Management

An Introduction

1
 Definitions of management
1} As an art of getting things done:
Mary Parker Follet: “Management is the art of
getting things done through others.”
Harold Koontz: “The art of getting things done
through and with people in formally organized
groups. It is the art of creating an environment
in which people can perform as individuals
and yet cooperate towards attainment of
group goals.”

2
 2.)Management as a process

“Management is the process of effective utilization

of human and material resources to achieve
enterprise objectives.”
George Terry: “Management is a distinct process
consisting of activities of planning, organizing,
actuating and controlling, performed to determine
and accomplish stated objectives with the use of
human beings and other resources.”

3
3.)Management as a group of managers

‘Management is a body or group of people

which performs certain managerial functions
for the accomplishment of predetermined
goals.’

These people are individually known as

managers.

4
 4.)Management as a discipline

“Management is a multi disciplinary

discipline/field of study. It has drawn heavily
from anthropology, psychology, sociology etc.
and includes management concepts,
principles, techniques and skills.”

5
 Nature of management
1) Goal oriented: The success of management
is measured by the extent to which the
organizational goals are achieved.
2) Focuses on effectiveness and efficiency
3) Continuous process: consisting of functions
such as planning ,organizing, staffing,
directing and controlling.

6
4) Integrative force: the essence of Mgt. is
integration of human and other resources
to achieve the desired objectives.
5) Intangible force: it's presence is evidenced
by the result of it’s efforts-orderliness,
informed employees, right spirit and
adequate work output.
6) A science and an art.
7) Results through others: Managers must
have the necessary ability and skills to get
work accomplished through the efforts of
others. 7
8) System of authority: Management as a team of
managers represent a system of authority, a
hierarchy of command and control.
9) Multidisciplinary subject
10) Universal application: The principles and
techniques of management are equally applicable
in all kinds of organizations all around the world.

8
 Managerial skills
• A manager is one who directs the activities of
other persons and undertakes the responsibility
for achievement of objectives through such
efforts. Successful management seems to rest on
three basic developable skills: technical, human
and conceptual. The relative importance of these
three skills varies with the level of managerial
responsibility.

9
• Technical Skill
The technical skill implies an understanding of
and proficiency in a specific kind of activity,
particularly one involving methods, processes,
procedures, or techniques; it involves
specialised knowledge, analytical ability within
that specialty, and proficiency in the use of the
tools and techniques of the specific discipline.
Training programmes largely do a good job in
developing this skill.

10
• Human Skill
This refers to the ability to work with, understand and
motivate other people; the way the individual
perceives (and recognises the perceptions of) his
superiors, equals, and subordinates, and the way he
behaves subsequently. The person with highly
developed human skills is aware of his own attitudes,
assumptions, and beliefs about other individuals and
groups; he is able to see the usefulness and
limitations of these feelings. He is sufficiently
sensitive to the needs and motivations of others in
his organisation so that he can judge the possible
reactions to, and outcomes of, the various courses of
action he may undertake.

11
• Conceptual Skill
This skill involves the ability to see the
enterprise as a whole; it includes recognising
how the various functions of the organisation
depend on one another, and how changes in
any one part affect all the others; and it
extends to visualising the relationship of the
individual business to the industry, the
community, and the political, social and
economic forces of the nation as a whole.

12
Managerial Roles/Responsibilities
• Described by Mintzberg.
– A role is a set of specific tasks a person performs because
of the position he/she holds.
• Roles are directed inside as well as outside the
organization.
• There are 3 broad role categories:
1. Interpersonal
2. Informational
3. Decisional

13
 Interpersonal Roles
• Roles managers assume to coordinate and
interact with employees and provide
direction to the organization.
– Figurehead role: Acting as a symbolic Head.
– Leader role: train, counsel, mentor and
encourage high employee performance.
– Liaison role: link and coordinate people
inside and outside the organization to help
achieve goals.

14
 Informational Roles
• Associated with the tasks needed to obtain
and transmit information for management of
the organization.
– Monitor role: analyzes information from both the
internal and external environment.
– Disseminator: This is where you communicate
potentially useful information to your colleagues
and your team.
– Spokesperson: Managers represent and speak for
their organization. In this role, you're responsible
for transmitting information about your
organization and its goals to the people outside it.
15
 Decisional Roles
• Associated with the methods managers use to plan
strategy and utilize resources to achieve goals.
– Entrepreneur role: deciding upon new projects or
programs to initiate and invest.
– Disturbance handler role: assume responsibility
for handling an unexpected event or crisis.
– Resource allocator role: assign resources between
functions and divisions, set budgets of lower
managers.
– Negotiator role: seeks to negotiate solutions
between other managers, unions, customers, or
shareholders.
16
17
 Evolution Of Management
Thought

❖Classical Theory
❖Neo-classical theory (Human relations approach)
❖Behavioral Theory
❖Systems approach

18
 Classical Theory
• Also known as the traditional theory, it
signifies the beginning of the systematic
study of management.
• It incorporates three viewpoints:
1) Scientific Management by F.W. Taylor
2) Administrative management by Henry Fayol
3) Ideal Bureaucracy by Max Weber

19
 Features Of Classical Theory
1)It lays emphasis on the Formal organization.
2)The role of human element in organization is
ignored.
3)Impact of external environment on the
organizational working is ignored i.e.
organizations are treated as closed systems.

20
4)It believes that the efficiency of the organization
can be increased by making each individual
efficient.
5)It is based on the centralization of authority.
6)It is assumed that there is no conflict between the
individuals and the organization. In case of any
conflict, the interests of the organization should
prevail.
7)Money is considered to be the main motivator as
people are supposed to be ‘Rational Economic
persons’.
21
 Contributions/Merits of classical theory

• It highlighted the universal nature of

management.
• It provides a scientific basis for management
practice.
• It focuses on financial incentives as motivators.
• It gives supreme importance to the organization
and its objectives

22
 Criticism of classical theory
• Narrow view of organization/Assumption of
closed system
• Neglecting the human assets.
• Economic rewards as main motivators/no focus
on non-monetary rewards.
• Lack of universality of principles.
• Excessive emphasis on rules and regulations
(which limit individual initiative.)

23
 Scientific Management approach
(F.W. Taylor)

✔ According to Taylor," Scientific Management is

the substitution of exact scientific investigations
and knowledge for the old individual judgment
or opinion (rule of thumb) in all matters relating
to the work done in the shop.”

24
 Principles of scientific management
• Replacement of old rule of thumb method.
• Scientific selection and training of workers.
• Cooperation between labour and
management.
• Maximum output.
• Equal division of responsibility between the
managers and the workers.

25
 Techniques of scientific management
1)Scientific task setting- to determine a fair day’s work.
2)Work study:
• Method study- conducted to know the best method of
doing a particular job.
• Motion Study- to eliminate useless
motions/movements.
• Time study or work measurement- to determine the
precise time required for each element of the work. It
helps in fixing the standard time required to do a
particular job.
• Fatigue study- helps in reducing fatigue (physical or
mental) among the workers.

26
3)Planning the task and separating planning from
execution.
4)Standardisation
5)Scientific selection and training
6)Differential piece-wage plan (to attract highly
efficient workers)
7)Specialisation

27
 Mental Revolution
• The aim of scientific management is to change
the attitudes of workers and management
towards each other. Taylor called it ‘Mental
Revolution’.
• It has three aspects:
1) All out efforts for increase in production.
2) Creation of the spirit of mutual trust and
confidence.
3) Inculcating and developing the scientific attitude
towards problems.
28
 • The ‘Mental Revolution’ laid emphasis on the
following:
✔ Science, not rule of thumb
✔ Harmony in group action, rather than discord.
✔ Maximum output in place of restricted output.
✔ Scientific selection, training and placement of
workers.
✔ Development of all workers to the fullest extent
possible for the organization’s prosperity.

29
 Administrative Management
Henri Fayol
• To be effective, Management should be
based on the following 14 principles:
1) Division of work (resulting in specialization)
2) Commensurate authority and responsibility.
3) Discipline
4) Unity of command
5) Unity of direction

30
6)Subordination of Individual interest to general
interest
7)Remuneration
8)Centralization
9)Scalar chain
10)Order
11)Equity
12)Stability of tenure
13)Initiative
14)Espirit de corps (Union is strength)

31
 Bureaucracy
Max Weber
Weber said that there are three types of legitimate
authority:
1) Rational-legal authority-Obedience is owed to a
legally established position or rank within the
hierarchy of an organization.
2) Traditional Authority- Resulting due to belonging to a
certain class or occupying a traditionally recognized
position(eg. A royal family)
3) Charismatic authority- Based on the followers’ belief
that a person has some special power or appeal.

32
Weber’s theory of bureaucracy recognizes
rational-legal authority as the most
important type in organizations. Under
traditional authority, leaders are not
chosen for their competence and
charismatic theory is too emotional and
irrational.

33
 Characteristics/Features of bureaucracy

• A bureaucratic organization emphasizes on

the following:
✔ Division of work (leading to specialization)
✔ Hierarchy of positions
✔ Rules and regulations
✔ Impersonal conduct (no room for emotions
and sentiments)

34
✔ Staffing (contractual relationship between the
employee and the employer)
✔ Technical Competence (basis of selection and
promotions)
✔ Official Records-Decisions and activities of the
organization are formally recorded and
preserved safely for future reference which is
made possible by an extensive filing system.

35
 Neo- Classical Theory
(Human relations approach)
❖ The Neo-classicists focused on the human
aspect of industry unlike the classical
theorists.

❖ It emphasized on organization as a social

system and the human factor as the most
important element within it.

36
 The human relations approach
says that:
1)The business organization is a social
system.
2)The behavior of an individual is
dominated by his informal group.
3)Economic incentives are not the sole
motivators. Social and psychological
needs must be satisfied to improve the
level of motivation.

37
4)It is ultimately cooperative attitude and not
mere command which yields result.
5)Management must aim at developing social
and leadership skills in addition to Technical
skills.
6)Management must take interest in the
welfare of workers.
7)Morale and productivity go hand in hand in
an organization.
38
 Factors affecting human relations
1)Individual- Each individual is unique and his
behaviour is affected by his emotions,
sentiments, values and attitude. Management
should give due consideration to their
economic, social and psychological needs.
2)Work group-It has an important role in
determining the attitude and performance of
individual workers.

39
3)Work environment-There should be a positive work
environment where organizational goals are
achieved through employee satisfaction.

4)Leader-The leader must ensure full and effective

utilization of organizational resources to achieve
organizational goals and must be able to adjust to
various personalities and situations.
The essence of the human relations philosophy is
to cultivate and develop an environment where
the employees both as individuals and in groups
are willing to contribute their best to the
organizational goals.

40
 Hawthorne studies
• Experiments were conducted by Elton Mayo
and team in 1927 at the Hawthorne plant of
Western electric company, Chicago.
• The following set of studies were conducted:
1) Illumination experiment.
2) Relay assembly room experiment
3) Bank wiring observation room experiment.
4) Mass interview programme.

41
 Contributions of human relations
approach/Hawthorne studies

✔ Focus on Social system

✔ Effect of Social environment
✔ Group dynamics
✔ Informal leader
✔ Necessity of two way communication.
✔ Importance of non- economic Reward.

42
 Behavioral Science Approach
✔ Its an extension and improvement over human
relations approach.
✔ In this, the knowledge drawn from Behavioral
sciences namely, Psychology, sociology and
anthropology is applied to explain and predict
human behavior (focuses on OB)
✔ This approach emphasizes on increasing
productivity through motivation and leadership.

43
 • This approach says that:
1) An organization is a socio-technical system.
2) Individuals act and react differently in various
situation depending on the difference in their
attitudes, perceptions and value systems.
3) People have their own needs and goals which may
differ from organizational goals. Attempts should
be made to achieve fusion between the two.
4) There is a wide range of factors influencing
inter-personal and group behaviour of people in
organizations.

44
 Broad features of Behavioral science
approach:
1)It is an Interdisciplinary approach and
integrates the knowledge drawn from
different disciplines for studying human
behavior.
2)It not only focuses on the cause and effect
relationship but also prescribes ways and
means to solve organizational problems.

45
3)It suggests reconciliation of the individual
and organizational goals for better
organizational climate and effectiveness.
4)It focuses attention on people from
humanistic point of view.

46
 Systems Approach to management
It’s based on the generalization that an
organization is a system and its components
are interrelated and interdependent.
System Defined
A system consists of a number of
interdependent parts functioning as a whole
for some purpose.
A system is composed of related and
dependent elements which when in
interaction form a unitary whole.

47
 Key Concepts:
Integration is the key variable in systems
analysis. It is defined as the
interrelatedness of the many parts within
the whole.
The concept of ‘Wholism’ is central to
the systems approach: No part of the
system can be accurately analysed apart
from the whole system and the whole
system cannot be accurately perceived
without understanding all its parts.

48
All analysis starts with the existence of the whole. The
parts and their interrelationships should then evolve to
best suit the purpose of the whole.
Possible modifications in each part should be weighed in
relation to possible effects on every other part.
Each part has some role to perform so that the whole can
accomplish its purpose.
Every system has a boundary: These are more precisely
defined in case of physical and biological systems than in
case of social systems.

49
 Law of synergy: The output of a system is
always more than the combined output of
its parts.

50
 A system can be either open or closed.
• Closed system is one that is not influenced by,
and does not interact with, its environments.
Such systems are mostly mechanical and have
predetermined motions or activities that must
be performed regardless of the environment.
• Open system is one that is influenced by, and is
continually interacting with, its environment.

51
Contributions of systems approach

• It examines interrelationship and

interdependency among organizational parts
and concentrates on the working of various
subsystems so as to ensure the survival and
growth of the system.

52
• It stresses the dynamic, multi-dimensional and
and adaptive nature of organizations and
acknowledges environmental influences which
were ignored by the classical theory.
• It represents a balanced thinking and stresses
on an integrated view rather than analyzing
problems in isolation.

53
 Business as a system
✔ A business enterprise is an important system which
is created to satisfy human wants through the
production and distribution of goods and services.

✔ Like any system it gets the inputs from it’s

environment and supplies its output to it.

✔ Business system gets feedback or information from

its environment or suprasystem, according to which
it modifies it’s functioning.

54
 Contingency/ Situational Approach

The contingency view seeks to

understand the interrelationships within
and among the subsystems as well as
between the organization and its
environment and to define the pattern of
relationships.

55
• Environmental change and uncertainty, work
technology, and the size of a company are all
identified as environmental factors impacting the
effectiveness of different organizational forms.
According to the contingency perspective, stable
environments suggest mechanistic structures that
emphasize centralization, formalization,
standardization, and specialization to achieve
efficiency and consistency. Certainty and
predictability permit the use of policies, rules, and
procedures to guide decision making for routine
tasks and problems. Unstable environments suggest
organic structures which emphasize decentralization
to achieve flexibility and adaptability56.
• This approach is based on the major premise that
there is no one best way to manage or handle any
management problem. The application of
management principles and practices should be
contingent upon the existing circumstances.
• Management should match or ‘fit’ its approach to
the requirements of a particular situation.
• Since management’s success depends upon it’s
ability to cope with its environment, it should
sharpen its diagnostic skills so as to anticipate and
comprehend the environmental changes.
57