GLOBAL INSTITUTE OF TECHNOLOGY, JAIPUR

DEPARTMENT OF ELECTRICAL ENGINEERING

INDUSTRIAL ECONOMICS & MANAGEMENT 7EE9A

EXPERIMENT NO: 5
OBJECT: Study about management principle, management functions,
responsibilities of management to society, development of thought.
THEORY:
Management involves identifying the mission, objective, procedures, rules and
manipulation of the human capital of an enterprise to contribute to the success of the
enterprise. This implies effective communication: an enterprise environment (as
opposed to a physical or mechanical mechanism) implies human motivation and
implies some sort of successful progress or system outcome.

Definitions of Management:

• According to Henri Fayol, "to manage is to forecast and to plan, to organise, to

command, to co-ordinate and to control."
• Fredmund Malik defines it as "the transformation of resources into utility."
• Management included as one of the factors of production – along with machines,
materials and money.
• Ghislain Deslandes defines it as “a vulnerable force, under pressure to achieve
results and endowed with the triple power of constraint, imitation and
imagination, operating on subjective, interpersonal, institutional and
environmental levels”.

MANAGEMENT FUNCTION:

• Planning: Deciding what needs to happen in the future and generating plans for
action (deciding in advance).
• Organizing (or staffing): Making sure the human and nonhuman resources are
put into place.
• Coordinating: Creating a structure through which an organization's goals can be
accomplished.
• Commanding (or leading): Determining what must be done in a situation and
getting people to do it.

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 GLOBAL INSTITUTE OF TECHNOLOGY, JAIPUR
DEPARTMENT OF ELECTRICAL ENGINEERING
INDUSTRIAL ECONOMICS & MANAGEMENT 7EE9A

• Controlling: Checking progress against plans.

RESPONSIBILITIES OF MANAGEMENT TO SOCIETY:

1. Co-ordination of Different Factors:
• In large organizations, hundreds or thousands of people work together under
the same roof in an organized manner to achieve the organization’s goal.
Organizations depend on group efforts.
• No individual can do much for the organization with his own efforts alone.
People at work in an organization assemble or produce certain goods or
services according to the direction of the management.
• The management coordinates the efforts of all factors of production. It needs
to guide and direct people.

2. Achievement of Objectives:
• Each organization has its some objectives, the achievement of which calls for
organized efforts in a planned manner.
• Management becomes essential for directing and unifying the group efforts
towards a common objective. It integrates the various activities to get the
objectives.

3. Make of Proper organization Climate:

• The good working climate is the must for people to perform their task and
responsibilities enthusiastically and economically.
• Managers create proper organizational climate by establishing an effective
reward system, grievance handling system, problem-solving system, etc.

4. Increasing Productivity:
• The main objective of an organization is to maximize its profits by reducing
cost factor in the production.

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 GLOBAL INSTITUTE OF TECHNOLOGY, JAIPUR
DEPARTMENT OF ELECTRICAL ENGINEERING
INDUSTRIAL ECONOMICS & MANAGEMENT 7EE9A

• Management is the activating agent for getting the work done through its
personal. The management must see that people are motivated to work so that
productivity increase.

5. Facing Competition:
• Today production is done on a large scale basis to cope with increasing
demand for goods and services at the national and international level.
Accordingly, the size of the market has also enlarged.
• This has increased the competition in the market. Increasing competition
requires efficient and effective handling of men and materials. Management
must mastermind its affairs to produce quality goods at a low cost. This calls
for better management.

6. Modern Scientific and Technical Inventions:

• The new development in methods and machines have made the production
process more Complex resulting in increasing importance of Machines and
methods which has reduced the importance of men in the production process.
• As complications have developed in managing the affairs, an efficient
management is needed to meet the situation effectively.

7. Creating of Good Organisational Structure:

• People in an enterprise must be properly organized into well constituted
purposeful groups in order to create cooperation and coordination in their
thinking and activities.

8. Exercising a Positive Influence:

• Management should provide dynamic leadership which combines the
productive resources into a fruitful organization.
• It adopts its self to exciting opportunities, restrictions, and presses. It exercises
a positive influence to make the future events favorable to the Enterprise.

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 GLOBAL INSTITUTE OF TECHNOLOGY, JAIPUR
DEPARTMENT OF ELECTRICAL ENGINEERING
INDUSTRIAL ECONOMICS & MANAGEMENT 7EE9A

9. Adding to Real Value: Management acts as a creative and invigorating

force in the organization.
• It creates a result that is bigger than the sum total of efforts put in the by the
group. It adds a real plus value to the operation of any enterprise by enlisting
a little extra value out of each person. It provides new ideas, imaginations, and
visions to the group working.
• It integrates its efforts in such a manner as to account for better results, by
focusing on strong points, neutralizing weak points, overcoming difficulties
and establishing Team Spirit. Social welfare depends upon the quality of
Management prevailing in an organization.

10. Necessary to all Organisation:

• Not only the business organizations but the non-business organization like
educational, religious, charitable, and other social organizations also need
management. The government at all levels nice management as much as other
organizations need it.
• Management is found everywhere as the distinct, separate and dominant
activity. It is the prime institutions in an organization and its role cannot be
undermined.

DEVELOPMENT OF MANAGEMENT THOUGHT

Scientific Management:

Scientific management has several major principles. First, it calls for the application
of the scientific method to work in order to determine the best method for
accomplishing each task. Second, scientific management suggests that workers
should be scientifically selected based on their qualifications and trained to perform
their jobs in the optimal manner. Third, scientific management advocates genuine
cooperation between workers and management based on mutual self-interest.
Finally, scientific management suggests that management should take complete
responsibility for planning the work and that workers' primary responsibility should

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 GLOBAL INSTITUTE OF TECHNOLOGY, JAIPUR
DEPARTMENT OF ELECTRICAL ENGINEERING
INDUSTRIAL ECONOMICS & MANAGEMENT 7EE9A

be implementing management's plans. Other important characteristics of scientific

management include the scientific development of difficult but fair performance
standards and the implementation of a pay-for-performance incentive plan based on
work.

Administrative Management:
Administrative management focuses on the management process and principles of
management. In contrast to scientific management, which deals largely with jobs
and work at the individual level of analysis, administrative management provides a
more general theory of management. Henri Fayol is the major contributor to this
school of management thought.
Fayol was a management practitioner who brought his experience to bear on the
subject of management functions and principles. He argued that management was a
universal process consisting of functions, which he termed planning, organizing,
commanding, coordinating, and controlling. Fayol also presented fourteen principles
of management, which included maxims related to the division of work, authority
and responsibility, unity of command and direction, centralization, subordinate
initiative, and team spirit.
Although administrative management has been criticized as being rigid and
inflexible and the validity of the functional approach to management has been
questioned, this school of thought still influences management theory and practice.
Human Relations:
According to the human relations school, the manager should possess skills for
diagnosing the causes of human behavior at work, interpersonal communication, and
motivating and leading workers. The focus became satisfying worker needs. If
worker needs were satisfied, wisdom held, the workers would in turn be more
productive
Behavioral Science:
Behavioral science and the study of organizational behavior emerged in the 1950s
and 1960s. The behavioral science school was a natural progression of the human

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 GLOBAL INSTITUTE OF TECHNOLOGY, JAIPUR
DEPARTMENT OF ELECTRICAL ENGINEERING
INDUSTRIAL ECONOMICS & MANAGEMENT 7EE9A

relations movement. It focused on applying conceptual and analytical tools to the

problem of understanding and predicting behavior in the workplace. However, the
study of behavioral science and organizational behavior was also a result of criticism
of the human relations approach as simplistic and manipulative in its assumptions
about the relationship between worker attitudes and productivity.
The behavioral science school has contributed to the study of management through
its focus on personality, attitudes, values, motivation, group behavior, leadership etc.

Management Science:
Management science (also called operations research) uses mathematical and
statistical approaches to solve management problems. It developed during World
War II as strategists tried to apply scientific knowledge and methods to the complex
problems of war. Industry began to apply management science after the war. George
Dantzig developed linear programming, an algebraic method to determine the
optimal allocation of scarce resources. Other tools used in industry include inventory
control theory, goal programming, queuing models, and simulation.

Production and Operations Management:

This school focuses on the operation and control of the production process that
transforms resources into finished goods and services. It has its roots in scientific
management but became an identifiable area of management study after World War
II. It uses many of the tools of management science. Operations management
emphasizes productivity and quality of both manufacturing and service
organizations.
Major areas of study within operations management include capacity planning,
facilities location, facilities layout, materials requirement planning, scheduling,
purchasing and inventory control, quality control, computer integrated
manufacturing, just-in-time inventory systems, and flexible manufacturing systems.

RESULT:-We have successfully studied about management principle, management

functions, responsibilities of management to society, development of thought.

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 GLOBAL INSTITUTE OF TECHNOLOGY, JAIPUR
DEPARTMENT OF ELECTRICAL ENGINEERING
INDUSTRIAL ECONOMICS & MANAGEMENT 7EE9A

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