Management Slides by KJAN 2014 3/13/2014

Principles of Management
Prescribed Text Book:
Management: A Global & Entrepreneurial Perspective
13th edition
Harold & Heinz

Syllabus:

Chapters = 1,4,5,7,8,9,10, 15–16 & 18

Total = 10 Chapters
No of lectures available = 10

Principles of
Management

Learning Values of Subject

• Academic view point of “Management”.
• Foundation for all other MBA subjects
• Formal Definitions of multiple functions/ domains of
Management
• Co-relation of Academic Knowledge & Industrial
Practices
• Knowledge through sharing of information from
different industrial practices

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Management Slides by KJAN 2014 3/13/2014

Chapter Management:
Science, Theory
1 & Practice

Lecture Topics

• Introduction & Definitions

• Terms explanation
• Managerial Functions
• Management Approaches
• Evolution of Management
• Management Theories

Management
Definition … ??

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Management Slides by KJAN 2014 3/13/2014

Management
Definition 1
Manipulation of resources to achieve
objectives

Resources: 4Ms, Time & Information

4Ms = Men, Material, Money, & Machine

Management

Definition 2

The process of getting activities completed

efficiently and effectively with and through
other people.

Management

Definition 3

It is a process of designing and

maintaining an environment in which
individuals, working together in groups,
efficiently accomplish
selected aims.

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Management Slides by KJAN 2014 3/13/2014

Management

Definition 4

Is the process by which managers create,

direct, maintain and operate purposive
organizations through coordinated,
cooperative human effort.

Management
Definition 5

The attainment of organizational goals in

an effective and efficient manner through
planning, organizing, staffing, leading,
and controlling organizational resources.

Key Words : Management Definitions

• Resources, Objectives
• Efficiently, Effectively, Through Other People.
• Designing, Maintaining, Environment, Aims.
• Create, Direct, Maintain, Operate, Human
Effort.
• Organizational Goals, Planning, Organizing,
Staffing, Leading, Controlling , Resources

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Management Slides by KJAN 2014 3/13/2014

Comprehensive Definition

Management is achievement of
organisational goals through the major
functions of planning, organising,
staffing, leading and controlling.

FIVE MANAGEMENT FUNCTIONS

Achievement of organisational goals via:

1. Planning

2. Organising

3. Staffing

4. Leading

5. Controlling

What is an Organization?

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Management Slides by KJAN 2014 3/13/2014

What is an Organization?

ENVIRONMENT

Transformation
input output
process

Feedback (Reenergizing the system)

System Boundary

Organization as a System receives Input, transforms it

through a Process for Output and Operates in an
Environment (economic, regulatory and other forces)

What is an Organization?
Stakeholders
Shareholders;
Man, Machine Society; Customers; Product/Services,
Material, Profits, Customer &
Employees; Suppliers
Method, Societal satisfaction,
Measurement Other Long-term Goals
Controlling
Organizing
Planning

Staffing

Outputs
Leading

Inputs
(External
(Goal
To
Oriented)
Orgnzn.)

Stake holder Feedback (reenergizing the system)

EXTERNAL ENVIRONMENT(Opportunities, Constraints)

Goal Inputs: Inputs:

Employees, Consumers, Human, Capital,
Suppliers, Stock holders, Managerial,
Governments, Community etc Technological

Managerial Knowledge, Goals

of claimants, and use of Inputs

Planning

External
Variables
Organizing and
Information:
Re-energizing the Communication
Opportunities,
System Staffing Constraints
and others

Leading

Controlling

To produce Outputs Outputs:

Products, Services,
Profits, Satisfaction, Goal
Integration, Others

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Management Slides by KJAN 2014 3/13/2014

Management Level and Skills

Productivity – Effectiveness - Efficiency

PRODUCTIVITY ?

EFFECTIVENESS ?

EFFICIENCY ?

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Management Slides by KJAN 2014 3/13/2014

Productivity – Effectiveness - Efficiency

PRODUCTIVITY
Productivity = Output / Input (within time & quality)

Productivity – Effectiveness - Efficiency

PRODUCTIVITY
Productivity = Output / Input (within time & quality)

EFFECTIVENESS
To achieve objectives within the available resources

Productivity – Effectiveness - Efficiency

PRODUCTIVITY
Productivity = Output / Input (within time & quality)

EFFECTIVENESS
To achieve objectives within the available resources

EFFICIENCY
To achieve objectives at the least cost of resources.

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Management Slides by KJAN 2014 3/13/2014

Effectiveness & Efficiency in Management

Goals of All Managers

• Aim of business managers:
– To make Profit
– Long term increase in value of their Common
Stock

What is a Surplus .. ??

• Business Organizations
– Profit (Maximizing Revenue)

• Not-for-Profit Organizations
– Satisfaction of Needs/ Service

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Management Slides by KJAN 2014 3/13/2014

Management: Science or Art ?

• Science
– The organized
knowledge

• Art
– Practicing
management

We will only focus on …. !

• Managerial Roles Approach

• Management Process (Operational) Approach

Managerial Roles Approach

• By Mintzberg of McGill Uni

• Based on:
–What Managers actually do?
–Research of 05 CEOs
• Conclusion: Managers fill
series of 10 Roles:

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Management Slides by KJAN 2014 3/13/2014

Managerial Roles Approach

• Interpersonal roles
– Figurehead
– Leader
– Liaison
• Informational roles
– Recipient
– Disseminator
– Spokesperson
• Decisional roles
– Entrepreneurial
– Disturbance handler,
– Resource allocator
– Negotiator

INTERPERSONAL ROLE
• Figureheads: Projecting a set of values,
communicating an image.

• Leader role: Needs to be informed, as well as

informing. Leadership skills commonly lacking in
managers.

• Liaison role: Developing channels of

communication, especially informal channels with
other corporate directors, political connections,
media, public figures.

INFORMATIONAL ROLE
• Monitor: Sorting and selecting information (to
help set the agenda)—phone, meetings, memos,
social functions, mail, public gatherings.

• Disseminator: The passing of relevant

information to subordinates.

• Spokesperson: Has to be able to express it,

have solid verbal skills—right message at right
time.

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Management Slides by KJAN 2014 3/13/2014

DECISIONAL ROLE

• Entrepreneurial: Ability to identify opportunities and

threats—able to do this in diverse situations—work or
leisure.

• Disturbance handler: More information available,

more likely correct decision is made.

• Resource allocator: To divisions or departments;

managers need to have an understanding of what
resources are needed for effective functioning (e.g. budget
gamesmanship).

DECISIONAL ROLE
Negotiator: Managers need precise and relevant
information to facilitate this role. Therefore, the best
managers:
• Place themselves at the centre of a vast network of
contacts that are social, political, occupational,
organisational, international.
• Can sift , sort, and select valuable information.
• Have secretaries who network, who filter and edit
information to avoid overload.

Thank You

Will start in the next class!

The Evolution of Management Theory

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