Management Principles Aand Practices

MANAGEMENT PRINCIPLES
AND PRACTICES
Dr. R. Krishna
FT MBA NMIMS
FIRST TRIMESTER
Dr.R. Krishna - Managemen
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Definition of Management
Management :
On expanding : Manage men tactfully
Manage Men technology
Manage men as team
Manage competencies
Manage objectives (MBO)
Manage men and things (resources physical,
inanimate)
MANAGE f ( RISKS, REWARDS)
Competencies = f (SKATE)
(Men/Women- no discrimination)
Norway will have by 2007, 40% women in all fields, in govt orgs, in
corporates and also in NGOs. This is now made as a law.

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When it comes to manage people, it is

said that people are enigmatic.
Thus, Management is enigmatic.
Harold Koontz described the present state
of management theory as a jungle.
There can be lots of ambiguity and there will
be no recipe book
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MANAGEMENT IS A FUNCTION OF :
M = f(RESULTS, FEEDBACK,
RESULTS)
MANAGING THE INTERNAL AND EXTERNAL
ENVIRONS IN THE BIO-ECOSYSTEMS,
THROUGH VARIOUS EFFECTIVE AND
EFFICIENT PROCESSES, WITH THE
OBJECTIVE OF ACHIEVING LAID DOWN
EXPECTED RESULTS.
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All is PEOPLE RESOURCE

MANAGEMENT
Why?
Get into discussion mode:
Who Created all that is around us:
Except the sun, the moon, air, ocean, sky, stars,
and the first human being and the first
animals/insects
Thereafter the development of clones, artificial
insemination, going on the moon, technological
advancements and moving towards civilization is
all done my people.
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Definition of Management
By Griffin:
A set of management functions directed at
the efficient and effective utilization of
resources in the pursuit of organization
goals.

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Definition.contd.
By Koontz and Weihrich:
Management is the process of designing
and maintaining an environment in which
individuals working together in groups,
efficiently accomplish selected aims.

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Peter F. Drucker-Father of Modern

Management
Management is an organ, organs can be
described and defined only through their
functions

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The difference between Management Principles

and Management Functions:
What should I do (principles) to ensure that I do
my job (functions) with effectiveness and
efficiency.
Principles are strategies / processes which
enable the individual to do their functions better
to achieve laid down goals and objectives
GOALS qualitative achievements
Objectives could have a mix of quantitative
and qualitative
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Terry & Franklin

Management is a distinct process
consisting of activities of planning,
organizing, actuating, and controlling,
performed to determine and accomplish
stated objectives with the use of human
beings and other resources.

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CONCEPTUAL SKILLS
Top level
H
U
M
A
Middle level
N
S
K
Supervisory
level/entry
level
TE
CH
NI
CAL
SKI
LLS
ILL
S

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Henry Mintzberg
He has categorized these roles into three
groups
interpersonal roles
Informational roles
Decisional roles
Description of each of the roles
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Interpersonal Roles
A manager serves as a figurehead a
symbol; as a leader, ie., hires, trains,
encourages, fires, remunerates, judges;
and as a liaison between outside contacts
and the organizational)

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Informational roles
A manager serves as a monitor by
gathering information;
As a disseminator of information
As a spokesperson of the organization

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Decisional Roles
A manager serves as an entrepreneur by being:
An initiator
Innovator
Problem discoverer
Designer of improvement projects
As a disturbance handler of unexpected situations
As a resource allocator and
As a negotiator
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ALL THE THREE ROLES PUT

TOGETHER IS CALLED AS:
THE MANAGERIAL WORK ACTIVITY
APPROACH

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The whole management process is actually an

integration of the work activity (Mintzberg) and
the management functions
MANAGEMENT FUNCTIONS :
Planning, Organization, Co-ordination, motivation,
and control are Universal.
These functions are performed in all organizations
SMEs, Large, not-for-profit organizations, etc.

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Definitions
Planning : Management functions that involves
the process of defining goals, establishing
strategies for achieving those goals and
developing plans to integrate and coordinate
activities
Organizing: management function that involves
the process of determining what tasks are to be
done, who is to do them, how the tasks have to
be grouped, who reports to whom, and where
decisions are to be made
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Leading : management functions that involves motivating

subordinates, influencing individuals or teams as they
work, selecting the most effective communicating
channels or dealing with any with employee behavior
issues
Controlling : Management functions that involving
monitoring actual performance, compiling actual to
standard, and taking action if necessary
Management process : The set of ongoing decisions and
work activities in which managers engage as they plan,
organize, lead and control.

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The pyramid to the top
Talk of management levels:

Top level
middle level
Front line supervision
Non-managerial work force

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Leadership
Blake and Mouton:
R1 ---- R2 ------ R3
R1 = RESOURCES
R2 = RELATIONSHIPS
R3= RESULTS

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What is leadership?
A sound way of exercising leadership is
through the use of what are called as
three Rs Resources, relationships and
results. How a person operates in this
context can make a difference between
organization success and failure

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THE ;LEADERSHIP GRID : Source: Scientific Methods

Inc.
X & Y axis on a scale of 1 9
C
O
N
C
E
R
N
F
O
R
P
E
O
P
L
E
High
1,9 Country Club

Mgmt
Team Mgmt 9,9
5, 5
Middle of the Road
Management
low
1,1 Impoverished
Mgmt
Low
Authority Compliance 9,1
CONCERN FOR PRODUCTION

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High
23
How concerns for Production/People affect

Leadership Style:
1,9 : Country Club Management : Thoughtful attention to the
need of people for satisfying relationships leads to a
comfortable, friendly organization atmosphere and work
tempo.
1,1 : Impoverished Management : Exertion of minimum effort
to get required work done is appropriate to sustain
organizational membership
9,1 : Authority Compliance : Efficiency in operations results
from arranging conditions of work in such a way that human
elements interfere to a minimum degree
9,9 : Team Management : Work accomplishment is from
committed people; interdependence to a common stake in
organization purpose leads to relationships of trust and
respect
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9+9 : Paternalistic management :

Reward and approval are granted to people in
return for loyalty and obedience; failure to
comply leads to punishment
OPPORTUNISTIC MANAGEMENT : In this style,
organization performance occurs according to a
system of exchanges, whereby effort is given
only for an equivalent measure of the same.
People adapt to the situation to gain maximum
advantage from it. (all leadership points ie. 1,1;
1,9;, etc., converge at a new point OPM)
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THE MOTIVATIONAL DIMENSIONS FOR

EACH STYLE
PLEASE REFER TO LEADERSHIP GRID
OF BLAKE AND MOUTON.

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Management..
Is based on a systematic body of knowledgelaws, principles and concepts
And this knowledge is universal
If a manager has this fundamental knowledge
And knows how to apply it to a given situation
He should be able to perform the managerial
functions efficiently and effectively

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Management
Management Practice is regarded as an
art
But, organized knowledge about
management is a science
THUS MANAGEMENT IS BOTH AN ART
AND A SCIENCE

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Management ..
Is also a profession
Separation of ownership from control
The rules and regulations framed by the govt to
protect citizens from exploitation
The growth of trade union movement
The desired of business leaders for social status
And the
Impetus of the scientific management philosophy
which stresses the need for technically trained
professional managers contributed to the
PROFESSIONALIZATION OF MANAGEMENT.
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Most important human activities is

managing
Mackenzie King remarked:
Labor cannot do anything without capital,
Capital nothing without labor and neither
Can do anything without the guiding genius
of management.

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This should have enabled you to

understand what management is at a
fundamental level of definition and
understanding..
Any questions

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Evolution of Management Thought

Give a handout titled:
Early streams of Managerial ideas
responding to situational demands
Put students on discussion mode

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Schools of Management Thought

It was during the 20th century that a
systematic study of management began

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4 schools of thought
(by: Newman, Summer and Warren)
Productivity approach
Behavioral approach
Rationalistic model approach, and
Institutional approach

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Hutchisons classifications
Classical management theory

Human behavior theories
Social and political systems approaches
Ecological systems approach and
Rational decision making concepts

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THE CONTRIBUTORS ON
MANAGEMENT PRICIPLES

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Charles Babbage (1792-1871)

Benefits of division of labor
Use of science and mathematics
Emphasis on cost reduction

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Henry R. Towne
Main contribution is :
That he set the climate and atmosphere for
the later application of scientific methods.
Of lesser importance was his plan of gainsharing as a system of wage payment.

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Henry Metcalfe (1847-1917)

In 1885, his pioneering work:
The Cost of Manufacturers and the administration
of Workshops, Public and Private
Theory of Management was based on system and
control
He insisted that all authority should emanate from
a given source, with a flow back to that source of
detailed information concerning expenditures
and accomplishments
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Henry Laurence Gantt (1816-1919)

Educated from John Hopkins College
Engineer, as draughtsman and later Asst.
engineer
His publications: Work, Wage and Profits
(1910); Industrial Leadership(1916); and
Organizing for Work.(1919)

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Gantts Thoughts.
Task and Bonus Plan

Daily Balance Chart (Gantt Chart)
Humanizing Science of Management
Important of Leadership
Training of Workers
Social Responsibility of Business
(Also called as : Forerunner of modern industrial
democracy; also called as apostle of industrial
peace)
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Harrington Emerson (1853-1931)Popularizer of scientific

management
Principles of Efficiency (12)
1. Clearly define ideal 2. commonsense 3.
Competent Counsel 4. Discipline 5. Fair deal
6. Reliable, immediate, adequate and
permanent records 7. Dispatching (production
scheduling and control techniques) 8.
Standards and schedules 9. Standardized
conditions 10. Standardized Operations 11.
Written standard practice instructions 12.
Efficiency reward
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According to Ernest Dale, Emerson really

advocated the elimination of waste:
a. Setting definite logical goals for all
company operations and making
managers down the line understand them
so that they would not be seeking private
goals of their own
b. Production planning and scheduling and
the use of written standard practices
c. Better utilization of machine and man
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d. Cost Accounting
e. Standards and specifications for
materials
f. Standardization of parts and products as
far as possible
g. A rational approach to capital
expenditures
h. Better selection, placement, and fair
treatment of employees and a system of
financial incentives as equitable as
possible
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Frank Bunker Gilbreth (1868-1924)

and Lillian Moller Gilbreth(18781972)
FBG: authored: Concrete Systems (1908); Field
System (1908); Motion Study (1911); Power of
Scientific Management (1912); Fatigue Study
(1916); Applied Motion Study (1917, with Lillian
Gilbreth); and Motion study for the
Handicapped (1920)
The Father of Motion Study was a
contemporary of Taylor and Gantt
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Lillian Moller Gilbreth:Professor of

Management at Purdue University. Her
famous works: The Psychology of
Management (1914) and Quest for the
Best Way (1924)

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Contributions by Frank Gilbreth
Motion study
Time Study
One best way
Training of personnel
Three position plan of promotion (each worker should be
considered to occupy three positions: a. the job he held
before promotion to his present position b. his present
position and c. the next higher job
Part of his work, then would be teaching the man below
him and learning from the man above him. In this way,
he would qualify for promotion himself and help to
provide a successor to his current job.
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Contributions of Lillian Gilbreth

It should be noted that FBG was greatly assisted by
Lillian Gilbreth whom he married in 1904
Both of them used motion picture films to analyze and
improve motion sequences
Both developed the process of chart and the flow
diagram to record process and flow patterns used in a
work situation
They emphasized written instructions to avoid confusion
and misunderstanding (the white list card system)
The Gilbreths urged tha the POM and motion analysis
could effectively be applied to huge untapped area of
self-management. They started to search into the area of
fatigue and its impact o health and productivity.
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Robert Owen (UK)-The father of

personnel management
Contributions:
Improvement in Factory and domestic
conditions of his employees
Social reforms (creating model community
out of his mills town; educational reforms)
Owen said that his object was not to be a
mere manager of cotton mills, but to
introduce principles in the conduct of the
people.
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MODERN GURUS - POM

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Fredrick Taylor
The credit of systematic study and
practice of management goes to FWT,
very well known as FATHER OF
SCIENTIFIC MANAGEMENT
Experiments of Taylor

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Midvale experience
At Midvale Steel Company, he found that
individual workers had their own notions about
work and different workers performed the same
task in different ways
He realized that greater output was possible on
the part of the workers but most of them were
engaged in what he called systematic
soldiering.
The solution: the first task of management was to
know what constituted a proper days work
He conducted time studies at Midvale Steel
Company which proved of immense use to him
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Bethlehem Experiments Pig-Iron

Handling
Taylor was hired by the Bethlehem Steel Company to
increase the output of one of the larger machine shops
which had been a serious production bottleneck
Conclusion: Periodic rests enabled a worker to produce
more than continuous work. By a systematic resting time
and improved methods average productivity was raised
from 12.5 tons to 47.5 tons per day.
Taylor began selecting workers and training them in
handling pig-iron
The original crew was 75, this reduced dramatically
The earnings of the crew increased from USD1.15 to
USD 1.85 per man per day.
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Taylors prescription for Managers

responsibilities
a.
Under four heads :

They should develop a science for each element of mans work
which replaces the old rule of thumb method
b.
They should scientifically select and then train, teach and develop
the workmen
c.
They should heartily cooperate with the men so as to ensure
performance of work in accordance with the principles of the
science which have been developed
d.
There should be almost equal division of work and responsibility
between management and workmen
Taylor, wanted that management should take the responsibility of
planning, directing and organizing work.
HE DEEMED IT ESSENTIAL TO SEPARATE THE PLANNING OF
WORK FROM ITS EXECUTION, SO THAT EACH INDIVIDUAL
COULD WORK AT HIS BEST EFFICIENCY AND COULD BE
COMPENSATED ACCORDINGLY.
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Taylors Management Principles

Large, daily, defined task
Standard conditions skill sets and tool sets
to be made available with authority along
with clear cut objectives and expectations;
this is called as ACCOUNTABILITY
High Pay for success
Loss in case of failure
Separation of planning from doing the most
valuable insights of TAYLOR
Functional foremanship
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HENRY FAYOL= Father of

Principles of Management
Division of labor
Authority and Responsibility
Discipline
Unity of command (one boss--subordinate)
Unity of Direction (one head and one plan)
Subordination of Individual Interests to
General Interest (FIRM, FAST AND FAIR)
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Remuneration of Personnel (Pay by Results;

motivational ESOPS, etc)
Centralization (optimization between
centralization and decentralization; as the human
body brain is the centralized organ)
Scalar Chain This is the chain of superiors
ranging from the ultimate authority to the lowest
ranks. THE ORGANOGRAM
Order: Right man in the right place; competency
specific; man should fit the job and not the other
way round; or else this will be like A SQUARE
PEG IN A ROUND HOLE.
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Stability of tenure of personnel retention

of talent; attrition; turnover of people
Initiative encourage initiative among
subordinates
Esprit-de-Corps : UNION IS STRENGTH;
team work; cohesiveness among the
members

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Fayols Elements of Management

Fayol made a distinction between
General Principles of Management and
elements of Management.
The latter was regarded as functions of
management. Dividing them into:
PLANNING, ORGANIZATION, COMMAND,
COORDINATION AND CONTROL

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Planning
Planning : most important and difficult managerial
function.
Planning meant looking ahead and to foresee both to
assess the future and make provision for it
He considered unity, continuity, flexibility and provision
as the broad features of a good plan of action
A GOOD PLAN IS A PRECIOUS MANAGERIAL
INSTRUMENT
A GOOL PLAN ALSO HAS TO BE IMPLEMENTABLE

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ORGANIZING
Means : to organize a business is to
provide it with everything useful to its
functioning, raw materials, tools, capital,
personnel.
Fayol concerned himself both with
structure and process, listing 16
managerial duties and emphasizing the
necessity for clear objectives, authority,
decisions and task
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COMMAND/DIRECTION
After the organization is formed, it is the mission
of command to set it going.
For every manager, the object of command is to
get the optimum return from all employees of his
unit in the interest of the whole concern
The art of command, according to Fayol, rests
on certain personal qualities and knowledge of
general principles of management

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COORDINATION
1.
2.
3.
To coordinate is to harmonize all the activities of a

concern so as to facilitate its working and its success
According to him, in a well coordinated enterprise the
following facts are to be observed;
Every dept works in harmony with the rest
Divisions or sub-divisions in each dept are precisely
informed as to the share they must take in the
commercial task and the reciprocal aid they are to
afford one another
The working schedule of the various departments and
sub-divisions thereof is constantly attuned to
circumstances
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CONTROL/MEASUREMENT AND
FEEDBACK
According to Fayol, control consists in verifying
whether everything occurs in conformity with the
plan adopted, the instruction issued and the
principles established
Its object is to point out weaknesses and errors
in order to rectify them and prevent recurrence.
It operates on everything resources (things),
people and actions

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Key principles of Mgmt of FAYOL
Unity of command
Unity of direction
Responsibility equal to authority and
Scalar Chain

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MAX WEBER- THETHEORY OF

AUTHORITY STRUCTURES
There are three factors involved in the
understanding of any organization as under:
The laws and the traditional taboos of the society
Individual leadership (charisma) which is largely
emotional
Bureaucracy, i.e., The mass of administrators who
carried out the laws and policies of the
government

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Three types of authority

Charismatic Authority based on the
personal magnetism of the leader
CHARISMA : PERSONAL QUALITY OR
GIT THAT ENABLES AN INDIVIDUAL TO
IMPRESS AND INFLUENCE MANY OF
HIS FELLOWS, A LEADER DOMINATES
DECISION MAKING

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TRADITIONAL AUTHORITY
In this type of authority system the
leader has authority by virtue of his status
that he has inherited
The extent of his authority is fixed by
custom
The officials who carry out the orders are
like household staff of the master

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Rational-Legal authority =
bureaucracy
This authority system dominates, and it is most efficient
one
This system is characterized by rationality and legality
The system is rational because the means are expressly
designed to achieve certain specific goals
The org is like a well designed machine with a certain
function to perform, and every part of the machine
contributes to the attainment of maximum performance
of that function.
It is legal, because authority is exercised by means of a
system of rules and procedures through the office which
the individual occupies at a particular time
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BUREAUCRATIC FUNCTIONS
ARE:
Regular activities aimed at organizational goals
so that they are distributed as fixed official
duties
All activities follow the organizational principles
of hierarchy
Operations receive equal treatment under a
consistent systems of abstract rules
Officials operate as formalistic personalities
without becoming emotionally involved.
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Lyndall Urwick 6 sets
Principle of Investigation
Principle of Objective
Principle of Organization
Principle of Direction
Principle of Experiment
Principle of Control
(Urwicks principles of management and
organization source: A dictionary of Industrial
Administration edited by John Lee )
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Urwicks Principles of Organization

This was his main contirbutions to original
thinking in regard to the framework of
management
The principles were modified and
published by AMA
They are :

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Principle of Objective
(purpose/mission/objectives and vision)
Principle of Specialization : the activities of
every member of any organized group
should be confined, as far as possible, to
the performance of a single function
Principle of coordination: The purpose of
organizing per se, as distinguished from
the purpose of the undertaking, is to
facilitate coordination and unity of effort.
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Principle of Authority: In every organization

group, the supreme authority must rest
somewhere. There should be a clear line of
authority from the supreme authority to every
individual in the group
Principle of Responsibility : The responsibility of
the superior for the acts of his subordinate is
absolute
Principle of Definition: The content of each
position, the duties involved, the authority and
responsibility contemplated and the relationships
with other positions, should be clearly defined in
writing, and published to all concerned

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Principle of Correspondence: in every

position, the responsibility and the
authority should correspond
Principle of Span of Control: No person
should supervise more than five, or at the
most six direct subordinates (reportees)
whose work interlocks
Principle of Balance: The various units of
an organization should be kept in balance
Principle of continuity : Reorganization is a
continuous process, in every undertaking
specific provision should be made for it.
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George Elton Mayo (1880-1949)

He has been called the founder of the human
relations school.
He became famous on account of the
Hawthorne experiments
These experiments had a significant impact on
management thought, and considerably
influenced the human relations movement.
Experiments conducted in the Hawthorne Plant
of the Western Electric Company in Chicago
from 1927 to 1932.
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Hawthorne studies three general

phases
Test Room Studies : the object being to assess
the effect of single variables upon employee
performance. They were experimental in nature
Interviewing Studies: these were largely
concerned with improving employee attitudes
and were psychological in nature
Observations Studies: these were undertaken to
understand and describe the factors influencing
the informal organization of work groups and
were sociological in nature
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TEST ROOM STUDIES

Illumination Experiments: Two test groups varied
effects of lighting on output vs. no change situation; the
results were that in both the groups the output increased.
Conclusion that environmental factors like lighting may
not be the only factor, there could be other variables
Relay Assembly Test Room Experiments: This study was
made to discover the anomalies of the previous
experiments. Numerous variables were put into action
room conditions, pauses during work, piece-work, work
without pauses and shorter working hours. After 12
week study, the output went up to a record level

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Interviewing studies: An interview program of

thousands of workers was conducted with the object of
finding out the attitude of the employees towards their
job, working conditions and supervision
The interviewing program revealed the following points:
a. Merely giving a person an opportunity to talk and air
his grievance has a beneficial effect on his morale
b. Complaints are not necessarily objective statements of
facts. They are often symptoms of more deep-seated
disturbances
c. Workers are influenced in their demands by
experience both inside and outside the factory
d. Worker is satisfied or dissatisfied not in terms of any
objective frame of reference but rather in terms of how
he regards his social status in the firm and what he
feels he is entitled to in the way of rewards
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Observational studies
The Bank Wiring Observation Group Study constituted
the last phase of Hawthorne studies
It was conducted to investigate the social pattern of a
group of fourteen workers and their associated
supervisors
The main point of difference between this study and the
earlier test room studies was that no experimental
changes were planned but efforts were directed to study
the group in its customary functioning
This study revealed that there existed a GROUP NORM
in terms of which the behavior of different individuals was
in some sense being regulated
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This group was restricting the output on account of various forms of

social pressures
The group had for itself a standard of a days work which was not
imposed upon them, but had apparently been evolved by workmen
themselves
The group had various social pressures to see that the workers did
not exceed the group output norm, and nobody attempted to attain
official production targets
Those who attempted to exceed became targets of social
disapproval, verbally or physically
This study showed the importance of informal, social group in
business organization
A member of such a group cared more for the opinion of the group
rather than for financial incentives of the management
IT WAS THE GROUP THAT DECIDED HIS ATTITUDE TO WORK,
MANAGEMENT AND LEVEL OF PRODUCTION
THESE STUDIES FURTHER REAFFIRMED THE IMPORTANCE
OF INFORMAL GROUP IN THE MOTIVATION OF WORKERS.

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CONCLUSIONS OF HAWTHORNE
STUDIES
1. Environmental factors not the sole factors
affecting productivity
2. Worker is not an economic man (not
purely motivated by money alone)
3. Importance of recognition, Security and
Morale
4. Importance of Informal group
5. Importance of total work situation
6. Complaints as symptoms
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Mary Parker Follett-famed political

and social philosopher
Her main contributions:
Was formulation of principles of human association and organization,
especially in terms of industry
The basis of her philosophy was that one cannot separate work from
human beings
Business is a series of interrelationships between people
Follett pleaded that there is a great need to recognize the motivating
desires of the individual and the group
She said that the basic problem of any organization was that of
harmonizing and coordinating the group efforts to achieve the most
efficient effort towards completing a task
She talked about power, leadership and authority.
Her ideas are as under:

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Conflicts
Follett said that conflicts have a constructive role
to play in an organization.
Conflicts are not warfares but the appearance
of difference, difference of opinion, of interests.
Conflicts are neither good or bad; if used
constructively their results are god and if used
destructively their results are bad
She suggested that conflicts can be harnessed
to the service of the group much as an engineer
uses friction
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Three ways to resolve conflicts
Domination (victory of one side over the other. Follett did not
advance this method, because of use of force beyond a certain
point lessens energies and self-respect)
Compromise (This is better than Domination; both sides surrender
some part of what they are demanding, i.e., for a compromise there
must be a mid-point between the needs and desires of both parties
on which they agree, willingly or unwillingly. This method is still
commonly unsatisfactory)
Integration (best way to resolve conflicts; it means combination of
what is best in all view points, i.e, bringing about unity of conflict in
which both sides se a way out which will satisfy their real needs. It
resolves conflicts for good
FOR DETAILS ATTEND A CONFLICT MANAGEMENT CLASS

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Folletts views on Leadership

It is the role of the leader to educate and
train
The leader is responsible for integrative
unity
The great leader is one who is able to
integrate the experience of all and use it
for a common purpose
Leadership is not the product of position
but of knowledge
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Folletts views on Authority and

Responsibility
Authority belongs to the job and stays with
the job
An executive decision is an movement in a
process
Authority and responsibility go with
function

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Folletts views on Co-ordination

CONTROL , Follett, meant fact control
rather than human control, and central
control meant synthesis rather than
domination from the center
The four principles of organization at
which she finally arrived at provided for
the need of four kinds of coordination as
the basis of good management:
t Principles
88
4 principles of coordination
Coordination by direct contact of the responsible people
concerned. Ideas, ideals, goals and purposes can be
easily stated and understood through direct personal
contact and communication
Coordination should be achieved in early stages of
planning and policy-making. It would be easier to secure
the willing enthusiastic adherence of all concerned to any
new principles and policy if they have participated from
the beginning. For this principle Follett had suggested
cross relations between heads of departments instead of
up and down the line through the chief executive

t Principles
89
In coordination all factors in a situation are

reciprocally related
Coordination is a continuous process. It
means that coordination should be left to
chance and it is the duty of the coordinator
to strive for it constantly so that the efforts
of the group are directed towards
achieving the common goals
t Principles
90
Follett on PROFESSIONAL
MANAGEMENT
a.
b.
Management can develop as a profession on two bases:

Its recognition as a function of or service to the community
Application of an accepted and proven body of knowledge and
principles
Managers can become professional by working for long hours and thus
getting satisfaction from work.
According to her, a professional manager has three main jobs:
1.
2.
3.
S/he must be loyal to company

S/he must inform the public what are good practices and
standards (today it is called Corporate Governance) and
S/he must try to extend the boundaries of knowledge in his/her
profession and then pass on his/her extra knowledge for the
benefit of all.

t Principles
91
CHESTER I. BARNARD (18861961)

While Fayol developed the principles of management,
Barnard proved that such principles could be applied in
practice
He defined organization as : a system of consciously
coordinated activities or forces of two or more persons.
He believed people in organization contributed services
and not themselves
Barnard tried to analyze how organization functions as a
living body.
For him, to understand the small organization was to
understand the large organization because all
organizations possess certain common characteristics
t Principles
92
Elements of Organization
Willingness to cooperate
Common purpose and
Communication
Are the elements of an organization

t Principles
93
Equilibrium internal and external

Barnard firmly believe that an organization is separate
from the environment in which it operates
The person who contribute services to the orgs has two
distinct roles the personal role and the an
organizational role
He suggested that orgs must maintain internal and
external equilibrium
Internal equilibrium he meant: reward and satisfaction for
the participation; thus the balance between what
employees get out of work (money, status, reward, etc)
and what they contribute (time, worry, discomfort, etc)
must be maintained
The relationship of the org to the environment is not static
but functional
t Principles
94
Acceptance theory of authority

Barnard disagreed with the classical view that
authority transcends from top to bottom
He said that authority transcends from bottom to
top i.e. it is delegated upwards
Authority does not depend on commands, but on
a reciprocal relationship; a communication
becomes authoritative by virtue of its acceptance
by a contributor.
Thus AUTHORITY DEPENDS ON
COMMUNICATION
t Principles
95
1.
2.
3.
4.
A PERSON CAN AND WILL ACCEPT A

COMMUNICATION AS AUTHORITATIVE ONNLY
WHEN FOUR CONDITIONS ARE SIMULTANEOUSLY
FULFILLED:
S/HE can and does understand communication
At the time of his/her decision, he believes that it is not
inconsistent with the purpose of the organization
At the time of his/her decision, s/he believes it to be
compatible with his / her personal interest as a whole ,
and
s/he is able, mentally and physically, to comply with it.
t Principles
96
Zone of Indifference
Barnard developed the concept of zone of indifference.
He believed that the form and nature of the acceptance
of the communication differ and it depends upon the
zone of indifference
Certain orders are acceptable, certain barely acceptable,
and certain orders are unquestionable
Those orders which are unquestionably acceptable lie
within the zone of indifference, ie. They lie within the
range that in a general way was anticipated at the time
of undertaking the connection with their organization

t Principles
97
Barnards views on Incentives
a.
b.
c.
d.
e.
f.
g.
h.
Incentives are prerequisites of cooperation in any organization.

Barnard was of the view that people in the org do not work for
money alone. Some of the incentive types are:
Material or financial inducements
Personal opportunities, such as status, power, et
Good physical conditions
Attractiveness of social conditions
General conditions adapted or suitable to the individuals ideas
and attitudes
Opportunities for participation
Good communication and
Opportunities for satisfying perosnal motivation such as pride in
work, sense of adequacy, etc.

t Principles
98
Executive decisions and functions
a.
b.
c.
The executive who occupies a crucial position in the

organization has three basic functions. They are:
Maintaining org communication. It includes
determining the scheme of organization, fostering
loyalty in subordinates and maintaining the informal
system
Obtaining essential services from individuals: It
includes correct selection of individuals, and provision
of the necessary inducements, maintaining morale
(subjective feeling toward work), providing incentives
and sanctions, supervision and training
Formulating purposes and objectives at all levels
t Principles
99
Barnard on Communication
1.
2.
3.
4.
5.
6.
7.
Principles of Communication:
Channels of communication must be definitely known
by all
These channels must be formally laid down
Each channel should be as short as possible
Generally communication should go through all stages
in the channel
People acting as communication centers (managers)
should be adequate to their tasks
Channels of communications should not be interrupted
while the organization is functioning
Communications (orders) must come from points
where the necessary authority is known to exist
t Principles
100
Barnard on Leadership
The real test of the executive or manager
is leadership
Leaders should recognize that low
morality will not sustain leadership long

t Principles
101
Alfred P. Sloan (1875-1966)
Greatly responsible for the success of General Motors

Sloan regarded two factors as important for the success of a
business:
a.
Motivation through incentive compensation
b.
Opportunity through decentralization
He said that good management rests on a reconciliation of
centralization and decentralization or decentralization with
coordination control
Decentralization results in initiative, responsibility, development of
personnel, decisions close to facts, and flexibility.
Coordination results in efficiencies and economies
Authority and responsibility must be congruent and commensurate to
each other

t Principles
102
Sloans real partnership process

with his executives was done by
a.
b.
c.
d.
Utilizing their abilities to the full

A fair policy of promotion
Offering real incentives
By using persuasion rather than
command

t Principles
103
GM PLAN: IN 1920, INDICATES

HIS SEVERAL THOUGHTS
This plan was based on two principles:
a. Decentralization of operation and
b. Centralized staff services to advise the line on
specialized phases of the work, and central
measurement of results to check the exercise
of delegated authority
(staff function = support function; line function
= responsible for the earnings for the
corporation. Thus only line function is
SALES AND ALL OTHER FUNCTIONS
INCLUDING MARKETING ARE STAFF
FUNCTIONS.
t Principles
104
Points emphasized in the PLAN:

a. Relationship of various divisions of a
corporation with one another as well as with
the central organization
b. Status of central organization
c. Coordination of operations of the central
organization with the corporation as a whole
d. Centralization of control of all the executive
functions in the CEO
e. Limit on the number of executives reporting
directly to the President
t Principles
105
Sloans Principles of Organization

1.
2.
3.
Establishment, by the Board of Directors and its

committees, of uniform policies and procedures to
govern the overall operations of all divisions in any
area in which such consistency is judged to be
necessary for the best interests of the corporation as a
whole
Delegation of full authority, within this framework of
uniform policy and procedures, with corresponding
responsibility for the use of the authority so delegated
A continuous flow of ides and information upward and
downward through the management organization, by
means of executive visits, formal reports and frequent
meetings of line and staff executives at all appropriate
levels
t Principles
106
ABRAHAM H. MASLOW :THE

FATHER OF HUMAN
PSYCHOLOGY (1908-1970)
His need based theory of motivation,
published in 1943, laid foundation for
subsequent psychologists (Renis Likert,
Douglas McGregor, Fredrick Herzberg,
etc) to analyze human behavior

t Principles
107
Maslows Hierarchy of Needs
Self actualization
Self-esteem
Love, Affection & Social
Safety & Security
Stimulation
Physiological
t Principles
108
Frederick I. Herzberg a noted

behaviorist of USA (1923 His greatest contributions to management thought : his
Two-Factor Theory, Two-Human Needs Theory, KITA
concept, and illuminating ideas about job loading
(vertical and horizontal) ie is job enrichment
He assumes that the individual is the center of the workmanagerial situation
He said that if anything meaningful was to be found
about motivation, the question of factors-attitudes-effects
must be studied as a whole and not as an isolated item
He believed management is monolithic (huge, massive,
single stone like)

t Principles
109
MOTIVATION HYGIENE THEORY

Hygiene factors
MOTIVATORS
(Environment)
(the Job itself)
Policies and administration
Achievement
Supervision
Recognition for accomplishments
Working conditions
Challenging Work
Interpersonal relations
Increased responsibility
Money, status,
security
Growth and development

t Principles
110
Relationship between Maslows and

Herzbergs Theories to Motivation
SITUATION
MASLOW
MOTIVES
(NEEDS)
BEHAVIOR
GOAL
(INCENTIVES)
HERZBERG

t Principles
111
Douglas M. McGregor-(1906-1964;
a social psychologist)
THEORY X
THEORY Y
Work is inherently distasteful to most people
Work is as natural as play, if the conditions are

favorable
Most people are not ambitious, have little desire

for responsibility, and prefer to be directed
Self-control is often indispensable in achieving

organizational goals
Most people have little capacity for creativity in

solving organizational problems
The capacity for creativity in solving

organizational problems is widely distributed in
the population
Motivation occurs only at the psychological and

safety levels
Motivation occurs at the social, esteem, and selfactualization levels, as well as physiological and
security levels
Most people must be closely controlled and often

coerced to achieve organizational objectives
People can be self-directed and creative at work

if properly motivated

t Principles
112
David C. McClelland
Best known for his achievement
motivation, his research ranges from
personality to consciousness.
Along with John. W. Atkinson, he
developed the scoring system for the
THEMATIC APPERCEPTION TEST (TAT)
which was used in achievement motivation
research
t Principles
113
McCllellands need theory
Need for power

Need for Affiliation
Need for Achievement
Need for training

t Principles
114
Henry Mintzberg (1939 Well known luminary in the field of

management
Dubbed as ICONOCLAST as he
rejected several accepted management
practices
He is against the B-schools in USA their
curriculum, case study methods, etc.

t Principles
115
Contributions-The managerial roles

He grouped ten basic roles performed by
managers into three major classes ( as a
result of detailed research on the activities
of five practicing CEOs):
INTERPERSONAL ROLES
INFORMATIONAL ROLES
DECISIONAL ROLES
t Principles
116
Interpersonal roles
While performing interpersonal roles,

mangers work as:
1. Figureheads
performing number of routine duties of legal
or social nature; these duties include
handling ceremonies, signing documents
required by law, and officially receiving
visitors.
t Principles
117
Leaders
As leaders, the mangers perform all
managerial activities involving
subordinates including hiring, training and
firing. As leaders they are responsible for
motivation and direction of subordinates

t Principles
118
Liaison persons
Serving as liaison between outside contacts
(community, suppliers,, etc) and the
organization

t Principles
119
Informational roles
Mintzberg pointed out that managers
function as nerve centers in which they
obtain information about the environment
and their own organization by monitoring
them. The three informational roles are:
Monitor
Disseminator
spokesperson
t Principles
120
Montiors : As monitors, managers seek and are

presented with information about the operations for
which they are responsible and bout the environment
Disseminators: they are disseminators of information
flowing from both external and internal sources;
Managers pass information from outside their units to
inside and also from one subordinate to another
Spokesperson: mangers speak on behalf of their units to
outsiders. They transmit information to outsiders on
organizations plans, policies, actions and results and
serve as experts on organization's industry
THESE INFORMATIONAL ROLES PROVIDE A
COMMUNICATIONS NETWORK FOR THE
ORGANIZATION.
t Principles
121
Decisional roles
Four of them as per Mintzberg:
Entrepreneur
Disturbance handler
Resource allocator
negotiator

t Principles
122
As ENTREPRENUEURS : managers are initiators, innovators, problemdiscoverers and designers of improvement projects that direct and control
change in the organization. Thus, entrepreneurial work refers to mangers efforts
to improve the functioning and accomplishments of their organizations
As disturbance handler: managers take corrective action in response to

unforeseen problems such as resignation of subordinates, breakdown of
productive equipment, etc. It is worthwhile to mention that while entrepreneurs,
managers voluntarily take initiative to improve performance, as disturbance
handler
As resource allocator: they are responsible for allocating human, physical, and
monetary resources. MAKING DECISIONS ABOUT HOW LIMITED TIME,
MONEY, MATERISALS, LABOR HOURS AND OTHER RESOURCES WILL BE
APPLIED TO MULTIPLE AND COPETING CLAIMS UPON THEM IN THE
WORK OF RESOUCRCE ALLOCATION ROLE
Mangers as Negotiators: they discuss issues and bargain with other units to gain
advantages for their own units. Mintzberg opines : that negotiation is resource
trading in real-time.
t Principles
123
Relationship of Managerial roles

and process
ROLE
INTERPERSONAL
PORCESS
PLANNING
LEADING
INFORMATIONAL
ORGANIZIING
DECISIONAL
CONTROLLING

t Principles
124
PETER F. DRUCKER (1909-2005)

Austrian by birth
Numerous books around 35/36

Drucker is repeatedly preaching a philosophy of management, that
of management by objectives and self-control
He pleaded for creative management instead of bureaucratic
management
He said that managers should go beyond decentralization, and
design principles of taskforce team, simulated decentralization and
the systems organizations
Managers should learn to lead people rather than contain them
He said that the Innovative org the org that resists stagnation
rather than change is a major challenge to management
More and more organizations which are innovative and productive
for society, economy and the individuals should come up
His first line in practice of management The manager is the
dynamic, life-giving element in every business.
t Principles
125
Jobs of Management
According to Peter Drucker, management
has the following three tasks:
ECONOMIC PERFORMANCE
PRODUCTIVE WORK AND WORKER
ACHIEVEMENT
SOCIAL IMPACT AND SOCIAL
RESPONSIBILITIES
t Principles
126
Business objectives and

entrepreneurial functionsDrucker
There is only one valid definition of business
purpose : to create a customer
According to him, it is the customer who
determines what a business is. It is the
customer alone whose willingness to pay for a
good or for a service converts economic
resources into wealth, things into goods.
CONCEPT OF PROFIT AS THE OBJECT OF
BUSINESS
Profit is not the explanation, cause or rationale of
business behavior and business decisions but
the TETST OF THEIR VALIDITY.
t Principles
127
On Profit.Drucker
The profit motive and profit maximization are, in
his opinion, irrelevant in managing a business.
However, profits are necessary on account of
risk in business
Profit is the test of performance; it is premium for
the risk of uncertainty; profit alone can supply
capital for tomorrows jobs, profit pays for the
economic satisfaction and services of a society

t Principles
128
As the purpose of business is to create a

customer, the business enterprise has
two functions as under :
1. Marketing
2. Innovation
Rest is cost.

t Principles
129
Drucker on Objectives
Objectives are not fate; they are direction
They are not commands; they are
commitments
They do not determine the future; they are
means to mobilize the resources and
energies of the business for the making of
the future

t Principles
130
The following areas where objectives are to be set:

Marketing; Innovation; Human organization; Financial resources
Physical resources; Productivity; Social responsibility
Profit requirements
OBJECTIVES IN THESE AREAS ENABLE MANGERS TO :
A. ORGANIZE AND EXPLAIN THE WHOLE RANGE OF BUSINESS
PHENOMENA IN A SMALL NUMBER OF GENERAL STATEMENTS
B. TEST THESE STATEMENTS IN ACUTAL EXPERIENCE
C. PREDICT BEHAVIOR
D. APPRAISE THE SOUNDNESS OF DECISIONS WHILE THEY RE STILL
BEING MADE AND
E. ANALYZE THEIR EXPERIENCES AND THUS IMPROVE
PERFORMANCE

t Principles
131
MANAGEMENT BY OBJECTIVES
AND SELF-CONTROL
The concept is credited to Drucker and George
S.Odiorne.
The MBO is the central point of discussion in his
book The practice of Mangement-writes :
Management is not just a creature of the
economy; it is a creator as well. And only to the
extent to which it masters the economic
circumstances, and alters them by conscious,
directed action, does it really change. To
manage business means, therefore, to mange
by objectives.
t Principles
132
MBO is a managerial philosophy and

technique that attempts to draw on
peoples needs for achievement,
competence and anatomy by allowing
them to set their objectives, goals, and
performance criteria
This concept applies to employees at any
position
t Principles
133
Why MBO?
The specialized work of the manager
The hierarchy in organizations
The existence of difference in vision in
businesses
Such factors cause conflict and breakdown
in the organization and MBO overcomes
these deficiencies by relating the task for
each manager to the overall goals for he
company.
t Principles
134
WORK OF MANAGER
To set objectives
To organize ie. To analyze the activities,
decisions, and relations needed
To motivate and communicate
To analyze, appraise and measure
performance and
To develop people, including himself
t Principles
135
In 1950s, Druckers 7 tasks to be

performed by tomorrows manager
He must manage by objectives
He must take more risks and for a longer period
ahead
He must be able to make strategic decision
He msut be ableto build and integrated team
He must be able to communicate information
fast and clearly
He mustbe bale to see the business as a whole
and to integrate his function with it, and
He must be able to relate his product and
industry to the total environment
t Principles
136
Social responsibilities for

Management
The triple bottom line :
Economic profit (profit as by product in a
business process)
Social profit ( giving to the community)
Environmental profit (carbon trading, etc)

t Principles
137
Warren G. Bennis
Manager Characteristics
Leader Characteristics
Administers
Innovates
Focuses on systems and structure
Focuses on people
Relies on control
Inspires trust
Short range view
Long range perspective
Asks how and when
Asks what and why
Eye on the bottom line
Eye on the horizon
Imitates
Originates
Accepts status quo
Challenges the status quo
Classic good soldier
Own person
Does things right

Does the right thing
t Principles
138
Bennis four competencies of

leadership
Attention through vision
Meaning through communication
Trust through positioning being
predictable, making your position clear,
keeping at it, and
Positive self-regard

t Principles
139
Chris Argyris Immaturity-Maturity

model
Immaturity
Maturity
Passive
Active
Dependence
Independence
Behave in a few ways
Capable of behaving in many ways
Erratic shallow interests
Deeper and stronger interests
Short-time perspective
Long-time perspective (past and

future)
Subordinates position
Equal or superordinate position
Awareness and control over self

Lack of awareness of
self
t Principles
140
T- Groups
Also known as sensitivity training and
laboratory training. T-Group technique
had its genesis in the late 1940s, largely
as a result of work done by Kurt Lewin and
Ronald Lippitt. Argyris contributed to this
concept by making several clarifications
about it.

t Principles
141
Definition T-Group
T-Group is .a group experience
designed to provide maximum possible
opportunity to the individuals to expose
their behavior, give and receive feedback,
experiment with new behavior and
develop an everlasting awareness and
acceptance of self and others.

t Principles
142
Properties of Organizational
effectiveness
Properties leading to Ineffectiveness
Properties leading to effectiveness
One part or subset of parts, controls the whole
The whole is created and controlled through the

inter-relationship of the parts
Awareness only of random plurality of parts
Awareness of pattern among parts
Objectives related only or mainly to parts
Objectives related to the whole
Inability to influence core activities whether they

are internally or externally oriented
Ability to influence core activities whether they

are internally or externally oriented
Core activities only influenced by immediate

present
Core activities influenced by past, present and

future

t Principles
143
Argyris other contributions

Leadership
Intervention theory (OD)
Process consulting: Argyris and Edgar H.
Schein are regarded as chief developers
of the process consulting method

t Principles
144
Process consulting method

Process consulting regards groups such as
teams, task force, committees or project groups
as the basic building blocks of organization.
Process consulting deals with tasks, conflicts,
between members, work flows, and the
processes by which the group achieves its task
Process consulting analyzes the roles and
functions of group members, group problemsolving-methods, decision making, the
development of group norms, and the use of
leadership and authority
t Principles
145
Process consultingcontd
The process consultant examines the
processes at work among group members
by using devices such as questionnaires,
role playing session, coaching and
counseling methods, etc.

t Principles
146
Argyris 4 principles of
organization
Task specialization Individuals should
concentrate on a narrow range of task. It
increases human skills and output too
Chain of command (Hierarchy of authority)
Unity of direction Leaders must define and
direct the work of those under them
Span of control administrative efficiency is
increased if there is a limit to the number of
people a leader or supervisor can control
t Principles
147
William G. Ouchi
Ouchis main contribution to management
thought relates to Theory Z. Contrast
between Japanese and American
corporations leads to identification of the Z
theory

t Principles
148
Z theory
Japanese Corporation
American Corporation
Lifetime employment
Short-term employment
Slow evaluation and promotion
Rapid evaluation and promotion
Non-specialized career points
Specialized career points
Implicit control techniques
Explicit control techniques
Collective responsibility
Individual responsibility
Concern for the whole

organization
Concern for parts of the

organization

t Principles
149
Participative Management
Ouchi emphasized participative management and consensus

decision-making, if Theory Z is to work.
Social scientists have described this as a democratic process in
which may people are drawn into shaping of important decisions
The participative process is one of the mechanisms that provides for
the broad dissemination of information and values within the org,
and it also serves the symbolic role of signaling in a unmistakable
way the cooperative intent of the firm
Typically, Theory Z orgs devote a great deal of energy to developing
the interpersonal skills necessary to effective group decision making
In theory Z companies the decision making may be collective, but
the ultimate responsibility for decisions still resides in one individual

t Principles
150
Tom Peters Seven S Modeldeveloped for McKinsey & Co

Structure
Strategy
Superordi
nate
Goals
Skills
Staff
t Principles
Systems
Style
151
7-S framework for change
Structure refers to the organizational structure

Strategy is a plan or course of action leading to the allocation of a
firms scarce resources, over time, to reach identified goals
Systems consist of all the formal and informal procedures that allow
the organization to function
Style is the pattern of substantive and symbolic actions under taken
by top mangers
Staff is another factor. Successful organization view people as
valuable resources who should be carefully nurture, developed,
guarded and allocated.
Skills refer to those activities organizations do best and for which they
are known
Superordinate Goals referred to guiding concepts, values and
aspirations that unite an organization in some common purpose
TOM PETERS ADVOCATED : MBWA
t Principles
152
Tom Peters books
In search of Excellence
Passion for excellence
Thriving in chaos
And many others

t Principles
153
THANK YOU
CHEERS.

t Principles
154

Management Principles Aand Practices

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Management Principles Aand Practices

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MANAGEMENT PRINCIPLES

Dr.R. Krishna - Managemen

When it comes to manage people, it is

All is PEOPLE RESOURCE

Dr.R. Krishna - Managemen

Dr.R. Krishna - Managemen

Peter F. Drucker-Father of Modern

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The difference between Management Principles

Terry & Franklin

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Dr.R. Krishna - Managemen

Dr.R. Krishna - Managemen

Dr.R. Krishna - Managemen

ALL THE THREE ROLES PUT

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The whole management process is actually an

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Leading : management functions that involves motivating

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The pyramid to the top

Talk of management levels:

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Dr.R. Krishna - Managemen

Dr.R. Krishna - Managemen

THE ;LEADERSHIP GRID : Source: Scientific Methods

1,9 Country Club

Team Mgmt 9,9

Authority Compliance 9,1

CONCERN FOR PRODUCTION

How concerns for Production/People affect

9+9 : Paternalistic management :

THE MOTIVATIONAL DIMENSIONS FOR

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Dr.R. Krishna - Managemen

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Most important human activities is

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Evolution of Management Thought

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Schools of Management Thought

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Dr.R. Krishna - Managemen

Classical management theory

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Charles Babbage (1792-1871)

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Henry Metcalfe (1847-1917)

Henry Laurence Gantt (1816-1919)

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Task and Bonus Plan

Harrington Emerson (1853-1931)Popularizer of scientific

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Frank Bunker Gilbreth (1868-1924)

Lillian Moller Gilbreth:Professor of

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Contributions by Frank Gilbreth

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