by Sreekanth N V

Unit-1 Introduction Meaning Nature and Characteristics of Management Scope & Functional Areas of Management Management as Science, art or profession Management & Administration Development of Management thought Early Management approaches Modern management approaches

Introduction What is Management? (Meaning) coordinates accomplishgoals efficiently and effectively Management in businesses and organizations is the function that coordinates the efforts of people to accomplish goals and objectives by using available resources efficiently and effectively. Management includes planning, organizing, staffing, leading or directing, and controlling an organization to accomplish the goal. What is Management? (Meaning) coordinates accomplishgoals efficiently and effectively Management in businesses and organizations is the function that coordinates the efforts of people to accomplish goals and objectives by using available resources efficiently and effectively. Management includes planning, organizing, staffing, leading or directing, and controlling an organization to accomplish the goal. Co-ordinate Goal Setting

Characteristics of Management 1. Intangible (not measurable and cannot be seen) but its presence can be felt by efforts in the production sales and revenues. 2.universal and it is applicable to all sizes and forms of organizations 3. a group activity and it involves getting things done with and through others 4.Is goal oriented and all actions of management are directed at achieving specific goals. 5.is science as well art and emerging now as a profession 6.is multidisciplinary and it has contributions from psychology, sociology, anthropology 1. Intangible (not measurable and cannot be seen) but its presence can be felt by efforts in the production sales and revenues. 2.universal and it is applicable to all sizes and forms of organizations 3. a group activity and it involves getting things done with and through others 4.Is goal oriented and all actions of management are directed at achieving specific goals. 5.is science as well art and emerging now as a profession 6.is multidisciplinary and it has contributions from psychology, sociology, anthropology

Nature of Management 1.All the managers carry out the managerial functions of planning, organizing, staffing leading and controlling 2.management applies to any kind of organization 3.applies to managers at all organizational levels 4.the aim of the managers is same create the surplus 5.managing is concerned with productivity, which implies effectiveness and efficiency 1.All the managers carry out the managerial functions of planning, organizing, staffing leading and controlling 2.management applies to any kind of organization 3.applies to managers at all organizational levels 4.the aim of the managers is same create the surplus 5.managing is concerned with productivity, which implies effectiveness and efficiency

Management Activities Four management activities included in this process are: 1. Planning 2.Organizing 3.Directing and 4.Controlling. Four management activities included in this process are: 1. Planning 2.Organizing 3.Directing and 4.Controlling.

Planning Is a function that determines in advance what should be done which is looking ahead and preparing for the future. Is a process of determining the objectives and charting out the methods of attaining those objectives. Is determination of what, where and how it is to be done and how the results are to be evaluated. Is done for the organization as a whole but every division, department or subunit of the orgainsation. Is a function which is performed by the managers at all levels-top(which may be as long as five years),middle(shorter may be week) and supervisory. Is a function that determines in advance what should be done which is looking ahead and preparing for the future. Is a process of determining the objectives and charting out the methods of attaining those objectives. Is determination of what, where and how it is to be done and how the results are to be evaluated. Is done for the organization as a whole but every division, department or subunit of the orgainsation. Is a function which is performed by the managers at all levels-top(which may be as long as five years),middle(shorter may be week) and supervisory. FORECAST Determine Objectives and methods Mapping of Resources Mapping Resources to all units Long term and short term strategies

Organizing and Staffing 1.Is a function which may be divided into two main sections namely the human organization and material organization. 2.Once the plans have been developed and the objectives established they must design and develop a human organization to carry out plans successfully. 3.May defined as a structure which results from identifying and grouping work, defining and delegating responsibility and authority and establishing the relationships. 4.Staffing is also considered an important function in building the human organization Involves building the right person for the right job. 5. Fixes responsibility for a manager to find the right person for the right job and ensures enough manpower for the various positions needed for the organization which involves selection and training of future managers and suitable system of compensation 6.Different objectives require different kinds of organizations 1.Is a function which may be divided into two main sections namely the human organization and material organization. 2.Once the plans have been developed and the objectives established they must design and develop a human organization to carry out plans successfully. 3.May defined as a structure which results from identifying and grouping work, defining and delegating responsibility and authority and establishing the relationships. 4.Staffing is also considered an important function in building the human organization Involves building the right person for the right job. 5. Fixes responsibility for a manager to find the right person for the right job and ensures enough manpower for the various positions needed for the organization which involves selection and training of future managers and suitable system of compensation 6.Different objectives require different kinds of organizations

Directing Is the next step after planning, organizing and staffing Involves three sub-functions namely communication leadership and motivation 1.Communication is the process of passing information from one person to another Leadership is the process of guiding and influencing the work of his subordinates by the manager. 2.Motivation is the arousing the desire in the minds of the workers to give their best to their enterprise. To pull out the weight effectively, to be loyal to their enterprise and carry out the task effectively. Has two types of motivation financial and nonfinancial 1.Financial: takes the form of salary, bonus, profit- sharing etc. 2. Nonfinancial: takes the form of job security, opportunity of advancement recognition praise etc Is the next step after planning, organizing and staffing Involves three sub-functions namely communication leadership and motivation 1.Communication is the process of passing information from one person to another Leadership is the process of guiding and influencing the work of his subordinates by the manager. 2.Motivation is the arousing the desire in the minds of the workers to give their best to their enterprise. To pull out the weight effectively, to be loyal to their enterprise and carry out the task effectively. Has two types of motivation financial and nonfinancial 1.Financial: takes the form of salary, bonus, profit- sharing etc. 2. Nonfinancial: takes the form of job security, opportunity of advancement recognition praise etc

Controlling 1.Establishing the standards of performance 2. Measuring current performance and comparing it against the established standards. 3.taking action to correct any performance that does not meet the standards of management process 1.Establishing the standards of performance 2. Measuring current performance and comparing it against the established standards. 3.taking action to correct any performance that does not meet the standards of management process ESTABLISH MEASURE REPAIR

Roles of a Manager Interpersonal Roles Figurehead: Duties of Ceremonial in nature Greeting dignitaries, attending wedding parties, taking a customer to lunch Leader: Motivate the team Reconcile individual needs with organization goals Liaison: Collect info and build contacts from outside for benefit of organization

Roles of a Manager Informational roles Monitor: Scan for info, interrogate, receive unsolicited info based out of personal contacts Disseminator: Passing the privileged info to sub ordinates Spokesman: Represent organization with stakeholders, govt, private, public etc about the organization health and stability

Roles of a Manager Decision Roles Entrepreneur: Seek Innovation for organization, creates new ideas Resource Allocator: Divide work and delegate authority in the team Negotiator: Considerable time in negotiations

Management As an Science (WHY) -methods are not completely empirical -methods are systematic but not always -information can be ordered and analyzed -Results can be cumulative and communicable -Can influence in any culture and geography As an Art (HOW) -More art because it is practical -Efficiency and effectiveness is improved by skill -Management is more art because one has to practice in a independent manner -Partly science and partly art is what is management

Management As a Profession -management cannot be a professional degree as it depends solely on the skills that the manager uses in a particular situation -though management has been taught this does not qualify to all the characteristics of a profession. Characteristics of profession 1.Existence of organised and systematic knowledge 2.Formalised methods of acquiring training and experience 3.Existence of an association with professionalism as its goal 4.Existence of an ethical code to regulate the behaviour of members of profession 5.Charging of fees based on service, but due regard for the priority of service than monetary reward

Management & Administration EFL Brech Sheldon, Spriegal, Milward

Development of Management Thought From till date there has been evolution in the industrial process. The stages can be studied in the following order: 1.Early classical approaches 2.Neo-classical approaches 3.Modern approaches From till date there has been evolution in the industrial process. The stages can be studied in the following order: 1.Early classical approaches 2.Neo-classical approaches 3.Modern approaches

Early Classical Approaches Frederick Winslow Taylor ( ) is considered the father of scientific management. His contribution with experiments and writings have helped evolution of management studies. He served in Midvale steel, Simonds rolling machine and Bethlehem steel. Frederick Winslow Taylor ( ) is considered the father of scientific management. His contribution with experiments and writings have helped evolution of management studies. He served in Midvale steel, Simonds rolling machine and Bethlehem steel.

Early Classical Approaches F W Taylor’s Contributions: Time and motion study to time a job and workers motion for increased efficiency Differential payment Motivating workers by paying incentives to workers who exceeded standards Drastic reorganization of supervision -separation of planning and doing -functional foremanship( to teach methods to worker) Scientific recruitment and training Focus on recruitment of skilled labor and training the labor to acquire skills Intimate friendly cooperation between management & Workers To reduce quarrel and increased productivity for win-win situation

Early Classical Approaches Other notable contributions in this era -Henry L Gantt with the Gantt chart, for planning, employee bar chart and emphasis on motivation -Frank and Lilian Gilbreth’s (motion and fatigue study) gave rise to therbligs to write flow process charts

Early Classical Approaches Contributions Time and Motion Study Scientific Selection of Workers Best Way of Doing Job Management and Workers win win situation by incentives Divide the work responsibility to each and every worker Training to workers Limitations Economic incentives is not everyone looked for Time and motion studies are not entirely scientific Separation led to monotony of work More machines means reduced man power in industries led to job cuts

Early Classical Approaches Administrative Management Henry Fayol( ) is considered as the father of administrative management Author of “General Administration and Industrial Administration” Six Groups of his focus: -Technical -commercial -Financial -Accounting -Security -Administrative or Managerial

Early Classical Approaches Administrative Management Henry Fayol’s 14 principles of management 1.Division of Work 2.Authority and responsibility 3.Discipline 4.Unity of command 5.Unity of direction 6.Sub-ordination of Individual interest to general interest 7.Remuneration 8.Centralization 9.Scalar Chain 10.Order 11.Equality 12.Stability of Tenure of personnel 13.Initiative 14.Esprit de Corps (Union is strength)

Early Classical Approaches Contributions Mooney, Railey and Col. L Urwick wrote books inspired by Fayol’s contibutions Clear line of authority was followed Communication in writing to individual employees One employee one function only Manager controls should not exceed more than six Authority can be delegated but not responsibility Limitations Small groups are formed without looking at the larger picture Leads to dissatisfaction because they cannot use all their abilities Increased overhead costs due to more number of workers Some are contradictory like unity of command and division of labor No empirical relation Leads to organizational structures not caring about the employee Organizations are assumed as closed systems but they are open systems

Early Classical Approaches Bureaucracy Max Weber a German Sociologist is known as father of bureaucracy ( ) In 1910 Distinguished 3 basic leaderships: -leader oriented (follow the leader approach) -tradition oriented (from generations) -bureaucratic (delegation based on demonstrated ability of individual)

Early Classical Approaches Bureaucracy 1.There is insistence on following standard rules 2.There is systematic division of work 3.Principle of Hierarchy is followed 4.Necessary for individuals to have training and knowledge of rules 5.Administrative acts, decisions and rules are in written records 6.There is rational personnel administration

Early Classical Approaches Contributions It is a logical extension of management It has shaped many large enterprises of modern day industries It is the way of delegating reponsibilities Limitations Overconfirmity of rules Buck passing Categorization of queries Displacement of goals No real right of appeal Neglect of informal groups Rigid structure Inability to satisfy the needs of mature individuals

Neo-Classical Approach The Human Relations Movement (Hawthrone studies) (Hawthrone studies) 1.Illumination experiments 2.Relay assembly test rooms 3.Interviewing Programme 4.Bank Wiring test roomBank Wiring test room

Neo-Classical Approach The Human Relations Movement (Hawthrone studies) (Hawthrone studies) 1.Illumination experiments 2.Relay assembly test rooms 3.Interviewing Programme 4.Bank Wiring test roomBank Wiring test room

Neo-Classical Approaches Contributions Business in not only techno- economic but also social system Improved conditions wont affect production A group enforces production norm and not the industrial engineer Worker wont work for money only Leadership is effective when democratic, employee-centered Informal group is more dominant and not individual Limitations It is incomplete and opposite to scientific and administrative approaches Keeping employee happy always wont work. During recession it impacts the organization Symbolic rewards wont be appreciated with the employees friends and family Informal groups not always work the way it is emphasized in this approach Production oriented approach Quick decisions cannot be made

Neo-Classical Approach Behavioral Approach More mature and improved approach Major contributors are Douglas McGregor Abraham Maslow Kurt Lewin Chester Barnard Mary Parker Follet George Homans Rensis Likert Chris Argyris Warren Bennis

Neo-Classical Approach Behavioral Approach -Highly critical about traditional organizations -They are against line and staff hierarchy -They talk about the practical situations to make optimal decisions -They are for positive and reformative measures -Organization is a group of individuals with goals -Leadership based studies were conducted -Needs and motivation of people are different was coined by these scientists

Modern Approaches Quantitative Approach -also called management science approach -Use of Operations Research during and after World War (US & UK) -OR approach is disciplined thinking and establishing relationships with different variables -Used in planning and control activities -But is not so much used in areas where human activities are sought

Modern Approaches Systems Approach -Broad detailed, conceptual framework Major contributors are Chester Barnard, George Homans, Philip Selznick and Herbert Simon

Modern Approaches Systems Approach key concepts are: 1.A system is a set of independent parts 2.Central to the systems approach is the concept of “holism” 3.A system can be wither open or closed 4.Every system has a boundary

Modern Approaches Systems Approach- Contributions -Both levels of system is studied micro level and macro level -Generalists are the requirement for executive positions in this approach LIMITATIONS: This is not a new approach but the parts of classic and neo-classical approach

Modern Approaches Contingency Approach -also called if then approach -Managers need to develop situational sensitivity and practical sensitivity -Applications of contingency approach designing organizational structure, decision of decentralising, planning information decision system, resolving conflicts, In motivational and leadership approaches In establishing control In employee development and training

Discussion Topics Briefly explain Henry Fayol’s principles of management Discuss important features of Bureaucratic approach of management. Explain the major tasks of manager in a contingency approach Explain the experiments of Elton Mayo in the field of behavioural management.

Books Text Books 1.Principles of Management –PC Tripathi, PN Reddy, Tata McGraw Hill 2.Dynamics of Entrepreneurial Development & Management- Vasant Desai- Himalaya Publishing House 3.Entrepreneurship Development - Small Business Enterprises – Poornima M. Charantimath – Peasrson Education – 2006 Reference Books 1.Management Fundamentals – Concepts, Application, Skill Development – Robert Lusier- Thomson 2.Entrepreneurship Development – SS Khanna – S Chand & Co. 3.Management – Stephen Robbins – Pearson Education/PHI – 17 th Edition, 2003