meaninc,various management principles,functions of managment,

1. Welcome
Topic 2: Management Process
Presented By
Mr. J.B.Shirote
Lecturer in Mechanical Engineering Department
Latthe Education Society’s Polytechnic
P-41,M.I.D.C.,Kupwad,Sangli.

2. Topic 2: Management Process
Specific Objectives
• State various management principles
• Describe different management functions

3. What is Management?
What is Management?
• It is an art of getting work done from others
with the help of optimum recourses to
achieve desired goals
• It is called an art because managing requires
certain skills which are personal possessions
of managers.

4. Management Process

5. Evolution
(Gradual Development)

6. History
• Since last 30000 years human being is
applying management in his life activities
MohenjoDaro Pyramids in Egypt

7. Evolution Of Management Theories

8. Sr.No. Scientist Contribution In Management
Evolution
1 F.W. Taylor (1856-1915) Scientific Management Theory
2 Frank B. Gilbreth Time Study
3 Lillian M. Gilbreth Motion Study
4 Mary Parker Follet Behavioral Management Theory
5 Henri Fayol Principals Of Management
6 Max Weber Bureaucracy
7 Douglas Mcgregor Theory X And Y
8 Moslow Need Of Hierarchy
9 Adam Smith Economist

9. 1.Scientific Management
• Defined by Frederick Taylor, late 1800’s.
• Father of scientific management.
• The systematic study of the relationships
between people and tasks to redesign the
work for higher efficiency.
• Taylor sought to reduce the time a worker
spent on each task by optimizing the way the
task was done

10. 2.Administrative Management Theory
• Henri Fayol (1841-1925):
Fayol was born in France, where he worked for a
coal-mining business. He developed 14
administrative principles for organizational
structure and management.

11. Bureaucracy
• A bureaucracy is an organization made up of
many departments and divisions that are
administered by lots of people.
• Seeks to create an organization that leads to both
efficiency and effectiveness.
• Max Weber developed the concept of
bureaucracy.
• A formal system of organization and
administration to ensure effectiveness and
efficiency

12. Weber’s Five Principles

13. 3.Behavioral Management
• Focuses on the way a manager should personally
manage to motivate employees.
Mary Parker Follett
an influential leader in early managerial theory.
• Suggested workers help in analyzing their jobs for
improvements.
• The worker knows the best way to improve the
job.
• If workers have the knowledge of the task, then
they should control the task

14. Theory X and Y
• Social psychologist Douglas McGregor of MIT
expounded two contrasting theories on
human motivation and management in the
1960s:
The X Theory and the Y Theory.

16. 4.Management Science
• Management Science is concerned with
developing and applying models and concepts
that help to illuminate management issues
and solve managerial problems.
• The models used can often be represented
mathematically, but sometimes computer-
based, visual or verbal representations are
used.

17. 4.Management Science
• Quantitative management: utilizes linear
programming, modeling, simulation systems.
• Operations management: techniques to
analyze all aspects of the production system.
• Total Quality Management (TQM): focuses on
improved quality.
• Management Information Systems (MIS):
provides information about the organization.

18. 5.Organization-Environment Theory
• Considers relationships inside and outside the
organization.
• The environment consists of forces, conditions,
and influences outside the organization.
Systems theory considers the impact of stages:
• Input: acquire external resources.
• Conversion: inputs are processed into goods and
services.
• Output: finished goods are released into the
environment.

19. Definitions Of Management
The art of getting
things done through
people.
--Mary Parker
Follett

24. Management is an art
of knowing what is to
be done and seeing
that it is done in the
best possible manner.
-F.W.Taylor

25. Concept of management
• Harbison and Myers offered a classic threefold
concept for emphasizing a broader scope for
the viewpoint of management.
They observe management as
(1) an economic resource
(2) a system of authority
(3) a class or elite(a select group that is superior
in terms of ability or qualities to the rest of a
group or society.)

27. Levels of management

29. Principles of Management
(14 principles of Henry Fayol)

30. 1. Division Of Work:
• It is also called Delegation of
work
• Due to division of work, people
gets less variation in work
• Extra pressure on very few is
avoided
• Work gets completed in time
with better quality
• Results into Functional
specialization

31. 2. Authority
• Right to give orders
• Right to command
• If authority used in good
sense and in positive manner
the system works smoothly
• Authority can be
delegated(divided)
• Higher the authority, higher
the responsibility

32. 3. Discipline
• Discipline means obedience,
respect for authority, and
observance of established
rules.
• Requires for Smooth
functioning of organization
• No excuses
• Starts form top management

33. 4. Unity Of Command
• One boss principal
• Workers should receive orders
from only one manager
• As soon as two superiors
impose their authority over
the same person or
department, uneasiness
makes itself felt.
• Dual command is a source of
conflict

34. 5. Unity Of Direction
• 'One Head One Plan'.
• All the employees having
same objective must be
directed towards the
achievement of the common
goal and thus must have one
head and one plan
• No confusion among the
employees

35. 6. Subordination Of Individual
Interests To The General Interests
• This principle states
that general interest is
superior to the
individual interest

36. 7. Remuneration:
• Many people work for
Remuneration
• Reward for employment in the
form of pay, salary, or wage,
including allowances, benefits
(such as company car, medical
plan, pension plan), bonuses,
cash incentives, and monetary
value of the noncash
incentives.

37. 8. Centralization
• Centralization is said to
be a process where the
concentration of
decision making is in a
few hands.
• lowering the
importance of the
subordinate role
• Does not considered
local issues

38. Decentralization
• On the other hand,
Decentralization is a
systematic delegation of
authority at all levels of
management

39. 9. Scalar Chain
• Line of authority and
responsibility
• This varies from top
level management
(executive board) to the
lower level in the
organization.

40. 10. Order
• Here Order does not mean
any command
• Order means right
arrangement of things and
activities.
• A proper place for everything
and everything at its proper
place.
• If it is at fixed place it avoids
hindrance which leads into
higher efficiency and output

41. 11. Equity
• core values of an
organization.
• All employees should be
treated as equally and
kindly, with justice as
possible.
• gives dignity to everyone
• There Is no bias nature

42. 12. Stability Of Tenure Of Personnel
• In order to run an
organization smoothly,
personnel (especially
managerial ) must not
frequently enter and exit the
organization.
• Stability provides secure
feelings
• Economic stability, work load
work area team stability etc.

43. 13. Initiative
• To start with
enthusiasm
• employees should be
allowed to express new
ideas.
• encourages interest and
involvement and
creates added value for
the company.

44. 14. Espirit De Corps
• TEAM spirit
• Stands for striving for the
involvement and unity of
the employees
• Development of the
culture and creates an
atmosphere of mutual
trust and understanding.

45. Scientific Management by F. W. Taylor
• application of a scientific approach to
managerial decision making consisting of-
collection of data, an analysis of data and
basing decisions on the outcome of such
analyses and discarding at the same time, all
unscientific approaches, like – rule of the
thumb, a hit or miss approach and a trial and
error approach.

46. 4 Principals

47. Network Techniques
• CPM-Critical Path Method
• PERT-
PERT is a method of analyzing the tasks involved
in completing a given project, especially the
time needed to complete each task, and to
identify the minimum time needed to complete
the total project

48. CPM &PERT Model

49. Advantages Of Scientific Management
Over The Traditional Management
• Plan is more optimistic
• Idle time is reduced
• Suitable men for suitable job
• Effective assignment avoids overlapping of work
• Cost reduction
• Material wastages reduced
• Unnecessary delays avoided
• Directs best method of work

50. Functions of Management
Planning
Organizing
Staffing
Directing
Controlling
Decision Making

51. 1.Planning

52. Planning
It is Deciding in
advance
-What to do
-why to do
-How to do
-When to do
-where to do it
-Who is going to do it

53. • Bridges a gap between where we are today
and where we want to reach.
• Planning is necessary to ensure proper
utilization of human & non-human resources.

54. Why Planning Is Required??
• To reduce effects of uncertainty
• To find out the risks involved
• To focus the objectives of work
• To make process more economical
• To improve the efficiency and effectiveness
• To avoid repetitions of work

55. Planning process

56. Why plan fails??
• No adequate information
• Improper and insufficient actions
• Unrealistic goals
• Planning is done only for plan sake
• Partial commitment
• inadequate resources

57. 2.Organizing

58. Steps In Organizing
No Description
1 Objectives /Aims/Goals Are Determined
2 Formulation Of Supporting Policies And Plans
3 Identification And Classifying The Activities
4 Grouping The Activities In The Best Ways
5 Assignment Of Duties
6 Horizontal And Vertical Relationships Of
Authority And Responsibility

59. Importance Of Organizing
• Benefit of specialization
• Provides optimum utilization of recourses
• Effective administration
• Channels expansion and growth
• Co-ordination among different departments
• Scope for new change

60. 3.Staffing
Staffing is the
process of filling
positions in the
organization with
adequate and
qualified personnel
(employees)

61. Staffing
• Recruiting, selecting, appointing the
employees, assigning duties, maintaining
cordial relationship (friendly and sincere) and
taking care of grievances of employees.
• Training and Development of employees,
deciding their remuneration, promotion and
increments.
• Evaluating their performance.

63. 4.Directing
• Directing is said to be a
process in which the
managers instruct, guide
and oversee the
performance of the
workers to achieve
predetermined goals.
• Directing is said to be the
heart of management
process.

64. Directing
• Giving direction or instruction to employees to
get the job done.
• Leadership qualities are required.
• Communicating with them at regular intervals.

65. Aspects Of Directing
It deals directly with-
• Supervision
• Leadership
• Motivation
• Communication
• Co-ordination
Of workers to achieve predetermined goals.

67. Importance Of Directing
• Joins the management and subordinates
• Guidelines to juniors from seniors
• Experience is always gives better in doing
work
• Success rate is more due to valid and correct
direction
• It removes confusion among team members

68. 5.Controlling

69. Controlling

70. Controlling
• Planning is a process by which an
organization's objectives and the methods to
achieve the objectives are established
• Controlling is a process which measures and
directs the actual performance against the
planned goals of the organization.

71. Controlling
• Main purpose is to avoid deviation in the work
• It primarily needs standards, objectives and
goals
• It decide Criterion Of Performance
• Work on correct track with correct speed is
possible by controlling

72. Techniques Used For Controlling
• Statically reports
• Audit
• Personal observations
• Budgetary control
• CPM
• PERT
• Breakeven Analysis

73. Advantages
1. Efficient Execution:
System runs as per rule, as per plan
2. Helps Delegation
3. Simplifies Supervision
4. Aids to Efficiency
• Losses are avoided
• Wastes is minimized
• Proper utilization of Recourses
• Deviation in executed process is reduced

74. 6.Decision Making

75. Meaning
• Decision-making is
the act of
choosing between
two or more
courses of action.
• In the wider
process of problem-
solving, decision-
making involves
choosing between
possible solutions
to a problem.

76. Importance
• Correct decisions provide opportunities of
growth while wrong decisions lead to loss and
instability

77. Steps In Decision Making
Recognize the problem
Analyze the problem
Find the alternatives to solve
Evaluation of alternatives
Select the best alternative
Evaluation of alternatives

78. Types Of Decision
1. Programmed and non-programmed decisions
concerned with the problems of repetitive
nature or routine type matters
2. Routine and strategic decisions
related to the general functioning of the
organization.

79. 3. Strategical (Policy) and operational decisions
• Decisions pertaining to various policy matters
of the organization are policy decisions.
4. Organizational and personal decisions
• When an individual takes decision as an
executive in the official capacity, it is known as
organizational decision.

80. • Major and minor decisions
• Individual and group decisions

81. Techniques Used In Decision Making
1. Brainstorming
2. Nominal group technique
3. Multi-voting
4. Delphi method
• brainstorm and submit their ideas anonymously.
Other team members do not know the owner of
the ideas.
• circulates them among others for modifying or
improving them

82. Advantages Of Decision Making
• actions will not be possible and the resources
will not be put to use.
• Is necessary for planning, organizing, staffing,
coordinating and communicating.
• Follow-up actions are not possible
• To face new problems and challenges.

83. 7.Motivating
• Motivation in management describes ways in
which managers promote productivity in their
employees
• Energizes people to work more
• Is to increase the will power and encourage to
employee
• Its related with inspiring to do work better

85. Maslow Theory
Of Motivation

86. Administration And Management
• Administration means overall determination
of policies, setting of major objectives, the
identification of general purposes and laying
down of broad programs and projects

87. Difference
• Management is all about plans and actions,
but the administration is concerned with
framing policies and setting objectives.