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Principles and practices of Principles and practices of
managementmanagement
Dr. Bijaya Mishra Dr. Bijaya Mishra
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Wh at is management ?Wh at is management ?
The process of reaching organizational goalsThe process of reaching organizational goals by working with and through people and other by working with and through people and other organizational resources.organizational resources.
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CHARACTERISTICS OF
M ANAGE M ENT
I s a Process /a function.I s a Social Process.I nvolves Group Effort.Aims at achieving predetermined objectives.Required at all levels of managementI s a ProfessionIs comprised of following functions: Planning, Organising,Staffing, Directing, Controlling
I s an art and science
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R ole of managementR ole of management
To guide the organizations towards goalTo guide the organizations towards goalaccomplishmentaccomplishment
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Chapter 1: PowerPoint 1.5Chapter 1: PowerPoint 1.5
Wh at I s A n Organization?
A formal and coordinated group of people w h ofunction to ac h ieve particular goalsT h ese goals cannot be ac h ieved by individuals
acting alone
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The functions of management The functions of management
Managers
Planningactivities toachieve theorganization'sobjectives
Organizing
resources andactivities toachieve theorganizationsobjectives
S taffing
theorganizationwith qualified
people
Directing
employeesactivitiestowardachievementof objectives
C ontrolling
theorganizationsactivitiesto keep iton course
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Functions of management contdFunctions of management contd
PlanningPlanning defining goals, establishing an overall strategy todefining goals, establishing an overall strategy toachieve the goals, developing a comprehensive set of plans toachieve the goals, developing a comprehensive set of plans tointegrate and coordinate activitiesintegrate and coordinate activities
OrganizingOrganizing the structuring of resources and activities tothe structuring of resources and activities toaccomplish objectives in an efficient and effective manner.accomplish objectives in an efficient and effective manner.B ringing people together and tying them together in the pursuitof common objectives.
Enumeration of activities, classification of activities, fittingindividuals into functions, assignment of authority for action
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S taffingS taffing -- hiring people to carry out the work of thehiring people to carry out the work of theorganization.organization.
Directing - act of guiding, overseeing and leading people,motivating, leadership, decision makingC ontrollingC ontrolling monitoring/measuring an organizationsmonitoring/measuring an organizations
performance, comparing results to plans, if needed performance, comparing results to plans, if neededcorrecting actual performancecorrecting actual performance
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M ANAGE M ENT AN D A DM INISTRATI O NDifferent
A dministration Management
F unction of industryconcerned
- with determination of corporate policy
-co
-ordination of finance, production and
distribution
F unction of industry
concerned- in the execution of policy
- within the limits setup by administrationadministration
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On Difference contdOn Difference contd
A process of thinking
more at higher levels
More at higher levelsLess at lower levels
A process of actual
operation.
Less at higher levelsMore at lower levels
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Management I ncludes A dministration
Management is an all inclusive function.Top Management -F ormulation of policy, co - ordination,motivation of personnel.Middle Management -F ormulation of policies to a lesserextent, co - ordination, motivation and planning control.Lower Management -S upervision and control of day today activities including administrative procedures.
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N o Distinction
Cannot distinguish which activities belong toManagement and which to administration .Administration -H igher executive functions ingovernment public utility etc.Management U sed for the same function in the
business sector.
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T h e Organization and I ts Ex ternalT h e Organization and I ts Ex ternalE nvironmentE nvironment
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(a) Competitors, industry size andcompetitiveness, related issues
( b) Suppliers,manufacturers, realestate, services
(c) Labor market,employment agencies,universities, trainingschools, employeesin other companies,unionization
(d) Stock markets, banks, savings andloans, privateinvestors
(e) Customers, clients, potential users of productsand services
(f) Techniques of production, science,computers, information technology
(g) Recession, unemployment rate,inflation rate, rate of investment,
economics, growth(h) City, state, federal laws
and regulations, taxes,services, court system,
political processes(i) Age, values, beliefs,
education, religion,work ethic, consumer
and greenmovements
( j) Competition fromand acquisition by
foreign firms,entry into overseas
markets, foreigncustoms, regulations,
exchange rates
A n Organization s Environment A n Organization s Environment
(j)International
Sector
(d)FinancialResources
Sector(e)
MarketSector
(f)Technology
Sector
(g)EconomicConditions
Sector
(a)IndustrySector
(h)Government
Sector
(c)Human
ResourcesSector
(b)Raw Materials
Sector
(i)Sociocultural
Sector
ORGANIZATION
DOMAIN
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What is CSR What is CSR
H ow companies manage the business processes toH ow companies manage the business processes to produce an overall positive impact on society. produce an overall positive impact on society.
conducting business in an ethical way & in theconducting business in an ethical way & in theinterest of the wider communityinterest of the wider communityResponding positively to emerging societal prioritiesResponding positively to emerging societal priorities
& expectations& expectationsShareholder interest + wider communityShareholder interest + wider communityB eing a good citizen in the communityB eing a good citizen in the community
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B enefitsB enefits
Attraction & retention of staff Attraction & retention of staff Attracts ethically conscious customer Attracts ethically conscious customer Differentiates firm from its competitor and can be aDifferentiates firm from its competitor and can be asource of competitive advantagesource of competitive advantageLead to increased profitability in the long runLead to increased profitability in the long run