principle and practices of management

1. introduction to management

Definition:

Management is the process of achieving organization goals through co-coordinated performance of five specific functions:  planning, organizing, staffing, directing and controlling.

1.1. Overview of the management process

Planning this the process by which the organization determines what is to be done. It involves the following processes:

· Forecasting-analyzing known information within and external to the organization in order to predict future conditions;

· Goal setting-determining, in light of forecasts and other imperatives, of what the organization wishes to achieve in the relevant time span;

· Decision making-making choices between different goals and courses of action, including the identification and resolution of problems, conflicts and priorities

· One of the key to this process is an understanding of where the organization is coming from and what the future may be like.

organizing- is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. To organize a business involves determining & providing human and non-human resources to the organizational structure. Organizing as a process involves:

1. Identification of activities.

2. Classification of grouping of activities.

3. Assignment of duties.

4. Delegation of authority and creation of responsibility.

5. Coordinating authority and responsibility relationships.

staffing

It is the function of manning the organization structure and keeping it manned. Staffing has assumed greater importance in the recent years due to advancement of technology, increase in size of business, complexity of human behaviour etc. The main purpose o staffing is to put right man on right job i.e. square pegs in square holes and round pegs in round holes. According to Kootz & O’Donell, “Managerial function of staffing involves manning the organization structure through proper and effective selection; appraisal & development of personnel to fill the roles designed and the structure”. Staffing involves:

1. Manpower Planning (estimating man power in terms of searching, choose the person and giving the right place).

2. Recruitment, Selection & Placement.

3. Training & Development.

4. Remuneration.

5. Performance Appraisal.

6. Promotions & Transfer.

directing

It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. It is considered the life-spark of the enterprise which sets it in motion the action of people because planning, organizing and staffing are the mere preparations for doing the work. Direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals. Directing has following elements:

a) Supervision- implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work & workers.

b) Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work. Positive, negative, monetary, non-monetary incentives may be used for this purpose.

c) Leadership- may be defined as a process by which manager guides and influences the work of subordinates in desired direction.

d) Communications- is the process of passing information, experience, opinion etc from one person to another. It is a bridge of understanding.

controlling

It implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals. The purpose of controlling is to ensure that everything occurs in conformities with the standards. An efficient system of control helps to predict deviations before they actually occur. According to Theo Haimann, “Controlling is the process of checking whether or not proper progress is being made towards the objectives and goals and acting if necessary, to correct any deviation”. According to Koontz & O’Donell “Controlling is the measurement & correction of performance activities of subordinates in order to make sure that the enterprise objectives and plans desired to obtain them are being accomplished”. Therefore controlling has the following steps:

· Establishment of standard performance.

· Measurement of actual performance.

· Comparison of actual performance with the standards and finding out deviation if any.

· Taking corrective action

1.2. Features of management

Features of management

The fundamental features of management are: -

(i) Management is universal – principals of management can be applied universally.

(ii) Management applies to all levels of organization

(iii) Management is purposeful – it aims to achieve a specific objective

(iv) Management is concerned with productivity – this implies effectiveness and efficiency

(v) Management is an integrative process; the essence of management lies in the co-ordination of individual effort into a team.

(vi) As managers, people carry out the managerial process of planning, organizing, staffing, directing and controlling

(vii) Management involves the allocation and control of resources, human, money and other physical resources.

(viii) Management is a social process – management is done by people, through people and for people

(ix) Management is multi-disciplinary – it depends upon wide knowledge derived from several disciplines

(x) Management is a continuous process – it is dynamic and an ongoing process.  Management is an art as well as a science.

Importance of management

· Achievement of group goals.

· Optimum utilization of resources.

· Minimization of costs.

· Survival and growth.

· Generation of employment.

Development of the nation.

The fundamental features of management are: -

(i) Management is universal – principals of management can be applied universally.

(ii) Management applies to all levels of organization

(iii) Management is purposeful – it aims to achieve a specific objective

(iv) Management is concerned with productivity – this implies effectiveness and efficiency

(v) Management is an integrative process; the essence of management lies in the co-ordination of individual effort into a team.

(vi) As managers, people carry out the managerial process of planning, organizing, staffing, directing and controlling

(vii) Management involves the allocation and control of resources, human, money and other physical resources.

(viii) Management is a social process – management is done by people, through people and for people

(ix) Management is multi-disciplinary – it depends upon wide knowledge derived from several disciplines

(x) Management is a continuous process – it is dynamic and an ongoing process.  Management is an art as well as a science.

Importance of management

· Achievement of group goals.

· Optimum utilization of resources.

· Minimization of costs.

· Survival and growth.

· Generation of employment.

Development of the nation.

2. THE CONTEXT OF MANAGEMENT

definition on the levels of management

it is the number of levels of management in an organization and will depend on its size, technology and diversity in its range of production

In order to ensure greater efficiency and productivity, the levels of management should be kept to the minimum.  The different levels maybe classified into three categories

2.1. Levels of management or Management hierarchy

Top Level of Management

· It consists of board of directors, chief executive or managing director. The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time on planning and coordinating functions.

· The role of the top management can be summarized as follows -

· Top management lays down the objectives and broad policies of the enterprise.

· It issues necessary instructions for preparation of department budgets, procedures, schedules etc.

· It prepares strategic plans & policies for the enterprise.

· It appoints the executive for middle level i.e. departmental managers.

· It controls & coordinates the activities of all the departments.

· It is also responsible for maintaining a contact with the outside world.

· It provides guidance and direction.

· The top management is also responsible towards the shareholders for the performance of the enterprise.

Middle Level of Management

The branch managers and departmental managers constitute middle level. They are responsible to the top management for the functioning of their department. They devote more time to organizational and directional functions. In small organization, there is only one layer of middle level of management but in big enterprises, there may be senior and junior middle level management. Their role can be emphasized as -

· They execute the plans of the organization in accordance with the policies and directives of the top management.

· They make plans for the sub-units of the organization.

· They participate in employment & training of lower level management.

· They interpret and explain policies from top level management to lower level.

· They are responsible for coordinating the activities within the division or department.

· It also sends important reports and other important data to top level management.

· They evaluate performance of junior managers.

· They are also responsible for inspiring lower level managers towards better performance.

Lower Level of Management

Lower level is also known as supervisory / operative level of management. It consists of supervisors, foreman, section officers, superintendent etc. According to R.C. Davis, “Supervisory management refers to those executives whose work has to be largely with personal oversight and direction of operative employees”. In other words, they are concerned with direction and controlling function of management. Their activities include -

· Assigning of jobs and tasks to various workers.

· They guide and instruct workers for day to day activities.

· They are responsible for the quality as well as quantity of production.

· They are also entrusted with the responsibility of maintaining good relation in the organization.

· They communicate workers problems, suggestions, and recommendatory appeals etc to the higher level and higher level goals and objectives to the workers.

· They help to solve the grievances of the workers.

· They supervise & guide the sub-ordinates.

· They are responsible for providing training to the workers.

· They arrange necessary materials, machines, tools etc for getting the things done.

· They prepare periodical reports about the performance of the workers.

· They ensure discipline in the enterprise.

· They motivate workers.

· They are the image builders of the enterprise because they are in direct contact with the workers

Top Level of Management

· It consists of board of directors, chief executive or managing director. The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time on planning and coordinating functions.

· The role of the top management can be summarized as follows -

· Top management lays down the objectives and broad policies of the enterprise.

· It issues necessary instructions for preparation of department budgets, procedures, schedules etc.

· It prepares strategic plans & policies for the enterprise.

· It appoints the executive for middle level i.e. departmental managers.

· It controls & coordinates the activities of all the departments.

· It is also responsible for maintaining a contact with the outside world.

· It provides guidance and direction.

· The top management is also responsible towards the shareholders for the performance of the enterprise.

Middle Level of Management

The branch managers and departmental managers constitute middle level. They are responsible to the top management for the functioning of their department. They devote more time to organizational and directional functions. In small organization, there is only one layer of middle level of management but in big enterprises, there may be senior and junior middle level management. Their role can be emphasized as -

· They execute the plans of the organization in accordance with the policies and directives of the top management.

· They make plans for the sub-units of the organization.

· They participate in employment & training of lower level management.

· They interpret and explain policies from top level management to lower level.

· They are responsible for coordinating the activities within the division or department.

· It also sends important reports and other important data to top level management.

· They evaluate performance of junior managers.

· They are also responsible for inspiring lower level managers towards better performance.

Lower Level of Management

Lower level is also known as supervisory / operative level of management. It consists of supervisors, foreman, section officers, superintendent etc. According to R.C. Davis, “Supervisory management refers to those executives whose work has to be largely with personal oversight and direction of operative employees”. In other words, they are concerned with direction and controlling function of management. Their activities include -

· Assigning of jobs and tasks to various workers.

· They guide and instruct workers for day to day activities.

· They are responsible for the quality as well as quantity of production.

· They are also entrusted with the responsibility of maintaining good relation in the organization.

· They communicate workers problems, suggestions, and recommendatory appeals etc to the higher level and higher level goals and objectives to the workers.

· They help to solve the grievances of the workers.

· They supervise & guide the sub-ordinates.

· They are responsible for providing training to the workers.

· They arrange necessary materials, machines, tools etc for getting the things done.

· They prepare periodical reports about the performance of the workers.

· They ensure discipline in the enterprise.

· They motivate workers.

· They are the image builders of the enterprise because they are in direct contact with the workers

2.2. Essential skills of a manager

Essential skills of a manager

Skills are the various talents managers need to perform their roles effectively.  These skills are grouped into 4 categories.  

Technical skills – the ability to use methods, equipment and techniques involved in performing specific tasks within the organization. Technical skills are critical for low-level or operational managers.

Conceptual Skills – the ability to see the whole organization as a single unit of operation, to visualize the interrelations between different components of the organization and how they should collaborate for achieving its mission; to deeply understand the external environment of the organization as well as the new possibilities, threats and challenges it presents for the organization.

These skills are more important for the top level management.

Diagnostic Skills – These are skills used to define and understand situations.  They are most important at the top, moderately important in the middle and least important at the bottom of the managerial hierarchy.

Human Skills– the ability to work effectively with others in a personalised manner. This requires a sense of feeling for others an appreciation of their rights, which can be demonstrated by the way the managers interact with their subordinates, equals and superiors. Human skills also refer to the ability to succeed, to cooperate with others for a common goal, to delegate tasks and authority in ways to empower others, to deal with conflict situations and generate consensus, and to build an enjoyable work environment. These skills are necessary for all levels of management     

2.3. Characteristics of successful manager

1.Will to manage. A good manager must be willing to accept responsibility and have the confidence to be accountable for the work of others. Some people have low desire to manage for the following reasons;

· They lack confidence

· Are afraid of making decisions

· Fear responsibility /accountability

· Are happy with their current positions

2.Knowledge of management process A manager should have an understanding of the management process and management functions through formal training and education in management.

3.Intellectually capable He should posses the necessary level of intelligence and ability to make logical decisions.

4.Ability to command respect A manager must be able to earn respect from his subordinates so that they are able to obey him, he must therefore be able to understand employees, be honest, fair and have a positive attitude.

5.Have good communication skills He must be able to make himself understood either orally or through writing. Ineffective communication leads to misunderstanding which results in mistakes.

6.Integrity Managers act on behalf of the organization. They must have a high sense of what is right and what is wrong and practice it. They must conduct business and trade in a straight, ethical and acceptable manner.

7.Loyalty They must show loyalty to the organization. They must always try to give good image of the organization both within and without.

8.Good personality A good manager should be one ready to work with others and one who does not always insist on doing things his own way. He should have a stable character- with few personal problems which might be a liability to the firm for example alcoholism, drug addiction or domestic problems. 

3. planning

Definition: Planning can be defined as deciding in advance what to do, how to do it, when to do it and who is to it. Or planning is the management function of anticipating the future and the conscious determination of a future course of action to achieve the desired results.

3.1. Elements of planning

Elements of planning

The planning function requires making decisions about four fundamental elements of plans:

1. Objectives. Objectives are statements of future conditions that a manager hopes to achieve. All sets of objectives have three characteristics: priority, timing, and measurement. The phrase priority of objectives implies that at a given time, accomplishing one objective is more important than accomplishing others. Time dimensions imply that an organization's activities are guide by different objectives, depending on the duration of the action being planned.

Effective planning requires measurement of objectives. A variety of measurements exists to quantify objectives in the eight areas that management expert Peter Drucker suggests: market standing, innovations, productivity, physical and financial resources, profitability, manager performance and responsibility, worker performance and attitude, social responsibility.

2. Actions. Actions are the means, or specific activities, planned to achieve the objectives. The terms strategies and tactics refer to planned courses of action.

3. Resources. Resources are constraints on the course of action. It also involves budgeting - identifying the sources and levels of resources that can be committed to the courses of action. Management can select the type of budget that best suits the planning needs of the organization.

4. Implementation. Implementation involves the assignment and direction of personnel to carry out the plan. The three approaches to implementation are authority, persuasion, and policy.

5. Planning is goal oriented – plans emanate from objectives.

6. Planning is a primary function –it is the basic of the management process.

7. Planning is a pervasive –it is the function of each and every of manager irrespective of the level and area of his / her operation.

3.2. Types of plans

1. Strategy

Is a set of activities or processes that an organization intends to use in order to achieve its goals & objectives.

2. Policies

A policy is a pre-determined guide established to provide discretion in decision-making. Policies encourage discretion and initiative but within limits.

3. Procedures

A procedure is a series of steps for the accomplishment of some specific task. It is a chronological sequence of steps to be under taken to attain an objective.

Procedures are a guide to action rather than thinking and detail the exact manner in which certain activities must be accomplished. They do not allow for discretion.

4. Rules

This spell out the specific required actions or non-actions, allowing no discretion, they are the simplest type of plan. Rules serve as a guide but provide no discretion in their application.

5. Programmes

A Program is a complex of goals, procedures, rules, tasks, assignments, steps to be taken, resources to be employed and other elements necessary to carry out a given course of action. They are ordinary supported by budgets.

A primary programme may call for many supporting programmes. These and other programmes must be devised and implemented before the primary programme and this calls for coordination since delay in one area may affect all the other programmes.

6. Budgets

A budget is a statement of expected results expressed in numerical terms for a definite period of time in the future. It expresses a plan in precise terms.

7. Schedules

A schedule specifies time limits within which activities are to be completed. Scheduling is the process of establishing a time sequence for the work to be done. Schedules are essential for avoiding delays and for ensuring continuity of operation. A schedule lays down a timetable fixing starting and finishing dates for different activities

8.Project

Any undertaking that has definite, final objectives representing specified values to be used in the satisfaction of some need or desire.