Mgt Thought

7/31/2019 Mgt Thought

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PRINCIPLES OFMANAGEMENT


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MANAGEMENT

Nature and Scope of Management

Management Process Role of a Manager

Functional Areas of Management

Development of Management Thought


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MEANING OF MANAGEMENT

Process what amanagerdoes:

planning

Organizing Staffing

coordinating

controlling

Discipline body ofknowledge andits practice

Art of getting

things done Based ofscientificprinciples ofmanagement

Art and scienceof decisionmaking andleadership

Noun

Persons who

manage

Board of directors

Management

director

Chief executive

General manager

Functional

manager


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Material humanresource

Men

material

machinery

money

methods

Methods to achieve thedesired goals

Production

Services

Profit

satisfaction


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CONTROLLING

CO-ORDINATING

DIRECTING

STAFFING

ORGANISING

PLANNING

PROCESS

OF

MANAGEMENT


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OFFICE

MANAGEMENT

PERSONAL

MANAGEMENT

FINANCIAL

MANAGEMENT

MARKETING

MANAGEMENT

PRODUCTION

MANAGEMENT

ASPECTS

OF

MANAGEMENT


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MEANING OF MANAGEMENT

As a noun

As a Process Social Process

Integrated ProcessInteractive Process

Continuous Process

As a DisciplineAs a Activity

As a Group`


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Concepts of Mgt.

Functional concept What a manager does

Human relation

concept

Art of getting things

done

Leadership&

Decision Making

Art & science of

decision making

Productivity Securing maximum

productivity

Integration Co-ordination of human

and material resources


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GENERALISED DEFINITION

INPUT

MEN

MATERIAL

MACHINERY

MONEY

METHODS

OUTPUT

PRODUCTION

SERVICES

PROFITS

SATISFICATION

SOCIAL JUSTICE

OTHERS

PROCESS

OF MANAGEMENT

PLANNING

DIRECTING

ORGANISING

CONTROLLING


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OBJECTIVES OF MANAGEMENT

Improving performance

Proper utilization of resources

Mobilizing talents

Planning for future


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IMPORTANCE OF MANAGEMENT

Achievement of group objectives

Optimum utilization of resources

Minimization of cost

Increased profit Smooth running of business

Provides innovation

Change of growth Social benefit

Helps in developing economy


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NATURE AND CHARACTERSTICS Group activity

Goal oriented

Factor of production

Universal in character

Needed at all levels of Organization

Distinct process Social process

System of authority

Dynamic function

Art & science Profession

Intangible

Multi- disciplinary


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IS MANAGEMENT A SCIENCE ORART

As an ARTPersonal skill

Practical knowledge

Result orientedapproach

Regular practice

Creativity

As a SCIENCE Systemized body of

knowledge

Continuedobservation

Universal application

Cause and effectrelationship

Validity andpredictability


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MANAGEMENT AS PROFESSION

Specialized techniques of knowledge

Formalized methods

Professional association Code of conduct

Priority of service over economic

consideration


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LIMITATIONS OF MANAGEMENTAS SCIENCE

No fundamental truths

Not always universal

Human science management cannot bepredictable

Management lacks certainty


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BUSINSS ADMINISTRATION ANDMANAGEMENT

They are two different terms

- Schulze considers administration as being concerned withthe formulation of objectives and overall policies of an

enterprise and management as an execution of policies Management is a generic term that includes

administration

Management and administration are one


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TopManagers

MiddleManagers

First-line Managers

Non-management

Three Levels of Management


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F W Taylor


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Father of Scientific Management

Principles of scientific management (replacedrule of thumb)

Organization theory (replaced personalizedautocracy/degrees of benevolence, eg, Quakerfamily businessesCadburys and Clarks)


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1881 Published paper on cuttingmetal scientifically

Later Designs of shovels permit

worker to shovel for the whole dayreduced number of workers at BethlehemSteel Works from 500 to 140

1895 Papers on incentive schemes, eg, piece

rate(studied using stop watch time study;analysis of work design leading to

method study)

1909 Text: Principles of Scientific Management


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Objectives of management under scientific

management:1. The development of a science for each element of a mans

work to replace the old rule-of-thumb methods

2. The scientific selection, training and development of workersinstead of allowing them to choose their own tasks and train

themselves as best they could.

3. The development of a spirit of hearty cooperation betweenworkers and management to ensure that work would becarried out in accordance with scientifically devisedprocedures

4. The division of work for which it is best fitted instead of theformer condition in which responsibility largely rested withthe workers. Self-evident in this philosophy areorganizations arranged in a hierarchy, systems of abstractrules and impersonal relationships between staff.


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Taylors framework for organizations:

1 Clear delineation of authority

2 Responsibility

3 Separation of planning from operations

4 Incentive schemes for workers

5 Management by exception

6 Task specialization.


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Underlying assumptions

The presence of a capitalist system and a money economy,where companies in a free market have improvement ofefficiency and the maximization of profit as their main

objective . The Protestant work ethic, that assumes that people will work

hard and behave rationally to maximize their own income,putting the perceived requirements of their organizationbefore their own personal objectives and goals

That an increased size is desirable in order to obtain theadvantages of the division of labour and specialization oftasks.


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Legacy:

Work study

Work design

Work measurement

Production control

Time and motion study

Piece work


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Scientific Management

Defined by Frederick Winslow Taylor, late 1800s.

The systematic study of the relationshipsbetween people and tasks to redesign the workfor higher efficiency.

Taylor sought to reduce the time a worker spenton each task by optimizing the way the task was

done.


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Techniques of ScientificManagement

Work study Scientific task Planning

Scientific selection, placement &training of workers.

Standardization and simplification

Mental Revolution.

Taylors Differential piece rate

system. Functional Foremanship.


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WORK STUDY

Time study : Standard time needed toperform every job

Motion Study : To analyze the movements of

workers from one place to another duringworking hours. Wasteful movements.

Method study:Aims at determining the mostappropriate method of doing any job.

Fatigue study: Physical & mental exhaustionideal time to introduce break time.


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Scientific task planning: Lays downproduction targets & achieving them. Low cost

of production, specialization, optimum use ofresources, etc.

Scientific selection, placement, &training of workers: Right man for the right

job.

Standardization & simplification:Standards for material used for manufacture,

time , method used, and working conditions. Mental revolution: Increase the size of

surplus instead of quarrelling over sharing the

surplus.


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Differential piece ratesystem.

Two rates to be set:

Standard output output 10,000 units

High rate (eg. Rs 100 per unit ) for thosewho achieve the standard or more.

Low rate (eg . Rs 50 per unit ) for thosewho cant achieve the standard.


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Functional Foremanship (8persons)

3 persons in production

Planning.

1) Route clerk

2) Instruction card clerk

3) Time & cost clerk.

4 persons in the factory.

1) Gang boss2) Speed boss.

3) Repair boss.

4) Inspector

Disciplinarian


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Problems of Scientific Management Managers often implemented only the

increased output side of Taylors plan.

They did not allow workers to share inincreased output.

Specialized jobs became very boring, dull.

Workers ended up distrusting ScientificManagement.

Workers could purposely under-perform

Management responded with increased

use of machines.


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Administrative Management

Seeks to create an organization that leads to both

efficiency and effectiveness.

Max Weber developed the concept of bureaucracy.

A formal system of organization and administration toensure effectiveness and efficiency.

Weber developed the Five principles


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Henri Fayol(1841- 1925)Fayols contribution to management:

1. Classification of business activities- 6groups

Technical ( production)

Commercial (buying, selling, exchange)

Financial

Security ( protection of property / persons)

Accounting

Managerial (PODSCORB)


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2. Elements of management

Planning Organising

Commanding

Coordinating Controlling

3.Universal Principles of Management

14 Principles of Management Universal applicability


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4. Managerial Qualities & Training

Physicalhealth, vigour and address

Mentalability to understand and learn,judgment & adaptability

Moralenergy, firmness, loyalty,

acceptance of responsibility General Education- general acquaintance

Special knowledge - peculiar to function

Experiencearising from the work proper

Fayols Principles


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Fayol s Principles Henry Fayol, developed a set of 14

principles:

1. Division of Labor:allows for job specialization. Fayol noted firms can have too much specialization

leading to poor quality and worker involvement.

2.Authority and Responsibility:Fayol included both

formal and informal authority resulting from specialexpertise.

3. Unity of Command:Employees should have only oneboss.

4. Line of Authority:a clear chain from top to bottom ofthe firm.

5. Centralization:the degree to which authority rests atthe very top.

6. Unity of Direction:One plan of action to guide the


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Fayol s Principles8. Order:Each employee is put where they have

the most value.9. Initiative:Encourage innovation.

10. Discipline:obedient, applied, respectfulemployees needed.

11.Remuneration of Personnel:The paymentsystem contributes to success.

12. Stability of Tenure:Long-term employmentis important.

13. General interest over individual interest:The organization takes precedence over theindividual.

14. Esprit de corps:Share enthusiasm ordevotion to the organization.


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MARY PARKER FOLLETT1.Constructive Conflict-

integration is the best way to resolve conflict, thandomination or compromise.

Individual differences integrated to form new opinion.

2. Laws of Situation- Depersonalise the giving of orders Agree to take orders from a given situation

Analyse & take decisions as per market situations

3.Leadership Not a matter of dominating personality

Managers should not be autocratic

Leadership product of knowledge, rather than position


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MARY PARKER FOLLETT

4. Authority & Responsibility

Concept of final authority inherent should bereplaced by an authority of functionAuthority & responsibility go with function.

5. Principles of Co- ordination

- principles of effective to achieve effective co-ordination:

Co-ordination in the early stages Coordination by direct personal contact among

persons concerned. Co- ordination of reciprocal relation of all

factors Continuous process


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PETER F DRUCKER CONTRIBUTIONS:

Nature & role of management

Managers job Economic performance

Productive work & worker achieving Managing social impacts & social responsibilities

Business objectives & social responsibilities

Entrepreneurial functions

Management by functions & self control

Federal decentralisation

Organisation structure

Decision making

Management development

Futurity.


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ROLE OF A MANAGER

Meaning:

A person in the organisation who directsothers.

Has different names at different levels.

First line managers are either foremen prsupervisors.

Functional are middle level managers

Top level president vice- president,managing director etc.


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Managerial Skills

Physical health, vigor and address

Mental ability to understand and learn

Moral energy, firmness, loyalty Educational

Technical - peculiar to function

Experience arising from the work proper


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SKILLS OF MANAGEMENT

Technical skills

Human skills

Conceptual skillsDiagnostic skills

SKILLS AT DIFFERENT LEVELS


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TOPMANAGEM

ENT

MIDDLEMANAGEMENT

LOWERMANAGEM

ENT

SKILLS AT DIFFERENT LEVELS

Conceptual

skills

Human

skills

Technical

skills


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QUALITIES OF A MANAGER

Education Intelligence

Leadership

Training Technical knowledge

Maturity

Positive attitude

Self confidence

Foresight


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ROLE OF MANAGERINTERPERSONAL Figure head Leader Liaison

INFORMATIONAL Monitor Disseminator Spokes person

DECISIONAL Entrepreneur Disturbance handler Resources allocator

Documents

Mgt Thought