Note for Principles and Practices of Management - PPM By Mrityunjoy Saha
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Principles & Practices of Management (HU-511) HANDOUT 1 PRINCIPLES OF MANAGEMENT There are many definitions of management but most perceptive managers are convinced that it is an organized effort of people whose purpose is to achieve the objectives and goals of an organization. Management as a “Process” McFarland defines management as “A process by which managers create, direct, maintain and operate purposive organization through systematic, coordinated, cooperative human efforts”. An important tern in this definition is “Process”. This term emphasis the dynamic or ongoing nature of management, an activity over varying span of time. The dynamic nature implies that change is reality of organizational life. In managing organizations, managers create changes adopt organizations to changes and implement changes successfully in their organizations. Businesses fail and become bankrupt because managers fail in their attempt to cope with the change. Management as a “Function” There are those who view management as a function rather than a process. Dunn, Stephens and Kelly contend that “Management is a role which includes a set of duties, responsibilities, and relationships-involved in work organizations”. These duties and responsibilities constitute the function a manager performs. The duties and responsibilities a manager performs are quite different from those performed by managerial employees. Management as “coordination” Donally, Gibson and Ivancevich also support the view of management as a process but their stress in more on co-ordination. According to them, “Management is a process by which individual and group effort is coordinated towards group goals”. In order to achieve goals, coordination is essential and management involves securing and maintaining this coordination. A comprehensive definition of Management In mid 1940s, academic people from various business schools in the United States gathered together with the sole purpose of deciding whether a definition of management could be written that businessmen would accept and practice and academicians would teach. Ultimately they came up with the fallowing definition. No individual is identified with this definition. The definition reads as follows: “Management is guiding human and physical resources into a dynamic organization units that attain their objectives to the satisfaction of those served and with the high degree of moral and sense of attainment on the part of those rendering the services”. What is Management? Management is a vital aspect of the economic life of man, which is an organized group activity. A central directing and controlling agency is indispensable for a business concern. The productive resources – material, 1 ME: Semester V
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Principles & Practices of Management (HU-511) HANDOUT 1 labour, capital etc. are entrusted to the organizing skill, administrative ability and enterprising initiative of the management. Thus, management provides leadership to a business enterprise. Without able managers and effective managerial leadership the resources of production remain merely resources and never become production. Under competitive economy and ever-changing environment the quality and performance of managers determine both the survival as well as success of any business enterprise. Management occupies such an important place in the modern world that the welfare of the people and the destiny of the country are very much influenced by it. “Management is the art of securing maximum results with the minimum of efforts so as to get maximum prosperity and happiness for both employer and employee and give public the best possible service”. In a nutshell, management can be summed up in the following figure: Necessity of Management Management is an essential activity of all organizational level (Low, middle, and upper level). Management applies to: (i) Small and large Organizations. (ii) Profit and non-profit Organization. (iii) Manufacturing Organization. (iv) Service rendering Organization. Manager Manager is also known as leader and administrative, Manager is a person who under take the tasks and function of managing at any level, in any kind of enterprise. 2 ME: Semester V
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Principles & Practices of Management (HU-511) HANDOUT 1 Managerial Skills There are four skills of managers are expected to have ability of: Technical skills: Technical skills that reflect both an understanding of and a proficiency in a specialized field. For example, a manager may have technical skills in accounting, finance, engineering, manufacturing, or computer science. Human Skills: Human skills are skills associated with manager’s ability to work well with others, both as a member of a group and as a leader who gets things done through other. Concept Skills: Conceptual skills related to the ability to visualize the organization as a whole, discern interrelationships among organizational parts, and understand how the organization fits into the wider context of the industry, community, and world. Conceptual skills, coupled with technical skills, human skills and knowledge base, are important ingredients in organizational performance. Design Skills: It is the ability to solve the problems in ways that will benefit the enterprise. Managers must be able to solve the problems. The Function of Managers: There are five functions of managers: Planning, Organizing, Staffing, Leading, and Controlling. The functions of managers provide a useful structure for organizing management knowledge. Planning: Planning involves selecting missions and objectives and the action to achieve them it requires decision making, that choosing future courses of action from among alternatives. There are five types of planning: 1. Missions and objectives; 2. Strategies and polices; 3. Procedures and rules; 4. Programs; 5. Budgets. Organizing: Organizing is the part of managing that involves establishing an intentional structure of roles for people to fill in an organization. The purpose of an organization structure is to creating an environment helpful for human performance. It is then management tools and not an end. Although the structure must define the task to be done, the rules so established must also be designed in the light of the abilities and motivations of the people available designing an effective organization structure is not an easy managerial task. Many problems arises in making structures fit situations. Staffing: Staffing involves filling and keeping filled, the positions in the organization. This is done by identifying the work force requirement inventorying the people available and recruiting, selecting, placing, promoting, appraising, planning the careers, compensating and training. Leading: Leading is influence people so that they will contribute to organization and group goals. All managers would agree that most problems arises from peoples desires and problems , their behaviour as individuals and in groups and that effective managers also need to be effective leaders. Leading involves motivation, leadership styles and approaches and communications. Controlling: Controlling is measuring and correcting individuals and organizational performance. It involves measuring performance against goals and plans, showing where the deviations from standards exit and helping to correct them. In short controlling facilitates the accomplishment of plans. Controll activity generally relate to the measurement of achievement. Some means of controlling like the budget for expenses, inspection, record of labours-hours lost, are generally familiar. Each shows whether plans are working out. 3 ME: Semester V
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Principles & Practices of Management (HU-511) HANDOUT 2 DIFFERENT SCHOOLS OF MANAGEMENT THOUGHTS This handout is an overview of four important areas of management theory: Frederick Taylor's Scientific Management, Elton Mayo's Hawthorne Works experiments and the human relations movement, Max Weber's idealized bureaucracy, and Henri Fayol's views on administration. It will provide a general description of each of these management theories together with observations on the environment in which these theories were applied and the successes that they achieved. Frederick Taylor - Scientific Management Frederick Taylor, with his theories of Scientific Management, started the era of modern management. In the late nineteenth and early twentieth century, Frederick Taylor was decrying the “awkward, inefficient, or ill-directed movements of men" as a national loss. He advocated a change from the old system of personal management to a new system of scientific management. Under personal management, a captain of industry was expected to be personally brilliant. Taylor claimed that a group of ordinary men, following a scientific method would outperform the older "personally brilliant" captains of industry. In 1911, Frederick Winslow Taylor published his work, The Principles of Scientific Management, in which he described how the application of the scientific method to the management of workers greatly could improve productivity. Scientific management methods called for optimizing the way that tasks were performed and simplifying the jobs enough so that workers could be trained to perform their specialized sequence of motions in the one "best" way. Prior to scientific management, work was performed by skilled craftsmen who had learned their jobs in lengthy apprenticeships. They made their own decisions about how their job was to be performed. Scientific management took away much of this autonomy and converted skilled crafts into a series of simplified jobs that could be performed by unskilled workers who easily could be trained for the tasks. Taylor became interested in improving worker productivity early in his career when he observed gross inefficiencies during his contact with steel workers. Soldiering Working in the steel industry, Taylor had observed the phenomenon of workers' purposely operating well below their capacity, that is, soldiering. He attributed soldiering to three causes: 1. The almost universally held belief among workers that if they became more productive, fewer of them would be needed and jobs would be eliminated. 2. Non-incentive wage systems encourage low productivity if the employee will receive the same pay regardless of how much is produced, assuming the employee can convince the employer that the slow pace really is a good pace for the job. Employees take great care never to work at a good pace for fear that this faster pace would become the new standard. If employees are paid by the quantity they produce, they fear that management will decrease their per-unit pay if the quantity increases. 3. Workers waste much of their effort by relying on rule-of-thumb methods rather than on optimal work methods that can be determined by scientific study of the task. 1 ME: Semester V
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