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Principles of Management
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Principles of Management
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NAGE! Definitions : Frederick W Taylor _ “Management has been defined as the art of knowing what you want to do and seeing that itis done in the best and cheapest way.” Stanley Vance (From the point of view of decision making) “Management is the process of decision making and control over the action of human beings for the ‘expressed purpose of attaining pre-determined goals.” Lawrence Appl orientation) “It is the accomplishment of results through the efforts of other people.” Harold Koontz “Management is the art of getting things done through and with people in formally organized groups.” John Mee “Management is the art of securing maximum results with minimum effort so as to secure maximum prosperity and happiness for both employer and employee and Biving the public the best possible service.” ley (From the view point of people Finally Management is a process of effective utilization of human and other resources to achieve the stated ‘organizational objectives. Management is_a_process consisting of management functions i.e. Planning, Organising, Staffing, Directing and Controlling. Management is for what To achieve the organizational objectives like: ‘To eam profits To provide Goods and Services desired by customer, To provide Goods and Services with Quality. For satisfaction of all ie. Employees, Customers, Govt. and other parties like suppliers, distributors etc. How to achieve objectives , By effective utilization of resources i.e. 6M’s (Men & Women, Materials, Machines, Methods, Money and Market) MANAGEMENT FUNCTIONS jing: Determining the objectives of the activity Planning aking Decisions & Policies for the activites. ising : Identification of activities or processes. Oren Grouping of similar activities. Creation of Departments. Delegation of Authority and Responsibilities. Establishment of relationships. wel Staffing: Man power Planning Employment of personnel Training, Appraisal, Remuneration etc, Directing : Inter personnel Relationships. Supervision, Guidance & Support. Communication with subordinates. Providing Leadership, Motivation of employees. Controlting : Comparing the actual performance with the planned & standards Taking regular and timely corrective action of MANA NT |, Management is a continuous process unless its objectives are not achieved. 2. Itis a human activity, where human beings plan, implement and control the activities 3. Management is an integrative force ie. it binds together the different elements of the organisat 4. Iisa social process ic. itis done by the people, through people and for the people. 5. Management is required at all levels of the organisation (Top, Middle and Lower Level) with difference of nature and authority 6. It is a dynamic activity which is continuously Performed to update the organisation for ‘changing environment. 7. Management is getting the things done. It always promotes to perform tasks as and when required. 8. Management is intangible ic. it can not be seen but can be felt inthe form of their results. 9. Management is a combination of both science and an art ' 10, Management isa profession. Importan ENT 1. Itmakes people realize the objectives and directs their efforts to achieve them, 2. It helps in utilizing the various resources optimally. 3. It helps in reducing the cost and enables organisations to face competition. 4. It provides efficient and smooth running of business processes. 5. Ithelps in generation of new ideas and methods to tackle day-to-day problems, 6. It helps in moulding organisations in changing ‘environment. 7. It provides a concrete system to forecast future ‘opportunities and threats and thereby prepare ‘organisation for all outcomes. Page | of 4 iiiesseieesMANAGEI r M ment as ience Use of Scientific Methods : Management possesses a systematised body of knowledge and uses scientific methods in its processes. As a Social Science: Management deals with the behaviour of the people in the ‘organsiations, which is very complex and difficult to deal in a controlled environment. Cause and Effect Relationship: likewise the concept of science especially Physics or Chemistry, Management concepts are also applied with definite results as and when required. Proper verification of _ principles: Management principles are developed after a long period of research and observations and are thereby proved & verified. Reliability: Its results are uniform & reliable depending upon the circumstances. It provides a reliable basis for predicting future events. Management as an At Personal skills and ~—_knowledge management makes use of Personal skills and knowledge in solving many complicated problems to achieve the organizational objectives. Practical knowledge: Management does not merely a theoretical concept. It is concerned with application of knowledge which makes iteffective and useful. Art of decision making: A-management professional regularly practicize the Art of decision making. Creativity: Management itself is one of the most creative Arts as it is concerned with getting work done through others by motivating them to work and coordit their activities. Discretionary Role: As an Artist, uses his ‘own wish and choice to prepare an Art, also Management professionals always requires certain discretionary powers to choose the way or method, time and people for getting the things done effectively. 1 Page 2 of 4 Systematic Knowledge: Management provides systematic knowledge and formal training to its individuals Ethical code of conduct: Management professionals are required to adopt an ethical behaviour & code of conduct for appealing and convincing others. Attitude: Management professionals always have an attitude to take things or issues in a positive & professional manner with proper utilization of resources to provide better results. Recognition: Society always recognize the status of managers in an organization as a respectable person as they provides solutions to every problem and also produce units to benefit the society. Competition: Increasing competition in the business would also leads to involve more and ‘more management professionals. in the organization in different roles and processes. Professional characteristics: Management professionals have knowledge, positive attitude, competent application, self control and social responsibility which recognize their job as a profession. it Vs. istration . ‘Are Separate functions: Management means to manage and implement, while administration meant to administer i.e. plan and control. Administration is one step ahead of management. Administration pre-determines the specific goals. It is a policy making function, While management is an executive function, which is primarily concemed with carrying out the policies laid down by the administration, Are. synonymous: All organizations requires planning, organizing, staffing, directing and controlling. A manager or an administrator both has to perform these functi ‘According 10 Keith Davis management is divided into three levels. Top level Management performs Administrative functions. Middle level performs implementation and control and lower level management is meant for only implementation (Operational Management).ON Managerial Skills, Conceptual skills: I isthe activity Levels of Management ‘Top Management : It consist of Boant of Directors, Chairman, Chief Executive Olficer, Managing Dircetor and | a. To see or review the organization as a whole. Other Distr 'b. Having broad knowledge and skills ‘unetions: ¢. To recognize inter relationship among. differen ‘a. Todetermine the objectives functions. ‘em " 1b. Setting up an organizational framework 4d. To review the functions involved in the organization, Framing policies and making plans to achieve organizational objectives. 4. To work as a bridge between internal and external environment. ‘&.Providing overall leadership £_Excersizing effective measures to overall control Middle Management: It consists of Departmental Heads, Branch Managers, Superintendents ete. Functions: Interpreting the policies framed by Top Management. Lower Selecting suitable operative & supervisory personnel. to achieve higher Coordinating with other department to ensure smooth running of organization, Compiling and issuing instructions to supervisors under their control. Reporting the feedback to the Top Management. Collecting the information and reports on performances. Making recommendations to top management for better implementation of plans & policies. Management: It consist of Foreman, Supervisors, Sales Officer, Finance and Account Officer, HR Officer etc. Functions: a b © a © £ ‘Management Levels i To issue orders and instructions to the workers and ccontrol their functioning. To plan the activities oftheir section and assign job to the worker. ‘To provide on-the-job training. To solve problems of the subordinate. Maintain good human relations ‘Act as Liaison Officer between middle management and employees. ¥ Top ening | = = Middle Lower | —| —— ‘Managerial functions. ce. To plan for various activities and formulate strategies. f. Making decision hased om circumstances in the best interest ofthe organization. To conceptualize, which requires imagination, broad knowledge, mental capacity to conceive abstract ideas. ills: isthe ability ‘a, To work with others and to win cooperation from people in the work group b. Toeffectively communicate the message. €. Toresolve conflicts 4. To motivate employees e. To provide effective leadership f. To understand the problems of others. “Technical Skills: I consists of ‘a, Proficiency in technical knowledge and skills b. Instant solution to the day to day problems — troubleshooting. €. Ability to conduct various processes on its own. ‘d._ Guide and support on technical points to subordinate. iS [4 = wide | Croranaton ana aa ieee i = Laser 5 3 a ie ‘Characteristics of Quality Managers Education: Manager must be well educated having specific education in management or administration with a sense of estimating business environment. ‘Training: Managers must acquire skills through in the branch of management where he is working. Intelligence: A managers should have higher level of intelligence then an average human being. They should ave the ability to think scientifically and analyze the problems accurately Leadership: Managers supposed to provide guidance and leadership to their subordinate, they should be able to utilize their subordinate effectively in the best interest of organization, Foresight: A good manager should have an open mi and be receptive to new ideas. He should be able to foresee the problems and can pre-mature formulate its solution, Maturity: A good manager should be emotionally ‘matured and have balanced temperament. He should have igh frustration tolerance ete. ‘Technical Knowledge: A managers should have sufficient Knowledge of technique of production so that he can involve himself in the production process also. Human Attitude: A good manager should try to develop ship and treat their subordinate as human ing, ‘A. manager should be able 10 take analysis.ON Scientific Management By Frederick Winslow Taylor Scientific Management is the process of directing human efforts which employ scientific methods in making observation, measurement, experimentation and generating inference. According to F. W Taylor also called father of Scientific Management “Scientific management means knowing exactly what you want men to do and seeing that they do it in the best and the cheapest way” Obiectives of Scientific Management - Avoidance of wastage of resources, time 2. People should be selected and trained in accordance with the requirements of the jobs. 3. The interest of employer and the employees should be fully harmonized to create mutual benefit relationship. The aim of both management and workers should be to maximize output. 4. Management should decide the method of work, working conditions, time of completion instead of leaving them at the discretion of workers. and method of production. Techniques of _Scientific_Management 2. Ensuring a regular supply of goods to Techniques recommended by the Taylor are customers at reasonable price. a) Scientific Work Study 3. Betterment in quality of products through continuous research and quality control. 4. Accelerate the rate of production by standard tools and techniques and equipments. 5. Decrease in the cost of production by systematic planning and cost control techniques. 6. Setting up a sound system of wage payment to attain maximum employce efficiency. 7. Placing right person at right job through scientific selection and training. Scientific Management stresses on 1. Scientific study and analysis of different units of the business. 2. Scientific study of different methods of doing a work. 3. Scientific selection of workers. 4. Determination of the most efficient unit of the work. 5. Determination of standards based on scientific approach and analysis. 6. Determination of speed or pace in order to achieve the goals. Principles of Scientific agement 1. Conducting the scientific study and analysis of each element of a job. Page | of 2 i) Method Study: In this study, the entire production process is studied to improve plant layout, product design, material handling and to reduce time and efforts involved in the process. ii) Motion Study: It includes the study of movement of an operator in performing an operation for the purpose of eliminating useless motions. iii) Time Study: This involves the estimation of standard time required to complete an operation. iv) Fatigue Study: This study indicates that the workers feel tired after putting on the work over a period of time and after that they are not able to work with their full capacity. It recommends the relax time and its frequency at appropriate intervals during a working day. b) Scientific Task Planning i) Routing: It specifies the route that a raw material should follow before its conversion into finished material. ii) Scheduling: It is the timetable of operation with their priority to ensure the completion of each operation at the right time.iii) Dispatching: It involves assembling of necessary resources, job assignment, supervision, coordinating activities and issuing instructions to start a work ete, iv) Follow Up: It involves checking of work and taking corrective measures to ensure the completion of work at right time in right time and at a right cost. ©) Scientific Selection and Training: It includes Systematic selection of workers according to the pature and the requirement of job. Its objective is f0 select and place right person at right job. 4) Standardization: It is a process of fixing tested standards or norms with a view to maximize efficiency of work. Taylor suggested Standardization of methods, tools & equipments and even working conditions, ) Differential Piece Wage System: Taylor Suggested the use of Differential Piece Wage System (Incentive system) in order to motivate workers to produce maximum quantity of output. f) Functional Foremanship: Under this scheme, planning and execution are separated from each other and each worker is supervised by different experts in different phases. It avoids the system of one foreman over a number of workers. Taylor advocated the appointment of eight foremen, four of them in the office responsible for planning and other four with the execution of work. These are a) Route clerk specifies the sequence or path that each operation is to follow to complete a job. b) Instruction card clerk prepares detailed instructions over which workers are to perform the jobs. ¢) Time and cost clerk frames the timetable for various jobs and maintains the record of cost of work, 4) Shop Disciplinarian enforces the discipline among the workers. ) Gang Boss is concemed with all the preliminary work before the actual operation. f) Speed boss is responsible for ensuring that the work is done well in time. g) Repair Boss ensures that each worker keep his machine clean and free from dust with proper oiling, h) Inspector has the responsibility to check that the work done is upto the standards of quality laid down by the planning department. Mental Revolution: It involves the change in attitude of both the management and the workers. Scientific Management seeks to bring about the Prosperity of both the management and the workers. According to Taylor, the Scientific management would be fruitless until and unless there is a complete mental revolution on the part of both the management and the workers as to their outlook and attitude towards one another. Benefits of Scientific Management 1. Establishment of harmonious relationship between management and workers. 2. Detailed instructions and constant guidance to the workers. 3. Proper selection and training of the workers, 4. Standardisation of tools, equipments and work methods. 5. Applying scientific techniques for each element of man’s work. a ism of Scientific Management: 1. The concept of functional foreman is not feasible in practice as it violates the principle of unity of command, Trade unionist opposed the Scientific Management principles on the grounds that the wages of the workers were not increased in direct. proportion of the productivity increase. 3. The principle of Scientific Management except production is not applicable to other aspects of management like finance, marketing, accounting and personnel. 2. Page 2 of 2 ON
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