Principles of
Management –
ME3104D
Introduction
Why Principles of Management?
▪ Employees’ best
performance
▪ Necessary and essential,
irrespective of discipline
▪ Navigate growth in the
organisation
3
You will learn...
▪ Key terms, concepts, and positions of view in management
▪ Working knowledge and functions necessary to be an
efficient and effective manager
▪ Planning, organising, and leading skills
▪ Concepts and types of leaderships
▪ Controlling and decision making skills
▪ Adapt to change in an organisation, culture of an
organisation
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Course Content – Module 1 (15h)
▪ Introduction to management
▪ Classical, neo-classical, and modern management theories
▪ Levels of managerial skills required
▪ Management processes
▪ Planning – objectives, goals, strategy, policy, programmes,
procedures
▪ Organising – principles of organising, organisational
structures
▪ Directing, leadership, motivation
▪ Controlling
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Course Content – Module 2 (11h)
▪ Concept of productivity and its measurement
▪ Competitiveness
▪ Decision making process
▪ Decision making under certainty, risk, and uncertainty
▪ Decision trees
▪ Models of decision making
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Course Content – Module 3 (13h)
▪ Introduction to functional areas of management
▪ Operations management
▪ Human resources management
▪ Marketing management
▪ Financial management
▪ Entrepreneurship
▪ Business plans
▪ Corporate social responsibility
▪ Patents and intellectual property rights
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Reference Books
1. H. Koontz, and H. Weihrich, Essentials of Management: An International
Perspective. 8th ed., McGraw-Hill, 2009.
2. R. W. Griffin, Management: Principles and Applications, Cengage
Learning, 2008.
3. P. Kotler, K. L. Keller, A. Koshy, and M. Jha, Marketing Management: A
South Asian Perspective. 14th ed., Pearson, 2012.
4. M. Y. Khan, and P. K. Jain, Financial Management, Tata-McGraw Hill,
2008.
5. R. D. Hisrich, and M. P. Peters, Entrepreneurship: Strategy, Developing,
and Managing a New Enterprise, 4th ed., McGraw-Hill Education, 1997.
6. E. B. Roberts, Entrepreneurs in High Tech-Lessons from MIT and beyond,
Oxford University Press, 1991
7. D. J. Sumanth, Productivity Engineering and Management, McGraw-Hill
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Education, 1985.
Module 1
Introduction to Management
Smita Rai and Namchi Designer Candles
10
A typical day in Smita’s life
1. Plan for Diwali collection in June itself
▪ organise more funds and recruit additional workers
2. Coordinate buying, manufacturing, and sales
departments’ activities
3. Regularly communicate with her suppliers
▪ to ensure that deadlines regarding delivery of goods are
met.
4. Meets customers for a general feedback and suggestions
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What is management?
▪ Management
▪ art of getting things done through people
▪ process of achieving goals and objectives efficiently and effectively
through and with people
▪ Efficiency
▪ getting the most output from the least amount of input
▪ concerned with the means of getting things done
▪ Effectiveness
▪ “doing the right things”
▪ concerned with the ends or attainment of organisational goals
12
What constitutes management?
▪ Managers carry out
managerial functions 1. Planning
▪ Two aspects of management
▪ People – responsibility
and authority to 5. 2.
Controlling Organising
determine the overall
Managerial
direction of the org functions
▪ Process – decide what
goals should be and
defines them for the org
4. Directing 3. Staffing
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Definitions of management
▪ “Management is the process of designing and maintaining an environment
in which individuals, working together in groups, efficiently accomplish
selected aims.”
Harold Koontz and Heinz Weihrich
▪ “Management is defined as the process of planning, organising, actuating
and controlling an organisation’s operations in order to achieve coordination
of the human and material resources essential in the effective and efficient
attainment of objectives.”
Robert L. Trewelly and M. Gene Newport
▪ “Management is the process of working with and through others to
effectively achieve organisational objectives by efficiently using limited
resources in the changing environment.”
14 Robert Kreitner
Management is…
▪ Essential for all organisations
▪ big or small,
▪ profit or non-profit,
▪ services or manufacturing.
▪ Necessary so that
▪ individuals make their best contribution towards group
objectives
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Question
Management functions include which of the following?
a) applying and distributing organisational resources effectively
b) acquiring new resources when necessary
c) analysing and adapting to the ever-changing environment in
which the organisation operates
d) complying with legal, ethical, and social responsibilities of the
community
e) developing relationships with and among people to execute
the strategies and plans
f) all of the above
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A revisit to the definition of management…
“
Management is defined
as the process of getting
things done with the aim
of achieving goals
effectively and efficiently
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Process, Efficiency, Effectiveness
▪ Process – the primary functions or activities of a
management
▪ Being effective
▪ doing the right task, completing activities and achieving goals
▪ concerned with the end result
▪ Efficiency
▪ doing the task correctly and with minimum input
resources/cost
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Effectiveness vs efficiency
▪ Two sides of a coin need to be balanced
▪ Easier to be effective and ignore efficiency
▪ complete the task but at a higher cost
▪ Increase efficiency but not effectiveness
▪ cutting down production costs but not meeting targets
▪ Poor management – both ineffective and inefficient
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Effectiveness vs efficiency
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Productivity
Output
Productivity =
Input
▪ The output-input ratio within a time period with due
consideration to quality
▪ Is a function of efficiency and effectiveness
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Characteristics of Management
Management is
▪ a goal-oriented process
▪ all pervasive
▪ multidimensional
▪ management of work
▪ management of people
▪ management of
operations
▪ a continuous process
▪ a group activity
▪ a dynamic function
▪22 an intangible force
General Electric
A case study
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Jack Welch and growth of GE...
1981
1979 •Youngest
CEO and
1977 •VC
chairman
1973 •Senior VP
& head –
1971 •Group
cons.
exec.
1968 •VP of products
metallurgi
1960 •VP of
cal &
plastics
•JE at chemical
$410 B in
chemicals
2001
$12 B in
1981
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Management mantra of GE…
1. Create a vision and ignite others to make it a reality
2. Focus on strategic issues
3. Focus on the big picture
4. Involve everyone
5. Lead by example
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Levels of Management
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Levels of Management
Define goals,
CEO, CMO, Top formulate policies, org
CFO, MD, VP, as a whole
Prez, etc
DMs – marketing, Dept. objectives &
purchasing, sales, Middle activities, guide lower
finance, op, etc level
Supervisors, D2D activities,
foremen, first- Lower short-term plans,
line managers close control
29 Workforce
Time spent in carrying out managerial
functions
Controlling
Top
Organising
Planning
Leading
Middle
Managemen
t
Supervisory /
Operational /
Lower / First-Line
Management
Partly based on and adapted from Thomas A. Mahoney, Thomas H. Jurdee, and Stephan J. Carroll,
“The Job(s) of Management,” Industrial Relations (February 1965) pp. 97-110
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Managerial Skills
▪ Three types skills for a successful manager – Robert
L Katz
▪ Technical skills
▪ Human or interpersonal skills
▪ Conceptual skills
▪ Three more managerial skills usually considered
▪ Political skills
▪ Diagnostic skills
34 ▪ Design skills
Managerial Skills
Technical skills
▪ Knowledge, abilities, proficiency in methods,
processes, procedures
▪ The ability to use the knowledge or techniques of a
particular discipline to attain ends
▪ Job-specific knowledge for performing tasks – most
important for first-level managers
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Managerial Skills
Human/inter-personal skills
▪ The ability to understand other people and interact
effectively with them.
▪ The ability to work with other people in the team
▪ Important for managers at all levels
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Managerial Skills
Political skills
▪ The ability to achieve power and prevent others from
taking it away
▪ Acquire necessary power to fulfil objectives
▪ Too much emphasis – compromise on work
▪ Required at all levels
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Managerial Skills
Diagnostic skills
▪ Skills to investigate a problem, diagnose the cause,
decide on and implement a remedy
▪ Require conceptual, technical, human and political
skills
▪ For example, a production manager may need to
diagnose the cause for poor quality production
despite the use of latest product manufacturing
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technology
Managerial Skills
Design skills
▪ Skills to handle and solve any kind of unforeseen or
actual problems
▪ Arise due to internal factors or external factors and/or
both
▪ Or in short: The problem-solving skills
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Skills & Management Levels
Skills vary in importance at different management levels
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Characteristics of excellent and most
admired companies
▪ “In Search of Excellence: Lessons from America's Best-Run Companies”
Thomas Peters & Robert Waterman.
1. Were oriented towards action
2. Learned about the needs of their customers
3. Promoted managerial autonomy and entrepreneurship
4. Achieved productivity by paying close attention to the needs of the people
5. Were driven by a company philosophy often based on the values of their
leaders
6. Focused on the business they knew best
7. Had a simple organisation structure with a lean staff
8. Were centralised as well as decentralised, depending on appropriateness
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Coca-Cola: a case study of organisational
behaviour
▪ Started in 1886
▪ Served in 200 countries
▪ 1.8 billion servings a day Motivation
(2013)
▪ World’s 6th most valuable
brand (Interbrand, 2020) Teamwork
Leadership
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Management: Science or Art?
▪ Science – collection of systematic knowledge, truths, and
inferences after continuous study and experiments. It has
fundamental principles discovered
▪ Art – uses known rules and principles, skill, expertise,
wisdom, and experience to achieve the desired result
▪ Management – both art and science
▪ has got scientific principles which constitute science,
▪ as well as skills and talent which forms art
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