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 OrganizationOrganization and the environmental FactorsDefinition of ManagementManaging GloballyManagement and AdministrationStrategies for International Business.Role of ManagersEvolution of Management Thought
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.
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 resultManagement 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.
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.NoMANAGEMENTADMINISTRATION1It is the lower level functionsIt is the higher level functions2It refers the employeesIt refers to the owners of the organization3Management is concerned with execution of decisionAdministration is concerned with decision making4It acts through the organizationIt acts through the management5Management executes these policies into practiceAdministration lays down broad policies and principles for guidance
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.
23 Evolution of Management Taughts The origin of management as a discipline was developed in the late 19th centuryThe different approaches of management areClassical approachBehavioral approachQuantitative approachSystems approachContingency approach
26 F.W. Taylor’sFredrick Winslow Taylor is called “father of scientific management.”Taylor approach was based on the basics principlesObservation and measurement should be used in the Organizations.The employees should be scientifically selected and trainedDue 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 doingFunctional foremanshipJob analysisTime studyMethod studyMotion studyFatigue studyStandardizationScientific selection and trainingFinancial incentivesEconomyMental Revolution
28 Contributions in Scientific Management (or) Principles of scientific management Time and motion studyDifferential PaymentDrastic reorganization of supervisionScientific Recruitment and TrainingIntimate Friendly Cooperation between the Management and Workers
30 Henry Fayol’sHenry Fayol, a French industrialist concentrated on that administrative aspect of scientific managementFayol’s Concentrate into two parts of ManagementThe first is concerned with the theory of administration in which Fayol divided the total industrial activities into six categoriesThe 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.DisciplineUnity of Command.Unity of Direction.Subordination of individual interest to general interest.Remuneration of personnelCentralization.Scalar chain.Order.Equity.Stability of tenure of personnel. ( Job Security)InitiativeEsprit decorps.(Unity)
33 Administrative Management (or) Fourteen Principles of Management Division of WorkProduces more and better work with the same effortEntrusted to specialist in related field
34 Administrative Management (or) Fourteen Principles of Management Authority and responsibilityThe right to give order and power to exact obedienceIndividual who is willing to exercise authority, must also be prepared to bear responsibility to perform work in the manner desired.DisciplineAbsolutely 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 onlyUnity of directionShould not pull in different direction. IIt should follow the organizational goalsRemunerationCentralizationObjective to pursue should be the optimum utilization of all facilities of the personnelScalar chainHierarchy 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 organizationEquityEquality of fair treatmentResults form a combination of kindness and justiceInitiativeMeans freedom to think out and execute planInnovation which is hallmark of technological progress, is possible only where the employees are encouraged to take initiative.
45 Social Factors Health Consciousness Population Growth Rate Age DistributionCareer AttitudesEmphasis On Safety
46 Technological Factors R&D ActivityAutomationTechnology IncentivesRate 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 marketOther countries having population explosionsStrong profit potentialGrowing trend – Across borders business relationshipsSlowdown in industrialized nationsGrowth 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
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