Management

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

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”.
Nature of Management
• Management is Continuous

• Management is Goal-Oriented

• Organized Activities

• Management is a Group Activity

Nature of Management

• Existence of Objectives

• Management is Dynamic

• Management is Multidisciplinary

• Management involves Decision Making

Importance of Management
• Optimum Utilization of Resources

• Cordial Industrial Relations

• Adapting to Changed Environment

• Develops Team Spirit

• Effective Communication

• Managerial Roles and Skills

Managerial Roles
• Managerial roles refer to the specific action or behaviors
expected from a manager.

• Henry Mintzberg, a well-known management researcher,

undertook a careful study of five chief executives (consulting
firm, school, hospital, technology firm and consumer good
manufacturer) at work.
1. Interpersonal Roles
Three interpersonal roles are:
• Figure head - Symbolic head, obliged to perform a number of
routine duties of a legal or social nature.
• Leader - Responsible for the motivation and activation of
employees, responsible for staffing, training, and associated
duties.
• Liaison - Maintains self-developed network of outside contacts
and informs who provides favour and information.
2. Informational Roles
Three interpersonal roles are:

• Monitor - Seeks and receives wide variety of special

information (much of it current) through develop through
understanding of organization and environment; emerges as
nerve centre of internal and external information about the
organization.
2. Informational Roles
• Disseminator - Transmits information received from other
employees to the members of the organization.

• Spokesperson - Transmits information to outsiders on

organization’s plans, policies, actions, results, etc.
3. Decisional Roles
Four interpersonal roles are :

• Entrepreneur - Searches organization and its environment for

opportunities and initiates “improvement projects” to bring
change; supervises design of certain projects as well.

• Disturbance handler - Responsible for corrective action when

organization faces important disturbances.
3. Decisional Roles
• Resource allocator - Responsible for the allocation of
organizational resources of all kinds – in effect, the making or
approval of all significant organizational decisions.

• Negotiator - Responsible for representing the organization at

major negotiations.
Managerial Skills

Robert L. Katz developed an approach to describe the skills of

management: He concluded that managers need three
essential skills:

• Technical skills - Technical skills are the job – specific

knowledge and techniques needed to perform proficiently.
Managerial Skills
• Human skills - Involves the ability to work well with other people both
individually and in groups.

• Conceptual skills - Skills, managers use to think and to conceptualize

about abstract and complex situation. With this skills, managers see
the organization as a whole, understand the relationships among
various subunits.
Level of Management

• Top Level Management

• Middle Level Management

• Lower Level Management

Top Level Management
• Require an extensive knowledge of management roles and skills.

• They have to be very aware of external factors such as markets.

• Their decisions are generally of a long-term nature

• Their decisions are made using analytic, directive, conceptual

and/or behavioural/participative processes

• They are responsible for strategic decisions.

Middle Level Management

• 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.
Middle 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.
Lower Level Management
• 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 worker’s problems, suggestions, and
recommendatory appeals etc. to the higher level and higher level
goals and objectives to the workers.
Lower Level Management

• 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.
Management Principles
Management principles are not as firm as
postulates of pure science. They deal with human traits and,
hence, are to be employed creatively given the requirements
of the position. Human behaviour is never inactive and so also
technology, which business.
Management Principles
Therefore, all the principles have to keep step with these changes.

• In the absenteeism of Information and Communications

Technology (ICT), a manager could manage only a small
workforce that too within a restricted geographical area.

• The approach of ICT has developed the ability of the managers to

control over large business domains scattered across the globe.
Management Principles
• In promoting an understanding of the application of principles of
management, it is also helpful to comprehend what these are not.

• The principles of management should be selected from techniques of

management. Techniques are methods or techniques, which include a
group of steps to be taken to achieve sought goals.

• Principles are guidelines to make judgements or actions while studying

techniques. Moreover, principles should also be comprehended as being
different from values.
Taylor’s Principles of Scientific Management Theory
• F.W. Taylor or Fredrick Winslow Taylor, also as the ‘Father of
Scientific Management’ proved with his practical theories
that a scientific method can be implemented to
management.
• Taylor gave much concentration on the supervisory level of
management and performance of managers and workers at
an operational level.
Five Principles of Management by F.W Taylor
1- Science, not the Rule of Thumb

2- Harmony, Not Discord

3- Mental Revolution

4- Cooperation, not Individualism

5- Development of Every Person to his Greatest Efficiency

1- Science, not the Rule of Thumb
• This rule focuses on increasing the efficiency of an organization through
scientific analysis of work and not with the ‘Rule of Thumb’ method.

• Taylor believed that even a small activity like loading paper sheets into
boxcars can be planned scientifically. This will save time and also human
energy.

• This decision should be based on scientific analysis and cause and effect
relationships rather
2- Harmony, Not Discord
• Taylor indicated and believed that the relationship between the
workers and management should be cordial and completely
harmonious.

• Difference between the two will never be beneficial to either side.

Management and workers should acknowledge and understand each
other’s importance.

• Taylor also suggested the mental revolution for both management

and workers to achieve total harmony.
3- Mental Revolution
• This technique involves a shift of attitude of management and
workers towards each other.

• Both should understand the value of each other and work with full
participation and cooperation. The aim of both should be to improve
and boost the profits of the organization.

• Mental Revolution demands a complete change in the outlook of

both the workers and management; both should have a sense of
togetherness.
4- Cooperation, not Individualism

It is similar to ‘Harmony, not discord’ and

believes in mutual collaboration between workers and the
management. Managers and workers should have mutual
cooperation and confidence and a sense of goodwill. The main
purpose is to substitute internal competition with
cooperation.
5- Development of Every Person to his Greatest Efficiency

The effectiveness of a company also relies on the

abilities and skills of its employees. Thus, implementing
training, learning best practices and technology, is the
scientific approach to brush up the employee skill.
Fayol's Administrative Management Theory
The contribution of Fayol to the growth of classical
administrative thought can be studied under three heads:

1. Activities on Industrial Undertaking

2. Elements of Administration

3. Principles of Administration
1. Activities on Industrial Undertaking
1. Technical - Production, manufacture, adaptation

2. Commercial - Buying, selling, exchange

3. Financial - Use of optimum capital and resources

4. Security - Protection of property and persons

5. Accounting - Balance sheet, costs, statistics

6. Administrative - Planning, organizing, command, coordination,

control
2. Elements of Administration
1. Planning- act to forecast future, and draw an action plan accordingly

2. Organizing - structuring human resources into undertake jobs, departments, act

on action plan, use of natural resources.

3. Commanding- It is an act to set the human resources, towards organizational

objectives.

4. Co-ordinating - to develop unity and harmony for all organizational activities.

5. Controlling - It is to see that everything occurs as per conformity with established

rule and expressed command.
3. Fourteen Principles of Administration
1. Division of work
2. Authority and Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of Individual Interest to General Interest
3. Fourteen Principles of Administration
7. Remuneration

8. Centralisation and Decentralisation

9. Scalar Chain

10. Order

11. Equity

12. Stability of Tenure

13. Initiative

14. Sprit de Corps (Harmony or Union is strength)

Max Weber's Theory of Bureaucracy
According to Max Weber's management theory, all
large organizations must use Weberian bureaucracy. According
to Max Weber's theory of bureaucracy, all corporate
responsibilities must be delegated to employees.
Competencies and functional specialties should serve as the
foundation for task division.
Max Weber's Theory of Bureaucracy

Weber advocated for a more organized, rigid

organizational structure known as a bureaucracy. This
impersonal perspective of companies was based on a formal
framework in which suitable management practices included
norms, formal lawful authority, and competence.
Principles of Bureaucracy
• Rationality: Decisions are based on logic and analysis, not emotions.

• Hierarchy: A clear chain of command exists, ensuring authority and

responsibility.

• Rules: Written guidelines dictate actions and decisions.

• Impersonality: Treatment is based on positions, not individuals.

• Specialization: Tasks are divided and assigned based on expertise.

• Career Orientation: Employment is based on qualifications and

advancement opportunities.
Benefits of Bureaucratic Management
• Efficiency: Clearly defined roles and rules lead to streamlined processes.

• Precision: Decision-making is based on logic and data.

• Accountability: Roles and responsibilities are well-documented.

• Predictability: Outcomes can be anticipated due to standardized

processes.

• Scalability: The system can be applied to organizations of various sizes.

Neo-Classical Theory
• The word “Neo” means New and the word “classical” refers to the
work done by economists in the 19th and 20th century.

• The Neo-classical theory emerged since classical approach did not

achieve sufficient production efficiency and workplace harmony.

• Emphasized on understanding human behaviour, needs and attitudes

in the workplace.
Hawthorne Studies
• An extensive investigation was started in 1927 at the Hawthorne
plant, near Chicago, of Western electric company.

• Conducted to understand the relationship between workplace

conditions and employee productivity.

• Researchers initially changed workplace conditions (e.g., lighting,

breaks, work hours) and later focused on social factors like group
dynamics and communication to understand their impact on
productivity.
• The Hawthorne experiments were named after the location where they
were conducted, which was the Western Electric Hawthorne Works in
Chicago, Illinois.

• The experiment was conducted by Elton Mayo in 1920.

• The Hawthorne experiments were a series of studies conducted at the
Western Electric Hawthorne Works in Chicago between the late 1920s
and early 1930s. These experiments are considered a landmark in the
fields of industrial and organizational psychology, as they had a
significant impact on our understanding of workplace behavior,
productivity, and management practices.
Hawthorne Experiments

1. Illumination Experiment

2. Relay Assembly Test Room Experiments

3. Mass Interviewing Programme

4. Bank Wiring Observation Room Experiment

1. Illumination Experiment
• Illumination experiments were undertaken to find out how
varying levels of light affected the productivity.

• How was this experiment conducted ??

• A group of workers were chosen and placed in two separate
groups.
• One group was called as Control Group.

• Other group was called as Experiment Group.

Outcome

• Illumination did not have any effect on productivity but

something else was interfering with productivity.

• Human factor was important in determining productivity but

which aspect was affecting, it was not sure.

• Therefore, another phase of experiments were undertaken.

2. Relay Assembly Test Room Experiments

• Relay experiment test room experiments were designed to

determine the effect of changes in various job conditions on
group productivity.

• The work was related to the assembly of telephone relays.

Outcome
• As each change was introduced, absenteeism decreased, morale
increased, and less supervision was required.

• It was assumed that these positive factors were there because of the
various factors.

• At this time, the researchers decided to revert back to original

position, that is, no rest and other benefits. Surprisingly, productivity
increased further instead of going down.
3. Mass Interviewing Programme

• About 20,000 interviews were taken.

• To determine employees’s attitude towards company,

supervision, insurance, plans, promotion and wages.
Outcome

• Objects, persons or events are carriers of social meanings.

• The personal situation of the worker is a configuration ,

composed of many factors.

• The social demands of the worker are influenced by social

experience in groups.
4. Bank Wiring Observation Room Experiment

• This experiment was conducted on a very small group of

working male workers.

• These men were engaged in the assembly of terminal banks

for the use in telephone exchanges.
Outcome
• Expectations from this experiment were high but the reality
came out to be a bit different.
• Man at work is motivated by more than the satisfaction of
economic needs.
• As a social being, they are members of a group and the
management should try to understand group attitudes and group
psychology.
System Approach
“In this approach, management views
organisations as complex, open systems comprised of
interdependent subsystems. It emphasizes the interconnectedness
of the parts and their interactions with the external environment.
This approach recognizes that organisations are not self-sufficient
but rely on external inputs and adapt to changes in their
environment to thrive.”
Key Concepts of System Approach

• A system is a set of interdependent parts

• Central to the systems approach is the concept of “holism”

• A system can be either open or closed

• Every system has a permeable boundary

Classification of System

• Open System

• Closed System
Decision Theory Approach
Decision theory is a systematic and analytical
approach to decision-making that is widely used in the field of
management. It provides a rational and scientific method for
making choices or decisions when the outcome is uncertain. In the
context of principles of management, decision theory helps
managers make informed decisions by considering various
alternatives, evaluating their consequences, and selecting the best
course of action.
Components of Decision Theory

1. Identifying the Decision Problem

2. Setting Objectives

3. Generating Alternatives

4. Evaluating Alternatives
Components of Decision Theory

5. Decision Making Under Uncertainty

6. Making the Decision

7. Implementing the Decision

8. Monitoring and Feedback

Behavioral Science Approach
This approach is an improved and a more mature
version of the human relations approach to management.
Douglas McGregor, Abraham Maslow, Kurt Lewin, Chester
Barnard, Mary Parker Follett, George Homans, Rensis Likert,
Chris Argyris, and Warren Belnnis are some of the foremost
behavioural scientists who made signal contributions to the
development of the behavioural approach to management.
Behavioral Science Approach

The behavioral science approach to

management focuses on the psychological and sociological
processes (attitude, motivations, group dynamics) that
influence employee performance.
Behavioral Science Approach

The core elements of the behavioural science

approach include motivation, leadership, communication,
group dynamics, and participative management. These
aspects are considered crucial in understanding and managing
human behaviour within organisations.
Key Component of Behavioral Science Approach

Human Relations Movements: founded after the

Hawthorne studies which concluded that the productivity of
the employees will increase if the employer made decisions
based on their natural needs.
Key Component of Behavioral Science Approach

Development of Organizational Behavior concerned

with identifying and managing the attitudes and actions of
individuals and groups.
Key Component of Behavioral Science Approach

Focus on individuals: The behavioural approach emphasizes

the individuals who perform jobs within an organization rather
than solely focusing on the job itself.
Contingency Approach

The contingency approach is the second approach

(the first being the systems approach) that attempts to
integrate the various schools of management thought.
Contingency Approach

According to this approach, management

principles and concepts of various schools have no general
and universal applicability under all conditions. In other
words, there is no one best way of doing things under all
conditions. Methods and techniques which are highly effective
in one situation may not work in other situations.
Contingency Approach

Accordingly, the contingency approach suggests

that the task of managers is to try to identify which technique
will, in a particular situation best contribute to the attainment
of management goals. Managers have, therefore, to develop a
sort of situational sensitivity and practical selectivity.
Contingency Approach
Contingency views are applicable in designing
organisational structure, in deciding the degree of decentralisation, in
planning information decision systems, in motivational and leadership
approaches, in establishing communication and control systems, in
resolving conflicts and managing change, in employee development
and training programmes and in several other areas of organisation and
management.
McKinsey’s 7-S Theory

It was first mentioned in ‘The Art of Japanese

Management’ by Richard Pascale and Anthony Athos in 1981.
They have been investigating how Japanese industry has been
so successful.
McKinsey’s 7-S Theory
• The 7s Model by McKinsey is the strategic tool that carefully analyzes
the company’s organizational design by looking and analyzing the 7
different internal element.

• The main aim of the model is to identify if they are effectively and
efficiently aligned with the core values of the organization and helps it
to accomplish its goals and the overall business objectives.
 McKinsey 7-S Model
1. Structure: This describes how the organization is organized. This
includes roles, responsibilities and accountability.

2. Strategy: This is the organization’s alignment of resources and

capabilities to “win” its market.

3. System: This is the business and technical infrastructure that employees

uses on day to day basis to accomplish their aims and roles.
McKinsey 7-S Model
4. Shared Values: This is the set and traits, behaviour, and characteristics that
the organization believes in. this would include the organization’s vision and
mission.

5. Skill: This is the ability to do the organization’s work. It reflects in the

performance of the organization.

6. Style: This is the behavioural element the organizational leadership uses

and culture of interaction.

7. Staff: This is the employee base, staffing plans and talent management.