Welcome
To
Management and
Organizational
Behavior course
Management
Principle and
Function
Definition of Management
Management can be defined as a process of
getting the work/task done that is required for
achieving the goals of an organization in an
efficient and effective manner.
Management is the administration of organizations
involving people, resources and goal.
Definition of Management
Henri Fayol (1841–1925) stated: "To manage is to
forecast and to plan, to organize, to command, to co-
ordinate and to control".
Fredmund Malik (1944– ) defines management as "the
transformation of resources into utility".
Management
Fredrick Winslow Taylor The father of “scientific
management” : Author of “Principles of Scientific
Management” (1911)
Says “Management is a science. There is one best way
and one best person to do the task. I love efficiency and I
love to study people at work. Management should be an
academic discipline.”
His work influenced: Bringing psychology into the
workplace, Gantt Chart and planning.
What is Principles
Principles means a fundamental truth or
proposition that serves as the foundation for a
system of belief/behavior/ a chain of reasoning that
guides us.
For example "the basic principles of justice“
Henry Fayol’s 14 Principles Of Management
Division of work – Tasks are distributed to qualified and competent
workers.
Authority – Managers have the rights to command and give orders
to their subordinates.
Discipline – Members in any organization have to respect the rules
and agreements governing it. Respect and obedience to rules is the
way to good life and discipline.
Unity of command – Employees must receive instructions only
from one person. Reporting to more than one manager results to
conflict in instruction and confusion of authority.
Henry Fayol’s 14 Principles Of Management
Unity of direction – Operations within the organization must have
the same objective directed by only manager with one plan.
Subordination of individual interest – Individual interest must be
subordinate to general interest when there is conflict between the
two. The agreement between the employers and the employees
should be fair and there should be constant vigilance and
supervision.
Remuneration – Compensation for work done should be fair to both
employers and employees. It should be a win-win situation.
Centralization – It decreases the role of subordinates in decision
making. Managers must retain their authority, while at the same
time they should allow the subordinates to do their job properly.
Henry Fayol’s 14 Principles Of Management
Scalar chain – The line of authority in any organization starts from
top management to the lowest level of the enterprise.
Order – Either material or human resources should be in the right
place at the right time. People should be in the jobs or positions they
are suited to.
Equity – Equity is combination of justice and kindness. Equity in
treatment and behavior is liked by everyone and it brings loyalty in
the organization. This brings cordial relation between the
management and labor.
Stability of tenure of personal – Employees work better if job
security and career progress are assured to them. High employee
turnover rate affects the organization.
Henry Fayol’s 14 Principles Of Management
Initiative – Managers should encourage their employees
for taking initiative within limits of authority and discipline.
Initiative increases the zeal and energy on the part of
human beings. Fayols describes initiative as one of the
keenest satisfactions for an intelligent man to experience.
Team spirit (Esprit de Corps) – Teamwork is fundamentally
important to an organization. Extensive face to face verbal
communication encourages team work which in turn
increases the team spirit.
Management Functions
Planning - Defining goals, establishing strategies
to achieve goals, and developing plans to
integrate and coordinate activities.
Organizing - Arranging and structuring work to
accomplish organizational goals.
Staffing – Put the right person in the right place
Leading - Working with and through people to
accomplish goals.
Controlling - Monitoring, comparing between actual
work and standards, and correcting work.
What Is Planning?
Planning – To think about future course of actions.
A primary managerial activity that involves:
Defining the organization’s goals
Establishing an overall strategy for achieving goals
Developing schedules for organizational activities
Formal planning
Specific goals covering a specific time period
Written and shared with organizational members
Why Do Managers Plan?
Purposes of Planning
Provides direction
Reduces uncertainty
Minimizes waste and redundancy
Sets the standards for controlling
How Do Managers Plan?
Elements of Planning
Objectives Rules
Forecasting Programs
Policies Budgets
Procedures Projects
Types of Plans
Strategic Plans
Will cover the entire organization.
Establish the organization’s overall goals.
Visualize the organization at the top of its environment.
Cover extended periods of time.
Operational Plans
Specify the details of how the overall goals are to be
achieved.
Cover a short period of time.
Types of Plans
Long-Term Plans-Plans with time frames extending
beyond three years
Short-Term Plans- Plans with time frames of one
year or less
Specific Plans-Plans that are clearly defined and
leave no room for interpretation.
Types of Plans
Directional Plans- Flexible plans that set out
general guidelines and provide focus in
implementation.
Single-Use Plan- A one-time plan specifically
designed to meet the need of a unique
situation.
Standing Plans- Ongoing plans that provide
guidance for activities performed
repeatedly.
Setting Goals and Developing Plans
Traditional Goal Setting
Broad goals are set at the top of the organization.
Goals are then broken into sub-goals for each organizational
level.
Assumes that top management knows best because they can
see the “big picture.”
Goals are intended to direct, guide, and constrain from above.
Goals define, clarify, interpret and focus the areas of
responsibility for the lower-level managers.
The Downside of Traditional Goal Setting
Management By Objectives (MBO)
Goals are jointly determined by employees and
managers.
Progress towards accomplishing goals is periodically
reviewed.
Rewards are allocated on the basis of progress towards
the goals.
Key elements of MBO:
Goal specificity, participative decision making, an
explicit performance, evaluation period, feedback.
What is Organizing ?
Organizing is the process of arranging and allocating work,
authority, and resources among the members so that the
organization’s goal can be achieved efficiently.
-Stoner & Freeman
Functional Organization
It is the most logical and basic form of
departmentalization. It groups together those
jobs involving the same or similar activities.
Product Organization
It includes grouping arranging with a
certain type of product.
Geographical Organization
This organization can be done on jobs
on the basis of defined geographic
sites or areas.
It may range in size from a hemisphere
to only a few blocks of a large city.
Customer Organization
Under customer departmentalization,
this organization might work to respond
and interact with the customers.
Tall organizational structure Vs. Flat
organizational structure
Chain of Command
Chain of command is a clear and distinct line of authority among
the positions in an organization. It has two components:
Unity of command, suggests that each person within an
organization must have a clear reporting relationship to one and
only one boss.
Scalar chain, suggests that there must be a clear and
unbroken line of authority that extends from the lowest to the
highest position in the organization.
Authority- It is power that has been legitimized by the
organization. It
refers to the rights inherent in a managerial position to tell
people
what to do.
Any
Question
Please?
Cordial
thanks
indeed