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MG PRINICPLES OF MANAGEMENT

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Presentation on theme: "MG PRINICPLES OF MANAGEMENT"— Presentation transcript:

1 MG 2351- PRINICPLES OF MANAGEMENT
Jansons Institute of Technology

2 UNIT 1 OVERVIEW OF MANAGEMENT
Definition of Organization Organization and the environmental Factors Definition of Management Managing Globally Management and Administration Strategies for International Business. Role of Managers Evolution of Management Thought

3 Definition of Organization

4 Organization “An Organization is a social unit or human grouping deliberately structured for the purpose of attaining specific goals” Amitai Etzioni

5 Types of Organization Organization which benefits of their owners:
All business organizations fall in this category. Organization which benefits of their members: A wide class of unions, cooperatives and clubs. Organization which benefits of their clients: Insurance companies, private schools etc… Organization which benefits of their whole society: Governmental departments, the armed services and police.

6 Definition of Management - Science or Art

7 Management “Management is the process of designing and maintaining of an environment in which individuals working together in groups efficiently accomplish selected aims”. -Koontz and weihrich

8 Management

9 Levels of Management

10 What is science? The following characteristics are essential for a subject to be recognized as a science. The existence of a systematic body of knowledge with array of principles. Based on scientific enquiry. Principle should be verifiable. Reliable basis for predicting future event

11 What is an art? Art means application of skill in finding a desired result Management process involves the use of practical knowledge and personal skills. Management is creative. Application of practical knowledge and certain skills helps to achieve concrete results.

12 Management is science or an art ?

13 Management is both of science and art
Management is a science because it contains general principles. It is also and art because it requires certain personal skills to achieve desired results

14 MANAGEMENT AND ADMINISTRATION

15 MANAGEMENT AND ADMINISTRATION
Administration is concerned with decision-making and policy formulation, while management is concerned with the execution of what has been laid down by the administrators. Management is the generic term for total process of executive control involving responsibility for effective planning and guidance of the operations of an enterprise

16 MANAGEMENT AND ADMINISTRATION
S.No MANAGEMENT ADMINISTRATION 1 It is the lower level functions It is the higher level functions 2 It refers the employees It refers to the owners of the organization 3 Management is concerned with execution of decision Administration is concerned with decision making 4 It acts through the organization It acts through the management 5 Management executes these policies into practice Administration lays down broad policies and principles for guidance

17 Role of Manager

18 Role of Manager Interpersonal Roles Informational Roles
Decisional Roles

19 Role of Manager Interpersonal Roles
Leader – Responsible for staffing, training, and associated duties. Head – The symbolic head of the organization. Liaison -Maintains the communication between all contacts and informers that compose the organizational network

20 Role of Manager Informational Roles
Monitor – Personally seek and receive information, to be able to understand the organization. Disseminator – Transmits all import information received from outsiders to the members of the organization. Spokesperson – On the contrary to the above role, here the manager transmits the organization’s plans, policies and actions to outsiders

21 Role of Manager Decisional Roles
Entrepreneur – Seeks opportunities. Basically they search for change, respond to it, an exploit it. Negotiator – Represents the organization at major negotiations. Resource Allocator – Makes or approves all significant decisions related to the allocation of resources. Disturbance Handler – Responsible for corrective action when the organization faces disturbances.

22 Development Management Thought

23 Evolution of Management Taughts
The origin of management as a discipline was developed in the late 19th century The different approaches of management are Classical approach Behavioral approach Quantitative approach Systems approach Contingency approach

24 Classical Approach

25 F.W. Taylor’s scientific Management

26 F.W. Taylor’s Fredrick Winslow Taylor is called “father of scientific management.” Taylor approach was based on the basics principles Observation and measurement should be used in the Organizations. The employees should be scientifically selected and trained Due to scientific selection and training of employee has the opportunity of earning a high rate of pay.

27 Principles of scientific management (or) Contributions in Scientific Management
Separation of planning and doing Functional foremanship Job analysis Time study Method study Motion study Fatigue study Standardization Scientific selection and training Financial incentives Economy Mental Revolution

28 Contributions in Scientific Management (or) Principles of scientific management
Time and motion study Differential Payment Drastic reorganization of supervision Scientific Recruitment and Training Intimate Friendly Cooperation between the Management and Workers

29 Henry Fayol’s Contribution

30 Henry Fayol’s Henry Fayol, a French industrialist concentrated on that administrative aspect of scientific management Fayol’s Concentrate into two parts of Management The first is concerned with the theory of administration in which Fayol divided the total industrial activities into six categories The second is concerned with the fourteen principles of management

31 Theory of Administration
Technical (Production, Manufacture) Commercial (Buying, Selling, Exchange) Financial (Search for and optimum use of capital) Security (Protection of property and person) Accounting (Balance sheets, Cost statistics) Management (Planning, Organizing, Coordinating, Directing, Controlling)

32 Fourteen Principles of Management (or) Administrative Management
Division of work. Authority and Responsibility. Discipline Unity of Command. Unity of Direction. Subordination of individual interest to general interest. Remuneration of personnel Centralization. Scalar chain. Order. Equity. Stability of tenure of personnel. ( Job Security) Initiative Esprit decorps.(Unity)

33 Administrative Management (or) Fourteen Principles of Management
Division of Work Produces more and better work with the same effort Entrusted to specialist in related field

34 Administrative Management (or) Fourteen Principles of Management
Authority and responsibility The right to give order and power to exact obedience Individual who is willing to exercise authority, must also be prepared to bear responsibility to perform work in the manner desired. Discipline Absolutely essential for the smooth running of business. It means obedience to authority, observance of the rules of service and norms of performance, respect for agreements, sincere efforts for completing the given job, respect for superiors.

35 Unity of command Unity of direction Remuneration Centralization
Each employee should receive instructions about a particular work from one superior only Unity of direction Should not pull in different direction. I It should follow the organizational goals Remuneration Centralization Objective to pursue should be the optimum utilization of all facilities of the personnel Scalar chain Hierarchy of authority from highest to lowest superiors in relation to subordinates at various levels

36 Order Equity Initiative Right place for everything and for every men
Scientific selection of competent personnel, correct assignment of duties to personnel and good organization Equity Equality of fair treatment Results form a combination of kindness and justice Initiative Means freedom to think out and execute plan Innovation which is hallmark of technological progress, is possible only where the employees are encouraged to take initiative.

37 Organization and the environmental Factors

38 Organization and the Environmental Factors
External - Macro External - Micro Internal

39 The Organizational Domain

40 CLASSIFICATION OF ENVIRONMENTAL FACTORS
External - Macro Political Factors Economic Factors Social Factors Technological Factors External - Micro Shareholders Suppliers Distributors Customers Competitors Media INTERNAL Resources Capabilities Culture

41 The Organization &Environment

42

43 Political factors Tax Policy Employment Laws Environmental Regulations
Trade Restrictions And Tariffs Political Stability

44 Economic Factors Economic Growth Interest Rates Exchange Rates
Inflation Rate

45 Social Factors Health Consciousness Population Growth Rate
Age Distribution Career Attitudes Emphasis On Safety

46 Technological Factors
R&D Activity Automation Technology Incentives Rate Of Technological Change

47 Managing Globally & Strategies for International Business

48 The Global Environment
In the past, managers have viewed the global sector as closed. Each country or market was assumed to be isolated from others. Firms did not consider global competition, exports. Today’s environment is very different. Managers need to view it as an open market. Organizations buy and sell around the world. Managers need to learn to compete globally.

49 Managing Across the Globe: Why?
Great opportunities in the international market Other countries having population explosions Strong profit potential Growing trend – Across borders business relationships Slowdown in industrialized nations Growth in newly industrialized and developing countries

50 Managing Globally -Three perspectives or attitudes
An Ethnocentric Attitude is the parochialistic (opinions) belief that the best work approaches and practices are those of the home country (the country in which the company’s headquarters are located). A Polycentric Attitude is the view that the managers in the host country (the foreign country where the organization is doing business) know the best work approaches and practices for running their business. A Geocentric Attitude is a world-oriented view that focuses on using the best approaches and people from around the globe. To be a successful global manager, an individual needs to be sensitive to differences in national customs and practices

51 MNC VS TNC

52 MNC TNC

53 Stages of Internationalization
Global sourcing Exporting or Importing Licensing and franchising Alliance Joint Venture Foreign subsidiary

54 MANAGING IN A GLOBAL ENVIRONMENT -CHALLENGES
The Legal-Political Environment The Economic Environment The Cultural Environment National culture

55

56

57 Management - A “Every morning in Africa, a gazelle wakes up and knows it must run faster than a lion or it will be killed. Every morning a lion wakes up and knows that it must outrun the slowest gazelle or it will starve to death. It doesn’t matter whether or not you are a gazelle or lion. When the sun comes up, you better start running.” Jack Perkowski, Chairman and CEO, ASIMCO Technologies

58 Compiled by D. Vasanth kumar ,M
Compiled by D.Vasanth kumar ,M. Magesh & E Prabakaran Assistant Professor Jansons Institute of Technology


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