Welcome to the Principles of

Management course
-Prof. Arjun Chakravorty
 Introductions

Expectations

Agenda
Course outline

Introduction to Principles
of Management
Education
Work
Experienc
e
Interests and Hobbies
● Love reading fiction & non fiction/ watching movies/web-series/documentaries
○ Favorite books
■ Sophies world, Lord of the ring trilogy, girl with the dragon tattoo series, classics like
pride and prejudice, of human bondage, The kite runner, The monk who sold his
Ferrari, the start up nation, the prophet, one hundred years of solitude, to kill a
mocking bird, catcher in the rye, o Jerusalem!, gone with the wind, atlas shrugged,
tipping point, outliers, Predictably irrational, freakonomics, books by Somerset
Maugham, Murakami…
○ Favorite movies/web-series
■ Friends, Fargo, Curb your enthusiasm, Seinfeld, Kill Bill, Inglorious Basterds, Game
of thrones, the sopranos, madmen, the Shashank redemption, 3 idiots, Golmaal
(original), Gullak, Shaurya, Few good men, scam 92, the firm, the godfather series,
Doc Martin, Broadchurch, The Crown, The Mandolorian …
● Travelling
○ Travelled to countries like Belgium, France, Netherlands, Romania, Turkey, Lebanon,
Srilanka, Thailand, Germany, Nepal, Kenya, UAE, Australia, all of India(almost)
● Yoga, meditation, philosophy, psychology
 Mention a
movie/web series
Introduce that you like and
why do you like it?
yourself
What do you like
doing or what are
you good at?

A leader you
admire and why?
Favorite Movie
Expectations

Be curious
Mutual Honesty and
and
respect transparency
Interactive

Attend Complete
classes
regularly
assignments
in time
DND
Management Jeopardy

● This CEO is credited as founder of Tesla?

● The CEO said the following “Any customer can have a car painted in any
color he wants so long as it is black.”
● This CEO said “Either be number 1 or number 2 in your industry or
get out ”
● They are the founders of one of the most respected technology firm
● He is the 8th noble laurate from India
● He said the famous words “Ask not what your country can do for
you – ask what you can do for your country,”
● This professor from Booth school of management became RBI
governor in 2013
Assessment schema

Assessment Task Weightage Week of Assessment

A1 Class Participation 20% Week 1-14

and Presentations*

A2 Mid term 15% Week 8

A3 Reflective Note 15% Week 13

A4 End-term 50% Semester End

* Make groups of 6 before next week

Course outline
Week Session details

1 Management Science, Theory, and Practice

2 Systems Theory and Contingency Approach to Management

3 Management and Society: The External Environment, Social Responsibility,

and Ethics
4 Global organizations, Global Competitiveness, and Quality Management

5 Planning: Essential of planning, Managing by objectives, Strategies, Policies

and Planning Premises
6 Decision Making

7 Organizing: Nature of Organizing, Entrepreneurship & Re-engineering,

Organization structure & authority, Organization Culture
8 Staffing: Human Resource Management & Selection, Performance
Management, Change Management and Organizational Development
9 Leading: Human Factors and Motivation and Leadership

10 Controlling: The System & Process of Controlling, Controlling Techniques

and Information System
11 Course Wrap & Project presentations

12 Guest Lectures**

13 Mid term **

** Mid term and guest lectures will be conducted in between the lectures
Chapter 1

Management Science, Theory,

and Practice
Chapter Objectives
After studying this chapter, you should be able to:

1. Explain the nature and purpose of management

2. Understand that management, as used in this book,
applies to all kinds of organizations and to managers at all
organizational levels
3. Identify the trends in information technology and
globalization
4. Explain the concepts of productivity, effectiveness, and
efficiency
5. Describe the evolution of management and some recent
contributions to management thought

13
Chapter Objectives
After studying this chapter, you should be able to:

6. Describe the various approaches to management, their

contributions, as well as their limitations
7. Define the managerial functions of planning, organizing,
staffing, leading, and controlling

14
What are some of the things you do that can’t be
done individually?
DEFINITION OF MANAGEMENT
Its Nature and Purpose

Management is the process of designing and maintaining

an environment in which individuals, working together in
groups, efficiently accomplish selected aims.

The aim of all managers should be to create a surplus.

Thus, managers must establish an environment in
which people can accomplish group goals with the least
amount of time, money, materials, and personal
dissatisfaction.

16
The Functions of Management

The five managerial functions around which managerial

knowledge are organized are: planning, organizing,
staffing, leading, and controlling.

18
Management as an Essential for
Any Organization

Management applies to small or large organizations, to

profit and not-for-profit enterprises, to manufacturing as
well as service industries.

19
Organization Surplus

Business organizations

Non Profit

Educational
Managerial Functions at Different
Organizational Levels

 No basic distinction is made between managers,

executives, administrators, and supervisors

 All managers carry out managerial functions.

However, the time spent for each function may
differ

21
Time Spent in Carrying Out Managerial Functions

23
Managerial Skills and the
Organizational Hierarchy

The four skills for administrators are:

 Technical
 Human
 Conceptual
 Design skills

24
Characteristics of Excellent and Most
Admired Companies (Peters & Waterman)
These firms:
 Were oriented toward action
 Learned about the needs of their customers
 Promoted managerial autonomy and entrepreneurship
 Achieved productivity by paying close attention to the
needs of their people
 Were driven by a company philosophy often based on the
values of their leaders
 Focused on the business they knew best
 Had a simple organization structure with a lean staff
 Were centralized as well as decentralized, depending on
appropriateness
 https://jobs.netflix.com/culture
 https://fs.blog/2016/05/the-hp-way-david-packard/ 26
The little prince

“If you want to build a ship,

don't drum up the people
to gather wood, divide the
work, and give orders.
Instead, teach them to yearn
for the vast and endless sea.”

https://youtu.be/2Ss78LfY3nE
Definition of Productivity

Productivity is the output-input ratio within a

time period with due consideration for quality.

28
 Definitions of Effectiveness and
Efficiency
 Productivity implies effectiveness
and efficiency in individual and organizational
performance
 Effectiveness is the achievement
of objectives

 Efficiency is the achievement of

the ends with the least amount
of resources (time, money, etc.)

29
Operation Entebbe

● Situation
● Results
○ Mission successful
○ 102 of 106 hostages rescued[1]
○ A quarter of Uganda's air force destroyed [2]
● Causalities
Israel Hijackers:
1 killed 7 killed
5 wounded Uganda:
45 killed[3]
11–30 aircraft
destroyed

Was this operation effective?

Was this operation efficient?
Management: Science or Art?
MANAGING: SCIENCE OR ART?

Managing as practice is an art; the organized

knowledge underlying the practice may be referred
to as a science.

33
Is management a science or an art?
● Art: time, experience, and practice makes a difference.
○ Personal skills play a role (inherent attributes and acquired skills)
○ Practical knowledge
○ Creativity
○ Perfection (or improvement) through practice
○ Goal orientation (one knows what she is trying to achieve)

● Science
○ Science is obtaining information about a particular object by a systematic pattern of
observation, study, practice, experiments, and investigation
○ Goal: “to predict”
https://youtu.be/HPSK4zZtzLI
THE EVOLUTION OF MANAGEMENT
THOUGHT
 Frederick Taylor and Scientific Management
 Fayol, the Father of Modern Operational Management
Theory
 Elton Mayo and F. Roethlisberger and the Hawthorne
Studies
 Recent Contributors to Management Thought

37
Some videos to watch

Classical Management theory

● https://youtu.be/d1jOwD-CTLI
Evolution of Management
● https://youtu.be/EobeHwOw3S4
Systems Management theory
● https://youtu.be/giPVQMmeVgw
Drucker's 4 Principles
● https://youtu.be/1il9VfJoaDo

● Robot car factory(What will the humans do? )

https://www.youtube.com/watch?v=P7fi4hP_y80
The American factory: https://www.youtube.com/watch?v=m36QeKOJ2Fc

The eating machine [0:00 to 1:29 and 2:27 to

https://www.youtube.com/watch?v=17PkUsTVa7g&t=77s
 Taylor's Principles of Scientific
Management
 Replacing rules of thumb with science
(organized knowledge)
 Obtaining harmony in group action, rather than
discord
 Achieving cooperation of human beings, rather
than chaotic individualism
 Working for maximum output, rather than
restricted output
 Developing all workers to the fullest extent
possible for their own and their company's
highest prosperity 39
Fayol, The Father of Modern
Management Theory
 Authority and responsibility- Authority is a
combination of official‑factors and personal
factors
 Unity of Command- Employees should
receive orders from one superior only
 Scalar Chain- A "chain of superiors" from the
highest to the lowest ranks should be
short‑circuited when to follow it scrupulously
would be detrimental
 Esprit de Corps- This is the principle that "in
union there is strength"

40
Elton Mayo and F. Roethlisberger and
the Hawthorne Studies

In general, that the improvement in

productivity was due to such social
factors as morale, satisfactory
interrelationships between members of a
work group (a "sense of belonging"), and
effective management--a kind of
managing that would understand human
behavior, especially group behavior, and
serve it through such interpersonal skills
as motivating, counseling, leading, and
communicating.
41
Recent Contributors to
Management Thought
 Peter F. Drucker
 Keith Davis
 Edwards Deming
 Joseph M. Juran
 Peter Laurence
 William Ouchi
 Thomas Peters and Robert Waterman

42
PATTERNS OF MANAGEMENT
ANALYSIS: A Management Theory Jungle?
(1) the empirical, or case, approach
(2) the managerial roles approach
(3) the leadership approach
(4) the contingency, or situational, approach
(5) the mathematical, or "management science,"
approach
(6) the decision theory approach
(7) the reengineering approach
(8) the systems approach

43
PATTERNS OF MANAGEMENT
ANALYSIS
(9) the sociotechnical systems approach
(10) the cooperative social systems approach
(11) the group behavior approach
(12) the interpersonal behavior approach
(13) McKinsey's 7‑S framework
(14) the total quality management approach
(15) the management process, or operational,
approach

44
The Management Process or Operational Approach

45
The Managerial Roles Approach (Mintzberg)

 3 Interpersonal roles
 The figurehead role
 The leader role
 The liaison role

 3 Informational roles
 The recipient role
 The disseminator role
 The spokesperson role

 4 Decision roles
 The entrepreneurial role
 The disturbance handler role
 The resource allocator role
 The negotiator role
46
THE SYSTEMS APPROACH TO THE
MANAGEMENT PROCESS

A model of process or operational management that

indicates how the various inputs are transformed through
the managerial functions of planning, organizing, staffing,
leading, and controlling. This book is about systems
approach to management process.

47
The Systems Model of Management

48
What factors impact ‘management’?

● Internal

○ Structure of organization

○ Skills of people (technical and interpersonal)

○ Resources

● External

○ Macro economic environment [e.g. Globalization & liberalization]

○ Technological changes

○ Politics
■ Local (e.g. state subsidies & tax structure)

■ National [e.g. new companies act; labor laws)

■ Geo-politics (wars; oil wars; local subsidies & tariff barriers)

○ Ecological - - Ethical
■ Climate change created new industries; fair trade & ethical clothing; mining
Inputs and Claimants

The inputs from the external environment may include

people, capital, managerial skills, as well as technical
knowledge and skills.

50
Input-Output Model

51
THE FUNCTIONS OF MANAGERS

 Planning
 Organizing
 Staffing
 Leading
 Controlling

52
 Controlling Planning
- Fines for not wearing - Increasing bed
masks capacities
- Incentives for - Making oxygen
vaccination available

Staffing Decision Making

Leading - When to impose a lockdowns
- Hiring consultants - What level of lockdowns?
- PM, CMs, ward - Decentralizing
committees
- Businesses for
manufacturing
Organizing
- Bureaucracy
- Organizing to get
vegetables in
homes
Definition of Planning

Planning involves selecting

missions and objectives and the
actions to achieve them; it requires
decision making.

54
Definition of Organizing

Organizing involves establishing an

intentional structure of roles for
people to fill in an organization.

55
Definition of Staffing

Staffing involves filling, and keeping

filled, the positions in the
organization structure.

56
Definition of Leading

Leading is influencing people so

that they will contribute to
organization and group goals.

57
Definition of Controlling

Controlling is measuring and correcting

individual and organizational performance
to ensure that events conform to plans.

58
Coordination
The Essence of Managership

It is the essence of managership, for achieving

harmony among individual efforts toward the
accomplishment of group goals. Each of the
managerial functions is an exercise contributing to
coordination.

59
Managers or Leaders?

● Good managers have to be good leaders

● Good leaders also need to be planning, organizing, staffing,
controlling, and, of course, leading
● Managing and leading are closely related.

60
Homework

● Read the article “ The Management Century” and keep your notes ready for
discussion.
● Go thoroughly through the systems model of management and understand
each component properly.
● Interview two Managers/Business owners and ask them about their approach
to management.
● Read the Netflix culture webpage and be ready for an exercise in the next
class.