. Corporate planning, however, lays stress on a regular review of strategy. In short, corporate planning is nothing other than a systematic approach to strategic decision making. Benefits of Planning: Companies, while introducing corporate planning, foresee the following benefits: 1.
To improve coordination between divisions. To achieve successful diversification. To ensure a rational allocation of resources. To anticipate technological changes. Steps in Planning: Various steps are involved in planning: 1. The first step involves the selection of organisational goals. The second step consists of establishing goals for various divisions and departments within the organisation.
After deciding upon the goals, in the next step programmes are established for achieving them in a systematic manner. Duration and Size of Plans: Plans made by top management for the whole organisation may cover a time period of five to ten years.
In giant corporations, such plans may involve commitments of crores of rupees. However, planners at the lower levels, and middle level or first line managers may cover much shorter period and involve lesser amounts. There is need for different types of organisations to achieve different objectives. And they must have the ability to develop and later to lead that type of organisation.
Organising is the process by which the structure and allocation of jobs are determined. It is widely recognised that a manager must organise — organise people, organise materials, organise jobs, organise time. Through this process he brings order out of chaos and introduces his system into an environment which is likely to be conducive to achieving the organisational goals and objectives.
A quote from C. Rather than do this, the officer in question should be supplanted. In no case should a subordinate be criticized in the presence of executives or employees of equal or lower rank. Staffing: Writers on organisation often consider staffing an organisation to be a part of the organising function.
The manager must appoint personnel to manage the organisational activities created and must continually appraise their performance relative to agreed upon goals and objectives.
Some management experts, however, hold a different view. They list staffing as a separate management function or consider it to be a part of the leadership function. Staffing refers to the process by which managers select, train, promote and retire subordinates.
In organising, as we have noticed, the manager establishes positions and decides which duties and responsibilities properly belong to each one. In staffing, he tries to locate the right man for each job. And staffing obviously cannot be done once and for all, since people are continually leaving, getting fired, retiring and dying.
Directing Leading : After making the plans and establishing the organisation and staffing it, the manager has to move toward the declared objectives of the organisation. In this sense actuation includes motivation, leadership, communication, training and personal influence. As such, this function is often discussed as directing and executing the work that must be done. In addition, while providing direction for behaviour, actuating becomes closely interrelated with the other functions of planning, organising and controlling.
This entails monitoring numerous details on a continuous basis in a timely and effective manner. A related point may be noted in this context.
Planning and organising functions do focus, at least partly, on more abstract aspects of the management process. On the contrary, the activity of leading focuses directly on the organisational people. In short, leading refers to the process by which actual performance of subordinates is guided towards common goals.
In an uncertain world no one can predict with precision what problems and opportunities will arise in daily work. It is therefore necessary for the manager to get some guidelines for action and provide day-to-day direction for his subordinates.
This managerial function, in fact, consists of those activities that deal directly with influencing, guiding, or supervising subordinates in their jobs. A good manager must ensure that his subordinates know the results he expects in each situation, help them to improve their skills and, on occasions, tell them exactly how and when to perform the needed tasks.
In other words, he must make his subordinates feel that they, too, apply themselves fully, not merely work well enough to get by. Controlling: Finally, an important task of the manager is to ensure that the actions of the people in the organisation do in fact move the organisation towards the stated goals. This is the control function of management and involves comparing results to plans and taking appropriate action.
It involves the following three elements: 1.
Establishing standards of performance; 2. Measuring current performance and comparing it against the established standards; and 3. Taking action to correct any performance that does not meet those standards.