Learning Objectives

Management
Principles and ●Coordination mechanisms in organisations
●Managerial Roles

Applications
●Managerial Skills
●Managerial Competencies
●The Science and the Art of Management
●Role of Theory and History in Management
●Evolution of Management Perspectives
●The Classical Management Perspective
UNIT I: INTRODUCTION ●The Behavioral Management Perspective
●The Quantitative Management Perspective
Dr.Neerza,
Assistant Professor, Department of Commerce ●Integrating Perspective for Managers:
PGDAV (Day) College, University of Delhi
Systems and Contingency Perspectives
●Contemporary Management Thinkers
What is Management?
A set of activities (including planning and decision making,
organising, leading and controlling) directed at an
organisation’s resources (human, financial, physical, and
information), with the aim of achieving organisational goals
in an effective and efficient manner.

● A manager’s job/responsibility is to use organisational

resources to achieve its goals, to carry out the
management process.
● Using resources wisely in a cost effective way
(efficiency)
● Making the right decisions and successfully implementing
them (effectiveness)
 Characteristics of Management

UNIVERSAL
INTEGRATIVE FORCE
MULTI-DISCIPLINARY

GROUP PHENOMENON MANAGEMENT PURPOSEFUL

SOCIAL PROCESS CONTINUOUS PROCESS

CREATIVE
 Management Vs. Administration
ity to relate to one ADMINISTRATION
her like empathy,
MANAGEMENT
assion and authenticity.
● Thinking/Determinative function
● Determination of major
● Doing/executive function Critical
objectives/policies ability
● Implementation of policies
● Top level bigger p
● Largely Middle and lower level complex
● Planning and Control decision
● Directing and organising
● Conceptual and Human skills logical
● Technical and human skills
● Used in Govt. and public sector
● Used in Businesses
e, ● Minister, Commander,
y, ● MD, GM, BM, SM, etc.
Commissioner, Vice-chancellor,
tc. ● Influenced by organizational
Registrar, etc.
objectives and policies.
● Influenced by public opinion and
outside forces.
 Starbucks is a true
example that effective
management is blend
of rational objectivity
and intuitive insight!

THE SCIENCE OF MANAGEMENT THE ART OF MANAGEMENT

●Intuition, experience, instinct and personal
●Rational, logical, objective and systematic
insights
●Scientific approach
●Even “objective facts” may prove to be wrong
●Technical, diagnostic and decision making
●Conceptual, communication, interpersonal and
skills
time-management skills

The Science and the Art of Management

 COORDINATION Coordination is
the essence of
management

WHAT? WHY? HOW?

●Unity of effort/action ●Key to other management ●Sound planning

●Harmonise all functions ●Sound and simple organisation
activities (Henry ●Increases efficiency and ●Chain of command
Fayol) harmony ●Effective communication
●Happens by choice, not ●Brings unity of ●Special coordinators/Liaison
by chance direction departments
●Orderly arrangement of ●Improves human relations ●Sound leadership
group efforts ●Growth in number and
●Continuous activity complexity of activities
●Runs through all the ●Clash of interests
management functions ●Interdependence of units
●Balancing, timing and ●Difference in attitudes
integrating and working styles
●Coordination vs.
Cooperation
 Importance of Management
● Optimum utilisation of resources (efficiency)
● Performs vital functions
● Instrumental to coordination
● Development of intellectual capital (HRD)
● Ensuring profitability and sustainability
● Creating a dynamic organisation
● Achieving goals: individual+group/common
● Development of organisation-development of society
● Acts as a creative force and adds value to every element of organisational
functioning
● Simplifies organisational structure
● Encourages staff to participate
● Synergy among different departments, people, levels, etc.
● Brings maneuverability and adaptability for conducive business environment
● Vision of the organisation
● Augments competitive strength
● Creates the image of organisation
Interdependence: pooled, sequential and reciprocal

Coordination: standardize processes/outputs; basic plan/guide to

move from one team to another; continuous information flow, group
meetings, multiple integrators, problem of centralized coordination,
even micro manage can backfire, decentralized coordination,
possibility of reaching out to piloting team mates, open lines of
communication, also have periodic checkin meetings,
(incentives+relations).

Best practices to dividing work n coordination: optimal team size,

clear goals n standards, minimize links in communication (We can empower and
enable our teammates to coordinate directly as opposed to asking
them to go through me every single time, division of labor focused
on ultimate goal-dividing to make subsequent integration easier,
dont give most impt work to least committed worker-avoiding
conflicts b/w pvt and shared goals,
Levels of Management
-

Howard Schultz, CEO of Starbucks, (Next is Laxman Narasimham),

Sunder Pichai (CEO of Google) while Sergey Brin and Larry Page
are google founders. Mary Bara is CEO of GM.

Rajiv Kumar is the Regional Operations Manager (North and East

India) at Starbucks since 2019. Ratnakar Reddy is the REgional
Sales Manager (South India) since 2020 at Google.

Rajiv Kumar was the Store Manager at Starbucks in 2012 to 2014.

Amit Mishra is Store Manager at Starbucks in Mumbai.
 1
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 Henry Mintzberg
suggests that
managers play ten
basic managerial
roles grouped into
three broad
categories

● Figurehead
INTERPERSONAL ● Leader
● Liaison
● Monitor
INFORMATIONAL ● Disseminator
● Spokesperson
● Entrepreneur & Negotiator
DECISIONAL ● Disturbance handler
● Resource allocator

Managerial Roles
 ● Measuring outputs rather than ● Focus on behavioral aspect.
inputs. ● Aim was to raise the standard of
● “Occupational standards” from management professionals.
“occupation’s key role” as
● Competency is defined as a set of behavior
benchmarks of best practice.
patterns that help the employee to perform
Work-oriented tasks and functions effectively.
COMPETENCIES
Approach (UK) ● Standards could be used to appraise and train
MANAGERIAL

managers.
● Criticised for its ‘one size fits all’ idea.
● Increased paperwork with no managerial
development.
● Designing a program.
● Existence of causal relationship between
competence and superior performance.

● Boyatzis proposed a number of

Worker-oriented competencies categorised into six
Approach (US) categories.

● Expertise and experience, knowledge, basic

cognitive, cognitive intelligence, emotional
intelligence and social intelligence.

David Clarence McClelland, an American psychologist, argues that

competency, being a broader concept than skill, distinguishes a
successful manager from an average one.
 Senge, Covey, Peters, Collins, Porter,
Kotter and Hamel

The Classical The Quantitative The Contingency

Perspective Perspective Perspective

1890s 1930s 1950s

1920s 1940s

The Behavioral The Systems Theory Z,

Excellence
Perspective Perspective Perspective &
Contemporary
Applied
Perspectives

Evolution of Modern Management Perspectives

The Classical
Management
Perspective
The Classical Management PErspective (1/7)
SCIENTIFIC MANAGEMENT

● Problem of productivity
(Soldiering)
● Frederick W. Taylor, Frank
Gilbreth, Lillian Gilbreth,
Henry Gantt and Harrington
Emerson.
● Design and implementation of
Piecework pay system.
● Introduction of rest periods
to reduce fatigue.
● Higher quality and quantity of
output and improved morale.
The Classical Management PErspective (2/7)
Developing a science
04 Continue to plan the
for each element of
work, but use workers
the job to replace old
to get the work done.
rule-of-thumb
methods.
01 03

Scientifically select Supervise employees

employees and then to make sure they
train them to do the follow the prescribed
job.
02
methods for
performing their jobs

Principles of Scientific Management

 The Classical Management PErspective (3/7)
Time and motion study
CRITICISM
Scientific task planning
●Treating workers as factors of
SCIENTIFIC MANAGEMENT Standardization and simplification production and not as human
TECHNIQUES beings.

Differential piece rate system ●Overlooking social and

ego/esteem needs of workers.
Functional foremanship
●Limited in scope with focus on
efficiency only.

●Infeasible in practice and

violates unity of command.

●Adverse effect on worker’s

physical and mental health.
The Classical Management PErspective (4/7)
ADMINISTRATIVE MANAGEMENT

● Managing whole organisation

than individual employees.
● Henri Fayol, Lyndall Urwick,
Max Weber and Chester Barnard.
● Systematize the management
practice.
● Identification of planning,
organising, leading and
controlling as the core of
management process.
 HENRI FAYOL’S
14 PRINCIPLES OF MANAGEMENT
● Division of work
● Authority and responsibility
● Discipline
● Unity of command
● Unity of direction
● Subordination of individual
interest to the common good
● Remuneration of personnel
● Centralization
● Scalar chain
● Order
● Equity
● Stability of tenure
● Initiative
● Esprit de corps
The Classical Management PErspective (5/7)
With little modification
these principles are still a
critical part of most of the
practicing contemporary
managers across
countries.
CRITICISM
● Lack of empirical evidence
● Concepts not properly explained
● Considers human being passive
● Assumes that all organisations are managed by
the same set of rules and principles
● Pro management bias
● More appropriate for the past than for the present
The Classical Management PErspective (6/7)
SCIENTIFIC MANAGEMENT ADMINISTRATIVE MANAGEMENT
(Taylor) (Fayol)

Focus Employees within the organisation and on Focused on total organisation and ways
ways to improve their productivity to make it more effective and efficient

Contributions Laid the foundation for later developments Identified important management
in management theory process, functions and skills that are
recognized even today

Limitations More appropriate for stable and simple Prescribed universal procedures that are
organisations than for today’s dynamic not appropriate in some settings
and complex organisations
The Classical Management PErspective (7/7)
Max Weber’s ideal conceptual model of ● Division of work
bureaucracy is characterised by the following: ● Hierarchy of authority
● Rules, regulations and
procedures
+++ --- ● Record-keeping
Specialisation Rigidity ● Impersonal relationships
Structure Goal Displacement ● Technical competence
Rationality Impersonality
Predictability Compartmentalization
Democracy Paperwork
Empire-building
Red tape

Max Weber’s work on bureaucracy laid the foundation for

contemporary organisation theory
The Behavioral
Management
Perspective
The Behavioral Management Perspective (1/4)
●Emphasized individual attitudes,
behavior and group processes.
HAWTHORNE
●Stimulated by industrial
EXPERIMENTS
psychology, Munsterberg and Follett
/STUDIES
contributed to the development of
behavioral approach to management.
●Elton Mayo, Douglas McGregor and
Abraham Maslow contributed to the
advancement of human relations
EMERGENCE OF
HUMAN RELATIONS
ORGANISATIONAL
movement. MOVEMENT
BEHAVIOR
●Organisational behavior recognizes
the complexities of human behavior.
●Presented that employees are
valuable resources.
 ● Hugo Munsterberg and Mary Parker Follett, early and major contributors to the
development of behavioral approach to management.
● A series of studies, sponsored by General Electric, conducted near Chicago at
HAWTHORNE Western Electric’s Hawthorne plant between 1927 and 1932.
EXPERIMENTS ● Elton Mayo and his associates carried out experiments including illumination
experiment, piecework incentive pay plan, interviewing programme and others.
● Individual and social processes significantly shaped worker attitudes and behavior.
● Concluded that human behavior is relatively more important in the workplace.

Conclusions/Contributions/Limitations/Criticism
●Workers are also socio-psychological not motivated merely by money.
●Emergence of Sub-disciplines like industrial psychology, individual sociology,
social psychology and group dynamics.
●Pro-management and clinical bias. Doubtful validity. Ignoring trade unions.
●Complexity of individual behavior makes its prediction difficult.
●Make profits vs. keep workers happy. Unscientific.

The Behavioral Management Perspective (2/4)

 ●Workers respond primarily to the social context of the
workplace.
●Abraham Maslow advanced a theory of hierarchy of needs.
●Douglas McGregor developed Theory X and Theory Y. HUMAN RELATIONS
●Theory X represented the views of scientific management MOVEMENT
THEORY X
●Whereas Theory Y represented the human relations approach.
Dislike work.
Need to control, direct,
SELF-ACTUALISATION coerce and threaten to get
1 (Achievement and the work done.
ESTEEM (Status and Job Challenging job) Prefer to be directed to
Title) 2
avoid responsibility.
3 BELONGINGNESS Have little ambition.
SECURITY (Stability and (Friendship and Friends at
Pension Plan) 4 Work) THEORY Y
Do not dislike work.
PHYSIOLOGY (Food and Internally motivated and
5
Maslow’s Base Salary committed towards goals.
Need Seek and accept
Hierarchy responsibility.
Approach Bright and innovative.

The Behavioral Management Perspective (3/4)

Challenged the view
that employees are
tools and promoted the
belief that employees
are valuable resources.
Human behavior in organisations is complex and
unpredictable. Individuals react differently to the
same situation.
EMERGENCE OF
ORGANISATIONAL Draws from psychology, sociology, anthropology,
BEHAVIOR economics and medicine

Addresses individual, group and organisation

processes

Include job satisfaction, stress, motivation, leadership,

Human Relations vs. Behavioral Approach group dynamics, organisational politics, interpersonal
●Individuals vs. groups. conflict and organisational structure and design
●Hawthorne experiments vs. human relations movement.
●Conflict needs to be minimised vs. Conflict is inevitable.
●Elton Mayo vs. McGregor, Likert, Davis and others. Managers must achieve a balance between individual
●Social vs. socio-technical system. and organisational goals
●People are considered alike vs. recognition of differences
among individuals.

The Behavioral Management Perspective (4/4)

 The
Quantitative
MAnagement
Perspective
The Quantitative MAnagement Perspective(1/2)
Decision making,
cost-effectiveness,
mathematical models and
the use of computers.

MANAGEMENT
MANAGEMENT INFORMATION
SCIENCE SYSTEM (MIS)

● Designing and implementing

● Focuses on development of
mathematical models.
● Increases decision
effectiveness.
● Solving technical rather than
human behavior problems.
computer-based information
OPERATIONS
systems.
MANAGEMENT
● Turning raw data into useful
information.
● Applied management science.
● Inventory management, Linear
programming, Break-even
analysis, production planning,
etc.
The Quantitative MAnagement Perspective (2/2)
ASSETS
● Provided managers with an
abundance of decision making
tools.
● Increased understanding of overall
organisational processes. CRITICISM
● Useful in areas of planning and ● Mathematical models cannot fully
controlling. account for individual behaviors
● Evolution of relatively new and attitudes.
management concepts. ● They require a set of unrealistic
assumptions.
● Time needed to develop competence
in quantitative techniques retards
the developments of other
managerial skills.
 Integrating
Perspectives for
Managers
Integrating Perspectives for Managers (1/3)
Systems and contingency INPUTS
TRANSFORMATION
PROCESS
OUTPUT
approaches integrate our
understanding of all the three
Material, human, Technology, products/service,
management perspectives. financial and operating profit/losses,
information systems, employee
resources. administrative behaviors, and
Organisations as Contingency
systems and information
perspective
systems control systems. outputs.
suggests that
provides us with appropriate
concepts of: managerial Feedback
Open systems behavior in a given
Sub-systems situation is
Boundary contingent on The systems
Synergy unique elements in perspective of
Entropy that situation organisations

A system is an interrelated set of elements functioning as whole.

 CONTINGENCY APPROACH

SYSTEMS APPROACH ● Clear view of job realities

SYSTEMS APPROACH VS. CONTINGENCY APPROACH
● Common sense and CONTRIBUTIONS
● Examines interrelationship and
● Interdependent
wide-ranging utility
interdependence between differentand interacting subsystems vs. Situation
specific managerial ●
parts of the organisation Integrates the findings of
action
● Acknowledges earlierfocused
environmentalmodel vs. Action
● Theoretical approaches
influences ● All organisations are●alike Organisations and
vs. Each organisation is unique
● An integrated●or holistic thinking
Numerous concepts vs. Environment
No conceptsare too
● Strong conceptual framework
● Neutral vs. Rejects thedynamic
universality of principles
● Lack of unified theory
● Internal vs. External ●environment
Relatively more eclectic CRITICISMS
● Vague and abstract
● Limited applicability ● Inadequate literature
● Reactive and common
sense

Integrating Perspectives for Managers (2/3)

 Managers must
acknowledge the
interdependence between
organisational units,
environmental influences,
and the unique
characteristics of each
situation.

Before using any of

these approaches,
managers should
recognize the
situational contexts
within which they
operate.

Source:Ricky W. Griffin, Management, Texas A&M University

Integrating Perspectives for Managers (3/3)

Contemporary
Management
Thinkers
Management by Objectives (MBO) A management practice
aims to increase
organizational
● Superior-subordinate participation.
performance by aligning
● Quantifiable goals.
goals and subordinate
● Focus on what must be accomplished.
objectives.
● Effective results.
● Consistent support from superior.
Performance review
Periodic and quantitative
03 appraisal to provide:
feedback regarding
Establishing goals performance; basis for
Clear and concise goals of effective job behavior; and
performance and personal information to managers
development. MBO PROCESS

Focus on what must be Action plan

accomplished (goals)
rather than how it is
to be accomplished
(methods).
01 02 What is to be done, how the
subordinate will proceed,
what steps will be taken, and
what activities will be
engaged in.
Management by Objectives (MBO)
●Increases employee motivation.
●Compete with themselves than with other
managers.
●Results in ‘means ends’ chain.
●Develop personal leadership.
●Reduces role conflict and ambiguity.
●Provides more objective appraisal criteria.
●Aids in planning.
●Identifies performance deficiencies.
Organisational Training
Commitment
Top Management Support
Take care of the necessary mechanics
Adequate time and resources
Participation
Politics
Timely feedback
Purpose
● Unrealistic expectations.
● ‘Reality check’ skill.
● Lack of goal clarity and/or rational.
● Appraising performance can be an acute problem.
● Not a panacea for all organisational ills.
● Takes great deal of the manager’s time and energy.
● Participation problem.
● Failure to teach the philosophy.
 Five Forces Analysis: Michael E. Porter Framework for
understanding the
competitive forces
Framework for at work in an
assessing and industry, and which
evaluating the drive the way
competitive economic value is
strength and divided among
position of a industry actors.
business.

BENEFITS
Readings ● Understand factors affecting profitability
How Competitive Forces Shape Strategy in a specific industry.
Porter's Five Forces of Competitive Position Analysis ● Whether to enter a specific industry.
The Five Forces ● Whether to increase capacity.
● Help developing competitive strategies.
The Explainer: Porter's Five Forces - HBR Video

Source:https://www.cgma.org/resources/tools/essential-tools/porters-five-forces.html
Fortune at the Bottom of the Pyramid (BoP): Eradicating
Poverty Through Profits
Middle- and upper-income people
in developed countries;
rich elites from the developing world
Poor customers in developed nations;
rising middle classes in developing countries
4 billion people earning $2 or less per day
CHARACTERISTICS
● Emerging markets
● Low purchasing power
● Customers living in suburban and rural areas
● Having little or no education
● Do not own land or other assets
Tier-I ● Not reachable through distribution, communication, etc.
● Ignored and considered non-consumers
● Markets are under trapped and less competitive
Tier-II
& III WHAT MULTINATIONALS SHOULD DO TO SERVE BOP MARKETS
● Meet unique needs and purchasing power
● Develop new business models
● From ‘bigger is better’ to ‘small is beautiful’
Tier-IV ● Higher capital efficiency
● Engaging BoP people to improve their income/purchasing power
Fortune at the Bottom of the Pyramid (BoP): Eradicating
Poverty Through Profits Huge Acceptability
opportunity
Availability
Wheel; Awareness
Nirma; Affordability
e-choupal Market
development

Product
development
and
innovations

Small is
beautiful CRITICISM
● Market size does not exist
● Small volumes with very little margins does not go well
Key Ideas ● Lack of purchasing power of BoP segment
● Poor are not savvy and value-conscious consumers
● Only way to reduce prices is to reduce quality
 Places where people continually expand their

Learning Organisations capacity to create the results they truly desire,

where new and expansive patterns of thinking
are nurtured, where collective aspiration is set
free, and where people are continually learning
Systematic problem solving how to learn together.
--Peter Senge

● Creative problem solving

Experimentation
● Disciplined thinking
● Learn from anything & everything
● Emulate the best practices
Learning from past
experiences
BUILDING BLOCKS
● Shared vision
● Shared leadership
Learning from others ● Team based structure
● Open information
● Employee empowerment
● Customer focused strategy
Transferring Knowledge ● Culture of innovation
● Systems thinking
Reengineering
Reengineering strives for dramatic levels of improvement. It
must break away from the conventional wisdom and the
constraints of organisational boundaries and should be broad
and cross-functional in scope.
Discontinuous thinking of recognising
and breaking away from the outdated Reengineering is not the same as automation
rules and fundamental assumptions Reengineering is not downsizing
that underlie operations. Reengineering is not the same as reorganisation
Reengineering is not the same as quality improvement
WHAT HAPPENS WHEN A COMPANY
RE-ENGINEERS ITS BUSINESS
PROCESSES? Fundamental
Rethinking
Radical
Redesign
➔Simplified and integrated key
processes.
➔Jobs change from specialised tasks
Dramatic
to multidimensional work. Improvements
➔People are empowered.
➔Constant learning is encouraged.
➔Shift from activity to results.
➔Productive value Key
➔Managers act as coaches and mentors. Processes
➔Flat organisational structure. BUSINESS
PROCESS
➔Checks and balances are reduced. REENGINEERING
Management Perspective: History is Irrelevant and
Theory is Abstract?
THEORY HISTORY

● Scientific Management practiced ● Sense of heritage help managers

by Black & Decker, Nissan and avoid mistakes of others.
Samsung. ● Levi Strauss, Lloyd’s of London,
● Behavioral Perspective used by Disney, Honda and Unilever all
Best Buy, Texas Instruments and maintain archives of their past.
Google. ● Winston Churchill, Plato and
● Developing and refining own Machiavelli inspired many
theories/ideas successful managers.
Thank you…
Keep learning, Keep Growing...