Managment Principles

Issue # 1Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

Principles of Management / BSG – 201

Introduction to Principles and Functions of

Management

(Text Book Chapters – 1 & 2)

1

1


Principles of Management / BSG – 201

Contents

Management: Meaning, Principles and Functions of Management.

Different Schools of Management and Management Thought.

2


Principles of Management / BSG – 201 3

Management Is…

EffectivenessEffectiveness

EfficiencyEfficiencyGetting workdone through

others

Getting workdone through

others



Efficiency and

Effectiveness



Principles of Management –

F.W. Taylor

Develop a science for each element of a man’s work,which replaces the old rule-of-thumb method.

Develop a science for each element of a man’s work,which replaces the old rule-of-thumb method.

Scientifically select and then train, teach, and develop the workmen.

Scientifically select and then train, teach, and develop the workmen.

Cooperate with the men to insure all work is done inaccordance with the principles of the science.

Cooperate with the men to insure all work is done inaccordance with the principles of the science.

There is almost equal division of the work and theresponsibility between management and workmen.

There is almost equal division of the work and theresponsibility between management and workmen.



Time & Motion Studies:

Frank & Lillian Gilbreth

Time StudyTiming how long it takes good workers to complete each part of their jobs.

Motion StudyBreaking each task into its separatemotions and then eliminating those that are unnecessary or repetitive.



14 Principles of Management

– Henry Fayol

1. Division of Work: allows for job specialization. Work

should be divided among individuals and groups.

2. Authority and Responsibility: Authority right to

give orders. Responsibility involves being answerable

Whoever assumes authority assumes responsibility

3. Discipline: Common efforts of workers. Penalties

4. Unity of Command: Employees should have only

one boss.

5. Unity of Direction: A single plan of action to guide

the organization.

6. Subordination of individual interests to the

general interests of organization



14 Principles of Management

– Henry Fayol

7. Remuneration: An equitable uniform payment

system that motivates and contribute to success.

8. Centralization: The degree to which authority rests

at the top of the organization.

9. Scalar Chain: Chain like authority scale.

10. Order: The arrangement of employees where they

will be of the most value to the organization.

11. Equity: The provision of justice and fair dealing

12. Stability of Tenure of Personnel

13. Initiative

14. Esprit de corps: Harmony, general good feeling

among employees



Functions of

Management



Planning and

Decision Making

Defining goals, establishing strategy and developing sub plans to choose alternatives and coordinate activities



Organizing

• Deciding where decisions will be made

• Who will do what jobs and tasks

• Who will work for whom



Leading

MotivatingMotivating

InspiringInspiring

LeadingLeadingLeadingLeading



Controlling

Monitoring progress towards goal achievement and taking corrective action when needed



Levels and Areas

of Management

Mar

ketin

g

Admin

istra

tion

Other

Human

reso

urces

Operat

ions

Finan

ce

Middle managers

Areas of Management

Levels of Management

First-line managers

Top managers



Role of Top

Managers

Creating a context for changeCreating a context for change

Developing commitmentand ownership in employees

Developing commitmentand ownership in employees

Creating a positive organizational culture through language and actionCreating a positive organizational

culture through language and action

Monitoring their business environmentsMonitoring their business environments



What Middle

Managers Do?

Coordinate and link groups, departments, and divisions

Coordinate and link groups, departments, and divisions

Monitor and manage the performance of subunits and managers who report to them

Monitor and manage the performance of subunits and managers who report to them

Implement changes or strategies generated by top managers

Implement changes or strategies generated by top managers

Plan and allocate resources to meet objectivesPlan and allocate resources to meet objectives



Responsibilities of

First-Line Managers

Manage the performance of entry-level employees

Manage the performance of entry-level employees

Encourage, monitor, and reward the performance of workers

Encourage, monitor, and reward the performance of workers

Teach entry-level employees how to do

their jobs

Teach entry-level employees how to do

their jobs

Make detailed schedules and operating

plans

Make detailed schedules and operating

plans



Managerial

Roles

H. Mintzberg, “The Manager’s Job: Folklore and Fact:.” Harvard Business Review, July-August 1975.

Adapted from Exhibit 1.4

Interpersonal Informational Decisional

Figurehead

Leader

Liaison

Monitor

Disseminator

Spokesperson

Entrepreneur

Disturbance Handler

Resource Allocator

Negotiator



Managerial

Skills

Technical SkillsTechnical Skills Human SkillsHuman Skills

Conceptual Skills

Conceptual Skills

Motivation to

Manage

Motivation to

Manage



Managerial

Challenges:

Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc.

Ethics

MANAGER

E-Business

Globalization

Diversity

Customers

Innovation

KnowledgeManagement



History: Schools of

Management Thought (start)

Traditional Traditional ViewpointViewpoint

Behavioral Behavioral ViewpointViewpoint

Systems Systems ViewpointViewpoint

Contingency Contingency ViewpointViewpoint

Quality Quality ViewpointViewpoint

19001900 19101910 19201920 19301930 19401940 19501950 19601960 19701970 19801980 19901990 20002000



Traditional

Viewpoint

Goals:Efficiency

Consistency

Administrative Management

Bureaucratic Management

ScientificManagement



Characteristics of

Bureaucratic Management

Rules—formal guidelines for the behavior of employees on the job

Impersonality—employees are evaluated according to rules and objective data

Division of Labor—splitting work into specialized positions



What is Scientific

Management?



Administrative

Management

Fourteen Principles of Management given by Henry Fayol



What is Behavioral

Viewpoint

Focuses on dealing effectively with the human aspects of organizations

Started in the 1930’s

Emphasis on working conditions

Workers wanted respect

Workers formed unions to bargain with management



Systems View of

Organizations



What is Contingency

Approach?

Problem or SituationProblem or Situation

Solution or Action B

Solution or Action B

Solution or Action A

Solution or Action A

SSolution or Action C

SSolution or Action C

Important Contingencies

Important Contingencies

Source: Van Fleet, David D., Contemporary Management, Second Edition. Copyright © 1991 by Houghton Mifflin Company.



Quality Approach:

Lower Costs and Higher

Market Share

PositiveCompany

Image

DecreasedProduct Liability

Quality



Islamic Management

Perspective:

1. Work is an act of Worship

2. Work as Trust – Amana

3. Discipline

4. Reliance on Own Self

5. Proper placement depending upon Skills & Talent

6. Fairness and Proper Treatment of Employees

7. Quality – Itqan

8. Consultative and decision making skills – Shura



Thank

You

Managment Principles

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