MANAGEMENT

DEFINITION:
Henry L. Sisk.
*Management is the coordination of all resources through
the process of planning, organising, directing and controlling
in order to attain stated objectives.
James L. Lundy
*Management is principally the task of planning,
coordinating, motivating and controlling the efforts of others
towards a specific objective.
Harold Koontz and Cyrill ODonnell
*Management is the creation and maintenance of an
internal environment in an enterprise where individuals,
working in groups, can perform efficiently and effectively
towards the attainment of group goals.
F.W. Taylor
*Management is the art of knowing what you want to do and
then seeing that it is done in the best and cheapest way.
Henry Fayol
* To manage is to forecast and to plan, to organise to
command, to coordinate and to control.
Ralph C. Davis
* Management is the function of executive leadership
anywhere.
American Management Association
*Management is guiding human and physical resources into
dynamic organisational units which attain their objectives to
the satisfaction of those served and with a high degree of

morale and sense of attainment on the part of those

rendering service.
NATURE :
Nature and Characteristics of Management The salient
features which highlight the nature of management are as
follows:
(i) Management is goal-oriented: Management is not an
end in itself. It is a means to achieve certain goals.
Management has no justification to exist without goals.
Management goals are called group goals or organisational
goals. The basic goal of management is to ensure efficiency
and economy in the utilisation of human, physical and
financial resources. The success of management is measured
by the extent to which the established goals one achieved.
Thus, management is purposefull.
(ii) Management is universal: Management is an essential
element of every organised activity irrespective of the size or
type of activity. 6 t ManagementPrinciples and Practices
Wherever two or more persons are engaged in working for a
common goal, management is necessary. All types of
organisations, e.g., family, club, university, government,
army, cricket team or business, require management. Thus,
management is a pervasive activity. The fundamental
principles of management are applicable in all areas of
organised effort. Managers at all levels perform the same
basic functions.
(iii) Management is an Integrative Force: The essence of
management lies in the coordination of individual efforts in to
a team. Management reconciles the individual goals with
organisational goals. As unifying force, management creates
a whole that is more than the sum of individual parts. It
integrates human and other resources.
(iv)
Management is a Social Process: Management is done by

people, through people and for people. It is a social process

because it is concerned with interpersonal relations. Human
factor is the most important element in management.
According to Appley, Management is the development of
people not the direction of things. A good manager is a leader
not a boss. It is the pervasiveness of human element which
gives management its special character as a social process.
(v) Management is multidisciplinary: Management has
to deal with human behaviour under dynamic conditions.
Therefore, it depends upon wide knowledge derived from
several disciplines like engineering, sociology, psychology,
economics, anthropology, etc. The vast body of knowledge in
management draws heavily upon other fields of study. (vi)
Management is a continuous Process: Management is a
dynamic and an on-going process. The cycle of management
continues to operate so long as there is organised action for
the achievement of group goals.
(vii) Management is
Intangible: Management is an unseen or invisible force. It
cannot be seen but its presence can be felt everywhere in the
form of results. However, the managers who perform the
functions of management are very much tangible and visible.
(viii) Management is an Art as well as Science: It
contains a systematic body of theoretical knowledge and it
also involves the practical application of such knowledge.
Management is also a discipline involving specialised training
and an ethical code arising out of its social obligations.
On the basis of these characteristics, management
may be defined as a continuous social process involving the
coordination of human and material resources in order to
accomplish desired objectives. It involves both the
determination and the accomplishment of organisational
goals.

STRATEGY :-means to achieve organizational purpose.

STRUCTURE:-basic framework to designate responsibilities and functions.
SYSTEMS:-management tools for planning, decision making ,
communication and control.
STAFF:-human resources of the organization. SKILLS:- organizational and
individual capabilities.
SHARED VALUES:-values , goals , objectives which the organization
pursues.

SCOPE OF MANAGEMENT:
Production Management: a) Designing the product b) Location and
layout of plant and building c) Planning and Control of factory
operations d) Operation of purchase and storage of materials e)
Inventory cost and Quality Control f) Research and Development etc.

Marketing Management: a) marketing research to determine the

needs and expectation of consumers b) planning and developing
suitable products c) setting appropriate prices d) selecting the right
channel of distribution, and e) promotional activities like advertising
and salesmanship to communicate with the customers

Financial Management: a) Selecting the appropriate source of

funds b) Raising the required funds at the right time c) Administration
of earnings d) Estimating the volume of fund.

Personnel Management: a) manpower planning b) recruitments, c)

selection, d) training e) appraisal, f) promotions and transfers, g)
compensation, h) employee welfare services, and i) personnel
records and research, etc.

 Top Level Management- The top level management is generally

occupied by the ownership group. It is the highest level in the
managerial hierarchy and the ultimate source of authority in the
organisation.
29. Middle Level Management-In order to fill up the gap which exists
between functional and operative level, some managerial positions
are created at the middle level of management. Middle level
management consists of departmental managers, deputy
managers,foreman and administrative officers etc.
30. Lower Level or Supervisory Level Management- It consists of
factory supervisors, superintendents, foremen, sales supervisors,
accounts officers etc. They directly guide and control the performance
of rank and file workers. They issue orders and instructions and guide
day to-day activities.

 The father of modern management Henri fayol, described firstly the

process of management in 5-terms 33. Planning : Planning is the first step which is basically a logical
thinking process that decides what needs to be done in order to
achieve organization's goals and objectives. It focuses on the broader
perspective of the business as well as taking into consideration, the
tactical methods to get the desired results.
34. Deciding which goals the organization will pursue. Deciding
what courses of action to adopt to attain those goals. Deciding how
to allocate organizational Resources.

 35. Organizing : Organizing is about setting up and maintaining the

internal organizational structure in accordance with objectives
mentioned in planning stage. It also involves assigning tasks to
various individuals for the larger goal of organization's missions and
objectives.
36. Organizing: Involves grouping people into departments
according to the kinds of job-specific tasks they perform. Managers
lay out lines of authority and responsibility. Decide how to
coordinate organizational resources.
37. Staffing : Staffing is the process of choosing right people for
organization. It can be associated with human resource management
and involves recruitment, hiring, training and compensating the
workforce.
38. Directing : Directing is guiding people in the organization through
the means of counseling, instructing, motivating. Controlling :
Controlling The process of leading and influencing the task related
activities of group members or an entire organization.

 1. Evolution of management thoughtEvolution of management

thought
2. Early approaches to ManagementEarly approaches to
ManagementThe Industrial Revolution, which began inEurope in
the mid-1700s, was the startingpoint for the development
ofmanagement concepts and theories.
3. Classical ApproachClassical ApproachClassical management
can be divided intothree separate schools:-Scientific management
F.W. TaylorAdministrative theory Henry FayolBureaucratic
management Max Weber
4. Overview of classical theoriesOverview of classical
theoriesApproach Rationale FocusScientificmanagementOne best
way to doeach jobJob levelAdministrativeprinciplesOne best way to
putan organizationtogetherOrganizational

levelBureaucraticorganizationRational
andimpersonalorganizationalarrangementsOrganizational level
5. Classical ApproachClassical ApproachThese views are labeled
as classicalbecause they form the foundation for thefield of
management thought.
6. Scientific managementScientific managementIt is an approach
that emphasizes thescientific study of work methods toimprove the
efficiency of workers.It became popular in 1900s.
7. Scientific managementScientific managementF.W. Taylor was
known as the father ofscientific management.Midvale Steel
Co.SoldieringTo counter the soldiering problem Taylordeveloped
the science of Management.
8. Scientific managementScientific managementSteps
DescriptionStep 1 Develop a science for each element ofthe jobStep
2 Scientifically select employees andthen train themStep 3 Supervise
the employeesStep 4 Continue to plan but get the work doneby the
workers
9. Scientific managementScientific managementThe two major
managerial practices thatemerged from Taylors approach :-Piecerate incentive systemTime-and-motion study
10. Limitations of scientific managementLimitations of scientific
managementScientific management focus on problemsat
operational level.People are motivated only by materialgains.It
ignored human desire for jobsatisfaction.
11. Administrative TheoryAdministrative TheoryIt focused on
principles that could beused by managers to coordinate
internalactivities of organization.Henry Fayol FrenchAccording
to Fayol, the businessoperations of an organization could bedivided
into 6 activities
12. Administrative TheoryAdministrative TheoryThe 6 activities
are :

-TechnicalCommercialFinancialSecurityAccountingMan
agerial
13. Fayols 14 principles of ManagementFayols 14 principles of
ManagementDivision of workAuthority and
responsibilityDisciplineUnity of commandUnity of
directionSubordination of the individual interest tothe general
interest.
14. Fayols 14 principles of ManagementFayols 14 principles of
ManagementRemunerationCentralizationScalar
chainOrderEquityStability of tenure of
personnelInitiativeEspirit de corps
15. Bureaucratic ManagementBureaucratic ManagementMax
WeberMajor characteristics of BureaucracyWork specialisation and
division oflabourRules and regulationsImpersonalityHierarchy
of organization
16. Limitations of bureaucratic andLimitations of bureaucratic
andadministrative managementadministrative managementNot
universally accepted principles.Bureaucracy destroyed
individualcreativity and flexibility.Important aspects of O.B. was
ignored.External and internal environmentignored.
17. Behavioral ApproachBehavioral ApproachThe behavioural
school of managementemphasized what the classical
theoristsignores The human element.
18. Elton Mayo : Focusing on HumanElton Mayo : Focusing on
HumanRelationsRelationsFather of the Human Relations
ApproachWestern Electrics Hawthorne Plant
19. Elton Mayo : Focusing on HumanElton Mayo : Focusing on
HumanRelationsRelationsThe experiments were conducted in
fourphases:Illumination experimentRelay assembly test room
experimentInterview phaseBank wiring observation
roomexperiment

 20. Contributions of Hawthorne studiesContributions of Hawthorne

studiesThe group is the key factor in jobperformancePerceived
meaning and importance of thework determine outputWorkplace
culture sets its ownproduction standards
21. Criticism of Hawthorne studiesCriticism of Hawthorne
studiesCritics felt that the conclusions weresupported by little
evidence.The relationship made betweensatisfaction of workers
and productivitywas too simple.The studies failed to focus on
theatitudes if employees.
22. Abraham Maslow : Hierarchy of needsAbraham Maslow :
Hierarchy of needsPeople are motivated by a hierarchy
ofneedsHis theory had three assumptionsAll of us have needs
which are neverfulfilledThrough our actions we try to fulfill
ourunsatisfied needsNeeds can be classified into 5 types
23. Abraham Maslow : Hierarchy of needsAbraham Maslow :
Hierarchy of needsAccording to Maslow, once needs at aspecific
level have been satisfied, they nolonger act as motivators of
behaviour.Then individual strives to fulfill needs atthe next level.
24. Douglas McGregor : Theory X andDouglas McGregor : Theory X
andTheory YTheory YThese theories reflect two extreme setsof
belief that different managers haveabout their workers.Theory X
represents an essentiallynegative view.Theory Y reflects a more
positive view.
25. Chris Argris : Matching human andChris Argris : Matching human
andorganizational developmentorganizational developmentMaturity
immaturity theoryModel I and Model IIModel I Employees are
manipulativeand not willing to take risks
26. Quantitative approachQuantitative approach1. Management
scienceAnother name for it is operationsresearch2. Operations
management3. Management information systems
27. Modern approaches to managementModern approaches to
management1. Systems approachOrganizations cannot exist in

isolationFour major components Inputs,transformation process,

output andfeedbackOpen and closed systems
28. Modern approaches to managementModern approaches to
management2. Contingency theorySituational theory
29. Emerging Approaches in ManagementEmerging Approaches in
ManagementThoughtsThoughtsWilliam Ouchi theory
ZConducted research on both American andJapanese
management approachesTheory Z involves providing job security
toemployees to ensure their loyaltyQuality management

Evolution of Management Thought

Management has been progressively evaluated through the following three stages.

The Classification theory of management

It has three streams:1.

Bureaucracy : 1900

2.

Scientific management: 1900-1930

3.

Administrative / Operational management: 1916-1940

The Neo-classical Theory of management

It has two streams:1.
2.

Human Relations: 1930-1950

Behavioral Approach: 1940-1950

Modern Theory of management

It has three streams:-

1.
2.
3.

Quantitative Approach: 1950-1960

Systems Approach: 1960s on words
Contingency Approach: 1970s on words

Evolution of Management Thought Frederick Winslow Taylor - Theory of Scientific Management

F.W.Tylor is considered as the "Father of scientific management" and his
contributions mark a new era in Modern Management Thought. The concepts
propounded by him have an impact on management service practice as well as
on management thought up to the present day.. Taylor formalized the principles
of scientific management,and the fact-finding approach put forward and largely
adopted was a replacement for what had been the old rule of thumb.
He also developed a theory of organizations , which has been largely accepted
by subsequent Management Philosophers

F.W. Taylor's Contributions to Scientific Management

By 1881 Taylor had published a paper that turned the cutting of metal into a
science. Later he turned his attention to shoveling coal. By experimenting with
different designs of shovel for use with different material (from 'rice' coal to ore)
he was able to design shovels that would permit the worker to shovel for the
whole day.
In so doing, he reduced the number of people shoveling at the Bethlehem Steel
Works from 500 to 140. This work, and his studies on the handling of pig iron,
greatly contributed to the analysis of work design and gave rise to method study.
To follow, in 1895, were papers on incentive schemes. A piece rate system on
production management in shop management, and later, in 1909, he published
the book for which he is best known, Principles of Scientific Management.
A feature of Taylor's work was stop-watch timing as the basis of observations.
However, unlike the early activities of Perronet and others, he started to break
the timings down into elements and it was he who coined the term 'time study'.
Taylor's uncompromising attitude in developing and installing his ideas caused
him much criticism. Scientific method, he advocated, could be applied to all
problems and applied just as much to managers as workers. In his own words he
explained:

"The old fashioned dictator does not exist under Scientific Management. The
man at the head of the business under Scientific Management is governed by
rules and laws which have been developed through hundreds of experiments just
as much as the workman is, and the standards developed are equitable."

Objectives of Scientific Management

The four objectives of management under scientific management were as
follows:
The development of a science for each element of a man's work to replace
the old rule-of-thumb methods.
The scientific selection, training and development of workers instead of
allowing them to choose their own tasks and train themselves as best they
could.
The development of a spirit of hearty cooperation between workers and
management to ensure that work would be carried out in accordance with
scientifically devised procedures
The division of work between workers and the management in almost
equal shares, each group taking over the work for which it is best fitted
instead of the former condition in which responsibility largely rested with
the workers. Self-evident in this philosophy are organizations arranged in a
hierarchy, systems of abstract rules and impersonal relationships between
staff.

F.W. Taylor's Contribution to Organizational Theory

This required an organization theory similar for all practical purposes to that
advocated by those organizational theorists who followed. These theorists
developed principles of management which included much of Taylor's philosophy
His framework for organization was:
clear delineation of authority
responsibility
separation of planning from operations

 incentive schemes for workers

management by exception
task specialization

Criticism Of Theories Expounded by Taylor

Taylor's Philosophy though gained immense popularity, was also widely criticised
on three grounds.
1. Scientific management ignored human side of organization.. Taylor viewed
on average worker as a machine that could be motivated to work hard
through economic incentives. Workers and Trade Unions opposed his
views strongly on the plea that it was exploitative.
2. Taylor's theory is narrow in scope having direct application to factory jobs
at the Shop Floor Level. Taylor and his disciples were called "Efficiency
Experts" because they concentrated attention on improving efficiency of
workers and machines. Scientific management is therefore restricted in
scope as a theory of Industrial Engineering or Industrial Management,
rather than a general theory of management.
3. Taylor advocated excessive use of specialisation and separation of
planning from doing. Excessive division of labour had disastrous
consequences in the form repetitive and monotonous jobs and discontent
among workers.
Nevertheless, Taylor's theory and principles have exercised considerable
influence on modern management thought. His emphasis on use of scientific
methods in solving work-related problems is widely accepted by modern experts
on management. Taylor's impact has been so great because he developed a
concept of work-measurement, production control and other functions, that
completely changed the nature of industry. Before scientific management, such
departments as work-study, personnel, maintenance and quality control did not
exist. What was more his methods proved to be very successful. Quantitative
approach or management science approach is based largely on Taylor's
philosophy.
"Scientific Management focuses on job-productivity at the shop floor, in particular
upon techniques that could be used on manual workers. Scientific management
principles continue to be widely applied today. In a typical manufacturing
orgnization one will see scientific managment ideas and techniques being

applied to the shop floor, and bureaucratic principles of organization being used
in the office areas".*
*

Andrzej A. Huczynski in "Management Gurus - What makes them and how to

become one" (p.12)

Scientific Management- (Contribution of F.W.

Taylor)

Scientific Management
(Contribution of F.W. Taylor)
Frederick Winslow Taylor was first person who gave
Scientific Management in 1911. He also called the father of
scientific management. Scientific Management was concerned to
improving the operational efficiency at the shop-floor level.

According to Taylor, scientific management means knowing

exactly what you want men to do and seeing that they do it in the
best and cheapest way.

Scientific management is based on the analysis, planning and

control functions. And job accomplished by analyzing, and works
can selected and trained scientifically. In this, management role is
to determine the kind of work for which an employee suited and
hire and assign workers accordingly. Management is not

responsible for execution of work but they are responsible for how
the work is done. Co-operation between management and
workers can enhance the work and achieve the maximum output.

Taylor called it as Mental Revolution, because it creates the

mutual understanding, trust and confidence between the
management and workers for achieving goal (higher production).

Principles of scientific Management

Under scientific management, Taylor developed the following
parameters for organization.

 Scientific work study

Task planning
Tools and materials
Selection and Training
Standardization
Worker management interrelationships
Differential piece wage system

Objective of Scientific Management

 Scientific utilization of various resources like human power,

material etc.
To provide trained and efficient work force.
To provide standardize methods of work.
To provide a scientific base for selecting material, and equipment.
To provide extra wages to the worker for higher production.
Replace old rule of thumbs to new scientific methods.
To develop a good rapport between management and workers.
To achieve higher production, with reduce costs and maximum
efficiency.
Less wastage.

(Contribution of Henri Fayol)

Henri Fayol was real father of modern Management. Henri
Fayol is the French industrialist in 1841-1925. He was a mining
engineer in. Henri Fayol spent his entire working career in French
industry; French cool and iron combine of commentary

fourchambault. Henri Fayol developed a general theory

of Business Administration.

Henri Fayol was concerned the principles of organization and

the function of management. Fayol laid the foundation of
management as a separate body of knowledge. He always
insisted that if scientific forecasting and proper methods are used
in management than company can get satisfactory results.
According to Fayol, management was not personal talent; it is a
knowledge base skill.

Henri Fayols Administrative Management is based on six

admin activities. They are1. Technical : Production and manufacture
2. Managerial : Planning, controlling, co-ordination
3. Commercial : Purchasing and selling
4. Financial : Use of capital
5. Accounting : Asset, Liabilities, cost, profits
6. Security : Protection of goods and

Person

Fayols fourteen Principles of management

Fayol derived the following fourteen principles.-

Division of work: Division of work means specialization. Each

job and work should be divided into small task and should be
assigned to specialist of it.

Authority and responsibility: Authority means right to give

order and command while responsibility means
to accomplish objective.

Discipline: Discipline is required at every level in every

organization. Fayol stated discipline in terms of obedience,
application, and respect to superiors.

Unity of command: A subordinate should receive order from

only one boss.

Unity of direction: It means that all the works of an

organization must work together to accomplish a common
objective in under one plan and head.

Subordination of individual interest to common

interest: Worker follows the common interest of organization
rather than individual.

Remuneration: Remuneration should be fair and adequate. It

includes both types of incentives financial as well as non financial.

Centralization: There should be one central point in

organization which exercises overall direction and control of all
the parts.

Scalar Chain: Scalar chain is the chain or line of command from

superior to subordinates.

Order: Only proper order can give an efficient management.

Equity: Equity creates loyalty and devotion among the
employees.

Stability of tenure personnel: Security of job for an employee

in an organization is very important and pre-requisite condition.
Retaining productive employee should always a higher priority of
management.

Esprit de corps: Management should encourage harmony and

proper understandings between workers. Fayol said that in union
there is strength. Whole organization should work as a team.

Initiative: Manager should be encouraged the employees

Initiative for creative working.

BUREAUCRACY MANAGEMENT (Max Weber-1900)

Bureaucracy management is a stream of classical theory of

management. Max Weber was the first of management theorists
who were concerned the management structure with the sets of
rule and regulations. Bureaucracy management depends upon
administration devices. Max Weber presents the ideal
organization structure. There are four major characteristics of
organizational structure.

Hierarchical positions

Rules of system

Division of labour for specialization

Impersonal relationship

Advantage of bureaucracy management:

Hierarchy of authority.

Employment is based on the technical efficiency.

Eliminate managerial inconsistencies.

A well understood system.

Maintain the consistency of working.

Rules and regulation of the duties are followed by the

employees.

Records are kept for future references.

People are given authority according to their position in
organization.

Disadvantage of bureaucracy management:

resources are not tackled.

Human

Inter personal relations are discarded.

It does not allow for personal growth and development.

It does not possess adequate.

Organization becomes static and change is not anticipated.

Difficult to keep co-ordination and communication between

employees.

It is a closed system.

Neoclassical theorists recognized the importance of individual or

group behaviour and emphasized human relations. Based on the
Hawthorne experiments, the neoclassical approach emphasized
social or human relationships among the operators, researchers
and supervisors (Roethlisberger and Dickson, 1943). It was
argued that these considerations were more consequential in
determining productivity than mere changes in working
conditions. Productivity increases were achieved as a result of

high morale, which was influenced by the amount of individual,

personal and intimate attention workers received.
Principles of the neoclassical approach
The classical approach stressed the formal organization. It was
mechanistic and ignored major aspects of human nature. In
contrast, the neoclassical approach introduced an informal
organization structure and emphasized the following principles:
The individual An individual is not a mechanical tool but a
distinct social being, with aspirations beyond mere
fulfilment of a few economic and security works. Individuals
differ from each other in pursuing these desires. Thus, an
individual should be recognized as interacting with social
and economic factors.
The work group The neoclassical approach highlighted
the social facets of work groups or informal organizations
that operate within a formal organization. The concept of
'group' and its synergistic benefits were considered
important.
Participative management Participative management or
decision making permits workers to participate in the
decision making process. This was a new form of
management to ensure increases in productivity.
Note the difference between Taylor's 'scientific management' which focuses on work - and the neoclassical approach - which
focuses on workers.

DEFINITION

Hawthorne effect
the Business terms glossary:
inShare
Email
Part of
Comment
RSS
Print
A
AA
AAA

The Hawthorne effect is a psychological phenomenon

that produces an improvement in human behavior or

performance as a result of increased attention from

superiors, clients or colleagues.
Introduction
Elton Mayos team conducted a number of experiments involving six female workers.
These experiments are often referred to as the Hawthorne experiments or Hawthorne
studies as they took place at The Hawthorne Works of the Western Electric Company
in Chicago.
Hawthorne Experiment Details
Over the course of five years, Mayos team altered the female workers working
conditions and monitored how the change in working conditions affected the workers
morale and productivity. The changes in working conditions included changes in
working hours, rest brakes, lighting, humidity, and temperature. The changes were
explained to the workers prior to implementation.
Hawthorne Experiment Results
At the end of the five year period, the female workers working conditions, reverted
back to the conditions before the experiment began. Unexpectedly the workers morale
and productivity rose to levels higher than before and during the experiments. The
combination of results during and after the experiment (ie the increase in the workers
productivity when they were returned to their original working conditions) led Mayo
to conclude that workers were motivated by psychological conditions more than
physical working condition.

Hawthorne Experiment Conclusions

After analysing the results from the Hawthorne experiments Mayo concluded that
workers were motivated by more than self interest and the following had an impact
too:

Psychological Contract
There is an unwritten understanding between the worker and employer regarding what
is expected from them; Mayo called this the psychological contract.
Interest in Workers
A workers motivation can be increased by showing an interest in them. Mayo
classified studying the workers (through the experiments) as showing an interest in the
workers.

Work is a Group Activity

Work is a group activity, team work can increase a workers motivation as it allows
people to form strong working relationships and increases trust between the workers.
Work groups are created formally by the employer but also occur informally. Both
informal and formal groups should be used to increase productivity as informal groups
influence the workers habits and attitudes.
Social Aspect of Work
Workers are motivated by the social aspect of work, as demonstrated by the female
workers socialising during and outside work and the subsequent increase in
motivation.
Recognise Workers
Workers are motivated by recognition, security and a sense of belonging.
Communication
The communication between workers and management influences workers morale
and productivity. Workers are motivated through a good working relationship with
management.
Conclusion
The traditional view of how to motivate employees is that you offer monetary rewards
(pay increases, bonuses etc) for work completion. However the Hawthorne
experiments may suggest that motivation is more complicated than that. Advocates of
the "Hawthorne Effect" will state that the Hawthorne experiment results show that
motivation can be improved through improving working relationships and social
interraction.

Major contributors of Neo-classical theory are:

Chris Argyris- He recommended that worker should be given freedom to
make their own judgments.
Mary Praker Follett: He referred group influence.

Dougals Me Gorgor: he referred two views.

X-theory- it is based on classical theory and
Y-theory- it is based on neo-classical theory.
Abraham Maslow: He referred individual needs.
Transcript

1. International Academy of Management &

Entrepreneurship MODULE 1 Introduction of
management
2. MODULE 1 Management theory and practice
definition of management nature, purpose
and functions management: science V/S art. .
Factors responsible for increasing significance
of management Functions of Managers Scientific Approach, System Approach and
Contingency Approach. Managerial roles as
different from Functions of Managers.
Mintzbergs 10 Managerial Roles, Katzs
Managerial Skills, Social responsibility of
managers
3. Definition of Management A Process of
designing and maintaining an environment in
which individuals, working together in groups
to accomplish organizational goals and
objectives.
4. Definition of Management By Griffin: A set
of management functions directed at the
efficient and effective utilization of resources
in the pursuit of organization goals. By
Koontz and Weihrich: Management is the
process of designing and maintaining an
environment in which individuals working

together in groups, efficiently accomplish

selected aims.
5. Nature and purpose As managers, people
carry out managerial functions- planning,
organizing, staffing, leading & controlling.
Mgmt applies to any kind of organization. It
applies to managers at all organization levels.
The aim of all the managers is the same : to
create surplus. Managing is concerned with
productivity: which implies effectiveness and
efficiency
6. FUNCTIONS OF MANAGEMENT Planning
Look ahead and chart out future course of
operation Formulation of Objectives, Policies,
Procedure, Rules, Programmes and Budgets
Organizing Bringing people together and
tying them together in the pursuit of common
objectives. Enumeration of activities,
classification of activities, fitting individuals
into functions, assignment of authority for
action.
7. FUNCTIONS OF MANAGEMENT Directing Act
of guiding, overseeing and leading people.
Motivation, leadership, decision making.
Controlling Laying standards, comparing
actuals and correcting deviation-achieve
objectives according to plans.
8. Top Level Managers Middle Level Managers
First Level Supervisors Controlling TIME SPENT
IN CARRYING OUT MANAGERIAL FUNCTIONS
9. Skills and Management Levels Top Level
Technical Skills Human Skills Conceptual and
Design Skills Supervisory Level

 10. Management: Science V/S Art Art

Practical know how Technical skills
Concrete results Creativity Personalized
nature Science Empirically Derived
Critically tested General principles Cause
and effect relationship Universal applicability
Management as a science provides principles
and as an art helps in tackling situations.
11. Productivity Outputs Productivity =
--------------- (@ time & quality) Inputs
Effectiveness: Achievement of objectives
Efficiency: achievement of objectives with least
amount of resources and time. Peter drucker:
Efficiency is doing things right and
effectiveness is doing the right thing
12. Importance or Significance of Management
Creates better work environment Promotes
team work towards organization Provides
clear cut direction or goal Facilitates
optimum utilization of resources Motivates
personnel Encourage initiative Facilitates
innovation Facilitates expansion and
diversification Quality of workers life
Assist society
13. Approach to Management Scientific
Approach Administrative Approach Some
other approach's are
14. Case Approach: This approach is the
analytical approach. It is all about predicting
the case. The disadvantage in this is that the
situation is not the same all the time.
Managerial roles Approach: This involves the
roles of the manager which needs intelligence
While taking decisions. Situational Approach:

The approach should be situation based. It is a

type of an open system. Here the data is
driven. Total Quality Management: This is a
very important approach where every quality
should be included.
15. Management science Approach: It is also
said as maths approach. This is a scientific kind
of an approach. Decision theory: This is all
about the skills that people have in them.
Based on the decision the approach is taken.
Re-engineering Approach: This is a limited
process. Systems Approach: This includes all
the outside factors. Management process
Approach: It is also known as operational
process. It is one of the human, system and
technical elements.
16. Socio-technical systems Approach: It is all
about psychology. Group Approach: It is all
about team work. How the work is divided in
the team members. Mc-Kinsey 7-S Frame work:
Strategy Structure Staff Skill System Shared
value Style
17. Managerial roles Interpersonal Roles: This
role includes the way you be good to all, the
lead role that an employee take, motivating
people, act as a bridge between the top
management and others, approach to all the
problems. Informational Roles: This role
includes how you receive the information from
inside and outside the organization. The
information should be about the people from
the top management to the employees. Spoke
person role also is included who address the
media. Decision Roles: This role includes

entrepreneurship role who takes an initiative

and a decision. It also includes trying to solve
problem. Negotiator role is also included in it
who is tied up with some other organization.
18. Management and society Operating in a
pluralistic society The technological
environment The ecological environment
Social responsibility of managers Social
responsibility Social responsiveness Role of
the government Ethics in Managing Ethical
theories Utilitarian theory Theory based on
rights Theory of justice Whistle Blowing

Unit ii

Transcript

1. International Academy of Management & Entrepreneurship

MODULE 3 Planning
2. MODULE 3 Planning- Types -Steps- the planning process .
Introduction to Strategic Planning MBO- MBE- Strategies- PoliciesPlanning Premises - Decision Making - Risk and Uncertainty Decision Trees. Introduction to important planning models ( SWOT,
McKinseys 7S Framework, Porters 5 Forces, BCG Matrix, Portfolio
Matrix GE 9 Cell, PEST Analysis, Ansoffs Matrix). Introduction to
Competitive Intelligence.
3. Planning Selecting Mission and objectives and deciding on the
actions to achieve them; it requires decision making and choosing
course action from among alternatives

 4. Objectives Hierarchy of Objective 1. Socio economic purpose

Board 2. Mission Top level 3. Overall objectives Top level 4. More
specific KRAs Middle level 5. Division objectives Middle level 6.
Department or Unit Lower 7. Individual objectives Lower
5. Types of Plans Mission or Purpose Objectives or Goals
Aiming End Strategies Course of action Policies General Guide
Procedures Handling Method Rules Specific actions
Programs Integrated action Budgets Plan in numerical terms
6. Steps in Planning 1. Being aware of opportunities 2. Establishing
Objectives 3. Developing Premises 4. Determining alternative courses
5. Selecting a Course 6. Formulating Derivative plans 7. Quantifying
plans by Budgeting
7. Strategic Planning Process Inputs to the organization Industry
analysis Enterprise Profile Orientation Values and vision
Mission, Objectives and Strategic Intent Development of alternative
strategy Evaluation of Choices TOWS Matrix, Portfolio Matrix
Implementation
8. Management By Objective (MBO) Comprehensive managerial
system that integrates many key managerial activities in a systematic
manner and is consciously directed toward the effective and efficient
achievement of organizational and individual objectives.
9. Decision Making - Process 1. Premising 2. Identifying alternatives
3. Evaluating alternatives 4. Choosing an alternative Rationality
Limited or Bounded Quantitative & Qualitative Factors Marginal
analysis & Cost efectiveness
10. Selecting an alternative Three approaches Experience
Experimentation Research and anlysis
11. Planning Premises It is one of the parameter which tells you
about the facts and figures. It helps you in finding the alternatives,
evaluating them. Analysis is done on those parameter using your
own mind the thinking. It includes the qualitative and quantitative
factors that comes in business model.

12. Introduction to important planning models SWOT McKinseys

7S Framework Porters 5 Forces BCG Matrix Portfolio M Transcript
1. International Academy of Management & Entrepreneurship
MODULE 4 Organisation
2. MODULE 4 Organisation: Formal and Informal - Span of
Management - Organisation Structure, Types of organization structure
- Authority & Responsibility, Delegation methods & Processes
Departmentation -Line and staff relationship - Centralisation Vs.
Decentralisation - Organisational Culture- Cultural Diversity - Multi
Ethnic Workforce - Organising Knowledge resource..
3. Organisation It is identifying and classification of required
activities, grouping of activities to reach the objectives, assignment of
each group to a manager with the authority. Provision of coordination vertically or horizontally.
4. Nature of Organizing 1. Systems of Role Role played by
individual 2. Coordination with other role 3. Organization role
Meaningful to people Verifiable objectives Major duties or
activities involved Authority Rights of people in the role take
decision 4. Organizing Identification and classification of required
activities Grouping of activities to reach objectives Assignment of
each group to a manger with the authority Provision for
Coordination Horizontally or vertically
5. Types of Organization Formal Organization Intentional structure
of roles Informal Organization Network of interpersonal relationship
People associations in informal setup. Organizational division
Department Distinct area, division or branch Authority for Role
Player or Manager
6. Organization Levels and span of Management MD VP- Fin GM-A/
C GM - Finance VP - HR Trg. Mgr Narrow Span Wide Span
7. Types of organization structure It means departmentation. The
organization is divided into different departments. They are:

Enterprise function, Territory/ Geography, Customer group, Product,

Matrix Organization, Strategic business.
8. Authority & Responsibility Delegation of authority includes the
process of assigning work from top organization level to a lower
organization level. It means giving authority to the superior to
supervise the sub-ordinates.
9. Delegation methods & Processes The process of delegation is as
below: a. Allocation of duties b. Delegation of authorities c.
Assignment of responsibilities d. Creation of accountability
10. Organization Structure: Departmentation Departmentation by
Enterprise Function Departmentation by Territory or Geography
Departmentation by Customer Groups Departmentation by Product
Matrix Organization Strategic Business Units
11. Line and staff relationship Staffing is defined as filling, and
keeping filled, positions in the organization structure. Identifying
work force requirement Inventorying the people available
Recruiting, placing, appraising, promoting, career planning, training
and compensating etc.
12. Centralization Vs. Decentralization Centralization includes
decision making and action at high level management.
Decentralization includes smartness, sub-ordinates lead a luxurious
life and have the authority to lead.
13. What is organizational culture? Organizational culture is the
system of shared beliefs and values that develops within an
organization and guides the behavior of its members.
14. Organization Culture and Diversity Principles supporting the
organization structure Grapevine General pattern of behavior
Shared beliefs Values Influence of Leader in the organization
atrix GE 9 Cell PEST Analysis Ansoffs Matrix

QUANTITATIVE, CONTEMPORARY AND EMERGING VIEWS OF MANAGEMENT

Quantitative Approach to Management:
The quantitative approach involves the use of quantitative techniques to improve deci
sion making. This
approach has also been labeled operations research of management science. It include
s applications of
statistics, optimization models, information models, and computer simulations
How Do Today's Managers use the quantitative approach?
The quantitative approach has contributed directly to management decision making in
the areas of planning
and control. For instance, when managers make budgeting, scheduling, quality control,
and similar
decisions, they typically rely
on quantitative techniques. The availability of sophisticated computer software
programs to aid in developing models, equations, and formulas has made the use of qu
antitative techniques

somewhat less intimidating for managers, although they must still be able to interpret th
e results.
The quantitative approach, although important in its own way, has not influenced manag
ement practice as
much as the next one we're going to discussorganizational behaviorfor a number
of reasons. These
include the
fact that many managers are unfamiliar with and intimidated by quantitative tools,
behavioral
problems are more widespread and visible, and it
is easier for most students and managers to relate to real,
day-to-day people problems than to the more abstract activity of
constructing quantitative models.
Branches in the Quantitative Management Viewpoint:
There are three main branches in
the Quantitative Management Viewpoint: management science,
operations management, and management information systems
Management science (or operations research as it has been called) is
an approach aimed at increasing
decision effectiveness through the use of sophisticated mathematical models and statist
ical methods. This is
NOT a term to be used synonymously with either the
term "Scientific Management" described earlier

featuring Taylor and others or "The Science of Management," a

term that usually refers broadly, to a
deliberate, rational approach to management issues.
Operations Management is
the function or field of expertise that is primarily responsible for the
production and delivery of an organization's products and services.
Management information systems (MIS) is the name often given to
the field of management that
focuses on designing and implementing computer-based information systems for use by
management
Contemporary viewpoints:
This school of thought or view point about management includes those major ideas abo
ut managing and
organizations that have emerged since the 1950s. Some of
the ideas, systems theory for example, are rooted
in experiences gained during World War II.
The systems theory approach is based on
the notion that organizations can be visualized as systems of
interrelated parts or subsystems that operate as
a whole in pursuit of common goals. This will be discussed
in more detail in the next session.
Contingency Theory is the view that appropriate managerial action depends on the
particular parameters

of each situation. This approach is in marked contrast to

the earliest universal approach stemming from the
classical management school which suggested that there was one, and only one, best d
ecision for managers
to make which applied in all cases and to all organization, big or little, for profit, or notfor-profit, etc. The
generalized corollary to
the universal approach is that the secret to successful managing was just to keep
looking until that one best solution was "found." "it all depends", would be the slogan of
contingency
theory. The contingency approach applies particularly well in such areas as environment
al factors, strategy,
organizational design, technology, and leadership

1.

Motivates personnel : A good plan provides various financial and non-financial

incentives to both managers and employees. These incentives motivate them to work hard
and achieve the objectives of the organization. Thus, planning through various incentives
helps to motivate the personnel of an organization.

2.

Encourages creativity and innovation : Planning encourages managers to express

and/or use their creativity and innovation. This brings satisfaction to the managers and
success to the organization.

3.

Helps in decision-making : A manager makes many different plans. Then the manager
selects or chooses the best of all available plans. Making a selection or choosing something
means to take a decision. So,decision-making is facilitated by planning.

Definitions of Planning
1.

According to Koontz and O'Donnell, "Planning is deciding in advance what to do,

how to do it, when to do it, and who is to do it. Planning bridges the gap between
where we are and where we want to go. It makes it possible for things to occur which
would not otherwise happen.

2.

According to George R Terry, "Planning is the selecting and relating of facts and
the making and using of assumptions regarding the future in the visualization and
formulation of purposed activities believed necessary to achieve desired results".

3.

According to Philip Kotler, "Planning is deciding in the present what to do in the

future. It is the process whereby companies reconcile their resources with their
objectives and opportunities".