Principles of Management

Management Skills
• 1. Technical Skills
• 2. Human Skills
• 3. Conceptual Skills
Types of Managers
• Management levels-
• 1. First line manager
• 2. Middle manager
• 3. Top manager
Functional and General Managers
• Functions-
• A) Functional manager
• B) General manager
Fayol’s 14 principles of management
• 1. Division of labor
• 2. Authority
• 3. Discipline
• 4. Unity of command
• 5. Unity of direction
• 6. Subordination of individual interest to the common good
• 7. Remuneration fair to both employees and employers
• 8. Centralisation
• 9. The Hierarchy
• 10. order
• 11. Equity
• 12. Stability of staff
• 13. Initiative
• 14. Espirit de corps
Schools of Managemnt thought
• 1. the scientic Management School
• Frederick W.Taylor- 1890-1930
• Henry L. Gantt- Gantt charts
• The Gilberths- Frank and Lillian Gilberth

2. Classical org. theory school-

.Henry Fayol
. Max Weber – Bureaucracy
. Marry Parker Follett- believes in the power of group
. Chester I. Barnard- organisation and individual goals should be balanced
• 3. The Behavioural School-
• Human relations movement
• The Hawthorne experiments- western electric co. in 1924
4. The Management Science School
Operations research- Mathematical techniques for the modelling , analysis and solution of management
problems
Robert Mcnamara- Ford Motor co. in 1950-60
5. The systems Approach-
a. Subsystems
b. Synergy
c. Open and closed systems
d. System boundary
e. Flows
f. Feedack
• 6. The Contingency approach
Planning
• Planning is a particular kind of decision making that addresses the
specific future that managers desire for their organizations.
• Planning is beginning and end.
• Planning- An overview
• Goals provide a sense of direction
• Goals focus our efforts
• Goals guide our plans and decisions
• Goals help us evaluate our progress
The importance of planning at organisation
• To organise people and resources effectively
• What they need to organise
• To lead with confidence
• To achieve goals
• To control
Hierarchy
• 1. Strategic plans- plans designed to meet an org’s broad goals
• 2. Operational plans-plans that contain details for carrying out, or implementing , those strategic
plans in day –to –day activities
• 3. Mission Statement- Broad organisation goals, based on planning premises which justifies an
org’s existence

Mission statement

Strategic plans

Operational plans
Difference between SP and OP
1. Time horizons- SP looks several decades or years ahead, op for 1
year
2. Scope- SP affect a wide range of org activities, whereas op have
narrow and limited scope
3. Degree of detail- SP less detailed, op more detailed
4. Types of plans-
 goals

Strategic plans

Operational plans

For non recurring Standard

For recurring procedure
activities Standing plans policies rules
activities s

Single use plans bud

gets

project
programs
s
Organising
• Organisation Structure- defines how job tasks are formally divided,
grouped and coordinated.
• Six key elements
• Work specialisation
• Departmentalisation
• Chain of command
• Span of control
• Centralisation
• Decentralisation
• Formalisation
• 1. Work Specialisation
• 2. Departmentalisation-
• a. Functions
• b. Product
• c. Geography
• d. Process
• e. Customer
• 3. Chain of command- who reports to whom- Unity of command
• 4. Span of control- The no. of subordinates a manager can efficiently
and effectively direct.
• wide or narrow span- wide – more flat and lean org. less control
• Narrow- more expensive , more control, vertical complex
• Wide span better- reduces costs, cuts overhead, speed up decision
making, increase flexibility, get closer to customer and empower
employees
• 5. Centralisation and decentralisation- the degree to which decision is
concentrated at a single point in the organisation.
• Decision making is pushed down to lower level employees
• 6. Formalisation- The degree to which jobs within the organisation are
standardized.
• Delegating Authority-
• 1. clarify the assignment
• 2. Specify the delegate’s range of discretion
• 3. Allow the delegates to participate
• 4. Inform others that delegation has occurred
• 5. Establish feedback controls
• Common organisation designs
• 1. The simple structure- A structure characterised by a low degree of
departmentalisation, wide spans of control, authority centralised in a
single person and little formalisation
• 2. The Bureaucracy- A structure with highly routine operations tasks
achieved through specialisation, very formalised rules and
regulations.
• 3. The matrix structure- A structure that creates dual lines of
authority
New Design options
• The Team Structure
• The Virtual Organisation
• Boundaryless organisation- An org. that seeks to eliminate the chain
of command, have limitless spans of control, and replace
departments with empowered teams. Cross hierarchial teams.
Coordination
• Coordination is the management of interdependence in work
situations. E.g. hospital
• 1. works in harmony
• 2. Each dept. informed about the share it must take.
• 3. The working schedule of the various depts. Is constantly attuned to
circumstances.
• Distinction between coordination and cooperation
• Coordination is informing and cooperation is helping
Need for coordination
• Division of labour
• Interdependence of units
• a. Pooled interdependence- product based HLL.
• b. Sequential interdependence- textile mill
• C. Reciprocal interdependence-input of one unit becomes output of
others.
• Individual interests v/s org interests
Requisites for excellent coordination
• 1. direct contact
• 2. early start
• 3. Continuity
• 4. Dynamism
• 5. Clear cut objective
• 6. Simplified org
• 7.Clear definition of authority and responsibility
• 8. Effective communication
• 9. Effective leadership and supervision
Types of Co-ordination
• Internal or external
• Vertical or horizontal
• Procedural or substantive
Techniques of coordination
• 1. rules, procedures and policies
• 2. Planning
• 3. Hierarchy
• 4. direct contact
• 5. Task force
• 6. Committees
• 7. Induction
• 8. Indoctrination
• 9. Incentives
• 10. Lia son depts.
• 11. workflow
Difficulty of coordination
• 1. Differences in orientation towards particular goals
• 2. Differences in time orientation
• 3. Differences in interpersonal orientation
• 4. Differences in formality of structure
Staffing
• Filling and keeping the positions provided for by the organisation
structure filled with the right people is the staffing phase of the
management function.
• It includes-
• 1. Recruitment
• 2. Selection
• 3. Transfers and promotions
• 4.Training
• All managers do staffing. BOD- Selection- CEO- VPs- other managers
Importance and need for proper staffing:
• Labor costs- 25% of production + 40% of selling cost
• 1. Discovering talented and competent workers and developing them
to move up the corporate ladder.
• 2. It ensures greater production by putting the right man in the right
job.
• 3. It avoids sudden disruption of an enterprise’s production run by
indicating shortages of personnel in advance.
• 4. To prevent under utilisation through overmanning
• 5. Information to management for the internal succession of
managerial personnel in the event of an unanticipated turnover
Manpower planning
• Short – term manpower planning
• Long- term manpower planning
• Future jobs and future incumbents-
• A. requirement
• B. promotion
• C. training
Recruitment
• Sources- 1. Re-employment
• 2. Friend and relatives
• 3. Gate applicant
• 4. Colleges
• 5. Employment exchanges
• 6. Advertisement
• 7. Labour unions
Internal v/s external sources of recruitment
• Advantages and disadvantages of internal-
• 1. Sense of security
• 2. Motivation and morale
• 3. Loyalty
• 4. Turnover reduced
Disadvantages-
• Limited choice
• Less fresh ideas
• Favouritism
• Advantages and disadvantages of external recruitment-
• New ideas
• Choice is wide
• Disadvantages-
• Low morale of employees
• Greater turnover
• Less loyalty
Selection
• Steps- Job analysis, Job Description, Job specification
• Application blank
• Initial interview
• Employment tests
• Checking references
• Physical and medical examination
• Final interview
Placement and Orientation
• Direction-
• Requirements of effective direction-
• 1. Harmony of objectives
• 2. Unity of command
• 3. Direct supervision
• 4. Efficient communication
• 5. Follow through
• Giving orders