principlesofmanagement.pptx

8/10/2019 principlesofmanagement.pptx

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PRINCIPLESOF

MANAGEMENTReferences:

Zarate, Cynthia A. (2009). Principles of Management. 839 EDSA, South Triangle, Quezon City. C & E Publishing, Inc.

http://managementinnovations.wordpress.com/2008/12/04/henri-fayols-14-principles-of-management/http://www.businessdictionary.com/definition/management.html
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Learning Outcomes:

1. Describes the difference betweenmanagers and operative employees.

2. Explain what is meant by the term

management.

3. Differentiate efficiency and effectiveness.

4. Describe the 5 functions of management

5. Classify the three levels of managersand identify the primary responsibility of

each group.


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Organization

Systematic arrangement of

people brought together toaccomplish some specific

purpose.

Where managers work

(manage)


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Manager VS Operative Employees

Operative Employees

People who work directly on a job or

task and have no responsibility foroverseeing the work of others

Managers Individuals in an organization who

direct the activities of others


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WHAT IS MANAGEMENT?

is the organization and coordination of

the activities of a business in order to

achieve defined objectives.

is often included as a factor of

production along with machines,

materials and money.


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WHAT IS MANAGEMENT?

consists of the interlocking functions of

creating corporate policy and organizing,

planning, controlling, staffing and directing an

organizations resources in order to achieve

the objectives of certain policies.

process of getting things done, effectively

and efficiently, through and with other

people.


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Efficiency VS Effectiveness

Efficiency (means)Means doing the thing correctly;

refers to the relationship between

inputs and outputs; seeks tominimize resource costs.

Effectiveness (ends)Means doing the right things; goal

attainment


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Goals

Low

Waste

High

Attainment

Means

Efficiency

Ends

Effectiveness

ResourceUsage

GoalAttainm

ent

Efficiency VS Effectiveness


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Managerial skills Contd

Conceptual skills:

This refers to the ability to think and

conceptualize abstract situations.These abilities are required formaking complex decisions.

In short it is: The mental capacity to develop

plans, strategies and vision


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Human or interpersonal skills:

This includes the ability to

understand other people and interacteffectively with them. The humanskills are also important in creation ofan environment in which people feel

secure and free to express theiropinions.

In short it is: The ability to work with other people

in teams


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Technical skills:

These skills include the knowledge,abilities of and proficiency in activities

involving methods, processes andprocedures in the relevant fields asaccounting, engineering, manufacturingetc.

Or in short: The ability to use the knowledge or

techniques of a particular discipline toattain ends


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Design skills:

These skills enable a manager tohandle and solve any kind ofunforeseen or actual problems, thatmay crop up in the organization.

Such problems could arise due tointernal factors or external factorsand/or both.

In short it is:

The problem solving skill


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Communication skills:

The abilities of exchangingideas and informationeffectively. To understand othersand let others understandcomprehensively.


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Leadership skills

The abilities to influence otherpeople to achieve the commongoal.


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Roles of managerRole: a set of expectation for ones behavior

In 1960, Henry Mintzberg conducted a study to understand about the

managerial roles. He identified 10 managerial roles that are common to allmanagers. These 10 managerial roles are grouped under: Interpersonal,

decisional, and informational roles.

Roles of Manager

Interpersonal

Figurehead

Leader

Liaison

Informational

Monitor

Disseminator

Spokesperson

Decisional

EntrepreneurDisturbance handler

Resource allocator

Negotiator


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Roles of manager Contd

A: Inter-personal Role

1. Figurehead: Represents the company on socialoccasions. Attending the flag hosting ceremony,receiving visitors or taking visitors for dinneretc.

2. Leader: In the role of a leader, the managermotivates, encourages, and builds enthusiasmamong the employees. Training subordinates towork under pressure, forms part of theresponsibilities of a manager.


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A: Inter-personal Role

3. Liaison: Consists of relating to others outsidethe group or organization. Serves as a link

between people, groups or organization. Thenegotiation of prices with the suppliersregarding raw materials is an example for therole of liaison.


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B: Decisional Role:

1. Entrepreneur: Act as an initiator and designerand encourage changes and innovation, identify

new ideas, delegate idea and responsibility toothers.

2. Disturbance handler: Take corrective action

during disputes or crises; resolves conflictsamong subordinates; adapt to environmentalcrisis.


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B: Decisional Role:

3. Resource allocator: Decides distribution ofresources among various individuals and groups

in the organization.

4. Negotiator: Negotiates with subordinates,groups or organizations- both internal and

external. Represents department duringnegotiation of union contracts, sales, purchases,budgets; represent departmental interests


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Informational role:

1. Monitor: Emerges as nerve center of

internal and external information aboutInformation.

2. Disseminator: Transmits information

received from other employees tomembers of the organization.


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Informational role:

3. Spokesperson: Transmits

information to the people who areexternal to the organization, i.e.,government, media etc. For instance,a manager addresses a pressconference announcing a new productlaunch or other major deal.


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Functions of management

Planning

1Planningis the process of setting goals, and charting the best way of action for

achieving the goals. This function also includes, considering the various steps to

be taken to encourage the necessary levels of change and innovation.

Organizing

2Organizing is the process of allocating and arranging work, authority and

resources, to the members of the organization so that they can successfully

execute the plans.

Staffing

3 A: Staffing is the process of filling the positions in the organization and keepingthem filled.

B: Staffing is the process of recruiting and selecting the right person for the right

job at the right time in the right place.

Leading

4 Leading involves directing, influencing and motivating employees to performessential tasks. This function involves display of leadership qualities, differentleadership styles, different influencing powers, with excellent abilities of

communication and motivation.

Controlling

5 Controlling is the process of devising various checks to ensure that plannedperformance is actually achieved. It involves ensuring that actual activities

conform to the planned activities. Monitoring the financial statements, checking

the cash registers to avoid overdraft etc., form part of this process.


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Levels of management1. Top Level:

Top management sets the mission and goals,develops policies, evaluates the overall

performance of various departments, responsible

for the business as a whole and is concerned

mainly with long-term planning

2. Middle Level:

Middle level management developsdepartmental goals, executes the policies, plans

and strategies determined by top management ,

develops medium- term plans and supervises

and coordinate lower-level managers activities


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Levels of management

3. Lower (Supervisory, frontline) Level:

Lower level management takes charge of day-to-

day operations, is involved in preparing detailedshort-range plans, is responsible for smaller

segments of the business, executes plans of

middle management , guides staff in their own

subsections and keep close control over their

activities


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First-Line Management

Foreman, Supervisors, Office Managers

Middle Management

Plant Managers, Division Managers,

Department Managers

Top

Management

President, CEO,

ExecutiveVice Presidents

Levels of management

Non- Managerial Employees


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Why is Management important?

ACCOMPLISH GOALS

BE MORE EFFICIENT AND EFFECTIVE

MAKE BETTER DECISIONS

EARN MORE PROFIT


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Threats to SURVIVAL1. Intellectual Property

Ownership of particular intangible or non-

physical goods.

2. Product Liability

Obligation of the producer or supplier toprovide restitution for whatever losses

associated with the products use


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Threats to SURVIVAL

5. Business continuity

Succession planning for a smooth

transition and continuity when there issudden death, retirement, or termination of

key figures.

6. Natural disasters

7. Dishonest and Unethical behavior


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HENRI FAYOL

He has proposed that there are 5

primary functions of management and 14principles of management,, Planning,

Organizing, Leading/Directing, Staffing,

Controlling.

There are 14 Principles of Management

described by Henri Fayol.

14 PRINCIPLES OF


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14 PRINCIPLES OF

MANAGEMENT1) DIVISION OF WORK

Division of work into specialized tasks and assignment

of duties and responsibility to specific individual

2) AUTHORITY and RESPONSIBILITY Authority - Right of superiors to get exactness from their

subordinates.

Responsibility - obligation for the performance of the job

assigned.3) DISCIPLINE

Clarity of expectation and punishment of violations

14 PRINCIPLES OF


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14 PRINCIPLES OFMANAGEMENT

4) UNITY OF COMMAND Assignment of an employee to only one supervisor

A sub-ordinate should receive orders and be accountable to one and

only one boss at a time.

He should not receive instructions from more than one person

5) UNITY OF DIRECTION Employees efforts geared toward the attainment of

organizational objectives

6) PREDOMINANCE OF GENERAL

INTEREST

Individual interest set aside and general interest

14 PRINCIPLES OF


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14 PRINCIPLES OF

MANAGEMENT7) REMUNERATION

Efforts are systematically rewarded in line with

organizations vision/mission

8) CENTRALIZATION Importance of superior and subordinate roles are

determined

9) SCALAR CHAIN Communication is kept open within the chain of

command

14 PRINCIPLES OF


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14 PRINCIPLES OF

MANAGEMENT10)ORDER

Jobs and materials are organized in an orderly fashion

to support the organizations direction

11)EQUITY Fairness and order make employee commitment intact

12)STABILITY AND TENURE OF PERSONNEL Promotion of loyalty and longevity in the organization

14 PRINCIPLES OF


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14 PRINCIPLES OF

MANAGEMENT

13) INITIATIVE Encouragement of employee to act solely on their own

in support of the organizations objectives

14)ESPIRIT DE CORPS Promotion of teamwork and unity of interest between

employees and management


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Management VS Leadership

Essence:

Managers: stability, Leaders: change

Rules:

M: make it, L:break it

Approach:

M: plans details L: sets direction

Culture

M: execute,L:shape it

Conflict:

M: avoid ,L: use as an asset bcoz theres no movement w/o friction

Direction:

M: existing roads L: new roads

Credit: M:take, L:give

Decisions: M:makes, L:facilitates

Vision: M:tell, L:sell

Style:M:transactional, L:transformational

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