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A principle is a fundamental truth and is generally stated in the form of cause and effect inter-relationship. Herbert G. Hicks, "Principles of management are the guiding rules of laws for managerial action." Kantooz and O' Donnell, "Management principles are fundamental truth of general validity." Guiding pillars in the managerial execution of functions and solution to problems. Every social science has developed its own principles. Management, also a social science, has developed a number of management principles from time to time. Nature and features: Universal application, Flexibility, General Statement (Not as exact as Pure science principles), Influences Human Behaviour, Cause and Effect Relationship, equality Principle, careful and Discrete application, Decision Making. Importance and Use Interface:

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Principles of Management are Universal  Applicable to all kinds of organizations - business & non business.  All levels of management.  Hence are universal or all pervasive. Principles of Management are Flexible  Are dynamic guidelines and not static rules.  Sufficient room for managerial discretion i.e. can be modified as per situational requirements  Modification & improvement is a continuous phenomenon Principles of Management have a Cause & Effect Relationship  Indicate cause and effect relationship between related variables.  Indicate what will be the consequence/ result of certain actions. If one is known, other traced. Principles of Management - Aims at Influencing Human Behavior  Human behavior is complex and unpredictable.  Principles tend to regulate human behavior for people to give their best to the organization.  Management is concerned with integrating efforts and harmonizing them towards a goal.  But in certain situations even these principles fail to understand human behavior. Principles of Management are of Equal Importance  All management principles are equally important.

 

No particular principle has greater importance than the other. They are all required together for the achievement of organizational goals.

While management is considered an academic discipline unto itself it is actually a part of all three areas: financial management, marketing management, and operations management. Operations management is also an academic field of study that focuses on the effective planning, scheduling, use, and control of a manufacturing or service firm and their operations. The duties of financial managers vary with their specific titles, which include controller,treasurer or finance officer, credit manager, cash manager, and risk and insurance manager. Controllers direct the preparation of financial reports that summarize and forecast the organizations financial position, such as income statements, balance sheets, and analyses of future earnings or expenses. Regulatory authorities also in charge of preparing special reports require controllers. Often, controllers oversee the accounting, audit, and budget departments. Similar with human resources and Marketing. Construction of Pyramids, Taj Mahal etc. Many ancient documents have been translated to reveal that, through the ages, wherever people have worked together to accomplish their goals, many of the same phenomena have prevailed. Management, in its most basic format, has existed since one person persuaded anotherwhether with club or carrotto do something. Frequently, management is defined as the challenge of creating as environment where people can work together to achieve a mutual objective. While this is true for managers in business, government, and other organizations, I hope that each management student will recognize the opportunities for applying management concepts to personal challenges. For that purpose, management can be defined as the concepts, techniques, and processes that enable goals to be achieved efficiently and effectively.

Session-2: Concept of Business and Management An Organization- An entity where two or more persons work together to achieve a goal or a common purpose is called Organization. People, Purpose, Process, POLCA. If there is an organization, then there must be some people. They work as whole for a common purpose, so there must be a defined purpose. If an organization doesnt have any purpose, it will not survive for long run. To achieve the purposes by using people, the processes are needed. Without any process, you cannot achieve any type of purpose or goal. If we see in our daily life, we have some goals. For achieving these goals, we use some processes. So that process is also obvious and important for an organization. The last important thing for any organization is that it requires main pillars of management i.e.POLC A:

Planning, Organizing, Leading, Controlling-A manager must perform all theses management functions with Assurance!

Videos on Concept of Business-and Business activities

Concept of Business: A business (also known as enterprise or firm) is an organization designed to provide goods, services, or both to consumers. "Business" relates to the state of being busy either as an individual or society as a whole, doing commercially viable and profitable work. The term "business" has at least three usages, depending on the scope the singular usage to mean a particular organization; the generalized usage to refer to a particular market sector, "the music business" and compound forms such as agribusiness; and the broadest meaning, which encompasses all activity by the community of suppliers of goods and services. Concept of Management: The efficient and effective operation of a business, and study of this subject, is called management. The main branches of management are financial management, marketing management, human resource management, strategic management, production management, operations management, service management and information technology management. Game Changers in Business to New Business Concepts: Environment Degradation, Spread of Communication, globalization, Public Expectations of quality of Life. Business Attitudes are Changing: towards environment, employees, society, Resources. Open business represents a concept of doing business in a transparent way by intimately integrating an ecosystem of participants, collaborating in public space. Open business structures make contributors and non-contributors visible such that the business benefits are distributed accordingly.They activate personal engagement and productivity by benefiting the contributors and producers that they can live from it and helping the clients to reduce their costs. Concept of New Business: Responsible Business as a partner of the Society: global Compact, Sullivan Principles, OECD Guidelines, Position Papers on Code of conduct. Class Discussion: New Concept of Business is no more a wealth creator for owner but for the entire society at large Session-3-6: Functions of Management; Types of Managers, From Specialist to a Manager Managerial Roles, Managerial Competencies

Sessions-3 & 4

Video Clips on management-a Perspective and What is management-1? -Management is getting things performed through people: -Planning and Strategies -Planning Goals/ Action Plan/Allocate/Measure/Review/ Revise Individual vs group goal Long, medium term and short term goals strategic, tactical and operational goals Group goal requires efforts directed towards it and requires planned organization Levels of Planning-Seniors Plan to attain goals of an organization (Strategy) Budgeting, Expansions, Information Systems, Inventory, HR, Planning is formalizing a strategy that has been already selected -Strategising is thinking/idea formation of how to achieve a goal/s w.r.t competition/Govt. and choose a course of action -strategies can also arise w/o planning but planning is in the strategy premises Video Clip: http://www.youtube.com/watch?v=9h-zO5Mp61A

-Organizing -Who performs what? With what resources? Reporting and Coordination; for a common goal. -Dividing Organization into Task based sub-units (Functional/Divisional/geographic)

-Decision making authority/Resource Allocation -Authority, Responsibility and Accountability -Controlling -Monitoring performance against goals, review and correction of path -Without control goals can become meaningless and performance can go astray -Compare performance with plans -incentives to individual in line with org.interests -Incentives-monetary/non-monetary/ESOPS -Leading and Developing -several definitions -Leading involves-motivating, influencing,directing,articulating vision, listening,learning,empowering -Developing Employees: Training, mentoring, rewarding, -core connection in management process -70% of time CEO leads -See book for other leader activities Management Portfolio Exercise Session-5 -Types of Managers (See Powerpoint slide) -General managers-Corporate/Business LevelGE Orgn.chartTheir functions -Functional Managers -Frontline managers-managing Non-managers: eg.Branch managers-strategise for their units -Becoming a Manager

-From Specialist to a ManagerProgrammer to Team leader to Project manager -Mastering the Job---Act like Boss on promoting from specialist to Manager ---Continue to do specialist work and with more power and control(MISNOMER) ---earlier focused and now fragmented work, different tasks, interpersonal and ---mail, process, time, peers, bosses, customers -Managerial Roles -See Powerpoint slide networking

Session-6 -Managerial CompetenciesSkills, values and Motivations -Conceptual Skillsfor analyzing and judging -see big picture; inter functional impact; outside the box thinking; conceptualize real problem and alternative solutions and impacts -Technical Skillsto perform specific activities involving methods, processes, techniques -following procedures, computer, monitoring frontline employees, understanding accounts etc. etc. -more important for Frontline managers -required in top managers in more areas -Human skills-for effective people management -communication, persuasion, conflict management, coaching, motivating, negotiating and leading -Self Awareness and self management -Team and Group working and cohesing skills -Managerial Values-Video Show-What is Management? (without Values?) -Situational Right and Societally Right(Ethics)

-values are Stable and evaluative beliefs guiding our preferences for outcomes/courses of action -What ought to do? -Enacted values vs Espoused values -Shared Values -Values guide managers in ambiguous situations -Right Valuesconsistent with situation-eg.conformity when precision becomes important. ---employees at top if in shortage -Managerial Motivation -Desire to Compete, Exercise Power, to be Distinct, to Take action 7th session
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Evolves as managers, theorists, researchers and consultants search for new ways to increase efficiency and effectiveness. Evolution began after Industrial Revolution in 19th century. Better way to utilize organizational resources Classical management theories around 20th century

o Scientific Management: Maximize efficiency by matching People and Tasks(1890-1945) o Administrative management: Principles for efficient organization & system(1895-1945) o Behavioral management: How to lead/control for increased performance (1915-1995) o Management Science: Aanalytical/quantitaive measure and control Orgn. performance (19402000) o Environment Theory: Impact of External environment on Organization operating ways(1950till date) http://www.youtube.com/watch?v=8PdmNbqtDdI Class Discussion 8th & 9th Sessions

Scientific management theory:

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New economic climate; steam power; sophisticated machinery and equipment; revolutionized weaving and clothing industries Small craft industries (skilled workers) replaced by large scale industries(unskilledsemiskilled) eg. Spinning/weaving of Cotton Yarn Managers being more Technical not prepared for problems in large groups working. Focus on ways increase workers-task mix Job Specialization and Division of labour 200 years of research starting from Adam Smith why factory Production more efficient and greater quantities than Crafts style production. Pin factory study: One person doing all the 18 tasks on a pin vs each worker one or few of 18 tasks. Latter produced 48000 pins/day against 2-3000 from 1st method Job specialization imparted Skills at specific tasks This leads to Division of labor and increases Organizational efficiency FW Taylors Principles

o P1: Study ways workers perform tasks, gather informal job knowledge and improve the ways o P2:Codify new methods of performing tasksinto written rules and SOPs o P3:Carefully select workers matching abilities to perform tasks and train them to perform tasks as per rules and procedures o P4:Establish fair level of performance for the task and develop pay system to reward performance beyond the level. o Gilbreths contribution: breaking up actions in each activity; find better ways to improve;reorganize component actions for lesser cost and time o Criticisms 10th-11th Sessions
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Administrative Management Theory: To create organization structure and control systems for high efficiency and effectiveness OS is the system of task and authority relationships Webers and Fayols theories Webers theory: Principles of Bureaucracy:

P1: In bureaucracy, a mangers formal authority derives from the position he holds. Authority is the power to hold people accountable for their actions and decisions for resource utilization. Power not because of personality, social status or wealth Gives right to direct and control sub-ordinates behavior

 P2: people will occupy positions because of their performance and not because of their social standings or personal contacts. P3: Extent of positions formal authority and its relationship with other positions in an organization to be clearly specified P4: Authority can be exercised effectively if positions are arranged hierarchically for clarity P5: create a well defined system of rules and SOPs and normsfor effective control of behavior in an organization

Fayols 14 Principles

Division of Labor Authority and Responsibility Unity of Command Line of Authority Centralization Unity of Direction Equity Order Initiative Discipline Remuneration of Personnel Stability of Tenure Subordination of individual interest to common interest Espirit De Corps

12th Session

Behavioral Management theory: How managers should behave to motivate employees and encourage to perform at high levels.
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Mary Follets work:

Mother of management felt that Taylor ignored human side of organization Management overlooks the multitude of ways employees can contribute to organization Taylor never proposed managers should involve workers in analyzing jobs and identify better ways to perform tasks. Instead involved third persons in time and motion study Follet proposed Authority should go with Knowledge Workers h aving knowledge should be in conrol of their process Managers should be facilitators and coaches and not as monitors Managers should communicate directly with each other to speed up decisions-cross functioning She differed with Fayol in hierarchical authority and believed in horizontal rather than vertical authority

Hawthorne studies and Human Relations

Till recently many did not appreciate Follet Following Taylor/ Gilbreth they continued to conduct experiments to improve efficiency 1924-32; 8years experiment at Western electric company at Hawthorne Study characteristics of work setting influences fatigue and performance Lighting/illuminationno fall in production Elton mayo-other aspects like length and number of rest periods, monotony Production increased in presence of researchers It was found that workers attitude towards their managers impacted productivity.

 Hence Human relations movement; train supervisors for relationships Informal organizations/organization behavior
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Theory X and Theory Y

Session-13
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Management Science Theory: Use rigorous quantitative techniques for maximizing resource utilization

Quantitative management Operations management TQM MIS

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Organizational Environment theory/Open systems Theory: Set of forces beyond the control/boundaries of organization but affect managers ability in acquiring and utilizing resources

Input------Conversion----------Output
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Contingency Theory: There is no one best way to organize

Organizations in a stable environment choose mechanistic structure (organization structureOS- in which authority is centralized, tasks and rules are clearly specified and employees are closely supervised-mostly bureaucratic) Organizations in changing environments choose organic structure ( an OS in which authority is decentralized to middle and frontline managers, tasks and roles left ambiguous to encourage employees to respond quickly to the unexpected)

Session 14 Managers and The Environment: see Powerpoint Slide 9/9

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External environment: Look for Opportunities and Threats; Incremental vs Discontinuous change; Environmental Uncertainty

o Task or Industry Environment (Immediate External)

 Porters five Forces Model (see Power point slide 10) Intensity of Rivalry o Nature of the products o Demand and supply conditions o Cost structure of firms-Fixed costs o Competitive structure-fragmented/consolidated Threat of Entry/exit o Economies of scale o Technology o Cost Advantages o Brand Loyalty Threat of Substitutes o New Technology substitutes o Many substitutes Bargaining Power of Suppliers o Few suppliers o High switching costs o Dependency for Critical inputs Bargaining Power of Buyers o Few in numbers and buy large quantities o Many suppliers o Switching costs low Complements

o General Environment (More general to entire industry) Political and Legal Changes in law and Regulations Industry specific regulators Industry Lobbying Macro-economic forces Economic growth rate Currency exchange rate Interest rates Inflation Demographic forces Change in population characteristics o Age, gender, ethnicity, sexual orientation and social class Social cultural forces Changing social mores, values and tastes Technological Forces Product Process Entry barriers International Forces: Falling trade and investment Barriers
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Internal Environment: Look for Strengths and Weaknesses

o Internal Organization Strength or weakness? Liberating or stifling

 Merirocracy vs bureaucracy Organization architecture Organization culture o Shared values and assumptions Organization structure Control systems Type of people working Incentives o Employees (Human Capital) Knowledge, Skills and capabilities embedded o Resource: Assets that managers have to work with Tangible Intangible o Brand names o Reputation o Processes o Intellectual Property Resource based view: Source of sustainable competitive advantage if Owned Non-substitutable Inimitable Rare valuable

Session 15 Globalization and The Manager: Independent national economies to a single global system
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Globalization Process

o Market Economies o Socialist Economies (Shifting to market economies) Privatization, deregulation o Falling Trade and investment barriers: RTAs;FTAs; FDI, Int.Trade; WTO o Reducing costs in communication and transportation o Technology
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Implications

o Consumers benefit, volumes gone up, increased FDI,

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Globalization of Production, Markets Constraints of globalization

o Protectionism; National Differences in CB and business Systems and Social Culture

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Benefits of Globalization

o Market Expansion, location realization; Scale economy realization; Global learning

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Management Challenges

o Global Standardization o Entry Mode o Locating Activities o Managing People: Geocentric, Ethnocentric and Polycentric y