Principles and practices of

Management
 Definition of Management
 Management and Administration
 Nature
 Purpose
 Science or Art
 Development of Management Thought
 Contribution of Taylor and Fayol
 Types of Business Organization.
 Artof making things done
through others
Mary peter follet
Knowing what to do and
ensuring whether
achieved in the cheapest
way – F.W.Taylor
 Nature & purpose
 Process of designing & maintaining an environment
in which individuals, working together in groups,
efficiently accomplish selected aims.
 Helps the people to carry out the managerial
functions of planning, organizing, staffing, leading
and controlling
 Applies to any kind of organization
 Applies to managers at all organizational level
 Helps the manager to create surplus output
 Effective and efficient productivity (output/ input)
 Interpersonal role – figurehead, liaison,
leader
 Information role – recipient, disseminator,

spokes person
 Decision role – entrepreneurial, disturbance

handler, resource allocator, negotiator.

 Particulars Administration Management
• Nature •Thinking Function •Doing Function

•Scope •Determines broad •Implements plans

objectives and and achieves goal
policies through people

•Level •Top level function•Middle and lower

level function
•Skills •Conceptual and •Technical and
human skill human skill
•Represents •Owners who invest •Paid individuals
capital who work for
remuneration
•Usage •Government , •Business
Military, organization
4
Educational
 Management
Administration

5
Top Ten Companies
 General Electric -Fairfield, CT, U.S.
 Procter & Gamble -Cincinnati, OH, U.S.
 Nokia -Espoo, Finland
 Hindustan Unilever -Mumbai, India
 Capital One Financial -McLean, VA, U.S.
 General Mills -Minneapolis, MN, U.S.
 McKinsey
 IBM -Armonk, NY, U.S.
 BBVA (Banco Bilbao Vizcaya Argentaria)
-Bilbao, Spain
 Infosys Technologies -Bangalore, India
 Management as a Science
- It is a systematized body of knowledge
- It is a Social Science
- It is Scientific management
 SCIENCE –WHY?
 Methods of inquiry should be systematic
 Information can be ordered and analyzed.
 Results are communicable
 Management as a Art
ART-HOW?
 Managing as practice

-It is concerned with application of

knowledge
- How to do things creatively and skillfully

6
 Top Managers
Chief
Executive
Officer

Middle
Vertical Managers
Specialization Department
managers

Low level
Managers
Supervisor
Office
Mangers

99
Workers 99
9
Laborers 11
99
Technicians 99
11
9
Horizontal Specialization

12
Companies which are running into success
create surplus through productivity
operations .
Productivity =inputs/outputs
Effectiveness and efficiency
 F.w.taylor (1856-1951)
 Performing task could be determined by

developing a true science of management

 Individual worker can be suitable task and

responsibility
 Worker should be scientific education and

development
 Cooperation between the management

labour
 Replacing the rule of thumb with science
 Harmony in group action
 Co-operation
 Maximum output
 Development of workers
 1861-1919
 50 –cent of bonus
 PERT, CPM
 Navy louts 123
 Gannt chart
 1878 -1972
 Motion study
 Fatigue study
 Workers welfare ‘
 1864-1920
 Clearly defined regulations
 Technical competency
 Performance appraisal
 1868-1933
 Human relations
 Organizational structure
 Behavioral management
 1886-1961
 Personal goal and informal group
 Team and team work
 (motoral ,dupout ,GE)
 1924 to 1933
 Western electric company
 Relation ship between the change in the

work place and productivity

Hawthorne experiment
Study
Changes in illumination
Relay assembly test.
1.Changes in wages (Paid for
overall Production)
2. Increased the break time
(two 5 minutes, two 10
minutes, six 5 minutes)
3.Providing food during
breaks
4.Shortening the day time for
30 Minutes, Shortening
more, returning to original
Interview with workers
Bank wiring room
experiments
Outcome
Productivity Motivational effect of the interest being shown
increased(1927-32) in them
productivity varied(2009) Other factors such as the weekly cycle of work
or the seasonal temperature and so the initial
conclusions were overstated and the effect was
weak or illusory
1. Increased productivity The workers felt that they are being watched
2. Increased- Increased-
decreased
3. Increased
4.Increased- increased-
peaked up
Upward communication The workers feel pleased that their ideas are
increase positive being heard.
attitude in the work
environment
Productivity decreased Feared that some of them would be fired out
 1841-1925
 Founder of classical organization
 Managerial behavior
 Technical –relating production
 Commercial –buying, selling
 Financial –capital and optimum use

Security-protection of property
 Accounting-statistics

Managerial -
 Division of work
 Authority and responsibility
 Discipline
 Unity of command
 Unity of direction
 Subordination of individual interest to the

general interest
 Remuneration of personnel
 Centralization
 Scalar chain
 Order
 Equity
 Stability tenure
 Initiative
 Esprit decrops-union strength
 Describe the three branches of the
traditional viewpoint of management:
◦ Bureaucratic
◦ Scientific
◦ Administrative
 Explain the behavioral viewpoint’s
contribution to management.

26
27
 Bureaucratic Management
 Scientific Management
 Administrative Management

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 Refers to the use of rules, a set of
hierarchy, a clear division of labor, and
detailed procedures.
◦ Rules – formal guidelines for the behavior of
employees on the job.
◦ Impersonality – employees are evaluated
according to rules and objective data.
◦ Division of Labor – splitting work into specialized
positions.

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◦ Hierarchical Structure – ranks jobs according to the
amount of authority in each job.
◦ Authority – who has the right to make decisions of
varying importance at different organizational
levels.
Traditional authority
Charismatic authority
Rational,legal authority
◦ Lifelong Career Commitment – both the employee
and the organization view themselves committed to
each other over the working life of the employee.
◦ Rationality – is the use of the most efficient means
available to accomplish a goal.
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 Benefits
◦ Efficiency
◦ Consistency
◦ Functions best when routine tasks are needed
 Drawbacks
◦ Rigid rules and red tape
◦ Protection of authority
◦ Slow decision making
◦ Incompatibility with changing technology
◦ Incompatibility with workers’ values