power point presentation

2. PRINCPLES & PRACTICES OF
MANAGEMENT

3. Definitions
 Management is the process of designing and maintaining an environment in which
individuals working together in groups efficiently accomplish selected aims.
- Weihrich and Kuontz
 The use of people and other resources to accomplish objectives.
- Boone and Kurtz
 The process by which managers create, direct , maintain and operate purposive
organizations through systematic, coordinated, cooperative human effort.
- Mc. Farland
 Management is a multi-purpose organ that manages a business, manages a manager and
manages workers and work.
- Peter Drucker

4. Management- Science & Art
 Science
Art
 Advances by
 Advances by practice





knowledge
Proves
Predicts
Defines
Measures
Impresses
 Feels
 Guesses
 Describes
 Opines
 Expresses

5. Why Study Management
 Utilization of resources
 Best performance is a given situation
 To achieve pre-determined objectives
 Internal and External Environmental factors affecting business
 For formulating corporate strategy
 To face competitive challenges
 For R &D
 To understand the impact of change
 To understand the importance of quality
 To understand how it can be applied to solve any business problem

6. “PROFESSIONAL MANAGEMENT”
Professional Management
 Separation of ownership from management
 Knowledge based decision making
 Professional managers are performance oriented
 They follow management practices based on
information obtained/experience
 Application of management theories to solve emerging
organizational problems

7. Evolution of Management thought

Classical approach

Fredrick Taylor (1856-1915)
Science, not rule of the thumb
Harmony, not discord
Cooperation, not individualism
Maximum output
Development to greatest efficiency and prosperity
High wages, low cost
1.
2.
3.
4.
5.
6.

1.
2.
3.
4.
5.
6.
Charles Babbage
Specialization
Work measurement/ methods
Utilization of machines and tools
Division of labour
Science and mathematics
Cost reduction

8. Cont…..

1.
2.
3.

1.
2.
3.
Frank and Lillian Gilberth (1868-1924 & 1878-1972)
Time and motion study
Worker welfare
Potential of workers
Henry Gantt (1861-1919)
Gantt Chart
Bonuses for Workers and Supervisors
Good understanding of IR

9. Cont…
 Henry Fayol ( 1841-1925)
1. Division of labour
2. Discipline
3. Unity of command
4. Subordination of individual interest to common good
5. Remuneration
6. Centralization
7. Hierarchy
8. Order
9. Equity
10. Stability of Staff
11. Initiative
12. Esprit De Corps

10. Cont….
 Max Weber (1864-1920)
 Bureaucracy
 Criticisms
 Elton Mayo- The Hawthorn Experiments (1927-32) (1880-
1949)
 Mary Parker Follett (1868-1933)
 Chester Barnard (1886-1961)

11. Cont….
 Behavioral Science




Maslow
Mc. Gregor
Alderfer
Herzberg
 Management Science
 Mathematical Modelling, or for solutions of management problems
 Recent Developments

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Systems Approach
Contingency Approach
Dynamic Engagement Approach
Ethics and social Responsibility
Cultures and Multiculturism
TQM

12. Relation of Motion & Time Study to Work
Design
Objective
Improve Ops by
Effective utilization
Of all resources
Method Study/ OR
Developed
by
Gilberth
s
Motion
Study
Standard Symbols
o Operation
TN/ Movement
Combined Activity
Objective
Work
Design
Improve Control by
More accurate plng/
estimating/ evaluating
performance
Used to Evaluate
Alternate designs/methods
Used to find the fastest
Motion sequences
Inspection
D
Delay/ Temp Storage
Work
Measurement
Developed by Taylor
Time Study
Storage

13. Managerial roles identified by Mintzberg

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
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Interpersonal
Figurehead
Leader
Liaison

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

Informational
Monitor
Disseminator
Spokesperson




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Decisional
The Entrepreneurial role
The disturbance handler role
The resource allocator role
The negotiator role
“ Aim all communication at identifying and solving problems, not
blaming.”

14. Managerial Attributes
Professional Competence
Ethics/ Value Driven
Candor and honesty
Emotional Intelligence
Commitment
Human Values
Leadership Qualities

15. Key Aspect of the Management Process
•Planning
•Organizing
•Staffing
•Leading
•Controlling
•Coordinating
•Labour
•Capital
•Materials
•Machinery
•Information
Organizational Resources
Functions of Management
Types of Managers
Type 1- Expectations
Values
Targets
Type 2- Expectations
Values
Targets
Type 3- Expectations
Values
Targets
Type 4- Expectations
Values
Targets
Attainment
Of
Organizationa
l
Goal

16. Social & Ethical Responsibility of
Management
 “CSR refers to the businessman’s decisions and actions taken for reasons partially
beyond the firm’s direct economic or technical interest.”






- Keith Davis
“CSR contends that management is responsible to the organization itself and to all
the interest groups with which it interacts. Other interest groups such as workers,
customers, creditors, suppliers, govt. and society in general are placed essentially
equal with shareholders
- Operational Definition
Ethics
How our decisions affect other people
Study of people’s rights & duties
Moral rules people apply while making decisions
Nature of relationships among people

17. • Arguments for Social Involvement

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Improvements benefit both society and business
Greater Freedom and flexibility from govt.
Power with responsibility
Problems can become profits
Favorable public image
Better to prevent than cure
• Arguments Against



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Primary Objectives
Costs Associated
Enough Power
No Accountability

18. Planning
 Planning is a continuous process of making present entrepreneurial decisions
systematically and with best possible knowledge of their futurity, organizing
systemically the efforts needed to carry out these decisions and measuring the
results against expectations through feedback system.
- Peter Drucker
 Planning is the selection and relating the facts and making use of assumptions
regarding the future in the visualization and formalization of proposed
activities believed necessary to achieve the desired result.
- Terry

19. Nature of Planning
Planning is goal oriented
Planning is an intellectual or rational process
Planning is a primary function
Planning is all pervasive
Planning is forward looking
Planning is a perpetual process
Planning is an integrated process
Planning involves choice

20. Significance of Planning
Focuses attention on objectives
Offsets uncertainty and risk
Provides sense of direction
Provides guidelines for decision making
Increases organizational effectiveness
Provides efficiency in operations
Ensures better coordination
Facilitates controls
Encourages innovation and creativity
Facilitates delegation

21. Types of Plans
Top Level
Time
Long
Range
Scope
Strategic
Middle Level
Intermediate
Range
Tactical
Eight major areas of Strategic Goals
• Market Standing and Customer loyalty
• Innovation
• Human Resources Management
• Financial Resources
• Physical Resources, Deployment and Use
• Productivity, effectiveness , efficiency
• Social Responsibility
•Profit Requirements
Lower Level
Short Range
Operational

22. Understanding organization
What is Organization?
Building Blocks
 Division of work
 Departmentalization
 Hierarchy
 Coordination
Mechanistic V/s Organic Systems

23. Cont…
Classification of Organizations
Predominantly coercive, non-legitimate authority
Predominantly utilitarian, rational legal authority, use of economic rewards
Predominantly normative, use of membership status and intrinsic value
rewards authority on charisma/ expertise
 Mixed structures




 Structures
 By Function
 By Product
 Matrix/Mixed

24. Organizing
 Definition




Identification and classification of required objectives
Grouping of activities necessary to attain objectives
Assignment of each grouping to the manager with authority to supervise it
Provision of coordination horizontally and vertically
 Formalized intentional structure of roles or positions.
 Determining what tasks are to be done, who is to do them, how the tasks are to be
grouped, who reports to whom and where decisions are to be made
- Robbins & Coulter
 Organizing is a management function involving assigning duties, grouping tasks,
delegating authority and responsibility and allocating resources to carry out a specific
plan in an efficient manner

25. Common Organizational Designs
Simple Structure
Bureaucracy
Matrix Structure
Team Structure
Virtual Organization
Boundary less Organization
Divisional Structure
Functional Structure

26. Why Do Structures Differ?
Mechanistic Vs Organic Models
Strategy
Organizational Size
Technology
Environment

27. Line and Staff Authority
 Line Authority



Directly responsible for organizational goals
Standard chain of command
Based on legitimate power
 Staff Authority


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
Provides services and authority to line managers
Expert help and advice
Based on expert power
Research, analysis and option development
Policy implementation, monitoring and control

Functional Authority



Right to Control activities of other departments
Based on legitimate power/ expert power
Practiced in most organizations

28. Contd…
Delegation
 Formal authority and accountability to carry out
specific tasks
 Necessary for efficient functioning of any
organization

29. Span of Control



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Department
Wide Span
Narrow Span
Factors determining effective span
Factors determining effective Span of Control

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Trained subordinated
Clarity of delegation of authority
Clarity of plans
Use of objective standards
Rate of change
Communication techniques
Amount of personal contact needed
Use of Staff Assistants
Competence of Manager

30. Relationships ( Views on Conflicts)
 Importance of Conflict Management
 Rewards
 Leadership
Change (Nadler and Tushman)
Incremental
Strategic
Anticipatory
Tuning
Re-orientation
Reactive
Adaptation
Re-creation
Learning Organizations
•Tolerance for ambiguity
•Managing diversity
•Open Communications
•CPS
•Conflict Resolution
•Team Orientation
•Innovative Efforts

31. Conflict Handling Modes
(High)
Competitive
(own concerns at others
Expense)
Compromising
(Mutually acceptable solution)
Assertivene
ss
(Low)
Collaborating
(working with other
party to find solutions)
Avoidance
(Not addressing conflict)
Cooperativeness
(Low)
Mode
•Competing
•Collaboraing
•Avoiding
•Accomodating
•Compromising
Accommodating
(Satisfying)
Assertiveness
High
High
Low
Low
Moderate
Cooperativeness
Low
Low
Low
High
Moderate
(High)

32. Culture
 The complex mixture of assumptions, behaviours, stories, myths, metaphors and other ideas that fit
together to define what it means to be a member of a particular society
Body Shop
•Work, Live, Love and Learn- rather than
work, work, work
•See meaning and money- rather than money
alone
•Build network of relationships- rather than
hierarchies of power
•Sustain resources rather than “Use it and
Lose it”
•Grow Naturally- rather than grow fast
•Embrace work and family- rather than work
or family
Artifacts- Espoused values- Basic Assumptions

33. Cont….
 Cultural Practices
 Material Vs Non Material cultures
 Ecology and Culture
 Cultural Characteristics
 Observed Behavior
 Norms
 Values, Attitudes and beliefs
 Philosophy
 Rules
 Organizational Climate

34. Decision Making

Process of identifying and selecting a course of action to solve a specific problem

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Important aspects
Past Experience – both positive and negative
Human Relationships
Problems and opportunity finding
Deciding to decide
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Problem finding process
Deviation from past experience
Deviation from set plans
From other people
Performance of competitors
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Opportunity finding process
Something that offers a chance to exceed objectives
Dialectical inquiry method (Devil’s Advocate method)
Importance of information gathering

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
Recognizing the Problem
Prioritize
Is the problem easy to deal with
Might the problem solve itself
Is this my decision to make

35. Cont…


1.
2.




Decision Making
Specific Requirements
Expected Results
Resource Constraints
Prioritize Needs
Optional Courses of Action
Choose Best Option
Identify Potential unfavorable consequences

36. Cont….
 Nature of Decision Making
 Programmed
 Non Programmed
 Certainty
 Objectives
 Accurate, measurable and reliable information
 Risk
 Outcome cannot be predicted
 Probability factor
 Uncertainty
 Little known about alternative and outcome
 Importance of external factors and information
Programmed
Certainty
High
Non programmed
Risk
Managerial control
Uncertainty
Low

37. Factors affecting the decision making
process
Information
Time factor
Environmental factors
Internal Factors
Personality of the decision maker
Participation, acceptance & implementation
Precedent
Escalation of commitment
Problem perception

38. Rational Decision Making Process
Investigate Sit:
•Define problem
•Diagnose causes
•Identify decision
objectives
Implement
and monitor
•Plan Implementation
•Monitor
•Make adjustment
Develop
alternatives
•Seek creative
alternatives
•Do not evaluate
yet
Evaluate
Alternatives &
Select best
available

39. Cont…

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
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Investigation
Define the problem
Diagnose the causes
Identify decision objectives
Development
Easy for programmed
Difficult for non-programmed
Evaluation
Is the alternative feasible
Is the alternative a satisfactory solution
What are the consequences for the rest of the organization?
Implementation
Appropriate instructions
Acquisition/ Allocation of resources
Assigning responsibilities, budgeting
Progress reports and corrections

40. Information Systems for Managerial Control and Decision
Making
Corporate
Databases
Information for decision
Making
Information for control
MIS
Feedback
Control Systems
DSS
Mgt Control Systems
EIS
Balanced Scorecard

41. Management Control Systems
Reason
For
Deviation
Actual
Performance
Measure
Performance
Deviations
Comparison
Desired
performance
Corrective
Actions
Feedback Loop

42. Objectives of MCS
Relationship with organizational goals
Identification of critical processes that affect goals
Identify key success factors
Identify responsibilities
Accountability
Financial Vs non financial performance
Improvement of collective decision making

43. Why Management Control system fail??
Most control systems are past action oriented
Precision Leave little margin for error
Controls do not change with missions, strategies,
objectives and plan
Behavioral and human side if the control system
overlooked
Standards are not modified as per the situation at
hand
Importance of speedy and reliable feedback

44. ERP
 ERP- Integration of business processes across departments into an enterprise wide
information system
 Integration of

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
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
Product Planning
Parts purchasing
Inventory Control
Product Distribution and fulfillment
Order tracking

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ERP Users
Those who execute strategic planning
Those who perform managerial control
Those who do operational control

45. Cont….
Sales
 Order placement
 Order scheduling
 Shipping and invoicing
Finance
 Financial data
 Financial reports
 Trial Balance, Balance Sheet
 Quarterly financial data

46. Management Control
 Management control is a systematic effort to set performance standards with
planning objectives to design information feedback with these pre determined
standards and to measure their significance and to take any action required to
assure that all corporate resources are being used in the most effective and
efficient way possible in achieving corporate objectives
- Mockler
Planning
Implementation of strategies
Control by comparing
Strategies to achieve objectives
Actual results with planned results

47. Feedback Loop of Management Control
Desired
Performance
Actual
Performance
Analysis
Deviations
Identification
Of deviations
Corrective
Action
Implementation
Of correction
Measurement
Performance
Comparison
Against
Standards

48. Cont…..
 Management Control helps in
1.
2.
3.
4.
5.
Coping with uncertainty
Detecting irregularities
Identifying opportunities
Handling complex situations
Minimizing costs