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Principles of Management
V N Pandey
TMDC
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Definition of Management
Management is the process of designing
and maintaining an environment in which
individuals working together in groups
efficiently accomplish selected aims.

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Management
As managers, people carry out the managerial
functions of planning, organising, staffing,
leading and controlling.
Management applies to any kind of organisation.
It applies to managers at all levels
The aim of all managers is to create a surplus
Managing is concerned with productivity; this
implies productivity and efficiency
Quotation
"The manager's job is to make human
strength effective and human weakness
irrelevant." Peter F. Drucker
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Ten managerial roles
1. The figurehead role (performing
ceremonial and social duties as the
organizations representative)
2. The leader role
3. The liaison role (communicating
particularly with outsiders)

Interpersonal Roles
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Ten managerial roles (contd.)
1. The recipient role (receiving information
about the operation of an enterprise)
2. The disseminator role (passing
information to subordinates)
3. The spokesperson role (transmitting
information to those outside the
organization)

Informational roles
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Ten managerial roles (contd.)
1. The entrepreneurial role
2. The disturbance-handler role
3. The resource allocator role
4. The negotiator role (dealing with various
persons and groups of persons)

Decision roles
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Time spent in carrying out
managerial functions
Top level
managers
Middle- level
managers
Junior- level
managers
C
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Partly based on and adopted from Thomas A Mahoney, Thomas H Jerdee,and
Stephen J Carroll, The Jobs of Management, Industrial Relations February 1965)
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Managerial Skills and
Organizational Hierarchy
Technical Skill knowledge or proficiency in
activities involving methods, procedures, and
processes.
Human Skill the ability to work with people
Conceptual Skill the ability to see the big
picture
Design Skill The ability to solve problems in
ways that will benefit the enterprise. To be
effective, particularly at upper levels, managers
must be able to do more than see a problem .. T
work out a practical solution to a problem.
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Skills and Management levels
Top level
managers
Middle- level
managers
Junior- level
managers
Technical
skills
Human
Skills
Conceptual
and design
skills
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Systems Approach to Management
EXTERNAL ENVIRONMENT
EXTERNAL ENVIRONMENT
Managerial Knowledge, Goals of
Stakeholders, Use of Inputs
1. PLANNING
2. ORGANIZING
3. STAFFING
4. LEADING
5. CONTROLLING
To produce Outputs
Stakeholders
1. Employees
2. Consumers
3. Suppliers
4. Stockholders
5. Governments
6. Community
7. Other
Inputs
1. Human
2. Capital
3. Managerial
4. Technological
Outputs
1. Products
2. Services
3. Profits
4. Satisfaction
5. Goal integration
6. Other
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Essentials of Management,
Harold Koontz, Heinz Weihrich
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1. PLANNING
Objectives

Strategies
Policies: Major or Minor
Procedures
Rules
Programmes: major or minor and supporting

Budgets: Capital and Revenue
Purpose
or Mission
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Definitions
Mission or Purpose identifies the basic
function or task of an enterprise or agency
or any part of it; the reason for its
existence.
Objectives or Goals are the ends towards
which activity is aimed they are the
results to be achieved.
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Definitions
Strategies:
general programmes of action and
deployment of resources to attain
comprehensive objectives
the determination of the basic long-term
objectives of an enterprise and the adoption
of courses of action and allocation of
resources necessary to achieve these goals.
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Definitions
Policies are general statements or
understandings which guide or channel
thinking in decision making.
Policies define an area within which a
decision is to be made and ensure that the
decision will be consistent with, and
contribute to, an objective.
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Definitions
Procedures are plans that establish a
required method of handling future
activities. They are chronological
sequence of required actions.
Rules spell out specific required actions or
nonactions, allowing no discretion. They
are usually the simplest type of plan.
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Major kinds of strategies and
policies
Growth how much growth should occur/
How fast? Where? How should it occur?
(organic/inorganic)
Finance How will growth be financed?
Organization Centralized or
Decentralized?
Personnel HR policies union relations,
hiring, training, appraisal, development,
etc.
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Major kinds of strategies and policies (contd.)
Public relations to support major
strategies and efforts
Products or Services:
What is our business?
Who are our customers?
What do our customers want?
How much will our customers buy and at what
price?
Do we wish to be a product leader?
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Major kinds of strategies and policies (contd.)
Products or Services:
Do we wish to develop our own new products?
What advantages do we have in serving customer
needs?
How should we respond to existing and potential
competition?
How far can we go in serving customer needs?
What profits can we expect?
What basic form should our strategy take?
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Major kinds of strategies and policies
(contd.)
Marketing strategies are designed to guide
managers in getting products or services
to customers and in encouraging them to
buy. (Wallet test)
Two basic business functions Innovation
and Marketing (Peter Drucker).
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Major kinds of strategies and policies
(contd.)
Marketing strategies:
Where are our customers, and why do they
buy?
How do customers buy?
How is it best for us to sell?
Do we have something to offer that our
competitors do not?
Do we wish to take legal steps to discourage
competition?
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Major kinds of strategies and policies
(contd.)
Marketing strategies:
Do we need, and can we supply supporting
services?
What are the best pricing strategy and policy
for our operations?
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Three Generic Strategies by Porter
1. Overall Cost Leadership Strategy - aims
at reduction in cost, based to a great
extent on experience. Objective is to
have a low cost structure compared to
competitors.
2. Differentiation Strategy to offer
something unique in the industry with
respect to products or services.
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Three Generic Strategies by Porter
3. Focus Strategy - to concentrate on
special groups of customers, a particular
product line, a specific geographic
region. This may be accomplished by a
low-cost strategy, differentiation or both.
Twelve tips to be a good manager
1. Acknowledge your staff:

When a member of staff
does a job well, make sure
you notice it, and
acknowledge her or him for
it. Don't let the
opportunity to praise a
piece of good work go by.
2. Never, ever, humiliate anyone
on your staff team
If you are annoyed with
someone on your team, or
they have done something
wrong, make sure you keep
your cool, especially in
public. If you humiliate
someone, he or she will hold
a grudge against you, and
their work will suffer too

3. Create a culture where
mistakes are OK
If you don't make mistakes,
chances are you are not
stretching yourself. If your
staff are allowed to feel that
mistakes are part of reaching
for new highs, rather than
something to feel bad about,
or shamed for, then they will
take more risks on your
behalf.

4. Remember personal details
Take time to get to
know your staff, who
they are, who is
important in their lives,
etc. Be interested in
them as people, not
just as workers
5. Don't hide behind your
position
Be human and friendly
with your staff - that
way you will all be
able to support and
encourage each other
when things are tough
6. Be approachable
Allow your staff to
feel that they can
come and talk to you
about sensitive issues,
about inside- and
outside-work
difficulties, and that
you will respect them,
and not hold what
they share against
them
7. Admit your mistakes
If you get it wrong, say
so. Managers don't have
to be infallible! Your
staff will respect you
more if you are able to
admit your mistakes, and
then set about sorting out
a solution.

8. Listen in such a way that
your employees will talk to you
Often people feel
afraid of, or
intimidated by,
management. Make sure
you show people that
you are willing to listen
to what they have to
say, that they are
important and worthy of
your time.
9. Criticize in a constructive manner
If you feel that an employee has the potential to do much
better at his/her job, take them aside and tell them how you
feel. Sometimes, the belief that a superior has in you pushes you
to achieve more.
10. Avoid last minute tasks
No one likes to start
a task at the end of
the day, especially
when you have other
plans for the evening.
Do not throw work at
your employees just
as they are about to
call it a day
11. Be clear in your requests
It is your responsibility
to ensure that people
understand your
requests - so
communicate clearly,
and ask if people have
understood what you
are asking for
12. Treat everyone respectfully and
courteously at all times.
Particularly when
there is a problem!
Everyone who works
for you is a valuable
human being who
deserves respect. A
manager is only as
good as how she or he
treats the people on
her or his team