Principles of Management

Lets start boiling water on our gas stove and getting our notes within minutes😌

Okay!!

To get completely into the syllabus of this subject Principles of Management lovably called as POM Click here

We will start with unit-1

Topic-Management

Unit - 1

Management

In simple terms, management is an art of getting things done by others.

The term "management" stands for the act of planning,organising,directing & controlling the activities of human beings and physical resources in order to attain a common objective.

According to Louis Allen, "Management is what a manager does."

According to James D. Mooney & Allan C. Reiley, "Management is the art of directing and inspiring people"

《 HEADINGS COVERED UNDER THIS TOPIC ARE Nature, Scope, Process/Functions, Levels, Significance & Managers with their functions and of course "The great management theories"😌.》

Nature of management

1. Continuous process

As all the functions like planning, organising, staffing, etc are inter-dependent and never ending.

2. Pursued as discipline

In recent times, status of management as discipline is increasing as it provides certified info and knowledge to its practioners.

3. Pursued as career

This is so as management has now diverse and exponential growth opportunites.

4. Considered as Art & Science

"Art" as such because it invloves different skillsets.

"Science" as such beacuse it is an organised body of knowledge working on some facts and figures.

5. Goal-oriented

Purpose driven approach.

6. Art of guiding

A manager guides and inspires his sub-ordinates towards the common goal decided to achieve.

7. A human activity

As managment functions can only be performed by individuals.

8. Denotes authority of mangers

Because authority compels people to work hard and behave in certain specified manner.

9. Universal phenomenon

It is universally (all over the world in all aspects) practised.

10. Ensures better coordination

Aids in better understanding through effective directing communications.

11. Dynamic activity

Complex and continous and long-lasting process requiring critical thinking skills.

12. Primarily a "Leadership" activity

A manager is a leader leading his team.

13. Aids in decision-making

Management processes are vital in final decision-making.

14. Now also persued as a full-fleged profession

What explanation do you need of this point🤷‍♂️

Why are you doing BBA.....manager banna h na??

Okay

So lets come up to 2nd heading i.e. Scope

Scope of Management

Any area, aspect or genre which soever requires management to get carried out has scope of management.

1. Activity point of view

Planning

Organising

Staffing

Directing

Controlling

All these aspects do have scope of management at utmost. All these activites require managers with excellent skillsets and knowledge.

2. Functional areas of management

Functional management

Personnel management

Purchasing management

Production management

Maintainance management

Logistics management

(Warehousing, inventory, transportation, etc)

Marketing management

Office management

Development management

(Researches, experiments, etc)

3. Management is an inter-disciplinary approach

Management is seeking more and more popularity as a career so as it is building an inter-disciplinary approach. Like studying BBA & MBA to pursue management as a career us most common exmaple of this approach.

4. Universality of management

Being universally used and applied its scope is limitless too. Even from a CEO of any company to a house-wife all need to apply managerial approaches.

5. Agent of change

New concepts and eradication of traditional methods or customs can be done through effective management of new implemented and proposed thoughts.

Okay

Letssss come to our 3rd heading😌

Management process/functions

1. Planning

2. Organising

3. Staffing

4. Directing

5. Controlling

These all will be explained soooooo deeply with dozens of subheadings😅 in upcoming units of POM notes section.

Lets move to next heading!

Levels of management

Levels are decided by the chain of command which represents the power of an individual within an organisation. There are mainly 3 levels:

1. Top-level management

Leading company heads like CEO, BOD, equity holders.

●Policy makers

●Goal setters

●Plan formulators

●External communicators(like meeting with investors,creditors,etc)

2. Middle-level management

Departmental heads like purchase manager, sale manager, production manager, finance manager.

●Link b/w top and lower level management

●Policy implementors

●Task setters

●Plan regulators

●Internal communicators

3. Lower-level/supervisory management

Supervisory staff like sales officers, HR, workers.

●Policy executors

●Task performers

●Plan completers

Bs kro kitne points chahiye🤷‍♂️

Next heading now》

Significance of Management

Management plays an important role in the growth and welfare of an organisation, hence, it is sigificantly proving these points:

1. Motivates to take initiative

2. Encourages innovation

3. Helps in growth and expansion

4. Increases the standard of living of employees

5. Improves corporate image

6. Encourages motivation

7. Reduces wastage of resources

8. Improves efficiency

9. Enhances employee-employer relations

10. Decreases employee turnover & absentism

11. Fosters teamwork

12. Enhances coordination and smoothes control process

Management versus administration

The terms "management" and "administration" have often been used interchangeabally giving rise to many controversies.

There has been many controversies by different management experts but the basic distinction between administration and management is mainly theoretical. They are used interchangeably in practical applications.

Administration is used more often in the public or government sector but management is more popular term amongst business setup where profitability is the most significant.

Basically both management and administration are built on the same framework of functions and principles. Hence, used interchangeably in general life.

Managers

Individuals who are responsible for carrying out various functions of management (such as planning organising staffing directing and controling) are known as managers.

Functions of a manager:

Setting goals and planning

Manager is expected to plan a task according to the predetermined goal.

Organising the group

The basic function of a manager is to organise his team members or subordinates in order to achieve the organisational goal.

Motivating and communicating

Giving guidance and mentoring subordinates to ensure the effective flow of work.

Measuring performance

Comparing the employee performance from the standard target or pre determined goal.

Developing people

Mentor and guide his subordinates in order to achieve their overall development.

Establishment of effective coordination and control

Directing and controlling his team members to establish appreciable coordination among them for work.

Arrangement of capital

Funds are the life blood of any business so a managers is expected to utilise and arrange them at minimal cost.

Social responsibilities of a manager

Responsibilities towards shareholders or owners

To ensure that reasonable dividend is paid to every shareholder.

To ensure a promising growth record.

Keep all the shareholders informed about new and important changes.

Protecting companies assets and goodwill.

Responsibilities towards workers or employees

Pay fair wages.

Provide good working condition and adequate service benefits.

Recognise their rights and performance.

To provide growth opportunities.

Responsibility towards customers

Regular flow of goods and services,

Courteous services,

Fair trade practices,

And need satisfaction.

Responsibilities towards creditors/suppliers

Should furnish accurate information about companies financial status.

Should repay loans promptly.

Informing about all important and relevant changes.

Contracting on fair terms and conditions.

Responsibilities towards government, society or community

Should abide by government rules, laws and regulations.

Should follow fair trading practices.

Should efficiently use resources.

Show ethical behaviour towards society or community.

Always focus on improvement of local environment from wherever they are seeking resources.

Managerial skills

No doubt, an individual's talent and skills are the only way by which an idea can be transformed into a successful implementation.

Here are some skills required to be a good and effective manager:

Technical skills

These skills are also known as hard skills.

Basically which mean to have the knowledge relevant to the task a manager is required to perform.

For example: engineer, architects, accountants, etc

Human skills

Human skills makes a manager social and friendly towards his subordinate. A manager with contented human skills is always more impacting and effective.

Conceptual skills

These skills are also known as soft skills.

Basically soft skills or conceptual skills are related to ideas. Developing new and innovative ideas is all what conceptualization mean.

Skills are sometimes a learned response and sometimes are acquired from the surroundings. Differing according to the relevant environment and situation of different managers, every manager have some specialties.

Approaches to management

As management principles are very closely linked to the human behaviour so they keep on changing and evolving since years.

These changes and evolutions are taking place for more than many countable era. Such management principles were also been traced in the past and the evolution in these principles is still going on.

Here, we are going to study some major approaches in the field of defining management principles and thoughts by some great Management Guru's which is divided into three kind of approaches :

Classical approach

Classical approach is basically concerned with all the approaches made by the management Guru's in the past and are still in use and considered as of utmost effectiveness.

1. Scientific management by FW Taylor

2. Administrative Management by Henry fayol (also known as 14 principles of Henry Fayol)

3. Bureaucracy/ Bureaucratic management by Max Weber

For furthur detailed description you may visit here please😌

Behavioural approach

Behavioral approach comprises of all the studies and theories which are done in reference to the human behaviour. Thus, also known as "Behavioural science approach" or "Human resource approach"

As human behaviour is very complex in nature; thus, behavioral approaches are formed on the basis of theories of classical approaches.

Main contributors to the behavioural approach are :

Elton Mayo (Hawthorne studies)

Hawthorne studies conducted by George Elton Mayo is also known as Hawthorne experiments.

He is known as the "Father of human relations movement".

His Hawthorne studies involved 4 interconnected experiments, which are as follows :

Illumination experiment

This experiment got its name because light was selected by researchers for conducting the study.

Conducting:

It was done on two separate groups of employees in which one was given proper lighting facility and one group was given inconsistent and low lighting facilities

Result :

It didn't reflected any major affect in the productivity of the workers. So, the next experiment was conducted.

Relay room experiment

Conducting :

For this 6 female employees were chosen. This was done to find the physical factors (such as rest intervals, room temperature, incentives, working hours, etc) which affect the productivity of employees.

Result :

Researchers found that there is no effective or strong relationship between the physical factors and employees productivity

Bank wiring observation room experiment

Conducting :

Basic objective was to identify the actual factor affecting employees productivity. For this purpose, they choosed 14 employees and compared their performance reports of present from the past ones.

Result :

Researchers got to know that there are some individual factors which affect their productivity such as informal grouping, report distortion, etc.

Interview programme

Conducting :

A questionnaire was prepared for this program and distributed among 20,000 employees who were asked to answer every question without any hesitation.

Result :

The outcome of this experiment as well as the overall outcome of the studies conducted by Elton Mayo is that the most affecting factor to every worker was the "Social treatment" they were being given. Wether it is the teamwork OR non financial incentives like status, rewards, appreciation etc

Douglas Mc Gregor (Theory X and Theory Y)

Maslow's Need Hierarchy Theory

Henzberg's Motivation-hygiene Theory

All these three theories are explain in Unit - 3 under the topic motivation. As, these are the most asked from that topic.

Modern / contemporary approach

The modern approach of Management theories significantly focuses on the complex issues of the organisations and the individuals working in that organisation.

These are made with an objective of universal applicability and to be proved as effective in almost of the most significant aspects of an organisation.

System approach

System means a box of several interconnected parts which have different identity and purpose OR simply, system means organising any enterprise or company into such a form which facilitates proper sequence of all the activities carried out for the goal of that business.

There are 6 main components of system approach, which are :

1. Subsystems

Every system consist of some minor systems within it made according to the needs of the main system.

2. Synergy

Energy means the combined efforts of all the subsystems within the main system done to achieve the organisational goal.

3. Open and closed systems

A system interacting with other business environments is open system.

AND

A system which does not interact with its environment is a closed system.

4. System boundary

System boundary is a factor which distances a system from its other business environments.

5. Flow

Flow means the way in which different aspects like information, human energy, materials, etc communicates in a system.

6. Feedback

Feedback is always the most important controlling factor of all the systems whether in the forms of formal reports or informal conversations.

"This whole system approach was basically been conducted to encourage the managers for taking rational and logical decisions in regards to the employees performance and the situations faced by any business."

Social system approach

It was founded by sociologist named Vilfredo Pareto.

This system was founded in order to understand the different behavioural patterns of the different employees working in an organisation coming from different cultures and diversity to attain an environment of cooperation in the workplace.

Contingency approach

Contingency approach can also termed as situational approach.

This basically focuses on the best action for every situation which meets the requirement of internal and external business environment.

Simply it focuses on furnishing the decision- making capabilities of manager in some situations which were unpredictable while planning for the methods and paths to be followed for accomplishing the goal of the business.

Decision making approach

As all the functions of Management (planning, organising, staffing, controlling and directing) can only be turned effective for gaining the desired result when are conducted through sound decisions.

So, this decision making approach says that :

1. Management is all about making sound and effective decisions

2. Organisational effectiveness is always influenced by the quality of decision made

3. Thus, decision making should be considered as the most important aspect for the survival and development of any business.

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To get in depth knowledge of these topics you can also look into it.

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