BBA LLB

Paper Code: BBA LLB 115 Paper:

POM Principles of Management
PRINCIPLES OF MANAGEMENT
UNIT-I

By: Dr.Seema Mam

Presented by: Dr. Seema Mam
[email protected]
BOOKS
1) Management by James A.F.Stoner, Daniel
R.Gilbert and R.Edward Freeman

2) Management-Concepts & Practices by C.B.Gupta

3) Principles & Practices of Management-L.M.Prasad

REFERENCE BOOKS
1. Stephen P. Robbins, Fundamentals of Management:
Essentials Concepts and Applications, Pearson
Education, Noida (UP), 2017, (10thEdn.)
2. H. Koontz, Essentials of Management, McGraw Hill
Education, New Delhi, 2015 (10thEdn.)
3. Andrew W. Ghillyer, Management - A Real World
Approach, McGraw Hill Education, New Delhi, 2011
4. K. Ghuman& K. Aswathappa, Management: Concepts,
Practice and Cases, Tata McGraw Hill Education Private
Limited, New Delhi, 2010
CONCEPT OF MANAGEMENT
1) As an Economic Resource
2) As a Team
3) As an Academic Discipline
4) As a Process
5) As a Human Process
Definitions of Management
“To manage is to forecast, to plan, to organise, to command,
to co-ordinate and to control.”—Henry Fayol. It attempts to
describe management in terms of what a manager does, and not
what management is.

“Management is a multipurpose organ that manages a

business and manages manager, and manages worker and
work.”— P. Drucker : The Practice of Management
Drucker stresses three jobs of Management:

Managing a business;
Managing manager; and
Managing workers and work.

Even if one is omitted, we would not have

management any more and we also would not have a
business enterprise or an industrial society.
According to Peter Drucker, the manager has to balance and
harmonise three major functions of the business enterprise.

Hence, a manager is a dynamic and life-giving element in

every business. Without efficient management we cannot
secure the best allocation and utilisation of human,
material and financial resources.
Nature of Management
Management is ---
Universal
Purposeful
Unifying Force
Social Process
Multidisciplinary
Continuous Process
Intangible
Situational
Executive Function and
Art as well as Science
Significance of Management
Achieving Group Goals-It arranges the factors of
production, assembles and organizes the resources,
integrates the resources in effective manner to achieve
goals.
Optimum Utilization of Resources- Management utilizes
all the physical & human resources productively.

A manager’s job is to ensure good management in an

organisation. This is achieved by learning the ins and outs
of management.
Characteristics of Management
Goal-oriented
Pervasive
Multi-dimensional
Continuous process
Group activity
Dynamic function
Intangible force
Goal-oriented process-
An essential aspect of management is to
combine individual efforts and direct them towards
achieving organisational goals. For example, an
organisation can have a profit motive whereas a social
work organisation might have a goal of eradicating
illiteracy among children. Management recognises these
goals and aims to fulfill them.
Pervasive-
Management is a requirement and essential for the
functioning of all kinds of organisations- social, economic
or political. Without management, the processes of an
organisation would be chaotic and unordered.

Multidimensional-
Management has three dimensions:- Work management,
Management of people and Management of
operations.
Continuous Process-
We now know that there are various functions of
management. These are- planning, organising, directing,
staffing and controlling. As a matter of fact, a manager
performs all these functions simultaneously AT all times.
Group Activity-
An organisation consists of a large number of individuals
having different reasons and purposes to join. All differ based
on their needs and behaviours. However, it is important to
realise that these diverse individuals work together towards the
achievement of the organisational goals.
Dynamic Function-
An organisation has to adapt to the environment in order
to succeed. Thus management is dynamic in nature and
adapts to the ever-changing social, economic and political
conditions.
Intangible Force-
Management cannot be touched or it isn’t tangible. However
effective management can be easily felt. Evidently, if there is
order instead of chaos within an organisation, the employees
are happy and the organisational goals are being organised it
can be easily said that there exists good management.
Process of Management
Management is a distinct ongoing process of allocating
inputs of an organization (human and economic resources)
by typical managerial functions (planning, organizing,
directing and controlling) for the purpose of achieving
stated objectives, viz., output of goods and services
desired by its customers (environment).
Process of Management
Contd.
Planning and Decision Making – Determining Courses
of Action

Planning is the determination of objectives and

formulation of plans, strategies, programmes, policies,
procedures and standards needed to achieve the desired
organisation objectives. To implement the plans there
must be some organisation structure.
Organizing – Coordinating Activities and Resources

Organizing can be defined as the process by which the

established plans are moved closer to realization. It
involves determining how activities and resources are to
be assembled and coordinated. Basically organizing is
deciding where decisions will be made, who will do what
jobs and tasks, who will work for whom, and how
resources will assemble.
Staffing – Manpower Planning, Recruitment,
Selection, Training …

Staffing can be defined as the process of filling all the

positions with adequate and qualified personnel. It has
become important with growing size of organisation,
technological advancement and recognition of the human
factor in industry.
Directing – Managing, Motivating and
Leading People
The fourth basic managerial function
is Directing.

The skills of influencing people for a particular

purpose or reason is called Directing. It
involves Motivation, Supervision,
Communication, Issuing orders etc. Is
considered to be the most important and
challenging of all managerial activities.
Controlling – Monitoring and Evaluating activities
Monitoring the organizational progress toward goal
fulfillment is called controlling. Monitoring the progress
is essential to ensure the
achievement of organizational goal.

Controlling is measuring, comparing, finding deviation

and correcting the organizational activities which are
performed for achieving the goals or objectives.
Levels of Management
The levels of management can be classified in three broad
categories:
Top level / Administrative level
Middle level / Executory
Low level / Supervisory / Operative / First-line
managers
Managers at all these levels perform different functions.
The role of managers at all the three levels is discussed
below:
Levels of Management
SKILLS OF A MANAGER
According to American social and organizational psychologist
Robert Katz , the three basic types of management skills
include:
1. Technical Skills
Technical skills involve skills that give the managers the
ability and the knowledge to use a variety of techniques to
achieve their objectives. These skills not only involve
operating machines and software, production tools, and pieces
of equipment but also the skills needed to boost sales, design
different types of products and services, and market the
services and the products.
e.g., pathologist analyzing a blood sample.
2. Conceptual Skills
These involve the skills managers present in terms of the
knowledge and ability for abstract thinking and
formulating ideas. The manager is able to see an entire
concept, analyze and diagnose a problem, and find
creative solutions. This helps the manager to effectively
predict hurdles their department or the business as a whole
may face.
e.g., An analysis by the executive V.P of the potential
merger with other firm.
3. Human or Interpersonal Skills
The human or the interpersonal skills are the skills
that present the managers’ ability to interact, work or
relate effectively with people. These skills enable the
managers to make use of human potential in the
company and motivate the employees for better
results.
eg.,an accounting manager supervising a group of
audit accounts.
4. Diagnostic Skills

The ability to determine, by analysis and examination, the

nature and circumstances of a particular condition. It is the
ability to quickly get at the true cause of a certain situation
through a maze of data, observations, and facts.

e.g., analyzing the cause of employee turnover

ROLES OF MANAGER
Roles of Manager
Interpersonal Roles:

(1) The figure head role (performing ceremonial and

social duties as the organization's representative
(2) The leader role and
(3) The liaison role (communicating particularly with
outsiders).
Informational Roles:

(1) The recipient role (receiving infor­mation about the

operation of an enterprise)
(2) The disseminator role (passing in­formation to
subordinates) and
(3) The spokesperson role (transmit­ting information to
those outside the organisation).
Decision Roles:

(1) The entrepreneurial role.

(2) The disturbance handler role.
(3) The resource allocator role.
(4) The negotiator role.
Management Vs Administration
Management is all about plans and actions,
but the administration is concerned with
framing policies and setting objectives. ... The
manager looks after the management of the
organization, whereas administrator is
responsible for the administration of the
organization.

Management focuses on managing people

and their work.
Management Vs Administration
Management Vs Leadership
Evolution of Management Thought-
Four stages

Pre-scientific management period

Classical Theory
-Scientific Management of Taylor
-Administrative Management of Fayol
-Bureaucratic Model of Max Weber
Neo-classical Theory or Behaviour Approach
Modern Theory or Systems Approach
A number of monumental examples of management can
be traced like- The Sumerian civilisation, Egyptian,
Chinese, Greek and Roman civilizations represent
significant practices in management.
They represent management concepts that helped in
smooth administration of these civilizations. Though
famous even today, they do not provide significant
information about the way these civilizations were
managed.
In 1494 the technique of double entry book-keeping was
introduced to maintain financial records of the business.
In 1800s, management theories developed as a systematic field
of knowledge. Until formal management theories developed,
pre-scientific management theories contributed to the
management thought.
The theories were primarily related to the organisational
environments. They focused on specific organisational
problems in specific ways. As each manager had his own way
of viewing the organisation, some emphasised on production
and others on human relations.
There was no single universally accepted management
theory that could apply to all organisations at all times. It
was by the end of the 19th century that management
became a systematic field of study.

The early contributions include those made by Taylor in

the early 20th century as scientific management.
Classical and neoclassical approach
to management made outstanding contribution to the
development of management thought.

Under classical approach, attention was focused on job

and machine.Organisation was machine and people were
parts of that machine.
On the other hand, neoclassicalapproach
to management emphasizes on increasing production
through an understanding of people.
CLASSICAL APPROACH
TRADITIONAL APPROACH
The principal aim of the organisation is productivity.
It can be realised only by a formal organisation structure.
The formal structure has to be based on:
(a) Rules and regulations
(b) Divisions of labour and specialisation
(c) Standardization of roles
(d) Assignment of tasks and responsibilities
(e) Hierarchy of authority
(f) Control through this hierarchy
(g) Order and discipline
(h) Observance of a few other principles

The workers are to be encouraged through monetary

incentives.
The NeoClassical Theory is the extended version of the
classical theory wherein the behavioral sciences gets
included into the management. According to this theory,
the organization is the social system, and its performance
does get affected by the human actions.

This approach is often referred to as “behavioral theory

of organization” or “human relations” approach in
organizations.
NEO-CLASSICAL FEATURES
It focuses on group relationships
It involves study of groups and group behaviour
Main concepts are group dynamics and informal
organisations
Considers conflicts as unavoidable and sometimes useful
Business organisations are socio-technical systems
It was considered that people have different needs and
attitudes
It has wide scope
Characteristics of Behavioural Management
The behavioral approach to management focuses
on human relations and employee well-being. Rather
than simply setting tasks and demanding that they be
completed, the behavioral-style manager helps create
conditions that keep workers satisfied and motivated.

1.Study of Human Political Behaviour:

Behavioural Approach stands for the study of human
behaviour in politics. It places emphasis upon the study of
both individual as well as group behaviour in politics.
2. Empirical Methods:
Behavioural approach advocates the use of empirical
methods of study involving data collection through field
methods, and analysis of data using statistical and
mathematical measurement techniques.
3. Interdisciplinary Focus:
It advocates the study of politics with the help of
knowledge drawn from other social sciences, particularly
sociology, psychology and anthropology. It even accepts
the need to use concepts drawn from natural sciences.
4. Scientific Theory of Politics:
Behavioural Approach rejects the traditional approach and
theory of politics. It accepts and advocates the need for
building a scientific theory of politics. Political Theory
should be as much scientific and precise as are the natural
sciences.
5. Regularities:
Behavioural Approach holds that there are discoverable
uniformities in human political behaviour. These can be
expressed in generalizations or theories with explanatory
and predictive values.
6. Verification:
The validity of such generalizations has to be
testable with reference to relevant behaviour.

7. Techniques:
Means for acquiring and interpreting data
cannot be taken for granted. Several different
techniques can be found or formulated for
observing, recording and analyzing
behaviour.
8. Quantification:
Precision in the recording of data and the statement of
findings require measurement and quantification, not for
their own sake, but only where possible, relevant and
meaningful in the light of other objectives.
9. Value-free Study or Value Neutrality:
“Ethical evaluation and empirical explanation involve two
different propositions. For the sake of clarity, these should
be kept analytically distinct. Study of Politics has to be
empirical and value-free. Values have to be kept out of
empirical study of facts.
10. Systematization:
Research ought to be systematic. It means that, theory and
research are to be seen as closely inter-twined parts of a
coherent and orderly body of knowledge.
11. Pure Science:
The application of knowledge is as much a part of the
scientific enterprise as theoretical understanding. It admits
and advocates a link between theoretical understanding
and practical application of knowledge.
12. Integration:
Because the social sciences deal with the whole human
situation, the political research cannot ignore the findings
of the other disciplines.
Recognition of inter­relationship between Political Science
and other social sciences can provide immense help to
bring political science back to its status of earlier centuries
and ensure its return to the main fold of the social
sciences.
SYSTEM SCHOOL
Systems approach is based on the generalization that
everything is inter-related and inter­dependent. A system is
composed of related and dependent element which when
in interaction, forms a unitary whole.
One its most important characteristic is that it is
composed of hierarchy of sub-systems. That is the parts
forming the major system and so on. For example, the
world can be considered-to be a system in which various
national economies are sub-systems.
In turn, each national economy is composed of its various
industries, each industry is composed of firms’ and of
course a firm can be considered a system composed of
sub-systems such as production, marketing, finance,
accounting and so on.

Systems theory is useful to management because it aims

at achieving the objectives and it views organisation as an
open system.
CONTINGENCY SCHOOL
The contingency school of management can be
summarized as an “it all depends” approach. The
appropriate management actions and approaches depend
on the situation.
Managers with a contingency view use a flexible
approach, draw on a variety of theories and experiences,
and evaluate many options as they solve problems.
There is no best way to manage. Optimum way …
CHARACTERISTICS-
1) Management is situational The technique of
management depends on complexity of the situation.
2)It is the ‘if and ‘then ‘approach to management, ‘If’
represents the independent variable and ‘then’ represents
the dependent management variable or the technique to
be adopted in that situation. ‘If’ workers have strong
physiological needs, ‘then’ financial motivators should
be adopted and ‘If’ they have strong higher-order needs,
‘then’ non-financial motivators should be adopted.
3. Management principles are not universal in nature as
there is no best style of management. Management is
situational and managerial actions depend upon the
environmental circumstances.
4. It helps in understanding the complex organisations as
it focuses on multivariate nature of organisations. It helps
an organisation to operate under different environmental
conditions. Same problem can have different solutions at
different points of time and different problems can have
same solution at the same point of time.
5. It provides insight into organisation’s adaptability to both
internal and external environment. It is a matter of fitting
the internal environment to its external environment.
Development of Management
Thought- Case Study