09 PPM UNIT 1

Prof Karuna Jadhav ( PPM)Prof Karuna Jadhav ( PPM) 11

PRINCIPAL AND PRACTICES PRINCIPAL AND PRACTICES OF MANAGEMENTOF MANAGEMENT

PROF. KARUNA PROF. KARUNA JADHAVJADHAV


Books to be referredBooks to be referred

Scope of HRM- AshwatthapaScope of HRM- Ashwatthapa

Essential of Mgmt- KoontzEssential of Mgmt- Koontz

PPM - ShejwalkarPPM - Shejwalkar

Role of HR manager- CB Gupta and MamoriaRole of HR manager- CB Gupta and Mamoria

PPM- T.N. ChabraPPM- T.N. Chabra

Mgmt BY- Stomen & JaneMgmt BY- Stomen & Jane


UNIT I : Evolution of UNIT I : Evolution of Management Management

Concept, Definition, Need & Scope.Concept, Definition, Need & Scope.

Management Thinkers and Thoughts.Management Thinkers and Thoughts.

Nature and Process of Mgmt.Nature and Process of Mgmt.

Function of Managers and Mgmt.Function of Managers and Mgmt.

Practical Aspect Of Management.Practical Aspect Of Management.


6 M’s of Manage men t (6 M’s of Manage men t (tactfullytactfully))

1.1. MONEYMONEY2.2. MATERIALMATERIAL3.3. MACHINERYMACHINERY4.4. MARKETMARKET5.5. METHODSMETHODS6.6. MEN = MEN =

abilities+knowledge+skills+crabilities+knowledge+skills+creativeness+eativeness+

talents+aptitudetalents+aptitude


Meaning of ManagementMeaning of Management Management is an organ; organs can be described and Management is an organ; organs can be described and

defined only through their functions.defined only through their functions. By- Peter F. DruckerBy- Peter F. Drucker To manage is to forecast and plan, to organise, to To manage is to forecast and plan, to organise, to

compound, to co-ordinate and to control.compound, to co-ordinate and to control. By- Henry Fayol By- Henry Fayol Management is the art of knowing what you want to Management is the art of knowing what you want to

do and then seeing that it is done in the best and do and then seeing that it is done in the best and cheapest way.cheapest way.

By- F.W.TaylorBy- F.W.Taylor


FUNCTIONS AND PRINCIPLES FUNCTIONS AND PRINCIPLES OF MANAGEMENT ARE USED OF MANAGEMENT ARE USED

FORFOR

ACQUISITIONACQUISITION

DEVELOPING DEVELOPING

MAINTAINING MAINTAINING

REMUNERATINGREMUNERATING


History Of Management History Of Management Thought Thought

From the pre-historic times, the From the pre-historic times, the evolution of management thought can be evolution of management thought can be considered as having taken place in five considered as having taken place in five stages:stages:

1. Pre-historical1. Pre-historical 2. Organized Society2. Organized Society 3. Era of Industrial Revolution.3. Era of Industrial Revolution. 4. Towards consolidation and 4. Towards consolidation and codification.codification. 5. Recent development.5. Recent development.


Management ThinkersManagement Thinkers

Fredrick Taylor---scientific selection & Fredrick Taylor---scientific selection & systematic training and developmentsystematic training and development

PROPOUNDED THE THEORY PROPOUNDED THE THEORY

OF SCIENTIFIC MANAGEMENTOF SCIENTIFIC MANAGEMENT


Principles of Scientific ManagementPrinciples of Scientific Management

Science not rule of thumbScience not rule of thumb

Harmony in group actionHarmony in group action

Co-operationCo-operation

Maximum outputMaximum output

Improvement of workersImprovement of workers


Features of Scientific ManagementFeatures of Scientific ManagementSeparation of planning from executive functionSeparation of planning from executive functionScientific task settingScientific task settingFunctional foremanshipFunctional foremanshipWork studyWork studyMethod studyMethod studyMotion dutyMotion dutyTime studyTime studyRate settingRate settingStandardization Standardization Scientific selection and trainingScientific selection and trainingFinancial incentivesFinancial incentivesMental revolutionMental revolutionEconomyEconomy


Contributions of F.W.TaylorContributions of F.W.Taylor

Time study & motion study were first conducted by Time study & motion study were first conducted by him.him.

Known as the first person to separate the planning Known as the first person to separate the planning function from executive functionfunction from executive function

First person who separate mental revolution both First person who separate mental revolution both on the part of the employer and the employee. on the part of the employer and the employee.

Functional foreman concept was first invented by Functional foreman concept was first invented by him.him.

He has applied the principles of scientific He has applied the principles of scientific management to solve the problems of management.management to solve the problems of management.


Theory of Mgmt - FayolTheory of Mgmt - FayolHenry Fayol (1841-1925) :Henry Fayol (1841-1925) : He has been considered as the real father of modern He has been considered as the real father of modern

management science.management science.

Fayol has identified six activities :Fayol has identified six activities : Technical - Production, Manufacturing.Technical - Production, Manufacturing. Commercial - Buying, selling & exchange.Commercial - Buying, selling & exchange. Financial - Search for & optimum use Financial - Search for & optimum use

of capital.of capital. Accounting - Stock taking, balance sheet, Accounting - Stock taking, balance sheet,

statistics.statistics. Security - Protection of Property & Security - Protection of Property &

Person.Person. Managerial - Co-ordination & control.Managerial - Co-ordination & control.


14 Principles of 14 Principles of organization:organization:

1.1. Division of work.Division of work.2.2. Delegation of Authority & Responsibility.Delegation of Authority & Responsibility.3.3. Unity of command.Unity of command.4.4. Unity of Direction.Unity of Direction.5.5. Discipline.Discipline.6.6. Subordination of individual interests to the Subordination of individual interests to the

general interest.general interest.7.7. Remuneration of personnel.Remuneration of personnel.8.8. Centralization.Centralization.9.9. Scalar Chain.Scalar Chain.10.10. Order.Order.11.11. Equity.Equity.12.12. Stability for tenure of personnel.Stability for tenure of personnel.13.13. Initiative.Initiative.14.14. Esprit de corps.Esprit de corps.


Hawthrone experimentsHawthrone experiments Elton MayoElton Mayo who conducted experiments at the who conducted experiments at the

Hawthrone plant of the Western Electric Hawthrone plant of the Western Electric Company at Chicago. Features are :Company at Chicago. Features are :

1.1. A business organisation is basically a social A business organisation is basically a social system. it is not just a technoeconomic system.system. it is not just a technoeconomic system.

2.2. Management must learn to develop co-operative Management must learn to develop co-operative attitudes and not rely merely on command.attitudes and not rely merely on command.

3.3. Participation becomes an important instrument Participation becomes an important instrument in human relation movement. It Need effective in human relation movement. It Need effective two-way communication network.two-way communication network.

4.4. Productivity is linked with employee satisfaction Productivity is linked with employee satisfaction in organisation.in organisation.

5.5. Group psychology plays an important role in Group psychology plays an important role in any organisation.any organisation.


Nature of ManagementNature of ManagementArt as well as scienceArt as well as science

Management is an activityManagement is an activity

Management is a continuous processManagement is a continuous process

Management achieving pre-determined objectivesManagement achieving pre-determined objectives

Organized activitiesOrganized activities

Management is a factor of productionManagement is a factor of production

Management as a system of activityManagement as a system of activity

Management is a disciplineManagement is a discipline

Management is a purposeful activityManagement is a purposeful activity


Management aims at maximizing profitManagement aims at maximizing profit

Management is a professionManagement is a profession

Management as a careerManagement as a career

Management is needed at all levelsManagement is needed at all levels

Management is dynamicManagement is dynamic

Management is direction & controlManagement is direction & control

Management developed leadership qualityManagement developed leadership quality


PlanningPlanning

Controlling Controlling organizingorganizing

Decision Making Decision Making LeadingLeading

StaffingStaffing

Functions of managementFunctions of management

Decision based on Wisdom & knowledge


Function of ManagerFunction of ManagerPlanning the workPlanning the work

Taking decisionsTaking decisions

Delegating authorityDelegating authority

Solving the problemsSolving the problems

Co-ordinationCo-ordination

Stimulating workersStimulating workers

Setting targetSetting target

Guiding sub-ordinatesGuiding sub-ordinates

Arranging the facilitiesArranging the facilities

Control the deviationsControl the deviations


Attributes & Skills for Attributes & Skills for Manager :Manager :

Commitment : To the task & to the organizationCommitment : To the task & to the organizationCompetence :Work skill, knowledge, informationCompetence :Work skill, knowledge, informationCredibility : Must be regarded as dependable.Credibility : Must be regarded as dependable.Creativity : Must have fascination for discovering Creativity : Must have fascination for discovering better methods of work.better methods of work.Character : Must not compromise in standards Character : Must not compromise in standards and quality of work.and quality of work.

The manager must use the following six ‘M’ The manager must use the following six ‘M’ resources in proper way.resources in proper way.

1. Men 2. Materials 3. Machines1. Men 2. Materials 3. Machines 4. Methods 5. Money 6. Markets4. Methods 5. Money 6. Markets


Manager must learn skills Manager must learn skills

::

Operating skillOperating skill

Organizing skillOrganizing skill

Behavioural skillBehavioural skill

Conceptual skillConceptual skill

Communication skill Communication skill

Judgment skillJudgment skill


LAWRENCE APPLEYLAWRENCE APPLEY {FORMER PRESIDENT {FORMER PRESIDENT

OF AMERICAN MANAGEMENT ASSOCIATIONOF AMERICAN MANAGEMENT ASSOCIATION}}

““PM is a PM is a function of guiding human function of guiding human resources into a dynamic organizationresources into a dynamic organization that that attains its objectives with a high degree of attains its objectives with a high degree of morale and to the satisfaction of those morale and to the satisfaction of those concerned. It is concerned with getting concerned. It is concerned with getting results through people.”results through people.”


Evolution of ManagementEvolution of Management

It may be stated that concern for the welfare of It may be stated that concern for the welfare of workers in the management of business workers in the management of business enterprises has been in existence since ages.enterprises has been in existence since ages.

Kautilya’s Arthashastra states that there existed a Kautilya’s Arthashastra states that there existed a sound base for systematic management of sound base for systematic management of human resources in the 4human resources in the 4thth century B.C. century B.C.

The Babylonians had a code for incentive wage The Babylonians had a code for incentive wage plans in 1800 B.C.plans in 1800 B.C.


Industrial revolution----- large scale Industrial revolution----- large scale production-----invention of steam enginesproduction-----invention of steam engines

1776-----Adam Smith ------principles of 1776-----Adam Smith ------principles of specializationspecialization

1880-----James Watt----- standards of operating 1880-----James Watt----- standards of operating procedures, specifications of work methods, procedures, specifications of work methods, incentives, wages and bonusincentives, wages and bonus


Stages in the evolution of Stages in the evolution of

Management Management1.Industrial Revolution Era1.Industrial Revolution Era : :

This era consisted essentially of the This era consisted essentially of the development of machinerydevelopment of machinery..

2.Scientific Management Era2.Scientific Management Era : :

The scientific management movement The scientific management movement owes its origin to Fredrik W. owes its origin to Fredrik W. Taylor known as the father of Taylor known as the father of scientific management. He was the scientific management. He was the 11stst to recognize and emphasize the to recognize and emphasize the need for adopting a scientific need for adopting a scientific approach to the task of managing approach to the task of managing an enterprisean enterprise. .


Contribution of Scientific ManagementContribution of Scientific Management

1.1. Emphasis on rational thinking on Emphasis on rational thinking on the part of management.the part of management.

2.2. Focus on the need for better Focus on the need for better methods of industrial work methods of industrial work through systematic study and through systematic study and research.research.

3.3. Emphasize on planning and Emphasize on planning and control of production.control of production.

4.4. Development of cost accounting.Development of cost accounting.5.5. Development of incentive plans of Development of incentive plans of

wage payment based on wage payment based on systematic study of work.systematic study of work.

6.6. Focus on the need for a separate Focus on the need for a separate personnel department.personnel department.


Paternalistic Era:Paternalistic Era:

Robert OwenRobert Owen, a British , a British industrialist is considered to be industrialist is considered to be the father of the father of PersonnelPersonnel Management Management , worked for the , worked for the welfare of the workers and tried welfare of the workers and tried to develop a spirit of co-to develop a spirit of co-operation between the workers operation between the workers and the management. He and the management. He adopted a paternalistic attitude adopted a paternalistic attitude towards his employees.towards his employees.

He regarded the workers as He regarded the workers as children who must be cautiously children who must be cautiously guided, trained and protected.guided, trained and protected.


1810-----Robert Owen 1810-----Robert Owen

( FATHER OF PERSONNEL ( FATHER OF PERSONNEL

MANAGEMENT )MANAGEMENT )----- -----

------Reduced working hours Reduced working hours

---Housing facilities---Housing facilities

---Education of workers & children ---Education of workers & children

---System of discipline---System of discipline

---Justice in factories---Justice in factories

---Took part in introduction of the ---Took part in introduction of the British Factory Act in 1819.British Factory Act in 1819.


Robert OwenRobert Owen advised other advised other manufacturers to devote more manufacturers to devote more attention to workers in order to attention to workers in order to increase productivity because the increase productivity because the workers according to Owen are workers according to Owen are the vital machine.the vital machine.

According to According to Charles BabbageCharles Babbage, , the emphasis should be on the emphasis should be on multiplicity of interests between multiplicity of interests between employers and workers and on employers and workers and on the division of labour, for such the division of labour, for such division of labour would reduce division of labour would reduce the waste in raw materials, the waste in raw materials, achieve savings through more achieve savings through more effective placement of workers.effective placement of workers.


Industrial Psychology Era :Industrial Psychology Era :Application of psychology to Application of psychology to business and industry, began to business and industry, began to emerge in 1890’s as emerge in 1890’s as psychologists studied selling psychologists studied selling techniques and ways of testing techniques and ways of testing job candidates. The most job candidates. The most notable industrial psychologist notable industrial psychologist was was Munster bergMunster berg, whose , whose major contribution were: major contribution were: The analysis of jobs in terms The analysis of jobs in terms their physical , mental and their physical , mental and emotional requirements. emotional requirements. The development of testing The development of testing devices for selecting workersdevices for selecting workers


Human Relation EraHuman Relation Era

What came to be called the human What came to be called the human relations movement has been a relations movement has been a major influence on modern major influence on modern management. This movement is management. This movement is characterised by its focus on group characterised by its focus on group behaviour and workers feelings as behaviour and workers feelings as they relate to productivity and they relate to productivity and morale.morale.


Hawthrone experimentsHawthrone experiments Elton MayoElton Mayo who conducted experiments who conducted experiments

at the Hawthrone plant of the Western at the Hawthrone plant of the Western Electric Company at Chicago. Features Electric Company at Chicago. Features are :are :

1.1. A business organisation is basically a A business organisation is basically a social system. it is not just a social system. it is not just a technoeconomic system.technoeconomic system.

2.2. Management must learn to develop co-Management must learn to develop co-operative attitudes and not rely operative attitudes and not rely merely on command.merely on command.

3.3. Participation becomes an important Participation becomes an important instrument in human relation instrument in human relation movement. It Need effective two-way movement. It Need effective two-way communication network.communication network.

4.4. Productivity is linked with employee Productivity is linked with employee satisfaction in organisation.satisfaction in organisation.

5.5. Group psychology plays an important Group psychology plays an important role in any organisation.role in any organisation.


Behavioural Science EraBehavioural Science EraHuman Relation made very significant Human Relation made very significant contribution to management thought contribution to management thought by bringing into limelight Human and by bringing into limelight Human and social factors in organisation.social factors in organisation.The behavioural science movement is The behavioural science movement is an outgrowth of the human relations an outgrowth of the human relations studies.studies.The method of research in the The method of research in the behavioural era made use of data behavioural era made use of data obtained from Experiments, obtained from Experiments, Observations and surveys in Observations and surveys in disciplines like sociology, disciplines like sociology, anthropology, social science.anthropology, social science.The various theories formulated in the The various theories formulated in the behavioural science era are:behavioural science era are:


TheoriesTheories : :1. Maslow’ Need Hierarchy 1. Maslow’ Need Hierarchy Theory or Deficit Theory of Theory or Deficit Theory of Motivation.Motivation.

2. Herzberg Two Factors 2. Herzberg Two Factors Theory of Motivation.Theory of Motivation.

3. Theory X and Theory Y.3. Theory X and Theory Y.


Personnel Specialist Era & Personnel Specialist Era & Welfare Era:Welfare Era:

With the introduction of the factory With the introduction of the factory system, a large number of persons were system, a large number of persons were employed by one organisation.employed by one organisation. These employees were to be controlled if These employees were to be controlled if the goals of that organisation were to be the goals of that organisation were to be achieved.achieved. With the increase in the number of With the increase in the number of employees, a separate personnel employees, a separate personnel specialist had to be appointed specialist had to be appointed


Responsibilities :Responsibilities :

To assist the line manager to maintain To assist the line manager to maintain optimum efficiency of the work force.optimum efficiency of the work force.To assist management in the field of To assist management in the field of human relations, labour management human relations, labour management relations and to develop personnel relations and to develop personnel policies and procedures.policies and procedures.To manage welfare services for the To manage welfare services for the benefit of the employees.benefit of the employees.


Management thinkersManagement thinkers

Gilbreth, his wife Gilbreth, his wife Lilian Gilbreth and Lilian Gilbreth and Mary Parker FolletMary Parker Follet

Stressed upon the Stressed upon the training aspect of training aspect of managementmanagement

Elton MayoElton Mayo

Hawthorne Hawthorne experiments, which experiments, which emphasized on group emphasized on group behavior, human behavior, human relations, morale and relations, morale and motivation motivation


Role of ManagerRole of Manager

HUMANITARIAN HUMANITARIAN

COUNSELLOR COUNSELLOR

MEDIATORMEDIATOR

SPOKESMANSPOKESMAN

PROBLEM PROBLEM SOLVER SOLVER

CHANGE AGENTCHANGE AGENT

FIRE FIGHTERFIRE FIGHTER

CONTROLLERCONTROLLER

SPECIALISTSPECIALIST


ROLE OF PERSONNEL ROLE OF PERSONNEL MANAGERMANAGER

1.1. Personnel rolePersonnel role

a.a. Advising mgntAdvising mgnt

b.b. Manpower planningManpower planning

c.c. Training and Training and developmentdevelopment

d.d. Measurement and Measurement and assessment of assessment of individuals and group individuals and group behaviorbehavior

2.2. Welfare roleWelfare role

a.a. Research roleResearch role

b.b. Managing services Managing services like canteen, like canteen, transport etctransport etc

c.c. Group dynamics like Group dynamics like motivation leadership motivation leadership communicationcommunication


ROLE OF PERSONNEL ROLE OF PERSONNEL MANAGERMANAGER

3.3. Administrative roleAdministrative rolea.a. Time keepingTime keepingb.b. Salary and wage adminSalary and wage adminc.c. Human engineering-Human engineering-

man machine man machine relationshiprelationship

4.4. Fire-fighting Fire-fighting

legal rolelegal role

a.a. Grievance handlingGrievance handling

b.b. Settlement of Settlement of disputesdisputes

c.c. Handling disciplinary Handling disciplinary actionaction

d.d. Collective bargainingCollective bargaining

e.e. Joint consultationJoint consultation


Quality of personnel managerQuality of personnel manager

Educational qualificationEducational qualification

a.a. Degree of a recognised univ.Degree of a recognised univ.

b.b. Post graduate degree or diploma in sociology Post graduate degree or diploma in sociology or personnel mgmt, industrial relations, labour or personnel mgmt, industrial relations, labour welfare, labour law or MBA with specialisation welfare, labour law or MBA with specialisation in HRin HR

c.c. A degree in law is a another desirable A degree in law is a another desirable qualification.qualification.


Qualities in PMQualities in PM

Personal attributesPersonal attributes

a.a. IntelligenceIntelligence

b.b. Communicative abilityCommunicative ability

c.c. DecisivenessDecisiveness

d.d. Tact & resourcefulnessTact & resourcefulness

e.e. Sympathy & considerationSympathy & consideration

f.f. Leadership skillsLeadership skills


Qualities in PMQualities in PM

Professional ApproachProfessional Approach

a.a. Knowledge of constitutionKnowledge of constitution

b.b. Government’s policy towards labour.Government’s policy towards labour.

c.c. Training in industrial psychologyTraining in industrial psychology

d.d. Labour relationsLabour relations

e.e. Sound knowledge of economiesSound knowledge of economies


Prof. Jucius has emphasized upon Prof. Jucius has emphasized upon some additional knowledge assome additional knowledge as

PhilosophyPhilosophy

EthicsEthics

LogicLogic

MathematicsMathematics

SociologySociology

AnthropologyAnthropology

MedicineMedicine

HistoryHistory

EconomicsEconomics

Management Management

Political sciencePolitical science

09 PPM UNIT 1

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