Acharya Institute of Management

& Sciences

EMPOWERING MINDS

Department of Management Studies (MBA) 

An Introduction to 

Management Principles & Practices

By
Indranil Mutsuddi
What is Management..
 What is Management..

Management is the process of designing and

maintaining an environment in which
individuals, working together in groups,
efficiently accomplish selected aims.
An Ice Breaker…
 Management as a Process….

INPUTS (the 6 Ms) Management Functions OBJECTIVES

PLANNING DIRECTING
• Manpower
• Goods & Service
• Materials
desired by
• Machines
customers
• Methods
• Money
• MarketsORGANISING
CONTROLLING
STAFFING
Nature of Management…

 Utilization of Resources optimally & Economically

 Goal Oriented
 Distinct process
 Integrative Force
 Intangible force
 Multidisciplinary
 Result attained through others
 Universally applicable
 A System of Authority
 A Science or Art?
Management as a Science…

 Management can be treated as a “Behavioral

Science”- the principles and theories of which are
“Situation bound/oriented” as their applicability
does not necessarily lead to the same results every
time.
Management as an Art….

 Can be considered as one of the most “Creative

Arts” as it requires a vast knowledge, along with
innovation, initiatives, implementing & integrating
skills in relation to goals, resources and results.
 As an Art, management calls for a corpus of abilities,
skills & judgment and a continuous practice of
management concepts & principles.
Challenges of Management….

 To achieve specific purpose & mission

 To make tasks more productive & worker achieving.
 To manage social impacts & social responsibilities.
Reconciling the competing Interests of
Management….
Organization:
• Customer needs
• Orgn Needs
• Orgn Constraints

Individuals: Groups:
• Aspirations• Aspirations
• Abilities • Abilities
• Potential • Potential
 Who are Managers..

A manager is an employee who forms part of

a management team and is accountable for
exercising delegated authority over human
and financial resources so as to accomplish
the objectives of the organization.
Management Functions: Importance of Goal
Setting

Vision  Set direction Leadership

Goals
Strategies Management
Actions
  Need to have good
interpersonal skill
What Managers Do  OB focuses on the person-
to-person aspects of work

Managerial Functions
 Planning
 Organizing
 Leading
 Controlling
H. Fayol
Big Hairy Audacious Goals 1990
$25.8 billion
net sales

 Quantitative or Qualitative Approach

 Become a $125 billion company
by the year 2000
2000 net sales $156 billions
2005 net sales $312 billions

 Become the company most

known for changing the
worldwide poor-quality
1950
image of Japanese
products
Big Hairy Audacious Goals

 By 2010, we will be the best teaching

hospital in the world, coupling
unparalleled clinical
expertise with a new standard in healthcare for
compassion and service

 Nurses at The Johns Hopkins Hospital will be

recognized as international leaders in the conduct
and use of research and outcomes measurement to
advance the practice of nursing
Big Hairy Audacious Goals

 Role-model Approach

 Become the Harvard of the West

1940s

 Become the Nike of the cycling

industry

(Giro Sport Design, 1986)

Big Hairy Audacious Goals
 Transform this company from a defense
contractor into the best diversified high-
technology company in the world

 Internal-transformation Approach

1995  Sold its aerospace

and defense
division to Boeing
and later become
Effective & Ineffective Visions

 Effective Vision  Problem signs

– Imaginable – We finish the ”vision thing” and
– Desirable move on to other projects
– Never been brought up in
– Feasible
strategy or planning sessions
– Focused/clear – Any employees who’ve been
– Flexible with the company for 30 days
– Communicable or more can’t tell what the
vision means to them

Your team visions?

Evaluation of Managerial Effectiveness
 Output quality
 consistency/reliability
 meet stakeholders’ expectation

 Efficiency of resources utilization

 labor, capital, time
 knowledge/expertise

 Adaptability over time

 responsiveness
 innovative & change over time

 Ability to hold people accountable

 ideas and innovation
 overall performance
Can I be called a manager….
 Conventional Managerial
Functions..

onceptual & Decision- Managerial Functions

Making Skills Top Level
Mgrs • Planning
• Organizing
Human Middle Level
Mgrs • Staffing
Skills
• Leading
First level
• Controlling & Coordinating
Technical Managers
Skills
Management Skills
 Eleven Qualities of a successful
manager…

. Command of basic facts Basic Knowledge &

. Relevant Professional Understanding Information

ivity to events
The
tical, Problem solving & Decision Making skills
Skills & Success-
Skills & Abilities attributes Ful
onal Resilience
tive Behavior
Manager

8. Creativity
9. Mental Agility Meta Qualities
10.Balanced Learning Habits & Skills
11.Self-Knowledge
 Basic Managerial Roles & their Relationship
with the Organizational Resources…………

Controlling
Organizing
Planning

Leading
Management of…
Human Resources

Financial Resources

Physical Resources

Information Resources

ffective & Efficient attainment of Organizational Goals

Effective Versus Successful
Managerial Activities (Luthans)

1.
1.Traditional
Traditionalmanagement
management
• •Decision
Decisionmaking,
making,planning,
planning,and
andcontrolling
controlling
1.
1.Communications
Communications
• •Exchanging
Exchangingroutine
routineinformation
informationand
andprocessing
processing
paperwork
paperwork
1.
1.Human
Humanresource
resourcemanagement
management
• •Motivating,
Motivating,disciplining,
disciplining,managing
managingconflict,
conflict,staffing,
staffing,
and
andtraining
training
1.
1.Networking
Networking
• •Socializing,
Socializing,politicking,
politicking,and
andinteracting
interactingwith
withothers
others
Effective Versus Successful Managers

 Successful managers
defined as those who were
promoted the fastest

 Effective managers defined

as quality and quantity of
performance, as well as,
commitment to employees:
 Henri Fayol & Management Functions
Plan Lead
Organize Control

84
90%
70
65
61
Importance

54
5050
45
38
33 31
25

0%
Top Middle Low level
managers managers managers
Allocation of Activities by Time
Managerial Work at Different Levels
Instructing subordinates Resource allocation
Managing individual perf. Monitor environment
Managing group perf. Representing people

70% (All levels)

Importance

0%
Middle First-line
Executives
managers Supervisors
An eye on Linking Supervising
The outside groups individuals
What Do Managers Really Do?

Take initiatives
Figurehead
Performing ceremonial duties Entrepreneur
Bring about change
Motivating and directing Handling disturbance
Leader Disturbance handler
subordinates Damage control
Spend time networking Delegation, authorization
Liaison Resource allocator
with outside contacts Resource allocation
Gathering information through Argue with others
Monitor Negotiator
face to face communication to get a better deal
Pass on information to Interpersonal Roles
Disseminator
subordinates
Informational Roles
Explain things to people
Spokesperson
outside the unit Decisional Roles
Typical Managerial Work

Managers’ effectiveness is significantly

influenced by their insight into their own work

 Constant pressure
 Overburdened with obligations
not easily delegate, thus
overworked
 Constant interruption
 Respond quickly
 Seek the tangible
 Prefer oral communication
 Make decision in small
increments
 Do everything abruptly
Behaving like a Manager..

A manager is the one who manages: but

what is he who mismanages ????
Can I be called a manager….

?
Wanna b a manager? Get inspired..
 Hey you…Wanna be a
manager…

 Establish ur Identity in ur organization

 Exercise ur authority
 Don’t become a PO-PO..(Don’t count on competence to be
the sole criterion for success)
 Train & update urself on a regular basis.
 Use technology
 Depend on ur own soft skills
 Be generous with small mistakes
 Praise others & give their due credits where they deserve..
 Wanna be a manager…

 Be a Role Model…create examples thru ur own

performance & contribution
 Control & care for ur employees & subordinates..
 Inculcate empathy for people & show ur willingness
& concern
 Know ur job well
 Be able & competent..show leadership qualities
 Follow deadlines, time & resource constraints
 Respect personal confidentiality of ur peers &
subordinates
I am a manager..yet I have no time..
 Wanna be a manager…

 Create a workplace free from biasness, prejudice &

internal politics.
 Show willingness to try out employee ideas
innovations
 Set firm rules & enforce them without exception &
biasness.
 Handle projects with work-teams, establish time &
quality goals, give authority & autonomy to others
based on their competencies.
 Set goals review them from time to time
Hey what about me???
 Wanna be a manager…

 Give ur peers & subordinates reasons to both like &

trust u…
 Dare to dream big…but don’t daydream
 Have vision & share the same with others.
 Never abuse ur own power or position..be ethical
 Listen to others…
 Treat ur employees as “Internal Customers”
 Measure & track ur key strategies & tactics on a regular
basis...
 Managerial Roles…

Mintzberg’s Managerial Roles

Informational Roles Decision Roles

Interpersonal Roles
Entrepreneurial
Figurehead Role Recipient Role Disturbance
Leader Role Disseminator Role handler

Liaison Role Resource

Spokesperson Role
Allocator
Negotiator
Mintzberg’s Managerial Roles

EXHIBIT 1-1a
Mintzberg’s Managerial Roles
(cont’d)

EXHIBIT 1-1b
Mintzberg’s Managerial Roles
(cont’d)

EXHIBIT 1-1c
Know ur Management Gurus…

Henry
Mintzberg
Once upon a manager…
A Manager’s Mental Blocks…

 Results are proportional to efforts

 Quantity of work is more important than quality
 We need longer working hours
 No breaks please !!!!
 No one else can do it right
 This problem is urgent…
 I am all in all…
Never b the manager where….
 Pose urself a few questions
as a manager….

 What is the vision & mission of my organization?

 How objective am I in my approach to decision
making, work & handling my subordinates?
 Am I sufficiently well informed to pass judgments
on people & proposals?
 How do my subordinates react to my management
style?
Mission Impossible???
 Pose urself a few questions
as a manager….

 Is there any system to any time scheduling or am I

just reacting to the pressure of the moment?
 Do I spend too much time on current disposal?
 Do I recognize & follow the ethical standards in the
organization?
 Am I always objective, rational in my judgments?
 Do I always have a “parent ego” & do things for
others?
 Do I allow & appreciate other’s views & creative
ideas?
 Behaving like a Manager….Some
Fundas

 Rule 1: “The Boss is always RIGHT”

 Rule2: “If the Boss is not RIGHT, see &

believe in Rule 1”
Yessssssss Bosssssssss…
 Behaving like a Manager….Some
Fundas

 Understand the Pyramid of Efficiency,

Productivity, Effectiveness & Success…..
• Efficiency: It is the achievement
of the ends with the least amount
Success of resources.
• Productivity: It is the output-
Effectiveness input ratio within a time period
with due consideration for quality
Productivity • Effectiveness: It is the extent to which
the aimed objectives are achieved most
Efficiency economically & profitably.
• Success: It is the achievement of aimed
objectives.
 Behaving like a Manager….Some
Fundas

Efficiency Effectiveness
Do things right Do right things

Solve Problems Produce creative

alternatives
Safeguard Resources Optimize Resource
Utilization
Discharge duties Obtain Results
Wanna Be a Manager…. “B+ve”

Look carefully & say what it is…

“The Glass is half ______”

Wanna Be a Manager…. “B+ve”

Aint it looks different in terms of

attitude???

Thinking it all Thinking it all

–ve +ve

“The Glass is “The Glass is

half EMPTY” half FULL”
Accentuate Positive Attitude
7 Principles of being a “+ve” Manager

 Be effective, yet be different

 Have a vision & ensure constructiveness
 Inculcate the aura of respect & teamwork in ur
organization.
 Ensure self-improvement on a regular basis
 Contribute regularly (involvement)
 Count on time/deadlines & care for ethics
 Get inspired & inspire others
What ur employees expect from u…
Manage ur people: The Win Win Mantra

The New People

Management Mantra

“Coalescing Corporate
needs with the
individuals is
crucial”
Manage ur people: The Win Win Mantra

“Global competitiveness can be

achieved through the best
technologies and plants, but by
effectively motivating your
employees to perform at global
standards. A new approach to
managing people becomes
absolutely critical here..”

Sanjiv Goenka, Vice

Chairman,RPG Enterprises
Wanna b a good Manager? Believe in
ur Organization’s Talents

Talent Pool
with potential
to attain full
growth /
perfection
 Grow ur Organization’s Talents

Potential
Capacity
Competency

Capacity = Demonstrated competencies +

Unrealized potential

The four fundamental capacities are

learning, thinking, relating and acting
 Understanding ur Organization’s
Talents

AQ: Action Quotient

CQ: Conceptual
Quotient
RQ: Relationship
Quotient
LQ: Learning
Quotient

Talent Quotient
(AQ+CQ+RQ+LQ) x Values
________________________
Talent
Max Capacities are the DNA of any
 D N A
Point of Navigation Point of Arrival
Departure
Translating Aligning individual Clear understanding of
organizational vision values and vision with the varied roles within
into goals and mapping organizational values the organization and
the required level of and vision appreciation of the
capacities and value-addition from self
competencies required and others leading to
to achieve goals building a culture of
trust, sharing and team
orientation
Assessment of talent to Enhancing capacities to Individual growth to
profile the level of learn, think, relate and meet & accept varied,
capacities and set of act through incremental and
competencies possessed development initiatives transformational roles in
within the organization an overall scenario of
acknowledged need for
change
Gap analysis and Helping individuals Developed individuals
identification of realize their full enabling breakthrough
development path potential through performance
learning and
development
Are top managers clueless?

 CEO Jeff Skilling

thought Enron was
“in excellent
shape” when he
quit a few months
before it collapsed
Are top managers clueless?
 Joseph Berardino, CEO of
Enron’s auditor, Andersen
Worldwide, said no one told
him some of his partners
thought the firm was at risk in
approving Enron’s aggressive
accounting practices.
Are top manager clueless?

Roger Smith said it

was a “mystery”
why General
Motors lost
market share
throughout his
tenure as CEO
Virtues and drawbacks of organization

 Prevalence of large, complex organizations is

historically recent
 Much of society’s important work is done in or
by organizations, but…
 They often produce poor service, defective or
dangerous products and…
 Too often they exploit people and
communities, and damage the environment
Signs of Cluelessness

 Management errors produces 100s of

bankruptcies of public companies every year
 Most mergers fail, but companies keep on
merging
 One study estimates 50 to 75% of American
managers are incompetent
 Most change initiatives produce little change;
some makes things worse
Strategies to improve
organizations

Better
management
Consultants
Government policy and regulation
 Approaches To Management
 Empirical / Case Approach
 Interpersonal behavior Approach
 Group Behavior Approach
 Cooperative Social Systems Approach
 Socio-technical Systems Approach
 Decision Theory Approach
 Systems Approach
 Mgt Science Approach
 Contingency Approach
 Managerial Roles Approach
 McKinsey’s 7-S Framework
 Operational Approach
Empirical or Case Approach

Case
Situation
Failures Success

Why?

Features:
• To study experience through cases
• To identify successes & failures

Limitations:
• Situations are all different
• Limited value for development of Management Theory
Interpersonal Behavior Approach

Focus Of Study

Features:
• Focus on interpersonal behavior, human relations
• Based on individual psychology,.

Limitations:
• Ignores planning, organizing & controlling.
• Psychological training is not enough to become an effective manager
 Group Behavior Approach

Study of a Group Study of Groups interacting

with each other

Features:
• Emphasis on behavior of people in groups
• Based on sociology & social psychology,.

Limitations:
• Often not integrated with management concepts, principles.
• Need for closer integration with organization structure, design etc.
Cooperative Social Systems Approach

re
tu
Common

c
ru
Goal

St
n
tio
za
ni
ga
Or

Features:
• Concerned with both interpersonal & group behavioral aspects
leading to a system of cooperation.

Limitations:
• Too broad a field for the study of management.
• Overlooks many managerial concepts, principles & techniques.
 Socio-technical Systems Approach
Technical System

Machines Operations

Social System
Personal Attitudes Group Behavior
Features:
•Technical system has great effect on the social system (personal
attitudes, group behavior).

Limitations:
• Emphasis only on blue-collar & lower level office works.
• Ignores much of other managerial knowledge.
Decision Theory Approach
Process of Individual
Decision Decision
making making

Decision
Entire Area Theory Values of
Of Business Decision
Activity Makers
Nature of Information Group
OrganizationFor Decisions Decision
Structure making
Features:
• Focus on the making of decisions, persons or groups making decisions,
& the decision making process.

Limitations:
• There is more to managing than making decisions.
• The focus is at the same time too narrow & too wide.
Systems Approach
Re-engineering the System

Transformation
Inputs Outputs
Process

External
Environment

Features:
• Systems have boundaries, but they also interact with the external
environment ie. Organizations are considered as “Open Systems”

Limitations:
• Analyzes of the inter-relatedness of systems & subsystems as well as
the interactions of organizations with their external environment.
Management Science Approach
YES
E = F ( Xi, Yi )
NO

Features:
• Managing is seen as mathematical processes, concepts, symbols &
models.
• Looks at management as purely logical process, expressed in
mathematical symbols & relationships.

Limitations:
• Pre-occupation with mathematical models.
• Many aspects in managing cannot be modeled.
• Mathematics is an useful tool, but hardly a school or an approach to
management.
Contingency or Situational Approach

Cause Effect

Depends On

Contingency

Features:
• Managerial practice depends upon circumstances (ie a contingency
or a situation.
• This theory recognizes the influence of given solutions on the
organizational behavioral patterns.

Limitations:
• Managers have long realized that there is no one best way to do things
• Difficulty in determining all relevant contingency factors & showing
their relationships can be very complex.
 Managerial Roles Approach

Interpersonal
Roles

Decision Informational
Roles Roles

Features:
• Interpersonal Roles: Figurehead, Leader, Liaison Roles
• Informational Roles: Recipient, Disseminator, Spokesperson Roles
• Decision Roles: Entrepreneurial, Disturbance-Handler, Resource-
Allocator & Negotiator Roles.

Limitations:
• Many important managerial activities & roles like appraising others
were left out.
McKinsey’s 7-S Framework
Systems
Structure Style

Strategy Staff

Skills Shared Values

Features:

• The Seven S’s are: Strategy, Structure, Systems, Style, Staff, Shared
Values & Skills
Operational Approach
Draws knowledge from
approaches above
Operational
Approach

Integrates the approaches

With science & theory
That is practical
Features:
• Draws together concepts, principles, techniques & knowledge from
other fields & managerial approaches
• The attempt is to develop science & theory with practical application
• Distinguishes between managerial & non-managerial knowledge.
• Develops classification system built around the managerial functions
of planning, organizing, staffing, leading controlling.

Limitations:
• Does not identify “representing” or “coordination” as a separate
function.