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PRINCIPLES OF MANAGEMENT
About the Tutorial .......................................................................................................................................... i
Audience ......................................................................................................................................................... i
Prerequisites ................................................................................................................................................... i
Disclaimer & Copyright ................................................................................................................................... i
Table of Contents........................................................................................................................................... ii
MANAGEMENT – INTRODUCTION ............................................................................................... 1
1. Management – Overview ........................................................................................................................ 2
What is Management? .................................................................................................................................. 2
Management Defined .................................................................................................................................... 3
Is Management an Art or a Science? ............................................................................................................. 4
2. Management – Role of Managers ........................................................................................................... 5
Role of Managers ........................................................................................................................................... 6
The Changing Roles of Management and Managers ..................................................................................... 7
Mintzberg’s Set of Ten Roles ......................................................................................................................... 8
Managerial Skills ............................................................................................................................................ 9
3. Management – The P-O-L-C Framework ................................................................................................ 11
Planning ....................................................................................................................................................... 11
Organizing .................................................................................................................................................... 12
Leading......................................................................................................................................................... 13
Controlling ................................................................................................................................................... 13
MANAGEMENT – EVOLUTION & TRENDS .................................................................................. 15
4. Management – Classical Schools of Thought ......................................................................................... 16
Classical School of Management Thought ................................................................................................... 16
Henry Fayol’s Universal Process Theory ...................................................................................................... 18
Behavioral and Human Relations Approach ................................................................................................ 19
5. Management – Modern Schools of Thought ......................................................................................... 21
Chester Barnard and Social Systems Theory ............................................................................................... 21
Contingency Approach and Recent Contributions ...................................................................................... 22
Quality School of Management ................................................................................................................... 23
Kaizen Approach .......................................................................................................................................... 24
Reengineering Approach ............................................................................................................................. 25
Future of Management................................................................................................................................ 26
MANAGEMENT – ECOSYSTEM .................................................................................................. 27
6. Management – The Management Environment .................................................................................... 28
The Management and Administration Inter-Relationship ........................................................................... 29 Principles of Management
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7. Management – Factors Affecting Management .................................................................................... 30
Macro Environment (Outer Environment) .................................................................................................. 31
Micro Environment (Inner Environment) .................................................................................................... 33
8. Management – Management Organization ........................................................................................... 35
9. Management – Leadership Styles .......................................................................................................... 37
Leadership Styles ......................................................................................................................................... 38
Leadership Continuum................................................................................................................................. 39
Leadership Styles in Managerial Grid .......................................................................................................... 40
Systems of Management ............................................................................................................................. 42
MANAGEMENT – FRAMEWORK ................................................................................................ 44
10. Management – Mission, Vision, & Values ............................................................................................. 45
Role Played by Mission and Vision .............................................................................................................. 47
Values .......................................................................................................................................................... 48
Stakeholders ................................................................................................................................................ 48
Identification of Key Stakeholders ............................................................................................................... 50
11. Management – Personality & Attitude .................................................................................................. 52
Role of Personality and Attitude in Organization ........................................................................................ 52
Importance of Personality ........................................................................................................................... 52
Personality Traits ......................................................................................................................................... 52
The Big 5 Personality Traits ......................................................................................................................... 53
Other Personality Traits – Self Variables ..................................................................................................... 56
12. Management – Work Attitude and Behavior ......................................................................................... 57
Positive Work Attitude ................................................................................................................................ 57
Job Satisfaction ............................................................................................................................................ 57
Organizational Commitment ....................................................................................................................... 57
MANAGEMENT – DECISION MAKING ........................................................................................ 60
13. Decision Making – Nature and Significance ........................................................................................... 61
Types of Decisions ....................................................................................................................................... 61
14. Management – Factors Affecting Decision Making ................................................................................ 63
15. Decision Making – Styles ....................................................................................................................... 66
16. Decision Making – Tools ........................................................................................................................ 67
MANAGEMENT – PLANNING ..................................................................................................... 69
17. Planning – Introduction ......................................................................................................................... 70
What is Planning? ........................................................................................................................................ 70 Principles of Management
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Importance of Planning ............................................................................................................................... 71
18. Management – Types of Plans ............................................................................................................... 73
Strategic Plans ............................................................................................................................................. 73
Tactical Plans ............................................................................................................................................... 74
Operational Plans ........................................................................................................................................ 74
19. Management – The Planning Environment ........................................................................................... 75
Establishing Objectives and Goals ............................................................................................................... 75
Determining Alternatives............................................................................................................................. 76
Evaluating and Choosing Alternatives ......................................................................................................... 76
Creating Assignments and Timelines ........................................................................................................... 76
Formulating Derivative Plans ....................................................................................................................... 76
Budgeting ..................................................................................................................................................... 77
MANAGEMENT – ORGANIZATIONAL STRUCTURE ..................................................................... 78
20. Management – Importance of Organizing ............................................................................................. 79
Importance of Organizing ............................................................................................................................ 79
21. Management – Principles of Organizing ................................................................................................ 81
Work Specialization ..................................................................................................................................... 81
Authority ...................................................................................................................................................... 82
Chain of Command ...................................................................................................................................... 82
Delegation.................................................................................................................................................... 83
Span of Control ............................................................................................................................................ 83
22. Management – Organizational Structure .............................................................................................. 84
Common Organization Structures ............................................................................................................... 84
Functional Organization Structure ............................................................................................................... 85
Product Organizational Structure ................................................................................................................ 85
Geographic Organizational Structure .......................................................................................................... 86
Matrix Organizational Structure .................................................................................................................. 87
23. Management – The Organizational Process........................................................................................... 89
The Organizational Process Chart ................................................................................................................ 89
MANAGEMENT – CHANGE MANAGEMENT ............................................................................... 90
24. Management – Organizational Change ................................................................................................. 91
Why Organizations Need to Change ............................................................................................................ 91
25. Management – Organizational Change Factors ..................................................................................... 93
The Internal Environment ............................................................................................................................ 93
The External Environment ........................................................................................................................... 93
26. Management – Organizational Change Management ........................................................................... 95
Planning Organizational Change .................................................................................................................. 95 Principles of Management
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Resistance to Changes ................................................................................................................................. 96
Impact of Change ......................................................................................................................................... 97
Overcoming Resistance to Change .............................................................................................................. 98
MANAGEMENT – GLOBALIZATION & ITS EFFECT ....................................................................... 99
27. Management – Multinational Organizations ....................................................................................... 100
What are MNCs? ........................................................................................................................................ 100
Types of Multinational Corporations ......................................................................................................... 101
28. Management – Global Ecosystem and its Impact ................................................................................ 102
Challenges Faced by International Managers ............................................................................................ 103
Overcoming Global Challenges .................................................................................................................. 103