Introduction To PPM

Topic Heading
1 Introduction
2 Definition
3 Concept of Management
4 Management Art Or Science
5 Management Function
Introduction
The world has changed, is changing, and continues to change.
The dynamic nature of today’s organizations means both rewards and

challenges for those individual who will be managing the organizations in
the changing environment.
Management is the organizational process that aids in creating a service or

product from the raw materials at hand
Management is universal in the modern industrial world and there is no

substitute for good management.
.
Introduction
It makes human efforts more productive and brings better technology,

products and services to our society.
It is a crucial economic resource and a life-giving element in business.
Without proper management, the resources of production (men, machines

and materials) cannot be converted into production.
Thus management is a vital function concerned with all aspects of the

working of an organization
Introduction
Peter Drucker –Without management ,a country’s resources of

production remains resources and never becomes production.
Principles of management are now used not only in business
organisations but also in educational, social, military and
Government.
In a competitive environment the quality and performance of
Management determines the success of an organisation.
Nowadays no organisation can hold its monopoly on capital or
technology. But good management can definitely become its monopoly
and give it a competitive edge over its rivals.
Introduction
Management is a must to accomplish desired goals through group action.
It is essential to convert the disorganized resources of men, machines,

materials, and methods into a useful and effective enterprise.
Thus management is the function of getting things done through

people and directing the efforts of individuals towards a common objective
Definition
Management is an art or technique of getting things done.
Management is a process of planning, organizing, staffing, directing and

controlling.
Management is a distinct activity of any organization.
Management is a discipline, which represents a body of knowledge.
Management denotes a group of people.

Definition
Mary Parker Follet
Management is the art of getting things done through people.
George Terry
Management is the process consisting of planning, organizing, actuating
and controlling, performed to determine the accomplished objectives by
the use of people & resources.
Planning deciding the future activities based on some method
Organizing Co-ordinates the human & material resource
Actuating Motivates & direct Subordinate
Controlling Ensure that there is no deviation from the Plan

Definition
Management is the process of designing and maintaining an environment in which

individual working together in groups efficiently accomplish the selected arm.
The following points explain this definition.

1. Management functions: As Manager, person carry out the managerial function of
planning, organizing, staffing, leading and controlling
2. Role of Mgmt: Manager are charged with the responsibility taking actions that will
make it possible for individuals to make their best contribution to the group
objective.
Mgmt thus applies to small and large organization, to profit and non-profit
organization to manufacturing as well as service industry.
CONCEPT OF MANAGEMENT
The term management is used in three alternative ways.
Management as a discipline:
Since management prescribes various principles and how these principles
can be applied in managing an organization; it has orientation of both
science and art.
Management as a group of people:

We refer to management as a group of people in which we include all those
people who are responsible for the managerial functions
Management as a process:
As a process it includes various activities and sub-activities.
MANAGEMENT-ART OR SCIENCE
Mary Parker Follet - Management is the art of getting things done through people.
It states management deals with the application of knowledge; but it also includes
acquisition of knowledge.
Scientific Study:
If the methods of enquiry are systematic and empirical Information can be ordered
and analyzed. Results are cumulative and communicable.
Management is more of behavioral science and not as natural or exact

science.
MANAGEMENT-Profession
Existence of Knowledge
Development due to the need for managing complex and large organization.
Acquisition Of Knowledge
A professional is one who acquires knowledge through formal training and is an
expert in the field. Mangt thus cannot be regarded as profession because entry to
managerial cadre is not restriction to only management graduate
Professional Association
All India Management Association with local chapters.
Ethical Codes
Management cadre have power due to their expertise in their field which should not
be misused at the cost of the society, the focus should be on all stakeholders
Service Motives
Social Interest should be taken in consideration while charging fees
MANAGEMENT- UNIVERSAL NEED
MANAGMENT FUNCTIONS
Planning
Controlling Organising
Directing Staffing
Professor Haimann describes these functions to be of circular continuous

movement
Evolution of Management
Management Thought Period

Early Contributors Up to 19th century
Scientific Management 1900-1930

Administration 1916-1940
Human Relative approach 1930-1950
Social system Approach 1940-1950
Decision theory 1945-1965
Management Science app. 1950-1960
Human behavior approach 1950-1970
System approach 1960 onward
Contingency approach 1970 onward
Early contributors
Organizations Have Existed for Thousands of Years testifies to the of early

management practice existence
ability to create the Pyramids, Great Wall of China
Significant Pre-Twentieth-Century Events

Wealth of Nations - Adam Smith
•division of labor - breakdown of jobs into narrow and repetitive tasks

increased productivity
Industrial Revolution
substitution of machine power for human power
large organizations required formal management
Scientific Management
Introduced by Frederick Winslow Taylor in the USA.
Scientific management was concerned essentially with improving the operational

efficiency at the shop floor level.
Defined as
Scientific management is concerned with knowing exactly what you want the men
to do and then see in that they do it in the best and cheapest way
emphasis on solving management problems in a scientific way and hence is called

as the father of scientific management.
carried out experiments in Midvale Steel Company and Bethlehem Steel Company
about how to increase the efficiency of people.
His contributions are complied in his book Scientific Management. And can be
described in two parts
Elements and tools of Scientific Management
Principles of scientific Mangement
Elements and Tools of Scientific Management

Early workers planned how to perform the job & what tools
to be used, while the superiors only check whether the
Separation of workers were performing.
Planning & FW emphasized on Separation of planning from actual
Doing doing
Planning should be done by the supervisor and the worker
should emphasis on operational work
Supervision system was required to handle planning &

Supervise the worker
Functional Concept of foremanship was developed .
Foremanship In this system , 8 persons were involved to direct the
Workers
Against the unity of command
Workshop Manager
Planning Incharge Production Incharge
Route Instruction Time & Cost Discipli-

Clerk Card Clerk Clerk narian
Maintenance
Speed Boss Inspector Gang Boss
Foreman
To find the best of doing a job. Determined by

Time-Motion-Fatigue Study.
Time Study: determine the movement time.
Job Analysis to decide fair work of a period
Motion Study: elimination of wastage in movement.
reduce performance time & fatigue
Fatigue Study: determine the amount & frequency
of rest required in job completion.
Maintenance of standards in respect of

Instruments and tools
Period & Amount of work
Standardization
Working Condition
Cost of Production
Done on the basis of Job Analysis

Allocation of job based on the

Scientific Education
Selection Work Experience
&Training Skills
Emphasis on training to improve performance
Motivation to improve performance

Introduced the Piece Rate System
Financial Higher wages on completion of assigned job
Lower wages on non completion
Incentives
Determination of wages on
Individual performance not position
knowledge and not estimation
Emphasis on economy & profit.
Advocated the use of Cost Estimates & Cost Control

Economy
Achievement by
Effective utilization of resources
Reducing wastages
Scientific mangt . depends on MUTUAL CO-OPERATION

between magnt & workers.
Mental
Advocates mental change from conflict to co=operation
Revolution
In its absence principles of Scientific Mgnt. cannot be
applied
Principles of Scientific Management
Rule of thumb emphasis on ESTIMATES

Replacing Rule
Taylor emphasis application of organized knowledge
Of Thumb
Days fair work
With Science standardization
differential piece rate
Should be measured & not estimated
Attempts to obtain harmony
Harmony in group harmony can be achieved by maintaining give &

Group take situation.
SM is based on mutual Confidence, co-operation.
Suggested
Co-operation
Substitution of war with peace
replacement of suspicious watchfulness with
confidence
Continuous improvement in performance and increase in

Maximum production
Output
Development Through scientific selection and providing them training

Of Workers
Training should be given to keep them fit for next job
Administration : 1916-1940
The management thought given by HENRY FAYOL and hence called as the
FATHER OF ADMINISTRATION MANAGEMENT.
Focus of the theory was on development of broad administration principles

applicable to general & higher managerial levels.
Perspective unlike Talyor beyond shop floor and physical production processes
covering general administration, managerial function and organization process
Divided activities of business enterprise into

• Technical
• Commercial
• Financial
• Accounting
• Security
• Administration
Administration : 1916-1940
His emphasis was on administration/ managerial activity and
Defined management in terms of Planning, Organizing, Commanding,

Coordinating and Controlling
Emphasized on
All Organization Levels Administrative All types Organization

Bottom Top Management Profit Not- for- Profit
Administration : 1916-1940 14 Principles Of Management
Principle of Specialization, increases efficiency &

Division Of Work
output
Authority & Authority to give orders & Obedience

Responsibility
Responsibility to do & get the work done
good supervision at all levels

Discipline fair agreement between employee & employer
Rules & Regulations
Unity Of Command Instruction from one superior only

Avoids conflicts of instructions
Responsibility
Alignment of individual Goals to Organization Goals

Unity of Direction
Subordination of
Focus on maximizing Production over personal
individual Interest to
interest of money, recognition, status
General interest
Fair
Remuneration Based on business condition, cost of living,
Acts as a motivator
Centralization decision making role reserved to few

hierarchy of authority from the highest to the

Scalar Chain
lowest for the purpose of communication
States the superior subordinate relation
Principle of right place for everything & for every

Order person.
can be achieved through scientific selection of
competent person & job assignment
Security of job
Stability of tenure
encourage long term association
Freedom to think & execute a plan

Initiative motivates to innovate
encourages long term association
Fair Treatment, combination of kindness & Justice

Equity
ensure healthy industrial relation
Means team spirit

encourage personnel to work in team.
required to realize objectives
Esprit de corps
Avoid Divide & Rule
Use of Verbal Communication to remove
misunderstanding
Hawthorne Experiments and Human Relations
The essence of human relation approach is contained into 2 pts

organization situation should be view as a social terms as well as economic
and technical term.
Social behaviors of group can be understood using a clinical method
Study to analysis of human factor in organization was made in the form of

Hawthorne experiments under Elton Mayo
Experiments were carried in 4 phases

to determine the effect of changes in illumination on productivity.
to determine the effect of changes in hours and working conditions on
productivity.
to determine the workers attitude and sentiments
analysis of social organisation
Illumination Experiments
to determine the effect of changes in illumination on productivity
The hypothesis was that with higher level of illumination, productivity increases
2 group
Experiment group: exposed to varying intensities
control group: constant intensities.
productivity increased in both the groups
productivity dropped only when illumination was drooped to monlight
conclusion: illumination was not the main factor, human factor was important
Relay Assembly Test Room Experiments

to determine the effect of changes in job conditions on productivity
set up a relay assembly test room and choose 2 girls

girls were asked to choose 4 co workers
Time span 4 to 12 weeks
2 group
opportunity to express their viewpoint
allowed to take decision on matters concerning.
incentive was linked to small group of 5 than 100. productivity increased
2 five minutes rest period in the morning and evening session was increased to 10
minutes productivity increased
rest period reduced but frequency increased : productivity decreased
coffee and sandwich was served in the morning & Snacks in the evening productivity
increased
change in work hours:
left early in the evening by ½ an hour
elimination of Saturday work productivity increased
Mass interviewing programme

to determine the employees attitude towards company, supervision, insurance plans,
promotion and wages
method of direct interviewing replaced by non directive interviewing
Findings
Complaint was not an objective recital of facts but personal disturbance

Objects, persons, events are carrier of social meanings, and become related to
employee satisfaction and dissatisfaction based on the personal situations
personal situations is a configuration of personal preference involving
sentiments, desires and interest
social organization represents a system of values, from which workers derive
satisfaction or dissatisfaction
social demands are influenced by social experience in groups inside and outside
the work plant
Bank wiring observation room

to determine & analysis of social organization at work
Hypothesis: in order to earn more workers would produce more and in order to take
the advantage of group bonus help co worker to produce more
Findings
fear of unemployment
fear of raising the standard
protection of weaker workers
satisfaction on the part of management
Implications of Hawthorne Experiments
Human relations involves motivating people in organization in order to develop

Team worker which are important for motivating people at workplace
major findings
Social Factors in output
Group Influence
Conflicts
Leadership
Supervision
Communications
Thank You
Rajeshwari Patil
IBMR – Pune

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Topic Heading

4 Management Art Or Science

The world has changed, is changing, and continues to change.

The dynamic nature of today’s organizations means both rewards and

Management is the organizational process that aids in creating a service or

Management is universal in the modern industrial world and there is no

It makes human efforts more productive and brings better technology,

It is a crucial economic resource and a life-giving element in business.

Without proper management, the resources of production (men, machines

Thus management is a vital function concerned with all aspects of the

Peter Drucker –Without management ,a country’s resources of

Management is a must to accomplish desired goals through group action.

It is essential to convert the disorganized resources of men, machines,

Thus management is the function of getting things done through

Management is an art or technique of getting things done.

Management is a process of planning, organizing, staffing, directing and

Management is a distinct activity of any organization.

Management is a discipline, which represents a body of knowledge.

Management denotes a group of people.

Planning deciding the future activities based on some method

Organizing Co-ordinates the human & material resource

Actuating Motivates & direct Subordinate

Controlling Ensure that there is no deviation from the Plan

Management is the process of designing and maintaining an environment in which

The following points explain this definition.

The term management is used in three alternative ways.

Management as a group of people:

Management is more of behavioral science and not as natural or exact

Professor Haimann describes these functions to be of circular continuous

Management Thought Period

Scientific Management 1900-1930

Organizations Have Existed for Thousands of Years testifies to the of early

Significant Pre-Twentieth-Century Events

•division of labor - breakdown of jobs into narrow and repetitive tasks

Introduced by Frederick Winslow Taylor in the USA.

Scientific management was concerned essentially with improving the operational

emphasis on solving management problems in a scientific way and hence is called

Elements and Tools of Scientific Management

Supervision system was required to handle planning &

Planning Incharge Production Incharge

Route Instruction Time & Cost Discipli-

Elements and Tools of Scientific Management

 To find the best of doing a job. Determined by

 Maintenance of standards in respect of

 Done on the basis of Job Analysis

Elements and Tools of Scientific Management

 Allocation of job based on the

 Emphasis on training to improve performance

 Motivation to improve performance

Elements and Tools of Scientific Management

 Emphasis on economy & profit.

 Advocated the use of Cost Estimates & Cost Control

 Scientific mangt . depends on MUTUAL CO-OPERATION

Principles of Scientific Management

 Rule of thumb emphasis on ESTIMATES

 Attempts to obtain harmony

Harmony in  group harmony can be achieved by maintaining give &

Principles of Scientific Management

 SM is based on mutual Confidence, co-operation.

 Continuous improvement in performance and increase in

Principles of Scientific Management

Development Through scientific selection and providing them training

Focus of the theory was on development of broad administration principles

Supervision system was required to handle planning &

To find the best of doing a job. Determined by

Maintenance of standards in respect of

Done on the basis of Job Analysis

Allocation of job based on the

Emphasis on training to improve performance

Motivation to improve performance

Emphasis on economy & profit.

Advocated the use of Cost Estimates & Cost Control

Scientific mangt . depends on MUTUAL CO-OPERATION

Rule of thumb emphasis on ESTIMATES

Attempts to obtain harmony

Harmony in group harmony can be achieved by maintaining give &

SM is based on mutual Confidence, co-operation.

Continuous improvement in performance and increase in

Development Through scientific selection and providing them training

Principle of Specialization, increases efficiency &

Authority & Authority to give orders & Obedience

good supervision at all levels

Unity Of Command Instruction from one superior only

Alignment of individual Goals to Organization Goals

Centralization decision making role reserved to few

hierarchy of authority from the highest to the

Principle of right place for everything & for every

Freedom to think & execute a plan

Fair Treatment, combination of kindness & Justice

Means team spirit

set up a relay assembly test room and choose 2 girls

method of direct interviewing replaced by non directive interviewing

Complaint was not an objective recital of facts but personal disturbance