Management Concepts and Practices

Chetan T.R

Content

• Module 1: Introduction to Management• Module 2: Evolution of Management• Module 3: Planning and Decision

making• Module 4: Organizing &

Departmentation• Module 5:Elements of Directing, co-

ordination and control

ManagementTata Nano – A Case Study

• 2004 – Ratan Tata announce his vision of small car with ideal price of $2500 – ₹1 Lakh

• Girish Wagh – Designs to meet Cost, Regulatory requirements and Acceptable performance standards

• Starts plant at Singur – West Bengal• Building and Machinery set up by 2007• Tata start Community development programs and Launches Nano

by 2008• Land acquisition Act 1894 was overruled, Activists, TNC and Leftist

opposed displacing farmers.• The Tata’s decided to move out project by 2008 and start in

Sanand, Gujarat. • It took 14 months to build new plant and set up machinery

compared to 28 months in Singur, WB.• The shifting from Singur to Sanand is an historical and well planned

action by Tata. • Nano was launched on date in record time as promised by Ratan

Tata.• Video URL: https://www.youtube.com/watch?v=rS3Aq_2II-s

Module 1

• Introduction to Management• Introduction and Nature of Management• Definition & Meaning-By P. F. Drucker, Koontz

O’ Donnel, S. George• Management as an Art, Science and Profession• Distinction between Administration and

Management• Importance & Functions of Management.

Introduction to Management

• Management is an important element in every organization. It coordinates currents organizational activities and plans for the future.

• The management adapts the organization to its environment and shapes the organization to make it more suitable to the organization.

Nature of Management

Definitions of Management

• “Management is the art of knowing what you want to do” and then seeing that it is done in the best and cheapest way. ……F.W.Taylor

• “Management as a process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish the objective by the use of people and resources.”

……George R. Terry

Definition

• “To manage is to forecast and to plan, to organise to command, to coordinate and to control.”

- Henry Fayol

• “Management is a multipurpose organ that manages a business, Managers and manages Workers and work.”

- Peter Drucker

Meaning of Management

• Is different in different aspects:As a collective noun: group of people

As a verb: means a process.• Interpreted as:

1. An activity2. A process3. A discipline4. As a group

Management as an Art

Because it:FeelsGuessesDescribesExpressesCommunicates &Practices

Management as Science

Because it:ProvesPredictsDefines Measures &Utilizes knowledge

Management as Profession

Because it: It requires skillKnowledgeDevelopment of a positive attitude

Distinction between Administration and Management

Importance of Management

• Required for successful functioning of every organization.

• Effective stimulus for every business.

• Includes the following:a. Achievement of group goals:

Mutual coordination & cooperation. Identification and defining of goals. Effective leadership.

Importance

b. Optimum utilization of resources: Forecast of the need for machinery,

material, money and manpower. It utilizes the resources, more

effectively to achieve best results.

c. Reducing cost: Effective management leads to

reduce cost and increase the output.

Importance

d. Generation of employment: Management helps to satisfy the

economic and social needs of the employees.

e. Maintenance of discipline: Due to proper supervision at all levels

of the organization.

f. Designing new products: Helps design new products by

adopting new techniques.

Importance

e. Development of the nation: Plays an important role in economic and

social development of the country. Can help in development of new

products, adopt new technology, utilize the resources efficiently and earn wealth.

Wealth increases, the income increases and so does the standard of living of the people.

MANAGEMENT FUNCTIONS / THE PROCESS OF MANAGEMENT

• Planning, Organizing, Leading & Controlling - Newman & Summer

• Planning, Organizing, Commanding, Coordinating and Controlling - Henri Fayol

• ‘POSDCORB’: Planning, Organizing, Staffing, Directing, Coordinating, Reporting & Budgeting

-Luther Gulick• Decision Making, Organizing, Staffing, Planning,

Controlling, Communicating & Directing - Warren Haynes & Joseph Massie

• Planning, Organizing, staffing, directing & Controlling

-Koontz O’Donnell

Management Functions

Planning• It is a process of deciding the business objectives and

charting out the plan/ method for achieving the same. This includes determination of:– What is to be done?– How to do? – Where it is to be done?– Who will do it? and – How result are to be evaluated?

• This function expected to be carried out throughout the organization. It should be performed by the manager at all Levels.

Importance of planning – The Ant and the Grasshopper

In a field one summer's day a Grasshopper was hoppingabout, chirping and singing to its heart's content. An Ant passed by, bearing along with great toil an ear of corn he was taking to the nest. "Why not come and chat with me," said the Grasshopper, "instead of toiling and moiling in that way?“. "I am helping to lay up food for the winter," said the Ant, "and recommend you to do the same.“ "Why bother about winter?" said the Grasshopper; we have got plenty of food at present." But the Ant went on its way and continued its toil. When the winter came the Grasshopper had no food and found itself dying of hunger, while it saw the ants distributing every day corn and grain from the stores they had collected in the summer. Then the Grasshopper knew:

It is best to prepare for the days of necessity

e.g. Planning involves developing a systematic process,

• the second will be to create a business plan since– "the development of the business plan greatly

helps to clarify the organization's plans and ensure that key leaders are all ,for attaining the goals of the organization.

• Reliance insurance • Vision:

– “ Empowering everyone live their dreams.”

• Mission: – Create unmatched value for everyone through dependable, effective,

transparent and profitable life insurance and pension plans.

• Our Goal:

– Reliance Life Insurance would strive hard to achieve the 3 goals mentioned below:

• Emerge as transnational Life Insurer of global scale and standard • Create best value for Customers, Shareholders and all Stake holders

MISSION , VISION , & GOALS are part of PLANNING:

Organizing• According to Louis Allen, “Organizing is the process of

identifying and grouping the work to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives.”

• To organize a business is to provide it with everything useful to its functioning i.e. personnel, raw materials, machineries, capital etc.

• Once objectives are established, manager has to develop plan to achieve them with help of human resources as well as material resources.

Rest SmartShort Story: Once there were a group of man – a young hot-blooded guy and a big number of old folks, doing timber job in a jungle (i.e. chopping down trees).This young chap is very hard working. He always continues to work through his break time and complains that those old folks were wasting time, having to break few times a day to drink and chat. As times goes by, this young guy noticed that even though he worked through break time and hardly took a rest… those old folks are chopping the same amount of trees as he did and sometimes did more than he did. It was as if those old folks work through the break time as he did. So he decided to work harder the next day…unfortunately the results were even worse.One day, one of the old folk invited him for a drink during their break time. That young guy refused and said he has no extra time to spend! Then the old man smiled to him and said “It was just a waste of effort to keep chopping trees without re-sharpening your knife. Sooner or later you will give up or be so exhausted as you have spent too much energy.” Suddenly the young man realized that actually during break times while those old folks were having a chat, they were also re-sharpening their knife at the same time! And that’s how they can chop faster than him and yet spending lesser time! The old man said “What we need is efficiency by making use of our skill and ability intelligently. Only then can we have more times to do other things.Otherwise you will always keep saying … I have no time!”

The morale of the story: –By taking a short break during work, it would make you feel fresher, think well and work better after the break! (Or am I just finding excuse to take a break?)But by taking a break, it is not to stop work but to rest and re-think our strategy to go about it from another angle.Organise your work, Think smart, work smart and rest smart.

Directing

• Directing involves communication, leadership and motivation.

Communication is the process of passing the information and understanding it from one person to other person.

Leadership is the function whereby the person or manager guides and influences the work of his subordinates.

Motivation is to motivate the employee to give their best to the organization.

Leading thro ExamplesIn 1985, a film company facing financial pressure hired a new president. In an effort to cut costs, the president asked the two leaders of a division, Ed and Alvy, to conduct layoffs. Ed and Alvy resisted—eliminating employees would dilute the company’s value. The president issued an ultimatum: a list of names was due to him at nine o’clock the next morning. When the president received the list, it contained two names: Ed and Alvy.No layoffs were conducted, and a few months later Steve Jobs bought the division from Lucasfilm and started Pixar with Ed Catmull and Alvy Ray Smith. Employees were grateful that “managers would put their own jobs on the line for the good of their teams,” marvels Stanford’s Robert Sutton, noting that even a quarter century later, this “still drives and inspires people at Pixar.”Source: “Givers Take All: The Hidden Dimension of Corporate Culture”

Controlling

• The controlling involves-1. Establishing standards of performance.2. Measuring current performance and comparing

it against the established standard.3. Taking corrective action that does not meet the

standard.Control compels the events to confirm to plans.

Handling SituationAt a restaurant, a cockroach suddenly flew from somewhere and sat on a lady. She started screaming out of fear. With a panic stricken face and trembling voice, she started jumping, with both her hands desperately trying to get rid of the cockroach. Her reaction was contagious, as everyone in her group also got panicky. The lady finally managed to push the cockroach away but it landed on another lady in the group. Now, it was the turn of the other lady in the group to continue the drama. The waiter rushed forward to their rescue. In the relay of throwing, the cockroach next fell upon the waiter.The waiter stood firm, composed himself and observed the behaviour of the cockroach on his shirt. When he was confident enough, he grabbed it with his fingers and threw it out of the restaurant. Watching the amusement, the antenna of my mind picked up a few thoughts and started wondering, was the cockroach responsible for their histrionic behaviour? If so, then why was the waiter not disturbed?He handled it near to perfection, without any chaos. It is not the cockroach, but the inability of the ladies to handle the disturbance caused by the cockroach that disturbed the ladies. I realized that, it is not the shouting of my father or my boss or my wife that disturbs me, but it’s my inability to handle the disturbances caused by their shouting that disturbs me. It’s not the traffic jams on the road that disturbs me, but my inability to handle the disturbance caused by the traffic jam that disturbs me.More than the problem, it’s my reaction to the problem that creates chaos in my life.

Sleeping through the StormA young man applied for a job as a farmhand. When the farmer asked for his qualifications, he said, “I can sleep when the wind blows.” This puzzled the farmer. But he liked the young man, and hired him. A few days later, the farmer and his wife were awakened in the night by a violent storm. They quickly began to check things out to see if all was secure. They found that the shutters of the farmhouse had been securely fastened. A good supply of logs had been set next to thefireplace.The young man slept soundly. The farmer and his wife then inspected their property. They found that the farm tools had been placed in the storage shed, safe from the elements.The tractor had been moved into the garage. The barn was properly locked. Even the animals were calm. All was well. The farmer then understood the meaning of the young man’s words, “I can sleep when the wind blows.” Because the farmhand did his work loyally and faithfully when the skies were clear, he was prepared for the storm when it broke. So when the wind blew, he was not afraid. He could sleep in peace.

Moral: Prepare for the storm. Do not wait use your free time to be prepared for future.