Unit 2 Introduction to Management and Management Process

Topics to study
Definition and Importance of Management

Evolution of Management Thought

Principles of Management Management Process/ Functions, a System View

Definition
According to Harold Koontz,

Management is an art of getting things done through and with people in formally organized groups. It is an art of creating an environment in which people can perform as individuals and can co-operate towards the attainment of group goals
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

Summarizing the definitions:

Management is about people and other resources

There are goals but goals of the individual and

the organization has to be managed Management involves creating an environment where people and resources interact to produce the goals.

Importance of Management
It helps in achieving group goals ( training of

employees so that trained employee can perform better at new branch ) Optimum utilization of resources ( less staff, proper planning) Reduces costs ( open ambience, less expensive employees ) Establishes sound organization ( smooth & coordinated effort ) Establishes equilibrium ( w.r.to change in environment ) Essentials for prosperity of society ( economic

Evolution of Management Thought

Scientific management theory Though was led by Fredrick W. Taylor, and he enunciated the principles of scientific management in 1911 after experimenting on the shop floor of a steel company as a supervisor. He was influenced by Frank and Lillian Gilbreth and their Time and Motion study of 1900 and that of Henry L. Gantt who propounded the idea of scientific selection of workers and harmonious cooperation in 1901. A study that identifies the least time required for a

Scientific management acco. To Taylor.

Develop a science for each element of a mans

work which replaces the old rule of thumb method. Scientifically select and train, teach & develop the workman. The workers cooperate with the men which ensures work done in accordance with the principles of science. Equal division of work & responsibility between the management & the workmen.

- Max Weber, idea of bureaucrasy

- Creation of hierarchical organization &

differentiated line of authority. - Related to behavioural science. Operational management theory - Led by Henri Fayol. - Identification of six groups of activities in an organization, i.e. technical, commercial, financial, security, accounting and managerial. - Gave 14 principles of management & known as father of modern management.

Behavioral science theory

- Originated by Vilfredo Pareto in 1896, and he researched

on organization and management leadership. - Elton Mayo and F.J. Roethlisberger who made an impact on the behavioral science theory through their Hawthorne experiments in Western Electric Company in 1933. - This experiments proved that good working relationship with the supervisor and colleagues and the idea of challenge in the job accounted for higher productivity. - Challenge is created through setting high goals which cannot be normally achieved but which can be achieved with a little additional effort.

System theory: In systems theory, we perceive that organizations have a number of fairly independent systems such as purchase system, operations system, marketing system, financial system, etc. The working of these are independent, but it has to be integrated by the manager. This theory, perhaps, brings the idea of integration as a key component of management.

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Principles of Management
Improve understanding

Direction for training of managers

Role of management Guide to research in management

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14 Principles of management by Henri Fayol

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.
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14.

Division of labor Authority and responsibility coexist Unity of command Unity of direction Equity Order Discipline Initiative Fairness Stability Scalar chain Subordination of individual interest to general interest Esprit de corps Centralization and decentralization

System Model of Management Process

Knowledge, goals of stake holders + input (HR,

capital etc)
Planning Organizing Staffing Leading Controlling Output
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Thank you