Principles of Management: A Comprehensive Guide to Management Theories and Practices, Schemes and Mind Maps of Principles of Database Management

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MG8 59 1 PRINCIPLES OF

MANAGEMENT

MG6851 PRINCIPLES OF MANAGEMENT OBJECTIVES: To enable the students to study the evolution of Management, to study the functions and principles of management and to learn the application of the principles in an organization .
UNIT I INTRODUCTION TO MANAGEMENT AND ORGANIZATIONS Definition of Management – Science or Art – Manager Vs Entrepreneur - types of managers - managerial roles and skills – Evolution of Management – Scientific, human relations , system and contingency approaches – Types of Business organization - Sole proprietorship, partnership, company-public and private sector enterprises - Organization culture and Environment – Current trends and issues in Management. UNIT II PLANNING Nature and purpose of planning – planning process – types of planning – objectives – setting objectives – policies – Planning premises – Strategic Management – Planning Tools and Techniques

• Decision making steps and process. UNIT III ORGANISING Nature and purpose – Formal and informal organization – organization chart – organization structure
• types – Line and staff authority – departmentalization – delegation of authority – centralization and decentralization – Job Design - Human Resource Management – HR Planning, Recruitment, selection, Training and Development, Performance Management , Career planning and management. UNIT IV DIRECTING Foundations of individual and group behaviour – motivation – motivation theories – motivational techniques – job satisfaction – job enrichment – leadership – types and theories of leadership – communication – process of communication – barrier in communication – effective communication – communication and IT. UNIT V CONTROLLING System and process of controlling – budgetary and non-budgetary control techniques – use of computers and IT in Management control – Productivity problems and management – control and

UNIT I

INTRODUCTION TO MANAGEMENT AND ORGANIZATION

PART A

1. Define Management Management is the process of designing and maintaining an environment in which individuals, working together in groups efficiently to accomplish selected aims. 2. List out the various objectives of Management.  Getting Maximum Results with Minimum Efforts  Increasing the Efficiency of factors of Production  Maximum Prosperity for Employer & Employees  Human betterment & Social Justice  Reduces Costs  Establishes Equilibrium  Establishes Sound Organization 3. List out the importance of Management.  Improves Understanding  Direction for Training of Managers  Guide to Research in Management 4. List out the characteristics of Management  Management is an activity  It applies economic principles  It is an integrating process  It is an interdisciplinary approach  It is dynamic not static 5. Distinguish between Management and Administration Attributes Management Administration Definition Art of getting things done through others by directing their efforts towards achievement of pre-determined goals. Formulation of broad objectives, plans & policies. Nature executing function, doing function decision-making function, thinking function Usage Used in business enterprises. Popular with government, military, educational, and religious organizations. Influence Decisions are influenced by the values, opinions, beliefs and decisions of the managers. Influenced by public opinion, government policies, customs etc. Abilities Handles the employees. Handles the business aspects

such as finance.

6. List out the various levels of Management.  Top-Level Management  Middle-Level Management  Lower – Level Management 7. Explain the part of Top Management  Top management lays down the objectives and broad policies of the enterprise  The top management is also responsible towards the shareholders for the performance of the enterprise.  Controls & coordinates the activities of all the departments  Prepares strategic plans & policies for the enterprise 8. List down the functions of Middle Level Management  They execute the plans of the organization in accordance with the policies and directives of the top management.  They make plans for the sub-units of the organization.  They participate in employment & training of lower level management.  They evaluate performance of junior managers.  They are also responsible for inspiring lower level managers towards better performance. 9. What are the functions of Lower Level Management?  Assigning of jobs and tasks to various workers.  They guide and instruct workers for day to day activities.  They are responsible for the quality as well as quantity of production.  They prepare periodical reports about the performance of the workers.  They ensure discipline in the enterprise.  They motivate workers. 10. What are the functions of Management?  Planning  Organizing  Staffing  Directing  Controlling 11. List out the types of Managers  Authoritarian Manager  Democratic Manager

 Time Study  Motion Study  Standardization  Differential Piece Wage Plan

20. What is Time Study?  It is a technique which enables the manager to ascertain standard time taken for performing a specified job.  This technique is based on the study of an average worker having reasonable skill and ability. 21. What is Motion Study?  Motion Study observes movement of body and limbs required to perform a job are closely observed.  It refers to the study of movement of an operator on machine involved in a particular task.  Motion study increases the efficiency and productivity of workers by cutting down all wasteful motions. 22. What is Differential Wage Plan?  This system is a source of incentive to workers who improving their efficiency in order to get more wages.  It also encourages inefficient workers to improve their performance and achieve their standards.  It leads to mass production which minimizes cost and maximizes profits. 23. What is Bureaucratic Organization?  There is a high degree of Division of Labor and Specialization.  There is a well-defined Hierarchy of Authority.  It follows the principle of Rationality, Objectively and Consistency.  There are Formal and Impersonal relations among the member of the organization.  Interpersonal relations are based on positions and not on personalities. 24. Define Sole Proprietorship  Business is owned and run by one person only. Even though he can employ people, he is still the sole trader of the business. 25. List out the Merits and Demerits of Partnership Merits:  More capital than a sole trader.

 Responsibilities are split.  Any losses are shared between partners. Demerits:  Unlimited liability.  No continuity , no legal identity.  Partners can disagree on decisions, slowing down decision making.  If one partner is inefficient or dishonest , everybody loses.

26. What is Private Limited Company? Private Limited Companies have separate legal identities to their owners, and thus their owners have limited liability. The company has continuity, and can sell shares to friends or family. 27. What is Organization Culture?  Organizational culture is the behavior of humans within an organization and the meaning that people attach to those behaviors.  Culture includes the organization's vision values, norms, systems, symbols, language, assumptions, beliefs, and habits. 28. List out the importance of Organization Culture.  The culture decides the way employees interact at their workplace  The culture of an organization represents certain predefined policies which guide the employees and give them a sense of direction at the workplace  Work culture goes a long way in creating the brand image of the organization.  Work culture unites the employees who are otherwise from different back grounds  The work culture promotes healthy relationship amongst the employees  Culture of the organization which extracts the best out of each team member 29. List down the types of Organization Culture  Clan culture  Adhocracy culture  Market oriented culture  Hierarchy culture 30. Outline the fourteen principles of Henry Fayol.  Division of Labor  Party of Authority & Responsibility  Unity of command  Unity of Direction  Equity

37. List out the visible elements of organization culture.  Artifacts  Stories, histories, myths, legends, jokes  Rituals, rites, ceremonies, celebrations  Heroes  Symbols and symbolic action  Beliefs, assumptions and mental models  Attitudes  Rules, norms, ethical codes, values 38. List down the invisible elements of organization culture.  Organizational Values  Organizational Beliefs  Organizational Norms 39. What is Organization Environment? Organizational environment is a set of forces and conditions, such as technology and competition, that are outside the organization’s boundaries and have the potential to affect the way the organization operates and the way managers engage in planning and organizing. 40. List out the types of Organization Environment  Task Environment  General Environment 41. What is task environment? Task Environment of an organization is the environment which directly affects the organization from attaining business goals. 42. List out the Factors responsible for task environment.  Suppliers  Distributors  Customers  Competitors 43. What is General environment?  General environment or mega environment is an important segment of external environment.

 It refers to the broad trends and conditions in the societies within which an organization operates.

44. List down the major Elements and Forces of General Environment  Economic forces  Technology forces  Socio-cultural forces  Political-legal forces  International forces 45. List out the Factors of Internal Environment  Owners  Board of Directors  Employees  Physical Environment  Culture 46. What is Multi-national Corporation?  Multinational corporations (MNCs) are business entities that operate in more than one country.  Normally functions with a headquarters that is based in one country, while other facilities are based in locations in other countries. 47. List out the Features of Multinational Corporation.  Worldwide operation  Create maximum operation  Advanced Technology  High Efficiency  Monopolistic Market  Product / Service Organization 48. List down the Reasons why companies become multi-national.  To increase market share  To secure cheaper premises and labor  To avoid tax or trade barriers  Government grants 49. List out the Types of Multi-national Corporations  Ethnocentric companies  Polycentric companies

1. Discuss why it’s important to study management.
2. Analyze the rewards and challenges of being a manager.
3. Elaborate an organization using the systems approach.
4. Explain how the contingency approach is appropriate for studying management.
5. Identify the seven dimensions of organizational culture.
6. Discuss the impact of a strong culture on organizations and managers.
7. List out the components of the specific and general environments.
8. Contrast multinational, multidomestic, global and transnational organization.
9. Classify the different ways organizations can go international.
10. Discuss the challenges of doing business globally in today’s world.
11. Discuss whether organizations should be socially involved.
12. Discuss what conclusion can be reached regarding social involvement and economic performance.
13. Discuss specific ways managers can encourage ethical behavior.
14. Justify manager’s important role in encouraging ethical behavior.
15. Discuss how business can promote positive social change.

UNIT II

PLANNING

PART-A

1. Define Planning. Planning is a process to develop a strategy to achieve desired objectives, to solve problems, and to facilitate action. 2. List out the Features of Planning  Focuses on Achieving Objectives  It is Primary Function of Management  It is Pervasive  It is Continuous  It is Futuristic  Involves Decision Making  **It is a Mental Exercise

3. What is the Importance of Planning?**  Provides Direction  Reduces Risks of Uncertainty  Reduces Overlapping and Wasteful Activities  Promotes Innovative Ideas  Facilitates Decision Making  **Establishes Standards for Controlling
4. List out the types of Planning**  Corporate Planning  Strategic Planning  Operational or Tactical Planning  Proactive Planning  Reactive Planning  Formal and Informal Planning  Automated Planning 5. What is Strategic Planning? Strategic Planning is process of deciding on the objectives of the organization, on changes on these objectives and on the policies that are to govern the acquisition, use and disposition of these resources. 6. What is Operational Planning? Operational planning is the process of deciding, the most effective use of the resources already allocated and to develop a control mechanism to assure effective implementation of the actions so that organizational objectives are achieved.

 Subordinates implements the plan  Collectively monitoring performance

13. Define Policy  Policies are general statements or understandings which guide or channel thinking in decision-making of subordinates.  Policies are guides to action. They provide abroad guideline as to how the objectives of an organization are to be achieved. 14. List out the features of good policy.  Policy is formulated through the various steps in the decision-making process.  Policy can be interpreted from the behavior of the top management.  Policy provides guidelines to the members of the organization for choosing a particular course of action. 15. Classification of Policies.  Top management policies  Upper middle management policies  Middle management policies  Foremen policies  Sales policies  Production Policies  Research policies 16. Outline the Steps in Policy Formulation  Establish need for a policy  Develop policy content  Draft the policy  Write the procedure  Review of the policy by key parties  Approve the policy  Implement the policy  Policy review and update  Communication of changes to the policy 17. Distinguish between Objectives and Policies Objectives Policies Objective decide what to do Policy decides how to do.

Objectives determine the final goal of the enterprise Policies are framed to achieve the objective efficiently. Objectives decide the specific job to be done Policies decide the procedures to be adopted for completion of the job Objectives are the target and aims planning. Policies are the means and manner of achieving objectives.

18. Define Procedure  A ‘Procedure’ is a standing plan describing a customary method of handling a future activity.  Procedures are meant to standardize and routinize the pattern and, pace, of work flow at the operational level. 19. Distinguish between Policies and Procedures  Policies guide top management in decision making, while procedures guide employees into action.  Policies leave some room for managerial discretion, while procedures are detailed and rigid  Policies are an integral part of organizational strategies, while procedures are tactical tools  Policies are generally formulated by top management, while procedures are laid down at lower organizational levels in line with policies 20. Define Program.  A ‘Program’ may be defined as single-use comprehensive plan designed to implement the policies and accomplish the objectives.  It gives a step by- step approach to guide the action necessary to reach a pre-determined goal. 21. List out the features of Program  It is a single-use but comprehensive plan.  It lays down the principal steps for accomplishing a mission.  It gives a step-by-step approach to guide the action plan.  It is guided by the objectives and strategies and covers many other types of plans  It is a time-table of the future action. 22. Define Strategy.

Diversification entails effecting growth through the development of new areas that are clearly distinct from current businesses

30. Classify the Diversification Strategies  Concentric Diversification : Adding new but related products or services is called concentric diversification.  Horizontal Diversification : Adding new unrelated products or services for present customers is called horizontal diversification.  Conglomerate Diversification: Adding new but unrelated products or services is called conglomerate Diversification. 31. What is Planning Premises?  Planning premises are identified as the anticipated environment in which plans are expected to operate.  Planning premises are the critical factors which lay down the boundary for planning 32. Classify Planning Premises.  Internal and external premises  Controllable, semi-controllable and non-controllable premises  Tangible and Intangible premises 33. What is Strategic Management? Strategic management is that set of managerial decisions and actions that determines the long- run performance of an organization. It entails all of the basic management functions--planning, organizing, leading, and controlling. **34. Outline the Strategic Management Process.

35. List out the tools and techniques to measure Strategic Management.**  SWOT Analysis  BCG Matrix  Porter’s Five Force Model  Gap Analysis

 Balance Score-Card

36. Outline the SWOT Analysis A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths ( S ) or weaknesses ( W ), and those external to the firm can be classified as opportunities ( O ) or threats ( T ). 37. What is BCG Matrix? The BCG matrix, developed by the Boston Consulting Group, is a strategy tool to guide resource allocation decisions based on market share and growth of SBUs (Small Business Units). 38. Outline the Porter’s Five Force Model  Threat of new entrants  Bargaining power of suppliers  Bargaining power of customers  Competitive Rivalry  Threat of Substitutes 39. What is GAP analysis? Gap analysis is a tool that organizational managers can use to work out the size, and sometimes the shape, of the strategic tasks to be undertaken in order to move from its current state to a desired, future state. 40. What is Balanced Score Card? Balanced Scorecard enables organizations to bridge the gap between strategy and actions, engage a broader range of users in organizational planning reflects the most important aspects of the business, and respond immediately to progress, feedback and changing business conditions. 41. What is Decision Making?  Decision making is the process of identifying and selecting a course of action to solve a specific problem  Decision making involves the selection of a course of action from among two or more possible alternatives in order to arrive at a solution for a given problem. 42. List down the importance of Decision Making in Management.  Better Utilization of Resources  Facing Problems and Challenges  Business Growth  Achieving Objectives