Unit INTRODUCTION TO MANAGEMENT it enables the practicing manager INTRODUCTION: - Managemen also at the National level. Thus management has become crucial n but for the society to Definitions ‘To manage is to forecast and plan, to organize, to command, to coordinate and control Henry Fayol ment is the art of getting things done through people in formally organized groups KOONTZ ‘Management is a social process, that consists of planning control coordination and motivation EFL BREACH TURE, SCOPE AND FEATUR! The following describes them Management is a Social process: Social process refers to a series of activities that are performed in the society. These activities are carried out by administrators politicians. economists. housewives, parents. doctors. lawyers and so on. Management san integral part of social process and helps everyone to carry out the activities in the society effectively Management also denotes a *body of people’ involved in decision making- When the organization is well run. itis said that the management of the organization takes Personnel interest in the institution, Here management denotes body of people involved in decision making Management is omnipresent and universal:- Successful Organization shows that management principles apply to every kind of Organization and also to every level in 11 is complex Management functions of complex they call for a fairly professional approach io manage a given situation. 11 is an inexact science Management principles are not like science where things are fairly clear or exact 2 in nature... The same style of Management cannot work on every’ time, at different points of the time also the style of functioning can be different -ed by practical knowledye iz is character is also an art and science: Art 1 in art, the more professional one Management © yy and shill, The more one practice fies all these criteria ity and skil personal creativity it satis! fed as an art Becale™ ted and can be sharpened becomes. Management arcmin. The management skills a ‘with more training and practice ire high is. It can establish cause ic principles which are he future events. knowledge of fact: A science is a systematic indian It involves bas! and effect relationship among various redict tl capable of Universal application. It also helps (oP a science Management satisfies all these criteria to be considered as ] be wvery profession in Management is profession:- Management helps to carry oe aia fare governed scientific manner. The managers are professional in their appr by code of ethies janagement is heavily dependent 9 Management is inter dist ary:- The subject of mé : er ‘economics statistics sociology on other disciplines the manager extensively uses psychology maths etc., 10. Manager has four types of resources:- The Four M’s men money material and_ machines are the four types of resources the manager has to manage Functions of Management This chapter deals what managers do. The functions of the managers are more or less n irrespective of the nature and size of the organisati Various scientists identified Management functions as follows Koonts identified planning. organisation, staffing, directing, leading and controlling as major functions. Luther Gullick identified new term POSDCORB indicating P for planning, O for organising, S for staffing, D for directly. co for coordinating R for reporting and B for budgeting. Gullick laid emphasis on two additional functions such as reporting and budgeting. Planning it refers what is to be done in future. It fills the gap between the present and the future. It involves four stages that is 1. identifying the goal to be achieved 2. exploring the courses of action available to reach the goal 3. Evaluating each course of action on merits 4. finally selecting the best course of action for implementation The following are the elements of planning These are predictions of what is going to happen in the future based on the past and present data Objectives are set for every individual and department in the organisation. Everyone works to achieve the given objectives Polictes:- These specify what can be done or what cannot be done to achieve the given ‘objectives Programs These specified what is to be done Forecasts: Objective:ae These outline how a task is to be carried out chedules:- This indicate what is to be done at a given point of time Budget:- The plans expressed in quantifiable details such as sale budget expenses budget ete. Organising:- Organisation is a structure of relationships. It explains superior subordinate relationships. Organising shows how the tasks can be achieved with the given resources. Staffing:~ Ascertain how many positions are there in the organisation and at what level. Once the information is available the next task is to be collected in detail such as what type of candidates are required for each position and accordingly fill up these positions with a right people. In small Organisation all activities are taken care by manager himself. But in larger organisation a separate Department called personnel department looks after the functions. ion is to guide, to direct, to instruct them to form the following functions while Directing:- The next task after filling the pos! achieve the common goal. The manager has to per directing the members in a group. Leading: An effective manager should also be an effective leader. The leader should necessarily understand his or her followers and accordingly read them. Democratic leaders are successful because they involve the subordinates in the decision making process. Motivating:- The process of stimulating the employees to perform more effectively using their abilities and full potential is called motivation the factors of motivation. ‘The Factors of Motivation can be broadly categorised into two types Financial such as monthly salary bonus overtime allowances reimbursement of Medical and telephone bills so on Non-financial appreciation from the top cognial work environment, career growth, flexibility, working hours, opportunity to work on live projects. minimum of supervision etc., Communicating it is a process of transmitting, interpreting, messages. ideas. facts, opinions and feelings. The function of the manager is to communicate to his staff as to what they should do through orders, circulars. notices. meetings etc The communication is always two way process. An important part of the communication process is feedback Coordinating:~ Organisation structure provides for division of labour. This calls for linking the different parts of the organisation in terms of their performance to help to achieve the given goals. Controlling :- It is a process of measuring the current performance of employees, whether the given objectives are achieved or not it involves 1. Measuring the actual performance of the employees 2. Comparing it with the target 3. Taking follow-up actions Managerial rolesxs assume multiple To meet many demands of performing their functions. manage! roles. A role is an organised set of behaviours er The following are the three important roles of manag he three together. Th 1, Interpersonal roles:- Interpersonal roles links all Pea mnteanis nterpersonal roles are primarily concemed with interpersonal relations Figurehead roll:- The manager represents the organisation in all matters Se The top level manager represents the company lesally and socially to those outside the organisation. The supervisor represents the workgroup to higher managemen higher management to workgroup Liaison role: The top level manager uses the L Supervisor uses it to maintain the rout The manager interacts with peers and people outside the organisation iaison role to gain favours and information while the ¢ flow of work, The leader role:- It defines the relationship between the manager and employee. 2. Informational roles: - The informational roles ensures that information is provided the three formation and rules are primarily concemed with the information aspects of managerial works. Monitor role:- The manager receives and collect information about the operations of the Enterprise Disseminator role:- The manager transmits special information into environment. Thus the top level manager receives and transmits more information from people outside the organisation Spokesperson soul:- The manager disseminates the organisation's information into its environment plus the top level manager is seen as an industry expert, while supervisor is seen as a unit for department expert formation and there are 3. Decision roles:- The decision rules make significant use of the four decision rules. Entrepreneur role:- The manager initiates change, new products, identify new ideas, delegate idea responsibility to others Disturbance handler role:- The manager deals with threats to the organisation. The manager takes corrective actions during disputes or crisis. resolve conflicts among the subordinates. Resource allocator role:- The manager decides who gets resources, schedul budget. sets priorities and choose where the organisation will apply its efforts Negotiator role:- The manager negotiates on behalf ofthe organisation. The top level manager makes the decision about the organisation as a whole, while supervisor makes decisions about his or her particular work unit Managerial skills Managerial skills are the knowledge and ability of individuals in a man Position to fulfil some specific management activities are tasks. The manager will need skills that will help them to manave People and technology to ensure an effective and efficient realisation of their work dutiesTh : ee Types of skills that are essential for the successful Management process Se Skills are not related to only for machines. production tools or other o ri t. but also they are skills that will be required to mcrease sales. design different 'YPes of products and services, market the product and services etc. top mane chica skills are most important forthe first level managers. When it comes to the ‘op managers these skills are not something with high significance level. As we go through a hierarchy from bottom to higher levels the technical skills lose their importance, Conceptual skills present knowledge ability of a manager for more abstract thinking That means he can casily see the whole through analysis and diagnosis of different states, The conceptual skills will help manager to look outside their departments goals. So they will make decisions that will satisfy overall business goals Conceptual skills are vital for top managers, less critical for mid-level managers and not required for first level managers. As we go from my bottom of the managerial hierarchy to the top, the importance of these skills will rise. Human skills are also called as interpersonal skills. These skills present a manager's knowledge and ability to work with people. One of the most critical management tasks 1s to work with people. Without people, there will not be a need for the existence of Management and managers. These skills will enable managers to become leaders and motivate employees for better accomplishment; also they will help them to make more effective use of human potential in the company Interpersonal management skills are essential for all hierarchical levels in the company. Challenges of Management/Managers The following are the seven biggest challenges faced by a manager Achieving a stretch goal:- Itis a careful planning to figure out how to apply your organization's people and resources to achieve an aggressive goal. The manager has to motivate people remove roadblocks from their path and focus them on things that are most important : Bringing out the best in your employees:- ‘All employces have good days and bad days. Some of the causes are out of your control. But it is important that you take steps to make as many days possible as good da: The following are the sum of the points to bring one best from the employees 1. Trees every employee with respect 2. Help employees align their personal goals with their work goals 3. A comfortable work environment makes employees more productive 4, Encourage employee communication and cooperation Dealing with underperforming employees Not all employees will do their best, Some will have personal issue that interfere with their work managers have to motivate and counsel them and can help employces cope with personal issues, Dealing with outstanding employeesemployees need Some employees obviously outperform the others. Orne ried ts sbove special treatment They need recognition, encouragement. (ai company all they need to know and they have a career path in your comp Hiring right people Hiking right person is extremely difficult. The understanding of how an employee will actually perfor employees does in interviews. Interviews are seldom a good habits, so going beyond interview is crucial. trick in curing is to get an rm the work not just how the A predictor of work and work Responding to a crisis to change Planning is a part of managing, perhaps more important is Mitt td Nias tea Plans on the fly in response to challenging conditions. When a crisis hits, yo to deal with it calmly, quietly and without being overwhelmed by stress. Continuous improvement There is always some type of improvement that can be made as a change in a process. 4 better working environment, better employee, motivation, and more focus on the essentials. There is always a better way and you have to keep looking for it Balance between management and employees ‘The manager has a responsibility to balance the interest of Management and employees. Profits, commitment, cooperation, loyalty, and sincerity are the factors expected by management whereas better salaries and wages, safety and security. healthy working conditions, career development and participative working are the factors expected by the employees from management. Dealing with trading unions Union members are to be handled skilfully as they are usually the people who oppose the company policies and procedures. Demands of the unions and interest of the management should be matched properly. Levels of Management The term levels of management refer to a line of demarcation between various management positions in an organisation, The number of levels in management increases when the size of the business and work force increases and vice versa, The level of Ianagement determines a chain of command, authority and status enjoyed by any managerial position, 3 The levels of management can be classified into three broad categories ‘Top level or administrative level 1 consists of board of directors, chief executives or managing director. The top ‘management is the ultimate source of authority and it manages goals and policies for on enterprise. _—_ The following points highlights the role of wp management lays down the objectives and broad policies of the Ent erprise prepares strategie plans anda It appoints the executive for middle level It controls and coordinates the activities of all the departments It provides guidance and direction tis also responsible towards shareholders the performance of the enterprise Middle level or executive The branch managers and departmental managers constitute middle level. They are responsible to the top management for the functioning of the department the middle level role can be emphasised as the following ra ‘They makes plans for sub-units of the organisation They evaluate performance of junior managers They participate in employment by training of lower level management ‘They are responsible for coordinating the activities within the division of department 5. They also sends important reports and other important data to top level ‘management 6. They are responsible for jpiring low level manager towards better performance Lower level or supervisory or operative or first line managers It consists of supervisors, foremen, section officers, superintends etc., They are concemed with direction and controlling functions of Management ‘Their activities include ‘Assigning jobs and tasks to various workers day guide and instruct workers They are responsible for quality and quantity of products They ensure discipline in the enterprise They motivate workers They supervise and guide the subordinates They are responsible for providing training to workers They help to solve the grievances of workers They arrange necessary materials, machines, tools etc., for getting thing |. They prepare periodical reports about the performance of the workers. (0. They communicate workers problems suggestions to the top level man: WRI OW EWR EVOLUTION OF MANAGEMENT THOUGHT The following are the four stages in the evol nn of Management thought 1. Period of Management awakening( 16/17" Century) 2. Scientific management period (18"/19" Century) 3. Human relations or Behavioural Sciences period (19*/20" Century) 4, Modern management p¢ ent awakenit i 9d of the industrial revolution which paved the way for large growth‘ Jating neglected issues rel Robert, when was the first penon wh spel cs bya caaber to the personnel management. He believ' workers perform training of workers. Sci wEh Bei hee ‘working conditions, working hours. Places ete. ‘Charles Babbage fess ite data to run the | His use of science and mathematics for investigations and accurate 07 WT factories, which were using traditional methods at the time of opinions making . ine. He James Watt Jr. :- He was the son of James Watt, who invented fare of wees used techniques of forecasting market research, production planning, wel elaborate statistical records etc. . SCIENTIFIC MANAGEMENT PERIOD. Scientific management period holds to greatest exponents. Henry Fayol, who was French industrialist and FW. ‘Taylor, who started his career as an apprentice in eng Jeanine Fayol tried to understand organisations from top to bottom. On the contrary. Tailor analysed organisations from bottom to top Highlights of Henri Fayol contribution Fayol define Management functions as. Planning Organising Commanding Coordinating j 5. Control | He identified 6 types of activities to be accomplished in every industrial organisation dum Technical (production related) Financial (procuring capital) Commercial (buying and selling) Security (protecting properties and people) Accounting (maintaining accounts) Managerial (planning and control) poange Apart from the above Fayol identified 14 principles of management they are as follows : |. Division of labour: - The work is divided among the members of group based on yyee's skills and talents, oe thers and the should flow from top itis called s¢Subordination of individual interest to group interest :- According to this principle Importance to organisation is primary and importance to individual is secondary 8. Remuneration -- Pay according to the work done 9 Centralisation of authority :- Ultimate authority should lie on only one person Decision making powers are retained at top level 10. Order :-It means keeping right man right material right machine in the right place 11. Equity :- tt means equity dealing with employee should be fair and open 12. Esprit de Corps :- It means Unity team building 13. Initiative :- The staff should be encouraged to show initiative. 14. Security of tenure :- It refers to job security Contribution of Frederick Winslow Taylor FW Taylor is well known as the “Father of scientific management.” His contribution in terms of the following aspects 1. Work study 2. Scientific selection of workers and tools 3. Piece wage system Work study Taylor was passionately interested in the efficiency of working method. He realised that the systematic analysis of work would find solution to all the problems associated by enhancing the efficiency of the working methods. Taylor scientific investigation and experimentation is the basis to find out the best way for a given job. Scientific selection of workers and tools Taylor demonstrated the benefits of increased productivity and earning through an experimer The Experiment dealt with the study of the efforts of Shovels each man had his own personal shovel with which he used to shift coal Tailor as a part of the experiment. each worker was given a small shovel. to study the impact of the size of the shovel on productivity. Amazingly the daily tonnage went up. In due course, the workers output was observed with several different sizes of shovels. There was a rise on the daily output. After 3 years Taylor reviewed the extent of the success of the coal field Piece wage system a According to this system wages will be paid based on the pieces of work done or amount of work done not based on the time wage system. According to the piece wage system standard production or average production of the workers will be decided. Within the given time when the workers does not reach that standard production. the wages will be reduced to the production increases higher various will be paid, In this method efficient people also get demotivated Taylor has given first preference to machines and second preference to men Henry Gantt Gantt studies for more related to section of workers in a sciemtific manner and development of incentive system, He believed that the labour and management need to co- ‘eperate with each other, and maintain humorous relationship. He is more known to developing 2 bar chart popularly known as Gantt Bon chart Frank and Lillian Gilbreth‘was motion These were the famous husband and wife their main field Sy feaificient study. It was concerned with eliminating Waste resulting from unnes moons, Frank Gilbreth introduced process chart involved in doing and activity. They used to record Standardized manner, after a detailed analysis and redesign Based on the various experiments Lillian Gilbreth invent j medical field which will reduce the operation time due to the reduced in the opera the patients anaesthesia time will be reduced ¢ fundamental motions rm Sea ff the workers in job-related moments o| ‘ed new instruments in ion time MENT THEORIES MAN. Quantitative or Mathematical Approach The development of the technology and introduction of computers, have brought mathematics and management closer to each other. The study of problems, their analysis and finding out rational solutions is also close to decision theory school of thought This approach gained momentum during and after World War 2. The inter- disciplinary scientists were expected to develop optional decisions about development of unitary resources. Mathematical models where sought to be built for finding out optimal solutions of military problems Features > Manageme solve them Mathematical models can be developed by quantifying various variables of the problems Mathematical symbols can be used to describe managerial problems Mathematical tools or simulation and model building are used to find out solutions to rial problems. is coneemed with problem solving and must use mathematical tools to man: Limitations ‘& This approach does not give any weightage to human element which is very important in every organisation ‘o In practice life managers have to take quick decisions without waiting information and developing of models ‘& The data available in the business may not be available up to date and it may lead to wrong decision making ‘& This approach presumes all variable to decision making, which are measurable and interdependent this assumption is not realistic for full Systems approach The system theory looks at organisation as whole examining all relevant organisational variables simultaneously. According to Cleland and King “A system is composed or related and dependent elements which when in interaction from a unitary whole.” In a business every department are sub-systems and all business is one system. Thus each system may comprise several subsystems and in tum is subsystem may be further composed of sub-systems, Features Open system :- Modem theory treats it as open system which has continuous interaction with the environment> See system :- Since organisation is related to environment, it has to adjust the changing environment in order to meet the challenges. This approaches is oftenly called vague It cannot easily be applied to practical Problems moreover it does not provide any Tools and techniques for executives Contingency or Situational Approach Management problems are different under different situations and need to be tackled as per the demand of the situation a This approach emphasizes the fact that what managers do in practice depends upon a given set of circumstances. This approach not only takes into account given situations but also the influence of given solution on behaviour pattern of an enterprise Features > Management is entirely situational. The conditions of the situations will determine Which technique and control system should be designed to fit a particular sitvation, > Management policies and procedures should respond to environmental conditions } Managers should not treat management principles and techniques as universal. It will be the situation which will determine the technique and methods of Management. > Environment management has to bring changes in subsystems at the organisation Organisation as a whole :- The organisation is looked as a whole which means that itis bigger than the subsystem combined Subsystems: - The organisation consists of various subsystems the subsystems interacting, and independent Boundaries -- The organisation provides a boundary which separates from other systems it determines which parts of our internal and which parts are external Multi-disciplinary Approach This approach is enriched by contributions from various disciplines like psychology. sociology. economics. anthropology. mathematics ete, Uses and limitations the systems approach. The systems approach helps in studying the functions of complex organisations and has beerr-utilised as the base for the new kind of organisation like project management organisation. It is possible to bring out the inter-relations in the various functions like planning, organising. directing. and controlling Uses :~ Vv This approach does not accept the universality of Management Theory. Management should deal with different situations differently ‘The external factors influence the working of the organisation There should be alternative and contingent plans to deal with the emergency situations. ‘The choice of an approach will be depended upon the specific situation being faced This approach lacks theoretical base. A manager is expected to know all the alternative sources of action before taking action in a situation vVVV The Human Behavioral Approach This approach is based on the idea that managing involves getting things done through people, so its study should concentrate on interpersonal relationships. Theish them together to accompl's effectiveness of f the views: re ple ‘working in the relationships among people are the cemetery force that bind common objectives ge The Thinker of human behaviour approach are o any orxanisation depends upon the quality of a relationships amon lace is very aiesieoe ty of human behaviour at workp! There is no denying fact that the study of ile havior we oe confiaed important for understanding the problems of Manager ill to this area only. So restricting ihe se ‘ment human behaviour only w! ‘mount to the limiting of all the scope of Management med Major conclusions of the contributions made by behaviour lists ean be present low ea » The manager should create healthy environment where in all subordinates contribx to the best of their capacity 2 > Operating efficiency can be improved by expanding subordinate influence, self- direction and self-control » Work satisfaction may improve as a by-product of subordinates making use of their potential > Most people can experience a great deal of self-direction, self-control and creativity then are required in the current job. Management Science Approach E.W. Taylor investigated the effective use of human resources in the industrial organisation piratical only at shop level. He tried to find out the reasons for slow pace of work and suggested methods for improving it. Taylor, who was originally called the father of. scientific management put the problems of managing on the scientific way. His objective was to provide a scientific basis for designing and performing various jobs. He experimented for increasing the efficiency of the workers. Taylor found the methods of production lacked planning tools and experiment where meagre and odd for the work and working methods by haphazard. He made efforts to replace the primitive rule of thumb methods by modem scientitic methods based on investigation analysis and Measurement he said that there is one best way of doing things applicable to all situations. Scientific management can be studied in two parts 1. Principles of scientific management and 2. Elements of scientific management The principles are > Replacement of the thumb > Development of workers > Maximum output > Distribution of work Elements ‘> Work study ‘> Standardization of tools and equipment ‘& ‘Scientific selection, Placement and training ‘> Introduction of functional foremanship ‘& Introducing costing system ‘> Mental revolutionHuman Relations Period eoUaeWEetn by the focus on the human factor in dealing with business and Fe Tata boats: The researchers and practicing executives concentrate more on issues such aviour at the workplace motivation, group relationships and leadership The contributions of three scientists are outlined below George Elton Mayo was known for his famous experiment at the Hawthrone plant of a Wester clectric company Chicago, USA for evaluating the attitudes and psychological Teaction of workers on job situation. The experiment started as study in to physical conditions and productivity. Itrevealed that workers valued most the social relations at work and these were viewed as important as monetary incentives and good physical working conditions, The Hawthorne experiment Mayo research team examined changes in the amount of light When the lighting was increased output rose, on the other hand when the light decreased output still rose The reduction in light did not affect their work. The research team also examined other effects of change in the work environment, such as rest periods, working hours etc., During the study is it was found that changes in the work environment had little long term effect upon workers productivity The following where the conclusions from the Hawthorne researchers > Individual workers must be seen as member of group > The workers enjoyed more the sense of belongingness, > Informal groups influence the behaviour of workers on the job > The management should be aware of their soc | needs and catre to them Maslow was a psychologist. This theory is known as “hierarchy of needs theory” The needs as identified by Maslow can be elaborated as follows SELF REALISATION (EDS ESTEEM. NEEDS ACCEPTANCE, NEEDS, SAFTEY, NEEDS PHYSIOLOGICAL NEEDS.