Unit-I (12 Hours)

Introduction to Management: Meaning and Concepts of Management ,Management Function or Process,

Management

Discipline as Art or Science, distinguish in between Management and Administration, Management as a profession
.Managerial Skills, Roles of a Manager, Types /Levels of Management. Management principles and Practices.
Management Thought and its Evolutionary contribution ,Early Classical Approaches- Scientific Management Thoughts by
F.W Taylor, Contribution and limitation of Scientific Management, Neo-Classical Approaches – Human Relations
Movement. Behavioral Approach-Douglas, McGregor, Abraham Maslow Theory, Modern Approaches - Quantitative and
Qualitative Approach, System Approach, Social and Personal Approach.

• Discipline as Art or Science

Management as a Science:

Science is an organized body of knowledge based on proper findings and exact principles. It develops a relationship
between cause and effect and its findings apply in all the situations. The basic difference between an art and science is that
art implies knowing how the application whereas science is concerned with knowing why.

The essential features of Science are as follows:

1. It is a systematic body of knowledge that uses scientific methods for observations.

2. The principles of Science establish a cause and effect relationship between various factors.
3. The principles are exact and have universal applicability without any limitation.
4. The validity of scientific principles can be verified and they provide a reliable basis for predicting future events.
5. The principles of science are evolved on the basis of continued observation.

• Management as an Art

Art is often regarded as the systematic application of skills or knowledge in effecting accomplishment of results. It
represents the methods or ways of doing specific things and indicates how an objective is to be achieved

The essential features of an Art are as follows:

1. It involves use of personal skills and knowledge in solving many complicated problems to achieve the enterprise
objectives.
2. An art is a practical knowledge. It is concerned with application of knowledge. Management does not merely mean
the knowledge of principles of management rather it is the application of this knowledge which makes it effective
and useful.
3. Management is a way to achieve desired results and these ways and methods, efficiency and effectiveness is
attained through regular practice. One cannot be a good manager unless he regularly practices the art of decision
making.
4. Every art has an element of creativity and in this sense also management is one of the most creative art as is
concerned with getting work done through and with others by motivating them to work and coordinating their
activities.

• Management and Administration:

ADMINISTRATION TOP MANAGEMENT

MIDDLE MANAGEMENT

MANAGEMENT LOWER MANAGEMENT

Different authors on the subject have expressed conflicting opinion. Many experts make no distinction between
management and administration while others, consider them as two separate functions. These points of view are explained
as follows:

1. Administration and Management are separate functions:

Writers like Sheldon, Spriegel etc., maintain that administration is one step ahead of management. Administration
predetermines the specific goals and lays down the broad areas within which those goals are to be accomplished.
Administration is a determinative policy making function while management is an executive function which is primarily
concerned with carrying out the broad policies laid down by the administration.

2. Administration and Management are synonymous:

According to Newman, Koontz, Dale, Mc Farland there is no difference between these two terms and administration and
management are synonymous. All organizations require planning, organizing, staffing, directing and controlling in order to
function properly. A manager or for that matter an administrator has to perform both thinking and doing functions.

Keith Davis, in an attempt to resolve the theoretical controversy suggested a viable alternative that is labeling top
management functions as administrative management and low level functions of management as operative management.
Even this classification appears to be superfluous. As Drucker rightly pointed out that planning and doing are separate
components of the same operation, any attempt to divorce planning from doing is bound to be ineffective. From practical
point of view, it is no use to draw the curtain between management and administration and observe a strict categorization.
The general consensus that has emerged over the years confers equal status to these concepts.

Management as a profession

FUNCTIONS OF MANAGERS

Managers perform certain functions and certain roles. Though the terms function and role are used interchangeably, there
is technical difference between these two terms. Functions of a manager include the assigned tasks according to the
authority level as well according to the job description of the position of the manager. On the other hand roles indicate
what a manager is expected to do as a person of conscientiousness. Let us learn some important functions of managers.

Main functions of managers include following activities:

• Planning (including creating vision, mission, goal setting, setting objectives)

• Organising
• Staffing
• Directing
• Communicating
• Decision making
• Controlling.

Planning : The planning function includes those activities, which lead to the definition of ends and the determination of
appropriate means to achieve the defined ends. Planning is the process by which a manager anticipates the future and
discovers alternative courses of action open to him.

Vision refers to creating and articulating a realistic, credible, attractive position of the future of an organization or
organizational unit that grows out of and improves upon the present situation. Mission refers to the broad purpose that the
society expects the organization to serve. Mission statements are broad and value-driven.

Goals refer to a future state or condition which contributes to the fulfillment of the mission of the organization; when they
are realized. The goal is relatively more concrete than mission yet less concrete than objectives.

Objectives are derived from goals and are ordinary short-run, specific milestones towards goals.
Organising : Organising is the process by which the structure and allocation of jobs are determined. The organising
function includes all managerial activities, which are undertaken to translate the required activities of plans into a structure
of tasks and authority. The organising function involves four sub-functions:

- Defining the nature and content of each job in the organisation;

- Determining the bases for grouping the jobs together
- Deciding the size of the group
- Delegating authority to the assigned manager.

Staffing : It is the process by which managers select, train, promote, and retire subordinates. Staffing is concerned with
entire human resource planning activities done by managers.

Directing : It is the process by which actual performance of subordinates is guided toward common goals. Supervising is
one aspect of this function at lower levels of management.

Communicating : It is the process by which ideas are transmitted to others for the purpose of achieving a desired result.

Decision-making : It is the process by which a course of action is consciously chosen from available alternatives for the
purpose of achieving a desired result.

Controlling : It is the process that measures current performance and guides it toward some predetermined goal. The
controlling function includes activities, which managers undertake to assure that actual outcomes are consistent with
planned outcomes. Three basic conditions must exist to undertake control:

- Standards
- Information
- Corrective action.

As explained earlier, functions of a manager directly emerge from the authority of his position as well as from the job
description of the position held by the manager.

ROLES OF MANAGERS

Henry Mintzberg has identified ten roles (clubbed under three broad categories) of managers. The roles of managers are as
follow:

Interpersonal Roles

• Leading
• Liaison
• Symbol/Figurehead

In their interpersonal roles, managers act as figurehead, lead, and interact with members of the organisation, within the
department or outside the department. Now let us understand the three roles: leading, liaison, and symbol/figurehead.

Leading is one of the important roles of a manager. A manager supervises a number of persons reporting to him/her. The
manager is responsible for motivating and directing the subordinates. Through the role of leading, a manager helps
subordinates to visualize the plan of action, and helps them to achieve the result through committed performance.

Liaison is another role of a manager. Liaison means maintaining a network of interaction with outsiders who matter. For
example a manager heading a production unit need to maintain relationship with external members of the board, regulating
authorities, government officials, police force, civil authorities etc. Through this role a manager establishes contact with
those who matter in managing the activities at hand.

A manager is the symbolic head of a firm, or of an unit, or of a department. You are aware of the role of the head of a
family. In the same way, a manager symbolizes the role of figurehead because he/she has to perform a number of duties of
legal or social nature.
Informational Roles

• Monitoring
• Sharing information
• Spokesperson

In their informational roles, managers seek information from others, provide information to others, and provide information
to people outside the organisation, in the capacity of representative of the organisation. Now let us understand the three
roles: monitoring, sharing information, and spokesperson.

A manager acts as nerve center for receiving all the external and internal information. Through the role of monitoring, a
manager receives information. The manager utilizes such information appropriately.

Once a manager has gathered information, he/she needs to share information among internal employees for proper
execution of work. Through meeting, e-mail, circular, notice, office order etc. a manager acts as disseminator of
information particularly to subordinates.

As a spokesperson, a manager is authorized to share information about the organisation to outsiders. The manager may
share information with outsiders about plans, strategies, and future direction of the organisation. The sharing of
information may be through conference, meeting the press, board meeting, interview etc.

Decisional Roles

• Taking initiative
• Handling disagreement
• Allocating resources
• Negotiating

In their decisional roles, managers take proactive actions, sort out differences in opinion amicably, allocate resources to
various departments in optimum way, and negotiate implementation of new projects. Now let us understand the four roles:
taking initiative, handling disagreement, allocating resources, and negotiating.

A manager is required to take initiative and should lead from the front. A manager analyzes the future opportunities in the
business, evaluates alternative opportunities, analyzes internal strength and weaknesses of the organisation, and also
calculates risks before implementing a new idea. In a way a manager need to explore business opportunities through
entrepreneurial skills.

Always going is not smooth in an organisation. At times due to various dissatisfactions among the subordinates, conflicts
may arise. A manager is responsible for handling conflict and disturbances in a way that would reestablish the confidence
of subordinates as well as good productive culture. Disagreements are handled through periodical meetings, review
sessions, collective bargaining, grievance handling machinery etc.

Manager is custodian of organisational resource. He/she has to allocate resources to various departments in optimum way.
For allocating resources the manager has to do budgeting, scheduling of tasks, authorization and sanctioning of resource,
and approving of significant organisational decisions.

Negotiating is also an important role of a manager. Sometime manager has to negotiate with internal employees on the
matter related to rights, benefits, and sharing of revenue. This is done through internal bargaining. Sometime negotiation is
tripartite including, the management, the employees, and the appropriate government (Central or the State Government).
Negotiation is also done on matter related to contract assignment, purchase of material etc. A manager plays important role
in these activities.

TYPES/LEVELS OF MANAGEMENT

The term “Levels of Management’ refers to a line of demarcation between various managerial positions in an organization.
The number of levels in management increases when the size of the business and work force increases and vice versa. The
level of management determines a chain of command, the amount of authority & status enjoyed by any managerial
position. The levels of management can be classified in three broad categories:

Top level / Administrative level

Middle level / Executory

Low level / Supervisory / Operative / First-line managers

Managers at all these levels perform different functions. The role of managers at all the three levels is discussed below:

LEVELS OF MANAGEMENT

Top Level of Management

It consists of board of directors, chief executive or managing director. The top management is the ultimate source of
authority and it manages goals and policies for an enterprise. It devotes more time on planning and coordinating functions.

The role of the top management can be summarized as follows -

Top management lays down the objectives and broad policies of the enterprise.

• It issues necessary instructions for preparation of department budgets, procedures, schedules etc.
• It prepares strategic plans & policies for the enterprise.
• It appoints the executive for middle level i.e. departmental managers.
• It controls & coordinates the activities of all the departments.
• It is also responsible for maintaining a contact with the outside world.
• It provides guidance and direction.
• The top management is also responsible towards the shareholders for the performance of the enterprise.

Middle Level of Management

The branch managers and departmental managers constitute middle level. They are responsible to the top management for
the functioning of their department. They devote more time to organizational and directional functions. In small
organization, there is only one layer of middle level of management but in big enterprises, there may be senior and junior
middle level management. Their role can be emphasized as -

• They execute the plans of the organization in accordance with the policies and directives of the top management.
• They make plans for the sub-units of the organization.
• They participate in employment & training of lower level management.
• They interpret and explain policies from top level management to lower level.
• They are responsible for coordinating the activities within the division or department.
• It also sends important reports and other important data to top level management.
• They evaluate performance of junior managers.
• They are also responsible for inspiring lower level managers towards better performance.

Lower Level of Management

Lower level is also known as supervisory / operative level of management. It consists of supervisors, foreman, section
officers, superintendent etc. According to R.C. Davis, “Supervisory management refers to those executives whose work has
to be largely with personal oversight and direction of operative employees”. In other words, they are concerned with
direction and controlling function of management. Their activities include -

• Assigning of jobs and tasks to various workers.

• They guide and instruct workers for day to day activities.
• They are responsible for the quality as well as quantity of production.
 • They are also entrusted with the responsibility of maintaining good relation in the organization.
• They communicate workers problems, suggestions, and recommendatory appeals etc to the higher level and higher
level goals and objectives to the workers.
• They help to solve the grievances of the workers.
• They supervise & guide the sub-ordinates.
• They are responsible for providing training to the workers.
• They arrange necessary materials, machines, tools etc for getting the things done.
• They prepare periodical reports about the performance of the workers.
• They ensure discipline in the enterprise.
• They motivate workers.
• They are the image builders of the enterprise because they are in direct contact with the workers.

Management Thought and its Evolutionary contribution

Major Classification of Management Approaches Major Contributors

Scientific Management Frederick W. Taylor, Frank and Lillian
Classical Approach Gilbreth and Henry Gantt
Bureaucratic Management Max Weber
Administrative Management Henri Fayol
Group Influence Mary Parker Follet
Hawthorne Studies Elton Mayo
Behavioral Approach Maslow’s Needs Theory Abraham Maslow
Theory X and Theory Y Douglas McGregor
Model I versus Model II values Chris Argyris
Management Science
Quantitative Approach Operations Management
Management Information System
The System’s Theory
Modern Approaches Contingency Theory
Emerging approaches: Theory Z and William Ouchi
Quality Management

I. Classical Approach:
1. Scientific Management:
a. Frederick Winslow Taylor (1856-1915)

F.W.Taylor is considered “father of scientific management”, wrote “The Principles of Scientific Management” in
1911. An engineer and inventor, Taylor first began to experiment with new managerial concepts in 1878 while
employed at the Midvale Steel Co. At Midvale, he rose from labourer to Chief Engineer wethin 6 yrs. Which gave him
the opportunity to tackle a grave issue faced by the organization- the soldiering problem. Taylor felt that the soldiering
problem could be eliminated by developing a science of management by using scientific methods to determine how a
task should be done instead of depending on the previous experiences of the concerned worker. Two major managerial
practices that emerged from Taylor’s approach to management are
(i) Piece-rate incentive system
(ii) Time-and-motion Study

b. Frank and Lillian Gilbreth

Frank and Lillian Gilbreth made numerous contributions to the concept of scientific management. Frank Gilbreth
(1868-1924) is considered the “father of motion study”. Lillian Gilbreth (1878- 1972) was associated with the research
pertaining to motion studies. Motion study involves finding out the best sequence and minimum numbers of motions
needed to complete a task. They were mainly involved in exploring new ways of eliminating unnecessary motions and
reducing work fatigue. Frank Gilbreth also developed the micro motion study.
c. Henry Laurence Gantt (1961- 1919)
He is best remembered for his work on the task-and-bonus system and the Gantt chart.

2. Bureaucratic Management: Max Weber (1864-1920)

The term “bureaucracy” is derived from the German buro, meaning office. According to Weber, “a bureaucracy is a
highly structured, formalized and impersonal organization. In other words, it is a formal organization structure with a
set of rules and regulations. Characteristics of an Ideal Bureaucracy includes work specialization and Division of
Labor, Abstract rules and regulations, Impersonality of managers and hierarchy of Organization Structure.

3. Administrative Management: Henri Fayol (1841- 1925)

Fayol believed that “with scientific forecasting and proper methods of management, satisfactory results were
inevitable.” According to Fayol, the business operations of an organization could be divided into six activities:
(i)Technical Activities, (ii) Commercial Activities, (iii) Financial Activities; (iv) Security Activities; (v) Accounting
Activities; (vi) Managerial Activities.
Fayol outlined 14 principles of management:
i. Division of Work
ii. Authority and Responsibility
iii. Discipline
iv. Unity of Command
v. Unity of Direction
vi. Subordination of the individual interest to the general interest
vii. Remuneration
viii. Centralization
ix. Scalar Chain
x. Order
xi. Equity
xii. Stability of tenure of personnel
xiii. Initiative
xiv. Espirit de corps

II. Behavioral Approach

1. Group Influence: Mary Parker Follet (1868- 1933)

Mary Parker Follet made significant contributions to the field of human resource management. Though, Follet
worked during the scientific era, she understood the significance of human element in organizations. She gave
much more importance to the functioning of groups in the work place than did classical theorists. Follet argued that
organizational participants were influenced by the groups within which they worked. Follet recognized the critical
role managers play in bringing about the kind of constructive change that enables organizations to function. She
suggested that organizations function on the principle of “power with” rather than “power over”. Power, according
to Follet, was the ability to influence and bring about a change. She argued that power should not be based on
hierarchy; instead, it should be based on cooperation and should involve both superiors and subordinates. In other
words, she advocated ‘power sharing’.She also advocated the concept of integration, which involves finding a
solution acceptable to all group members. She believed that managers should be responsible for keeping a group
together and ensuring the organizational objectives are achieved through group interaction.

2. Hawthorne Studies: Elton Mayo (1880-1949)

Elton Mayo, the “Father of Human Relations Approach,” led the team which conducted a study at Western
Electric’s Hawthorne Plant between 1927 and 1933 to evaluate the attitudes and psychological reactions of
worker’s in on-the-job situations. The reasearchers and scholars associated with the Hawthorne experiments were
Elton Mayo, Fritz Roethlisberger, T.N.Whitehead and William Dickson. The study started in 1924 by Western
 Electric’s industrial engineers to examine the impact of illumination levels on workers productivity. Eventually,
the study was extended through the early 1930’s. The experiments were conducted in four phases:

a.
Illumination experiments
b.
Relay assembly test room experiments
c.
Interview phase
d.
Bank wiring observation room experiments.
The Hawthorne Experiments laid the foundation for the Human Relations Movement, made significant
contributions like:
i. The group is the key factor in job performance.
ii. Perceived meaning and importance of the work determined output.
iii. Workplace culture sets its own production standards.
3. Maslow’s Needs Theory: Abraham H. Maslow( 1908-1970)

In 1943, Abraham H.Maslow, a Brandeis University psychologist, theorized that people were motivated by a
hierarchy of needs. His theory rested on three assumptions. First, all of us have needs which are never completely
fulfilled. Second, through our actions we try to fulfill our unsatisfied needs. Third, human needs occur in the
following hierarchical manner: (i) physiological needs; (ii) safety or security needs; (iii) belongingness or social
needs; (iv) esteem or status needs; (v) self actualization or self-fulfillment needs. According to Maslow, onceneeds
at a specific level have been satisfied, they no longer act as motivators of behavior. Then the individual strives to
fulfill needs at the next level.

4. Theory X and Theory Y: Douglas McGregor(1906- 1964)

Douglas McGregor developed two assumptions about human behavior, which he labeled “Theory X” and “Theory Y”.
According to McGregor, these two theories reflect the two extreme sets of beliefs that different managers have about their
workers. Theory X presents an essentially negative view of people. Theory X managers assume that workers are lazy, have
little ambition, dislike work, want to avoid responsibility and need to be closely directed to make them work effectively.
Theory Y is more positive and presumes that workers can be creative and innovative, are willing to take responsibility, can
exercise self-control and can enjoy their work. The generally have higher-level needs which have not been satisfied by the
job.

5. Model I versus Model II values: Chris Argyris

Chris Argyris, a Yale University professor, made significant contributions to the behavioral school of management
thought. The major contributions of this behavioral scientist are the maturity-immaturity theory, the integration of
individual and organizational goals, and Model I and Model II organization analysis.

Maturity-immaturity theory: people progress from a stage of immaturity and dependence to a stage of maturity and
independence.

Model I and Model II: Based on the basis of the employees’ set of values. The employees in Model I organization
are manipulative and pitted against each other. They are not willing to take risks. Workers in Model II,are open to
learning and less manipulative. Hence, according to Argyris, managers should strive to create a Model II
environment.

III. Quantitative Approach

1. Management Science

Stresses the use of mathematical models and statistical methods for decision making. It visualizes management as a
logical entity, the action of which can be expressed in terms of mathematical symbols, relationships and measurement
data. Various mathematical tools like the waiting line theory or queuing theory, linear programming, the program
evaluation review technique (PETR), the critical pah method (CPM), the decision theory etc have increased the
effectiveness of managerial decision-making.
 2. Operations Management

Operations management is an applied form of management science. It deals with the effective management of the
production process and the timely delivery of an organization’s products and services. Operations management is
concerned with (i) inventory management, (ii) work scheduling, (iii) production planning, (iv) facilities location and
design, and (v) quality assurance. The tools used by operations managers are forecasting, inventory analysis, materials
requirement planning systems, networking models, statistical quality control methods, and project planning and control
techniques.

3. Management Information System

Management Information System focuses on designing and implementing computer-based information systems for
business organizations. In simple terms, the MIS converts raw data into information and provides the needed information
to each manager at the right time, in the needed form.

IV. Modern Approaches

1. The System’s Theory

Theorists are of the view that organization cannot exist in isolation and that managers cannot function effectively
without considering external environmental factors. According to this theory, an organization system has four major
components: inputs, transformation processes, output and feedback. Inputs- money, materials, men, machines and
informational sources are required to produce goods and services. Transformation processes or throughputs-
managerial and technical abilities- are used to convert inputs into outputs. Outputs are the products, services, profits
and other results produced by the organization. Feedback refers to information about the outcomes and the position of
the organization relative to the environment it operates in.

2. Contingency Theory

This is also known as the situational theory. According to this theory, ther is no one best way to manage all situations.
In other words, there is no one best way to manage.

3. Emerging approaches: Theory Z : William Ouchi

William Ouchi, a management expert, conducted research on both American and Japanese management approaches
and outlined a new theory called Theory Z. This theory combines the positive aspects of both American and Japanese
management styles. The Theory Z approach involves providing job security to employees to ensure their loyalty and
long term association with the company. This theory shows concern for its employees’ well-being and lays emphasis
on their training and development.

Quality Management: Quality management is a management approach that directs the efforts of management towards
bringing about continuous improvement in product and service quality to achieve higher levels of customer satisfaction and
build customer loyalty.