UNIT-1 MANAGERS AND MANAGEMENT

Meaning
Role of managers
Processes of management
Historical roots of contemporary management practices.
 WHAT IS MANAGEMENT?
 F.W. Taylor -“Art of knowing what you want to do and
then seeing that it is done the best and cheapest way”.

 Henry Fayol –“To Manage is to forecast, to plan, to

organize, to command, to co-ordinate and to control”.

 Peter F.Drucker –”Management is work and as such it

has its own skills, its own tools and its own techniques”.

 •“Management is the art of getting things done through and

with people”.
CHARACTERISTICS OF MANAGEMENT
 Is a Process /a function.
 Is a Social Process.

 Involves Group Effort.

 Aims at achieving predetermined objectives.

 Required at all levels of management

 Is a Profession

 Is comprised of following functions:

 Planning

 Organizing

 Directing

 Controlling

 Co-ordination

 Is an art and science.

 FUNCTIONS OF MANAGEMENT

Planning
 Look ahead and chart out future course of operation

 Formulation of Objectives, Policies, Procedure, Rules, Programmes and

Budgets

Organizing
 Bringing people together and tying them together in the pursuit of common
objectives.
 Enumeration of activities, classification of activities, fitting individuals
into functions, assignment of authority for action.
Directing
 Act of guiding, overseeing and leading people.

 Motivation, leadership, decision making.

Controlling
 Laying standards, comparing actual and correcting deviation-achieve
objectives according to plans.

Co-ordination
 Synchronizing and unifying the actions of a group of people.
 MANGEMENT IS AN ART AND SCIENCE
Art
 Practical know how

 Technical skills

 Concrete results

 Creativity

 Personalized nature

Science
 Empirically Derived

 Critically tested

 General principles

 Cause and effect relationship

 Universal applicability

MANAGEMENT AS A SCIENCE PROVIDES PRINCIPLES AND AS AN ART HELPS

IN TACKLING SITUATIONS
 DIFFERENCE BETWEEN ADMINISTRATION
AND MANAGEMENT
Administration Management
 Function of industry concerned-  Function of industry concerned-in
with determination of corporate the execution of policy-within the
policy-co-ordination of finance, limits setup by administration.
production and distribution-under
the control of the executive.
 A process of thinking more at  A process of actual operation.
higher levels.
 Higher executive functions in
government public utility etc.  Used for the same function in the
business sector
 WHAT A MANAGER DOES?
 Achieve Objectives through and with people

 Identify and utilitize resources to optimum level

 Plan, Analyze, Interpret, Collaborate, educate, Problem solver

 Communicator, build team, Change agent, Chief executive.

 PROCESS MANAGEMENT
 Process management is the ensemble of activities of planning
and monitoring the performance of a process.
 The term usually refers to the management of business and
manufacturing processes.
 Process management is the application of knowledge, skills,
tools, techniques and systems to define, visualize, measure,
control, report and improve processes with the goal to meet
customer requirements profitably.
 It can be differentiated from program management in that
program management is concerned with managing a group of
inter-dependent projects. But from another viewpoint, process
management includes program management.
 In project management, process management is the use of a
repeatable process to improve the outcome of the project.
HISTORY OF CONTEMPORARY
MANAGEMENT
 The evolution of modern management began in the closing decades of the
nineteenth century, after the industrial revolution had swept through
Europe, Canada, and the United States.

 In the new economic climate, managers of all types of organizations—

political, educational, and economic—were increasingly trying to find
better ways to satisfy customers’ needs. Many major economic, technical,
and cultural changes were taking place at this time.

 Many of the managers and supervisors had only a technical orientation, and
were unprepared for the social problems that occur when people work
together in large groups (as in a factory or shop system). Managers began to
search for new techniques to manage their organizations’ resources, and
soon they began to focus on ways to increase the efficiency of the worker–
task mix.
The driving force behind the evolution of management
theory is the search for better ways to utilize
organizational resources.
THE EVOLUTION OF MANAGEMENT
THEORY

Organizational Environment Theory

Management Science Theory

Behavioral Management Theory

Administrative Management Theory

Scientific Management Theory

1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
Evolution of modern
management began in
the late nineteenth
century, after the
industrial revolution.

Economic, technical and

cultural changes
Mechanization changed
systems like crafts
production into large
scale manufacturing,
where semi or unskilled
workers operated
machineries.
 Small-scale Large-scale
Crafts Production Mechanized Manufacturing

Managed by engineers who only had

Technical orientation

Problems faced:

•How to handle people

•Social problems relating to working together
in large groups
•How to increase efficiency of the worker-task mix
JOB SPECIALIZATION AND THE
DIVISION OF LABOR

Famous economist, Adam

Smith, journeyed around
England in 1700’s studying
the effects of industrial
revolution.
 Crafts-style Factory System

Each worker performed

Each worker responsible for
only 1 or a few tasks to
All tasks
produce

•Poorer performance • Better performance

• Few thousands p/d • 48,000 pins p/d
• Cannot be equally •More skilled at their
Skilled in all tasks
tasks
Job Specialization Division of Labor

Better Organizational
Increased Efficiency
performance
With insights gained from Adam Smith’s observations,
other managers and researchers began to investigate how
to improve job specialization to increase performance.
They focused on how to organize and control the work
process.
F.W. TAYLOR (1856-1915)
SCIENTIFIC MANAGEMENT

The systematic study of

relationships between
people and tasks for the
purpose of redesigning the
work process to increase
efficiency.
Taylor believed that if the amount of time and effort that
each worker expends to produce a unit of output can be
reduced by increasing specialization and division of
labor, the production process will become more efficient.
TAYLOR’S PRINCIPLES

1. Study the way workers perform their

tasks, gather all informational job
knowledge that workers possess,
and experiment with ways of
improving how tasks are
performed
2. Codify the new methods of performing tasks into written rules
and standard operating procedures.
3. Carefully select workers who possess skills and abilities that
match the needs of the task, and train them to perform the
task according to the established rules and procedures.
4. Establish a fair or acceptable level of performance for a
task, and then develop a pay system that provides a
reward for performance above the acceptable level.
This scientific management became nationally known, but
the selective implementation of the principles created
more harm than good.
 Workers felt that as their performance increased, managers
required them to do more work for the same pay.
 Increases in performance meant fewer jobs and greater threat
of layoffs
 Monotonous and repetitive

 Dissatisfaction
TIME AND MOTION STUDY
1. Break and analyze every individual action
necessary to perform a particular task into
each of its component actions
2. Find better ways to perform each component
action
3. Reorganize each component action so that it is
more efficient-less cost of time and effort
4. Their goal was to maximize the efficiency
with which each individual task was
performed.
ADMINISTRATIVE MANAGEMENT
THEORY
Theory of Bureaucracy

Fayol’s Principles of Management

ADMINISTRATIVE MANAGEMENT

The study of how to create an

organizational structure that leads to
high efficiency and effectiveness.
THEORY OF BUREAUCRACY

Max Weber (1864-1920)

Developed the principles of bureaucracy-a formal system

of organization and administration designed to ensure
efficiency and effectiveness.
 System of written rules and
SOPs that specify how
Employees should
behave

Clearly specified Clearly specified

A bureaucracy Hierarchy of
System of task and
Should have authority
Role relationships

Selection and evaluation

System that rewards
Employees fairly and
Equitably.
5 PRINCIPLES:
 A Manager’s formal authority derives from the position
he or she holds in the organization

 People should occupy positions because of their

performance, not because of their social standing or
personal contacts.
 The extent of each position’s formal authority and task
responsibilities and its relationship to other positions in an
organization, should be clearly specified.

 Authority can be exercised effectively in an organization when

positions are arranged hierarchically, so employees know
whom to report to and who reports to them.

 Managers must create a well-defined system of rules, standard

operating procedures and norms so that they can effectively
control behavior within an organization.
RULES
Formal written instructions that specify actions to be taken
under different circumstances to achieve specific goals.

Rule: At the end of the day employees are to leave their

machines in good order.
STANDARD OPERATING PROCEDURES
Specific sets of written instructions about how to perform a
certain aspect of a task.

SOP: Specifies exactly how they should do so, which

machine parts should be oiled or replaced.
NORMS
Norms are unwritten, informal codes of conduct that
prescribe how people should act in particular situations.

E.g.: An organizational norm in a restaurant might be that

waiters should help each other if time permits.
FAYOL’S PRINCIPLES OF
MANAGEMENT

Henri Fayol (1841-1925)

14 PRINCIPLES OF MANAGEMENT:
1. Division of Labour
2. Authority and Responsibility
3. Unity of Command
4. Line of Authority
5. Centralization
6. Unity of Direction
7. Equity
1. Order
2. Initiative
3. Discipline
4. Remuneration of Personnel
5. Stability of tenure of Personnel
6. Subordination of Individual Interests to the Common
Interest
7. Esprit de Corps
1. DIVISION OF LABOUR

Job specialization and the division of labour should

increase efficiency. Pointed out the downside of too
much specialization; so workers should be given more
duties to perform.
2. AUTHORITY AND RESPONSIBILITY

Managers have the right to give orders and the power to

exhort subordinates for obedience.
3. UNITY OF COMMAND

An employee should receive orders from only one superior.

4. LINE OF AUTHORITY

The length of the chain of command that extends from the

top to the bottom of an organization should be limited.
5. CENTRALIZATION

Authority should not be concentrated at the top of the chain

of command.
6. UNITY OF DIRECTION
Those operations within the organization that have the
same objective should be directed by only one manager
using one plan. For example the personnel department in
a company should not have two directors each with a
different hiring policy.
7. EQUITY

Managers should be both friendly and fair to their

subordinates.
8. ORDER

Materials and people should be in the right place at the

right time. People should be in the jobs that they are
most suited to.
9. INITIATIVE

Subordinates should be given the freedom to conceive and

carry out their plans, even though some mistakes may
result.
10. DISCIPLINE
Members in an organization need to respect the rules and
agreement that govern the organization.

To Fayol, discipline results from good leadership, fair

agreements and judiciously enforced penalties for
infractions.
11. REMUNERATION OF PERSONNEL

Compensation for work done should be fair to both

employees and employers.
12. STABILITY OF TENURE OF
PERSONNEL

A high employee turnover rate undermines the efficient

functioning of an organization.
13. SUBORDINATION OF INDIVIDUAL
INTERESTS TO THE COMMON INTEREST

Interests of employees should not take precedence over the

interests of the organization as a whole.
14. ESPRIT DE CORPS
Promoting team spirit will give the organization a sense of
unity.

To Fayol, even a small factors should help to develop the

spirit. He suggested, for example, the use of verbal
communication instead of formal, written
communication whenever possible.
BEHAVIORAL MANAGEMENT
THEORY
 The Work of Mary Parker Follet

 The Hawthorn Studies and Human Relations

 Theory X and Y
BEHAVIORAL MANAGEMENT

The study of how managers should behave to motivate

employees and encourage them to perform at high levels
and be committed to the achievement of organizational
goals.
MARY PARKER FOLLET
 Mary Parker Follett advocated for a human relations
emphasis.
 Her work contrasted with the "scientific management" of
Frederick W. Taylor.
 Mary Parker Follett stressed the interactions of
management and workers.
 Follett was one of the first to integrate the idea of
organizational conflict into management theory, and is
sometimes considered the "mother of conflict resolution.“
 She coined the words "power-over" and "power-with" to
differentiate coercive power from participative decision-
making.
 She was of the view that authority should go with knowledge.
 Advocated involvement of workers in job analysis and work
development process.
 Managers of different departments should communicate with
each other directly.
 Cross-functioning
THE HAWTHORNE STUDIES

Hawthorn effect is the finding that a manager’s behavior or

leadership approach can affect worker’s level of
performance.
HUMAN RELATIONS MOVEMENT

Advocates of the idea that supervisors receive behavioral

training to manage subordinates in ways that elicit their
cooperation and increase their productivity.
INFORMAL ORGANIZATION

The system of behavioral rules and norms that emerge in a

group.
ORGANIZATION BEHAVIOR

The study of the factors that have an impact on how

individuals and groups respond to and act in
organizations.
THEORY X AND THEORY Y
Douglas McGregor proposed that two sets of assumptions
about how work attitudes and behaviors not only
dominate the way managers think but also affect how
they behave in organizations. He named these two
assumptions Theory X and Theory Y.
THEORY X
Assumptions:
 Average worker is lazy

 Dislikes work

 Will try to do as little as possible

 Have little ambition and avoid responsibility

MANAGERS WHO ACCEPT THEORY X

To keep performance high, workers must be supervised

closely and their behaviors be controlled by means of
“the carrot and stick”-rewards and punishments.
 Design and shape work setting to maximize control over
workers’ behaviors.
 Minimize the workers’ control over the pace of work.
 Focus is on development of rules, SOPs and a well-defined
system of reward and punishment to control behavior.
 Managers see little point in giving autonomy to solve their own
problems.
 Managers see their role as closely monitoring workers.
THEORY Y
Assumptions:
 Workers are not inherently lazy

 Do not naturally dislike work

 If given the opportunity, will do what is good for the

organization.
 Characteristics of the work setting determine whether workers
consider work to be a source of satisfaction or punishment.
 Managers do not need to closely control workers’ behavior.

 They exercise self-control

“The limits of collaboration in the organization are not limits of
human nature but of management’s ingenuity in discovering
how to realize the potential represented by its human
resources.”
 Decentralize authority
 More control of workers over their jobs

 Accountable for their jobs

 Managers’ role is not to control but to provide support

and advice and to evaluate them on their ability
MANAGEMENT SCIENCE THEORY

An approach to management that uses rigorous quantitative

techniques to help managers make maximum use of
organizational resources.
 Quantitative Techniques

 Operations Management

 Total Quality Management

 Management Information Systems

ORGANIZATIONAL ENVIRONMENT
THEORY

The set of forces and conditions that operate beyond an

organization’s boundaries but affect a managers ability to
acquire and utilize resources.