Part: One

Introduction to Management

What is Management?

Management is the application of planning, organizing, staffing, directing, and controlling

functions in the most efficient manner possible to accomplish objectives.

Management starts from objectives and objectives means, specific results/targets/goals to be

reached by a certain time. Target/Goal means a broadly stated guideline that an individual is
attempting to achieve.

In present age we can say “Management is a process of getting activities completed,

effectively & efficiently through and or others.”

 Effectiveness: Doing the right thing or completing activities so that organizational

goals are attained.

 Efficiency: Doing the thing right, or getting the most output from the least amount of
inputs.

Management Process: Book P, 6

Input Processing Output

The 6M

Man Planning
Machine Organizing
Material Leading Desired Goals
Money Monitoring
Market
Method

Management Functions: Book P, 7

 Planning

 Set Vision, Goals, Objectives

 Vision/Mission- Why Organization Exists, Purpose of Organization
 Goals- Broad, Long-Term Aims
 Objectives- Specific, Short-Term Statements
 Continuous Process

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 Questions before planning:

1) What is the situation now?

2) Where do we want to go?
3) How can we get there from here?

 Organizing

o Self-Managed Teams
o Stakeholders
o Staffing
o Diversity

 Leading

(Motivating, Directing, Co-ordinating, and others.....)

 Controlling (Monitoring)

 Set Standards

 Specific
 Attainable
 Measurable
 Procedures for Monitoring

 Monitor/Record
 Compare Plan & Standards to Results
 Communicate to Employees
 Corrective Action???

Level of Management: Book P, 9

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Different types of skills: Book P, 14

 Technical Skills (Job-Specific Knowledge & Techniques)

 Human Relations Skills or Interpersonal Skills (The ability to work well with other
people individually & in group)
 Conceptual Skills (The ability to think and to conceptualize about abstract & complex
situations)
Some other skills,

 Diagnostic skills
 Communication Skills
 Decision making skills
 Time management skills

Why need New Management & Its Approaches?

• Global Competition
• Technological Change
• Customer Expectations
• Better Educated Employees
• Manager No Longer Just Boss

Tips for New Managers

 Be objective.
 Listen to your employees.
 Be the model.
 Be willing to delegate.
 Respect your employees.
 Develop employees’ trust.
 Audit performance.
 Recognize your limits.

History of Management

Henri Fayol (Istanbul, 29 July 1841 – Paris, 19 November 1925) was a French mining
engineer and director of mines who developed a general theory of business administration
that is often called Fayolism. He is widely acknowledged as a founder of modern
management methods. So, he is the father of Modern management.

1. Division of work or separation of work or specialization of labour. Work should be

divided among individuals and groups to ensure that effort and attention are focused
on special portions of the task. Fayol presented work specialization as the best way to
use the human resources of the organization.

2. Authority. Managers must be able to give orders. Authority gives them this right.
Note that responsibility arises wherever authority is exercised.

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3. Discipline. Employees must obey and respect the rules that govern the organization.
Good discipline is the result of effective leadership, a clear understanding between
management and workers regarding the organization's rules, and the judicious use of
penalties for infractions of the rules.

4. Unity of command. Every employee should receive orders from only one superior.

5. Unity of direction. Each group of organizational activities that have the same
objective should be directed by one manager using one plan.

6. Subordination of individual interests to the general interest. The interests of any one
employee or group of employees should not take precedence over the interests of the
organization as a whole.

7. Remuneration. Workers must be paid a fair wage for their services.

8. Centralization. Centralization refers to the degree to which subordinates are involved

in decision making. Whether decision making is centralized (to management) or
decentralized (to subordinates) is a question of proper proportion. The task is to find
the optimum degree of centralization for each situation.

9. Scalar chain. The line of authority from top management to the lowest ranks
represents the scalar chain. Communications should follow this chain. However, if
following the chain creates delays, cross-communications can be allowed if agreed to
by all parties and superiors are kept informed.

10. Order. this principle is concerned with systematic arrangement of men, machine,
material etc. there should be specific place for every employee in organization

11. Equity. Managers should be kind and fair to their subordinates.

12. Stability of tenure of personnel. High employee turnover is inefficient. Management

should provide orderly personnel planning and ensure that replacements are available
to fill vacancies.

13. Initiative. Employees who are allowed to originate and carry out plans will exert high
levels of effort.

14. Esprit de corps. Promoting team spirit will build harmony and unity
within the organization.

FAYOL'S SIX FUNCTIONS OF FAYOL'S SIX ACTIVITIES IN

MANAGEMENT INDUSTRY
1. Forecasting.  Technical Activities
2. Planning.  Commercial Activities
3. Organizing.  Financial activities
4. Commanding.  Safety Activities
5. Coordinating.  Accounting
6. Controlling.  Management
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Frederick Winslow Taylor (March 20, 1856 – March 21, 1915) was an American
mechanical engineer who sought to improve industrial efficiency. He was one of the first
management consultants. Taylor summed up his efficiency techniques in his book The
Principles of Scientific Management. He is the father of scientific management.

Taylor's scientific management consisted of four principles:

1. Replace rule-of-thumb work methods with methods based on a scientific study of the
tasks.
2. Scientifically select, train, and develop each employee rather than passively leaving
them to train themselves.
3. Provide "Detailed instruction and supervision of each worker in the performance of
that worker's discrete task" (Montgomery 1997: 250).
4. Divide work nearly equally between managers and workers, so that the managers
apply scientific management principles to planning the work and the workers actually
perform the tasks.

Peter Ferdinand Drucker November 19, 1909 – November 11, 2005) was an Austrian-born
American management consultant, educator, and author, whose writings contributed to the
philosophical and practical foundations of the modern business corporation. He was also a
leader in the development of management education, and he invented the concept known as
management by objectives. He is known as the father of management theory,

At a glance:

 Part one: General Administrative Approach

 Theorists, Henri Fayol, Max Weber
 Part two: Scientific Management
 Theorists, F. W. Taylor, Frank & Lillian Gilbreth
 Part Three: Quantitative Approach

 Part Four: TQM (Total Quality Management)

 Part Five: Behavioural Approach

 Theorists, Robert Owen, Hugo Monsterberg, M.P. Follet, C.I. Barnerd.
 Part Six: Contemporary Approach
 The Hawthorne Studies by Elton Mayo
 Part Seven: Contingency Approach

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