Chapter 1 : Basic Principles of Management

Topics covered in this snack-sized chapter:



What is Management? arrow_upward


  • Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively.
  • Management comprises planning, organizing, staffing, leading or directing, and controlling an organization or effort for the purpose of accomplishing a goal.

    • Why Management is Necessary? arrow_upward


  • Management is necessary to ensure that tasks are performed with communication, cooperation, synchronization and understanding between teams.

    • Basic Management Functions arrow_upward


  • Management is a social process involving responsibility for economical and effective planning & regulation of operation of an enterprise in the fulfillment of given purposes.
  • It is a dynamic process consisting of various elements and activities:

    • Planning

  • Planning involves the establishment of business goals and objectives, and determining the ways in which they will be achieved.
  • It includes
    • Vision
    • Mission
    • Objectives
    • Goals

    Staffing

  • Staffing is the managerial function of acquiring, deploying, and retaining a workforce of sufficient quantity and quality to create positive impact on the organization’s effectiveness.
  • It includes
    • Recruiting
    • Selecting
    • Hiring
    • Training
    • Retraining

    Organizing

  • It includes developing productive relationship amongst physical, financial and human resources for achievement of organizational goals.
  • It includes
    • Division of labor
    • Delegation of authority
    • Departmentalization
    • Span of control
    • Coordination

    Directing

  • This managerial function deals with influencing, guiding, supervising, motivating sub-ordinates for the achievement of organizational goals.
  • It includes
    • Supervision
    • Motivation
    • Leadership
    • Communication

    Co-ordination

  • Co-ordination is an integral element or ingredient of all the managerial functions
  • Co-ordination through Planning
    • Planning facilitates co-ordination by integrating the various plans through mutual discussion, exchange of ideas
  • Co-ordination through Organizing
    • Manager groups and assigns various activities to subordinates
  • Co-ordination through Staffing
    • A manager should bear in mind that the right no. of personnel in various positions with right type of education and skills are taken
  • Co-ordination through Directing
    • The purpose of giving orders, instructions & guidance to the subordinates is served only when there is a harmony between superiors & subordinates.
  • Co-ordination through Controlling
    • Manager ensures that there should be co-ordination between actual performance & standard performance to achieve organizational goals.

    Controlling

  • It implies measurement of accomplishment against the standards and correction of deviation, if any, to ensure achievement of organizational goals.
  • It includes
    • Establishing standards based upon objectives
    • Measuring and reporting performance
    • Comparing the two
    • Taking corrective/preventive action
    • Directing

    Basic Roles arrow_upward


  • There are 3 broad role categories:

    • Interpersonal Role

  • Roles managers assume to coordinate and interact with employees and provide direction to the organization.
    • Figurehead role: Symbolizes the organization and what it is trying to achieve.
    • Leader role: Train, counsel, mentor and encourage high employee performance.
    • Liaison role: Link and coordinate people inside and outside the organization to help achieve goals.

    Informational Role

  • This role involves handling, sharing, and analyzing information.
    • Monitor role: Analyzes information from both the internal and external environment.
    • Disseminator role: Manager transmits information to influence attitudes and behavior of employees.
    • Spokesperson role: Use of information to positively influence the way people in and out of the organization respond to it.

    Decisional Role

  • This role requires decision making.
    • Entrepreneur role: Deciding upon new projects or programs to initiate and invest.
    • Disturbance handler role: Assume responsibility for handling an unexpected event or crisis.
    • Resource allocator role: Assign resources between functions and divisions, set budgets of lower managers.
    • Negotiator role: Seeks to negotiate solutions between other managers, unions, customers or shareholders.

    Management Activities arrow_upward


  • Satisfy varying entities
  • Dealing with emergencies
  • Purchasing
  • Recruitment
  • Accounting
  • Training
  • Planning
  • Negotiating
  • Sales
  • Dealing with regulatory officials

    • Basic Management Actions arrow_upward


  • Identify what is needed or has to be done
  • Organize resources
  • Monitor performance and task completion
  • Plan ahead for future requirements
  • Deal with any problems that arise

    • Characteristics of a Good Manager arrow_upward


  • Importance of Self Knowledge
    • Identity: Who are we and what do we aspire to become?
    • New information: What else do we need to know?
    • Relationships: Who else needs to be here to work with us?
  • Essential Professional Skills for Managers
    • Intellectual skills: Logical thinking and problem solving
    • Technical skills: Specialized knowledge required for work
    • Ethical skills: Discriminate right from wrong
    • Interactive skills: Communicate intelligently and create an atmosphere that facilitates communication
    • Emotional skills: Ability to identify and handle one’s feelings
  • Management Style and Leadership
    • Organization
    • Situation
    • Personal values
    • Personality
    • Chance
  • Self-Development Methods
    • Observation
    • Reflection
    • Guided readings
    • Visits / attachments
    • Seeking feedback
    • Seeking challenges
    • Presentations
    • Chairing meetings
    • Prepared packages

    Managing Change arrow_upward


  • Change concepts
    • Survival and growth are dependent upon adaptation to changing environment.
    • Environment is influenced and shaped by the decisions and actions of the organization.
    • Learning from experience is essential for adaptation and change.
    • Individuals and organizations change in both common and unique directions.
  • Change affects
    • Structures
    • Chains of command
    • Responsibility limits
    • Incentive systems
    • Company culture and values
  • Required skills
    • Knowledge of product, technology, and processes
    • Knowledge of development models
    • Knowledge of organization of development activity
    • Ability to work toward long-term goals
  • Implementing change
    • Ability to motivate people
    • Empower
    • Non-threatening
    • Facilitative
    • Obtain involvement
    • Obtain commitment


    Thank You from Kimavi arrow_upward


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