MANAGEMENT PROCESS AND

ORGANISATIONAL BEHAVIOUR

MBA- I SEMESTER

Dr.K.V.Nagaraj
Assistant Professor
Department of Management Studies
Gayatri Vidya Parishad College for Degree and
PG Courses (A),
Rushikonda, Visakhapatnam.
UNIT – 1

Syllabus
1. Management - Concept,
2. Evolution of Management
thought
3. Contributions of
• F.W.Taylor
• Henry Fayol
• Max Weber
• Bernard
• Elton Mayo
4. Management Functions,
5. Roles and Skills of Managers
 WHY TO STUDY MANAGEMENT?
• Increasing role of large and complex
organisations in the society;

• Attracted both practitioners and

academicians to find out the answer of the
question:

‘How these organisations can be more

effective’
 INTRODUCTION
• Management is a vital aspect of the economic life
of man, which is an organised group activity.
• A central directing and controlling agency is
indispensable for a business concern.
• The productive resources - material, labour,
capital etc. are entrusted to the organising skill,
administrative ability and enterprising initiative of
the management.
• Thus, management provides leadership to a
business enterprise.
• Without able managers and effective managerial
leadership the resources of production remain
merely resources and never become production.
 CONCEPT OF MANAGEMENT
• Management as a Discipline

• Management as a Group of People

• Management as a Process
– Management is a social process

– Management is an integrating process

– Management is a continuous process

 DEFINITIONS OF MANAGEMENT
• The term ‘management’ has been used in different
senses. Sometimes it refers to the process of planning,
organizing, staffing, directing, coordinating and
controlling, at other times it is used to describe it as a
function of managing people. It is also referred to as a
body of knowledge, a practice and discipline. Since
existence of different approaches, historically four
orientations have been adopted in defining management
process.
a) Production or efficiency oriented
b) Decision-oriented
c) People- oriented
d) Function-oriented
PRODUCTION OR EFFICIENCY ORIENTED

• F.W.Taylor has defined management as “the art of knowing what

you want to do and then seeing that it is done in the best and

cheapest way”.

DECISION-ORIENTED

• Stanley Vance has defined management “is simply the process of

decision making and control over the actions of human beings

for the expressed purpose of attainting pre-determined goals”

PEOPLE- ORIENTED

• Koontz has defined Management “is the art of getting

things done through and with people in formally
organised groups”.

FUNCTION-ORIENTED

• McFarland defined Management is “a process involving

planning, organising, staffing, directing, and controlling human

efforts to achieve stated objectives in an organisation”.

 FEATURES OF MANAGEMENT

1. Organised Activities

2. Existence of Objectives

3. Relationship Among Resources

4. Working with and Through People

5. Decision Making
 NATURE OF MANAGEMENT
1. Management aims at reaping rich results in economic terms;
2. Management also implies skill and experience in getting things
done through people;
3. Management is a process;
4. Management is a universal activity;
5. Management is a science as well as an art;
6. Management is a profession;
7. Management is an endeavour to achieve pre-determined
objectives;
8. Management is a group activity;
9. Management is a system of authority;
10. Management involves decision-making;

11. Management implies good leadership;

12. Management is dynamic and not static;

13. Management draws ideas and concepts from various

disciplines;

14. Management is goal oriented;

15. Different levels of management;

16. Need of organisation;

17. Management need not be owners;

18. Management is intangible.

 SCOPE & OBJECTIVES OF MANAGEMENT
OBJECTIVES OF
SCOPE OF MANAGEMENT MANAGEMENT
a) Multi-disciplinary; a) Getting Maximum Results

b) Dynamic Nature of with Minimum Efforts;

Principles; b) Increasing the Efficiency of

factors of Production;
c) Relative, Not Absolute
c) Maximum Prosperity for
Principles.
Employer & Employees;
d) Human betterment &
Social Justice.
 IMPORTANCE OF MANAGEMENT
1. Achieving Goals and objectives
2. Optimum Utilization of Resources
3. Efficient Running of Business organisation
4. Sound Organization Structure
5. Smooth (Undisruptive) Functioning of Organisation
6. Image, Reputation and Goodwill in Market
7. Successful Implementing Change
8. Management Role for Conflict and Stress
9. Better Industrial Relations
10. Others (Development of Human Resources, Fulfilment of social
obligations, Improving standard of living, Development of nation)
 RBR

MANAGEMENT: SCIENCE OR ART

• Specification of exact nature of management as
science or art or both is necessary to specify the
process of learning of management.
• Learning of science involves the assimilation of
principles while learning of art involves
continuous practice.
• The conflict is a result of the fact that the earlier
captains/ managers of the Industry have used
intuition, hunches, commonsense, and
experience in managing organizations.
 MANAGEMENT AS A SCIENCE
• Science is a systematic body of knowledge based
on certain principles capable of general
applications.
• Characteristics:
Systematic body of knowledge
Impersonal results
Clarity of concepts
Empirically tested knowledge
Universal applicability
Cause and Effect relationship
Internal consistency among concepts, Hypotheses,
Principles and Theories
 MANAGEMENT OF ART
• An art contains the practical use of skills and
knowledge to achieve the results.
• Characteristics:
Practical know how
Need of practice or experience
Element of creativity
Result orientation
Personalised skills
Qualities and Qualifications.
 MANAGEMENT AS A PROFESSION
• Profession means an occupation based on
specialised knowledge skills, and training. The use of
such knowledge is not for self-satisfaction, but for a
larger interest of society for a fee, and success of
which cannot be measured by money alone.
• Characteristics:
Existence of specialised knowledge
Service Motive
Need of formal education and training
Personal factors
Professional association
Code of conduct
Continuous development
 ARGUMENTS FAVOURING MANGEMENT AS
PROFESSION IN INDIA
1. Role of AIMA;
2. Growth of business enterprises;
3. LPG policies;
4. Growth of education and training facilities;
5. Role of Indian business tycoons;
6. Changing mentality of people;
7. Changing government attitude;
8. Competition and complexities;
9. Improved performance;
10. Increased attraction of small and medium units; and
11. Extended applicability’
 ARGUMENTS AGANIST MANGEMENT AS
PROFESSION IN INDIA
1. Inadequate role of professional association,
bodies, and agencies;
2. Poverty, backwardness, Illiteracy, and
lethargic attitude of people;
3. Uncertainty of outcomes;
4. Negative role of trade unions;
5. Spiritual Norms and country culture;
6. Too much diversity if Indian population;
7. One-sided business goals and poor social
support;
8. Small sized operations and poor resource
capacity;
9. Changing Government policies;
10. Management style of public sector
organisations;
11. Existence of large number of family-based
and traditionally managed firms;
12. Exceptionally performance of traditionally
managed firms;
13. Impact of ownership on business
management;
14. Lack of well-defined and well-developed
business standards.
MANAGEMENT AND ADMINISTRATION
• At the initial level of development of
management thought, no distinction was made
between management and administration and
both the terms were used interchangeably.
• In 1923, the terminological conflict between the
two terms was raised by Oliver Sheldon in his
book titled ‘The Philosophy of Management’.
• He emphasized administration as decision-
making function and management as execution
function.
• After that, this distinction between the two terms
was emphasized by many and the terminological
conflict proceeded further.
 THREE APPROACHES

1. Administration is above management

(Oliver Sheldon, William Spiegel and Ordway Tead)

2. Administration is a part of management

(McFarland, Kimball, Florence, Haimann)

3. Administration and management are

the same. (Henry Fayol, Chester Barnard, Terry, Allen,
Koontnz and O’Donnell, etc)
1. ADMINISTRATION IS ABOVE
MANAGEMENT
 LEVELS OF MANAGEMENT
• Levels in management refers to the
classification of managerial functions on the
basis of their relative importance.
• Most of the authors classify managerial levels
into three categories- Top, Middle and Lower.
• Different position holders at different levels
will differ in terms of roles, status, functions,
authority, responsibilities etc.
• Constitution and Designations within them
vary with the organisation.
 FACTORS INFLUENCING LEVELS OF
MANAGEMENT
• Levels in the organisation depends on the
following factors:
Ownership Structure;
Management Philosophy;
Nature and Size of Business;
Dispersion of activities, and
Resources Capacity
 FUNCTIONS OF MANAGEMENT
S.No Names of Contributors (or
Writers)
1 Henry Fayol
2 Luther Gulick
3 R.C.Davis
4 E.F.L. Brech
5 Koontz and O’Donnell
6 Dr. George R. Terry
7 Lyndall Urwick
8 Peter. F. Drucker
9 Modern Views ( Including
Indian Experts)
Functions or Steps In the Management Process
Planning, Organising, Commanding, Coordinating, and
Controlling
POSDCORB- Planning, Organising, Staffing, Directing,
Coordinating, Reporting, Budgeting.
Planning, Organising, and Controlling.
Planning, Organising, Motivating, Coordinating and
Controlling.
Planning, Organising, Staffing, Leading and Controlling.
Planning, Organising, Actuating and Controlling.
Planning, Organising, Commanding, Coordinating,
Communicating, Forecasting and Investigating.
Objective Setting, Decision-making, Organising, and
motivating.
Planning, Organising, Staffing, Directing, and Controlling.
 MANAGERIAL ROLES
Mintzberg published his Ten Management Roles in three sets of
functions that a manager has to perform in his book, Mintzberg on
Management: Inside our Strange World of Organizations," in
1990. "
 FACTORS RESPONSIBLE FOR EMERGENCE
OF VARIETY OF ORIENTATIONS
COMPLEXITY IN MANAGING
GROWING COMPETITION BUSINESS
• Technological Innovations • Increasing size of business
• Growing technological organisations
obsolescence • High degree of division of
• Increasing Capital labour
Investment • Increased government
• Freedom at national and regulations
international markets • Organised union activities
• Pressure from various
conflicting interest groups
to meet their demands
TAYLOR & SCIENTIFIC MANAGEMENT
Frederick Winslow Taylor was an economist and
American industrial engineer, who is considered the
father of scientific administration, a forerunner
of industrial engineering and recognized for promoting
the scientific organization of work.
Taylor was born on March 20, 1856, in Philadelphia.
He Joined in Midvale steel company in USA as a worker
and later become the supervisor.
 During this period he continued his studies and
completed this M.E
Later he joined in Bethlehem Steel Company.
In 1909, he published ”The Principles of Scientific
Management.”
 His contributions can be described as two parts:
 Elements and Tools of Scientific Management

 Principles of Scientific Management

(Differential Piece Rate System)
• He followed after his father’s engineering profession. He
enrolled and graduated from a mining academy in 1860 and
took up a mining engineering job in a French mining
company.
• By 1888, Fayol became the director of the company which he
later turned around to become the country’s biggest
industrial manufacturer for iron and steel with over 10,000
staff in 1900. Fayol directed the affairs of this mining
company until 1918.
• As a sequel to his wealth of experience and series of research
endeavors', in 1916 Henri Fayol published the ‘14 principles of
management’ which later appeared in his book
Administration Industrielle et Générale in 1917.
• However, the book was not made available outside France
and was not translated until 1929. Its English version was
published in 1949 in the United States of America.
SCALAR CHAIN AND GANG PLANK
 FEATURES OF BUREAUCRACY

• Administrative Class

• Hierarchy

• Division of Work

• Official Rules

• Impersonal Relationships

• Official Record

BENEFITS OF BUREAUCRACY
• It leads to, consistency in
employee behaviour.
• The duties and
responsibilities of each job
are clearly defined
• The selection process and
promotion procedures are
based on merit and
expertise
• The division of labour
assists workers in becoming
experts in their jobs.
• The enterprise does not
suffer when some persons
leave it.
DISADVANTAGES OF
BUREAUCRACY
• This system suffers from
too much of red tape and
paper work.
• The employees do not
develop belongingness to
the organisation.
• The excessive reliance on
rules and regulations and
adherence to these policies
inhibit initiative and
growth of the employees.
• The employees become so
used to the system, they
resist to any change
 PROBLEMS IN BUREAUCRACY
1. Invalidity of Bureaucratic Assumptions;

2. Goal Displacement;

3. Unintended Consequences;

4. Inhuman Organisation;

5. Closed-system Perspective.
CHESTER BARNARD was the pioneer of
systems approach to management and
was recognised as major contributor to
system approach of management.
He explained this approach to
management in his book “The
Functions of the Executive” (1938).
 He studied economics at Harvard
University.
Barnard joined the American
Telephone and Telegraph
Company (now AT&T) in 1909. In 1927,
he became president of the New Jersey
Bell Telephone Company.
 CONTRIBUTIONS OF BARNARD
• Concept of Organisation;
• Formal and Informal Organisation;
• Elements of organisation:
 A system of departmentation;
 A system effective and efficient incentives that induce people to group
actions;
 A system of power to make members accept the members decisions; and
 A system of logical decision making.
• Acceptance of Authority;
• Functions of Executives:
 Maintaining organisational communication;
 Obtaining essential services from individuals; and
 Formulation and definition of organisational purpose.
• Motivation (Financial and Non-financial);
• Executive Effectiveness; and
• Organisational Equilibrium.
THE HAWTHORNE
EXPERIMENTS
• PLACE& TIME
Hawthorne Plant of GE from 1924-1932

• ROOT CAUSE
Dissatisfaction among employees leading to low productivity

• INVESTIGATING TEAM
NATIONAL ACADEMY OF SCIENCES

ELTON MAYO (Psychologist),

WHITEHEAD & ROETHLISBERGER (Sociologist) and

WILLIAM DICKSON (Company Representative)

 PHASES OF EXPERIMENTATION
• Experiments are conducted in Four
subsequent phases:
1. ILLUMINATION EXPERIMENTS (1924-27)
2. RELAY ASSEMBLY TEST ROOM EXPERIMENTS
(1927-28)
3. MASS INTERVIEWING PROGRAM (1928-30)
4. BANK WIRING OBSERVATION ROOM
EXPERIMENTS (1931-32)
• Aimed at determining the effects of different job conditions on
group productivity.
• During experiment a number of changes were introduced in
sequence.
• The duration of each change is four to twelve weeks.
• After every change introduced girls were consulted to and were
given opportunity to express their views about the change and
about the behaviour of the supervisor.
Conclusion:
• The positive impact on productivity was not due to positive changes in
physical factors, but due to the girl’s changed attitude towards work,
workgroup and supervisor.
• Researcher concluded that the socio - psychological factors such as feeling
of being important, recognition, attention and participation, held the key of
higher Productivity
• 14 male workers were selected and were employed in
the bank (instrument) wiring room.
• Hourly wages rate for personnel was based on average
output of each employee, while bonus was determined
on the basis of group output.
• Unlike the relay room experiments this study involved no
experimental changes once the study started.
• Hypothesis was “To earn more wage, the employee
would produce more, and in order to take benefits of
group bonus, they would help each other to produce
more’.
• However, this hypothesis did not valid. Unlike the former
experiments, productivity was reduced, output was
restricted.
 REASONS FOR RESTICTING OUTPUT
• Fear of Being Laid- off
• Fear of Raising Standards
• Protecting Slower Workers
• Satisfaction on Part of Management
Conclusion:

Social ostracism was more effective in gaining compliance with

the informal group norm than money and security were in
attaining the scientifically derived management norm.
The study concluded that informal relationship was the main
factor affecting/ determining human behaviour.
 IMPLICATIONS OF HAWTHORNE
EXPERIMENTS
• Novelty of the situation
• Leadership
• Impact of Social factors
• Impact of Informal Groups
• Group Size
• Impact of Supervision
• Need for Good Communication
• Conflict and Cooperation
CRITICISM OF HAWTHORNE EXPERIMENTS
1. It lacks scientific validity.
2. Behavior of the workers during the experiments was not
natural.
3. It is pro-management and anti-union.
4. It gave little attention the formal relation while putting
greater emphasis on the informal relations.
5. This theory is not aware of the economic dimension and
neglected the nature of work.
6. It could not explore the multi dimensional phenomenon of
human motivation.
7. Marxists says that it is a new technique to exploit workers as
it de-emphasized economic factors.
8. It is over-concerned with happiness.
9. It does not recognize the conflict as a creative force.
10. It ignored the environmental factors of workers attitudes.
 KEY DIFFERENCES BETWEEN AMERICIAN
AND JAPANESE MANAGEMENT STYLE
1. Period of employment
2. Preference of Nationality
3. Gender Choice
4. Evaluation and Promotion
5. Decision-making Pattern
6. Role of Top Management
7. Recruitment Time
8. Initial Pay
9. Quality Orientation
10. Trade Unions
11. Emphasis
12. Courtesy and Humanity
13. Production Limit and Priority
14. Condition of Senior Citizen.
1. Characteristics and attitudes of workers;

2. Management attitudes and policies toward

workers;

3. Competitive focus of management and

management policies; and

4. Management accounting and control