Principles of Management

MGTS F211

BITS Pilani Dr. Mohammad Faraz Naim

Pilani | Dubai | Goa | Hyderabad Department of Management, BITS Pilani
 Course objectives
 To explain management and business concepts and
techniques they will need to manage today’s and tomorrow’s
organizations.
 To provide students with the best possible understanding
of what it means to be a manager confronting change and to
best prepare for that reality.
 The course covers managerial functions, business
functions while putting together many small picture
presented in each module into one bigger meaningful
picture.
 This approach is supplemented with a module on
“Managerial Competencies” that helps to inculcate required
managerial skills.
 BITS Pilani
Pilani | Dubai | Goa | Hyderabad

Text Book
Stephen P. Robbins, and Mary Coulter,
“Management”, Pearson Education, 2021, 15th edition
 COURSE HANDOUT

BITS Pilani
Pilani | Dubai | Goa | Hyderabad
 BITS Pilani
Pilani | Dubai | Goa | Hyderabad

Topic
Introduction to Management
1 & Organizations
Learning Outcomes

• Define management
• Tell who managers are and where they
work
• Describe what managers do
• Explain why it’s important to study
management
• Describe the factors that are reshaping
and redefining management
Changing context

• COVID-19 has been called ‘the great

pause’ or ‘ New normal’ a time for
reflection and introspection.
• Post-pamdemic or ‘Next Normal’
• VUCA (Volatile, Uncertain, Complex,
Ambiguous)
• BANI (Brittle; Anxious; Nonlinear; and
Incomprehensible)

7
 Speed
Resilience
Agility
• Flexibility
• Communication
• Remote working
• Employee wellbeing and wellness
 DEFINITION OF MANAGEMENT
Its Nature and Purpose

Management is the process of getting things

done effectively and efficiently, with and
through people.

Emphasizes on accomplishment of selected

objectives.
Cont’d….

• Management includes the activities of an

organization to coordinate the efforts of
its employees to achieve organizational
objectives using resources.
 What is an organization?

• A structured group of people working

together to achieve common set of
organizational goals or objectives.

12
Common Characteristics of
Organizations
 How Are Managers Different from
Nonmanagerial Employees?
• Managers
– Individuals in organizations who direct the
activities of others.
• Nonmanagerial Employees
– People who work directly on a job or task and
have no responsibility for overseeing the work
of others.
– Examples: associates, team members,
independent contributors
 What Titles Do Managers Have?

• Top Managers
– Responsible for making decisions about the direction
of the organization.
– Examples; President, Chief Executive Officer, Vice-
President
• Middle Managers
– Manage the activities of other managers.
– Examples; District Manager, Division Manager
• First-line Managers
– Responsible for directing nonmanagerial employees
– Examples; Supervisor, Team Leader
 Effectiveness and Efficiency

• Effectiveness
– “Doing the right things”, doing those
tasks that help an organization reach its
goals
• Efficiency
– Concerned with the achievement of
goals through efficient use of resources
like people, money, and equipment
 Scope of management

• Management applies to small or large

organizations, to profit and not-for-profit
enterprises, to manufacturing as well as
service industries.
 Managing: Science Or Art?

Managing as practice is an art; the organized

knowledge underlying the practice may be
referred to as a science.
 Managerial functions at different
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
 What Do Managers Do?

In the functions
approach proposed
by French industrialist
Henri Fayol, all
managers perform
certain activities or
functions
 Management Functions
• Planning
– Defining the organizational purpose and ways to
achieve it
• Organizing
– Arranging and structuring work to accomplish
organizational goal
• Staffing
- Management of personnels
• Leading
– Directing the work activities of others
• Controlling
– Monitoring, comparing, and correcting work
performance
 Managerial Skills & Organizational
Hierarchy
The four skills are:
 Technical

 Human

 Conceptual

 Design skills
 The Goals of All Managers and
Organizations
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.
 What Roles Do Managers Play?

Henry Mintzberg highlighted following roles-

• Interpersonal Roles
– Figurehead, Leader, and Liaison
• Informational Roles
– Monitor, Disseminator and Spokesperson
• Decisional roles
– Entrepreneur, Disturbance Handler, Resource
Allocator and Negotiator
 What Skills Do Managers Need?

Robert Katz and others describe four critical skills in

managing
• Conceptual Skills
– Used to analyze complex situations
• Interpersonal Skills
– Used to communicate, motivate, mentor and delegate
• Technical Skills
– Based on specialized knowledge required for work
• Political Skills
– Used to build a power base and establish connections
 Is The Manager’s Job Universal?

The previous discussion describe management as a

generic activity. In reality, a manager’s job varies
with along several dimensions
• Level in the Organization
– Top level managers do more planning than
supervisors
• Profit vs. Nonprofit
– Management performance is measured on
different objectives
Cont’d..

• Size of the Organization

– Small businesses require
an emphasis in the
management role of
spokesperson
• National Borders
– These concepts work
best in English-speaking
countries and may need
to be modified in other
global environments
Why Study
Management?
• All of us have a vested
interest in improving the
way organizations are
managed
• Organizations that are well
managed find ways to
prosper even in challenging
economic times
• After graduation most
students become managers
or are managed
 What Factors Are Reshaping and
Redefining Management?
Welcome to the new world of management! Today
managers must deal with
– Global economic uncertainties
– Changing technologies
– Remote working
– Digitization, automation, and changing views of
jobs/careers
– “NextGen work”—the next generation of work, defined
as part-time, freelance, contract, temporary, or
independent contract work—is predicted to continue to
rise.
Why Are Customers Important to the
Manager’s Job?
• Without customers most organizations
would cease to exist
• Today we’re discovering that employee
attitudes and behaviors play a big part in
customer satisfaction
• Managers must create a customer
responsive where employees are friendly,
knowledgeable, responsive g to customer
needs
 Why Is Innovation Important to the
Manager’s Job?
• “Nothing is more risky
than not innovating”
• Innovation isn’t just
important for high
technology
companies but
essential in all types
of organizations
Management Issues

35
 Readings
https://www.itcork.ie/covid-19-evolved-role-manager

https://www.forbes.com/councils/forbesbusinesscouncil/2023/10/26/how-manage
ment-has-changed-since-covid-19/

https://www.batterman.ch/en/vuca-is-dead-long-life-bani/

1-36
History Module

A Brief History of
Management’s Roots
 Early Management

• Management has been

practiced a long time.
• Organized endeavors
directed by people
responsible for
planning, organizing,
leading and controlling
have existed for
thousands of years
 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
 Classical Approaches (late 1800s
and early 1900s)
• Scientific Management
– Frederick W. Taylor described
scientific management as a method
of scientifically finding the “one best
way to do a job”
– Time and motion study
– Standardization
– Training to workers
– Pay Differentials
– Specialization
– Friendly management-labour
relations
Other Classic Approaches

• General Administrative Theory

– focused on what constituted good
management
– Max Weber (pictured) described the
bureaucracy as an ideal rational form
of organization
– Henri Fayol identified five
management functions and 14
management principles
 14 Principles (Henri Fayol)
1. Division of labor
2. Authority
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interest
7. Remuneration
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure
13. Initiative
14. Esprit de corps
Behavioral Approaches
• Early management writers included
– Robert Owen, was concerned about deplorable
working conditions
– Hugo Munsterberg, a pioneer the field of
industrial psychology
– Mary Parker Follett recognized that organizations
could be viewed from both individual and group
behavior.
The Hawthorne Studies
• Conducted at the Western
Electric Company Works
these studies:
– Provided new insights into
individual and group behavior
in the behavior of people at
work.
– Concluded that group
pressures can significantly
impact individual productivity
Quantitative Approaches
• Quantitative Approach
– Used quantitative techniques to improve decision
making
– Evolved from mathematical and statistical
solutions developed for military problems during
World War II
– W. Edwards Deming and Joseph M. Duran ‘s ideas
became the basis for total quality management
(TQM)
Contemporary Approaches
• Focused on managers’ concerns inside the
organization
– Chester Barnard wrote in his 1938 book The
Functions of the Executive that an organization
functioned as a cooperative system
– Fred Feildler first popularized the contingency
approach (or situational approach) which says
that organizations, employees, and situations are
different and require different ways of managing
• https://www.managementstudyguide.com/ho
w-management-functions-are-performed-at-c
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Questions?????