MANAGEMENT PRINCIPLES AND PRACTICES Dr. R. Krishna FT – MBA – NMIMS FIRST TRIMESTER Dr.R. Krishna - Managemen 1 t Principles Definition of Management • Management : On expanding : Manage – men – tactfully Manage – Men – technology Manage – men – as team Manage – competencies Manage – objectives (MBO) Manage – men and things (resources – physical, inanimate) MANAGE – f ( RISKS, REWARDS) Competencies = f (SKATE) (Men/Women- no discrimination) Norway will have by 2007, 40% women in all fields, in govt orgs, in corporates and also in NGOs. This is now made as a law. Dr.R. Krishna - Managemen 2 t Principles • When it comes to manage people, it is said that “people are enigmatic.” • Thus, Management is enigmatic. • Harold Koontz described the present state of management theory as a “jungle.” There can be lots of ambiguity and there will be no recipe book Dr.R. Krishna - Managemen 3 t Principles • MANAGEMENT IS A FUNCTION OF : M = f(RESULTS, FEEDBACK, RESULTS……) MANAGING THE INTERNAL AND EXTERNAL ENVIRONS IN THE BIO-ECOSYSTEMS, THROUGH VARIOUS EFFECTIVE AND EFFICIENT PROCESSES, WITH THE OBJECTIVE OF ACHIEVING LAID DOWN EXPECTED RESULTS. Dr.R. Krishna - Managemen 4 t Principles All is PEOPLE RESOURCE MANAGEMENT • Why? Get into discussion mode: Who Created all that is around us: Except the sun, the moon, air, ocean, sky, stars, and the first human being and the first animals/insects Thereafter the development of clones, artificial insemination, going on the moon, technological advancements and moving towards civilization is all done my people. Dr.R. Krishna - Managemen 5 t Principles Definition of “Management” • By Griffin: “A set of management functions directed at the efficient and effective utilization of resources in the pursuit of organization goals.” Dr.R. Krishna - Managemen 6 t Principles Definition….contd…. • By Koontz and Weihrich: “Management is the process of designing and maintaining an environment in which individuals working together in groups, efficiently accomplish selected aims.” Dr.R. Krishna - Managemen 7 t Principles Peter F. Drucker-Father of Modern Management • Management is an organ, organs can be described and defined only through their functions Dr.R. Krishna - Managemen 8 t Principles • The difference between Management Principles and Management Functions: • “What should I do (principles) to ensure that I do my job (functions) with effectiveness and efficiency.” • Principles are strategies / processes which enable the individual to do their functions better to achieve laid down goals and objectives • GOALS – qualitative achievements • Objectives – could have a mix of quantitative and qualitative Dr.R. Krishna - Managemen 9 t Principles Terry & Franklin… • Management is a distinct process consisting of activities of planning, organizing, actuating, and controlling, performed to determine and accomplish stated objectives with the use of human beings and other resources.” Dr.R. Krishna - Managemen 10 t Principles CONCEPTUAL SKILLS Top level H U TE M CH A NI N Middle level CAL S SKI K LLS Supervisory ILL level/entry level S Dr.R. Krishna - Managemen 11 t Principles Henry Mintzberg… • He has categorized these roles into three groups interpersonal roles Informational roles Decisional roles Description of each of the roles…… Dr.R. Krishna - Managemen 12 t Principles Interpersonal Roles • A manager serves as a figurehead – a symbol; as a leader, ie., hires, trains, encourages, fires, remunerates, judges; and as a liaison between outside contacts and the organizational) Dr.R. Krishna - Managemen 13 t Principles Informational roles • A manager serves as a monitor by gathering information; • As a disseminator of information • As a spokesperson of the organization Dr.R. Krishna - Managemen 14 t Principles Decisional Roles • A manager serves as an entrepreneur by being: An initiator Innovator Problem discoverer Designer of improvement projects As a disturbance handler of unexpected situations As a resource allocator and As a negotiator Dr.R. Krishna - Managemen 15 t Principles • ALL THE THREE ROLES PUT TOGETHER IS CALLED AS: THE MANAGERIAL WORK ACTIVITY APPROACH Dr.R. Krishna - Managemen 16 t Principles • The whole management process is actually an integration of the work activity (Mintzberg) and the management functions • MANAGEMENT FUNCTIONS : Planning, Organization, Co-ordination, motivation, and control are Universal. These functions are performed in all organizations – SMEs, Large, not-for-profit organizations, etc. Dr.R. Krishna - Managemen 17 t Principles Definitions • Planning : Management functions that involves the process of defining goals, establishing strategies for achieving those goals and developing plans to integrate and coordinate activities • Organizing: management function that involves the process of determining what tasks are to be done, who is to do them, how the tasks have to be grouped, who reports to whom, and where decisions are to be made Dr.R. Krishna - Managemen 18 t Principles • Leading : management functions that involves motivating subordinates, influencing individuals or teams as they work, selecting the most effective communicating channels or dealing with any with employee behavior issues • Controlling : Management functions that involving monitoring actual performance, compiling actual to standard, and taking action if necessary • Management process : The set of ongoing decisions and work activities in which managers engage as they plan, organize, lead and control. Dr.R. Krishna - Managemen 19 t Principles The pyramid to the top • Talk of management levels: • Top level • middle level • Front line supervision • Non-managerial work force Dr.R. Krishna - Managemen 20 t Principles Leadership • Blake and Mouton: R1 ---- R2 ------ R3 R1 = RESOURCES R2 = RELATIONSHIPS R3= RESULTS Dr.R. Krishna - Managemen 21 t Principles What is leadership? • A sound way of exercising leadership is through the use of what are called as three Rs – Resources, relationships and results. How a person operates in this context can make a difference between organization success and failure Dr.R. Krishna - Managemen 22 t Principles THE ;LEADERSHIP GRID : Source: Scientific Methods Inc. X & Y axis on a scale of 1 – 9 C High O 1,9 – Country Club Team Mgmt 9,9 N Mgmt C E R 5, 5 N F O Middle of the Road R Management P E O 1,1 Impoverished P Authority Compliance 9,1 low Mgmt L E High Low CONCERN FOR PRODUCTION Dr.R. Krishna - Managemen 23 t Principles How concerns for Production/People affect Leadership Style: 1,9 : Country Club Management : Thoughtful attention to the need of people for satisfying relationships leads to a comfortable, friendly organization atmosphere and work tempo. 1,1 : Impoverished Management : Exertion of minimum effort to get required work done is appropriate to sustain organizational membership 9,1 : Authority Compliance : Efficiency in operations results from arranging conditions of work in such a way that human elements interfere to a minimum degree 9,9 : Team Management : Work accomplishment is from committed people; interdependence to a “common stake” in organization purpose leads to relationships of trust and respect Dr.R. Krishna - Managemen 24 t Principles • 9+9 : Paternalistic management : Reward and approval are granted to people in return for loyalty and obedience; failure to comply leads to punishment OPPORTUNISTIC MANAGEMENT : In this style, organization performance occurs according to a system of exchanges, whereby effort is given only for an equivalent measure of the same. People adapt to the situation to gain maximum advantage from it. (all leadership points ie. 1,1; 1,9;, etc., converge at a new point – OPM) Dr.R. Krishna - Managemen 25 t Principles • THE MOTIVATIONAL DIMENSIONS FOR EACH STYLE – • PLEASE REFER TO LEADERSHIP GRID OF BLAKE AND MOUTON. Dr.R. Krishna - Managemen 26 t Principles Management….. • Is based on a systematic body of knowledge- laws, principles and concepts – • And this knowledge is universal • If a manager has this fundamental knowledge • And knows how to apply it to a given situation • He should be able to perform the managerial functions efficiently and effectively Dr.R. Krishna - Managemen 27 t Principles Management…… • Management Practice is regarded as an art • But, organized knowledge about management is a science • THUS MANAGEMENT IS BOTH AN ART AND A SCIENCE Dr.R. Krishna - Managemen 28 t Principles Management ….. • Is also a profession Separation of ownership from control The rules and regulations framed by the govt to protect citizens from exploitation The growth of trade union movement The desired of business leaders for social status And the Impetus of the scientific management philosophy which stresses the need for technically trained professional managers – contributed to the PROFESSIONALIZATION OF MANAGEMENT. Dr.R. Krishna - Managemen 29 t Principles Most important human activities is managing Mackenzie King remarked: “Labor cannot do anything without capital, Capital nothing without labor and neither Can do anything without the guiding genius of management.” Dr.R. Krishna - Managemen 30 t Principles • This should have enabled you to understand what management is at a fundamental level of definition and understanding…….. • Any questions…… Dr.R. Krishna - Managemen 31 t Principles Evolution of Management Thought • Give a handout titled: “Early streams of Managerial ideas responding to situational demands Put students on discussion mode Dr.R. Krishna - Managemen 32 t Principles Schools of Management Thought • It was during the 20th century