Management

- Process of using resources in order to reach organizational goals

*Organizational goals – tasks carried out by individuals in organizations called managers

- Refers to the act of bringing together the work activities to achieve the organization’s goals and
objectives. It basically means teamwork.

Characteristics and Nature of Management

1. Management is goal-oriented – means to achieve certain goals, management has no

justification existing without goals. The basic goal of management is to ensure efficiency and
economy in the utilization of human, physical and financial resources.
2. Management is universal – management is an essential element of every organized activity.
3. Management is a continuous process
4. Management is multi-disciplinary – depends on wide knowledge and practice derived from
various disciplines.
5. Management is an intangible force – management is an unseen and invisible force. It cannot be
seen, but its presence can be felt in the form of results in every organization.
6. Management is situational – to solve particular problems, conditions and situations must be
taken into account.
7. Management is both science and art –science is a systematized body of knowledge based on
certain principles that are generally applied.

Evolution of Management Thought

Pre-Scientific Management

- Employees went to their work instead of receiving it.

Classical Theory

- F.W. Taylor, H.L. Gantt, Emerson, Frank, Lillian Gilberth, etc., laid the foundation of
management, which came to be known as scientific management.

Features of Management in the Classical Period

1. It was a closely associated with the industrial revolution and the rise of large scale enterprises.
 2. Classical organization and management theory are based on contributions from a number of
sources.

Neoclassical Theory

- Built on the base of classical theory. It modified, improved, and extended the classical theory.
- Classical theory concentrated on job content and management of physical resources whereas,
neoclassical theory gave greater emphasis to individual and group relationships in the
workplace.

Hawthorne Experiment

- In 1927 to 1932, this experiment brought out that the productivity of the employees is not the
function of only physical conditions of work and money wages paid to them. It depends heavily
upon the satisfaction of the employees in their work situation.

Modern Theory (System Approach)

- Considers an organization as an adaptive system that has to adjust to changes in its

environment.
- An organization is now defined as a structured process in which individuals interact for attaining
objectives.

A System had Three Significant Parts

1. Every system is goal-oriented, and it must have an objective to be attained.

2. In designing the system, we must establish the necessary arrangement of components.
3. Inputs of information, material, and energy are allocated for processing so that outputs can
achieve the objective of the system.

Systems Approach Applied to an Organization

1. It is a sub-system of its broader environment.

2. It is goal-oriented
3. It is a technical subsystem
4. It is a structural subsystem
5. It is a psychosocial system
6. It is coordinated by a managerial sub-system

Contingency Theory

- Systems approach emphasizes that all sub-systems of an organization along with the super
system of the environment are interconnected and interrelated.
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