Basics of

Management

Course: BBASubject: Principles of Management

Unit: I

1

What is Management ?

• Where this word is used?

• What is the meaning? -Manage Men - Old French ménagement.: ‘the art of

conducting ,directing ‘ -Latin Manuagere : ‘to lead by the hand’

2

DEFINITION:

• Management in all business areas and organizational activities are the acts of getting people together to accomplish desired goals and objectives. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal.

• Mgt is all about PODSCORB

• “Management is an art of getting things done through and with people”.

• “The process by which execution of given purpose put into operation and supervise”.

• “Management is the art of securing maximum results with the minimum of efforts so as to get maximum prosperity and happiness for both employer and employee”

Applicability of Mgt.in life and job

• Management in life:

- Daily planning, future planning - Various occasions i.E, marriage, parties - To achieve any goal i.e., 80% in FYBBA

• Management at job:

- proper authority and responsibility - achieving targets - stress management - measuring deviation - smooth functioning - co-ordination/ communication - employee satisfaction

Scope of management :(Relation with other subjects/Sectors )

Marketing

• - Deciding promotional activities/ strategies/ setting targets – planning

• - Recruiting/training sales exe. – staffing• - Giving targets by manager – Directing• - Why targets are not achieved – Controlling

Finance

• - Preparing budget – Planning and controlling• - Recruiting/training executives – staffing• - Maximum result with min. efforts/resources

H.R.

• - How many employees will be required? - Planning

• - Recruiting/training executives – Staffing• - Performance appraisal – Controlling• - which task given to whom? - Organising

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What Managers Do

Managerial Activities•Making decisions•Allocating resources•Directing activities of others to

attain goals

Managerial Activities•Making decisions•Allocating resources•Directing activities of others to

attain goals

Managers Individuals who achieve goals through other people.

Where Managers WorkOrganizationA consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals.

The Four Functions of Management

Planning Select goals & ways

to attain them

Organizing Assign responsibility for

tasks

Leading Use influence to

motivate

Controlling Monitor

activities & make

corrections

Planning

– defining goals and objectives– deciding what type of activities the company will

engage in– determining the resources needed to achieve the

organization’s goals & objectives.

3

Organizing

– Grouping of activities– Conflict resolution.– Authority and responsibility– delegation– Allocation of resources

Directing/ leading

– Leading for better work– Stimulating to work more– Giving motivation– Specifying job responsibilities– Creating good working conditions– Giving guidance– Showing path

4

ControllingChecking performanceComparing actual targets with performanceFinding deviationTaking corrective actionMonitoring performance of people & units.• Identification of performance problems & actions

to correct problems

5

6

Management hierarchy/ Levels of management

7

• Top level Posts/job title:

Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operational Officer (COO), Chief Information Officer (CIO), Chairperson of the Board, President, Vice president, Corporate head

• Middle level Posts/job title:

General manager, Plant manager, Regional manager, and Divisional manager

• Lower level Posts/job title:

• Office manager, Shift supervisor, Department manager, Foreperson, Crew leader, Store manager

8

Skills at managerial levels

Skills at managerial levels

9

MANAGEMENT LEVELS AND TIME SPENT ON FUNCTIONS

Plan. Organ. Lead. Control.Top 28% 36% 22% 14%Middle 18% 33% 36% 13%Lower 15% 24% 51% 10%

Approaches in Mgt. thought

• Classical - scientific - bureaucratic - administrative

• Behavioral - Maslow,McGregor, Chris,Elton Mayo, Mary Parker

• Quantitative and Modern - contingency theory - theory Z

Taylor and scientific management (Frederick Winslow Taylor (1856-1915)

• The concept emerged in early 1900s.• “SM is concerned with knowing exactly that

you want men to do and then see in that they do it in the best and cheapest way”

• Taylor experimented and found –how human beings could be made more efficient by standardizing the work and better method of doing the work. 10

Elements of scientific management

1. Separation of planning and doing: • Supervisor- Planning• Worker – doing, operational work

2. Functional foremanship:

- work divided acc. To functions

2. Functional foremanship:

11

3. job analysis: - to find a best way of doing the things- Time study- Motion study- Fatigue study

4. Standardization: - Standardization is a means of achieving

economics of production.• It seems to ensure –

– The line of product is restricted to predetermined type, form, design, size, weight, quality. Etc

– There is manufacture of identical parts and components.– Quality & standards have been maintained.– Standard of performance are established for workers at

all levels.

5. Scientific selection and training of workers. - based on education, exp, aptitude, physical strength - training to be more effective and efficient

6. Financial incentives - Piece rate system

7. Economy & Profit -cost estimation and cost control

8. Mental revolution - co-operation and co-ordination

H.Fayol’s Administrative Management (29 July 1841,

(29 July 1841 ,19 November 1925)

• French industrialist

13

12

Fayol’s 14 principles of management

1. Division of work2. Unity of Command3. Order4. Equity5. Initiative6. Esprit de corps7. Stability of tenure8. Scalar chain9. Centralization10. Remuneration of

employees

11. Subordination of individual interest to general interest

12. Unity of direction13. Discipline14. Authority and

Responsibility

Fayol’s 14 principles of MGT.

1. Unity of Command: instructions/orders from only one boss. Ex. peon

Fayol’s 14 principles of MGT.

2. Division of Work: job /work is divided into specialized/small tasks i.e., departments

Fayol’s 14 principles of MGT.3. Order:• Arrangement of things and people• All materials and personnel have a prescribed

place, and they must remain there.

Fayol’s 14 principles of MGT.

4. Initiative: • Workers should be encouraged to develop

and carry out their plans for improvements

Fayol’s 14 principles of MGT.

5. Equity: • Fairness to all employees• No favoritism

Fayol’s 14 principles of MGT.

6. Authority and Responsibility: “Authority is the right to give orders & obtain obedience, and responsibility is the effect of authority”

-should be divided properly ex. Sales exe., Vodafone cust. care

7. Discipline: Rules and regulations

8. Unity of Direction: same objective for all with coordinated efforts

9. Subordination of Individual Interest to General Interest:

10. Remuneration of Employees: Employees receive fair payment for services

11. Centralization and Decentralization: ex. GTU, Panchayat

12. Scalar Chain: Formal chain of command running from top to bottom of the organization, like military

13. Stability of Personnel: Limited turnover of personnel. Lifetime employment for good workers.

14. Espirit De Corps: team spirit of unity and harmony among employees

14

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