PRINCIPAL AND PRACTICES OF MANAGEMENT

PROF. KARUNA JADHAV

Prof Karuna Jadhav ( PPM)

Books to be referred
Scope of HRM- Ashwatthapa HRMEssential of Mgmt- Koontz MgmtPPM - Shejwalkar Role of HR manager- CB Gupta and Mamoria managerPPMPPM- T.N. Chabra Mgmt BY- Stomen & Jane BY-

Prof Karuna Jadhav ( PPM)

UNIT I : Evolution of Management

Concept, Definition, Need & Scope. Management Thinkers and Thoughts. Nature and Process of Mgmt. Function of Managers and Mgmt. Practical Aspect Of Management.
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6 Ms of Manage men
1. 2. 3. 4. 5. 6.

t (tactfully) (tactfully)

MONEY MATERIAL MACHINERY MARKET METHODS MEN = abilities+knowledge+skills+cr eativeness+ talents+aptitude

Prof Karuna Jadhav ( PPM)

Meaning of Management
Management is an organ; organs can be described and defined only through their functions. ByBy- Peter F. Drucker To manage is to forecast and plan, to organise, to compound, to co-ordinate and to control. coByBy- Henry Fayol Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way. ByBy- F.W.Taylor
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FUNCTIONS AND PRINCIPLES OF MANAGEMENT ARE USED FOR

ACQUISITION DEVELOPING MAINTAINING REMUNERATING

Prof Karuna Jadhav ( PPM)

History Of Management Thought

From the pre-historic times, the evolution of premanagement thought can be considered as having taken place in five stages: stages: 1. Pre-historical Pre2. Organized Society 3. Era of Industrial Revolution. 4. Towards consolidation and codification. 5. Recent development.
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Management Thinkers
Fredrick Taylor---scientific selection & Taylor---scientific systematic training and development PROPOUNDED THE THEORY OF SCIENTIFIC MANAGEMENT

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Principles of Scientific Management

Science not rule of thumb Harmony in group action CoCo-operation Maximum output Improvement of workers

Prof Karuna Jadhav ( PPM)

Features of Scientific Management

Separation of planning from executive function Scientific task setting Functional foremanship Work study Method study Motion duty Time study Rate setting Standardization Scientific selection and training Financial incentives Mental revolution Economy
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Contributions of F.W.Taylor
Time study & motion study were first conducted by him. Known as the first person to separate the planning function from executive function First person who separate mental revolution both on the part of the employer and the employee. Functional foreman concept was first invented by him. He has applied the principles of scientific management to solve the problems of management.
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Theory of Mgmt - Fayol

Henry Fayol (1841-1925) : (1841He has been considered as the real father of modern management science. Fayol has identified six activities : Technical - Production, Manufacturing. Commercial - Buying, selling & exchange. Financial - Search for & optimum use of capital. Accounting - Stock taking, balance sheet, statistics. Security - Protection of Property & Person. Managerial - Co-ordination & control. CoProf Karuna Jadhav ( PPM) 12

14 Principles of organization:
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

Division of work. Delegation of Authority & Responsibility. Unity of command. Unity of Direction. Discipline. Subordination of individual interests to the general interest. Remuneration of personnel. Centralization. Scalar Chain. Order. Equity. Stability for tenure of personnel. Initiative. Esprit de corps.
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Hawthrone experiments
Elton Mayo who conducted experiments at the Hawthrone plant of the Western Electric Company at Chicago. Chicago. Features are :
1. 2. 3.

4. 5.

A business organisation is basically a social system. it system. is not just a technoeconomic system. system. Management must learn to develop co-operative coattitudes and not rely merely on command. command. Participation becomes an important instrument in human relation movement. It Need effective two-way movement. twocommunication network. network. Productivity is linked with employee satisfaction in organisation. organisation. Group psychology plays an important role in any organisation. organisation. 14 Prof Karuna Jadhav ( PPM)

Nature of Management
Art as well as science Management is an activity Management is a continuous process Management achieving pre-determined objectives preOrganized activities Management is a factor of production Management as a system of activity Management is a discipline Management is a purposeful activity

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Management aims at maximizing profit Management is a profession Management as a career Management is needed at all levels Management is dynamic Management is direction & control Management developed leadership quality

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Functions of management
Planning Controlling
Decision based on Wisdom & knowledge

organizing

Decision Making

Leading

Staffing

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Function of Manager
Planning the work Taking decisions Delegating authority Solving the problems CoCo-ordination Stimulating workers Setting target Guiding sub-ordinates subArranging the facilities Control the deviations
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Attributes & Skills for Manager :

Commitment : To the task & to the organization Competence :Work skill, knowledge, information Credibility : Must be regarded as dependable. Creativity : Must have fascination for discovering better methods of work. Character : Must not compromise in standards and quality of work. The manager must use the following six M resources in proper way. 1. Men 2. Materials 3. Machines 4. Methods 5. Money 6. Markets
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Manager must learn skills :

Operating skill Organizing skill Behavioural skill Conceptual skill Communication skill Judgment skill

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LAWRENCE APPLEY

{FORMER PRESIDENT

OF AMERICAN MANAGEMENT ASSOCIATION

PM is a function of guiding human resources into a dynamic organization that attains its objectives with a high degree of morale and to the satisfaction of those concerned. It is concerned with getting results through people.

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Evolution of Management
It may be stated that concern for the welfare of workers in the management of business enterprises has been in existence since ages. Kautilyas Arthashastra states that there existed a sound base for systematic management of human resources in the 4th century B.C. The Babylonians had a code for incentive wage plans in 1800 B.C.

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Industrial revolution----- large scale production--revolution----production----invention of steam engines --invention 1776-----Adam 1776-----Adam Smith ------principles of ------principles specialization 1880-----James Watt----1880-----James Watt----- standards of operating procedures, specifications of work methods, incentives, wages and bonus

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Stages in the evolution of Management

1.Industrial Revolution Era : This era consisted essentially of the development of machinery. machinery. 2.Scientific Management Era : The scientific management movement owes its origin to Fredrik W. Taylor known as the father of scientific management. management. He was the 1st to recognize and emphasize the need for adopting a scientific approach to the task of managing an enterprise. enterprise.
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Contribution of Scientific Management

1. 2.

3. 4. 5.

6.

Emphasis on rational thinking on the part of management. management. Focus on the need for better methods of industrial work through systematic study and research. research. Emphasize on planning and control of production. production. Development of cost accounting. accounting. Development of incentive plans of wage payment based on systematic study of work. work. Focus on the need for a separate personnel department. department.
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Paternalistic Era:
Robert Owen, a British industrialist Owen, is considered to be the father of Personnel Management , worked for the welfare of the workers and tried to develop a spirit of co-operation cobetween the workers and the management. management. He adopted a paternalistic attitude towards his employees. employees. He regarded the workers as children who must be cautiously guided, trained and protected. protected.
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1810-----Robert 1810-----Robert Owen ( FATHER OF PERSONNEL MANAGEMENT )----)-------Reduced ---Reduced working hours ---Housing ---Housing facilities ---Education ---Education of workers & children ---System ---System of discipline ---Justice ---Justice in factories ---Took ---Took part in introduction of the British Factory Act in 1819.
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Robert Owen advised other manufacturers to devote more attention to workers in order to increase productivity because the workers according to Owen are the vital machine. machine. According to Charles Babbage, the Babbage, emphasis should be on multiplicity of interests between employers and workers and on the division of labour, for such division of labour would reduce the waste in raw materials, achieve savings through more effective placement of workers. workers.
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Industrial Psychology Era :

Application of psychology to business and industry, began to emerge in 1890s as psychologists 1890s studied selling techniques and ways of testing job candidates. The most candidates. notable industrial psychologist was Munster berg, whose major berg, contribution were: were: The analysis of jobs in terms their physical , mental and emotional requirements. requirements. The development of testing devices for selecting workers
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Human Relation Era

What came to be called the human relations movement has been a major influence on modern management. This movement is management. characterised by its focus on group behaviour and workers feelings as they relate to productivity and morale. morale.

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Hawthrone experiments
Elton Mayo who conducted experiments at the Hawthrone plant of the Western Electric Company at Chicago. Features are : Chicago.
1. 2. 3.

4. 5.

A business organisation is basically a social system. system. it is not just a technoeconomic system. system. Management must learn to develop cocooperative attitudes and not rely merely on command. command. Participation becomes an important instrument in human relation movement. It movement. Need effective two-way communication twonetwork. network. Productivity is linked with employee satisfaction in organisation. organisation. Group psychology plays an important role in any organisation. organisationPPM) 31 Prof Karuna Jadhav ( .

Behavioural Science Era

Human Relation made very significant contribution to management thought by bringing into limelight Human and social factors in organisation. organisation. The behavioural science movement is an outgrowth of the human relations studies. studies. The method of research in the behavioural era made use of data obtained from Experiments, Observations and surveys in disciplines like sociology, anthropology, social science. science. The various theories formulated in the behavioural science era are: are:
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Theories :
1. Maslow Need Hierarchy Theory or Deficit Theory of Motivation. 2. Herzberg Two Factors Theory of Motivation. 3. Theory X and Theory Y.

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Personnel Specialist Era & Welfare Era:

With the introduction of the factory system, a large number of persons were employed by one organisation. organisation. These employees were to be controlled if the goals of that organisation were to be achieved. achieved. With the increase in the number of employees, a separate personnel specialist had to be appointed

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Responsibilities :
To assist the line manager to maintain optimum efficiency of the work force. force. To assist management in the field of human relations, labour management relations and to develop personnel policies and procedures. procedures. To manage welfare services for the benefit of the employees. employees.

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Management thinkers
Gilbreth, his wife Lilian Gilbreth and Mary Parker Follet Stressed upon the training aspect of management Elton Mayo Hawthorne experiments, which emphasized on group behavior, human relations, morale and motivation

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Role of Manager
HUMANITARIAN CHANGE AGENT COUNSELLORFIRE FIGHTER MEDIATOR CONTROLLER SPOKESMAN SPECIALIST PROBLEM SOLVER

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ROLE OF PERSONNEL MANAGER

1. Personnel role a. Advising mgnt b. Manpower planning c. Training and

2. Welfare role a. Research role b. Managing services

development d. Measurement and assessment of individuals and group behavior

like canteen, transport etc c. Group dynamics like motivation leadership communication

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ROLE OF PERSONNEL MANAGER

3. a. b. c.

Administrative role Time keeping Salary and wage admin Human engineeringengineeringman machine relationship

4. Fire-fighting Firea. b. c. d. e.

legal role Grievance handling Settlement of disputes Handling disciplinary action Collective bargaining Joint consultation
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Prof Karuna Jadhav ( PPM)

Quality of personnel manager

Educational qualification a. Degree of a recognised univ. b. Post graduate degree or diploma in sociology or personnel mgmt, industrial relations, labour welfare, labour law or MBA with specialisation in HR c. A degree in law is a another desirable qualification.

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Qualities in PM
a. b. c. d. e. f.

Personal attributes Intelligence Communicative ability Decisiveness Tact & resourcefulness Sympathy & consideration Leadership skills
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Qualities in PM
a. b. c. d. e.

Professional Approach Knowledge of constitution Governments policy towards labour. Training in industrial psychology Labour relations Sound knowledge of economies

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Prof. Jucius has emphasized upon some additional knowledge as

Philosophy Ethics Logic Mathematics Sociology Anthropology Medicine History Economics Management Political science

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