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Principles and practices of Management

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Definition of Management Management and Administration Nature Purpose Science or Art Development of Management Thought Contribution of Taylor and Fayol Types of Business Organization.

 Art

of making things done through others
Mary peter follet

Knowing what to do and ensuring whether achieved in the cheapest way – F.W.Taylor

Nature & purpose

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Process of designing & maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims. Helps the people to carry out the managerial functions of planning, organizing, staffing, leading and controlling Applies to any kind of organization Applies to managers at all organizational level Helps the manager to create surplus output Effective and efficient productivity (output/ input)

Interpersonal role – figurehead, liaison, leader  Information role – recipient, disseminator, spokes person  Decision role – entrepreneurial, disturbance handler, resource allocator, negotiator.

Particulars • Nature •Scope

Administration •Thinking Function •Determines broad objectives and policies •Top level function

Management •Doing Function •Implements plans and achieves goal through people

•Level •Skills •Represents •Usage

•Middle and lower level function •Conceptual and •Technical and human skill human skill •Owners who invest •Paid individuals capital who work for remuneration •Government , •Business Military, organization Educational

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Administration

Management

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Top Ten Companies
        

General Electric -Fairfield, CT, U.S. Procter & Gamble -Cincinnati, OH, U.S. Nokia -Espoo, Finland Hindustan Unilever -Mumbai, India Capital One Financial -McLean, VA, U.S. General Mills -Minneapolis, MN, U.S. McKinsey IBM -Armonk, NY, U.S. BBVA (Banco Bilbao Vizcaya Argentaria) -Bilbao, Spain Infosys Technologies -Bangalore, India

Management as a Science - It is a systematized body of knowledge - It is a Social Science - It is Scientific management  SCIENCE –WHY?  Methods of inquiry should be systematic  Information can be ordered and analyzed.  Results are communicable

Management as a Art ART-HOW?  Managing as practice -It is concerned with application of knowledge - How to do things creatively and skillfully

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Top Managers Chief Executive Officer Middle Managers Department managers Low level Managers Supervisor Office Mangers Workers Laborers Technicians
99 99 9 11 99 99 11 9

Vertical Specialization

Horizontal Specialization

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Companies which are running into success create surplus through productivity operations . Productivity =inputs/outputs Effectiveness and efficiency

F.w.taylor (1856-1951)  Performing task could be determined by developing a true science of management  Individual worker can be suitable task and responsibility  Worker should be scientific education and development  Cooperation between the management labour

Replacing the rule of thumb with science  Harmony in group action  Co-operation  Maximum output  Development of workers

1861-1919  50 –cent of bonus  PERT, CPM  Navy louts 123  Gannt chart

1878 -1972  Motion study  Fatigue study  Workers welfare ‘

1864-1920  Clearly defined regulations  Technical competency  Performance appraisal

1868-1933  Human relations  Organizational structure  Behavioral management

1886-1961  Personal goal and informal group  Team and team work  (motoral ,dupout ,GE)

1924 to 1933  Western electric company  Relation ship between the change in the work place and productivity

Hawthorne experiment
Study
Changes in illumination

Outcome
Productivity increased(1927-32) productivity varied(2009) Motivational effect of the interest being shown in them Other factors such as the weekly cycle of work or the seasonal temperature and so the initial conclusions were overstated and the effect was weak or illusory The workers felt that they are being watched

Relay assembly test. 1.Changes in wages (Paid for overall Production) 2. Increased the break time (two 5 minutes, two 10 minutes, six 5 minutes) 3.Providing food during breaks 4.Shortening the day time for 30 Minutes, Shortening more, returning to original Interview with workers

1. Increased productivity

2. Increased- Increaseddecreased 3. Increased 4.Increased- increasedpeaked up Upward communication increase positive attitude in the work environment Productivity decreased The workers feel pleased that their ideas are being heard.

Bank wiring room experiments

Feared that some of them would be fired out

1841-1925  Founder of classical organization  Managerial behavior  Technical –relating production  Commercial –buying, selling  Financial –capital and optimum use Security-protection of property  Accounting-statistics Managerial 

Division of work  Authority and responsibility  Discipline  Unity of command  Unity of direction  Subordination of individual interest to the general interest  Remuneration of personnel  Centralization  Scalar chain  Order  Equity

Stability tenure  Initiative  Esprit decrops-union strength

Describe the three branches of the traditional viewpoint of management:
◦ Bureaucratic ◦ Scientific ◦ Administrative

Explain the behavioral viewpoint’s contribution to management.

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Bureaucratic Management  Scientific Management  Administrative Management

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Refers to the use of rules, a set of hierarchy, a clear division of labor, and detailed procedures.
◦ Rules – formal guidelines for the behavior of employees on the job. ◦ Impersonality – employees are evaluated according to rules and objective data. ◦ Division of Labor – splitting work into specialized positions.

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◦ Hierarchical Structure – ranks jobs according to the amount of authority in each job. ◦ Authority – who has the right to make decisions of varying importance at different organizational levels.
Traditional authority Charismatic authority Rational,legal authority

◦ Lifelong Career Commitment – both the employee and the organization view themselves committed to each other over the working life of the employee. ◦ Rationality – is the use of the most efficient means available to accomplish a goal.
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Benefits
◦ Efficiency ◦ Consistency ◦ Functions best when routine tasks are needed

Drawbacks
◦ ◦ ◦ ◦ ◦ Rigid rules and red tape Protection of authority Slow decision making Incompatibility with changing technology Incompatibility with workers’ values