MANAGEMENT

An Overview

Organizational Behaviour-1
Batches: 8A/8B

Rahul R Lexman
Assistant Professor
XIME, Kochi
Managing oneself?
&
Managing others?
 MANAGEMENT: An Art or a science?

■ The process of organizing and coordinating activities of a

business in order to achieve defined objectives.
■ Management is often included as a factor of production and
according to the management guru Peter Drucker (1909-2005),
“the basic task of management includes both marketing and
innovation”.
■ Factors of production: Man, Machines, Materials, and Money
■ Management: Art of getting things done through
others.
■ Managers (administrators): Individuals who achieve
goals through other people.
■ Organizational success: Knowledge about management
principles and practices a key!!

Managerial Activities
• Make decisions
• Allocate resources
• Direct activities of others to attain goals
• ?????
EVOLUTION OF MANAGEMENT
 Classical Management
Scientific management
■ The concept was first developed by F.W. Taylor in between 1895
and 1911.
■ F.W. Taylor called as the Father of scientific management,
discovered the application of method of science for solving
industrial problems.
■ Was primarily focused on the efficiency of production.
■ Applied principles of engineering to labor.
■ Rigorous analysis of tasks, workflows in industrial settings.
■ Failed to consider the human element in workplace.
 Time studies

■ Time study proposed by Taylor followed a direct and

structured approach where, continuous observation of a
task, using a timekeeping device (e.g., decimal
minute stopwatch/ computer-assisted electronic stopwatch,
videotapes, camera, etc.,) where used to record the time
taken to accomplish a specific task.
■ Taylor and his colleagues placed emphasis on the content of
a fair day’s work, and sought to maximize productivity
irrespective of the physiological cost to the worker.
■ Taylor thought unproductive time usage (soldiering) to be
the deliberate attempt of workers to promote their best
interests and to keep employers ignorant of how fast work
could be carried out.
 Motion studies

■ Motion study, developed by Gilbreths made use of scientific

insights to develop a study method based upon the analysis
of "work motions", consisting in part of filming the details
of a worker’s activities and their body posture while
recording the time.
The films served mainly 2 purposes:
■ Keeping a visual record of how work had been done,
(emphasizing areas for improvement)
■ Films serving the purpose of training workers about the
best way to perform their work.
Bureaucratic management (Max Weber)
Weber developed a set of rational ideas about
administrative structure of large, complex organizations
that defines what has come to be known as bureaucracy.

2 essential elements:
• First, it entails structuring an organization into a hierarchy.
• Secondly, the organization and its members are governed by clearly
defined rational-legal decision-making rules. Each element helps an
organization to achieve its goals.

Organizational Structure

•Organizational structure refers to the formalized arrangement of

interaction between people, tasks and resources in an organization.

•How job tasks are formally divided, grouped, and coordinated.

Administrative management (Henri Fayol)

 Introduction of a structured, functional or process

approach.
 Systematized administrative approach to activities in an
organization.
 Establishment of Rules and regulations to eliminate
managerial inconsistencies.
 Henri Fayol explored comprehensively through research and
laid out 14 principles of management that were published in
the book ‘General and Industrial Management’ (1916).
 These principles form the underlying factors for successful
management and are even applicable today.
 These principles of management serve as a guideline for
effective decision-making and management actions.
 Neo-classical management
■ The neo-classical theory was an attempt at incorporating the
behavioral sciences into management thought in order to solve
the problems caused by classical theory practices.

■ The premise of this inclusion was based on the idea that the role
of management is to use employees to get things done in
organizations. Rather than focus on production, structures, or
technology, the neoclassical theory was concerned with the
employee.
■ Neoclassical theorists concentrated on answering questions
related to the best way to motivate, structure and support
employees within the organization.
■ Post 1920’s, western social thinkers, philosophers like Fritz Roethlisberger objected
against all the anti labor biases of ‘taylorism’. Mayo & Willits realized that social
unrest in the working class had increased since the Industrial Revolution. While the
focus was on the science of creating specialized work processes and workforce skills
to complete production tasks efficiently, critics began to scrutinize classical
management theory for its potentially harmful effects on workers.

■ There are two main sources of neoclassical theory:

 Human relations movement
 Behavioral movement
■ The human relations movement arose from the work of several sociologists and social
physiologists who concerned themselves with how people relate and interact within a
group.
■ The behavioral movement came from various psychologists who focused on the
individual behavior of employees.
■ The neo-classical movement emerged out of the researches
that revealed that social factors, such as employee
relationships, were an important factor for managers to
consider.
■ It was believed that any manager who failed to account for
the social needs of his or her employees could expect to deal
with resistance and lower performance.
■ Employees needed to find some intrinsic value in their jobs,
which they certainly were not getting from the job that was
highly standardized.
 Modern management
■ The change in ownership pattern in organizations
inevitably brought in ‘salaried and professional
managers’ in place of ‘owner managers’.
■ With the changed ownership pattern, there has been
a need that has been recognized for the professional
management to become socially responsible to various
sections of society such as customers, shareholders,
suppliers, employees, trade unions and other
Government agencies.
■ Under modern management thought, the different
streams of thinking have been noticed since 1960:
 Quantitative / Management science Approach
 Systems Approach
 Contingency Approach
 Organizational Humanism
Management Science/ Quantitative approach
■ Interdisciplinary study of problem solving and decision making in human
organizations, including mathematical modeling, statistics and numerical
algorithm to improve an organization's ability to enact rational and
accurate management decisions by arriving at optimal or near optimal solutions
to complex decision problems.
■ Quantitative basis for decision-making adopted in this approach, and considers
management as a system of mathematical models and processes.
■ The main feature of this school is the use of mixed teams of scientists from
several disciplines. It uses scientific techniques for providing quantitative base
for managerial decisions. The exponents of this school view management as a
system of logical process.
■ It can be expressed in terms of mathematical symbols and relationships or
models. Different mathematical and quantitative techniques or tools, such as
linear programming, simulation and queuing, are being increasingly used in almost
all the areas of management for studying a wide range of problems.
 Systems approach
■ They viewed organization as an organic and open system, which is composed of
interacting and interdependent parts, called subsystems. The system approach is to
look upon management as a system or as “an organized whole” made up of sub-
systems I
■ A system is composed of related and dependent element which, when in interaction,
forms a unitary whole. A system is simply an assemblage or combination of things or
parts forming a complex whole integrated into a unity or orderly totality.
■ One of its most important characteristic is that it is composed of hierarchy of sub-
systems. In turn, each national economy is composed of its various industries, each
industry is composed of firms; and of course, a firm can be considered a system
composed of sub-systems such as production, marketing, finance, accounting and so
on.
■ The specific management system includes the analysis of organizational structure,
information, planning and control mechanism and job design, etc.
Contingency approach
■ The contingency theory aims at integrating theory with
practice in systems framework.
■ The behavior of an organization is said to be contingent on
forces of environment.
■ Behavior of one sub-unit is dependent on its environment and
relationship to other units or sub-units that have some control
over the sequences desired by that sub- unit.”
Organizational humanism
■ Organizational humanism emerged as an the outcome of the Hawthorne
experiments carried out in the Western Electric Company in 1930,
which emphasized the need for organizations to adopt humane
management skills, encourage group and individual interactions at
workplaces and build social relationships.
■ Organizational humanism, that began in the 1960s and 1970s, called for
the integration of the employees' needs with those of the
organization, as opposed to exploitation of workers.
■ Organizational humanists believe that by integrating employee morality
and ethics with the organization's needs, it could lead to formulation
of socially-conscious policies, thus preventing psychological damage in
organizations.
 Management education in India
■ Origin of Management as a concept is centuries old and has developed with
civilizations of the world. From the Indian context, The Vedas, puranas,
religious texts and foreign traveler accounts gives us a glimpse of
management in ancient times.
Eg: The Bhagavat Gita gives us a lucid description of managerial techniques,
harmony and to avoid conflict and decrease poor productivity.
■ Business education was popularized by the British to serve their
administration needs. Most Indian Business schools follow the western
systems in terms of pedagogy and curriculum.
■ In India, the year 1961 saw the emergence of two IIM’s- IIM Ahmedabad
and IIM Calcutta that began with collaboration with Harvard business
school and from Sloan school of Management at MIT.
■ Post 1991: The advent of LPG policies have also impacted the increase in
the emergence of more number of B-schools in India. Many of the big
private companies started recruiting business graduates for the
management jobs and roles.
 Managerial functions (Henri Fayol)

Planning Organizing Staffing Directing Controlling

 Managerial Skills (Robert Katz)

Technical skills Human skills Conceptual Skills

The ability to apply The ability to work with, The mental ability to
specialized knowledge or understand, and motivate analyze and diagnose
expertise. other people, both complex situations.
individually and in groups.
 Managerial Roles (Henry Mintzberg)

Interpersonal Informational
Figure
head Monitor
Leader Disseminator

Liaison Spokesperson

Decisional:
Entrepreneur
Disturbance handler

Resource Handler

Negotiator
 Real Managers Study: (Fred Luthans &
Associates)
Effective Vs Successful managers:
Luthans and his associates studied 450 managers engaged in managerial
activities and they classified activities into various categories. The aim
of this study was to find out some of the key determinants that lead to
success for managers.

Managerial activities were classified as:

o Traditional Management
o Communication
o HRM
o Networking

Finding: Networking had a high correlation with Success

 Managerial Networks

Internal Environment:
Subordinates, Superiors,
Internal Peers, Co-workers

Networks
Direct Forces:
Customers, Suppliers, Distributors,
Competitors, Regulatory Bodies
External
Indirect Forces:
Economic, Social, Cultural, Political,
Legal, Technological
Organization:
A consciously coordinated social unit, composed of two or
more people, that functions on a relatively continuous basis to
achieve a common goal or set of goals.
Organizational Behavior (OB):
A field of study that investigates the impact that individuals,
groups, and structure have on behavior within organizations,
for the purpose of applying such knowledge towards improving
organizational effectiveness.
Relevance of OB:
Growing awareness that managerial problem were not technical in
nature and the realization that Productivity and effectiveness
did not depend entirely on mechanical processes.
 OB: Multi-disciplinary stream

Psychology

Political Sociology
science

Engineering Anthropology

Medicine
Key Features:
• OB concerns with people’s Attitudes, Thoughts, Feelings and
Actions in a work environment.
• Multi-disciplinary field of study
• OB provides an opportunity to the management to analyse
Human Behaviour and prescribe a means to shape it to a
particular direction.
• Behaviour could be assessed: Individual, Group &
Organizational levels.
• Key elements of OB include: People, Structure, Technology
& the Environment in which the organization operates.