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1-ch BMBS
1-ch BMBS
Management Concepts
1. Leadership: Leadership means “Giving lead to others. A leader is responsible for giving
guidance, direction and motivation to others (followers). Leadership has the broadest spectrum in
the domain of business management. Leaders inspire and motivate their followers towards
organizational goals and objectives.
3. Supervision: Supervision means “looking over” someone else. Supervision involves monitoring
the activities of others to see whether the desired targets have been achieved. Supervision is
performed at front line management. it is the lowest managerial level in organization hierarchy.
Supervisors are expected to do following tasks:
i. Develop staff by empowering them and encouraging them to take
responsibility
ii. Train lower level employees (on-job training)
Leadership
Top level
Management
Management
Middle level
Management
Supervision
Front Line Management
Non-Managerial Employees
CLASSICAL THEORIES OF MANAGEMENT
Roles of managers
How managers perform their tasks efficiently and effectively
Classical theories focus on “management of tasks” rather than “management of people at work”.
Points to remember:
US engineer Father of Scientific Management
Studies relationship between people and the tasks they perform
Known for time and motion study
Focused on dividing tasks into smaller management units and work specialization
Carried out experiments at shoveling coal a steel work industry in US
Introduced work specialization with shoveling operations
Four principles of scientific management by Taylor:
1. There should be science of work for every task based on analysis of work
methods (one best way of doing a task)
2. Careful selection of workers (right person on the right job)
3. Scientifically train and develop workers to achieve best results and efficiency
4. Equal division of work between management and workers and management
should work closely with workers. Reward the workers on the basis of work
they perform
Criticism on Scientific Management:
Scientific Management results in dull, repetitive and monotonous work
Workers get de-motivated and demoralized
Low work efficiency of workers
Workers might lose interest in their jobs
Points to remember:
Tasks of Management:
1. Planning
2. Organizing
3. Command (now replaced with leadership)
4. Coordinating
5. Controlling (monitoring performance)
Points to remember:
14 Principles of Management (ADDRESS, CUUES, ISO):
1. Division of Work – focusing on work specialization
2. Authority – manager must have authority to give orders
3. Discipline – Some rules and regulations must be defined
4. Unity of command – there should be one immediate supervisor
5. Unity of direction – goals must be common and there should be one plan to
be followed
6. Subordination of individual interest – organizational interest is more
important than an individual’s interest
7. Remunerations – employees should be given fair remunerations and rewards
based on performance
8. Centralization – decision making should be at one point in organization
9. Scalar chain – employees should know there position in organizational
hierarchy
10. Order – workplace should be clean, tidy and safe
11. Equity – fair treatment should be practiced by the managers towards all staff
12. Stability of tenure – managers should strive for low turnover rate
13. Initiative – employees should be given necessary level of freedom at work
14. Esprit De Corps – organization should promote team spirit and motivate
people
3. Lyndall Urwick – Principles of Organizations:
Points to remember:
10 Principles of Organizations (BA-ACCORDSS):
1. Objective – clear purpose of existence must be undertaken
2. Specialization – breaking tasks into smaller doable parts focusing on a single
function
3. Coordination – facilitation, unity of effort
4. Authority – supreme authority must rest somewhere. A clear line of hierarchy
must be established
5. Responsibility – subordinates must be responsible to superiors
6. Definition – job descriptions, duties and roles must be clearly defined
7. Correspondence – responsibility and authority must correspond
8. Span of control – no person should supervise more than 5 individuals
9. Balance – various units of organization must be kept in balance
10. Continuity – re-organization is a continuous process. Doing it again all over
4. Max Weber (1864 – 1920) and Bureaucracy:
Points to remember:
German sociologist
Studied growth in the number, size and power of large bureaucracies
Suggested that bureaucracy provides with a structure in which human activity is
rationalized and coordinated
Government organizations are largely bureaucratic in nature
Operates with clear and impartial rules
Six characteristics of ideal bureaucracy (WHIPED):
1. Hierarchy of authority: from top management down to workers at the
bottom. Offices (management positions) should be ranked in hierarchical
order, with information flowing up the chain of command and instructions
and directions passing down the chain.
2. Impersonality and Impartiality: There should be a clear statement of duties,
responsibilities, standardized procedures and expected behavior.
3. Written rules of conduct
4. Promotion based on achievement
5. Division of work and work specialization
6. Efficiency in operations
Three types of legitimate Authority:
1. Traditional – based on heredity of power in royal families with leadership
passing in a family
2. Rational legal – form of authority associated with bureaucracy. Based on rules
and regulations and derived from formal management position in the
organization
3. Charismatic – special personal qualities that inspire others to do what the
individuals asks. Short-lived and unstable type of power
Criticism to bureaucracy:
1. Red tape
2. Pen pushing
3. Soul destroying work
5. Rosemary Stewart on Bureaucracy:
Points to remember:
Modern UK writer on Management Theory
Four main features of Bureaucracy:
o Specialization
o Hierarchy of Authority
o A system of rules
o Impersonal
Points to remember:
Reasons for growth of bureaucracy:
o Growing size of organizations – Large organizations need bureaucratic
structure to work effectively
o Greater complexity of work – complexity makes it necessary to have
specialization of tasks in organizations
o Scientific Management – rational way of organization of work and formal
procedures of getting work done
o Demand for equality of treatment – bureaucracy provides impersonality and
impartiality
Points to remember:
Founder of human relations movement in management theory
Involved in set of experiments at Hawthorne works in Illinois (USA)
Original aim of experiment was a scientific management study focused on studying
the impact the changes in work environment on individual’s productivity
Study involved six workers with varying working conditions such as lighting, rest
periods, length of the working day and incentives
Even in worse working conditions, the productivity continue to rise
Mayo explained the reasons towards this are:
o Motivation and commitment of the individuals in the experiment
o Relationship between employees and management
Workers develop social relationships at work
Arguments related to the positive effect of motivation on productivity:
o Work has a social value. Worker’s attitude towards work is important
o Productivity is affected by self esteem
o Work satisfaction lies in recognitions, sense of belonging and security
o Motivation and productivity is affected by the relationship between
management and workers
o Lack of attention towards human is a major weakness of early theories of
management
Other / Modern Theories of Management
Points to remember:
Five Areas or categories of Management:
o Setting Objectives - Managers set objectives for the organization, and decide
on targets for the achievement of those objectives, which they then
communicate to other people in the organization.
o Organizing work - Managers organize the work that is done, by dividing it into
activities and jobs. They integrate the jobs into a formal organization structure
and select and appoint people to do the jobs.
o Motivating and Communicating - Managers need to motivate their
employees. They must also communicate with their employees so that they
can do their work.
o Measuring - Managers measure performance, perhaps by comparing it
against a target or yardstick (benchmark). They analyze and assess
performance, and communicate their findings, both to their superiors and
their subordinates.
o Developing People: Managers need to develop their employees and also
themselves. Drucker wrote that the manager ‘brings out what is in their
employees or he stifles them. He strengthens their integrity or he corrupts
them.’
Managing commercial business is different from managing an organization because
business managers are mainly responsible for economic performance of the business.
Three aspects of responsibilities of managers in business:
o Managing the Business – innovation, creativity and marketing. Putting
customer first.
o Managing the managers – giving targets for achievements and monitoring
performance of the managers
o Managing workers and their work – motivate staff, communicate with teams,
set objectives for the team and dividing tasks into smaller measureable units.
2. Rosabeth Moss Kanter:
Points to remember:
Inefficiencies of bureaucracy
Traditional bureaucratic organizations have become unacceptably slow
Hierarchal change of command means slow decision making
Increased dynamics, growing competition, new technology have made bureaucracies
inefficient
toInremember:
Points her book Teaching elephants to dance (1989) she argued that bureaucratic
organizations need to
Rebirth and success ofchange according
business to ever
organization changing
depend on: environment.
o Innovation – developing new products, services and operating methods
o Entrepreneurship – taking business risks
o Participative management - encouraging all employees to participate in
making decisions about work
3. Henri Mintzberg:
Points to remember:
Roles of managers
o Interpersonal roles
Figurehead
Leader
Liaison
o Informational roles
Monitor
Spokesperson
Disseminator
o Decisional roles
Disturbance handler
Resource allocator
Negotiator
Initiator
Henri Mintzberg also contributed towards organizational structure, that will be
discussed in 3rd chapter.
Points to remember:
Points to remember:
2. Game Theory:
Points to remember:
3. Queuing Theory:
Points to remember:
4. Simulation:
Points to remember:
Points to remember:
Maximize profits
Minimize cost
Critical path analysis
Supply chain management
Scheduling
Routing
Project planning
Transportation decision
Management Skills:
Points to remember:
Points to remember:
4. Communication:
Points to remember:
Used to:
o Coordinate
o Share plans
o Communication goals, objectives
o Generate ideas
o Managing relationships
o Gather information
o Directions are: horizontal, vertical (upward, downward) and diagonal
5. Information gathering:
Points to remember:
Listening
o Seeking feedback
o Forecasting working relationships
Observations
Interviews
Questionnaires
Points to remember:
Coaching:
o Short term relations
o Knowledge enhancement
o Training the employees
o Plan and execute systematic learning and development program
o Feedback on performance
Mentoring:
o Long term relationships
o Career sponsorships
o Personal relationship building
o Encouraging the people
o Nurturing the mentee
o Responding to personal needs