Principles of Management
Principles of Management
Principles of Management
(Course Code:10AL51)
Department of IE & M
JSS Academy of Technical Education, Bengaluru-560060
TEXT BOOKS:
REFERENCE BOOKS:
• Levels of Management.
– Organizing
– Staffing
– Directing (Leading)
– Controlling (POSDC)
Planning
Controlling Organising
Directing Staffing
Functions of management
Planning is the process of setting goals, and charting the best way of action for achieving the
1 Planning
goals.
Organizing is the process of allocating and arranging work, authority and resources, to the
2 Organizing
members of the organization so that they can successfully execute the plans.
Staffing is the process of recruiting /selecting the right person for the right job at the right time in
3 Staffing
the right place.
Leading/
4 Leading involves directing, influencing and motivating employees to perform essential tasks.
Directing
Controlling is the process of devising various checks to ensure that planned performance is
5 Controlling
actually achieved. It involves ensuring that actual activities conform to the planned activities.
These definitions when expanded have these implications:
• Efficiency - getting the most output from the least amount of inputs.
• “doing things right”.
• concerned with means.
• Achieving the objectives in time.
• Art uses the known rules and principles and uses the skill, expertise, wisdom,
experience to achieve the desired result.
Management has got scientific principles which constitute the elements of Science.
Skills and talent which are attributes of Art.
Principles of Management
Fayol’s Principles of Management
3. Unity of Command
4. Unity of Direction
• People engaged in the same kind of business or same kind of activities must
have the same objectives in a single plan.
5. Equity
6. Order
8. Initiative
• Employees should not be moved frequently from one job position to another
i.e. the period of service in a job should be fixed.
14 Principles of Henri Fayol
11. Scalar Chain
• Scalar chain is the chain of superiors ranging from the ultimate authority to the
lowest.
14. Centralization
Theory X Theory Y
• Average worker is lazy • Workers are not inherently lazy
• Dislikes work • Do not naturally dislike work
• Will try to do as little as possible • If given the opportunity, will do what is
• Have little ambition and avoid good for the organization.
responsibility
Scope & Characteristics of Management
Scope of Management
• Management plans the activities, coordinates and utilizes the available resources
It should be stable.
It should be transparent.
Organizations are groups of people, with ideas and resources, working toward
common goals.
OR
Deliberate
Distinct Purpose
Structure
People
Manager
Managerial Skills
• Conceptual skills
• Diagnostic, analytical, and critical-thinking skills
• Quantitative reasoning skills
• Time management skills
• Communication skills
• Team skills
• Diversity skills
• Power, political, negotiation, and networking skills
• Motivation skills
• Conflict management skills
• Ethics skills
Familiarity and competence in the use of business skills required for success on the job.
Managerial skills Cont’d
Human /
• Ability to understand other people and interact effectively with them.
interpersonal
skills • Ability to work with other people in teams.
Managerial skills Cont’d
• These skills enable a manager to handle and solve any kind of unforeseen or
Design skills actual problems, that may crop up in the organization.
• Problem solving skill.
Managerial skills Cont’d
Leadership
skills • Ability to influence other people to achieve the common goal.
Skill distribution at various management levels
Roles of manager
Role: a set of expectation for one’s behavior.
• In 1960, Henry Mintzberg conducted a study to understand about the managerial roles.
• He identified 10 managerial roles that are common to all managers.
• These 10 managerial roles are grouped under: Interpersonal, decisional, and informational roles.
Roles of Manager
Inter-personal Role
Decision Role
Disturbance • Take corrective action during disputes or crises; resolves conflicts among
handler subordinates; adapt to environmental crisis.
Informational Role
Top
Management
President, CEO,
Executive
Vice Presidents
Middle Management
Plant Managers, Division Managers,
Department Managers
First-Line Management
Foreman, Supervisors, Office Managers
Least
Important
Important
Planning
Organizing
Top
Staffing
Managers
Directing
Controlling
Planning
Organizing
Staffing
Middle
Managers
Directing
Controlling
Planning
Organizing
Staffing
First-Line
Directing
Managers
Controlling
Importance of management functions to managers in each level
Management & Administration
Management & Administration
In 1776, Adam Smith published The Wealth of Nations, in which he argued the
economic advantages that organizations and society would gain from the division
of labor (or job specialization)—that is, breaking down jobs into narrow and
repetitive tasks. Using the pin industry as an example, Smith claimed that 10
individuals, each doing a specialized task, could produce about 48,000 pins
a day among them.
Late 18 century when machine power was substituted for human power, a point in
history known as the industrial revolution, it became more economical to
manufacture goods in factories. Large efficient factories needed someone to
forecast demand, ensure that enough material was on hand to make products,
assign tasks to people, direct daily activities, and so forth. That “someone” was a
manager.
Classical Approaches
• The first studies of management, often called the classical approach.
• Based on the belief that employees have only economical and physical needs.
• Social needs and need for job satisfaction does not exists/unimportant.
• Mainly concerned with increasing efficiency of workers.
• Classical approach includes scientific, administrative & bureaucratic management.
Scientific
Focuses on the ‘One Best Way” to do a job.
Management
Administrative
Focuses on the Manager & Basic Managerial Functions.
Management
Bureaucratic
Focuses on how to structure the organization better.
Management
Classical Approach
F.W. Taylor
Henry Gantt
Henri Fayol
General Administrative
Theories
Max Weber
Scientific Management
Frederick Winslow Taylor (Contribution to Modern Management Theory-1911)
Use of scientific methods to define the “one best way” for a job to be done.
Frederick Winslow Taylor (Contribution to Modern Management Theory-1911)
Background
• Frederick Winslow Taylor (20 march 1856 - 21 March 1915) known as F.W.
• Taylor was hired by the Bethlehem Steel Company to increase the output of one of the larger
• In this experiment, workers used to loaded “pigs” of iron (each weighing 12.5 tons) onto rail cars.
• Taylor believed that by scientifically analyzing the job to determine the “one best way” to load pig iron.
Pig-Iron Experiment
The Story
• Taylor went down to the yard, offered a few of the best workers double wage for the day if they
would participate in his experiment.
• Excited about the money, the workers loaded a whopping 16.5 tons in 45 minutes.
• Each worker should load 47.5 tons of pig iron per day with extra pay for reaching the goal and
penalties for failing.
• Unfortunately, the workers were not excited about needing to work 4x harder.
• To prove it was possible, Taylor hired a new man with a 60% rise in wages. After an intense
day, the new man loaded 45.75 tons, almost hitting the quota.
• Taylor decided he had succeeded.
Pig-Iron Experiment
By a systematic resting time and improved methods average productivity was raised from 12.5
By putting the right person on the job with the correct tools and equipment, having the worker follow
his instructions exactly, and motivating the worker with an economic incentive.
Frederick Winslow Taylor (Contribution to Modern Management Theory-1911)
1. Develop a science for each element of an individual’s work to replace the old rule-of
thumb method.
Frederick Winslow Taylor
2. Scientifically select, then train and develop the worker. (1856-1915)
3. Heartily cooperate with the workers so as to ensure that all work is done in accordance
4. Divide work and responsibility almost equally between management and workers.
Frank B Gilbreth & Lillian M Gilbreth
Frank B Gilbreth
Gilbreth’s new methods, bricks are Typical construction site in Boston Building constructed by Frank at
arranged to be grabbed easily. before Gilbreth’s New method. MIT in record time.
Frank B Gilbreth & Lillian M Gilbreth
• Followers of Taylor
• His work had great impact on medical surgery, by drastically reducing the
workplace.
Henri Fayol
General Administrative
Theories
Max Weber
General Administrative Theories (Henry Fayol)
Behavioral Approach
Early OB Advocates
Hawthorne Studies
OB
• The field of study that researches the actions (behaviour) of people at work is
called organizational behaviour (OB).
• People were the most important asset of the organization and should be managed
accordingly.
Result :
– Worker productivity was stopped with the light levels reached moonlight intensity.
Conclusions:
• Under these test two small groups of six female telephone relay
assemblers were selected.
• Each group was kept in separate rooms.
• They were allowed to choose their own rest periods and to give Women in the relay test assembly room
suggestions.
• Output increased in both the control rooms.
• The researchers thought that the efficient workers would put pressure
on the less efficient workers to complete the work.
• However, it was found that the group established its own standards of
output, and social pressure was used to achieve the standards of output.
CONCLUSIONS OF HAWTHORNE STUDIES / EXPERIMENTS
• The informal relations among workers influence the workers behavior and performance.
• Employees will also work more efficiently, when they believe that the management is interested in
their welfare.
• When employees are treated with respect and dignity, their performance will improve.
• Financial incentives alone cannot increase the performance. Social and Psychological needs must
also be satisfied in order to increase productivity.
• Good communication between the superiors and subordinates can improve the relations and the
productivity of the subordinates.
• Special attention and freedom to express their views will improve the performance of the workers.
Quantitative Approach
– Used quantitative techniques to improve decision- making.
– W. Edwards Deming and Joseph M. Duran’s ideas became the basis for total
Contemporary
Approach
System Approach
Contingency Approach
System Approach
The Systems Approach Defines a system as a set of interrelated and interdependent parts
arranged in a manner that produces a unified whole.
• Closed system : A system that is not influenced by and does not interact with its environment.
• The contingency approach says that organizations are different, face different situations
• If, this is the way my situation is; then, this is the best way for me to manage in this situation.
Contingency Approach / situational approach
Contingency Variables
Individual Individuals differ in terms of their desire for growth, autonomy, tolerance of ambiguity,
Differences and expectations.
End of Module