01-Introduction to Principles of Management

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Introduction to

Principles of Management

Information and Computer Studies, Dept.

University of Santo Tomas

November 2005/May 2011


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Definition of ManagementDefinition of ManagementManagementManagement SayingsSayings

Management is nothing more than motivating otherpeople.- Lee Iacocca

Good management consists in showing averagepeople how to do the work of superior people. -John D. Rockefeller

Good management is the art of making problems sointeresting and their solutions so constructive thateveryone wants to get to work and deal with them.-Paul Hawken

What gets measured gets managed. - PeterDrucker

Art of getting things done through people - Mary

Parker Follett


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Definition of Management

Art of getting things done through people (definitionby Mary Parker Follett)

This definition calls attention to the fact thatmanagers achieve organizational goals byarranging for others to perform whatever tasks may

be necessary not by performing the taskthemselves

The process of planning, organizing, leading and

controlling the efforts of organization members andof using all other organizational resources toachieve stated organizational goals


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Functions of Management

Planning

Organizing

Leading

Controlling


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Steps in Planning FunctionSteps in Planning Function

1. Establishment of objectives

2. Establishment of Planning Premises

3. Choice of alternative course of action

4. Formulation of derivative plans

5. Securing Co-operation

6. Follow up/Appraisal of plans


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Characteristics of PlanningCharacteristics of Planning

Planning is goal-oriented.

Planning is looking ahead.

Planning is an intellectual process.

Planning involves choice & decision making.

Planning is the primary function of management

Planning is a Continuous Process.

Planning is all Pervasive.

Planning is designed for efficiency. Planning is Flexible.


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Advantages of PlanningAdvantages of Planning

Planning facilitates management by objectives.

Planning minimizes uncertainties.

Planning facilitates co-ordination.

Planning improves employees moral.

Planning helps in achieving economies.

Planning facilitates controlling.

Planning provides competitive edge.

Planning encourages innovations.


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Disadvantages of PlanningDisadvantages of Planning

Rigidity

Misdirected Planning

Time consuming

Probability in planning

False sense of security

Expensive


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PlanningPlanning

Selection of goals for the organization

Establish programs

Consider feasibility

deciding what to do

evaluate use of resources

set organizational goals

determine tactical direction


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Organizing Function of ManagementOrganizing Function of Management

Organizing is the function of management whichfollows planning. It is a function in which the

synchronization and combination of human,physical and financial resources takes place. All thethree resources are important to get results.

Therefore, organizational function helps inachievement of results which in fact is important forthe functioning of a concern


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Staffing Function of ManagementStaffing Function of Management

The managerial function of staffing involvesmanning the organization structure through proper

and effective selection, appraisal and developmentof the personnel to fill the roles assigned to theemployers/workforce.


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Organizing (and Staffing)

Means that managers coordinate the human andmaterial resources of the organization

structuring the firm establishing communications networks

Staffing the recruitment, placement, and training

of qualified personnel to do the organizations work


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Organizing (and Staffing)


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Directing Function of ManagementDirecting Function of Management

DIRECTING is said to be a process in which themanagers instruct, guide and oversee the

performance of the workers to achievepredetermined goals. Directing is said to be theheart of management process. Planning,

organizing, staffing have got no importance ifdirection function does not take place.


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Leading

Describes how managers direct and influencesubordinates, getting others to perform essential

tasks By establishing the proper atmosphere, they help

their subordinates do their best

selecting the most effective communicationchannels

directing and motivating people


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21 Qualities of a Leader21 Qualities of a LeaderJohn MaxwellJohn Maxwell

1. Character

2. Charisma

3. Commitment It separates doers from dreamers4. Communication Without it you travel alone

11. Listening To connect with their hearts, use your

ears12. Passion Take this life and love it

13. Positive Attitude

16. Responsibility19. Servanthood

21. Vision


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21 Laws of Leadership21 Laws of LeadershipJohn MaxwellJohn Maxwell

1. The Law of the Lid Leadership ability determines apersons level of effectiveness

2. The Law of Influence The true measure ofleadership is influence nothing more nothing less

3. The Law of Process Leadership develops Daily,Not in a Day

6. The Law of Solid Ground Trust is the Foundationof Leadership

7. The Law of Respect People naturally follow

leaders stronger than themselves12. The Law of Empowerment Only secure leaders

give power to others

21. The Law of Legacy A leaders lasting value ismeasured by succession


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ControllingControlling

determine if the firms performance is on target

Involves three main elements:

Establishing standards of performance

Measuring current performance and comparingit against the established standards

Taking action to correct performance that doesnot meet those standards


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Controlling Function of ManagementControlling Function of Management

Controlling consists of verifying whether everythingoccurs in confirmities with the plans adopted,

instructions issued and principles established.Controlling ensures that there is effective andefficient utilization of organizational resources so as

to achieve the planned goals. Controlling measuresthe deviation of actual performance from thestandard performance, discovers the causes ofsuch deviations and helps in taking corrective

actions


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Process of ControllingProcess of Controlling

1. Establishment of standards

2. Measurement of performance

3. Comparison of actual and standardperformance

4. Taking remedial actions


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Basic Steps in Control ProcessBasic Steps in Control Process


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Managerial Skills

Robert L. Katz, educator and business executiveidentified three basic types of skills:

technical, human

conceptual


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Technical Skills

Ability to use the tools, procedures, and techniquesof a specialized field

The manager needs enough technical skill toaccomplish the mechanics of the particular job heor she is responsible for


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Human SkillHuman Skill

Is the ability to work with, understand and motivateother people either as individuals or as groups

Managers need enough of this human relations skillto work with other organization members to leadtheir own work group


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Conceptual Skill

Is the mental ability to coordinate and integrate allof the organizations interests and activities

Involves the managers ability to see theorganization as a whole and to understand how itsparts depend on each other

Involves the managers ability to understand how achange in any given part can affect the wholeorganization

A manager needs enough conceptual skills to

recognize how the various factors in a givensituation are interrelated, so that the actions he orshe takes will be the best interests of the totalorganization


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Strategic Level

Also known as the top level

People at this level establish organizational goals

and work with the internal environment Set the corporate direction

E.g.

CEO, CIO, CTO, COO

Board of Directors


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Tactical Level

Also known as the middle level

Allocate resources to meet objectives of top

management


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Operational Level

Also known as the first level or first line

Supervise day-to-day operations like order entry,

credit checking, and inventory control


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Conceptual Conceptual

Conceptual

Human

TechnicalTechnical

Technical

Human

Human

First LevelManagement

Second LevelManagement

Third LevelManagement


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Managerial Roles of Mintzberg

Interpersonal Role

Figurehead role, leaderrole, liaison role

Informational Role

Monitor role,disseminator role,

spokesperson Decisional Role

entrepreneurialmanager; disturbance

handler resourceallocator, andnegotiator

Henri Fayols (1841 1925)


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Henri Fayol s (1841-1925)14 Principles of Management

Division of Labor Authority Discipline

Unity of Command Unity of Direction Subordination of Individual Interest to the Common Good Remuneration

Centralization The Hierarchy Order Equity Stability of Staff Initiative Esprit de Corps


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Henri Fayols (1841-1925)


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Unity of Direction those operations within theorganization that have the same objective should

be directed by only one manager using one plan Subordination of Individual Interest to the Common

Good in any undertaking the interests of

employees should not take precedence over theinterests of the organization as a whole

Remuneration compensation for work done

should be fair to both employees and employers



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Centralization decreasing the role of subordinatesin decision making is centralization; increasing their

role is decentralization. Fayol believed thatmanagers should retail final responsibility but alsoneed to give their subordinates enough authority todo their jobs properly

The Hierarchy the line of authority in anorganization often represented today by the neatboxes and lines of the organization chart runs inorder of rank from top management to the lowestlevel of the enterprise



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Henri Fayol s (1841 1925)14 Principles of Management

Order materials and people should be in the rightplace at the right time. People in particular should

be in the jobs or positions most suited for them Equity managers should be both friendly and fair

to their subordinates

Stability of staff a high employee turnover rate isnot good for the efficient functioning of anorganization



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Henri Fayol s (1841 1925)14 Principles of Management

Initiative subordinates should be given thefreedom to conceive and carry out their plans, even

though some mistakes may result Esprit de Corps promoting team spirit will give the

organization a sense of unity.


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References

Management by James A.F. Stoner and CharlesWankel

Management Information Systems 8th Edition byRaymond McLeod Jr. and George Schell

Documents

01-Introduction to Principles of Management