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PRINCIPLES OF MANAGEMENT

DPB3013
Topic 1
Elements Of Management

Introduction To Management
Every organizations need to establish
several goals and objectives in order to
continue competing and existing in the
industry.
Good management practices are the
key in determining the success and
failure of an organization.

Definiton Of Management
In modern management, the term management can be
interpereted from several different aspect as a:
a) Process
b) Discipline
c) Individuals
d) Career
) Management as a process involves several work activities
and functions that must be followed and completed by
managers in order to achieve organizational goals.
Managers must use management principles to guide
them in carrying out the management process.

Management as a career refers the position or


rank of individual holdings the designation of
managers in the various level management along
their progression.
There are several definitions of management
established
by
various
management
gurus.
According to Certo (1997), management defined as
a process organizational resources.
Ivancevich et al.(1997) defined management as a
process to conducted by one or more individuals to
coordinate the work activities of employees,
capital, raw material and technology to achieve
results of high quality that might not achieved by
individuals working alone

Robert Owen ( 1771- 1858)


Stated that emphasis should be given towards employee
affair in terms of health, education, and the working
environment.

Charles Babbage ( 1792- 1871)


Known as the Father of Modern Computing
Also suggested the idea of profile sharing

Early Stage( before 1930)

Henry R. Towne ( 1844 1924)


Emphasized the important of
running an organization

management

skills

in

Classical Approach
A. Scientific Management Theory
) an approach that advocated that importance of conducting
scientific studies on working methods with the purpose or
improving employee efficiency.
Frederick W. Taylor ( 1856- 1915)
) as the Father of Scientific Management
) studied the relationship between employees and the jobs
designed to be performed by the employee
Frank Gilbreth ( 1868- 1924) and Lilian Gilbreth ( 1878- 1972)
) research of time and motion study
) The objectives of the study are:
. to analyse each work movement made by the employee
. To identify methods to perform a task and eliminate
unnecessary

Classic Organization Theory


Emphasizes the setting of guidelines and methods to manage a
complex organization
a) Henri Fayol ( 1841- 1925)
) As the Father of Modern Management
) Management consist of specific functions that must be followed by
each manager
) Every organization must be managed according to five management
functions :
i. planning
ii. organizing
iii. commanding
iv. coordinating
v. controlling

a) Max Weber ( 1864- 1920)


) introduced the Theory of Management Bureaucracy which
emphasized the formation of a management hierarchy
) Bureaucracy refers to a formal system that is formed in the
administration of an organization in order to create efficiency
and effectiveness in organizational operations

The Bureaucracy Adiministrative System is based on the


following five principles :
i.
Principle 1 : The managers authority is derived from the
mangers position in an organization
ii.

Principle 2 : Positions held by individuals are not based


on their social position

iii. Principle 3 : Positions jobs, authority, duties,


responsibilities, and the relationship between these
element must be explained in detail
iv. Principle 4 : The hierarchy of authority must be created
v.

Principle 5 : Implementation rules,norms, and standard


procedures

Administrative and Behavioral Approach


an alternative to the Classical Approach
can divided into two theories :
i.
human relations movement
ii. behavioral science theory
a) Human Relations Movement
) refer to ways managers interact with their employees
) based on a series of researches known as the Hawthorne
studies

Middle
Stage
(
1930-1945)
Hawthorne studies

i.
) conducted by Elton Mayo
) To investigate the behavioral and human aspects at
Hawthorne ( Chicago) Work at The Western Electric
Company

The Hawthorne Studies divided into two phases :


a) Relay Assembly Test Room Experiment
b) Bank Wiring Observation Room Experiment
Behavioral Science Theory
) Emphasized scientific research as the founds
understanding human behavior

for

a) Abraham Maslow ( 1908 1970 )


) Maslow was a famous psychologist and one or the
research in the Organization Behavior Approach
) Five human needs based on Maslows Hierarchy of
needs are as following :

Physiological Need
Need refers to the basic need that enables humans to stay
alive examples food, drinks, oxygen, clothing and sleep.
Safety needs
Required to protect human from dangerous threats to life
and to the body such as loss of jobs, food and shelter.
Social needs
Refer to an individuals desire to from friendship and gain
recognition from individuals, including giving and receiving
love.
Esteem needs
Apart from fulfilling the need of being accepted by other
people, human also like respected, appreciated and
honored.
Self- actualization
Located at the highest level in Maslows Hierarchy of need.
This need is an individuals desire to become a useful
person according to his ability to minimize potential and
achievie his dreams.

Present Approach (1945 to the present


Contemporary Approach is an innovative approach
management . There are two main theories in this approach.
I.

in

System theory

) Is based on assumption that the organization is a system


which comprises various division related to one another
but have one common goal.
ii.

Contingency theory

) The contingency theory emphasizes that every action taken


by a manager but must suit the situation. The contingency
theory is also known as a Situational Theory.

Managers
Definition of manager
Manager are the most expensive basic resources in most
businesses. Organizations generally take several years to from
a strong management team.
Characteristic of successful managers.
a) Practice open communication.
b) Set clear direction.
c) Establish objective recognition.
d) Provide guidance and support to employees.
e) Design and monitor a control system.
Responsibility of manager.
f) As a functional manager.
g) As a general manager.
h) As a project manager.

Management Levels
The levels of managers in an organization are as follows:

Managerial Skills
According to Robert L. Katz, managers are required to have
three types of skills to perform their duties effectively.
a. Technical skills
b. Human skills
c. Conceptual skills
) The roles of managers are to create interpersonal
relationships, to Disseminate information, and to make
decisions.
) In creating interpersonal relationship, the specific roles of
managers are as follows:
a) Figurehead
b) Leader
c) Public relation officer

In disseminating information,
roles managers are as follows:

the

specific

a) Observer
b) Disseminator information
c) Spokesperson
) In making decision, the specific roles of
managers :
a) Entrepreneur
b) Disturbance Handler
c) Resources Allocator
d) Negotiator.