MANAGEMENT

MANJUNATH VS
ASSISTANT PROFESSOR
Acharya Institute of Technology
 Learning objectives
Understand the meaning of Management
Understand the nature, purpose and functions of
management
Understand whether Management is science or
an art
Understand the systems model of Management
Identify the contributions of F.W.Taylor and
Henry Fayol.
 Learning objectives
Describe the emergence of behavioral
sciences
Identify the significance of Hawthorne
studies.
Describe the recent contributions to
management thought.
Understand the concept of social
responsibility.
 MANAGEMENT
Management is the process of designing
and maintaining an environment in which
individuals, working together in groups,
efficiently accomplish selected aims-Harold
Koontz.
Management is the art of knowing what you
want to do and then seeing that it is done in
the best and cheapest way-F.W.Taylor.
 MANAGEMENT
Management makes work productive and
the worker achieving. One true and most
important resource in the organization is
human resource. Mangers must work
effectively with their subordinates to
achieve maximum performance-Peter
F.Drucker.
Management is getting the work done
through people most efficiently and
effectively.
 MANAGEMENT
Management is the coordination of all
resources through the process of planning,
organizing, directing and controlling in
order to attain the stated objectives-Sisk.
Management is the effective utilization of
human and material resources to achieve
the enterprise objectives-William F.Glueck.
 MANAGEMENT
Management is the accomplishment of results
through the efforts of other people-Lawrence
A.Appley.
To manage is to forecast and to plan, to
organize, to command, to coordinate and to
control-Henry Fayol.
Management is the process of planning,
organizing, actuating, and controlling to
determine and accomplish the objectives by the
use of people and other resources-Terry G.
 Nature of Management
All the managers carry out the managerial
functions of planning, organizing, staffing,
leading, and controlling.
Management applies to any kind of organization.
It applies to managers at all organization levels.
The aim of all managers is same: to create a
surplus.
Managing is concerned with productivity, which
implies effectiveness and efficiency.
 ORGANIZATION
Organization is a mechanism consisting of
group of people who are interrelated and
interacting with each other in order to
achieve the set objectives.
We define an organization as a group of
people working together to create surplus.
In business organizations, this surplus is
profit, and for nonprofit organization it is
satisfaction of needs.
ORGANIZATION

Distinct purpose Deliberate structure

People
 Administration
Administration involves setting up of
policies and procedures. It is a policy
making function.
It is done at top level management and
lower level management is responsible for
execution of policies and operations.
Thus administration is a branch of
management.
Management, administration and
organization
Administration sets the policies,
Management implements these policies
through the organization mechanism.
 Efficiency
Efficiency refers to getting the most output
from the least amount of inputs.
It is the ratio of outputs to inputs.
Since managers have to deal with scarce
inputs of all resources like people, money,
machine, equipments, materials, they are
concerned with efficient use of resources.
Efficiency is referred as doing things right.
 Effectiveness
Effectiveness is concerned with the ends
or attainment of goals.
Effectiveness is the central element in the
process of management that enables
achieving the stated organizational
objective.
Effectiveness is doing the right things.
Effectiveness and efficiency

Efficiency Effectiveness

Low resource Goal

wastage attainment

Management strives for:

Low resource wastage (High efficiency)
High goal attainment (High effectiveness)
Balancing between efficiency and
effectiveness

Effectiveness

Efficiency
The job gets done,
But…….. Limited resources
…………. wasted

Too much emphasis on effectiveness

Balancing between efficiency and
effectiveness

Efficiency
Effectiveness
Available resources
The job does not gets Are under utilized
Done because…….

Too much emphasis on efficiency

Balancing between efficiency and
effectiveness

Effectiveness Efficiency

The job gets done The limited resources

And …….. Are not wasted

Balanced emphasis on efficiency and effectiveness

Levels of Management

Top
level

Middle
level

Lower
level
 Managerial Skills
Technical skills
Human skills
Conceptual skills
 Managerial Skills
Technical Skills: Technical skills include
knowledge and proficiency in activities
involving methods, processes and
procedures.
Human Skills: Human skills involve the
ability to work well with other people both
individually and in a group.
 Managerial Skills
Conceptual Skills: These are the skills to
think and to conceptualize about abstract
and complex situations.
 Managerial Skills

Top
Level
Conceptual
skill
Middle Human
level Relation
skill

Lower Technical
level skill
 Functions of Management
Planning
Organizing
Staffing
Motivating
Leading
Controlling
 Planning
It is the primary function of management.
Planning is formulation of future course of
action.
Planning makes things happen.
Planning function is performed by
managers at all levels.
Failure to plan is planning to failure.
 Planning
Planning involves determination of
 What is to be done?
 Why it is to be done?
 Who is to do?
 When it is to be done?
 Where it is to be done?
 How it can be done?
 Organizing
Organizing is the process of creating a
mechanism consisting of group of people
interrelated with each other and working
towards common objectives.
It is the process of determining the
authority and responsibility relationship
between individuals.
 Organizing
Organizing involves
 Determination of objectives
 Listing the activities
 Grouping the activities
 Assigning definite responsibilities to
individuals
 Delegating the required authority
 Providing physical facilities
 Staffing
Staffing is the process of supplying the
required man power to the organization and
maintaining the human resources.
Staffing involves Human resource planning,
recruitment and selection, placement,
induction, training and development,
compensation management, performance
appraisal, and employee welfare activities.
 Motivating
Motivation refers to the inner drive within
an individual to put efforts for achieving a
goal.
Motivation is which accounts for intensity,
quality and persistence of efforts for
achieving a goal.
Motivating is ability to inspire others in
putting the efforts for attaining gaol.
 Leading
Leadership is the ability of an individual to
influence the behavior of others for
achieving desired goals.
Leaders influence the followers and create
shared vision and energize their behavior
for working towards common objectives.
A manager must be a good leader.
 Controlling
It is the process of checking the actual work
and comparing it with predetermined
standards in order to find any deviations so
that timely corrective actions can be taken.
Planning and controlling are two closely
related functions.
Controlling ensures completion of a task as
per the plan.
 Controlling
Controlling involves
 Establishment of standards
 Measuring actual work
 Comparison and taking corrective actions.
Is management a science or an
art?
What is Science?
Science is a body of systematic knowledge
obtained through study and practice.
Science comprises of clear concepts, theory,
and other accumulated knowledge developed
from hypothesis, experimentation, and analysis.
Six important elements of science are thinking,
discovery of facts, verification, prediction,
measurement and expression.
 Science
Any branch of science must satisfy following
conditions
Existence of a systematic body of knowledge
encompassing a wide array of principles.
The principles must be evolved on the basis of
constant enquiry and examination
The principles must explain a phenomenon by
establishing cause effect relationship.
The principles must be amenable for verification,
in that they must be universally acceptable.
 Management as Science
Management is a systematic body of
knowledge consisting of principles,
generalizations, approaches, and
concepts applied in practical situations.
This knowledge serves for managers to
understand the process of management
and problems involved in it.
 Management as Science
The principles, generalizations and
concepts of management have been
developed and formulated on the basis of
observation, research analysis and
experimentation as in case of principles of
other sciences.
Like other science management principles
are also based on relationship of cause and
effect.
 Management as Science
Management knowledge and its principles
can be transferred from one manager to
another and it can be taught.
Management principles are universally
applicable to all types of organizations.
 Art
Art refers to know-how-the ways of doing things.
The focus is on skills with which activities are
performed.
Art basically refers to application of knowledge,
personal skills, and know-how in a specific for
efficiently achieving a given objective.
It is concerned with best way of doing things and
hence it is personalized in nature.
 Management as an art
Management involves getting things done
through people. Compared to other
resources people who constitutes the
human resource of an organization are
unique in respect to their aspirations,
attitudes, perceptions etc. Understanding
human behavior and developing good
interpersonal relations is a skill.
 Management as an art
The management knowledge like any
other art has practical application. The
application is personalized, depending on
the individual manager. Though the
concepts, principles and generalizations
may be same, the manner in which they
are used differs from manager to
manager.
 Management as an art
Manager gains experience with continuous
application of management knowledge to
practical situations with the passage of
time, the manager gathers more and more
experience which becomes his personal
possession. It is similar to any art as
practice makes a manger perfect.
 Management as an art
Application of management calls for
innovations and creativity. Creative
thinking with application of management
principles makes a manager more efficient.
Business organizations exist in an
environment and changes I environment
will affect the organization. Prediction of
environmental changes may require
intuition and judgment.
Management as a Profession
The existence of a organizes and
systematic body of knowledge.
Formalized methods of acquiring
knowledge and skills.
Existence of ethical code to regulate the
behavior of the members of the
profession.
A concern for social responsibility
Charging of fee based on service.
Development of management
thought

Management
Theories

Historical Scientific Administrative Quantitative Behavioral

background Management Management Approach Approach

Early
examples
Early
Adam Smith advocates

Industrial Hawthorne
Revolution Studies
 FW Taylor (1856-1915)
Fredrick Winslow Taylor is known as father of
Scientific Management.
Taylor’s concern through out his life was to
increase productivity and efficiency.
He introduced concept of a fair day’s work and a
fair day’s pay.
Scientific management is kind of management
which conducts business by standards
established by facts gained through systematic
observation, experiment and reasoning.
 Taylor’s Contributions
1.Taylor’s Scientific principles
Science, not the rule of thumb. Develop a
science for each element of an individual’s work,
which will replace rule of thumb method.
Harmony, not discard. Obtain harmony in group
action rather than discard.
Co-operation, not individualism. Achieve co-
operation of human beings rather than chaotic
individualism.
 Taylor’s Contributions
1.Taylor’s Scientific principles
Maximum output, in case of restricted
output.
Developing the workers to the fullest
extent possible for their own and for their
company’s prosperity.
 Taylor’s Contributions
2. Time and motion study.
3.Differential payment system.
4.Functional organization.
5.Scientific recruitment and training.
 Feature of scientific
Management
Developed standard method for performing each
job.
Selected workers with appropriate abilities for
each job.
Trained workers in standard method.
Supported workers by planning work and
eliminated interruptions.
Provided wage incentives to workers for
increased output.
 Followers of Taylor
Henry L Gantt
He emphasized on the concept of mutuality of
interest between management and workers and
stressed the need for harmonious relationship.
Gantt believed that willingness to use correct
methods is as important as knowing the
methods and having the skills.
He refined Taylor’s incentive system.
Gantt Charts
 Frank and Lillian Gilberth
Taylor’s ideas of work study were strongly
supported and developed by famous
husband and wife team of Frank and
Lillian Gilberth.
Frank classified all movements employed
in industrial work into 17 basic types called
Therbligs.
He advocated that morale of workers can
be increased by reducing fatigue in work.
 Bureaucratic Management
Max Weber (1860-1920)
Division of labour
Positions organized along a hierarchy
Rules and procedures
Administration policies
Qualification based promotions
 Henry Fayol -Administrative
Management (1841-1925)
He focused more on organizations rather
than on individuals.
Developed management functions.
Developed broad administrative principles.
Was a mining engineer in a coal mine and
later became managing director.
 Contributions of Fayol
1.Classification of industrial activities-
Technical, Commercial, Financial,
Security, Accounting, and Managerial.
Principles of management.
Elements of management-Planning,
organizing, commanding, coordinating and
Controlling.
 Principles of management
Division of work
Authority and responsibility
Discipline
Unity of command
Unity of direction
Sub-ordination of individual to general
interest.
 Principles of management
Remuneration
Centralization
Scalar chain
Order
Equity
Stability
Initiative
Esperit De corps
 Emergence of Industrial
Psychology
Hugo Munsterberg is known as father of
Industrial Psychology.
He worked on application of psychology to
industry.
 How to find people whose mental qualities best fit for
the work they are to do.
 Under what psychological conditions the greatest and
most satisfactory output can be obtained from the
work of every person.
 How a business can influence workers in such a way
as to obtain the best possible results from them.