Introduction to Management

Principles of Management
DIPAK KUMAR BHATTACHAYYA
A BACKDROP TO MANAGEMENT

An organization is made of a group of people with

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some specific goals, objectives, and activities.
Organization is also defined as the relations among
the components of a system.
Organization structure denotes the components and
relations that bind the people working within the
organization.

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 Question to the Class ?

It is often argued that management knowledge

is inbuilt and hence, it requires no formal study

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of theories and concepts.

Do you agree or disagree ?

Important to understand application-based management knowledge

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A BACKDROP TO MANAGEMENT
People issues encompass education, training, and
attitudes.

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Organization issues cover strategy, policy, culture,
and bureaucracy.

Technology issues encompass hardware, software,

telecommunications, and information systems.

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 History of Management

18th century – Period of Industrial Revolution in

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Europe .

-It became impractical to manage on the basis

of spontaneous participation in work

- Institutionalized Knowledge

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NATURE AND PROCESS OF
MANAGEMENT
Operationally, management can be defined as a

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dynamic process that helps to get things done,
through and with the efforts of people.

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DIMENSIONS OF MANAGEMENT
The definitions of management can be categorized
into different approaches according to their different
dimensions:

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Management
dimensions

Human- Decision-
Productivity Leadership Process
relations making
orientation orientation orientation
orientation orientation

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FUNCTIONS OF MANAGEMENT
Fayol (1949), the founder of modern management
theory, divided all the activities of an organization into
six groups:

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1. technical
2. commercial
3. financial
4. security
5. accounting
6. managerial
Principles are rules and guidelines, while elements are
functions of management.

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FUNCTIONS OF MANAGEMENT
(contd)
Fayol has grouped the elements into five managerial

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functions:
1. planning
2. organizing
3. commanding
4. coordinating
5. controlling

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FUNCTIONS OF MANAGEMENT
(contd)
Another way of describing the functions of
management is to consider them as a series of

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interrelated functions constituting a process.

Functions of
management

Planning Organizing Staffing Leading Coordinating Controlling

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CHARACTERISTICS OF
MANAGEMENT
The following are certain important features of the
discipline of management:

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• Management is - Organized activities
• Management is - Aligned with organizational
objectives- MBO- KRA/KPA- SMART GOALS
• Management- Optimizes constraining resources
• Management- Works with and through people
• Management is - Decision making
• Management is - Science as well as an art – effective
application of management is an art

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CHARACTERISTICS OF
MANAGEMENT (contd)
• Management is - Universal

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• Management is -Intangible
• Management is - an interdisciplinary approach
• Management is - a social process
• Management is - a system of authority
• Management is - dynamic
• Management is -principles are relative and not
absolute
• Management is - a profession
• Management is - a strategic function

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SIGNIFICANCE OF MANAGEMENT
Management is important due to the following
reasons:

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• It optimizes use of scarce resources
• It ensures effective leadership and motivation
• It promotes harmony among industrial relations
• It facilitates the achievement of goals
• It facilitates change and growth
• It enhances the quality of life
• It improves productivity
• It contributes to organizational competitiveness
• It develops professionalism
• It contributes to organizational growth
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DIFFERENT APPROACHES TO
MANAGEMENT
Scientific
management
approach

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Classical Administrative At the time of Industrial
Revolution and World War – 1
approach approach

Bureaucratic
approach

Behavioural
History of
sciences
management
approach At the time of Great Depression
and World War – 2

Neo-classical Quantitative
approach approach

Apollo 11 lands on the moon

Modern Contingency
approach approach Principles of Management
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MODERN APPROACHES

Modern
approaches

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Quantitative Systems
Contingency
school of theory
theory
thought approach

Management
Management Operations
information
science management
systems
approach approach
approach

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CONTEMPORARY SCHOOL OF
MANAGEMENT THOUGHT
The contemporary school of management thought

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provides a framework of management practices
based on more recent trends like globalization, theory
Z concepts, McKinsey’s 7-S approach, excellence
models, and productivity and quality issues.

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CONTEMPORARY SCHOOL OF
MANAGEMENT THOUGHT (contd)
McKinsey’s 7-S framework developed by T. J. Peters
and R. H. Waterman (1982) identified seven

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independent organizational factors that need to be
managed by today’s managers:

1. Strategy
2. Structure
3. Systems
4. Staff
5. Style
6. Superordinate goals (shared vision)
7. Skill
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CONTEMPORARY SCHOOL OF
MANAGEMENT THOUGHT (contd)

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McKinsey’s 7-S Model Principles of Management
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DIFFERENT TYPES OF
MANAGEMENT PRACTICES

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MANAGEMENT BY OBJECTIVES

When objectives are set in a systematic manner,

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consciously directed towards effective and efficient
achievement of organizational and individual targets,
it is known as management by objectives (MBO).

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CHARACTERISTICS OF
EXCELLENT ORGANIZATIONS

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MANAGERIAL ROLES
Managerial roles denote position-specific behavioural
patterns of managers.

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Mintzberg’s Managerial Roles Principles of Management
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MANAGERIAL SKILLS AND
COMPETENCIES
Skill can be categorized as either generic or technical,
or entry-level or advanced. Conventionally,

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skill can be defined as the amount of knowledge or
attributes deemed vital to organizational success.
There are four general types of skills:

1. Technical
2. Supervisory
3. Interpersonal
4. General business

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SKILLS INVENTORIES

A skills inventory is a device for pinpointing

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information about individuals and their suitability for
different jobs.

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MULTI-SKILLING

Multi-skilling is the process of training employees in

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specific skills that cross the traditional trade-specific
or craft-specific skill sets.

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COMPETENCIES

Competencies are sets of behaviours that encompass

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skills, knowledge, abilities, and attributes.

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