1 Introduction to Principles and Functions of Management (Text Book Chapters – 1 & 2)

Contents Management: Meaning, Principles and Functions of Management. Different Schools of Management and Management Thought.

Getting work done through others Management Is… Effectiveness Efficiency Getting work done through others

Efficiency and Effectiveness

Principles of Management – F.W. Taylor Develop a science for each element of a man’s work, which replaces the old rule-of-thumb method. Scientifically select and then train, teach, and develop the workmen. Cooperate with the men to insure all work is done in accordance with the principles of the science. There is almost equal division of the work and the responsibility between management and workmen.

Time Study Motion Study Time & Motion Studies: Frank & Lillian Gilbreth Time Study Timing how long it takes good workers to complete each part of their jobs. Motion Study Breaking each task into its separate motions and then eliminating those that are unnecessary or repetitive.

14 Principles of Management – Henry Fayol 1. Division of Work: allows for job specialization. Work should be divided among individuals and groups. 2. Authority and Responsibility: Authority right to give orders. Responsibility involves being answerable Whoever assumes authority assumes responsibility 3. Discipline: Common efforts of workers. Penalties 4. Unity of Command: Employees should have only one boss. 5. Unity of Direction: A single plan of action to guide the organization. 6. Subordination of individual interests to the general interests of organization

14 Principles of Management – Henry Fayol 7. Remuneration: An equitable uniform payment system that motivates and contribute to success. 8. Centralization: The degree to which authority rests at the top of the organization. 9. Scalar Chain: Chain like authority scale. 10. Order: The arrangement of employees where they will be of the most value to the organization. 11. Equity: The provision of justice and fair dealing 12. Stability of Tenure of Personnel 13. Initiative 14. Esprit de corps: Harmony, general good feeling among employees

Functions of Management

Planning and Decision Making Defining goals, establishing strategy and developing sub plans to choose alternatives and coordinate activities

Organizing Deciding where decisions will be made Who will do what jobs and tasks Who will work for whom

Leading Motivating Inspiring Leading

Controlling Monitoring progress towards goal achievement and taking corrective action when needed

Levels and Areas of Management Marketing Administration Other Human resources Operations Finance Middle managers Areas of Management Levels of Management First-line managers Top managers

Role of Top Managers Creating a context for change Developing commitment and ownership in employees Creating a positive organizational culture through language and action Monitoring their business environments

What Middle Managers Do? Plan and allocate resources to meet objectives Coordinate and link groups, departments, and divisions Monitor and manage the performance of subunits and managers who report to them Implement changes or strategies generated by top managers

Responsibilities of First-Line Managers Manage the performance of entry-level employees Encourage, monitor, and reward the performance of workers Teach entry-level employees how to do their jobs Make detailed schedules and operating plans

Managerial Roles Interpersonal Informational Decisional Figurehead Leader Liaison Monitor Disseminator Spokesperson Entrepreneur Disturbance Handler Resource Allocator Negotiator Adapted from Exhibit 1.4 H. Mintzberg, “The Manager’s Job: Folklore and Fact:.” Harvard Business Review, July-August 1975.

Managerial Skills Technical Skills Human Skills Conceptual Skills Motivation to Manage

Managerial Challenges: Ethics Knowledge Diversity Management MANAGER Innovation Globalization Customers E-Business Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

History: Schools of Management Thought (start) Quality Viewpoint Contingency Viewpoint Systems Viewpoint Behavioral Viewpoint Traditional Viewpoint 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000

Goals: Efficiency Consistency Traditional Viewpoint Administrative Management Bureaucratic Management Goals: Efficiency Consistency Scientific Management

Characteristics of Bureaucratic Management Rules—formal guidelines for the behavior of employees on the job Impersonality—employees are evaluated according to rules and objective data Division of Labor—splitting work into specialized positions

What is Scientific Management?

Administrative Management Fourteen Principles of Management given by Henry Fayol

What is Behavioral Viewpoint Focuses on dealing effectively with the human aspects of organizations Started in the 1930’s Emphasis on working conditions Workers wanted respect Workers formed unions to bargain with management

Systems View of Organizations

Important Contingencies What is Contingency Approach? Problem or Situation Important Contingencies Solution or Action B Solution or Action A Solution or Action C Source: Van Fleet, David D., Contemporary Management, Second Edition. Copyright © 1991 by Houghton Mifflin Company.

Lower Costs and Higher Market Share Quality Approach: Positive Company Image Lower Costs and Higher Market Share Decreased Product Liability Quality

Islamic Management Perspective: 1. Work is an act of Worship 2. Work as Trust – Amana 3. Discipline 4. Reliance on Own Self 5. Proper placement depending upon Skills & Talent 6. Fairness and Proper Treatment of Employees 7. Quality – Itqan 8. Consultative and decision making skills – Shura

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