Management Principles

1. Principles of
Management
UNIT I-
Introduction to
Management
Dr. Mohd Abdul Moid

2. Introduction
Management has existed since
the early ages. But only since
the 19th century, it has become
an organized scientific
discipline.
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3. Management
as a concept
till now
Antiquities, Middle Ages and 18th
Century
Concept
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4. Antiquity & Middle Ages
EXAMPLES FROM EARLY AGES
Many humongous tasks have been
implemented in the past that make it
evident that it would have required all the
critical elements of management. From
physical structure to currencies to
civilisations.
ROMANS AND THE EGYPTIANS
Looking at projects such as the Egyptian
pyramids or the Great Wall of China, it is
obvious that a large number of tasks had to
be performed which we would today
associate with the term management.
When thousands of people are involved in a
project of this scale, management is needed
to plan, organize, and coordinate them
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5. 18th Century is when the foundational
principles of modern-day management
practice were laid down.
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6. Adam Smith’s Contribution
▪ Adam Smith in his
revered book ‘Wealth of Nations’
▪ He described in great detail the
necessity for specialization and
division of labor as a main driver for
commercial efficiency.
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7. Industrial Revolution
In the late eighteenth
century, the first industrial
revolution led to a
continuous replacement of
human labor with
mechanical power. In
Great Britain and the USA..
Late Eighteenth Century
Industrialization
It meant a transition from
an agricultural to an
industrial society. In new,
large factories, workers
were needed to operate
the machines and
managers were appointed
to train employees do to
this
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8. 19th & 20th
Century
Management as we know
it today has majorly
developed into an
organised and scientific
field of study in this era
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9. Scientific School of
Thought
▪ The scientific management
theory—developed by
Frederic Taylor (1911) and
the couple Lillian and Frank
Gilbreth (1911)—
Classical Approach
General Administrative
Theory
▪ Was influenced primarily by
Henri Fayol (1949) and Max
Weber (1922), are the two
most prominent iterations of
the classical approach.
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10. 10

11. The Main Philosophy
The main driver was how
management principles
and techniques can
support companies in
increasing their
efficiency and
effectiveness.
Principles of
Scientific
Management 1911
Frederic Taylor
first introduced an
in-depth analysis
of productivity on
factory floors.
He observed that
inefficiency was
caused by each
worker having a
different way of
working.
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12. Four Principles were
developed
▪ Studying work using scientific
methods allows managers to
determine the most efficient way to
execute a task.
▪ Workers are assigned to a task
according to their skills and
motivation. They receive the
appropriate training in order to
maximize performance and
efficiency.
▪ A worker’s performance is closely
monitored and checked against key
performance indicators.
▪ The various steps of a production
process are divided that allows the
manager to focus on time planning
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13. Motion studies were defined
as“Science of eliminating
wastefulness resulting from
ill-directed and inefficient
motions”
Frank & Lilian Gilbreth
Motion Studies
▪ They studied work to
eliminate inefficient hand-
and-body motions and
experimented with design
and the use of proper tools
and equipment to optimize
work performance.
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14. Henry Fayol
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15. Henry Fayol
He was the first to
identify the five
functions that managers
perform:
planning, organizing,
commanding,
coordinating, and
controlling.
The general
administrative
theory focuses on
what managers at
all levels do, as well
as what
constitutes good
management
practice.
Fayol developed 14
principles of
management, each
founded on one of
the following
topics
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16. Fayol’s Principles of
Management
1.Division of work:
this increases the
output because
employees are more
efficient
2.Authority and
responsibility:
authority gives
managers the right to
give orders
3.Discipline:
employees must
respect the rules of
the organization, for
example, mission or
vision.
4.Unity of command:
employees should
only receive orders
from one superior.
5.Unity of direction:
organizational
activities with the
same objective
should have one
plan of action.
6.Subordination of
individual interest: the
interest of a person or a
group should not take
precedence over the
interests of the
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17. Contd.
7.Remuneration of
personnel: workers
should have a fair
wage for their
services.
8.Centralization:
refers to the degree
to which subordinates
are involved in
decision making.
9.Scalar chain (line of
authority): this is the line
of authority, from top
management to the
lowest ranks.
Communication should
follow this line.
10. Order: people
and materials should
be systematically
arranged to be in the
right place at the
right time.
11. Equality:
employees have to
be treated equally—
managers should be
kind and fair to the
subordinates.
12.Stability of tenure of
personnel: personnel
should not enter and exit
the organization
frequently. High
employee turnover is
17

18. Contd.
13. Initiative:
employees who are
allowed to create
and execute plans
themselves will
make greater efforts.
14. Esprit de
corps:the promotion
of team spirit will
foster harmony and
unity within the
organization.
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19. Max Weber & Elton Mayo
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20. ▪ Weber developed a theory of authority structures and relationships
based on an ideal type of organization with large groups, which he
called “bureaucracy”.
▪ One of the most prominent representatives of the behavioral
approach is Elton Mayo(1933).
▪ With his famous Hawthorne studies, Mayo showed that
productivity increases when the participation level and
empowerment of employees is increased
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21. “Hawthorne Effect”
▪ A major result of these studies was the notion that monetary
incentives had less effect on employee productivity than respect,
acceptance, and empowerment.
▪ In this regard, social norms were named as key determinants of the
work behavior of the individuals in the group.
▪ The positive change of behavior when managers pay attention to
workers was later called the “Hawthorne effect.”
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22. TQM (Total Quality
Management)
▪ During the Second World War, mathematical and statistical models
were developed to solve military problems.
▪ Many of these models proved to also be useful for optimizing
business processes and improving decision-making.
▪ The adoption of these models in business became known as the
quantitative approach of management (also known as management
science).
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23. Contd
▪ Later on, in the 1980s and 1990s, the quantitative techniques
became the main building blocks for total quality management,
which is still widely applied by many businesses today.
▪ Total quality management (TQM) This is a management philosophy
with the goal of continuous improvement and responding to
customer needs and expectations.
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24. Systems Theory and
Contingency Theory
In 1960s, scientists were not only analyzing an
organization from the inside, but also examined
how an organization itself interacted with
developments an changes in its environment.
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25. Contingency Approach
▪ The contingency approach theory deals with the notion that
organizations and their units are different and encounter different
situations and thus need to behave differently in terms of
management strategy (Robbins & Coulter, 2018).
▪ For that, the “if... then” procedure is applied: “if the situation is like
this, then the best way to manage the situation is....”
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26. What is your
image of a
Manager?
For Business Plans, Marketing Plans,
Project Proposals, Lessons, etc
Functions
Roles and
Skills of
Managers

27. We can define manager as“the work activities
of others so their activities are completed efficiently
and effectively
Management itself can be defined as “the organization and
coordination of the activities of a business in order to achieve
defined objectives,” performed by “the directors and managers who
have the power and responsibility to make decisions and oversee
an enterprise”
In a traditionally organized company, the structure can be shown as a
pyramid. This follows the fact that many more people work at the lower
levels than at the upper levels. We differentiate between three
management levels: first-line, middle, and executive management
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29. Functions of a Manager
PLANNING ORGANIZING LEADING
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CONTROLLING

30. Manager’s Functions
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PLANNING
Managers set goals and
establish the plans necessary to
integrate and coordinate
related activities.
ORGANIZING
Managers are responsible for
arranging and structuring the
work.
Managers have to guide and
motivate members of an
organization toward
accomplishing organizational
goals.
LEADING
Managers establish and track
organizational performance
standards.
CONTROLLING

31. Additional Functions
▪ Environmental scanning- Managers continually look for changes in
the business environment.
▪ Customer relations and marketing- Managers have direct contact
with current or potential customers.
▪ Community relations- Managers are in constant contact with
representatives of other organizations.
▪ Internal consulting- Managers with special expertise work on
projects within the company.
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33. What are the
skills a
manager
should
possess?
Traditionally, three types of managerial
skills are described as necessary to perform
the tasks of a manager
Managerial
Skills

34. Three types of skills
▪ Technical skills imply the ability to use tools, procedures, and
techniques in a special area.
▪ Human relations skills imply the ability to work with people and
understand their motivation and the group processes.
▪ Conceptual skills imply the ability to organize and analyze
information in order to improve performance.
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36. External Influences
▪ Environment factors
▪ The impact of change in the company
environment
▪ Assessing environmental uncertainty
▪ Stakeholder relationship
▪ Internal influence
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37. Environment
Factors
The external environment refers to factors
and forces outside of the company which
have an influence on the company and its
management.
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39. Uncertainty
Uncertainty can be described as the
degree of change and complexity in an
organization’s
environment
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41. Stakeholder’s
Relationship
Stakeholders are external as well as internal groups,
like shareholders, employees, competitors, customers,
suppliers, government, social and political action
groups, media and press, unions, communities, trade
associations, and alliance partners
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43. Conclusion