Principles of ManagementDefinitions of Management

“Management is the process of designing and maintaining of an environment in which individuals working together in groups ,efficiently accomplish selected aims”

- Koontz and Weihrich.

“ Management is the art of knowing what do you want to do and then seeing that it is done in the best and cheapest way”

- F.W.Taylor

Management as a Science or an ArtEssential characteristics for a subject to be considered as a science:

The existence of a systematic body of knowledge with array of principles.

Based on Scientific enquiry Principle should be verifiable Reliable basis for predicting future events

Science is classified in to two types, they are exact science and inexact science.

In exact science results are accurate.Management is inexact science.

Management is inexact Science because,

• Every Organization human resources are different attitudes , aspirations and perceptions. So standard results may not be obtained.

• Readymade and standard solution can not be obtained.• Management is complex and unpredictable.• Every organization Decisions are influenced by the

environment . The environment is complex and unexpected changes.

What is an art?

Art means application of skill in finding a desired result. Art is the way of doing things skillfully. Management is an art because of the following facts.

Management process involves the use of practical knowledge and personal skill.

Management is creative. Application of practical knowledge and certain skills

helps to achieve concrete results.

Management is both – Science and an art:

Management is a science because it contains general principles . It is also an art because it requires certain personal skills to achieve desired results

APPROACHES TO MANAGEMENT1) Empirical Approach2) Human Behaviour Approach3) Social System Approach4) Decision Theory Approach5) Mathematical Approach6) Socio-Technical Systems Approach7) Systems Approach8) Contingency Approach9) Operational Approach

EMPIRICAL APPROACH

Study of managerial experiences and cases(mgt) Contributors:

Earnest Dale, Mooney & Reiley, urwick.Features Study of Managerial Experiences Managerial experience passed from participationer to

students for continuity in knowledge management. Study of Successful & failure cases help practicising managers. Theoretical research combined with practical experiences.

UsesLearning through experience of others

Limitations• No Contribution for the development of management

as a discipline• Situations of past not the same as present

HUMAN BEHAVIOUR APPROACH

Organisation as peoplea) Interpersonal Behaviour Approach -Individual Psychologyb) Group Behaviour Approach -Organisation BehaviourFeatures• Draws heavily from psychology & sociology.• Understand human relations.• Emphasis on greater productivity through motivation & good

human relations• Motivation, leadership, participative management & group

dynamics are core of this approach.

Uses Demonstrates how management can be effective by applying

knowledge of organisation behaviour.Contributors

Maslow, Herzberg, Vroom, Mc Cleland, Argyris, Likert, Lewin, Mc Gregor, etc.

Limitations –Treating management as equivalent to human behaviour.–Talks about organisation & organisation behaviourin vague terms.

SOCIAL SYSTEM APPROACHUnderstanding the behaviour of groups & individuals.

•Features1.Social System, a system of cultural relationship2.Relationship exist between external and internal environment of the organisation.3.Formal Organisation-Cultural relationships of social groups working within the organisation.4.Co-operation necessary5.Efforts directed -harmony between goals of organisation& goals of groups.

Contributors

Pareto, Chester Barnard•Uses

Organisationaldecisions should not be based on desires of one group alone but should reflect the interests of all the parties.

•Limitations#Broader than management & its practice#Overlooks many management concepts principles &

techniques that are important to practising managers

DECISION THEORY APPROACH Manager –Decision maker

Organisation–Decision making unit.Features Management is decision making. Members of Organisation -decision makers and

problem solvers. Decision making -control point in management Increasing efficiency -the quality of decision MIS, process & techniques of decision making are the

subject matter of study.

ContributorsSimon, Cyert, Forrester, etc.

UsesTools for making suitable decisions in organisations.

LimitationDoes not take the total view of managementDecision making -one aspect of management

MATHEMATICAL APPROACH

Management-logical entityActions

Mathematical symbols, Relationships and measurable data.

Features Problem Solving mechanism with the help of mathematical

tools and techniques. Problems Expressed in mathematical symbols. Variables in management –quantified. Scope -Decision making, system analysis & some aspect of

human behaviour. Tools -Operations research ,simulation etc

ContributorsNewman, Russell Ackoff, Charles Hitch, etc.

UsesProvided Exactness in management discipline.

Limitations Not a separate school Technique in decision making

SOCIO -TECHNICAL SYSTEMS APPROACHFeatures Social & technicalssystems interact. This interaction is

important for organisationaleffectiveness. Organisation–governed by social laws as well as

psychological forces. Technical aspects of organisationmodified by the social

aspects.Uses Organisationaleffectiveness depends on looking at

people and their interactions and also at the technical environment in which they operate.

Change in technology Change in social interactions at work place

ContributorsTrist, Bamforth, Emery etc.

Limitations Lack of total managerial view Concentrate on factory or other production system No new contribution People aware about the role of technology of the social

system of the work place

SYSTEMS APPROACH An enterprise Man-Made system Internal parts Achieve established goals External parts Achieve interplay with its environment Manager integrates his available facilities with goal

achievement.Uses Quick Perception Better PlanningLimitationso Complicatedo Expensive

CONTIGENCY SCHOOLIn developing management concepts the environment within which the concepts are to be applied has to be considered.

Internal environment• –Structure, Processess, Technology.External Environment• –Social, Economic, Political etc.Features• –Appropriateness of a management technique depends on

situation.• –If -Then approach

OPERATIONAL APPROACH

Management is a process. Universalist/ Classist/ Traditional Approach. This school concentrates on the role and functions of

managers and distills the principles to be followed by them.Features Functions of managers remain same Functions of management core of good management Framework of management Principles of management

ContributorsFayol, LyndallUrwick,Harold Koontz, Newman, Mc Farland, Taylor.

UsesFlexible & practical but not universal.

Difference between Administration /ManagementThere are many factors according to which administration can be distinguished from management. These are as follows:

Nature of workAdministration: It is concerned about the determination of objectives and major policies of an organization.Management: It puts into action the policies and plans laid down by the administration.

Type of functionAdministration:It is a determinative function.Management: It is an executive function.

AbilitiesAdministration:It needs administrative rather than technical abilities.Management: It requires technical activities

ScopeAdministration:It takes major decisions of an enterprise as a whole.Management: It takes decisions within the framework set by the administration.

Level of authorityAdministration:It is a top-level activity.Management: It is a middle level activity.

Nature of statusAdministration:It consists of owners who invest capital in and receive profits from an enterprise.Management: It is a group of managerial personnel who use their specialized knowledge to fulfill the objectives of an enterprise.

Nature of usageAdministration:It is popular with government, military, educational, and religious organizations.Management: It is used in business enterprises.

Decision makingAdministration:Its decisions are influenced by public opinion, government policies, social, and religious factors.Management: Its decisions are influenced by the values, opinions, and beliefs of the managers.

Main functionsAdministration:Planning and organizing functions are involved in it.Management: Motivating and controlling functions are involved in it.

Management handles the employers.Administration handles the buisness aspects such as finance.