1 Introduction to Principles and Functions of Management

1 Introduction to Principles and Functions of Management (Text Book Chapters – 1 & 2) Issue # 1 Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 1

s t n e t n o C Management: Meaning, Principles and Functions of Management. Different Schools of Management and Management Thought. Issue # 1 Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 2

… s I t n e m e g a n Ma Getting work done through others Issue # 1 Efficiency Effectiveness Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 3

d n a y c n Efficie s s e n e v i Effect Issue # 1 Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 4

– t n e m e g a Man f o s e l p i c Prin r o l y a T. W. F Develop a science for each element of a man’s work, which replaces the old rule-of-thumb method. Scientifically select and then train, teach, and develop the workmen. Cooperate with the men to insure all work is done in accordance with the principles of the science. There is almost equal division of the work and the responsibility between management and workmen. Issue # 1 Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 5

s: e i d u t S n o i t Time & Mo h t e r b l i G n llia i L & k n a r F Time Study Timing how long it takes good workers to complete each part of their jobs. Motion Study Breaking each task into its separate motions and then eliminating those that are unnecessary or repetitive. Issue # 1 Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 6

ent m e g a n a M s of e l p i c n i r P 14 ol y a F y r n e –H 1. Division of Work: allows for job specialization. Work should be divided among individuals and groups. 2. Authority and Responsibility: Authority right to give orders. Responsibility involves being answerable Whoever assumes authority assumes responsibility 3. Discipline: Common efforts of workers. Penalties 4. Unity of Command: Employees should have only one boss. 5. Unity of Direction: A single plan of action to guide the organization. 6. Subordination of individual interests to the general interests of organization 7 Issue # 1 Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan

ent m e g a n a M s of e l p i c n i r P 14 ol y a F y r n e –H 7. Remuneration: An equitable uniform payment system that motivates and contribute to success. 8. Centralization: The degree to which authority rests at the top of the organization. 9. Scalar Chain: Chain like authority scale. 10. Order: The arrangement of employees where they will be of the most value to the organization. 11. Equity: The provision of justice and fair dealing 12. Stability of Tenure of Personnel 13. Initiative 14. Esprit de corps: Harmony, general good feeling among employees Issue # 1 Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 8

f o s n o i t Func t n e m e g Mana Issue # 1 Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 9

d n a g n i Plann g n i k a M Decision Defining goals, establishing strategy and developing sub plans to choose alternatives and coordinate activities Issue # 1 Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 10

g n i z i n Orga • Deciding where decisions will be made • Who will do what jobs and tasks • Who will work for whom Issue # 1 Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 11

g n i d a Le Inspiring Leading Motivating Issue # 1 Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 12

g n i l l o Contr Monitoring progress towards goal achievement and taking corrective action when needed Issue # 1 Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 13

s a e r A d n a s l e v Le t n e m e g of Mana Levels of Management Top managers Middle managers Issue # 1 r th e O A dm in re so is tr at ur c io n es ns H um an O pe r at io e na nc Fi M ar k et in g First-line managers Areas of Management Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 14

p o T f o Role s r e g a Man Creating a context for change Developing commitment and ownership in employees Creating a positive organizational culture through language and action Monitoring their business environments Issue # 1 Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 15

e l d d i M What ? o D s r e Manag Plan and allocate resources to meet objectives Coordinate and link groups, departments, and divisions Monitor and manage the performance of subunits and managers who report to them Implement changes or strategies generated by top managers Issue # 1 Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 16

f o s e i t i l i b i Respons s r e g a n a M First-Line Manage the performance of entry-level employees Encourage, monitor, and reward the performance of workers Teach entry-level employees how to do their jobs Make detailed schedules and operating plans Issue # 1 Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 17

l a i r e g a Man Roles Interpersonal Informational Decisional Figurehead Monitor Entrepreneur Leader Disseminator Disturbance Handler Liaison Spokesperson Resource Allocator Adapted from Exhibit 1. 4 Negotiator H. Mintzberg, “The Manager’s Job: Folklore and Fact: . ” Harvard Business Review, July-August 1975. Issue # 1 Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 18

l a i r e g Mana Skills Technical Skills Conceptual Skills Issue # 1 Human Skills Motivation to Manage Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 19

l a i r e g Mana : s e g n Challe Ethics Knowledge Management Diversity MANAGER Innovation Globalization Customers E-Business Chapter 1, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. Issue # 1 Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 20

f o s l o o h c S : y r o t ) t s i r a H t s ( t h g u o h T t n e Managem Quality Viewpoint Contingency Viewpoint Systems Viewpoint Behavioral Viewpoint Traditional Viewpoint 1900 Issue # 1 1910 1920 1930 1940 1950 1960 Principles of Management / BSG – 201 1970 1980 1990 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 2000 21

l a n o i t Tradi t n i o p w Vie § Administrative Management § Bureaucratic Management Goals: Efficiency Consistency § Scientific Management Issue # 1 Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 22

of s c i t s i r e t c a Char t n e m e g a n a M c i t a r c u a e r Bu § Rules—formal guidelines for the behavior of employees on the job § Impersonality—employees are evaluated according to rules and objective data § Division of Labor—splitting work into specialized positions Issue # 1 Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 23

c i f i t n e i c S s i t a h W ? t n e m e g Mana Issue # 1 Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 24

e v i t a r t s i Admin t n e m e g Mana Fourteen Principles of Management given by Henry Fayol Issue # 1 Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 25

l a r o i v a h e B s i t a Wh t n i o p w e Vi v Focuses on dealing effectively with the human aspects of organizations v Started in the 1930’s v Emphasis on working conditions v Workers wanted respect v Workers formed unions to bargain with management Issue # 1 Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 26

f o w e i V s m e t s Sy s n o i t a z i Organ Issue # 1 Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 27

y c n e g n i t n o C s i t a h W ? h c a o r p Ap Problem or Situation Important Contingencies Solution or Action A Solution or Action B Solution or Action C Source: Van Fleet, David D. , Contemporary Management, Second Edition. Copyright © 1991 by Houghton Mifflin Company. Issue # 1 Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 28

: h c a o r p p A y t i Qual Positive Company Image Lower Costs and Higher Market Share Decreased Product Liability Issue # 1 Principles of Management / BSG – 201 Quality Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 29

t n e m e g a n a M c i m a l Is : e v i t c e p s Per 1. Work is an act of Worship 2. Work as Trust – Amana 3. Discipline 4. Reliance on Own Self 5. Proper placement depending upon Skills & Talent 6. Fairness and Proper Treatment of Employees 7. Quality – Itqan 8. Consultative and decision making skills – Shura Issue # 1 Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 30

u o Y k n Tha Issue # 1 Principles of Management / BSG – 201 Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan 31