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Semester 1: Management Principles and Business Ethics
Introduction: Nature of Management – Concepts and Foundations of Management- Managerial Functions- Management Skills - The Evolution of Management Thought – Tasks of a Professional Manager – Organizational Culture - Environment – Systems Approach to Management – Levels in Management – Disaster Management
Introduction to the Nature of Management
Concepts and Foundations of Management
Management is the process of planning, organizing, leading, and controlling resources to achieve organizational goals. Various concepts such as efficiency, effectiveness, and stakeholder expectations form the foundation of management.
Managerial Functions
Managerial functions include planning, organizing, leading, and controlling. Each function represents a phase in the management process critical for achieving organizational success.
Management Skills
Management skills encompass technical, human, and conceptual skills. Technical skills relate to specific tasks, human skills involve interpersonal relations, and conceptual skills refer to the ability to understand complex situations.
The Evolution of Management Thought
Management thought has evolved through various theories, including classical, behavioral, quantitative, and modern approaches, each contributing to how organizations are managed today.
Tasks of a Professional Manager
Professional managers are responsible for strategic planning, decision-making, resource allocation, and motivating employees to ensure organizational effectiveness.
Organizational Culture
Organizational culture is the shared values and norms within an organization. It plays a crucial role in influencing employee behavior and shaping organizational identity.
Environment and Systems Approach to Management
The systems approach views organizations as interconnected systems. Understanding the external environment is essential for strategic planning and adapting to changes.
Levels in Management
Management operates at three levels: top-level management (strategic), middle-level management (tactical), and lower-level management (operational) each playing distinct roles in the organization.
Disaster Management in Context
Disaster management involves preparedness, response, recovery, and mitigation strategies to manage crises effectively. It is essential for organizational resilience and continuous operation.
Planning & Decision Making: Steps in Planning Process – Scope and Limitations – Short Term and Long Term Planning – Flexibility in Planning – Characteristics of a Sound Plan – Management By Objectives (MBO). Strategic Management Process Decision Making Process and Techniques. Business Models
Planning and Decision Making
Steps in the Planning Process
Identify objectives, analyze current situation, develop premises, identify alternatives, evaluate alternatives, select the best alternative, implement the plan, and monitor the results.
Scope and Limitations
Define the boundaries of planning, consider resources, time constraints, and environmental factors. Recognize that planning cannot predict the future perfectly.
Short Term and Long Term Planning
Short term planning focuses on immediate goals and actions, while long term planning considers broader objectives and strategies over an extended period.
Flexibility in Planning
Plans should be adaptable to changing circumstances. Flexibility allows for adjustments in response to unexpected events or shifts in the market.
Characteristics of a Sound Plan
Must be clear, realistic, flexible, achievable, comprehensive, and aligned with overall objectives.
Management By Objectives (MBO)
A performance management approach where specific measurable goals are agreed upon between management and employees, fostering accountability and focus.
Strategic Management Process
Involves defining the organization's strategy, determining actions to achieve the strategy, and allocating resources.
Decision Making Process and Techniques
Includes identifying the decision, gathering relevant information, evaluating alternatives, making the choice, implementing the decision, and reviewing the decision's impact.
Business Models
Frameworks for creating and delivering value. They describe how a business creates, delivers, and captures value, crucial in the context of planning and strategic management.
Nature of Organizing: Organization Structure and Design - Authority Relationships – Delegation of Authority and Decentralization – Interdepartmental Coordinator – emerging Trends in corporate Structure, Strategy and Culture – Impact of Technology on Organizational design – Mechanistic vs. Adoptive Structures – Formal and Informal Organization. Span of control – Pros and Cons of Narrow and Wide Spans of Control – Optimum Span - Managing Change and Innovation
Nature of Organizing: Organization Structure and Design
Authority relationships define the level of power and responsibility within an organization. They determine how decisions are made and who has the final say. Centralized authority consolidates power at the top levels, while decentralized authority allows for decision-making at lower levels.
Delegation involves assigning responsibility and authority to others, typically from a manager to subordinates. Effective delegation empowers employees, aids in their professional growth, and allows managers to focus on higher-level tasks.
Decentralization refers to distributing decision-making authority closer to the action or the employee level. This can lead to increased responsiveness to local issues and can empower employees, fostering a sense of ownership and accountability.
Interdepartmental coordination involves the collaboration and communication between different departments within an organization. Effective coordination enhances synergy and helps in achieving common organizational goals.
Corporate structures are evolving to adapt to globalization, technological advancements, and shifts in workforce demographics. Trends include flatter organizational structures, more agile teams, and the use of technology for collaboration.
Technology influences organizational design by enabling remote work, enhancing communication, and facilitating data-driven decision-making. Organizations must adapt their structures to leverage technological advancements effectively.
Mechanistic structures are characterized by rigid hierarchies and fixed roles, suited for stable environments. Organic structures are flexible, promoting adaptability and collaboration, ideal for dynamic and changing contexts.
Formal organizations have defined roles and structures, while informal organizations emerge from social relationships among employees. Both play crucial roles in organizational dynamics and culture.
Span of control refers to the number of subordinates a manager oversees. Narrow spans allow for more supervision and closer management, while wide spans can promote autonomy but may lead to less oversight.
Narrow spans allow for detailed guidance and support but can lead to micromanagement. Wide spans encourage employee independence but may result in managers being overwhelmed.
The optimum span of control balances effective supervision and employee autonomy, which can vary depending on organizational size, complexity, and goals.
Effective management of change and innovation involves clear communication, establishing a culture that embraces change, and providing support for employees. Organizations must be adaptable to thrive in a rapidly changing environment.
Leadership and Control: Leadership: Approaches to Leadership and Communication. Control: Concept of Control – Application of the Process of Control at Different Levels of Management (top, middle and first line). Performance Standards – Measurements of Performance – Remedial Action - An Integrated Control system in an Organization – Management by Exception (MBE)
Leadership and Control
Leadership
Leadership is the process of influencing others to achieve common goals. Different approaches to leadership include transformational, transactional, servant, and situational leadership. Effective leaders communicate clearly, inspire their teams, and adapt their styles to meet the needs of their followers.
Approaches to Leadership
1. Transformational Leadership: Focuses on inspiring and motivating followers to exceed their own self-interests for the good of the organization. 2. Transactional Leadership: Based on a system of rewards and punishments. 3. Servant Leadership: Prioritizes serving others and putting the needs of followers first. 4. Situational Leadership: Adapts leadership style based on the situation and the readiness of followers.
Communication in Leadership
Effective communication is vital for successful leadership. It involves clear messaging, active listening, and feedback mechanisms. Leaders should encourage open communication and foster an environment where team members feel safe to express their ideas.
Control
Control is the process of monitoring performance, comparing it with established standards, and taking corrective action as needed. It ensures that organizational goals are achieved efficiently and effectively.
Concept of Control
The concept of control involves setting performance standards, measuring actual performance, and taking remedial actions. It is an essential function of management that helps in aligning activities with organizational goals.
Application of Control at Different Management Levels
1. Top Management: Focus on strategic control and long-term organizational goals. 2. Middle Management: Concerned with tactical control and resource allocation. 3. First-Line Management: Handles operational control, ensuring day-to-day activities align with organizational strategies.
Performance Standards and Measurements of Performance
Performance standards are benchmarks used to measure the efficiency and effectiveness of various processes and activities. These can be quantitative or qualitative.
Remedial Action
Remedial actions are taken when performance deviates from the established standards. This may involve retraining, revising processes, or realigning resources to improve performance.
Integrated Control System in an Organization
An integrated control system combines various elements of monitoring and feedback into a cohesive framework. It ensures all organizational levels are aligned toward common goals.
Management by Exception (MBE)
Management by Exception focuses on identifying significant deviations from expected performance and addressing those instead of routine operations. It helps in effective decision-making and resource allocation.
Business Ethics: Importance of Business Ethics – Ethical Issues and Dilemmas in Business - Ethical Decision Making and Ethical Leadership – Ethics Audit - Business Ethics and - CSR Models
Business Ethics
Importance of Business Ethics
Business ethics serve as the backbone of any organization, guiding decision-making and establishing company culture. Ethical practices enhance trust, loyalty, and reputation, leading to sustainable success. Companies with strong ethical standards can attract and retain top talent, foster customer loyalty, and reduce legal risks.
Ethical Issues and Dilemmas in Business
Businesses often face ethical dilemmas, such as conflicts of interest, corporate governance, and social responsibility. Common issues include transparency, fair treatment, and honesty in advertising. Handling these dilemmas requires balancing stakeholder interests with ethical principles.
Ethical Decision Making
Ethical decision-making involves evaluating situations based on moral values and corporate guidelines. Tools such as ethical frameworks and decision-making models can aid in resolving ethical conflicts. Engaging in open discussions and considering the long-term impacts of decisions are essential.
Ethical Leadership
Ethical leadership involves leading by example, promoting fairness, integrity, and ethical behavior within the organization. Ethical leaders inspire their teams, create an environment of transparency, and encourage employees to report unethical practices without fear of retaliation.
Ethics Audit
An ethics audit assesses an organization's ethical practices and compliance with legal standards. It identifies areas for improvement and ensures that the ethical culture aligns with the company's goals. Regular audits foster accountability and demonstrate the company's commitment to ethics.
Business Ethics and CSR Models
Corporate Social Responsibility (CSR) models integrate ethical considerations into business strategies. These models measure a company's impact on society and the environment. Effective CSR initiatives not only enhance brand reputation but also contribute to societal well-being and sustainability.
