Henry Fayol , General Management, Classical Management theory 14 principles of management organizational structures

1. CR11 Management Concepts and
Applications
Dr. Parmeshwar Biradar
MBA (Finance, HR, Operations Management), SET, PhD (
Commerce and Management)

2. Syllabus
1. INTRODUCTION TO Management : Basic Concepts of Management, Definition, Need
and Scope, Different schools of management – Behavioral Scientific System,
Contingency Management theories by - F. W. Taylor, Henry Fayol and Elton Mayo
Managerial Skill and Functions - Level of Management- Functions of Management
2. PLANNING – Definition, Nature, Importance, Steps, Limitations, MBO
3.ORGANISING - Definition, Nature, Importance, Principles, Centralization –
decentralization Organization structures - Line & Staff – functions, product,
geographical, customer, virtual – boundary
4. LEADING – Nature and Scope STAFFING – Definition, Nature, Importance, steps and
DECISION MAKING – Definition, Nature, Importance steps
5.CONTROLLING – Definition, Nature, Importance, Steps, Techniques

3. Understanding management concepts
Theories of management
Functions of Management
The Planning Function of Management
Objectives of the Session

4. Management in ancient world

5. What do You mean by MANAGEMENT
?

6. Management Concept

7. Management is the
attainment of
organizational goals
The art of knowing what
you want to do in the best
and cheapest way.
The art of getting things
done through people.

8. Characteristics of Management
Management
is an
organized
activity
Management aims
at the
accomplishment
of predetermined
objectives.
Management
is a group
activity
Management
principles
are universal
in nature
Management
is both a
science and
an art.
Management
integrates
human and
other
resources.

9. Functions of Management

10. Evolution of Management Theories

12. Max Weber Bureaucratic Theory

13. Scientific management : F.W. Taylor

14. Administrative Management :

15. Division of Work.

16. Authority and Responsibility

18. Unity of Command

19. Unity of Direction.

20. Subordination of Individual Interest.

21. Fair Remuneration

22. Centralisation and Decentralisation

23. Scalar Chain

24. Order

25. Equity

28. Elton Mayo’s Human Relationship Theory

29. The productivity will be more when...

33. Levels of Management

34. Skills required

35. Planning

36. Planning Process

37. Challanges in Planning

38. Benefits of Planning

40. Management By Objectives
• Management by Objectives (MBO) is a strategic
approach to enhance the performance of an organization.
It is a process where the goals of the organization are
defined and conveyed by the management to the
members with the intention to achieve each objective.

41. Management By Objectives

42. UNIT 3

44. Organizing
Organizing is the second key function of
Management Which ,
coordinates human efforts,
arranges resources
incorporates the two in such a way which helps in
the achievement of objectives.
It involves deciding ways and means with which the
plans can be implemented

47. Other Principles of Organizing
• Specialization
• Delegation
• Balance ( Size of various department,
Centralization and Decentralization, Span Of
Control , Chain of Command
• Scalar Principle
• Principle of Exception
• Principle of Functional Defination

48. Principle of Functional Definition
• All the functions in a concern should be
completely and clearly defined to the
managers and subordinates.
• Clearly defining the duties, responsibilities,
authority and relationships of people towards
each other.
• Clarifications in authority-responsibility

49. Principles of Span of
Control/Supervision
• Number of employees that can be handled
and controlled effectively by a single manager.
• There are two types of span of control:-

50. Wide span of control-
• It is one in which a manager can supervise and control
effectively a large group of persons at one time. The
features of this span are:-
– Less overhead cost of supervision
– Prompt response from the employees
– Better communication
– Better supervision
– Better co-ordination
– Suitable for repetitive jobs
• According to this span, one manager can effectively
and efficiently handle a large number of subordinates
at one time.

51. Narrow span of control-
• The work and authority is divided amongst many subordinates and a manager
doesn't supervises and control a very big group of people under him.
• The features are:-
– Work which requires tight control and supervision, for example, handicrafts,
ivory work, etc. which requires craftsmanship, there narrow span is more
helpful.
– Co-ordination is difficult to be achieved.
– Communication gaps can come.
– Messages can be distorted.
– Specialization work can be achieved.

52. Principle of Scalar Chain
• Scalar chain is a chain of command or authority which flows from top to
bottom. With a chain of authority available, wastages of resources are
minimized, communication is affected, overlapping of work is avoided and
easy organization takes place.
• A scalar chain of command facilitates work flow in an organization which
helps in achievement of effective results.
• As the authority flows from top to bottom, it clarifies the authority
positions to managers at all level and that facilitates effective organization.

53. Principle of Unity of Command
• It implies one subordinate-one superior
relationship. Every subordinate is answerable
and accountable to one boss at one time. This
helps in avoiding communication gaps and
feedback and response is prompt. Unity of
command also helps in effective combination
of resources, that is, physical, financial
resources which helps in easy co-ordination
and, therefore, effective organization.

54. Principle of Unity of Command
Authority Flows from Top to Bottom
Managing Director
↓
Marketing Manager
↓
Sales/ Media Manager
↓
Salesmen

59. Product Organization Structure

60. Geographic organization

62. virtual organizational Structure
• A virtual organization is a temporary or
permanent collection of geographically
dispersed individuals, groups, organizational
units, or entire organizations that depend on
electronic linking in order to complete the
production process (working definition).

64. Leading

66. Managers Vs Leaders
Manager Leader
Manager does things right Leader – does the right things
Manages change Creates change
Control Commitment
Focused on rules Focused on outcome
Conforms Innovates
Execution Ideas
Likes control Is comfortable with risk
Works in the system Works on the system

67. Manager Leader
Coordinates efforts Inspires and energizes
Follows orders People follow them
Detail Direction
Uses established paths Creates new paths
Provides resources and goals Provides vision
Focuses on Processes Focuses on People
"what" "why"

68. Staffing

71. Decision Making

72. Decision Making

73. It is your decisions, and not your conditions,
that determine your destiny.”
- Anthony Robbins

75. POWER Model
• Step 1 : P = PROBLEM
• Step 2 : O = OPTIONS
• Step 3 : W = WEIGH ( Look at positive and
negative consequences of every option.
• Step 4 : E = ELECT
• Step 5 : R = REFLECT

76. 3C’s of
The Decision Making -
• The Decision Making - 3C’s
1. Challenge (situation available for decision
making)
2. Choices (try to list as many rational choices as
possible)
3. Consequences (list one positive and one
negative for each choice)

77. De Bono’s PMI strategy.
Alternatives Plus ( P) Minus ( M) Interesting ( I)
Vacation in
France
Climate
Wine
Busy during
high Season
-
Vacation in
Switzerland
Beauty of
Scenery
Relatively few
tourists
More Expensive
Long Car
journey
Never been
there before

79. Controlling process

81. Modern Techniques
• Gantt Chart
• Check list
• PERT and CPM
• Statistical Process Control Charts
• Human Resource Accounting
• Benchmarking

84. CPM and PERT