Introduction to Management LECTURE 21: Introduction to Management MGT 101 1.
Introduction to Management
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Transcript of Introduction to Management
Introduction to Management
Definition
Management is the art of getting things done
through and with people in formally organized
group.
Management is defined for conceptual, theoretical
and analytical purpose as that process by which
manager create, maintain, direct and operate
purposive organization through systematic, co-
operative and coordinated human efforts.
Features of Management
Organized activities
Existence of objectives
Working with and through people
Relationships among resources
Decision making
Nature of Management
Multidisciplinary
Dynamic nature of principles
Relative but not absolute
Science
Art
Profession
Universality of management
Management and Administration – A Terminological Conflict
These controversies have resulted into
three different approaches:
1) Administration is above management
2) Administration is a part of management
3) Administration and Management are same
F. W. Taylor’s contribution in Management
Taylor developed scientific management
based on his experience.
His contributions can be described in two
parts :
1) Main features of scientific management
2) Principles of scientific management.
Features of Scientific Management
Separation of planning and doing
Functional foremanship
Job analysis
Standardization
Scientific selection and training of workers
Financial incentive
Economy
Mental revolution
Workshop Manager
Planning incharge Production incharge
Route Clerk
Instruction card clerk
Time and cost clerk
Disciplinarian
Speed boss
Inspector
Maintenance foreman
Gang boss
Worker
Principles of Scientific Management
Replacing the rule of thumb with science
Harmony in Group action
Co-operation
Maximum output
Development of workers
Contribution of Henry Fayol
Fayol observed in certain activities of an industrial
organization which could be divided into six groups:
Technical, Security, Financial, Commercial,
Accounting and Managerial
He has divided his approach of studying
management in to 3 parts:
1) Managerial qualities and training
2) General principles of management
3) Elements of management
Managerial Qualities
Physical (health, vigour)
Mental (judgment and adaptability)
Moral (energy, initiative loyalty)
Educational
Technical
Experience
General principles of Management
Division of workAuthority and responsibilityDisciplineUnity of commandUnity of directionSubordination of individual to general
interestRemuneration of personnelCentralization
Continue..Scalar chain
OrderEquityStability of tenureInitiativeEsprit de corps
AGB
C H
D IJE
KF
Elements Of Management
Planning
Organizing
Staffing
Directing
Controlling
Fundamentals of Planning
Introduction
Definition : “Planning is the selection and relating of facts and making and using of assumptions regarding the future in the visualization and formalization of proposed activities believed necessary to achieve desired result.’
Importance of planning
Primacy of planning
To offset uncertainty and change
To focus attention on objective
To help in coordination
To help in control
To increase the organizational effectiveness
Planning process
Perception of opportunities
Establishing objectives
Planning premises
Identification of alternatives
Evaluation of alternatives
Choice of alternative
plans
Formulation of supporting
plans
Establishing sequence of
activities
Types of Plans
Objectives and MBO
Introduction
Objectives may be defined as the end results which an organization tries to achieve.
It also defines as the goals, purposes or aims that organizations wish to achieve over varying periods of time.
Hierarchy of Objective
Top Level
Middle Level
Lower Level
Functions and Contributions
Defines organization
Direction for decision making
Performance standard
Basis for decentralization
Integrating individual, group and
organization
MBO (Management by Objectives
IntroductionMBO is a comprehensive managerial
system that integrates many key managerial activities in a systematic manner, consciously directed towards the effective and efficient achievement of organizational objectives.
MBO ProcessOrganizational Purpose and
objectives Planning Premises
Key Result Areas (KRA)
Superior’s objectives
Superior’s recommendation for subordinate’s objectives
Subordinate’s statement to his objectives
Subordinate’s agreed objectivesMatching resources
Subordinate’s Performance
Performance appraisal and Review
Recycling
Benefits of MBO
Better managing
Clarity in organizational action
Personnel satisfaction
Basis for organizational change
Decision Making Process
Specific objectives
Identification of problems
Search for alternatives
Evaluation of alternatives
Choice of alternatives
Action Results
Diagnosis Analysis
Experience
Experiments
R & D
LEADERSHIP
LEADERSHIP
Definition
“Leadership is interpersonal influence exercised in a situation and directed through communication process, towards the attainment of a specified goal or goals.”
Terry has defined leadership as a “ continuous process of influencing behaviour.”
Simply defined as “ Leadership is the process of influencing and supporting others to work enthusiastically towards achieving objectives.”
Difference between a Leader and a Manager
Manager Appointment Formal authority Focus on the organizational
objectives About efficiency i.e doing
things right About coping with
complexity, about brining order and consistency to organizational life
Authority is depends on his position
Leader Emerges Informal power Focus on the followers About effectiveness i.e.
doing right things About coping with change,
about bringing a sense of purpose and direction
Power is depends on the leader’s ability
Importance of Leadership
1) Motivating Employees
2) Creating Confidence
3) Building Morale
Leadership Approach
Behavioural Approach
- Autocratic Leadership
- Participative / Democratic Leadership
- Free-rein Leadership (Laissez-faire)
Situational Approach
Theories of Leadership
Trait Theory- Personal qualities : Physical & Intelligence - Acquirable qualities :Emotional Stability,
Empathy, Motivating, Communication, Human Relations, Social, Technical SkillsBehavioural Theory
- Task oriented behaviour or problem oriented- Group oriented behaviour
Theories of LeadershipSituational theory
Motivation
Definition
Maslow’s Need Hierarchy Theory
- Lower Needs : Physiological need (hunger etc.,)
Safety and Security
- Higher Needs : Social (Belongingness)
Self-esteem ( recognition and attention)
Self-Actualisation (maximizing the use of abilities, skills
and potential)
Needs of Individuals
Providing Satisfactory environment for need
fulfillment
Engagement in work
A. H. Maslow’s hierarchy of needs
PHYSIOLOGICAL OR SURVIVAL NEEDS
SAFETY NEEDS
LOVE, AFFECTION, AND BELONGINGNESS NEEDS
ESTEEM NEEDS
SELF-ACTUALIZATION
ATTITUDE
Meaning
Features
Functions
Factors affecting to Attitude formation
Job Satisfaction
IntroductionFactors affecting Job Satisfaction :
1) Personal : Age, Education , Gender, other
2) Organizational : Occupational Level, Job Content, Considerate Leadership, Pay & Promotion, Work Group
Types of Business Organization
Private Sector Organization
Public Sector Organization
Joint Sector Organization – Venture captial company
Private Sector Organization
Sole Proprietorship
Partnership
Joint Stock companies
Co-operative Societies
Public Sector Organization
Government Departments
Public organization
Government Companies
Definition
“Leadership is interpersonal influence exercised in a situation and directed through communication process, towards the attainment of a specified goal or goals.”
Terry has defined leadership as a “ continuous process of influencing behaviour.”
Simply defined as “ Leadership is the process of influencing and supporting others to work enthusiastically towards achieving objectives.”
Difference between a Leader and a Manager
Manager Appointment Formal authority Focus on the organizational
objectives About efficiency i.e doing
things right About coping with
complexity, about brining order and consistency to organizational life
Authority is depends on his position
Leader Emerges Informal power Focus on the followers About effectiveness i.e.
doing right things About coping with change,
about bringing a sense of purpose and direction
Power is depends on the leader’s ability
Importance of Leadership
1) Motivating Employees
2) Creating Confidence
3) Building Morale
Leadership Approach
Behavioural Approach
- Autocratic Leadership
- Participative / Democratic Leadership
- Free-rein Leadership (Laissez-faire)
Situational Approach
Theories of Leadership
Trait Theory- Personal qualities : Physical & Intelligence - Acquirable qualities :Emotional Stability,
Empathy, Motivating, Communication, Human Relations, Social, Technical SkillsBehavioural Theory
- Leadership styles or approaches (Power orientation based)
Path goal model of leadership (Situational Approach)
Motivation
Definition
Maslow’s Need Hierarchy Theory
- Lower Needs : Physiological need (hunger etc.,)
Safety and Security
- Higher Needs : Social (Belongingness)
Self-esteem ( recognition and attention)
Self-Actualisation (maximizing the use of abilities, skills
and potential)
Needs of Individuals
Providing Satisfactory environment for need
fulfillment
Engagement in work
A. H. Maslow’s hierarchy of needs
PHYSIOLOGICAL OR SURVIVAL NEEDS
SAFETY NEEDS
LOVE, AFFECTION, AND BELONGINGNESS NEEDS
ESTEEM NEEDS
SELF-ACTUALIZATION
Theories of Motivation
Carrot and Stick model of motivation
Herzberg’s motivation
Theory X and Theory Y
Job Satisfaction
IntroductionFactors affecting Job Satisfaction :
1) Personal : Age, Education , Gender, other
2) Organizational : Occupational Level, Job Content, Considerate Leadership, Pay & Promotion, Work Group
Types of Business Organization
Private Sector Organization
Public Sector Organization
Joint Sector Organization – Venture captial company
Private Sector Organization
Sole Proprietorship
Partnership
Joint Stock companies
Co-operative Societies
Public Sector Organization
Government Departments
Public organization
Government Companies
Modern Approach to Management
ERP – Enterprise Resource planning
ERP system is a fully integrated business management system covering functional areas of an enterprise like Logistic, production, finance, accounting and HR.
Characteristics:FlexibilityModular and openComprehensiveBeyond the companyBest business practice
Features:
ERP ImplementationIdentifying the needs of implementing Evaluation Deciding the ‘would be’ situation for the
businessRe-engineering the business processEvaluating various ERP packagingFinalizing the most suitable oneInstalling the required hardware and networkImplementing the ERP package
General model of ERP
Tools
SCM
SCHEDULING
AGGREGATE PLANNING
FORECASTING
INVENTORY MANAGEMENT
Supply Chain Model
Integrated Supply Chain
Management
Customer Analysis
Material managemen
t
Purchasing / Supplier Partnering
Inventory Management and control
Demand and Lead time Management
Order Fulfilment
Storage and Transport
Manufacturing Assembly
CRM (Customer Relationship Management)
It entails acquiring and deploying knowledge about one’s customers and using this information across the various touch points to balance revenue and profits with maximum customers satisfaction.
Types of CRM :1. Win back or Save
2. Prospecting
3. Loyalty
4. Cross sell / Up sell
The CRM Cycle:An assessment phaseA planning phaseAm execution phase
e-CRM : uses the electronic media to integrate and simplify customer-related business processes.
e-CRM must address customer optimization by three dimension : Acquisition, Expansion and Retention
Re-engineering or Business process Re-engineering
It is the fundamental re-thinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality, service and speed.
Re-engineering process:Understanding the processRedesigning the processRe-engineering implementation
Important Topics – From all of us• Hierarchy of Objectives• MBO & MBO Process• Decision Making Process• Types of Business Organization (Whole Topic)• ERP (Enterprise Resource Planning• CRM and e-CRM (Customer Relationship Management) • IPR (Intellectual Property Rights)• SCM (Supply chain Management)• Marketing Research Process• Core marketing concept of marketing management• Segmentation, targeting and positioning (STP)• Leadership theories – (Trait theory, Path goal)• Leadership Styles or approaches (power oriented)
• Motivation theories (Maslow’s need Hierarchy, Carrot and stick model, herzberg’s motivation)
• 4Ps of marketing • Financial Institution• Financial Markets• Key activities of financial management• Financial system• Financial instruments• 30% from the mid-sem syllabus