MGT205 Principles of Management

Principles of ManagementUnit 19 min read

Management: Definitions, Functions, Roles & Skills

Unit 1 of Principles of Management introduces the core concepts of management—its definition, evolution, functions, roles, and skills—with a focus on how IT managers apply these principles in real-world organizations.

TAKEAWAYS:

  • Management is the process of achieving organizational goals through planning, organizing, leading, and controlling resources efficiently.
  • F.W. Taylor’s scientific management introduced principles like standardization, time-motion studies, and worker specialization to boost productivity.
  • IT managers must balance technical, conceptual, and human skills to lead teams, solve problems, and align technology with business goals.
  • Omnipotent vs. symbolic views of management highlight whether managers have full control or operate within constrained environments.
  • Management by Objectives (MBO) aligns employee goals with organizational objectives through clear targets and feedback.
  • Conflict management techniques (e.g., negotiation, compromise) are critical for resolving disputes in teams and improving collaboration.

1. Definition of Management

Management is the art and science of getting things done through others to achieve organizational goals effectively and efficiently. It involves coordinating human, financial, physical, and informational resources.

Key Characteristics of Management:

PlanningOrganizingStaffingDirectingControllingCoordinationManagement
The six key functions of management as defined in the text.

2. Evolution of Management Thought

Management theories have evolved over time, from classical to contemporary approaches:

Era Key Thinkers Key Contributions
Classical Era F.W. Taylor, Henri Fayol Scientific management, 14 principles of management
Behavioral Era Mary Parker Follett, Elton Mayo Focus on human relations and motivation
Quantitative Era Peter Drucker, W. Edwards Deming Use of math, statistics, and data analysis
Modern Era Peter Senge, Tom Peters Learning organizations, total quality management

3. Functions of Management

Management performs four primary functions, often called the 4Ms:

Worked Example: IT Department Planning An IT manager at Ncell plans to upgrade servers to improve network speed. This involves:

  1. Setting goals: Increase uptime to 99.9%.
  2. Organizing: Assigning teams for procurement, installation, and testing.
  3. Staffing: Training technicians on new hardware.
  4. Directing: Motivating teams to meet deadlines.
  5. Controlling: Monitoring performance and adjusting as needed.

4. Roles of a Manager (Henry Mintzberg’s 10 Roles)

Mintzberg categorized managerial roles into three groups:

mindmap
  root((Managerial Roles))
    - Interpersonal
      - Figurehead
      - Leader
      - Liaison
    - Informational
      - Monitor
      - Disseminator
      - Spokesperson
    - Decisional
      - Entrepreneur
      - Disturbance Handler
      - Resource Allocator
      - Negotiator

Real-World Example: IT Manager at Daraz

  • Interpersonal: An IT manager at Daraz acts as a liaison between developers and logistics teams to ensure smooth order processing.
  • Informational: As a monitor, they track system performance to detect bottlenecks.
  • Decisional: They act as a disturbance handler when a server outage disrupts online sales.

5. Skills of a Successful Manager

Effective managers require a mix of technical, conceptual, and human skills:

IT proficiencyProblem-solvingTechnical SkillsStrategic thinkingBig-picture visionConceptual SkillsLeadershipCommunicationEmotional intelligenceHuman SkillsManagerial Skills
Hierarchical breakdown of the three types of managerial skills.

Comparison: IT Manager vs. Non-IT Manager

Skill IT Manager Non-IT Manager
Technical Deep knowledge of software/hardware Basic technical awareness
Conceptual Aligns tech with business goals Focuses on operational efficiency
Human Manages remote/agile teams Leads traditional hierarchies

6. Scientific Management (F.W. Taylor)

F.W. Taylor’s principles aimed to maximize efficiency through systematic analysis:

  1. Develop a science for each task (standardized procedures).
  2. Scientifically select and train workers.
  3. Ensure cooperation between management and workers.
  4. Divide work evenly between managers and workers.

Worked Example: Bank ATM Operations

  • Standardization: ATMs follow uniform procedures for cash dispensing.
  • Time-Motion Studies: Banks analyze how quickly customers withdraw money to optimize queue management.
  • Worker Specialization: Tellers are trained for specific tasks (e.g., loan processing vs. deposits).

7. Omnipotent vs. Symbolic Views of Management

Omnipotent View Symbolic View
Managers have full control over outcomes. Managers influence but cannot fully control results.
Focuses on direct action to achieve goals. Recognizes external constraints (e.g., market trends, regulations).
Example: A manager at NTC assumes they can single-handedly reduce network downtime. Example: A manager at Ncell acknowledges that signal quality depends on infrastructure beyond their control.
Managers control outcomesInternal focusOmnipotent ViewExternal influences matterLimited controlSymbolic ViewManagement Views
Comparison of two contrasting perspectives on managerial power.

8. Management by Objectives (MBO)

MBO is a goal-setting framework where managers and employees collaboratively set targets:

flowchart TD
    A["Set Objectives"] --> B["Define Key Results"]
    B --> C["Monitor Progress"]
    C --> D["Evaluate Performance"]
    D --> E["Provide Feedback"]
    E --> F["Review & Adjust"]
    F --> A
The MBO cycle with an added review step for clarity.

Real-World Example: eSewa’s Customer Support Team

  • Objective: Reduce response time to customer complaints from 24 hours to 6 hours.
  • Key Results: Train agents on FAQs, implement a ticketing system, and conduct monthly reviews.
  • Outcome: Faster resolutions improve customer satisfaction and retention.

9. Conflict Management Techniques

Conflicts arise due to resource scarcity, miscommunication, or differing goals. Common techniques:

AvoidanceAccommodationCompetitionCompromiseCollaborationConflict Management Techniques
Classification of conflict resolution strategies.

Worked Example: Kathmandu Traffic Jam

  • Avoidance: Drivers ignore the jam by taking alternate routes.
  • Compromise: Traffic police adjust lane directions to reduce congestion.
  • Collaboration: City planners introduce BRT lanes to improve flow.

10. Manager vs. Leader

Manager Leader
Focuses on planning, organizing, and controlling. Inspires and motivates teams.
Maintains status quo. Drives change and innovation.
Example: A bank branch manager ensures smooth operations. Example: Sundar Pichai (Google CEO) leads digital transformation.

In the Real World

  1. eSewa’s MBO Framework

    • eSewa uses Management by Objectives to set quarterly targets for transaction volumes and fraud reduction. For example, their goal to process 10 million transactions/month drives system upgrades and agent training.
  2. Pathao’s Conflict Resolution

    • Pathao drivers and dispatchers often face scheduling conflicts. The company uses collaborative conflict resolution (e.g., shared scheduling apps) to balance rider demand with driver availability.
  3. NEPSE’s Omnipotent vs. Symbolic Management

    • NEPSE (Nepal Stock Exchange) managers assume control over market stability (omnipotent view) but must also adapt to global economic shifts (symbolic view), such as responding to COVID-19 volatility.

Exam Tips

  • Definition Questions: Always define management as a process (not just a job title) and link it to goal achievement.
  • Taylor’s Principles: Memorize the four key steps and apply them to real-world scenarios (e.g., factories, banks).
  • Mintzberg’s Roles: Use the 10 roles to analyze case studies (e.g., "How does an IT manager at Daraz act as a disturbance handler?").
  • MBO: Explain it as a cycle (set → monitor → evaluate) and tie it to performance reviews.
  • Conflict Techniques: For short notes, list all five (avoidance, accommodation, etc.) and give one example per technique.
  • Manager vs. Leader: Contrast control vs. inspiration with examples from tech (e.g., Satya Nadella at Microsoft) or local firms (e.g., Chaudhary Group’s leadership).

Based on the TU BIT syllabus for Principles of Management (MGT205), unit 1.

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