TOPIC FOR THE CLASS: COMPUTER SCIENCE

UNIT 5: INTRODUCTION TO MANAGEMENT

PRINCIPLES
DATE & TIME :

K sankara narayana
Assistant Professor
Department of Mechanical
GITAM Institute of Technology (GIT)
Visakhapatnam – 530045
Email: [email protected]

Department of CSE, GIT

EHS 301 and ENGINEERING ECONOMICS AND MANAGEMENT
SYLLABUS OF MODULE 5

• Definitions
• Management Process
MANAGEMENT • Principles of Management
PRINCIPLES • Management Theories
• Nature of management

• Definition and Principles

• Factors and Styles
LEADERSHIP • Theories

Department of CSE, GIT

EHS 301 and ENGINEERING ECONOMICS AND MANAGEMENT
LEARNING OBJECTIVES

1
• Definition of Management

2
• Management theories
• Management/Managerial
3 functions
4
• Principles of management

Department of CSE, GIT

EHS 301 and ENGINEERING ECONOMICS AND MANAGEMENT
What is Management?
“Coordinating the plans, organizing activities
and controlling them for achieving a specific
task.

What is Necessity of
TillManagement
20 centaury, managers were said “to be Born” but “not be Made”.
th

Later, the process of management with rules and regulation for proper utilization
of resources were felt, for:
a. Proper planning.
b. Organizing.
c. Directing.
d. Controlling.
Hence, people from different streams are brought together to formalize the management
theories.

Need and Steps in Controlling Process

a. Measure progress and Establish Standards.
b. Uncover the Deviations due to changes, complexity, delegations etc.
c. Corrective actions.
Department of CSE, GIT
EHS 301 and ENGINEERING ECONOMICS AND MANAGEMENT
 Types of Managements
Theories

Based on Based on Based on

Classical Neo-classical Modern Classical
Approach Approach Approach
Classical Management
TheTheory
Classical Management Theory is based on the Scientific management and
Operational/Administrative management.
Henri Fayol is the father of Administrative/Operational/Function oriented classical theory, which is
based on something traditionally accepted, like organizational problems viewed from the top level.
F. W. Taylor is the father of scientific classical theory, based on the facts data and analyzing
them.

Neo-Classical Management Theory

The Neo-Classical Management Theory is developed, based on the human relations, Social systems,
decision theory and Management science.

Modern Classical Management Theory

The Modern Classical Management Theory is developed, based on the System approach and Contingency
Approach.
System Approach is based on the system of working environment of any complex organization.
Contingency Approach is an extension of system approach and suggests that organization
should be tailor made.
Department of CSE, GIT
EHS 301 and ENGINEERING ECONOMICS AND MANAGEMENT
 Definitions of
Management

Based on Based on Based on

People Based on Based on
Based on Decision Leadership Generalizati
(Personal Function
Efficiency Making oriented on
managemen Oriented
(Definitions by (Definitions (Definitions (Definitions
t (Definition
F.W. Taylor, by by by
(Definitions by s by
John.F. Mee) Stanley William George
Lawrence A. Dalton E.
Vance) McFarlan Spreigel, R.Terry)
Appley, R.C.Davis)
Harold d, Henry
Koontz) Fayol)

Management by Frederick W. Taylor, 1911

“Management is the art of knowing, what you want to do and then seeing that is
done in the best and cheapest way”.

Management by John F. Mee, 1974

“Management is the art of securing maximum results with minimum effort”.

Management by Stanley Vance

“Management is simply process of decision making and control over the action
of human beings for the expressed purpose of attaining pre-determined goals”.

Management by Lawrence A. Appley

“Management is accomplishment of results through the efforts of the other
people”.
Department of CSE, GIT
EHS 301 and ENGINEERING ECONOMICS AND MANAGEMENT
 Management by Harold Koontz
“Management is the art of getting things done through
and with people in formally organized groups”.

Management by Dalton E. McFarland

“Management defined as conceptual, theoretical and analytical purposes
as that process by which managers create, direct, maintain and operative
purposive organization through systematic, coordinated, co-operative
human effort”.
Management by Henry Fayol
“Management is to forecast and to plan, to organize, to coordinate and to
control”.
Management by William Spreigel
“Management is function of an enterprise which concern itself with
direction and control of various activities to attain the business
objective”.
Management by R.C. Davis
“Management is the function of executive leadership anywhere”.

Management by George R. Terry

“Management defined as a process consisting of planning, organizing,
actuating and controlling performed activities, to determine and
accomplish the objectives by use of people and resources”.
Department of CSE, GIT
EHS 301 and ENGINEERING ECONOMICS AND MANAGEMENT
 Nature of
Management

Management
Management Management
as a
as an Art as a Science
Profession
Management as an “Art”
According to Mary Parker Follet, “Management is an art (i.e. application of
knowledge, practice and creativity) of getting things done through people”.
E.g: Musicians, Painters, Doctors etc
Management as a “Science”
“Management is a science (i.e. knowledge in a systematic way by obtaining
empirical data, analyze, conclude and communicable) that develops
mathematical models for decision making and also generates some
hypothesis (termed as “Management Principles”) based on variables, their
relations and their effects”. E.g: Decisions taken by a manager.
Management as a “Profession”
“Management is a Profession with well defined body of knowledge,
restricted entry based on professional education, professional association for
practicing and developing, service motive for handling the clients through
commitment and formalized methods of acquiring training and experience,
that shows its creativity with some ethics and social responsibilities”.
Department of CSE, GIT
EHS 301 and ENGINEERING ECONOMICS AND MANAGEMENT
MANAGEMENT OR MANAGERIAL
FUNCTIONS
Henri Fayol observed organizational problems in view from the top
level & divide them into 6 categories, like technical, commercial,
financial, security, accounting and Managerial.
He noted that managerial activities consists of:
1. Forecasting and Planning.
 Forecasting, Formulation of Objectives, Policies, Programs, Schedules,
Procedures & Budgets
2. Organizing
 Identification & grouping of activities, Delegation of responsibilities & authority,
Establishment of shipping
3. Staffing
 Selection, Communication, participation, Appraisal, Counseling, Training,
Compensation, Dismissal
4. Directing or Actuating
 Motivation, Communication, Leadership, Supervision
5. Controlling
 Standard laying, Measurement of work, Interpretation, Corrective
action
6. Innovations and Representations
Managerial Functions given by Luther Gulik as “POSDCORB”,
P-Planning, O-Organizing, S-Staffing, D-Directing, Co-
Coordinating, R-Reporting, B-Budgeting.

Department of CSE, GIT

EHS 301 and ENGINEERING ECONOMICS AND MANAGEMENT
MANAGEMENT PROCESS
In any business or enterprise, the process of management
functions will be to first plan, then organize, then actuate it and
control it.
when expected efficiency is not obtained, then re-cycle
the process.
Planning
It is a function that determines in advance, what should be done and
is a process for deciding business objective and charting out the
methods of attaining those objectives

Organizi
ng
It is the managers coordination of human and resources of the organization for functioning.
According to ALLEN: “Organizing is a structure which results from identifying,
grouping work, defining, delegating responsibilities and authority and establishing
relationship”.
Directing/Actuating
Do the procedures explained by the manager

Controlling
Verifying whether the things are going as per the plans or not (i.e. according to adopted
instructions issued and principles)

Department of CSE, GIT

EHS 301 and ENGINEERING ECONOMICS AND MANAGEMENT
MANAGEMENT PRINCIPLES
Henri Fayol observed organizational problems in view from the top
level and focused on Management Principles, like:

1. Division of Work
 Differentiating the task according to the capability of the worker based on
six category, like Technical, Commercial, Financial, Accounting, Security
and Management.
2. Authority and Responsibility
 Authority is “ The right to give orders” & power is “to extract obedience”.
3. Discipline
 Self imposed discipline and command discipline.
4. Unity of Command
 One boss over a worker.
5. Unity of Direction
 One boss with one direction.
6. Subordination of Individual to General Interest
 Converting one self ambition, laziness, weakness into effective utilization
of industrial growth by motivating and explaining the merits of
organization growth.
7. Remuneration of Personnel
 Justified pay depending on the nature and hard working of the workers and
fair method of payment.
8. Centralization
 Everything which go to increase the importance of subordinates role is
centralization, or else it is de-centralization.
Department of CSE, GIT
EHS 301 and ENGINEERING ECONOMICS AND MANAGEMENT
Management Principles………contd
9. Scalar Chain of Command
 Communication and authority should follow line authority
(i.e. hierarchy) but not gangplank.
10. Span of Control
 Limited number of subordinates should be given for controlling by a
supervisor.
11. Order
 Right person right job.
12. Equity
 Combination of justice and kindness equally to all subordinates.
13. Stability of Tenure
 Surety of the job environment by the subordinates.
14. Initiative
 Increasing the zeal of subordinates should prevail.
15. Esprit de Corps
 Establishing team-work (i.e. union is strength).
16. Specialization & departmentalization
 Grouping tasks based on functionality and similarity.

Department of CSE, GIT

EHS 301 and ENGINEERING ECONOMICS AND MANAGEMENT