Principles of Management:Introduction

Management: Definition

• Process of reaching organizational goals efficiently and effectively by working with and through people and other organizational resources.

• Process of coordinating and integrating work activities so that they are completed efficiently and effectively with and through other people.

Why study Management?

• Important for society, industry, and government organizations.

• Students will be able to recognize good and poor management.

• Provides insights into the way the boss or peer behave

• To be familiar with the internal working of organizations.

What Is An Organization?

• An entity where two or more persons work together to achieve a goal or a common purpose.

• Requirements to achieve a goal:PeopleProcesses

As a Science? An Art?

As a SCIENCEOrganized body of knowledgeFormal (Social Science)

As an ARTApplication of knowledge and requires personal skills to achieve results

Functions of Management

Who are Managers?

• An organizational member who works with and through other people by coordinating their work activities in order to accomplish organizational goals.

What are the roles of a Manager?

InterpersonalInvolves human interaction

InformationalInvolves sharing and analyzing of information

DecisionalInvolves decision making

Managerial Concerns

Efficiency• “Doing things right”

• Achievement of goals with the least amount of resources.

Effectiveness• “Doing the right thing”

• Management’s ability of meeting goals through using organizational resources.

Managerial Levels

Managerial Skills

Class Activity

• Each group will given a specific undertaking or activity in which the student participants will apply the 4 functions of management.

• Each group will be given one hour to do the activity after which discussions/presentations will be conducted.

• The undertakings will be as follows:– Seminar for Business Studies students

– Exhibit

– Job Fair for Business Studies students

Evolution ofManagement Thought

Ways to solve related organizational problems

Classical Approach

Behavioral Approach

ManagementScience

Approach

Contingency Approach

SystemApproach

1. Classical Approach

“Emphasizes organizational efficiency to increase organizational success.”

1.1 Lower Level Management Analysis

• Concentrates on one best way to perform a task.

• Simply called as “Scientific Management.”

Frederick W. Taylor

• He modified the job of employees and assumed the worker’s job could be reduced to science.

• He calculated the size of the worker to the amount of work he could do thereby increase the efficiency of the work.

Frank and Lillian Gilbreth

• Motion Study which consists of reducing each job to the most basic movements possible.

Henry L. Gantt

• Developed a system wherein workers could earn a bonus in addition to the piece rate if they exceeded their daily production quota.

• Gantt Chart and Task and Bonus Plan

1.2 Comprehensive Analysis of Management

• The general principle of how to make the work of management more effective.

14 Principles of Henry Fayol

• Division of Work – one employee with one type of work.

• Authority and Responsibility – right, power, and duty to perform a task.

• Discipline – obedience and willingness to follow rules and regulations.

• Unity of Command – employee receives orders from one superior only.

• Unity of Direction – people with similar work should be in one group and under the control of one manager.

14 Principles of Henry Fayol• Subordination of individual interests to general

interests – give more importance to the goal of the company.

• Remuneration – salary paid to the employees should be fair and reasonable.

• Centralization – concentration of power or authority at the top management.

• Scalar Chain – all employees should follow the line of authority from TOP to BOTTOM.

• Order – material and social.

• Equity – equal treatment in dealing with employees.

14 Principles of Henry Fayol

• Stability of Tenure – job security for employees.

• Initiative – employees should be creative and allowed to suggest improvements.

• Esprit-De-Corps – unity and cooperation must be encouraged.

2. Behavioral Approach

• Management approach that emphasizes on increasing organizational success by focusing on human variables in the organization.

3. Management Science Approach

• Emphasizes the use of the scientific method and quantitative techniques to increase organizational success.

4. Contingency Approach

• Emphasizing that what managers do in practice depends on a given situation.

5. System Approach

• The organization must be viewed as a system (as a whole).

• System – number of interdependent parts functioning as a whole for some purpose.Closed System – one that is not influenced by, and

does not interact with its environment.Open System – one that is influenced by, and is

continually interacting with its environment.

Management System is an open system