principle of management

1. Principles of Management
Manager and
You in the
Organization

2. AFTER STUDYING THIS CHAPTER YOU SHOULD BE ABLE TO:
 Define Business and describe the characteristics of
Organization.
 Differentiate between managerial and non-
managerial employees.
 Describe Management.
 Explain the functions, roles, and skills of managers
and how the manager's job is changing.
 Recognize the value of studying Management

3. SOME IMPORTANT TERMS
TO KNOW

4. 4
a. Business
 The term “Business” signifies individual &
group activities directed towards wealth
generation through goods & services
(recognized by the law).

5. 5
b. Organization
A group of people working together in a
structured and coordinated fashion to achieve
a set of goals is called organization.
Structure
Goals
A
B

6. 6
c. Goals
d. Objectives
Objectives are sub goals.
Goals are the end results towards which all the activities
are directed. Different organizations may have different
goals. e.g. Profitability, Growth, Market Penetration,
Productivity, Leadership, Client Satisfaction etc.

7. 7
What is Management?

8. 8
Management...
Coordination and oversight of the work
activities of others so that their activities are
completed efficiently and effectively.

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Effectiveness VS Efficiency
Doing the right things , or completing activities
so that organization goals are attained, called
Effectiveness.
Doing the things right, or getting the most
output from the least amount of inputs,
called Efficiency.

10. Why Efficiency & Effectiveness are important to
Management

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What are the functions of
Management?
OR
What is Management Process?

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Four Functions of Management
Planning
Choose Goals
Organizing
Working together
Leading
Coordinate
Controlling
Monitor & measure
1-8

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1-Planning
A Management function that
involves defining goals,
establishing strategies for
achieving those goals, and
developing plans to integrate
and coordinate activities.
Planning Process consists
of five steps
 Objective-setting
 Forecasting
 Strategy formation
 Setting specific
standards
 Continual review and
revision

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2-Organizing
Organizing is the establishment of
relationship between:
 Activities
 Persons
 Physical factors
or
Structuring working relationships in a
way that allows organizational members
to achieve organizational goals.
Function of Organizing
involves:
1. Division of Labor
2. Departmentalization
3. Staff positioning
4. Assigning authority or
Delegation of power
5. Equalizing authority
and responsibility

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3-Leading
Management function that
involves working with and
through people to accomplish
organizational task.
In leading functions
subordinates are guided,
supervised and motivated by
managers
Components involve in
leading function are:
1. Supervision
2. Motivation
3. Communication
4. Bringing about change
5. Managing conflict

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4-Controlling
Management function that
involves monitoring actual
performance ,comparing
standards, and taking corrective
actions if necessary.
Process consist of:
1. Measuring
2. Comparing
3. Correcting

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SET
PERFORMANCE
STANDARDS
STANDARDS
WITHIN
LIMITS
CONTINUE
WORK
PROGRESS
TAKE
CORRECTIVE
ACTION
COMPARE
MEASURE
PERFORMANCE
DETERMINE
DEVIATION
NO YES
Controlling Process

18. Management Functions

19. 19
Management as Systematic Approach
Goals
Inputs
i. Human Resources
ii. Financial Resources
iii. Physical Resources
iv. Information Resources
MANAGEMENT
PROCESS
ORGANIZING
PLANNING
Effectively
Completion
of Goals
+
CONTROLLING
Leading

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Managers are those people who work with
and through other people for getting activities
completed in order to accomplish
organizational goals.
Manager

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Difference between Managers and Operatives
 Operatives are people who work
directly on a job or task & have no
responsibility for overseeing the work
of others.
In contrast
 Managers direct the activities of other
people in the organization.

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What are their Objectives?
To achieve the organizational goal, managers pursue the
following objectives.
 Efficient use of resources
 Customer satisfaction
 Adequate return on capital
 Satisfied workforce
 Improved work conditions
 Building supplier relationship
 Contribution to national goal

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Kinds of Managers
Basically there are three
levels of managers
i. Top Managers
ii. Middle Managers
iii. First-line Managers
TOP
LEVEL
MIDDLE
LEVEL
FIRST-LINE
MANAGER

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Top Managers
Managers at or near the top of the organization
who are responsible for making organizational-
wide decisions and establishing the goals and
overall strategy are called Top Managers.
Titles found in this group include President, Vice
President, CEO, Chairman of the Board etc.

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Middle Managers
Middle Level Managers are primarily responsible for
implementing policies and the plans developed by the top
managers and for supervising and coordinating the
activities of lower level mangers.
Titles found in this group are Plant Manager, Operational
manager, Branch Manager or Departmental Head etc.

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First-line Manager
First-line Managers supervise and coordinate the
activities of operating employees.
Titles found in this group are supervisors,
Coordinator, Shift and Office Managers.

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Basic Managerial
Roles & Skills

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Managerial Role.
The managerial roles are divided into three
basic categories identified by Henry
Mintzberg.
1. Interpersonal Role
2. Informational Role
3. Decisional Role

29. 29

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Managerial Skills
There are number of skills that a Manager
needs but three of them are pre-requisite
to their success
 Technical Skills
 Interpersonal Skills
 Conceptual Skills

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Technical Skills
Job specific Knowledge and techniques in a
specialized field is termed as Technical
Skills.
Technical skills are specially input for first line
managers. These manager spend much of their
time in training subordinates and answering
questions about work related problems. They
must know how to perform the task assigned to
those they supervise if they are to be effective
managers.

32. 32
Interpersonal Skills
The ability to communicate, with understand and motivate
both individual and groups is called Interpersonal
Skills or human skills.
Manager spend considerable time in interacting with people
both inside and outside the organization. e.g. Workers,
customers, suppliers, investor. Manager with good
communication skills are able to get the best out of their
people. They know how to communicate, motivate, lead and
inspire. These skills are equally important at level of
managers.

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Conceptual Skills
The manager’s ability to think and to conceptualize
about abstract and complex situations are called
Conceptual Skills.
Using these skills manager must be able to see the
organization as a whole, understand the relationship
among various subunits, and visualize how the
organization fits into its broader environment, these
skills are most important at top level management.

34. Skills Needed at Different
Management Levels

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HOW THE
MANAGER’S JOB IS
CHANGING

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The Universality of Management
The reality that management is needed in all
types and sizes of organization, at all
organizational levels, in all organizational
areas, and in organization no matter where
located.

38. Universal Need for Management

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The Reality of Work
CHHALLANGES
FACED AS A MANAGER.
Keeping pace with a continuous
changing business environment.
Energizing and motivating the
team and managing ambitions
and idiosyncrasy of star
performance.
Meeting deadlines and targets
and walking the talk (read
promises & commitments made)
REWARDS OF BEING
MANAGERS.
Satisfaction of creating a winning team.
Making a difference in developing the
careers of your junior reportees.
Ability to turn around an organization
through difficult situation.
Create an impact among all
stakeholders.
Recognition & incentives both monetary
and nonmonetary.