Business Organization and

Management History
Unit -1
What will you learn ?
• Business Organizations
• Management Concept
• Managerial Skills, Tasks and Levels
• Evolution of Management - Theories
• Ethics and Best Practices in Management
• Social Responsibility
• International Management
• Countries and Cultures
Management Nature & Purpose
• Enterprise or Organization
• A business, government organization , hospital , university or any other type
of Organization
• Management
• Process of designing and maintaining an environment in which a group of
individuals efficiently accomplish selected aims or objectives
 Managers Carry out functions like planning , organizing , staffing , leading and controlling
 It applies to any organization or enterprise
 It applies to managers at all levels
 It is concerned with Productivity , Efficiency and Effectiveness
Managerial Functions and Levels
Managerial Skills
Goals of Managers
• The basis goal of a manager is to create a “Surplus” also known as
profits
Productivity, Efficiency & Effectiveness
• Productivity = Output / Input
• Effectiveness = Achievement of Targets
• Efficiency = Achievement of Targets with least resources

Management Science or Art ?

Key Contributions
• FW Taylor and Scientific Management
• Henri Fayol, The Father of Modern Management
• Max Weber, Theory of Bureaucracy
• Elton Mayo and F.J. Roethlisberger and Hawthorne Studies
• Chester Barnard – Systems Theory
• Peter Drucker , Juran , Crosby , Edward Demming – Quality Movement
Management Theory Jungle
Systems Approach
Managerial Functions
• Planning
• Organizing
• Staffing
• Directing
• Controlling
Managerial Roles - Mintzberg’s 10
Organization and Environment
• Technological
• Social
• Political and Legal
• Ecological
• Economics
• Ethical
Pluralistic Society - Stakeholders
Environment
• Technology and Innovative Environment
• Invention & Innovation
• Product and Service Innovation
• Incremental and Break Through Innovation
• Ecology
• Environmental Impact of Products and Services
Social Responsibility of Managers
• Social Impact of Products and Services
• Social Impact of Managers and Organizations
• Social Responsibility and Responsiveness
• For and Against Arguments
• Reaction OR Proactive Approach
• Government Role
Ethics
Integrative Approach
• Ethics is a discipline of dealing with what is good or bad , right or
wrong with moral duty and obligation
• Business Ethics is a systematics study of morals , truth and justice
• Leadership Perspective
• Scandals and Corporate Governance
• International Perspective
• Global Ethics View
• Societal Variations – China and US
Institutionalizing Ethics
Utilitarian Rule : Evaluation of plans and actions based on results

Justice Rule : Fairness , Equity and Impartiality

Rights Rule : All people have basic rights

Practical Rule : Acceptability to Society in general

Code of Conduct : Guidelines for behaviors in work situations

International Management
International Management focusses on the operation of international
of firms in Host Countries
This affects all the management functions
 Planning
 Organizing
 Staffing
 Leading
 Controlling
Forms of International Business
• Exports
• Licensing
• Management Contracts
• Joint Venture & Strategic Alliances
• Subsidiaries

Potential for Conflicts due to Nationalistic Interests

MNCs & Global Corporations
• Ethnocentric Orientation
• The style of Foreign operations is based on Parent Company
• Older Approach
• Polycentric Orientation
• The foreign subsidiaries are given a great deal of managerial freedom
• Regiocentric Orientation
• The foreign operations are staffed on regional Basis
• Geo Centric Orientation ( MNCs )
• The entire organization is viewed as an interdependent system operating in multiple
countries
• Pros and Cons
• Global Corporations view the entire world as one Market
Alliances and Economic Blocs
• European Union
• NAFTA
• ASEAN
Culture and Country Differences
Hofstede’s 5 Dimensions
Individualism Collectivism
People focus on their own interests and the people close Emphasis on group support . Relationships more
to them. Tasks more important than relationships important than tasks
Large Power Distance Small Power Distance
Respect for authority , titles , ranks . Unequal distribution Less acceptance of power. Dialogue with superiors . Less
of power. Centralization emphasized emphasis on titles, ranks. Decentralization
Uncertainty Tolerance Uncertainty Avoidance
Acceptance of uncertainty and risk taking Fear of uncertainty. Structures and rules preferred
Masculinity Femininity
Aggressive and Assertive behavior . Material, success Relationship orientation . QoW, welfare , caring , modesty
money.
Long Term Orientation Short Term Orientation
Hard work and perseverance . Savings mindset Less emphasis on Hard work and perseverance .
Consumption driven
Gaining Competitive Advantage
Quality is the Key
• Quality Management Gurus
• Total Quality Management
• ISO 9000
• Malcolm Baldrige Quality Award 1996
• European Model for TQM and Business Excellence
End of Unit 1