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M.B.A 2 All right are reserved with CU-IDOL MANAGEMENT PRACTICES AND ORGANISATIONAL BEHAVIOUR Course Code: MBA603 Semester: First SLM Units: 1 E-LESSON : 1 www.cuidol.in Unit-1 (MBA603)

Introduction to Management 33 OBJECTIVES INTRODUCTION Student will be able to :  In this unit we are going to learn about the  Understand the concept of Management . Nature ,Scope and significant of Management.  Apply the Functions / Process of Management.  Analyze the role of Management with Managerial  Under this unit you will Analyze the Process Skills . and Role of Management along with the  Evaluate the Level of Management along with the Managerial skills and the principles of Principles of Management. Management by Henry Fayol and F.W Taylore. www.cuidol.in Unit-1 (MBA603) INASlTl ITriUgThEt aOrFeDreISsTeArNveCdE AwNitDh OCNUL-IIDNOE LLEARNING

TOPICS TO BE COVERED 4 > Introduction to Management > Nature, Scope and Significance of Management > Functions / Process of Management > Role of Managers > Levels of Management > Managerial Skills > Principles of Management : a) Management Principles by Henry Fayol b) Scientific Principles by F.W Taylore www.cuidol.in Unit-1 (MBA603) All right are reserved with CU-IDOL

MANAGEMENT 5 All right are reserved with CU-IDOL MEANING OF MANAGEMENT :  As a noun, it refers to the person(s) who perform the act(s) of management.  It is also a process that involves: planning, organizing, resourcing, directing and controlling different activities for accomplishment of desired goals.  It is also defined in very simple words as „the art of getting things done through people .  According to Koontz and Weihrich, “Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims”. www.cuidol.in Unit-1 (MBA603)

DEFINITIONS OF MANAGEMENT 6 According to Harold Koontz, “Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals and can co-operate towards attainment of group goals”. According to F.W. Taylor, “Management is an art of knowing what to do, when to do and see that it is done in the best and cheapest way”. LETS Discuss Management Nature & Scope…….. www.cuidol.in Unit-1 (MBA603) All right are reserved with CU-IDOL

NATURE& SCOPE OF MANAGEMENT 7 1. Management is an activity. 2. It is universally applicable activity. 3. It is concerned with the group efforts and it is dynamic in nature. 4. It can applied to economic principles. 5. It helps in decision making. 6. It is getting things done through others. 7. It is an integrating process. 8. It help to co-ordinate all activities and resources. www.cuidol.in Unit-1 (MBA603) All right are reserved with CU-IDOL

SIGNIFICANCE OF MANAGEMENT 8 1. Management is goal oriented 2. It is associated with group efforts 3. It is intangible in nature 4. It is an activity and not a person or group of person 5. Management is situational 6. It is universal in nature 7. It is concern with people 8. Management is the combination of art, science and profession www.cuidol.in Unit-1 (MBA603) All right are reserved with CU-IDOL

FUNCTIONS/PROCESS OF MANAGEMENT There are 5 functions of management such as : 9  PLANNING :  DIRECTING :  ORGANIZING :  CONTROLLING :  STAFFING : Unit-1 (MBA603) All right are reserved with CU-IDOL www.cuidol.in

10 PLANNING ORGANIZING  Planning means thinking before doing .which  It includes delegation of authorities, fixing the includes the forecast, formation of objectives, responsibilities of department and establishment policies, programmes, producer and budget. of relationship.  It is a function of determining the steps to obtain the  It is a function which provide the useful things to Objectives of the organization. the business organization.  It help us to think in advance that what should be  There are different resources which are mobilize done, why should be done, when, where, how i.e. man, money, material, machinery, but there should be done. are certain limitations on these resources. www.cuidol.in Unit-1 (MBA603) All right are reserved with CU-IDOL

STAFFING DIRECTING 11  Recruiting right person on the right job .  It involves the decision making, supervising, guidance etc, in the organization . It reflects dynamic  It includes man power planning, recruitment, leadership quality. selection, placement and training.  Issued orders and instructions will be given to the  Progress of the organization depends upon people supervisors, at the time when managers are of organization . performing the function of Direction.  It includes training of personnel with proper  It also leads to the creation of a favorable work, remuneration. environment motivation, managing managers & their work with working environment. www.cuidol.in Unit-1 (MBA603) All right are reserved with CU-IDOL

CONTROLLING 12 All right are reserved with CU-IDOL  It is a process of comparing the actual performance with the standard performance.  In case of any deviations these differences should be detected and necessary steps should be taken.  It involves three elements : 1. Establishing standard of performance. 2. Measuring actual performance with establishment. 3. Remedial measures should be taken www.cuidol.in Unit-1 (MBA603)

ROLE OF MANAGERS 13 Interpersonal Role : Figurehead − It includes the social, ceremonial and legal responsibilities. Leader − It Provides leadership and direction. Liaison − Networks and communicates with internal and external contacts. www.cuidol.in Unit-1 (MBA603) All right are reserved with CU-IDOL

ROLE OF MANAGERS Informational Role : 14  Monitor − Seeks out information related to the organization, and monitors internal teams in in respect of their productivity and well-being.  Disseminator − It Communicates potentially useful information internally in the organization.  Spokesperson − He is the representative of the organization who represent the organization and transmit the information about the goal to the outside public. www.cuidol.in Unit-1 (MBA603) All right are reserved with CU-IDOL

ROLE OF MANAGERS 15 Decisional Role :  Entrepreneur − It Creates and controls the changes within the organization and solve the problems, helps in generating new ideas, and help organization to implementing them.  Disturbance Handler − It Resolves and manages unexpected roadblocks.  Resource Allocator − Allocates funds, assigning staff and other organizational resources.  Negotiator − Involved in direct important negotiations within the team, department, or organization. www.cuidol.in Unit-1 (MBA603) All right are reserved with CU-IDOL

LEVELS OF MANAGEMENT 16 www.cuidol.in Unit-1 (MBA603) All right are reserved with CU-IDOL

MANAGERIAL SKILLS 17 All right are reserved with CU-IDOL Henri Fayol, discussed about the three basic managerial skills such as :  Technical Skill  Human Skill  Conceptual Skill  Figure represent the division of all the three Managerial skills on the different levels of Management www.cuidol.in Unit-1 (MBA603)

MANAGERIAL SKILLS 18 1. Technical Skill :  It is the Knowledge and skills which is used to perform specific tasks. Example : Accountants, engineers, doctors as these all profession need specialized technical skills for their respective professions.  Managers, need technical skills for effective task performance at the lower and middle levels. 2. Human Skill :  It is the Ability to work with, understand, and motivate other people as individuals or in groups.  According to Management theorist Mintzberg, the top (and middle) managers spend their time: 59 percent in meetings, 6 percent on the phone, and 3 percent on tours. 3. Conceptual Skill :  This skill help enterprise to visualize the enterprise as whole.  Creativity, broad knowledge and ability to conceive abstract ideas. www.cuidol.in Unit-1 (MBA603) All right are reserved with CU-IDOL

PRINCIPLES OF MANAGEMENT 19  The 14 principles of Management are based on a fundamental truth.  These principles of management serve as a guideline for decision-making and management actions.  They are drawn up by means of observations and analyses of events that managers encounter in practice.  Henri Fayol was able to synthesize 14 principles of management after years of study. www.cuidol.in Unit-1 (MBA603) All right are reserved with CU-IDOL

PRINCIPLES OF MANAGEMENT The management principles are the statements of fundamental truth based on logic which provides guidelines for 20 managerial decision making and actions. These principles are derived: - On the basis of observation and analysis i.e. practical experience of managers. By conducting experimental studies. There are 14 Principles of Management described by Henri Fayol as follows: . 1) Division of Work : Dividing the full work of the organization among Individuals and creating departments is called the division of work. www.cuidol.in Unit-1 (MBA603) All right are reserved with CU-IDOL

PRINCIPLES OF MANAGEMENT 2) Authority & Responsibility : 21 Authority must be equal to Responsibility. According to Henri Fayol, there should be a balance between Authority(power) and Responsibility (Duties). The right to give orders should not be considered without responsibility. 3) Discipline : Discipline means respecting the rules and regulations of the organization. Discipline may be Self-discipline, or it may be Enforced discipline. To establish discipline, good supervision and impartial judgment are needed. www.cuidol.in Unit-1 (MBA603) All right are reserved with CU-IDOL

PRINCIPLES OF MANAGEMENT 22 4) Unity of Command : According to this principle, a subordinate (employee) must receive orders from only one superior (boss or manager). 5) Unit of Direction : There should be one boss with one Plan for the organization. All activities which have the same objective must be directed by one manager, and he must use one plan. www.cuidol.in Unit-1 (MBA603) All right are reserved with CU-IDOL

PRINCIPLES OF MANAGEMENT 23 6) Subordination of Individual Interests to the General Interest : The interest of one individual or one group should not prevail over the general good. The individual interest should be given less importance, as compared to general interest. www.cuidol.in Unit-1 (MBA603) All right are reserved with CU-IDOL

PRINCIPLES OF MANAGEMENT 24 7) Remuneration : Remuneration is the price received by the services . Pay should be fair to both the employee and the firm. If an organization wants efficient employees and best performance, then it should have a good remuneration policy. 8) Centralization : In centralization, the authority is concentrated only in few hands . However, in decentralization, the authority is distributed to all the levels of management. No organization can be completely centralized or decentralized. www.cuidol.in Unit-1 (MBA603) All right are reserved with CU-IDOL

PRINCIPLES OF MANAGEMENT 25 9) Scalar Chain : The chain of command, sometimes called the scalar chain, is the formal line of authority, communication, and responsibility within an organization. 10) Oder : There must be an orderly placement of the resources such as Men and Women, Money, Materials, etc. Human and material resources must be in the right place at the right time. Misplacement will lead to misuse and disorder. www.cuidol.in Unit-1 (MBA603) All right are reserved with CU-IDOL

PRINCIPLES OF MANAGEMENT 26 11) Equity: While dealing with the employees a manager should use kindliness and justice towards employees equally. The equity principle suggests that the managers must be kind as well as equally fair to the subordinates. 12) Stability of Tenure of Personnel : Although it could take a lot of time, Employees need to be given fair enough time to settle into their jobs. An employee needs time to learn his job and to become efficient. www.cuidol.in Unit-1 (MBA603) All right are reserved with CU-IDOL

PRINCIPLES OF MANAGEMENT 13) Initiative : 27 Without limits of authority and discipline, all levels of staff should be encouraged to show initiative. This is because an initiative gives satisfaction to the employees and brings success to the organization. It allows the subordinates to think out a plan and do what it takes to make it happen. 14) Esprit De Corps : Esprit de Corps means “Team Spirit”. Therefore, the management should create unity, co-operation, and team-spirit among the employees. They should avoid dividing and rule policy. www.cuidol.in Unit-1 (MBA603) All right are reserved with CU-IDOL

PRINCIPLES OF SCIENTIFIC MANAGEMENT 28  Frederick Winslow Taylor (20 March 1856-21 March 1915), widely known as F. W. Taylor, was an American mechanical engineer who sought to improve industrial efficiency.  He is regarded as the father of scientific management, and was one of the first management consultants. He have given the Scientific principles of Management defined as follows : Science not rule of thumb - There should be scientific study and analysis of each element of job rather than adopting old rule of the thumb approach on a hit and miss method. Encourage “thinking before doing”. Harmony not discord - There should be complete harmony and proper understanding between management and workers in achieving the organization goals. www.cuidol.in Unit-1 (MBA603) All right are reserved with CU-IDOL

PRINCIPLES OF SCIENTIFIC MANAGEMENT 29 Cooperation not individualism - Taylor emphasized on the importance of cooperative group effort between the management and workers in achieving the organization's goals and not individualism. Development of workers to their greatest efficiency and prosperity/ Mental revolution - The management should scientifically select the workers; assign job as per their physical, mental and intellectual capability and potential; and train them as per the job requirement. www.cuidol.in Unit-1 (MBA603) All right are reserved with CU-IDOL

MULTIPLE CHOICE QUESTIONS 1) ………………… determines in advance what should be done, why, where and how it 30 should be done. A) Directing C) Planning B) Controlling D) Staffing 2) Which one of the following is Management principle of Henry Fayol states that the employee (subordinates) should receive order from one boss……. A) Rule of thumb C) Unity of Command B) Unity of Direction D) Equity 3) .……………….. skills involve the implementation of plan and use of available resources. A) Human relation C) Administration B) Computer D) Conceptual 4) Knowledge of hardware and software is concerned with ……………….. Skills. A) Computer C) Administration B) Conceptual D) Human relation Answers: 1.(c) , 2.(c) , 3. (c) , 4. (a) www.cuidol.in Unit-1 (MBA603) All right are reserved with CU-IDOL

SUMMARY 31  Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way.  Management functions are Planning, Organizing, Staffing, Directing, & Controlling.  There are three levels of Management i.e. Top, Middle and Lower Level  Today‟s manager requires various types of skills to be successful in the business viz. 1. Technical Skill 2. Human Skill 3. Conceptual Skill www.cuidol.in Unit-1 (MBA603) All right are reserved with CU-IDOL

SUMMARY  The 14 principles of management given by Henry Fayol are as follows : 32 1) Division of Work 8) Centralization 2) Authority and Responsibility 9) Scalar Chain 3) Discipline. 10) Order 4) Unity of Command 11) Equity 5) Unity of Direction 12) Stability of Tenure of Personnel. 6) Subordination of Individual Interests to the General Interest 13) Initiative 7) Remuneration 14) Esprit De Corps  The scientific Principles given by F.W Taylore are as follows : 1) Science, Not Rule of Thumb: 2) Harmony, Not Discord 3) Mental Revolution 4) Cooperation, Not Individualism www.cuidol.in Unit-1 (MBA603) All right are reserved with CU-IDOL

FREQUENTLY ASKED QUESTIONS Q1. How Henry Fayol describe the various principles which need to be followed to make organisation work3 3 efficiently. Ans: Henry Fayol have given 14 different Principles which need to be followed to run an organisation efficiently such as 2) Authority and Responsibility 3) Discipline and so on…. Division of Work For further details Refer to the SLM. Q2. How management is considered to be the very important part of organisation success. Ans: Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way. Management functions are Planning, Organizing, Staffing, Directing, & Controlling. For further details Refer to the SLM. Q3. How F.W Taylor contribute the field of Management. Ans: F.W Taylor have given the scientific Principles such as 1) Science, Not Rule of Thumb: 2) Harmony, Not Discord 3) Mental Revolution 4) Cooperation, Not Individualism For further details Refer to the SLM. www.cuidol.in Unit-1 (MBA603) All right are reserved with CU-IDOL

REFERENCES 34 All right are reserved with CU-IDOL  Robbins P Stephen, Organizational Behaviour, 15thedition, Prentice Hall, New Delhi.  Koontz – Principles of Management (Tata McGrew Hill, 1st Edition2008)  Robbins & Caulter – Management (Prentice Hall of India, 8thEdition)  Aswathappa K, Organizational Behavior, Himalaya Publishing House, Mumbai  Luthans Fred, Organizational Behaviour, McGraw Hill Book Co, New Delhi.  Prasad L M, OrganisationalBehaviour, Sultan Chand Publications. www.cuidol.in Unit-1 (MBA603)

35 THANK YOU For queries Email: [email protected] www.cuidol.in Unit-1 (MBA603) All right are reserved with CU-IDOL