MBA: I

SEM: I

Management Fundamental
Course Code: 107
Generic Elective – University Level

Course Faculty:
Prof. Ragini Indoriya
 WHY TO STUDY MF AS A SUBJECT ?
1. Personalized Feedback and Self-Evaluation:
Receiving personalized feedback from your superiors can
be one of the most valuable career development
opportunities, helping you understand your strengths,
weaknesses, and greatest opportunities for growth.
2. Deeper Understanding of the Role of a Manager: A
manager‘s primary goal is to be an effective implementer—
someone who coordinates the actions of others to
accomplish organizational goals and objectives. Managers
perform a wide array of daily tasks, but their fundamental
function is to get things done with and through others.
3. Improved Understanding of Change Management:
Virtually every company is guaranteed to go through
organizational transitions over the course of its existence.
Whether that change is as small as hiring a new employee
or as large as an acquisition, successful leaders need the
ability to initiate, adapt to, and manage change.
4. Improved Decision-Making Skills: Managers must be
able to make decisions effectively and efficiently. To
succeed, you need to learn about the decision-making
process—ranging from what aspects constitute a ―good‖
decision, to understanding how social, political, and
emotional factors play a key role in the process.
 Concurrent Evaluation Parameters:
o End Term

o Assignments

o Class Test

o MCQ’s

o Presentations/ Class Participation

o Small project.
 UNITS : 5 units to study

1. Basic Concepts:

2. Planning:

3. Organizing:

4. Decision Making:

5. Controlling:
Question Paper Pattern
Question Cognitive Ability Nature
No. Evaluated
CO103.1 REMEMBERING Answer any 5 out of 8 (2
marks each)
CO103.2 UNDERSTANDING Answer any 2 out of 3 (5
marks each)
CO103.3 APPLYING Answer 3 (a) or 3 (b) (10
marks each)
CO103.4 ANALYSING Answer 4 (a) or 4 (b) (10
marks each)
CO103.5
EVALUATING & Answer 5 (a) or 5 (b) (10
CREATING marks each)
 Suggested Text Books:

1. Fundamentals of Management by Robbins, S.P. and

Decenzo, D.A., Pearson Education Asia, New Delhi.
2. Management, Koontz and Wechrich, TMGH
3. Management, Stoner, et. al., Prentice Hall of India, New
Delhi.
 Suggested Reference Books:

1. Management, Hellregel, Thomson Learning, Bombay

2. Management, Robbins & Coulter, Prentice Hall of Hall
of India, New Delhi.
3. Management - Text & Cases, Satya Raju, PHI, New
Delhi.
4. Management, Richard L. Draft, Thomson South-Western
 UNIT – 1
Basic Concepts
 UNIT – 1
Basic Concepts
Manager, Managing, Workplace,
Organization, Management Functions, Mintzberg’s
Managerial Roles, The Universality of Management,
Approaches to Management - Early Management,
Classical Approach, Behavioral Approach, Quantitative
Approach, Contemporary Approaches. Managerial
Competencies: Communication, team work, planning
and administrative, strategic and global competencies;
Managerial Skills; How Is the Manager’s Job
Changing?, Importance of Customers to the Manager’s
Job, Importance of Innovation to the Manager’s Job,
Importance of Sustainability to the Manager’s Job
 What is Management?

 Management means directing and controlling a group of

people or an organization to reach a
goal. Management often means the deployment and
manipulation of human resources, financial resources,
technological resources, and natural resources.
 Management is the coordination and administration of
tasks to achieve a goal.
 Management is essential for an organized life and
necessary to run all types of organizations. Managing life
means getting things done to achieve life‘s objectives and
managing an organization means getting things done with
and through other people to achieve its objectives.
 Definition of Management:
1. Management is the coordination of all resources through
the process of planning, organizing, directing and
controlling in order to attain stated objectives. —Henry L.
Sisk.
2. Management is the art and science of organising and
directing human efforts applied to control the forces and
utilise the materials of nature for the benefit of man. —
American Society of Mechanical Engineers
3. Management is the creation and maintenance of an
internal environment in an enterprise where individuals,
working in groups, can perform efficiently and effectively
towards the attainment of group goals. —Harold Koontz
and Cyrill O’Donnell
 What is a manager?
 A manager is a person, who is responsible for a part of a
company. Managers may be in charge of a department
and the people who work in it. In some cases, the
manager is in charge of the whole business. They should
have the power to hire, fire, discipline, do performance
appraisals, and monitor attendance. They should also
have the power to approve overtime, and authorize
vacations.
 What is the definition of a workplace?
 A workplace is a location where someone works for their
employer, a place of employment. Such a place can range
from a home office to a large office building or factory.
 For industrialized societies, the workplace is one of the
most important social spaces other than the home,
constituting "a central concept for several entities: the
worker and his/her family, the employing organization,
the customers of the organization, and the society as a
whole".
 Management Functions:
 Four Functions of Management:
1) Planning: Planning is future-oriented and determines an
organization‘s direction. It is a rational and systematic way
of making decisions today that will affect the future of the
company.
 Peter Drucker has defined :―Planning is the continuous
process of making present entrepreneurial decisions
systematically and with best possible knowledge of their
futurity, organizing systematically the efforts needed to
carry out these decisions and measuring the results of
these decisions against the expectations through
organized and systematic feedback‖.
2. Organizing:
Organizing requires a formal structure of authority
and the direction and flow of such authority through
which work subdivisions are defined, arranged and
coordinated so that each part relates to the other part in a
united and coherent manner so as to attain the prescribed
objectives.

According to Henry Fayol, ―To organize a business is to

provide it with everything useful or its functioning i.e. raw
material, tools, capital and personnel‘s‖.
3. Leading:
 Managers should be comfortable and confident commanding
their team members‘ daily tasks as well as during periods of
significant change or challenge. This involves projecting a
strong sense of direction and leadership when setting goals
and communicating new processes, products and services, or
internal policy.
 The leadership element involves issuing of instructions and
guiding the subordinates about procedures and methods.
 The communication must be open both ways so that the
information can be passed on to the subordinates and the
feedback received from them.
 Motivation is very important since highly motivated people
show excellent performance with less direction from
superiors.
4. Controlling:
 The function of control consists of those activities that
are undertaken to ensure that the events do not deviate
from the pre-arranged plans. The activities consist of
establishing standards for work performance, measuring
performance and comparing it to these set standards and
taking corrective actions as and when needed, to correct
any deviations.
 According to Koontz & O’Donnell, ―Controlling is the
measurement & correction of performance activities of
subordinates in order to make sure that the enterprise
objectives and plans desired to obtain them as being
accomplished‖.
 CONCEPTS OF MANAGEMENT:
1. Management as an Activity: Management is an
activity just like playing, studying, teaching etc. As an
activity management has been defined as the art of
getting things done through the efforts of other people.
Management is a group activity wherein managers do to
achieve the objectives of the group.
2. Management as a Process: Management is considered
a process because it involves a series of interrelated
functions. It consists of getting the objectives of an
organisation and taking steps to achieve objectives. The
management process includes planning, organising,
staffing, directing and controlling functions.
3. Management as an Economic Resource: Like land,
labour and capital, management is an important factor of
production. Management occupies the central place among
productive factors as it combines and coordinates all other
resources.
4. Management as a Team: As a group of persons,
management consists of all those who have the
responsibility of guiding and coordinating the efforts of
other persons. These persons are called as managers who
operate at different levels of authority (top, middle,
operating). Some of these managers have ownership stake
in their firms while others have become managers by virtue
of their training and experience.
5. Management as an Academic Discipline: Management
has emerged as a specialised branch of knowledge. It
comprises principles and practices for effective
management of organisations. Management has become as
very popular field of study as is evident from the great rush
for admission into institutes of management. Management
offers a very rewarding and challenging career.
 Nature or Characteristics of Management:
1. Management is universal: Management is universal as
it‘s common and crucial in all organizations. You can
apply the principles of management in all situations
regardless of the nature, location, and size of the
enterprise.
2. Management is goal oriented: Management is
concern with achievement of specific goals. It is always
directed towards achievement of objectives. The
success of management is measured by the extent to
which objectives are achieved.
3. Management is associated with group efforts: The
business comes into existence with certain objectives
which are to be achieved by a group and not by one person
alone. Management gets things done by, with and through
the efforts of group members. It co-ordinates the activities
and actions of its members towards a common goal.

4. Management is intangible: It is an unseen force, its

presence can be evidence by the result of its efforts up to
date order but they generally remain unnoticed, Where as
mismanagement is quickly noticed.
5. Management is an activity and not a person or group
of person: Management is not people or not a certain class
but it is the activity, it is the process of planning,
organizing, directing and controlling to achieve the
objectives of the organization.
6. Management is situational: Management does not
advice best way of doing things. Effective management is
always situational. A manager has to apply principles,
approaches and techniques of management after taking into
consideration the existing situations.
7. Management is concern with people: Since
management involves getting things done through others
only human being performed this activity with the help of
planning and control. The element man can not be
separated from the management.
8. Management is the combination of art, science and
profession: Management makes use of science as well as
art. It is science because it collects knowledge with the
methods and data, analyzes and measures it and decision is
taken with the help of experiment. It is a systematic body
of knowledge. Art means application of knowledge for
solving various problems. In modern times there is
separation of ownership and management, so professional
experts are appointed.
 Scope And Branches of Management:
1. Production Management: Production management
implies planning, organizing, directing and controlling the
production function so as to produce the right goods, in
right quantity, at the right time and at the right cost. It
includes the following activities:
(a) designing the product
(b) location and layout of plant and building
(c) planning and control of factory operations
(d) operation of purchase and storage of materials
(e) repairs and maintenance
(f) inventory cost and quality control
(g) research and development etc.
2. Marketing Management: Marketing management
refers to the identification of consumers needs and
supplying them the goods and services which can satisfy
these wants. It involves the following activities:
(a) marketing research to determine the needs and
expectation of consumers
(b) planning and developing suitable products
(c) setting appropriate prices
(d) selecting the right channel of distribution, and
(e) promotional activities like advertising and salesmanship
to communicate with the customers
3. Financial Management: Financial management seeks
to ensure the right amount and type of funds to business at
the right time and at reasonable cost. It comprises the
following activities:
(a) estimating the volume of funds required for both long-
term and short-term needs of business
(b) selecting the appropriate source of funds
(c) raising the required funds at the right time
(d) ensuring proper utilization and allocation of raised
funds so as to maintain safety and liquidity of funds and the
creditworthiness and profitability of business, and
(e) administration of earnings
4. Personnel Management: Personnel management
involves planning, organizing and controlling the
procurement, development, compensation, maintenance
and integration of human resources of an organization. It
consists of the following activities:
(a) manpower planning
(b) recruitments,
(c) selection,
(d) training
(e) appraisal,
(f) promotions and transfers,
(g) compensation,
(h) employee welfare services, and
(i) personnel records and research, etc.
 Importance of Management:
1. It helps in Achieving Group Goals : A human group
consists of several persons, each specialising in doing a
part of the total task. Each person may be working
efficiently, but the group as a whole cannot realise its
objectives unless there is mutual cooperation and
coordination among the members of the group.
Management creates team-work and coordination in the
group.
2. Optimum utilisation of resources: Managers forecast
the need for materials, machinery, money and
manpower. They ensure that the organisation has
adequate resources and at the sametime does not have
idle resources. They create and maintain an environment
conducive to highest productivity.
3. Minimization of cost: In the modern era of cut-throat
competition no business can succeed unless it is able to supply
the required goods and services at the lowest possible cost per
unit. Management directs day-to-day operations in such a
manner that all wastage and extravagance are avoided. By
reducing costs and improving efficiency, managers enable an
enterprise to be competent to face competitors and earn profits.
4. Survival and growth: Modern business operates in a rapidly
changing environment. An enterprise has to adapt itself to the
changing demands of the market and society. Management
keeps in touch with the existing business environment and
draws its predictions about the trends in future. It takes steps in
advance to meet the challenges of changing environment.
Changes in business environment create risks as well as
opportunities.
5. Generation of employment: By setting up and
expanding business enterprises, managers create jobs for
the people. People earn their livelihood by working in these
organizations. Managers also create such an environment
that people working in enterprise can get job satisfaction
and happiness.
6. Development of the nation: Efficient management is
equally important at the national level. Management is the
most crucial factor in economic and social development.
The development of a country largely depends on the
quality of the management of its resources. Capital
investment and import of technical knowhow cannot lead
to economic growth unless wealth producing resources are
managed efficiently.
 Different Levels Of Management:
 What is a manager?
 A manager is a person who is responsible for a part of a
company. Managers may be in charge of a department
and the people who work in it. In some cases, the
manager is in charge of the whole business. A manager
is a person who exercises managerial functions
primarily. They should have the power to hire, fire,
discipline, do performance appraisals, and monitor
attendance. They should also have the power to approve
overtime, and authorize vacations.
 Functions of Manager:
1. Setting Goals and Planning: A leader is expected to
perform creative function of laying out goals and policies
to persuade the subordinates to work with zeal and
confidence.

2. Organizing the group: The second function of a leader

is to create and shape the organization on scientific lines
by assigning roles appropriate to individual abilities with
the view to make its various components to operate
sensitively towards the achievement of enterprise goals.
3. Initiating Action: The next function of a leader is to
take the initiative in all matters of interest to the group. He
should not depend upon others for decision and judgment.
He should float new ideas and his decisions should reflect
original thinking.
4. Co-Ordination: A leader has to reconcile the interests
of the individual members of the group with that of the
organization. He has to ensure voluntary co-operation from
the group in realizing the common objectives.
5. Direction and Motivation: It is the primary function of
a leader to guide and direct his group and motivate people
to do their best in the achievement of desired goals, he
should build up confidence and zeal in the work group.
6. Link between Management and Workers:
 A leader works as a necessary link between the
management and the workers. He interprets the policies
and programmes of the management to his subordinates
and represents the subordinates‘ interests before the
management. He can prove effective only when he can
act as the true guardian of the interests of his
subordinates.
 What are Management Skills?
 Management skills can be defined as certain attributes or
abilities that an executive should possess in order to
fulfill specific tasks in an organization.
 Good management skills are vital for any organization to
succeed and achieve its goals and objectives. A manager
who fosters good management skills is able to propel the
company‘s mission and vision or business goals forward
with fewer hurdles and objections from internal and
external sources.
 Types of Management Skills (Robert L. Katz):

1. Technical Skills:
Technical skills involve skills that give the
managers the ability and the knowledge to use a variety of
techniques to achieve their objectives. These skills not only
involve operating machines and software, production tools,
and pieces of equipment but also the skills needed to boost
sales, design different types of products and services, and
market the services and the products.
2. Conceptual Skills
These involve the skills managers present in
terms of the knowledge and ability for abstract thinking
and formulating ideas. The manager is able to see an entire
concept, analyze and diagnose a problem, and find creative
solutions. This helps the manager to effectively predict
hurdles their department or the business as a whole may
face.
3. Human or Interpersonal Skills
The human or the interpersonal skills are the
skills that present the managers‘ ability to interact, work or
relate effectively with people. These skills enable the
managers to make use of human potential in the company
and motivate the employees for better results.
 Mintzberg’s Management Roles:
1. Interpersonal Roles
 Figurehead – includes symbolic duties which are legal
or social in nature.
 Leader – includes all aspects of being a good leader.
This involves building a team, coaching the members,
motivating them, and developing strong relationships.
 Liaison – includes developing and maintaining
a network outside the office for information and
assistance.
2. Informational Roles
 Monitor – includes seeking information regarding the
issues that are affecting the organization. Also, this
includes internal as well as external information.
 Disseminator – On receiving any important information
from internal or external sources, the same needs to be
disseminated or transmitted within the organization.
 Spokesperson – includes representing the organization
and providing information about the organization to
outsiders.
3. Decisional Roles
 Entrepreneur – involves all aspects associated with
acting as an initiator, designer, and also an encourager of
innovation and change.
 Disturbance handler – taking corrective action when the
organization faces unexpected difficulties which are
important in nature.
 Resource Allocator – being responsible for the optimum
allocation of resources like time, equipment, funds, and
also human resources, etc.
 Negotiator – includes representing the organization in
negotiations which affect the manager‘s scope of
responsibility.
 What is the meaning of organization?
 An organization is a group of people who work
together, like a neighborhood association, a charity, a
union, or a corporation. Organization is also the act of
forming or establishing something (like
an organization). It can also refer to a system of
arrangement or order, or a structure for classifying
things.
 According to Gary Johns, ― Organizations are social
inventions for accomplishing goals through group
efforts.‖
 According to Ralph C. Davis, ― Organization is a
group of people who cooperate under the direction of
leaderships, for the accomplishment of a common end.‖
 Components of Organization:

1) People: The workforce or human part of organization

that performs different operations in the organization.
Managers and knowledge workers are individuals with a
variety of preferences for information and diverse
capabilities for effectively using information provided to
them.
2) Structure: Organizations structure their management,
employees, and job tasks into a variety of organizational
subunits. However, information technology can also
support a process of organizational redesign.
3) Technology: In todays world without technology work
would be either difficult or even impossible. It provides
economic and physical resources to make peoples job
easy. The people are the assistance of machines, tools,
methods, and resources. The nature of is dependent upon
the nature of tasks and scale of operations.
4) Environment: operations of all organizations take
place under internal and external environment. An
organization is a small part of a large system which
contains elements such as government, family and other
organizations.
 Types of Organization:
1) Private Organizations:
a) Sole Proprietorship
b) Partnership
c) Joint Stock Company
d) Co – operative Societies
2) Public Organizations:
a) Departmental undertaking
b) Statutory Corporation
c) Government Company
3) Joint Organization:
1) Private Organization: The private sector consists of all
privately owner, for-profit businesses in the economy. The
private sector tends to make up a larger share of the
economy in free market, capitalist based societies. Private
sector businesses can also collaborate with government run
agencies in arrangements called public-private
partnerships.
a) Sole Proprietorship: A sole proprietorship is an
unincorporated business with only one owner who pays
personal income tax on profits earned. Sole proprietorships
are easy to establish and dismantle, due to a lack of
government involvement, making them popular with small
business owners and contractors.
b) Partnership: A partnership is an arrangement between
two or more people to oversee business operations and
share its profits and liabilities. In a general partnership
company, all members share both profits and liabilities.
Professionals like doctors and lawyers often form a limited
liability partnership.
c) Joint- Stock Company: A joint-stock company is a
business owned collectively by its shareholders.
Historically, a joint-stock company was not incorporated
and thus its shareholders could bear unlimited liability for
debts owed by the company.
d) Co – operative Societies: A cooperative society is a
voluntary association that started with the aim of the
service of its members. It is a form of business where
individuals belonging to the same class join their hands for
the promotion of their common goals.
2) Public Organizations: Those organizations which are
owned and managed either by Central Government or by
State Government are known as public organizations. The
intent of public organizations is to do welfare of the society
and to support the interest of public.
a) Departmental Undertaking: This type of business
setting provides the services that are vital for the society
such as railway, broadcasting, postal services, ect. Various
ministries of government are wholly responsible for
financing and managing these organizations.
b) Statutory Corporation: When an organization is
formulated by passing a special Act in parliament or State
Legislature, then such organization is known as statutory
corporation or public corporation.
c) Government Company: Those companies in which at
least 51 percent of share capital is held by government are
known as government companies. Such companies are
registered under companies act of India and hence are
administered as per the provisions of companies Act only.
3) Joint Organizations: Those organizations which are
owned and operated privately as well as by government are
known as joint organizations. Joint organizations are those
in which investment come from the private as well as the
public sector and where government actively participate in
managing and controlling the organization.
 Approaches to Management(History):
A. Early Management Thoughts
1. Robert Owen(1771-1858): Various Legislative reforms
were suggested with a view to enhance labour working
conditions.
2. Charles Babbage(1792-1871): Scanlon plan, based on the
profit-sharing plan, was formulated by him. Also proposed
the popular concept of ‗division of labour‘.
3. Andrew Ure(1778-1857): Several management principles
and practices were described by him in an effective manner.
4. Charles Dupin(1784-1873): The study of management was
advocated by him.
5. Henry R. Towne(1844-1924): Significance of business was
emphasized by him. He also stressed on the need to regard
management as an independent discipline of study.
B) Classical Approach:
1)Scientific Approach (Frederick W. Taylor)
2)Administrative Approach (Henry Gantt)
3)Bureaucracy (Frank and Lillian Gilbreth)
C) Behavioral Approach:
1) Human Relation Approach(Elton Mayo)
2) Behavioral Science Approach(Maslow)
D) Modern Approach:
1) Quantitative Approach
2) System Approach
3) Contingency Approach
4) Social System Approach
5) Decision-Making Approach
B) Classical Approach:
1)Scientific Approach (Frederick W. Taylor)
- According to Taylor, ― Scientific management is concerned
with knowing exactly what you want men to do and then see in
that they do it in the best and cheapest way.‖
- Frederick Winslow Taylor was father of Scientific
Management.
- This was widely used by managers in the early 1900s.
- Management should develop standards which are useful
throughout the organization. This is possible by work study
which comprises of work measurement & work
improvement.
- This study can be scientifically focused on time and motion
studies, methods studies and fatigue studies.
 Features of Scientific Management:

1. Separation of planning and Doing: Frederick W.

Taylor separated the functions of planning and doing.
He considered that planning is most crucial task which
should be taken up by specialist only. Thus, when the
planning is perfect then the process of doing will be
smoothly accomplished itself.
2. Functional Foremanship: The functional foremanship
(Introduced by Taylor) deals with the supervising and
directing activities of the organization.
3. Bilateral Mental Revolution: The mental revolution in
scientific management is related to the workmen as well as
the management personnel. A complete mental revolution
in the duties of the workmen towards their employees, and
a complete mental revolution in the duties of the
management personnel towards their employees, day to day
business issues and co-workers, both are important
elements of scientific management.
4. Financial Incentives: Taylor introduced the differential
piece-rate system to motivate and reward the proficient and
better works.
 Principles of scientific Management: (Frederick W.
Taylor-1911)

1) Replacing Rule of Thumb with Science:

2) Harmony in group Action:
3) Cooperation between Management and Workers:
4) Maximum Output in place of Restricted Output:
5) Development of workers through Scientific Selection
and Training:
B)2): Administrative Approach (Henry Fayol (1849-
1925): The administrative theory of management is
focused on principles that could be used by managers to
coordinate the internal activities of organizations. The most
prominent of the administrative theorists was Henri Fayol.
Henri Fayol (1849-1925), was a French industrialist and a
prominent European management theorist.
Henri Fayol is known as the Father of Management and he
developed a general theory of management. 14 principles
of management are used to manage an organization and are
beneficial for prediction, planning, decision-making,
organization and process management, control, and
coordination.
 Features of Administrative Management:

1) Formalised Administrative Structure:

2) Division of labour:

3) Delegation of Power and Authority:

 Henry Fayol’s 14 Principles of Management:

1. Division of Work: The work should be divided among

the individuals on the basis of their specializations, so as to
ensure their full focus on the effective completion of the
task assigned to them.
2. Authority and Responsibility: The authority and
responsibility are related to each other. Authority means the
right to give orders while the responsibility means being
accountable. Thus, to whomsoever the authority is given to
exact obedience must be held accountable for anything that
goes wrong.
3. Discipline: The individuals working in the organization
must be well-disciplined. The discipline refers to the
obedience, behavior, respect shown by the employees
towards others.
4. Unity of Command: According to this principle, an
individual in the organization must receive orders from
only one supervisor. In case an individual has the reporting
relationship with more than one supervisor then there may
be more conflicts with respect to whose instructions to be
followed.
5. Unity of Direction: Unity of direction means, all the
individual or groups performing different kinds of a task
must be directed towards the common objective of the
organization.
6. Subordination of Individual to General
Interest: According to this principle, the individual and
organizational interest must coincide to get the task
accomplished. The individual must not place his personal
interest over the common interest, in case there a conflict.
7. Remuneration of Personnel: The payment methods
should be fair enough such that both the employees and the
employers are satisfied.
8. Centralization: Fayol defines centralization as the
means of reducing the importance of subordinate‘s role in
the organization, and the extent to which the authority is
centralized or decentralized depends on the organization
type in which the manager is working.
9. Scalar Chain: This means there should be a proper
hierarchy in the organization that facilitates the proper flow
of authority and communication. It suggests that each
individual must know from whom he shall get instructions
and to whom he is accountable to. Also, the communication
either going up or down must pass through each level of
authority. In certain circumstances where the quick flow of
communication is required, the rigidity of a scalar chain
can pose problems. Thus, Henry Fayol has suggested ―gang
plank‖ which means anybody in the hierarchy can interact
with each other irrespective of their authority levels.
10. Order: This principle is related to the systematic
arrangement of things and people in the organization. This
means every material should be in its place, and there
should be a place for every material. Likewise, in the case
of people, a right man should be in the right job.
11. Equality: All the employees in the organization must
be treated equally with respect to the justice and
kindliness.
12. Stability of Tenure: The employees should be retained
in the organization, as new appointments may incur huge
selection and training cost.
13. Initiative: The manager must motivate his subordinates
to think and take actions to execute the plan. They must be
encouraged to take initiatives as this increases the zeal and
energy among the individuals.
14. Esprit de Corps: This means ―unity is strength‖. Thus,
every individual must work together to gain synergy and
establish cordial relations with each other.
 Bureaucratic : (Max Weber)
 What is Bureaucracy?: The term bureaucracy means the rules
and regulations, processes, procedures, patterns, etc. that are
formulated to reduce the complexity of organization‘s functioning.
 The Bureaucratic Theory is related to the structure and
administrative process of the organization and is given by Max
Weber, who is regarded as the father of bureaucracy.
 Max Weber was a German sociologist who argued
bureaucracy was the most efficient and rational model private
businesses and public offices could operate in. His
bureaucratic theories influenced generations of business
leaders and politicians well into the 20th century.
 Weber‘s bureaucratic theory contributes significantly to the
classical organizational theory which explains that precise
organization structure along with the definite lines of authority is
required in an organization to have an effective workplace.
 Characteristics of bureaucracies identified by Weber:
1. Task specialization (division of labor). Weber felt that
task specialization promotes the timely completion of work
at the highest level of skill. Tasks, therefore, in Weber's
ideal organization are divided into categories based on
team members' competencies and areas of expertise.
2. Hierarchical management structure. Weber advocated
that management should be organized into layers, with each
layer being responsible for its team's performance. Weber
believed that each layer of management should provide
supervision to the layers below them while being subject to
the control of those above them.
3. Formal selection rules. In the ideal organization, Weber
believed that employees should be chosen based on their
technical skills and competencies, which are acquired
through education, experience or training – no other factors
should be considered. And since workers are paid for their
services, and services are divided by job position, an
employee's salary is entirely dependent on their position.
4. Efficient and uniform requirements. Employees,
argued Weber, should always know exactly what is
expected of them. In the ideal organization, the rules are
clearly defined and strictly enforced. This promotes
uniformity within the organization and keeps the company
running as smoothly and efficiently as possible.
5. Impersonal environment. Under Weber's theory,
relationships between employees are to be only
professional only. The impersonal environment
characterized by bureaucracies is designed to promote
decision-making that is based solely on facts and rational
thinking.
6. Achievement-based advancement. Weber felt that
promotions within an organization should be based solely
on achievement, experience and technical qualifications.
Personal favors, relationships or personality traits should
not factor into personnel decisions.
 Advantages of Bureaucracy:
 Weber‘s bureaucracy theory has been widely applied in
the era of the 1900s by the business entities, government
organizations and political associations.
1. Specialization or Expertise: In bureaucracy
management, the work is divided among the employees
according to their skill, capabilities and expertise, which
results in job specialization in the organization.
2. Skill-Based Recruitment: The employees are recruited
by matching their skills and experience with that required
for the vacant job position to ensure that the right person is
placed at the right job.
3. Predictability: When there is a systematic hierarchy and
defined rules and methods of performing the complicated
tasks in the organization, actions in similar situations
become somewhat predictable for the management.
4. Equality: The management remains unbiased towards
the employees and ensures a fair-judgement at the time of
any issue or problem in the organization.
5. Structure: A systematic organizational structure can be
developed through bureaucracy where the rules,
regulations, methods and procedures are pre-defined.
6. Systematic Record Keeping: This approach focuses on
systematically recording all the business transactions and
operations in documents to be used by the other employees
in future.
7. Rationality: The recording of operations brings
rationality, i.e., framing the laws, rules, regulations and
procedures for future, based on the experience.
C) Behavioral Approach:
 Human relations approach can be further extended to the
―Behavioural science approach‖ or ― Human resource
approach‖.
 The Behavioral approach assumes that social and
psychological features of an employee on individual basis and
as a part of a workgroup needs to be given prime importance.
 As management is all about getting things done by human
resources and the importance of human behavior in order to
achieve efficient and desired results.
 In this approach, prominence is given to increase productivity
through developing human relations and motivating the
employees.
 The core concepts of behavioral approach are leadership,
motivation, participative management, communication and
group dynamics.
 Main Contributors to the behavioral Approach:
 Main contributors to the behavioral science approach are
Elton mask (Hawthorne study), Douglas McGregor
(Theory X and Theory Y), Meslow (Need Hierarchy),
Herzberg (Motivation), Blake and Mouton (Managerial
grid), Bennis (Organizational development),
Likert(Management system ), and Fiedler (Contingency
model of leadership styles ).
D) Contemporary Approaches:
 The modern approach of management theory focuses on
the complex issues of the organization and the
individuals working in that organization.
 The modern management theory came into existence in
the year 1950.
 Contemporary Approaches to Management provides a
framework of management practices based on more
recent trends, such as globalization, excellence models,
productivity and quality issues.
D.1) Quantitative approach:
 The quantitative approach to management involves the use of
quantitative techniques, such as statistics, information models, and
computer simulations, to improve decision making.
 This school consists of several branches.
 The quantitative school of management is a result of the research
conducted during World War II.
 During World War II, mathematicians, physicists, and other
scientists joined together to solve military problems.
 Managers can use computer models to figure out the best way to
do something — saving both money and time. Managers use
several science applications.
 Mathematical forecasting helps make projections that are useful in
the planning process.
D.2) Systematic Approach:
 In the 1960, an approach to management appeared which try to
unify the prior schools of thought. This approach is commonly
known as ‗Systems Approach‘.
 Ludwig von Bertalanffy is recognized as the founder of general
system theory. The system approach is based on the concept that an
organization is a system. A system is defined as a number of
interdependent parts functioning as a whole for some purpose.
Here there are five components: inputs, a transformation process,
outputs, feedback, and the environment.
 The systems approach is very important in general management
analysis. Four especially ideas that have had substantial impact on
management thinking are the concepts of open versus closed
systems, subsystems, and interdependencies, synergy and entropy.
1. Open versus closed systems. According to Ludwig von
Bertlanffy, there are two basic types of systems: closed systems and
open systems. Closed system are not influenced by and do not
interact with their environments. Open systems interact with their
environment. All organizations are open systems, although the degree
of interaction may vary.
2. Entropy. Entropy is a universal property of systems and refers to
their tendency to run down and die. A primary objective of
management, form systems perspective, is to avoid entropy.
3. Synergy. Synergy means that the whole is greater the sum of its
parts. Synergy is an important concept for managers in that it
reinforces the need to work together in a cooperative fashion.
4. Subsystems. A subsystem is a system within a system. From
another perspective, subsystems are parts of a system that depend on
one another.
D.3) Contingency Approach:
 The contingency approach to management is based on the
idea that there is no single best way to manage.
 Contingency refers to the immediate contingent
circumstances.
 Effective organizations must tailor their planning,
organizing, leading, and controlling to their particular
circumstances.
 managers should identify the conditions of a task, the
requirements of the management job, and people
involved as parts of a complete management situation.
 The contingency approach to management assumes that
there is no universal answer to many questions because
organizations, people, and situations vary and change
 Managerial Competencies:
 Management competencies are the skills, habits, motives,
knowledge and attitudes necessary to successfully
manage people. When developed, management
competencies promote better leadership and contribute to
business success.
 Management competencies are categorized as human
capital which is broadly defined as the knowledge and
skills that contribute to workplace productivity.
 Management competencies can be learned and
developed, and it is important to define key management
competencies and measure the proficiency of each leader,
offering frequent assessments and feedback.
 How the Manager’s Job is Changing:
 Managers have always had to deal with changes taking
place inside and outside their organization. In today's
world where managers everywhere are dealing with the
continued corporate ethics scandals, global economic and
political uncertainties, and technological advancements,
change is a constant.
 How the Manager’s Job is Changing:

1) Importance of customer to the managers job.

2) Importance of innovation to the managers job.

3) Importance of sustainability to the managers job.

4) Increased Competitiveness
THANK YOU…!