DEPARTMENT OF ELECTRONICS AND COMMUNICATION ENGINEERING

GE 3751 PRINCIPLES OF MANAGEMENT

UNIT I INTRODUCTION TO MANAGEMENT AND ORGANIZATION
1. Nature of Management:
Management is multidisciplinary in nature
Management is a continuous Process
Management is a universal activity
Management is a science or an art
Management is dynamic and not static
Management is a Profession
Management is a group activity
Management aims at obtaining wealthy results
Management implies skill and experience in getting things done through people
Management is a system of authority
Management is intangible
Management implies good leadership

2. Scope of Management
Functional areas of Management
Subject matter of Management
Management is an interdisciplinary approach
Principles of Management
Management is an agent of change
The essentials of Management

3. Functions of Management
Planning, Organizing, Staffing, Directing and Controlling

4. Types of Manager
Top level manager
Middle level manager
Low level manager

5. Roles of Manager
Interpersonal roles
– Figurehead, Leader, Liaison
Informational roles
– Monitor, Disseminator, Spokesperson
Decisional roles
– Entrepreneur, Disturbance handler, Resource Allocator,
Negotiator

6. Managerial Skills
Technical Skills,
Human Skills
Conceptual Skills
7. Importance of Management
Attainment of group of goals
Effective functioning of business
Resource development
Management controls the organization
Sound organization structure
Integrates individual efforts
Motivation
Communication
Coordination
Decision-making
Leadership Quality
Management is needed at all levels

8. Evolution of Management Thought

Pre-scientific or pre classical management period
Classical management theory
Scientific management of Taylor
Administrative management of Fayol
Bureaucratic model of Max weber
Neo classical theory or Behavioural theory
Modern theory
System approach
Contingency approach

9. Henri Fayol Principles:

Division of Work
Authority and Responsibility
Discipline
Unity of Command
Unity of Direction
Subordination of individual interest to general interest
Remuneration of personnel
Centralization
Scalar chain
Order
Equity
Stability of tenure of personnel
Initiative
Esprit de corps

10. System approach in modern management theory:

Input
Transformation process
Output
Feedback
Environment
Closed system
Open system
Entropy
Synergy
11. Types of business organization
Individualistic Institutions
Sole trading
Partnership
Joint Stock Company
Cooperation
Multinational Companies
Government Institutions
Departmental Undertaking
Public corporation
Government company
Board Organization

12. Characteristics of Organizational Culture

Risk tolerance
Direction
Unit Integration
Management contract
Identity
Reward system
Control
Conflict Tolerance
Communication Patterns
Individual initiative

13. Source of Culture

Rituals
Language
Material symbol
Stories

14. Types of Organizational Culture

Subculture
Dominant culture
Strong culture
Weak culture
Authoritarian culture
Participative culture
Normative culture
Pragmatic culture
Academy culture
Fortress culture

15. Creating and Sustaining culture

Creating culture
Managing culture
– Selection process, Actions of top management, Socialization

16. Organization and Environment Factors

Internal Environment Factors
Management
Organizational Structure
Employees
 Organizational cultural change
Financial Changes
External Environment Factors
General or Macro Environment
Technology
Economic Conditions
Political Factors
Socio Cultural Factors
Task or Micro Environment
Suppliers
Customers
Competitors

17. Current Trends and Issues in Management

Workforce diversity
Changing demographics of workforce
Changing employee expectations
Internal environment
Building organizational Capabilities
Job design and organizational structure
Changing psycho-social system
Technological advances
Management of human relations
Changes in legal environment
Change in industrial relations
Expanding Globalization

Unit 2 PLANNING
1. Nature of Planning
A primary function
A dynamic process
Based on objectives and policies
A selective process
Pervasiveness of Planning
An intellectual process
Planning is directed towards efficiently
Focus with future activities
Flexibility
Based on Facts

2. Planning Process
Identification of opportunities
Establishment of objectives or goals
Developing planning premises
Identification of alternatives
Evaluation of alternatives
Selecting alternatives
Formulation of derivative plans
Establishing sequences of activities
3. Types of Planning
Operational Planning
Tactical Planning
Strategic Planning
Contingency Planning

4. Nature of Objectives
Objectives have a hierarchy
Objectives form a network
Multiplicity of Objectives
Objectives have a time span
Objectives may be tangible or intangible
Objectives must have social sanction

5. Significance or Role of Objectives

Unified planning
Defining an organization
Direction
Individual motivation
Basis for decentralization
Basis for control
Coordination

6. Process of MBO
Setting preliminary objectives
Fixing key result areas
Setting subordinate’s objectives
Recycling objectives
Matching resources with objectives
Periodic performance reviews
Appraisal

7. Benefits of MBO:
Improvement of managing
Clarification of organization
Personnel satisfaction
Team work
Development of effective control
Fast decision making

8. Weakness of MBO:
Failure to teach the philosophy of MBO
Failure to give guidelines to goal setter
Difficulty of setting goals
Emphasis on short term goals
Danger of inflexibility
Time consuming
Increased paper work

9. Nature of Policy
Relationship to organizational objectives
Clarity of policy
Policy is a guide to thinking in decision-making
 Policies should be written
Communication of policies
Consistency of policies
Balance of policy
Planned formulation

10. Need or important of policy

To operationalize objectives
To save time and effort
To facilitate delegation of authority
To speed up decision making
To control administration

11. Policy formulation process

Definition of policy area
Creation of policy alternatives
Evaluation of policy alternatives
Choice of policy
Communication of policy
Implementation of policy
Review of policy

12. Types of policies

Formulated policies
Appealed policy
Imposed policy
Witten policy
Implied policies

13. Classification of planning premises

Internal and external
Tangible and intangible
Controllable and uncontrollable

14. Strategic Planning Process

Mission and Objectives
Environmental analysis
Corporate analysis
Identification of alternatives
Strategic decision making
Implementations, review and control

15. Forecasting methods

Quantitative methods
Time series method
Simple moving average method
Econometric forecasting
Correlation analysis
Regression analysis
Qualitative methods
Jury of executive opinion
Delphi method
Consumer market survey
 Sales force opinion composite
Scenario building
Judgment decomposition

16. Decision making process

Identification of problems
Diagnosis and analysis of the problem
Search for alternatives
Evaluation of alternatives
Selecting an alternative
Implementation and follow up

17. Types of Decisions

Programmed and non-programmed decisions
Organizational and Personal Decisions

18. Decision making under different conditions

Decision making under certainty
Decision making under risk
Decision making under uncertainty

Unit 3 ORGANIZING
1. Nature of Organizing
Common objectives
Specialization of division of labour
Authority of structure or chain of command
Group of Persons
Coordination
Communication
Environment
Rules and Regulations

2. Process of organizing
Determination of activities
Assignment of Duties
Delegation of authority
Establishment of structural relationship
Coordination of activities

3. Purpose or importance of Organizing

To facilitate administration
To increase the efficiency of management
To ensure optimum use of man and material resources
To facilitate growth and diversification

4. Types of Organizational Chart

Top-down chart or Vertical Chart
Horizontal Chart or Left to right Chart
Circular chart or Concentric Chart

5. Types of Organizational Structure

Based on Power Flow
Bureaucratic or Mechanistic Structure
 Organic or adaptive Structure
Based on formation of department or groups
Functional Structure
Divisional Structure
Matrix Structure
Team Structure
Network Structure

6. Determination of Organization Structure

Activities analysis
Decision analysis
Relations analysis

7. Departmentation by different Strategies

Departmentation by numbers
Departmentation by time
Departmentation by enterprise function
Departmentation by territory or geography
Departmentation by customers
Departmentation by equipment or process
Departmentation by product or service

8. Determination of Span of Control

Direct single relationship
Direct group relationship
Cross relationship

9. Factors determining an effective span

Capacity of superior
Capacity of subordinates
Nature of work
Type of technology
Delegation of authority
Clarity of plans
Communication technique
Using of objective standards
Geographical closeness of employees
Direction and coordination

10. Types of Delegation

Over delegation
Under delegation

11. Process of Delegation

Determination of results expected
Assignment of duties
Delegation of Authority
Creation of obligation or accountability

12. Art of Delegation

Lack of receptiveness
Willingness to let go
Willingness to let others make mistakes
 Willingness to trust subordinates
Willingness to establish and use broad controls

13. Making delegation effective

Establishment of definite goals
Right person for the right job
Establishment of definite responsibility
Motivate subordinates
Appropriate environment
Free flow information
Proper training to subordinates
Establish adequate controls

14. Making decentralization effective

Centralized top policy
Appreciation of concept of decentralization
Development of managers
Competition among units
Open communication
Effective cooperation

15. Scope of Human Resource Management

Human resource Planning
Job analysis and design
Recruitment and selection
Orientation and induction
Training and development
Performance appraisal
Compensation Planning and remuneration
Motivation, Welfare, Health and Safety
Industrial relations

16. Factors affecting HRM

External Factors
Political factors
Economic factors
Social factors
Legal factors
Customers
Internal factors
Size of the organization
Organizational Image
Technological factors
Changes in employee roles
Education

17. Functions of HRM

Managerial Functions
Planning
Organizing
Directing
Controlling
Operative Functions
 Employment
Human resource development
Compensation
Human relations
Effectiveness of HRM
HRM Function
Performance appraisal
Training
Management Development
Career Development
Organizational Development

18. Job Analysis

Job Description
Job Specification

19. Process of Job Analysis

Planning the job analysis
Preparing and communicating the job analysis
Conducting the job analysis
Developing the job descriptions and job specifications
Maintaining and updating job descriptions and job specifications

20. Uses of Job Analysis

Employment
Training and development programmes
Performance appraisal
Promotion and transfer
Discipline
Wage and salary administration
Health and safety
Induction

21. Techniques for designing Jobs

Job enlargement
Job rotation
Job enrichment

22. HR planning process

Assessing current HR capacity
Forecasting HR requirements
Gap analysis
Developing HR strategies to support organizational strategies

23. Sources of Recruitment

Internal sources
Present employees
Former employees
Previous employees
External sources
Educational and training institutions
Employment exchanges
Employment agencies
 Data banks
Advertisements
Casual applications
Trade Unions

24. Selection Process

Screening the application
Selection tests
Preliminary interview
Reference check
Medical Examination
Final Interview
Approved by appropriate authority
Placement

25. Types of Interview

Preliminary interview
Informal interview
Unstructured interview
Core interview
Background information interview
Formal and structured interview
Stress interview
Group interview
Panel interview
Depth interview
Decision making interview

26. Need for Training

Change in Technology
Organizational complexity
Human relations

27. Training Input

Skills
Attitudes
Knowledge

28. Principles of Training

Motivation
Progressive information
Reinforcement
Practice
Full Vs Part
Individual Differences

29. Training Methods

On the job training
Job rotation
Apprenticeship and coaching
Committee assignments
Experience or understudy
 Temporary promotions
Off the job training
Lecture
Conference and Seminars
Role playing
Case studies
Programmed instructions
Business game
In-basket method
Sensitivity training

30. Steps in Training

Identifying training needs
Establish specific objectives
Select appropriate methods
Acquire training resources and preparing schedule
Find a trainer
Implement programs
Evaluate programs
Feedback

31. Barriers of Performance Appraisal System

Faculty assumptions
Psychological barriers
Halo effect
Personal prejudice

32. Importance of career development

Assures needed talent
Develops promotable employees
Lower employee turnover
Taps employee potential
Attracts and retains high talent personnel
Reduces obsolescence and gains new skills
Reduces employee frustration
Enhances cultural diversity
Improves organizational goodwill

UNIT 4 DIRECTING
1. Nature of Directing
Activity initiation function
Pervasive function
Continuous activity
Dual objective
Flow from top to bottom level
Delegate human function
Creative activity
Facilitates coordination

2. Scope of Directing
Management perspective
Employees Individual effort
 Motivation and leadership
Changes in society
Stability

3. Factors of individual behavior in organization

Ability
Perception
Personality
Motivation
Job requirements
Standards of performance
Organization behavior and resources
Individual behavior
Individual performance
Individual effectiveness

4. Classification of group
Functional or formal group
Task group
Command group
Informal group
Interest group
Friendship group
Membership group
Reference group

5. Foundations of group behavior

i) Group formation and development
Organizational motives to join groups
Personal motives to join groups
Interpersonal attraction
Interest in group activity
Support for group goals
Need for affiliation
Instrumental benefits
ii) Stages of group development
Mutual acceptance
Communication and decision making
Motivation and productivity
Control and organization
iii) Characteristics of mature groups
Role structure
Behavioral norms
Cohesiveness
Informal leadership

6. Creativity Process
Saturation
Preparation
Frustration and incubation
Inspiration or illumination
Verification
7. Characteristics of creative people
Self confidence and independence
Curiosity
Approach to problems
Some personal attributes

8. Motivation process
Analysis of situation
Preparing, selecting and applying a set of appropriate motivating tools
Follow-up

9. Types of motivation
Positive motivation
Negative motivation
Extrinsic motivation
Intrinsic motivation

10. Motivational theories

11. Carrot and stick approaches of motivation
12. Mc-Gregor’s theory of motivation
13. Dual model theory or miles theory
14. Maslow’s hierarchy of needs theory
15. Herzberg’s theory
16. Vroom’s expectancy theory
17. Porter and Lawler expectancy theory
18. Equity theory
19. McClelland’s theory
20. Factors relating to job
Personal factors
Job factors
Organizational factors

21. Importance of leadership

Motivating employees
Leader develops team work
Better utilization of manpower
Creating confidence to followers
Directing group activities
Building morale
Maintaining discipline

22. Leadership qualities

Honesty
Confidence
Patience
Focus
Dedication
Consistency
Motivate others
Effective communication
Multiplicity of roles
Individuality
Personal dignity
23. Leadership styles
Autocratic or directorial leadership
Participative or democratic leadership
Laissez-faire or free rein leadership

24. Process of communication

Sender
Communication channels
Symbols
Receiver
Noise and feedback communication

25. Communication flow in organization

Downward communication
Upward communication
Horizontal or lateral communication

26. Communication network

Simple chain
Wheel
Circular
Free flow
Inverted V

27. Methods of communication

Formal communication
Written communication
Oral communication
Informal communication
Work related
People related

UNIT 5 CONTROLLING

1. Characteristics or features of controlling

Controlling process is a universal
Controlling is a continuous process
Controlling is action based
Controlling is forward looking
Controlling is closely related to planning
Controlling is pervasive function

2. Process of controlling
Establishment of standards
Measurement of performance
Comparing actual performance with standards
Finding deviations
Taking corrective actions

3. Budgetary control limitations

Inflexibility
Inaccuracy
Distortion of goals
 Hiding inefficiencies
Expenditure

4. Essentials of effective budgetary control

Definite objective
Communication
Support top management
Flexibility
Budget committee
Budget education
Good feedback
Participation
Reward and punishment
Proper recording of operations

5. Classification of budget
Functional classification
Sales budget
Production budget
Cost of production budget
Material and requirement budget
Direct labour budget
Capital expenditure budget
Administration cost budget
Research and development budget
Time, space, material and product budget
Cash budget
Profit budget
Time classification
Long term budget
Short term budget
Current budget
Rigidity
Fixed budget
Flexible budget
Alternative budget
Supplementary budget

6. Budgetary control techniques

Planning programme Budgetary control PPBS
Zero base budgeting ZBB
Variance analysis
Responsibility accounting
Adjustment of funds
Human resource accounting

7. Non Budgetary control

Traditional techniques
Statistical data and charts
Personal observation
Operational audits
Break-even analysis
Special reports
 Responsibility accounting
Balanced scorecard
Modern techniques
Linear programming
Program evaluation and review technique PERT
Critical path method CPM
Gantt chart
Benchmarking

8. Use of computers in management control

Sales forecast and control
Payroll
Business management
Accounting
Personal management information
Cost accounting
Manufacturing information control
Banking and credit

9. Need for MIS

Internal factors
Resources
Planning and control information
Operational information
Production function
Marking function
Externa factors
Political and government
Economic condition
Technology

10. Implementation of MIS

Input data collection
Information storage and retrieval
Analysis
Output
Decision making
Action

11. Factors affecting productivity

Technology
Human resources
Government policy
Machinery and equipment design
Skill of the workers
Capital
Research and development
Trade unions
Raw materials and production processes
Plant and job layout
Land and buildings
Size of the plant
12. Typical productivity measures
Physical productivity
Functional productivity
Economic productivity

13. Deming’s 14 points for improving productivity

14. Product development
Create ideas
Screening the alternatives
Selection
Prepare preliminary design
Final decision
Select the process

15. Product analysis

Marketing
Economical
Production analysis
Product quality and operation
Government policy
Technology

16. Factors influencing direct control

Uncertainty
Lack of knowledge experience
Lack of communication
Lack of coordination

17. Essentials of good reporting system

Proper form
Contents
Promptness
Accuracy
Comparability
Consistency
Relevancy
Simplicity
Cost-benefit analysis
Principle of exception
Flexibility
Controllability

18. Classification of report

Oral report
Written report