Management Concepts

Cheatsheet Content

1. Management Basics Definition of Management: A process of getting work done efficiently and effectively for organizational goals. Scientific Management: Frederick W. Taylor's approach to find the most effective way to do a job. Unity of Command: An employee should receive orders from only one superior to avoid conflict. Scalar Chain: A chain of superiors from ultimate authority to lowest ranks for communication. Espirit de Corps: "Union is strength"; emphasizes team spirit, harmony, and union among personnel. 2. Fayol's Principles & Studies Time Study: Determines the time a movement takes to complete, identifying time for various job operations for skilled workers. Motion Study: Analyzes operator/machine movements to eliminate unnecessary actions, saving time and cost, and reducing fatigue. Two Principles of Fayol: (Example: Unity of Command, Scalar Chain - as explained above. Other common ones include Division of Work, Authority and Responsibility, Discipline, etc.) 3. Management Levels & Functions Top-level Management: Consists of Board of Directors, Managing Director, General Manager, etc. They fix objectives, policies, plans, and make important decisions. Lower-level Management (Supervisory Management): Includes supervisors, foremen, gang boss, accounts officer, sales officer, etc. Functions: Plan for a day, organize group activities, allot work, issue instructions, motivate employees. Controlling: Process of determining what is being accomplished, evaluating performance, and applying corrective measures. Steps: Determination of standards, measurement of performance, comparison, corrective action. Direction: Guiding human efforts towards organizational goals; follows planning, organizing, and staffing. Supervision: Assuring work is done according to plan and instruction; involves giving direction, advice, motivation, coaching, and training. Co-ordination: Henry Fayol considers it a function of management; achieving orderly group efforts and unity of action. 4. Key Management Concepts Skills Required for a Manager: Planning skill Communication skill Decision making skill Delegation Problem solving skill Motivating MBO (Management By Objectives): A comprehensive managerial system integrating key activities for effective achievement of organizational objectives. Forecasting: Technique using historical data to make informed estimates for future trends. Decision Making: Selecting the best course of action from alternatives to achieve objectives. Span of Management (Span of Control): Number of subordinates a superior can effectively manage. Line Organization: Oldest administrative structure where authority flows from top to bottom. Delegation: Granting authority to subordinates to operate within prescribed limits. Centralization vs. Decentralization: Centralization: Retention and concentration of decision-making authority at higher levels. Decentralization: Systematic delegation of authority throughout the organization. 5. Human Resource Management Staffing: Hiring and developing personnel to fill positions; obtaining capable and competent people for all positions (recruitment, selection, training, development, appraisal). Job Analysis: Detailed and systematic study of jobs to understand their nature and characteristics for manpower requirements. Job Description: A written statement resulting from job analysis, describing organizational relationships, responsibilities, and duties. Job Specification: A statement of maximum acceptable human qualities necessary to perform a job satisfactorily, derived from job analysis. Manpower Planning: Process of ensuring an adequate number of qualified persons are available at proper times for enterprise needs and individual satisfaction. Recruitment: Positive process of searching for and stimulating qualified employees to apply for jobs. Aptitude Tests: Designed to measure aptitude and capacity to learn skills for a particular job. Training: Increasing knowledge and skills of an employee for a particular job; a learning process for skill acquisition, concepts, rules, or attitudes. Off-the-Job Training: Training method where workers learn roles away from the actual work floor. Craft Training: Training given by an experienced craftsman in various crafts, with a comparatively longer learning period. Demotion: Change of an employee to a position with a lower salary range maximum, possibly voluntary. 6. Advanced Management Techniques Strategic Control: Adapting strategy implementation to changing factors to achieve goals; tracking strategy, detecting problems, and making adjustments. Budgetary Control: A management tool to plan, carry out, and control business operations by setting objectives and measuring performance. Management Audit: Systematic, critical assessment of management's total performance to improve efficiency and profits. PERT (Programme Evaluation and Review Technique): A control technique for complex projects in dynamic environments. CPM (Critical Path Method): Technique to reduce project time by indicating the minimum time for completion with estimated activity durations. TQM (Total Quality Management): Method for continuous improvement of goods and services, combining quality and management tools to increase business and reduce waste. Kaizen (Continuous Improvement): Strategy where employees at all levels proactively achieve regular, incremental improvements. Lean Management: Aims at creating value and eliminating waste, focusing on customer perspective and maximizing profits. BPR (Business Process Reengineering): Analysis and redesign of core business processes for substantial improvements in performance, productivity, and quality. OBM (Open-Book Management): Management approach providing employees with financial information for better business decisions, promoting transparency. 7. Ethics & Governance Ethics: Concerned with right/wrong, good/bad, fair/unfair, obligatory/permissible actions. Managerial Ethics: Basic part of business ethics; moral principles affecting employee behavior. CSR (Corporate Social Responsibility): Balancing economic, environmental, and social essentials (Triple-Bottom-Line Approach) while addressing stakeholder expectations. Corporate Governance: How a corporation is governed, managed, and directed to carry business as per stakeholders' desires. Indian Ethics (Indian Ethos): The heart of the Indian model of development, distinguishing it from other cultural ethos.