Presentation on theme: "MG 2351- PRINICPLES OF MANAGEMENT Jansons Institute of TechnologyJansons Institute of Technology."— Presentation transcript:
MG 2351- PRINICPLES OF MANAGEMENT Jansons Institute of TechnologyJansons Institute of Technology
UNIT 1 OVERVIEW OF MANAGEMENT Definition of Organization Definition of Management Management and Administration Role of Managers Evolution of Management Thought Organization and the environmental Factors Managing Globally Strategies for International Business.
Definition of OrganizationDefinition of Organization
Organization “An Organization is a social unit or human grouping deliberately structured for the purpose of attaining specific goals”. -Amitai Etzioni
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.
Definition of Management - Science or Art
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
Levels of Management
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
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.
Management is science or an art ?
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
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
MANAGEMENT AND ADMINISTRATION S.NoMANAGEMENTADMINISTRATION 1It is the lower level functionsIt is the higher level functions 2It refers the employeesIt refers to the owners of the organization 3Management is concerned with execution of decision Administration is concerned with decision making 4It acts through the organizationIt acts through the management 5Management executes these policies into practiceAdministration lays down broad policies and principles for guidance
Role of ManagerRole of Manager
Role of Manager Interpersonal Roles Informational Roles Decisional Roles
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
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
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.
Development Management Thought
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
F.W. Taylor’s scientific Management
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.
Principles of scientific management (or) Contributions in Scientific Management 1. Separation of planning and doing 2. Functional foremanship 3. Job analysis 1. Time study 2. Method study 3. Motion study 4. Fatigue study 5. Standardization 5. Scientific selection and training 6. Financial incentives 7. Economy 8. Mental Revolution
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
Henry Fayol’s Contribution
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
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)
Fourteen Principles of Management (or) Administrative Management 1. Division of work. 2. Authority and Responsibility. 3. Discipline 4. Unity of Command. 5. Unity of Direction. 6. Subordination of individual interest to general interest. 7. Remuneration of personnel 8. Centralization. 9. Scalar chain. 10. Order. 11. Equity. 12. Stability of tenure of personnel. ( Job Security) 13. Initiative 14. Esprit decorps.(Unity)
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
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.
Unity of command 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
Order 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.
Organization and the environmental Factors
Organization and the Environmental Factors External - Macro External - Micro Internal
The Organizational Domain
CLASSIFICATION OF ENVIRONMENTAL FACTORS External - Macro External - Micro INTERNAL Political Factors Economic Factors Social Factors Technological Factors Shareholders Suppliers Distributors Customers Competitors Media Resources Capabilities Culture
The Organization &Environment
Political factors Tax Policy Employment Laws Environmental Regulations Trade Restrictions And Tariffs Political Stability
Managing Globally & Strategies for International Business
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.
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
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
MNC VS TNC
Stages of Internationalization Global sourcing Exporting or Importing Licensing and franchising Alliance Joint Venture Foreign subsidiary
MANAGING IN A GLOBAL ENVIRONMENT -CHALLENGES The Legal-Political Environment The Economic Environment The Cultural Environment National culture
“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 Management - A
Compiled by D.Vasanth kumar,M. Magesh & E Prabakaran Assistant Professor Jansons Institute of Technology