UNIT -1 INTRODUCTION TO 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 . Management is
a purposive‖
activity. It is something that directs group efforts towards the attainment of certain
pre – determined
goals. Management is a purposive activity. It is something that directs group
efforts towards the
attainment of certain pre-determined goals
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 . Management is
a purposive‖
activity. It is something that directs group efforts towards the attainment of certain
pre – determined
goals. Management is a purposive activity. It is something that directs group
efforts towards the
attainment of certain pre-determined goals
INTRODUCTION:
Every organization uses four kinds of resources i.e., Human, Financial, Physical
and Information and management are all about achieving organizational goals
using these resources effectively. The people who perform these functions are
known as “managers” and collectively it is called “management”. The significance
of management can be well realized by imagining a situation in which an
organization has all the resources that it requires but no management. In such a
case, there will be a wastage of resources and confusion, as nobody would know
what to do. It is the management, which guides and controls the activities of

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 human resources for the attainment of organizational goals. Thus, Management
is the process of getting things done with the aim of achieving goals effectively
and efficiently.
Management is the process of planning, organizing, directing, and controlling
resources (human, financial, material, and informational) to achieve
organizational goals efficiently and effectively. It involves coordinating the efforts
of people to accomplish common goals and objectives by utilizing available
resources wisely.
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. It is an art of creating an
environment in which people can perform and individuals and can co-operate
towards attainment of group goals. It is something that directs group efforts
towards the attainment of certain pre – determined goals.
DEFINITIONS OF MANAGEMENT:
Harold Koontz defines “Management is the art of getting things done through
and with people in formally organized groups.”
Mary Parker Follet wrote “Management is the art of getting things done
through people.”
Henri Fayol stated “To manage is to forecast and to plan, to organize, to
command, to coordinate and to control.”
Peter Drucker defines “Management is a multi-purpose organ that manage
business and manages managers and manages workers and work.”
From the above definitions, we can conclude that, Management is an individual
or a group of individuals that accept responsibilities to run an organisation.
They plan, organize, direct and control all the essential activities of the
organisation. Management does not do the work themselves. They motivate
others to do the work and coordinate all the work for achieving the objectives of
the organisation.
Management brings together all six M’s, i.e., Men, Money, Machines, Materials,
Methods and Markets. They use these resources for achieving the objectives of
the organisation such as high sales, maximum profits, business expansion, etc.

CHARACTERISTICS OR NATURE OF MANAGEMENT

The characteristics or nature of management encompass various facets that

define the practice and role of management within organizations. Here are the
key characteristics or aspects:

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 1.Goal-Oriented: Management is fundamentally concerned with setting and
achieving organizational goals. It involves planning, organizing, directing, and
controlling resources to accomplish specific objectives efficiently and effectively.
2.Universal Function: Management is a universal function found in all
organizations regardless of size, nature, or industry. It involves common
activities such as planning, organizing, leading, and controlling.
3.Continuous Process: It's an ongoing and continuous process that involves
various interconnected functions. Managers engage in a cyclical process of
planning, implementing plans, evaluating outcomes, and revising strategies
accordingly.
4.Multidisciplinary: Management draws upon various disciplines such as
economics, psychology, sociology, and engineering. It integrates knowledge from
diverse fields to effectively manage resources and people.
5.Dynamic and Changing: The field of management continuously evolves due
to changes in technology, globalization, socio-economic factors, and market
dynamics. Managers must adapt to these changes and embrace innovation to
remain competitive.
6.Involvement of People: Management involves working with and through
people. It encompasses leadership, motivation, communication, and teamwork
to achieve organizational goals.
7.Decision-Making: Management involves making informed decisions based on
available information and analysis. Managers must assess situations, evaluate
options, and choose the best course of action.
8.Hierarchical Structure: Organizations typically have a hierarchical structure
with different levels of management, from top-level executives to front-line
supervisors, each responsible for specific functions and areas.
9.Accountability and Responsibility: Managers are accountable for the
performance and outcomes of their teams or departments. They are responsible
for ensuring that objectives are met while adhering to organizational policies
and ethical standards.
10.Resource Utilization: Effective management involves optimizing resources
such as human capital, finances, materials, and technology to maximize
productivity and achieve organizational goals.
11.Adaptive and Problem-Solving Oriented: Managers deal with uncertainties,
complexities, and challenges regularly. They need to be adaptive and possess
problem-solving skills to address issues as they arise.

OBJECTIVE OF MANAGEMENT:
Objectives of management can be classified into organizational objectives,

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social objectives and personal or individual objectives. Management has to
achieve all these objectives. Management has to achieve all these objectives
in an effective and efficient manner.

1.Organizational or Economic Objectives

The main objective of any organisation should be to utilise human and

material resources to the maximum possible advantage, i.e., to fulfil the
economic objectives of a business. These are survival, profit and growth.

I. Survival: The management of an organisation must ensure the survival

of the organisation by earning enough revenues to cover costs.

II. Profit: Management must ensure that the organisation makes a profit,
which is an incentive for the continued successful operation of the
enterprise. Profit is essential to cover costs and risks for the business.

III. Growth: It is important for every business to grow in the long run.
Management must exploit fully the growth of potential of the organisation.
The growth of a business can be measured in terms of

a) Increase in sales turnover

b) Increase in the number of products

c) Increase in number of employees

d) Increase in capital investment, etc.

2. Social Objectives

Social objectives of management involve the creation of benefits or

economic value for society. This includes:

• Using environmentally friendly methods of production

• Providing basic amenities like schools and creches to employees

• Giving employment opportunities to the disadvantaged sections of the

society, etc.

3. Personal objectives

Personal objectives of management involve the creation of benefits or

economic value for society. This includes:

• Financial needs by giving them a competitive salary

• Social needs such as peer recognition, and

• Higher-level needs such as personal growth and development

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 Management has to reconcile personal objectives with organizational
objectives for harmony in the organisation.

LEVELS OF MANAGEMENT:
Levels of management refer to hierarchy of management in the
organisation. Levels of management are created to manage the activities of
the organisation smoothly. This brings the division of work within the
organizational structure. Normally, there are three levels of management
namely:
1. Top level management
2. Middle level management
3. Lower level management

CONTRIBUTION TOWARDS DEVELOPMENT OF MANAGEMENT THEORY:

Management theory has evolved significantly over time, with various

scholars and practitioners contributing their ideas and insights. Here are
some notable contributions to the development of management theory:

ELTON MAYO THE HAWTHORNE EXPERIMENT:

The Hawthorne experiments, conducted between 1924 and 1932 at the

Western Electric Company's Hawthorne Works in Chicago, were a series of
studies that revolutionized the understanding of human behavior and
motivation in the workplace. Elton Mayo, along with his colleagues,
conducted these experiments, which had significant implications for
management theory and practice.

Implications of the Hawthorne Experiments:

1.Social and Human Factors: The experiments highlighted the

importance of social and human factors in productivity. Researchers
observed that changes in the work environment, such as increased lighting
or improved working conditions, led to increased productivity not solely
because of the changes themselves, but because workers felt their opinions
were valued and they were being observed and studied. This brought
attention to the psychological and social aspects of work.

2.Hawthorne Effect: One of the key findings was the Hawthorne Effect,
which refers to the phenomenon where individuals modify their behavior
when they are aware of being observed. This showed that productivity
increases were not just due to changes in physical conditions but also due

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to the workers' perception of being part of an experiment.

3.Informal Groups and Communication: The studies emphasized the

existence and influence of informal groups within the workplace. They
found that these groups had a strong impact on individual behavior, job
satisfaction, and productivity. Moreover, the experiments highlighted the
significance of communication and social interactions among workers in
influencing performance.

4.Importance of Leadership and Supervision: Researchers observed that

leadership style and the relationship between supervisors and workers
significantly impacted productivity. Supportive and participative leadership
led to better morale and increased productivity among workers.

Limitations of the Hawthorne Experiments:

1.Limited Generalizability: Critics argue that the findings might not be

universally applicable as they were conducted in a specific industrial
setting with unique conditions. Thus, the results may not apply to all types
of workplaces.

2.Methodological Issues: Some critics questioned the methodology and

control of variables in the experiments. They argued that the researchers'
presence might have influenced the results, leading to the Hawthorne
Effect itself.

3.Simplification of Complexities: The experiments focused heavily on

social aspects and overlooked other crucial factors affecting productivity,
such as technological advancements, task complexity, and economic
incentives.

4.Lack of Clear Causation: While the experiments showed correlations

between changes in variables and productivity, they did not always
establish a clear cause-and-effect relationship. This ambiguity in causation
limits the practical application of the findings in some contexts.

Despite its limitations, the Hawthorne experiments remain influential in

highlighting the significance of social and human factors in the workplace,
emphasizing the importance of considering employees' attitudes,
perceptions, and social interactions in management practices.

MANAGEMENT BY OBJECTIVES (MBO):

Peter Drucker, often regarded as the father of modern management, made

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significant contributions to the field of management theory and practice.
One of his key concepts was Management by Objectives (MBO).

MBO is a management technique or philosophy that aims to improve

organizational performance by defining specific objectives for individual
employees and departments. Drucker introduced this concept in his 1954
book "The Practice of Management." The core idea behind MBO is to align
individual and organizational goals and create a clear understanding of
what needs to be achieved and how it will be accomplished.

Key components of MBO include:

1.Setting Objectives: Clear and measurable goals are established

collaboratively between managers and employees. These objectives are
specific, achievable, and time-bound.

2.Participative Goal Setting: Drucker emphasized involving employees in

the goal-setting process to increase their commitment and motivation
toward achieving these objectives.

3.Performance Monitoring: Regular assessment and review of

performance against set objectives. This involves feedback mechanisms to
track progress and identify any necessary adjustments or corrective
actions.

4.Rewards and Feedback: Acknowledgment and rewards for meeting or

exceeding objectives, as well as providing constructive feedback to enhance
future performance.

Benefits of MBO:

1.Clarity of Goals: Provides clarity and focus by defining specific

objectives for employees and teams.

2.Alignment: Aligns individual goals with organizational objectives,

fostering a sense of purpose and direction.

3.Motivation and Engagement: Involving employees in goal setting

increases their commitment and motivation to achieve those objectives.

4.Enhanced Communication: Promotes communication between

managers and employees, fostering a more collaborative work
environment.

THE BEHAVIORAL APPROACH

The behavioral approach to management focuses on understanding and

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analyzing human behavior in the workplace. It emphasizes the impact of
social, psychological, and emotional factors on employees' performance,
motivation, and productivity. This approach contrasts with the more
traditional, mechanistic views of management prevalent in the classical
approach.

Key points about the behavioral approach:

1.Human Element: Recognizes that organizations are comprised of people

with varying needs, motivations, perceptions, and behaviors.
Understanding these human aspects is crucial for effective management.

2.Motivation Theories: Emphasizes theories of motivation, such as

Maslow's Hierarchy of Needs, Herzberg's Two-Factor Theory, and
McGregor's Theory X and Theory Y. These theories attempt to explain what
drives individuals in the workplace and how managers can influence
motivation levels.

3.Social Relationships: Acknowledges the significance of social

interactions and relationships among employees in the workplace. It
explores how group dynamics, communication patterns, and leadership
styles impact individual and group performance.

4.Hawthorne Studies: The Hawthorne experiments conducted by Elton

Mayo and his colleagues were pivotal in this approach. These studies
highlighted the impact of social factors and the Hawthorne Effect on
productivity, indicating that productivity increased not only due to
changes in physical conditions but also due to employees feeling valued
and observed.

5.Employee Participation: Encourages employee involvement in decision-

making processes. This involvement can lead to higher job satisfaction,
increased commitment to organizational goals, and improved performance.

6.Leadership and Management Style: Focuses on leadership styles that

are more participative, supportive, and focused on building relationships
with employees. It advocates for managers who are empathetic,
understanding, and considerate of employee needs.

7.Organizational Culture and Climate: Recognizes the influence of

organizational culture and climate on employee behavior. A positive
culture that encourages collaboration, open communication, and support
can lead to higher employee satisfaction and productivity.

Limitations of the Behavioral Approach:

1.Complexity: Human behavior is intricate and multifaceted, making it

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challenging to predict and manage effectively.

2.Subjectivity: Assessing and dealing with human behavior often involves

subjective interpretations, which can make it difficult to implement
universally applicable strategies.

3.Neglect of Structural Aspects: Overemphasis on human aspects might

lead to neglecting other critical aspects like efficiency and structured
processes.

4.Reliance on Psychological Theories: The approach heavily relies on

psychological theories, which might not capture the entirety of human
behavior in complex organizational settings.

The behavioral approach significantly shifted the focus of management

from a purely mechanistic and task-oriented perspective to a more people-
centered approach. It highlighted the importance of considering human
needs, motivations, and social interactions in managing organizations
effectively. However, it's crucial to balance the insights from the behavioral
approach with other management approaches for a comprehensive
understanding of organizational dynamics.

THE SYSTEMS APPROACH :

The systems approach to management views organizations as complex

systems made up of interconnected and interdependent parts that work
together to achieve common goals. This approach considers the
organization as a unified whole, with an emphasis on the relationships and
interactions between its various components. Here are the key points
about the systems approach:

1.Holistic Perspective: It takes a holistic view of organizations,

considering them as dynamic entities where the whole is more than the
sum of its parts. This approach focuses on understanding how different
components interact and influence one another within the organization.

2.Interconnectedness: Recognizes the interconnectedness of various

departments, functions, processes, and individuals within an organization.
Changes in one part of the system can have repercussions throughout the
entire system.

3.Inputs, Processes, Outputs: Systems theory typically involves inputs

(such as resources, information, and people), processes (such as
operations, communication, and decision-making), and outputs (such as
products, services, and outcomes). Feedback loops are also integral,
providing information on how outputs impact future inputs and processes.

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4.Open Systems: Organizations are considered open systems, interacting
with and influenced by their external environment. This approach
acknowledges the impact of external factors like competitors, customers,
suppliers, regulations, and societal changes on the organization's
functioning.

5.Emergent Properties: Systems theory highlights emergent properties,

which are qualities or behaviors that arise from the interactions of system
components and cannot be observed or predicted by examining individual
parts separately.

6.Hierarchy and Subsystems: Recognizes that organizations consist of

multiple subsystems, each having its own functions and objectives. These
subsystems work together to contribute to the overall functioning of the
larger system.

7.Adaptability and Change: Systems theory emphasizes adaptability and

the ability of organizations to evolve and respond to changes in their
environment. It encourages organizations to be flexible and responsive
rather than rigid and static.

Limitations of the Systems Approach:

1.Complexity: Organizations are complex, and understanding and

managing the intricacies of a system can be challenging.

2.Oversimplification: The approach might oversimplify the complexities of

human behavior and interactions within the organization.

3.Difficulty in Identifying Boundaries: Determining the boundaries of a

system and what should be included or excluded can be subjective and
challenging.

4.Difficulty in Predictions: Predicting the behavior of a complex system,

especially in the presence of numerous variables and feedback loops, can
be difficult.

The systems approach provides a valuable framework for understanding

the interconnectedness and dynamics within organizations. It encourages
managers to consider the bigger picture, appreciate the interdependencies,
and adopt a more holistic approach to problem-solving and decision-
making. However, it's important to complement this approach with other
management perspectives to gain a comprehensive understanding of
organizational functioning.

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THE CONTINGENCY APPROACH:

The contingency approach to management suggests that there is no one-

size-fits-all solution in management practices. It emphasizes that the most
effective management style, organizational structure, or strategy is
contingent upon the specific situation or context in which it is applied.
Here are the key points about the contingency approach:

1.Contextual Perspective: This approach considers that organizational

effectiveness depends on how well management practices align with the
unique characteristics of the situation, environment, or task at hand.

2.No Universal Solutions: There is no single best way to manage or

organize. The most suitable approach or solution varies based on factors
such as the organization's size, industry, culture, external environment,
technology, and the nature of the task.

3.Matching Approach: The contingency approach emphasizes the need to

match management practices to the specific demands of the situation. For
example, a leadership style that works well in one scenario might not be
effective in another.

4.Flexibility: Encourages managers to be flexible and adaptable in their

decision-making and management styles. They should be willing to adjust
their strategies based on the changing circumstances and needs of the
organization.

5.Research-Based Approach: The contingency theory is often grounded in

empirical research and seeks to identify the relationships between various
factors and organizational outcomes.

6.Contingency Factors: Various contingency factors, such as the

organization's size, technology, environment, leadership style, and
employee characteristics, are considered when determining the most
appropriate management approach.

7.Focus on Situational Analysis: This approach requires managers to

analyze and assess the situation before making decisions, understanding
that different situations may call for different approaches.

Limitations of the Contingency Approach:

1.Complexity: Managing and accounting for multiple contingency factors

can be complex and challenging.

2.Decision-Making Difficulty: Determining which factors are most crucial

and relevant in a given situation might be subjective and complex.

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3.Inconsistent Application: The approach can sometimes lead to
inconsistency or uncertainty in decision-making as there is no universally
applicable solution.

4.Research Limitations: Some critics argue that contingency theories

might lack a comprehensive framework and that research on specific
contingencies might not always be generalizable to other situations.

The contingency approach has significantly contributed to management

thinking by highlighting the need for flexibility and adaptability in
management practices. It underscores the importance of context in
determining the most effective organizational strategies and practices.
However, it requires a nuanced understanding of various situational
factors and a careful assessment of their relevance and impact on
organizational outcomes.

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