• PRINCIPLES AND PRACTICES OF
MANAGEMENT
• REFEREED BOOK
– MANAGEMENT PRINCIPLES AND GUIDELINES BY
THOMAS N DUENING AND JOHN M
IVANCEVICH
Etymology of the word
• The verb manage comes from the Italian maneggiare
(to handle — especially a horse), which in turn
derives from the Latin manus (hand).
• The French word mesnagement (later ménagement)
influenced the development in meaning of the
English word management in the 17th and 18th
centuries.
• Management has to do with power by
position
Historical development
• Some see it as a late modern conceptualization. It began with Adam smith,
john Stuart mill, Eli Whitney, James watt etc. in such case there is no premodern history. Only harbingers (stewards) were there.
• Some writers trace back to Sumerian traders and to the builders of
pyramids of ancient Egypt.
• Though there existed slave-owner relationship they did not feel compelled
to face the issues of management.
• With the spread of Hindu- Arabic numerals(5th -15th century) and the
codification of double entry book keeping(1494) provided tools for
management assessment, planning and control.
• With the emergence of the industrial revolution it made sense to most of
the owners to carry out the functions for and by themselves
• With the growth and expansion, split between the owners, day to day
managers (independent specialists in planning and control) the concept of
management has become more common.
development
• Peter Drucker (1909 – 2005) wrote one of the earliest books on applied
management: Concept of the Corporation (published in 1946). Drucker
went on to write 39 books, many in the same vein.
• H. Dodge, Ronald Fisher (1890 - 1962), and Thornton C. Fry introduced
statistical techniques into management-studies.
• In the 1940s, Patrick Blackett combined these statistical theories with
microeconomic theory and gave birth to the science of operations
research. Operations research, sometimes known as "management
science"
• Some of the more recent developments include the Theory of Constraints,
management by objectives, reengineering, and various informationtechnology-driven theories such as agile software development, as well as
group management theories such as Cog's Ladder
development
• Towards the end of the 20th century, business management came to
consist of six separate branches, namely:
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–
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–
–
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Human resource management
Operations management or production management
Strategic management
Marketing management
Financial management
Information technology management responsible for management
information systems
• In 21st century Branches of management theory also exist relating to
• nonprofits and to government: such as public administration, public
management, and educational management.
• Further, management programs related to civil-society organizations have
also spawned programs in non profit management and social
entrepreneurship
NATURE OF MANGAERIAL WORK
• For profit organization:
– Satisfaction of range of stake holders (for the
share holders)
– Creating valued products at a reasonable cost (for
customers)
– Rewarding employment opportunities (for
employees)
• For non profit organization:
– Keeping the faith of the donors
Definitions of management
It is “the central core of our national as well as personal
activities and the way we manage ourselves and our
institutions reflects with alarming clarity what we and
our society will become” Claude s. George
“art of getting things done through the people” Mary
Parker Follett
George R. Terry, defines management as a process
“consisting of planning, organizing, actuating and
controlling, performed to determine and accomplish the
objectives by the use of people and resources
Modern Understanding of
Management
It is an attempt to create a desirable future keeping past and
present in the mind.
Management is practiced in and is a reflection of particular
historical era.
Management produces consequences and effects that emerge
overtime.
WHAT IS MANAGEMENT
• Management is a process: it involves certain
functions and activities that managers perform
• Management is a discipline: it is an accumulated
body of knowledge that can be learned
• Management is a human activity: human
resource as the asset to the organization
• Management as a career: it progresses through
the sequence of activities, jobs, organizations and
challenges
FUNCTIONS OF MANAGEMENT
• Classifications of management functions vary; though the different
names are given by different authors the functions remain the
same.
• Newman and summer (4): organising, planning, leading and
controlling
• Henri Fayol (5) : planning, organising, commanding, coordinating
and controlling
• Luther Gulick(7): POSDCORB: planning, organising, staffing,
directing, coordinating, reporting, and budgeting.
• Warren Haynes and Joseph Massie (7): decision- making,
organising, staffing, planning, controlling, communication and
directing.
• Koontz and O’Donnell (5): planning, organizing, staffing, directing
and controlling.
THE FOUR FUNCTIONS OF
MANAGEMENT
Planning
Choose Goals
Organizing
Controlling
Working together
Monitor & measure
Leading
Coordinate
PLANNING
It is the function that determines what is to be done and
how it is to be done.
Eg. Lesson plan by the lecturer
It is looking ahead and preparing for the future.
Planning is the process used by managers to identify and
select appropriate goals and courses of action for an
organization.
3 steps to good planning :
1. Which goals should be pursued?
2. How should the goal be attained?
3. How should resources be allocated?
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The planning function determines how effective and
efficient the organization is and determines the strategy of
the organization.
ORGANISING
• Reflects how organisation tries to accomplish
plan
• Organising function creates a structure of task
and authority relationships that allows them
to work together to achieve the goals
• It is grouping the people in to departments based
on the tasks to be performed and laying out the
authority and responsibility for the members
LEADING
• Leadership is the process by which a manger guides
and influences the work of his subordinates.
• In leading, managers determine direction, state a clear
vision for employees to follow, and help employees
understand the role they play in attaining goals.
• Leadership involves using power, influence, vision,
persuasion, and communication skills.
• It requires both high level of motivation from the
leader and the total commitment from the worker
CONTROLLING
• It involves actual results are consistent with
the desired results
• The outcome of the controlling function is the
accurate measurement of performance and
regulation of efficiency and effectiveness.
• This function involves
– Establishing the standards of performance
– Identifying the gaps between actual Vs desired
– Necessary actions to bridge the existing gaps
THE PROCESS OF MANAGEMENT
Planning
Select goals and
ways to attain
them
Performance
Resources
•Human
•Financial
•Raw Materials
•Technological
•Attain goals
Organizing
Controlling
Monitor activities and
make corrections
Assign responsibility for
task accomplishment
•Services
•Efficiency
•Effectiveness
•Information
Leading
Use influence to
motivate employees
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•Products