Unit 1 : Introduction to Managers and Management

a) Concept, definition and principles of management.

b) Role of a manager (what do managers do?)
•Interpersonal : Leadership and liaison with other units
•Communication: monitoring, Information, disseminating, pleading
•Decision making: conflict management, resource allocation and negotiation
•Entrepreneurship: Initiating and designing of changes or innovation.

c) Functions of management
• planning
• organizing
• staffing
• directing
• controlling and evaluating
• Budgeting

d) Management roles
e) Management skills
f) History of Management
 Management
• Management is a universal phenomenon.
It is a very popular and widely used term.
• All organizations - business, political,
cultural or social are involved in
management because it is the
management which helps and directs the
various efforts towards a definite
purpose.
• According to Harold Koontz,
“Management is an art of getting things
done through and with the people in
formally organized groups. It is an art of
creating an environment in which people
can perform and individuals and can co-
operate towards attainment of group
goals”.
• According to F.W. Taylor, “Management
is an art of knowing what to do, when to
do and see that it is done in the best and
cheapest way”.
• Management as an
activity
• Management as a
process
• Management as a
discipline
• Management is art as
well as science
• Management as
Group
 Importance of Management:
• Management plays important role in
shaping the culture of an organisation.
The performance and survival of business
organisation depends on its
management.
Peter F. Drucker, in this regard remarks:
• “Management is the specific organ of the
modern institution. It is the organ on the
performance of which the performance
and the survival of the institution
depends.”
• According to Drucker, management is the
dynamic life-giving element in every
organization. It is the activating force
that gets things done through people.
Without management, an organization is
merely a collection of men, machines,
money and material. In its absence, the
resources of production remain
resources and never become production.
Levels of Management/ Hierarchy of Managers

Most organizations
have three
management level
• Low-level
managers;
• Middle-level
managers; and
• Top-level
managers.
Management roles/ What managers do?
• Roles are the
responsibilities or
tasks to perform in
particular position
or level.
• All managers
working at different
level of organization
need to perform
various roles
according to their
job responsibilities
and authority.
Interpersonal Role
• Figurehead
• Leader role
• Liaison role

Information Role
• Monitor role
• Disseminator role
• Spokesperson role

Decisional role
• Negotiator role
• Resource allocator
• Entrepreneur role
1. Interpersonal roles:
• Interpersonal roles deals with relationship among different
personalities and departments.
• Such roles are expected maintaining good human as well as
organizational relations within and outside the organizations.
• Managers should lead, direct, supervise and motivate
subordinates as well as whole employees.

i. Figurehead role:
• This role deals with ceremonial and symbolic activities like
attending parties and ceremonial functions, greetings and
receiving guests, visiting other organizations etc.
• Managers need to participate in different occasion like seminar,
meeting, conference and delegation within and outside
organization with representing the organization as figurehead.
• They need to provide signatures to ensure the agreements of
organizations.
ii. Leader role:
• It includes leadership, directing, supervision, coordinating, motivating
and controlling activities to be conducted in organization for effective
and efficient mobilization of resources for organizational purpose.
• Under this role, managers lead the various units, departments, and
whole organizations. Managers prepare plan for activities and
resources required to accomplish the organizational goals.

ii. Liaison role:

• Liaison is the role of connecting two or more levels and personalities.
• Under this role, managers maintain public relation of organization.
• This role of manager involves in activities for maintaining, relationship
with community.
• Managers are the connecting chain between organization and
community.
• They create such relationship through interacting with them, providing
facilities for community advancements, and bearing social
responsibility.
• Under liaison role, managers link different levels and department of
organization to make smooth flow of activities within the organization.
2. Information role:
• These roles are directly related with obtaining and transmitting the necessary
information to different departments, units, individuals, and outside agencies.
• All managers should collect, refine, and distribute required information inside
organization for flawless activities of organization and outside the
organizations for meeting legal and social obligations.
• Informational roles are characterized by three activities as monitor,
disseminator and spokesperson

 Monitor role:
• This role deals with the assessment and watching over activities taking place in
and around the organization.
• Main aim of this role is to collect and scan the information required to the
organization.
• This facilitates management to make decision regarding work-in-progress in
the organization.
• Managers not only collecting information from organization but also collect
and scan the information from outside organization.
• Organization makes strategy on the basis of information obtained in this way.
 Disseminator role:
• It includes transmission or distribution of required and
appropriate information within the organization through
different channels.
• Managers need to organize the information and supply right
information at the right time to right person inside the
organization for effective and efficient execution of plans and
policies.
• Likewise, organization needs to provide required information
to government agencies, social institutions and researchers
whenever they require through managers.

 Spokesperson role:
• Managers need to display organizational information to
outsiders like media, government agencies as a part of legal
obligation.
• This means as a spokesperson, managers need to transmit
organizational information outside organizations or regular
basis behalf of the organization.
3. Decisional Role:

• Decision making roles emerges from

responsibility for day to day activities and
authority for the position.
• Managers develop policies, plans and strategies
for negotiations and handling uncertainties.
• This role is performed through negotiation,
resource allocation, conflict management and
entrepreneurial role.
 Negotiator role:
• It includes the protection of organizational interest while
making the negotiation with various parties both inside and
outside of the organization.
• Agreements with stakeholders like suppliers, distributors,
government bodies and trade union for the agreement on
different issues are some areas of negotiation where
managers must involve on behalf of organizations.
• Skills and abilities for negotiation of managers largely affect
on the organizational success.
 Resource allocator role:
• Managers should allocated different types of resources
(human, financial, information, raw material and machinery )
effectively for high level of productivity.
• All such resources should be allocated properly and
proportionately to all departments, sections, units and
 Entrepreneur role:
• To achieve predetermined goals, managers should have capacity
of identifying opportunities and threats timely and should
analyze opportunities in organizational favor.
• They should have capacity of creating the jobs to the employees
and setting goals to every members of the organization so that
every individual can contribute to organization as per their
capacity.
• This role concerns with planning and policy making and their
effective implementation.
• They should identify and screen out the best investment
opportunities.

 Conflict Management:
• Managers must manage different types of conflicts between
employees and management, between the departments and
units as well as between the organizations.
• Manger should have capacity of managing such conflicts timely
by using skills, knowledge and behavior.
Fayol’s Principle of Management:
• Henry Fayol was a French
Industrialist.

• On the basis of his experience he

developed different principles of
management.

• These principles are applicable

to office administration.
1. Division of Work
2. Authority and Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of Individual Interest
7. Remuneration
8. The Degree of Centralization
9. Scalar Chain
10. Order
11. Equity
12. Stability of Tenure of Personnel
13. Initiative
14. Esprit de Corps
 Division of work:
• Division of work is the focus on specialization.
• It describes division of labor i.e. work provides the
opportunity to each member to exercise own skills
on the basis of experience at work.
• Each member gets the job of interest and experience
which helps to increase the productivity of
individual, team and ultimately organization.
• Thus, the principle of division of work explains that
management should divide a complex work into
simple piece of works.
• Job should be prepared by combining similar tasks
and assigned to employees on the basis of their
skills, experience and interest.
Authority and responsibility:
• Authority is legitimate power to command
and get work done through others.
• Authority is the right to control the activities
of subordinates by virtue of position.
• It indicates the power limitation enjoyed by
a person to make organizational decisions.
• Responsibility simply is an obligation or duty
to do the work in the organization.
• These two tools of management are
interrelated and interdependent.
 Discipline:
• Discipline describes the situation of honoring the
specified rules and regulations of the organization in
which an individual is associated.
• Discipline implies obedience and respect of
authority.
• This principle of management describes that there
must be appropriate environment in the
organization to follow the specified rules and
regulations.
• Each member irrespective of the position must
follow the discipline.
• Self-discipline is to be maintained to maintain
respect and honor within the organization.
Unity of command:
• This principle states that employees should
have only one boss and should be responsible
to only that person.
• If there are more bosses or supervisors, then
employees may get command from different
supervisor at a time and gets confused.
• Lack of unity of command weakens the
discipline, creates conflict in goals and
undermines the authority.
• Thus, this principle focuses on single command
to an employee at a time.
 Unity of direction:
• This principle states that there should be only one
head , one plan and one boss for similar group of
activities.
• This means there must be only one instructions to
accomplish similar type of works.
• Different leaders have distinct method and
approaches to accomplish any job and to solve any
problem.
• If employees get different types of instruction to
accomplish any job and to solve any problem.
• If employees get different instructions becomes too
difficult. Therefore, there must be same directions to
subordinates to accomplish similar jobs.
 Subordination of individual interest to general
interest:
• Various individual associated in the organization may
have different personal goals.
• They may have different than organizational goals. If
individuals are guided by their own personal goals,
organizational goals cannot be attained.
• So, individuals must incorporate their interest with
the organizational needs.
• This principle emphasizes on the general interest i.e.
organizational common interest rather than
individual interest.
• For organizational betterment, each individual must
give first priority to the organizational goals and
place own goal into second priority.
 Remuneration of personnel:
• According to this principle organization should
provide fair and marketable remuneration should
provide to employees.
• Remuneration must be based on experiences,
qualifications, productivity and markets inflation
rate.
• It must be transparent and competitive.
• Organization should provide financial as well as non-
financial benefits to the employees.
• Remuneration system should encourages employees
for higher productivity and boost up their morale.
• This principle thus focuses in appropriate
remuneration system which can satisfy the needs of
employees and maintain the financial health of
organization.
 Centralization :
• Centralization is the philosophy of controlling
organizational activities by the central authorities.
• This principle emphasizes on the centralized final
authority.
• This means the final authority for making decision in
the organization should be retained at the top level
of management through some of the authorities can
be delegated to subordinates.
• There must be balance between centralization and
decentralization for the effective functioning of
organization.
 Scalar chain:
• Scalar chain refers to the chain of superior-subordinates ranging from
top to the bottom for effective flow of authority, order and
information. There should be unbroken chain of command and
communication. Unbroken scalar chain facilitates for effective flow of
communication and command.
 Order:
• Order indicates placing man, machinery , and things in the right
manner so that they can be used at right time without delay. It says
that right man should be appointed at right place at right time. For the
efficiency and the productivity, right things ( raw materials, machinery,
finished goods, etc. ) must keep at right place. This increases the
efficiency and effectiveness.
 Equity:
• Equity refers to fair treatment or equality or justice in the behavior to
all concern people associated in the organization. This principle states
that there should not be any discrimination on the basis of different
reasons like castes and creeds, religion, geography, sex, age etc. it
ensures healthy industrial relations in the organization so that
absenteeism and turnover get reduced. Job satisfaction of employees
will be improved.
 Stability of tenure:
• Stability of tenure refers to the job security of
employees. Job insecurity decreases the morale of the
employees due to which effectiveness and efficiency
gets lowered.
• Lack of stability of tenure causes high labour turnover
ratio.
• This principle states that management should establish
the guaranty of job continuity for the employees.
• Management should work for increasing tenure ( years
of working in same organization) of employees.
• Low turnover of the employees increases organizational
image and reduces the cost of recruitment and selection
as well as training and development.
 Initiative :
• According to this principle, every manager must take step in
order to make the work done properly to realize the goal of an
organization.
• Every employee should be encouraged to be creative for new
ideas, and way of doing things.
• Managers should lead the campaign for improving creativity.
Initiations makes every work possible as it encourages and boost
up the morale of employees.

 Espirit de Corps:
• Espirit de Corps refers to ‘strength of unity’.
• This principle states that management should establish
cooperation and coordination.
• It means joint work materializes the goal of an organization as
single effort is not enough. Cooperation increases positive
attitude towards the organization and its goal.
• The team work with cooperation and coordination generates
synergy which becomes the reasons organizational success.
 Activity
• What is managerial roles? Describe
• What is management? Describe about the
principles of management.
Functions of Management
• Planning is a process of deciding future
Planning
course of action regarding what to do,
how to do, when to do, who will to do,
to attain the organizational goals and
so on.
• It is one of the management functions
concerning for setting organizational
goals and actions to achieve them.
• Planning sets the future goals of
organization and selects the course of
actions to attain the goals effectively
and efficiently.
• It is intellectual process in which
managers formulate and select on best
course of action ensuring the effective
and efficient functions.
• Planning represents the vision, wisdom
and foresightedness of managers.
• In conclusion planning is a process of
determining organizational goals,
objectives and course of actions to be
followed in future.
Organizing

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• The process of prescribing formal
relationships among people and resources to
achieve goals.
• Process of identifying and grouping the work
performed, defining and delegating
responsibility and authority and establishing
relationships for the purpose of goal
achievement.

32
• STEP 1 – Identifying the work.
• STEP 2 – Grouping the work.
• STEP 3 – Establishing relationships..
• STEP 4 - Delegating authority.
• STEP 5 – Providing for coordination and control.

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• Enlarges abilities.
• Facilitates administration
• Facilitates growth and
diversification
• Permits optimum use of resources.
• Stimulates creativity
• Facilitates coordination

34
 Staffing:
• Staffing refers to finding
the right person for the
right job having right
qualification at the right
time
• Staffing is the process of
hiring eligible candidates
in
the organization or compa
ny for specific positions.
• In management, the
meaning of staffing is an
operation of recruiting the
employees by evaluating
their skills, knowledge and
then offering them
specific job roles
accordingly.
 Functions of Staffing:
• The first and foremost function of staffing is to obtain
qualified personnel for different jobs position in the
organization.
• In staffing, the right person is recruited for the right jobs,
therefore it leads to maximum productivity and higher
performance.
• It helps in promoting the optimum utilization of human
resource through various aspects.
• Job satisfaction and morale of the workers increases through
the recruitment of the right person.
• Staffing helps to ensure better utilization of human resources.
• It ensures the continuity and growth of the organization,
through development managers.
 Importance of Staffing
 Efficient Performance of Other Functions
• For the efficient performance of other functions of management, staffing is
its key.
• Since, if an organization does not have the competent personnel, then it
cannot perform the functions of management like planning, organizing and
control functions properly.
 Effective Use of Technology and Other Resources
• What is staffing and technology’s connection?
• Well, it is the human factor that is instrumental in the effective utilization of
the latest technology, capital, material, etc. the management can ensure the
right kinds of personnel by performing the staffing function.
 Optimum Utilization of Human Resources
• The wage bill of big concerns is quite high. Also, a huge amount is spent on
recruitment, selection, training, and development of employees.
• To get the optimum output, the staffing function should be performed in an
efficient manner.
 Development of Human Capital
• Another function of staffing is concerned with human capital requirements.
• Since the management is required to determine in advance the manpower
requirements.
• Therefore, it has also to train and develop the existing personnel for career
advancement. This will meet the requirements of the company in the future.

 The Motivation of Human Resources

• In an organization, the behavior of individuals is influenced by various factors
which are involved such as education level, needs, socio-cultural factors, etc.
• Therefore, the human aspects of the organization have become very important
and so that the workers can also be motivated by financial and non-financial
incentives in order to perform their functions properly in achieving the
objectives.

 Building Higher Morale

• The right type of climate should be created for the workers to contribute to the
achievement of the organizational objectives.
• Therefore, by performing the staffing function effectively and efficiently, the
management is able to describe the significance and importance which it
attaches to the personnel working in the enterprise.
Directing(Leadership, Motivation, Communication)
• DIRECTING is said to be a process in which the managers instruct, guide
and oversee the performance of the workers to achieve predetermined
goals.
• Directing is said to be the heart of management process.
• Planning, organizing, staffing have got no importance if direction
function does not take place.
• Directing initiates action and it is from here actual work starts. Direction
is said to be consisting of human factors.
• In simple words, it can be described as providing guidance to workers is
doing work. In field of management, direction is said to be all those
activities which are designed to encourage the subordinates to work
effectively and efficiently.
• According to Human, “Directing consists of process or technique by
which instruction can be issued and operations can be carried out as
originally planned”
• Therefore, Directing is the function of guiding, inspiring, overseeing and
instructing people towards accomplishment of organizational goals.
 Leadership
• Leadership is a process by
which a person influences
others to accomplish an
objective and directs the
organization in a way that
makes it more organized and
logical meaning.
• Leadership is a process
whereby an individual
influences a group of
individuals to achieve a
common goal.
• Put even more simply, the
leader is the inspiration and
director of the action.
• He or she is the person in the
group that possesses the
combination of personality
and leadership skills that
makes others want to follow
his or her direction.
 Leaders Vs. Managers

Leaders Managers

• Personal Power • Positional Power

• Innovate • Administer
• Develop • Maintain
• Inspire • Control
• Long-term view • Short-term view
• Ask what and why • Ask how and when
• Experimental • Analytical
• Challenge status quo • Accept the status quo
• Do the right thing • Do things right
Motivation
• Motivation is the word
derived from the word
’motive’ which means
needs, desires, wants
or drives within the
individuals.
• It is the process of
stimulating people to
actions to accomplish
the goals.
• In the work goal
context the
psychological factors
stimulating the people’s
behavior can be -
 desire for money
 success
 recognition
 job-satisfaction
 team work, etc.
• One of the most important functions of
management is to create willingness amongst the
employees to perform in the best of their abilities.
• Therefore the role of a leader is to arouse interest in
performance of employees in their jobs.
• The process of motivation consists of three stages:-
 A felt need or drive
 A stimulus in which needs have to be aroused
 When needs are satisfied, the satisfaction or
accomplishment of goals.
• Therefore, we can say that motivation is a
psychological phenomenon which means needs and
wants of the individuals have to be tackled by
framing an incentive plan.
Advantages of motivation:
• Increased productivity
• Decrease in absenteeism
• Decreased friction and conflict
• Decreased wastage and ideal time
• Decrease in complaints and grievance
• Increased efficiency.
 Controlling
• Controlling is the process of measuring an
actual performance for ensuring that
actual performance is being performed as
plans or not.
• Once the plans are put into operation
through directing, it becomes necessary to
judge regularly whether the actual results
are consistent with the planned results.
• This process of evaluating the actual
performance in comparison with the
planned targets and taking suitable
corrective actions whenever, necessary is
known as controlling.
• In managerial terminology, control is
ensuring work accomplishment according
to plans.
• Thus , basically, control is a process that
guides activity towards some pre-
determined goals.
Communication
Concept of communication:
• Communication can be defined as an exchange process of
ideas, facts, opinions, information and understanding
between two or more people or organizations.
• It is the transmission and reception of information.
Communication is the primary functions of management.
 Communication process:
A process by which information is exchanged between individuals through a common
system of symbols, signs, or behavior.
• We define organizational communication’ as the sending and receiving of
messages among interrelated individuals within a particular environment or setting
to achieve individual and common goals.
• Organizational communication is highly contextual and culturally dependent.
Individuals in organizations transmit messages through face-to face, written, and
mediated channels.
 Management skills
•Management skills can
be defined as certain
attributes or abilities
that an executive should
possess in order to fulfill
specific tasks in an
organization.
•They include the
capacity to perform
executive duties in an
organization while
avoiding crisis situations
and promptly solving
problems when they
occur.
 Technical skills
• Refer to the manager’s knowledge and ability to
use different techniques
The technical skills of management include:
 Handling machines
 Preparing daily work schedule
 Supervising employees
 Team formation and mobilizing performance
appraisal
 Preparing reports
 Motivating employees, etc.
 Human skills
• The ability of the managers to interact and work effectively with
people
• Human behavior is the most complex aspect of management.
• A manager should have ideas to communicate effectively with
followers and immediate superiors. A manager with ample human
skills can lead subordinates and successfully manage the groups and
coordinate them effectively.
• Every manager must have good knowledge of:
 communication,
 motivation,
 leadership,
 grievance handling, and
 conflict management.
 Conceptual skills
• Conceptual skills refer to the mental ability to
analyze and diagnose complex situations. It
involves the seeing organization as a whole and
understanding how its parts will affect the whole.
• Conceptual skills are mostly necessary to top-
level management. It assists the managers to
imagine the environment, analyzing the forces in
a working place, and taking a broad farseeing
view of the business.
 History of Management
• Management has been practiced for a long time and has existed for thousands of years.
• History has proof that projects of tremendous scope, employing numerous people, were
completed.
• The Egyptian pyramids
• The Great Wall of China
• The city of Venice (major economic and trade center in the 1400s)
 Job Specialization
• The book talked about Division of Labor (or
Job Specialization) and the economic
advantages that organization and society
would gain from this.
• Breaking down jobs into narrow and repetitive
tasks.
• Division of Labor increased productivity by
increasing each worker`s skill and dexterity,
saving time lost in changing tasks.
 Industrial Revolution
• Started in the late 18th century.
• Machine power was substituted for human
power
• It became more economical to manufacture
goods in factories rather than at home.
• These large efficient factories needed “managers”
to-forecast demand, ensure supplies, assign tasks
to people, direct daily activities and so on
• Not much guidance available to managers
 Major Approaches to Management
• Classical Approach (1911-1947)
• first studies of management, which
emphasized rationality and making
organizations and workers as efficient as
possible.
 Contd..
1. The Scientific Management
• Frederick Winslow Taylor- “Father” of
scientific management.
• Develop “one best way” for a job to be done.
• Productivity could be increased by putting
the right person on the job with the correct
tools and equipment.
 Contd..
• Fredrick Winslow Taylor
– The “father” of scientific management
• Scientific management – an approach that
involves using the scientific method to find
the “one best way” for a job to be done.
Taylor’s Scientific Management Principles
 2. General Administrative Theory

• General administrative theory – an approach

to management that focuses on describing
what managers do and what constitutes good
management practice.
 Henri Fayol

• Principles of management –
Fundamental rules of
management that could be
applied in all organizational
situations and taught in
schools.
Fayol’s 14 Principles of Management
Contd..
 3. Bureaucratic Theory
• Max Weber developed a
theory of authority
structures and relations
called Bureaucracy
• a form of organization
characterized by division
of labor, a clearly defined
hierarchy, detailed rules
and regulations, and
impersonal relationships.
 Contd..
Characteristics of Bureaucratic Organization
• Division of work
• Administrative hierarchy
• Impersonal relationship
• Official rules
• Official record
• Work system
• Technical competency
• Job security
• Fixed remuneration
 Human Relation and Behavioural
Science Approach
• Human relation theory gives importance to
people in the organization
• Behavioural science theories emphasizes
interpersonal relationship and employee
behaviour
 A. Human Relation Theory
• Puts human beings at its centre
• Prof. Elton Mayo and his associates began the
experiments to prove the importance of
people than the machines for productivity.
• The experiment was conducted in the
Hawthrone plants of the Western Electricals in
the spring of 1927 in Chicago, USA
Hawthrone Experiment
 1. Illumination experiment
• These experiments were performed to find out
the effect of different levels of illumination
(lighting) on productivity of labour.
• The brightness of the light was increased and
decreased to find out the effect on the
productivity of the test group.
• Surprisingly, the productivity increased even
when the level of illumination was decreased.
• It was concluded that factors other than light
were also important.
 2. Relay Assembly Test room
• Under these test two small groups of six female
telephone relay assemblers were selected. Each group
was kept in separate rooms. From time to time,
changes were made in working hours, rest periods,
lunch breaks, etc.
• They were allowed to choose their own rest periods
and to give suggestions. Output increased in both the
control rooms.
• It was concluded that social relationship among
workers, participation in decision-making, etc. had a
greater effect on productivity than working conditions.
 3. Mass Interview Programs
• 21,000 employees were interviewed over a
period of three years to find out reasons for
increased productivity.
• It was concluded that productivity can be
increased if workers are allowed to talk freely
about matters that are important to them.
 4. Bank Wiring Observation Room
Experiment
• A group of 14 male workers in the bank wiring
room were placed under observation for six
months.
• A worker's pay depended on the performance of
the group as a whole. The researchers thought
that the efficient workers would put pressure on
the less efficient workers to complete the work.
• However, it was found that the group established
its own standards of output, and social pressure
was used to achieve the standards of output.
 Conclusion
• The social and psychological factors are responsible for workers'
productivity and job satisfaction. Only good physical working conditions
are not enough to increase productivity.
• The informal relations among workers influence the workers' behaviour
and performance more than the formal relations in the organization.
• Employees will perform better if they are allowed to participate in
decision-making affecting their interests.
• Employees will also work more efficiently, when they believe that the
management is interested in their welfare.
• When employees are treated with respect and dignity, their performance
will improve.
• Financial incentives alone cannot increase the performance. Social and
Psychological needs must also be satisfied in order to increase
productivity.
• Good communication between the superiors and subordinates can
improve the relations and the productivity of the subordinates.
• Special attention and freedom to express their views will improve the
performance of the workers.
 Criticism of Human Relation theory
• Lacks Validity
• More Importance to Human Aspects
• More Emphasis on Group Decision-making
• Over Importance to Freedom of Workers
 B. Behavioural Science Theories
• It advocates the importance of people’s
behaviour for effectiveness of management.
• It developed the concepts of motivation,
leadership, communication, teamwork, and
reward.
 Abraham Maslow’s: Need Hierarchy Theory
• This theory is based on the
human needs comprising a
five-tier model depicted as
hierarchical levels within a
pyramid. The needs lower
down in the hierarchy must
be satisfied before
individuals can attend to the
needs higher up.
• This order begins with the
most basic needs before
moving on to more
advanced needs.
• The ultimate goal,
according to this theory, is
to reach the fifth level of the
hierarchy: self-actualization.
 Douglas McGregor’s: Theory x and y
• In the 1960s, social psychologist Douglas McGregor developed
two contrasting theories that explained how managers' beliefs
about what motivates their people can affect their management
style. He labeled these Theory X and Theory Y. These theories
continue to be important even today.
Fredrick Herzberg’s : Two factor theory
• According to Herzberg, there are some job factors that results in
satisfaction while there are other job factors that prevent
dissatisfaction.
 System Theory
• The system theory of management assumes that an organization should be viewed as an
open system. Organization is an open system since it constantly interact with environment.
 Decision Theory
• The decision theory of management looks management as a decision
making process. According to this, decisions are made through rationale
choice among different alternatives available. The theory suggests that
decision-making means the adoption and application of rational choice
for the management of a private, business, or governmental
organization in an efficient manner.
 Management Science Theory
• The management science theory is based on mathematical,
quantitative , and operational research approach.
• It emphasizes the application of mathematics and statistics
for solving managerial problems.
• An approach to management that uses rigorous quantitative
techniques to minimize the use of organizational resources.
 Quantitative management- utilizes linear programming,
modeling, simulation systems.
 Operations management- techniques to analyze all aspects
of the production system.
 Total quality management (TQM)- focuses on improving
quality throughout an organization.
 Management Information systems (MIS)- provides
information about the organization.
 Contingency Theory
• A contingency theory is an organizational theory that claims
that there is no best way to organize a corporation, to lead a
company, or to make decisions. Instead, the optimal course
of action is contingent (dependent) upon the internal and
external situation. The major points that is highlighted by
contingency theory are:
 There is no universal way to manage
 Management decision making is dependent on situation
 Environment can constrain decisions
 Need to anticipate environmental changes
 Need human relation skills to manage change
 Managers must communicate effectively
 Emerging Management Concepts
• Workforce diversity: It is defined as the similarities and differences
among employees in an organization in terms of age, culture,
physical abilities, race, religion, gender and sexual orientation.
• Outsourcing: It is an organizational practice in which a company
hires another/ company individual to perform certain tasks, handle
operations or provide services that had previously been done by
the company itself. Outsourcing can be done in technology services,
customer services, manufacturing processes, human resources
tasks and financial functions.
• Knowledge management: It is the process through which
organization generate value from their intellectual and knowledge
based assets. It is concerned with the process of identifying,
acquiring, distributing and maintaining knowledge that is essential
to the organization.
• Learning Organization: An organization skilled at creating,
acquiring, and transferring knowledge and at modifying its
behaviour to reflect new knowledge and insights is called learning
organization.
Management Related
Points to discuss
Delegation of Authority
What is TQM :
A core definition of total quality
management (TQM) describes a
management approach to long–term
success through customer satisfaction.
In a TQM effort, all members of an
organization participate in improving
processes, products, services, and the
culture in which they work.
Features of TQM are:
• Quality is defined by customers'
requirements.
• Top management has direct
responsibility for quality
improvement.
• Increased quality comes from
systematic analysis and
improvement of work processes.
• Quality improvement is a
continuous effort and conducted
throughout the organization.
Just in Time( JIT):
• Just-in-time (JIT) is an inventory
strategy companies employ to
increase efficiency and
decrease waste by receiving
goods only as they are needed
in the production process,
thereby reducing inventory
costs.
• This method requires producers
to forecast demand accurately.
• This inventory supply system
represents a shift away from
the older strategy, in which
producers carried large
inventories in case higher
demand had to be met.
 Chain of command
• A chain of command : is an hierarchical line of
authority that connects employees and
managers, from the workers up to the top level
of the organization.
• It defines the relationship between the superior
and the subordinate as to who reports to
whom.
• Chain of command has two components:
1 Unity of command
2 Scalar principle

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 Span of control

• Number of subordinates under one manager

• Wider span of control : A manager as many
subordinates who report to him.
• Narrow span of control : a manager has
fewer subordinates.

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 Centralization Vs Decentralization

• Centralization : Authority for most decisions

is concentrated at the top of the managerial
hierarchy
• Decentralization : Authority is dispersed by
extension and delegation through all the
levels of management.

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 DEPARTMENTATION…
• THE PROCESS OF DIVIDING LARGE
ORGANIZATIONS INTO SMALLER, FLEXIBLE
ADMINISTRATIVE UNITS.

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 After the end of the unit
• Management related case study solutions and
presentation