INTRODUCTION To MANAGEMENT ’ [: 1. INTRODUCTION To MANAGEMENT Management is as old as man itself. It had been a common sight that all those who were in busi iness where not so successful. Similarly, those who were on the top once, are today nowhere and on the other hand those who were novice Once Upon a time are today on the pinnacles of success, What does this happen? one right decision When human being started grouping activities for the attainment of the same common objectives whenever a group is formed and grpup activities are is organised to achieve common objectives, management is needed to direct, coordinate, and integrate the individual activities ofa group hand secure teams work to accomplish organizational objectives. Concept of management: Management is what managers do. 2 also refers to people at the top level, in the organization, concerned with decision making: Defining the term management is not so simple because the term management is used in a variety of ways. being a new discipline, it has drawn concepts and principles from several disciplines such as economics, psychology, sociology, anthropology, statistics and so on. Sociology: study of development, styucture and functioning of human society. Psychology: scientific study of human mind and it's function especially behaviour. Anthropology: study of human society and cultures and they development Each group of contributors has treated management differently. For example: Economists have treated management as a factor of production, Sociologists have treated it as a class or group of persons, Practitioners have treated it as a process comprising different activities. It is often viewed as manoeuvring, that is, doing something cleverly to change a situation and make things happen the way you want them to. Definitions: ¢ “To manage to forecast and plan, to organise, to command, to coordinate and control”. -- Henry Fayol “What is the art of getting things done through and with people in formally organised groups”. o _ Koontz - 1 SHUGUFTA NISHAT, 5 ASST. PROFESSOR, BRECW.jal reSOUFCCS to y . material re: hig ati uman and zation of hi Management is effetive wil ; . WEG : * i t it is dong jectives”. then saying tha ei anni rt fkriowing what you want to do and ne, the art 0! aa F i « “Management is t best and the cheapest way” Features of Managements 1. Organized Activities are involved in working f organized activities, where a group Of| people ‘acess 0 Seer ¢, The organized activities may e, management comes into existenc ee y structured organization ‘to a very loosely structured take a variety of forms ranging from a tighth organization. . . of Objective: . eau or wn of objectives should exist towards which the organized group activities “ directed. The existence of objectives is a basic criterion of every human organization because al organizations are deliberate and purposive creation and therefore, they should have same objectives. The objectives are agreed: upon by the members of the group/organization. The realization of objectives is sought thrgugh the coordinated’ efforts of the people constituting an organization. 3. Relationship among Resources: \ Organized activities meant to achieve common goals are brought about to establish certain relationships among the available resources. Resources include money, machine, materials, and men. The essence of management is integration of various organizational resources. Thus, management is concerned with the proper utilization of human resources which, in tum utilize other resources. . i 4. Working with and Through People: 4 - Management involves working with people and getting organizational objectives achieved through them. The idea of working through people is interpreted in terms of assigning activities to subordinates. Through the process of assignment and reassignment of activities, the actual work is performed by people at the operative level which is the lowest level in an organization 5. Decision-making: . . Decision-making basically involves selecting the most appropriate alternative out of the several. n i . : i The quality of alternatives which a manager selects determines the orgatiizatiohal performance, \ 2 SHUGUFTA NISHAT, . ASST. PROFESSOR, BRECW.the ent; fd the entire future of the Organizat by Managers, The Success or faj make, ‘lon rests on the degree to which the tight decisions are made lure of managers can be judged by the Quality of decision that they Nature of Management: The study and application of management techniques in managing the affairs of the organization have changed its'nature over the period. Various contributions to the field of management have changed its nature from merely a practice to science. 1. Multidisciplinary: Management drawn freely ideas aiid concepts from disciplines as psychology, sociology, anthropology, economics, ecology, statics, history etc. Management integrates the ideas and concepts taken from this discipline and presents newer concepts which can be put into practice for managing the organization. 2. Dynamic Nature of Principles: Principle being a fundamental truth which establishes cause and effect relationships of a function. The principles framed by the management are flexible in nature and change with the change in the environment in which an organization exists. 3. Relative, not Absolute Principles: Management principles being relative not absolute, should be applied according to the needs of the organization in the light of prevailing conditions. Thereby giving allowance for different changing environment. 4, Management Science or Art: Management is both science and art. Management uses both scientific knowledge and art in managing an organization. Science is based on logical consistency, systematic explanation, critical evaluation, and experimental analysis. The process of management does involve the use of know- how and skills like any other art such as music, painting, sculpture etc. 5, Management as Profession: Profession is an occupation for which specialized knowledge, skills and training are required and the use of these skills are not meat for self-satsfaction, but these are used for larger interests of the society and the success of these skills are measured not in terms of money alone. 3 SHUGUFTA NISHAT, . ASST. PROFESSOR, BRECW.ip ig ment: a en i inciples related to m, Clearly defined responsibilities, concepts, theories, and princip! : anageria fun “ i f this. A spects 0! define the scope of management. Let’s look at the various asp efi Sere t 1. Financial Management stevtemsy ayy Every enterprise prioritizes financial management because finances can g' ly ‘ vitna oo re ir returns to stakeholders, managed properly. Effective financial management ensures there are fair re ; i i ital. It includes preparation proper estimation of capital requirements and laying down optimal capital. It preps ivi ici iegotiations with and examination of financial statements, creating proper dividend policies and neg external stakeholders. 2. Marketing Management: ‘The scope of management in marketing extends to planning, drganizing, directing, and ee activities in the marketing department. Identifying customer requirements is crucial for providing business solutions. When a manager is fully aware of the benefits of the products and/or services the organization provides, they achieve better results. Marketing ‘management ensures that available resources are properly utilized, and thé best possible outcomes are achieved, 3. Personnel Management: Personnel management—as the name suggests —deals with personnel or individuals in a business environment. It includes the recruitment, transfer, termination, welfare, and social security of employees. This aspect of management is extremely importapt as employees form teams and teams drive an organization’s goals. Individual efficiency. Without attending to employee needs and want. San organization is likely to struggle. 4. Production Management; Productivity also contributes to overall This type of management refers to the process of creating utilities, When you convert raw materials ‘0 finished products and oversee the planning and regulation, management. Without production, there isn't any finished organizations can’t generate interest or profits. The final product must fulfil customer Tequirements. The process includes quality control, research and development, plan layout and simplification, ood or service and without it, 5. Office Management: This includes controlling and Coordinating all office activities to achieve an organization’s goals and targets. For example, an administration's efficiency impacts a business 4 SHUGUFTA NISHAT, ASST. PROFESSOR, BRECW. ~y, The more organized ¥ i ly Th 8 he departments and responsibilities are, the more effective an ization is. tance of Management: D nt have been important to the daily lives of people and to the organizations. The anagem fa yortance of mana; " ; ve Utilization of Resources: ried to make effective utilization of various resources. the resources are scarce in gement may be traces with the following: demand of the society, their contribution should be more for the interests of the society. management not only decides in which alternative a particular neral i : s 1d be used, but also tekes action to utilise it in that alternative in the best way. resource shoul 2 Development of Resources: Manage! Most of the re management is involved in these organised activities. ment develops various resources. this is true with human as well as non-human factors. searchers for resource development are carried on in an organised way and 3, It Ensures Continuity in the Organization: Continuity is very important in the organizations. where there are no proper guidelines for decision making continuity cannot be guaranteed. best please it is quite natural that new people. join while some others retire or leave the organisation. it is only managernent that keeps the organization continuing. 4. Integrating Various Interest Groups: In organised efforts, there are various interest groups and they put pressure over other groups for maximum share in the combined output. for example, man-in case of business organization, there are various pressure groups search as shareholders, employees, government etc, these interest groups have various pressure on an organization. management must balance these pressures from various interest groups. 5. Stability in the Society: Management provides stability in the society by changing and modifying the resources in accordingly the changing environment of the society. in this modern age, more emphasis is on invention for the betterment of huntan beings. these inventions make old system and factors mostly obsolete and inefficient. management provides integration between traditions and new inventions, Fi a ind safeguard society from the unfavourable impact of these inventions so that continuity in social Process is maintained. 5 SHUGUFTA NISHAT, ASST. PROFESSOR, BRECW.6. NRT COTE Focuses on Group Efforts: ote em It lowed to plan and organise independently whi an everyone is allowe iu nothi ; ‘ rect group effon, i a erefore, management is needed to guide and direct grou ng but chaos. Th F ded ide and di ee t all levels of organization should pe,§ a i jizati bjectives managers ‘0 achieve the organizational ol ‘ iatof maagenent different functions. a function is a group of similar activities, have the managem« fa ifferent functions. " ; io it rying from 3 to 8. varies from author to author with the number of functions varying . ~ planning, organising, © Henry Fayol lists five functions are elements of management process- planning, commanding, coordinating, controlling. . isi directing, + Luther Gullick coined a new term ‘POSFCORB’--- Planning, organising, staffing, e coordinating, reporting, budgeting. + Koontz identified planning, organising, staffing, directing, leading, and controlling as major functions. + EFL Breech identified planning, organising, commanding, Coordinating and Controlling as the functions of management. From this, it can be generalized functions of mana; igement are planning. organising, staffing, directing, and controlling, The functions of management are as follows: 1. Planning: Planning i the conscious determination of future course faction. this involves why an action, what action, Planning is also referred to as the process of given goals. In other words, how to act, and when to act, ‘Thus, Shea determining the best course of action to achieve the planning ends with selection or decision making, ‘The planning function is preferred all through the organization at all levels and hence, itis said to be all persuasive, The best form of seeking performance from people in the organization’ east to ensure that they know the plans drawn to achieve the target ts, Elements of planning out their plans: From the plans, managers develop the following so that they can be useful to carry: at is * Forecasts - These are predictions of wh ‘and present data. The process of preparing fo Boing to happen in the future based on the past recasts is called forecasting, * Objectives - Objectives are set for every indi dividual and department in the organisation, ‘ SHUGUFTA NISHAT, ASST. PROFESSOR, BRECW,jzveryone works to achieve the given objectives. The perf . ° tlormance of an indi department canbe reviewed or evaluated considering whether the objech on vot jectives are achieved or Policies - These specify what can be done or what cannot be done to achieve the gi : 1e given objectives. . Strategies - These refer to the course of action to be followed and how the resources are to be deployed to achieve the given objectives. Programmes - These specify what is to be done. Procedures - These outlines how a task is to be carried out. Schedules- These indicate what is to be done at a given point of time, Budgets - These are the plans expressed in quantifiable details such as sales budget, expense budget, and so on. 2. Organising: Refers to the process of grouping the related activities and assigning them to a manager with authority to supervise it. organising is the process of dividing Work into convenient task or duties, grouping of such duties in a form of positions, grouping of various positions into department and sections, assigning duties to individual positions, and delegating authority to each position show that the work is carried out as planned. it is viewed as a bridge connecting the conceptual idea developed in creating and planning to the specific means for accomplishment of these ideas. organising makes the organizational environment more conducive for group effectiveness. %, Staffing: . Staffing involves managing the various positions created by the organising process. it includes preparing inventory off personal available and identifying the sources for people, selecting people, training, and developing them, fixing financial compensation, apprising them periodically etc. In small organisations All these are taken care by the manager himself, But in large organizations, a separate department called personal department looks after these functions it is also called as human resource department. This is headed by a qualified professional manager called human resource manager personal professional manager or human resource manager # Directing: After filling the positions in the orghnization with the right kind of people, the next task is to guide and enable them to achieve the common goals. directing is the process of issuing orders and 7 SHUGUFTA NISHAT, ASST. PROFESSOR, BRECW. EEE NESSof = NT TOU Berson muowes ceria oh uw the Athual Yeruy ah any, a i i Bcahee of desiah ong o,f WN ens that aduad vesulty “match with dryecl el 7 eaten to guide and teach the subordinates the proper methods of work and ensurin} perform ther jobs as planned. When people are available inthe organization, they must km they are expected to do in the organization. superior managers fulfil these requireme communicating-to subordinates about their expected behaviour. Once subordinates are oriented the supervisors have continuous responsibility of guiding ay ‘eading them for better work performance and motivating them with zeal and enthusiasm. Directing includes: coordinating controlling involves identification of actual deviations between the 2, action so that actual results match with the expected results, Leading, motivating communicating, results, comparison, identification of if any, and taking of corrective Hes in family search as family head, brother, Managers also performed several rules do officially they are ee ee Doctor Henry Mintzberg, A manag Sinent professor from MC Gill University, Canada classified the managerial rules as follows: * Interpersonal roles : * Informational roles * Decisional roles * Emerging roles Mintzberg carefully studied what managers do, and Outlined the above managerial roles in his book, ‘The Nature of Managerial Work’, SHUGUFTA NISHAT, ASST. PROFESSOR, BRECW,A: Interpersonal Roles of a Manager ole of a manager are devised according to three specified designations of a m: . anger which s,s follows, Figure Heads: The manager as @ figure head symbolizes the organisation, signs legal documents, and participates in the events of ground-breaking ceremonies or opening of new branch offices. Leaders: ‘The managers who are acting as leaders use power, the needs of the individual subordinate orgat coordination techniques and motivational tools for integrating nisational members with the organisational needs to achieve the set objectives. 10. Liaison: ‘The managers as a liaison, develops and activate relationships with individuals from different groups (that is, it develops intergroup relations with employees outside their area of direct responsibility). Example: ‘A team leader develops inte other groups in the personal relation with other team leaders of organisation. Interpersonal roles of a manager, eventually cause the managers to collect and disperse information which thereby gives rise to their informational roles. Informational roles are a combinatign of three sub roles which are as follows, * Monitor Disseminator and # Spokesperson. L. Monitor: - ‘A manager who is acting as a monitor collects information about the organisation and its environment from all the available sources of information. II. Disseminator: A manager who acts as a disseminator transmits the information to others in the organisation. It al mainly involves the transfer of two kinds of information i.e.pinformation and value information. 9 SHUGUFTA NISHAT, ASST. PROFESSOR, BRECW.ation: ; . ~— giving the due date for delivery of orders. It deals with placement of ‘orders and Value Information oie) helps in making aware and responding to the customer's actual needs (good Ips i ing ig st (g III. Spokesperson: ut the organisational policies and ‘A manager as a spokesperson, s and groups outside the organisation. transmits information abo plans, to individual C:Decisional Roles isati ich involves serving as an Decisional roles relate to the managers organisational role which involve ig i sation. entrepreneur, disturbance handler, resources allocator and negotiator for the organi I. Functions of a Manager as an Entrepreneur: ‘The manager as an entrepreneur discovers the threats andspportunities to the organisation and initiates changes for utilising these opportunities and overcoming the threats. I. Manager as Disturbance Handler: In this role, the manager reacts to the crisis in the organisation and tries to resolve them. The various crisis like conflicts between employees or miscommunication between different organisations are handled by a manger under the role of disturbance handler. UL. Manager Acting as Resource Allocators: ‘The managers who act as a resource allocator, schedule their time, allot work to subordinates and control the decisions of optimum utility of available resources of money, supplies and equipment. IV. Manager as Negotiator: 7 Asa es the manager tries to attain beneficial solutions in non-routine situations such 4s, tax breaking from a state government in exchange for building a new plant in that state, The new forms of organisations have brought new approaches to managing. The new emerging roles of a manager are mentor, coach, facilitator, enabler, teacher, and cheerleader. 10 SHUGUFTA NISHAT, ASST. PROFESSOR, BRECW,Ff, 08t business organisations, three broad levels of management can be identified. These are oft often ed as the management pyramid, jop Management Jechiel uv Zeeeistve \——-— poudteneniaak \Micietle. Manage ~Heade 3 The Top-Level Management: ‘The top-level management constitutes the chie! board of directors, managers. f executive, Owners, solely ‘The time horizon for this level of management is often 5- 10 years. the top management is onsible to the shareholders and welfare of emplo} mission, goals, and major policy decisions are taken. decision makin; respi vyees. lbthis level the vision, cooperative strategies, ore.of conceptual, innovative, g and human skills as compared to It requires m¢ technical skills. Functions: : «Determining the objectives or goals of the enterprise. Framing policies and making plans. jework, «Setting up an organizational fram «Assembling the resources of men, matéral, money, machines, and methods. «Exercising effective control. « Providing overall leadership. The Middle Level Management: «policies made by the top management. It includes Its responsible for carrying out the decisions an functional managers such as marketing managers, production manag ses direct and control for the activities within their respec departmental managers, er and others. Here, the managers plan organi tive departments only. The time horizon for this level of management is commonly one year. Functions: «Interpreting the policies framed by top management. «Preparing the organizational setup in their respective departments. SHUGUFTA NISHAT, un ASST. PROFESSOR, BRECW.execution of plans. duties and responsibilities for timely ¢ + Assigning «Motivating personal to achieve higher prod tivity. Motivating personal hieve higher pI iv . le mation formance. Collecting information and reports on perfor ol * Reporting to top management, The Low-Level Management: / sens : also known as operational level, which includes four men, supervig.N : tit is als \s operational level, which inch i Low level management nen “ody tae managers at the operational level who supervise they workers in their day-to-day ; k, as ‘” of thet do motivate employees this they make target scan schedule an allocate ask to meet daily targets and ploy is ime horizon on may va to do the job in better manner and ensure that the work is completed. The tim ry according between a week and a month. Functions: * To plan day to day work within the goals prescribed by the higher management. ‘* To issue orders and instructions for executing the work, * Providing on the job training to workers. To advise and guide workers about the work procedures and solving the problems. To maintain proper discipline in the section and good relation among workers. x MANAGERIAL SKILL: Management is a very dynamic field, and a manager must possess various skills to ciently. Taylor defined m: Youwant to do in the best and the cheapest way". Thus, organizations should have managers who not only have ‘echnigal skills, but also human, conceptual, and decision-making skills. manage the organization effectively and effi fanagement as "The art of knowing what in the present competitive environment, the The researchers Koontz and Weinrich Proposed the following four man: agerial skills, 1. Technical Skills: ludes the knowledge to prescribe medicines and Perform surgery, an engineer's technic Al skill includes the knowledge to draw the blueprint of any building and so on, 2 * _SHUGUFTA NISHAT, ASST. PROFESSOR, BRECW,_nerally, in a manufacturi Gen ring industry, the lower-level 1 ‘anager must have greater knowledge about the technical aspects of job When compared to th © the top management, , Human Skills: In present competitive environment, the organizati i i "a ons Possessing good human skills is quite essential, the human skills refer to the ability to work effectively with tan : Y With a Broup of people as a part of a team and to mairrcordial working relations with other members of an organizati ation, This is the most important skill that should be possessed by the managers at all the three levels of management (i...) lower, middle, and top level. . Conceptual Skills Conceptual skills refer to the ability of the manage to supervise the organization as a whole and understand how various internal and external factors are related to one another. These » skills also help the manager to be aware of his/her contribution to the organization at a macro level. Conceptual skills are the mostimportant skills which must be possessed by the top and middle level management These skills help them to get a macro view of the whole organization and frame policies and procedures that benefit the whole organization. - |. Design Skills: Design skills refers to the ability of the manager to solve any/every organizational problem (both single and complex): Th@ top and middle level management must possess these skills for solving the problems. 5: CHALLENGES TO MANAGEMENT OR MANAGERS: Managers may have to face many’ challenges in the years to come in doing their jobs. These challenges involve complex issues to deal with. the following is an inclusive list of the challenges The managers must face. « Increasing opportunities because of all round globalization privatization and liberalization. © Achieving a stretched goal. © Changing lifestyles and changing values + Bringing out the best in employees. © Increasing life expectancy. * Satisfying the expectations of customers and employees. 7 2B SHUGUFTA NISHAT, ASST. PROFESSOR, BRECW-«Hiring the right people. © Depleting financial and non-financial resources. © Changing technology. © Motivating staff. * Bottleneck in the basic infrastructure. * Capital Management. * Environmental degradation, through pollution 6. AN INTRODUCTION TO EVOLUTION OF MANAGEMENT: Understanding the evolution of management thought is important as it helps determine what ‘management principles and practices work best for your team and your organization. It can help you manage your team and workplace more effectively. So, what is the meaning of evolution of ‘management thought? To understand this, we need to go back in time. Stages In the Evolution of Management Thought: . The development of management thought could be traced to over 2000 years BC. However, the Significant contributions that came up during the last three centuries could be grouped under the sollowing four periods: + Period of management awakening - * Scientific management period * The human relations period (this is also called the behavioural sciences period) * Modern management period 1, Period of Management Awakening: ‘This was the period of the Industrial Revolution, which paved the way for large growih and diversification of business enterprises. Some of the chief features ofthe industrial revolution were: (@ Automation (muscle power is transferred to machines) (b) New inventions increased demand (©) The number of commercial establishments expanded During this period, certain pioneers challenged the traditional approaches to management with their new ideas and approaches. Significant of these contributions are listed herein: SHUGUFTA NISHAT, ‘ASST. PROFESSOR, BRECW.robert Owen: Robert Owen was the first person who spelled out the mostly neglected critical issues relatin to personnel management. He believed that workers’ performance was influenced by seven factors such as the shopfloor working conditions, working hours, housing facilities, training of workers, provision of canteen, rest places, kind treatment, and so on. Charles Babbage: Babbage advocated the use of science and mathematics for investigations and accurate data to run the factories which were at that time using traditional methods, opinions, and rules of thumb for decision-making. Charles Babbage is more remembered because red because he invented the analytical engine, which was the early version of the modern computer he suggested the division of work into mental and physical efforts, determining the precise cost for every process, payment of bonus, profit sharing, and so on. + James Watt JR and Robinson Boulton: Both were the sons of JamesWatt, who invented steam engine. They used, forthe first time, several management techniques such as forecasting, market research, planned machine layout, production planning, standardisation of parts, welfare of workers, elaborate statistical records, and others in their factory at Soho. These techniques are considered as vital even in today's context. \O) ?. Scientific Management Period: A: FAYOL PRINCIPLES OF MANAGEMENT: Henry Fayol 1841 — 1925 was a French industrialist who was considered as the founder of classical management school. Henry defined management as a social process of all functions and believed that to command, to coordinate and control”. He was a popular “to manage is to forecast and plan, to organise, management guru like F.W Taylor. Fayol identified 14 principles of management: 1. Division of work: Here, the work is divided among the members of the group based on the employee's skills and talents’ It also provides an opportunity to specialise in different problem areas. 1s SHUGUFTA NISHAT, ASST. PROFESSOR, BRECW.also be adequately suppor | ity: mu L ae the right or power t© give orders It responsibility. 3. Discipline: ect each other by observing the rules. Both the employer and employees should resp i mmand: : 7 eee should receive instructions from only one superior. ity of direction: oo 7 we he objectives are similar, the action plans also should be similar. In a similar activities should be grouped together, placed under one manager and there shoul one action plan, 6. Subordination of individual interest to group interest: Group interests or goals of organisation must prevail any time over the individual interests or personal goals. 7. Remuneration: The wages and salaries must be fair and bring out the best possible commitment in the employees to achieve the organisational goals. 8. Centralisation of authority: Authority is said to be centralised when decision-making powers are retairied at the top level. The degree of centralisation or decentralisation is determinéd by the needs 9. Scalar chain: It indicates how the authority flows from top to bottom. 10.Order: It means keeping the right man or a right thing in the right place. 1LEqui ° This implies that the dealings with the employees should be so fair and 50 open that they will reinforce their commitment to the organisation. Be kind and fair to them. 12.Stability of tenure of Personnel: This indicates avoiding frequent transfers of the employees much bifure they settle in their jobs. 16 SHUGUFTA NISHAT, ASST. PROFESSOR, BRECW.witiative® the staff should be encouraged to show initiative, within the limits of authority and an discipline. 14.Esprit de corps: This means teamwork; implying that there is unity in strength. B. FREDERICK WINSLOW TAYLOR: The concept of scientific management was introduced by Frederick Winslow Taylor in USA in the beginning of 20" century. Frederick Winslow Taylor, often called as the father of scientific management and his contribution as the management “principles of scientific management”. h knowing exactly Frederick Winslow Taylor Definition: “Scientific management is concerned wit what you want to do and then see in that they do it in the best and the cheapest way”. rease the efficiency of people. based on experiments, ‘Taylor carried experiments about how to inc ok “scientific he published many papers and books, and all his contributions were compiled in his bo management”. His contributions are divided into two parts «Elements and tools of scientific management and «Principles of scientific management Features / Elements. and Tools of Scientific Management 1. Separation of planning & doing: ‘Taylor emphasized the separation ofplanning aspect from actual doing of the work. In other words, ould be left to the supervisor and the worker should concentrate only operational work. planning s 2. Functional foremanship: Taylor introduced the concept of functional foret the activities of workers. Out of these four :manship based on specialization of functions. In this system, eight persons are involved to direct erk, instruction card clerk, time, and cost clerk and disciplinarian. The remaining four persons are concerned with doing aspect of the job, viz., ¢ foreman, It is against to the principle of unity persons are concerned with planning viz., route cl speed boss, inspector, gang boss and maintenanc« of command. 7 SHUGUFTA NISHAT, ASST. PROFESSOR, BRECW. ~ _43, Job Analysis: 4, 7. best way of doing , ing the things. The vay of doi ae s time and cost. The best way ora ents, consequently les motion - fatigue studies. ovement takes to complete. hh are involved in doing a job It is useful to find out tt quires the least mover letermined by taking up time — e determination of time am’ £ movements in parts whicl which r thing can be d «Time study involves thi «Motion study involves the study 0 uired in completing the work. certain movements and rest thereby eliminating the wasteful movements. shows the amount and frequency of rest req Fatigue study in es the fair amount of a day’s work requiring ‘Thus, job analysis identifi periods to complete it. Standardization: As far as possible, standardization should be maintained in respect of inst of work, amount of work, working conditions, cost of production etc., These things shoul in advance based on job analysis and various elements of costs that in performing a work. uments and tools, period id be fixed Scientific selection and training of workers: Taylor has suggested that workers should be selected on scientific basis considering their education, work experience, aptitude, physical strength, etc., A worker should be given work for which he is physically and technically most suitable. Apart from selection, proper training should be provided to workers to make them more effective and efficient. Financial Incentives: . Financial incentives can motivate workers to put in their maximum efforts. If provisions exist to eam higher wages by putting in extra effort, workers will be motivated to earn more. Taylor himself applied the concept of differential piece rate system which was highly motivating, According to this scheme, a worker who completes the normal work gets wages at higher rate per Piece and one who does not complete gets at lower rate. Economy: While applying scientific management, not only scientific and technical aspects should be considered but adequate consideration should be given to economy and profit. The economy and profit can be achieved by making the resources more productive as well as by eliminating the wastages. 18 SHUGUFTA NISHAT, ASST. PROFESSOR, BRECW.al evolution: fic management deper nds 01 n the mutual co-operation between mana, igement and w orkers. foal es from conti flict to co-operation. ore i this CO eration, there should be mental change in both h parti PRINCIPLES OF SCIENTIFIC MASS PRINCIPLES OF SCIE! TIFIC MANAGEMEN’ principles of scientific management. taylor has given certain basic Replacing rule of thumb with sgience: various aspects of work like day's Fair work, standardization is the basic core of scient sed on mere estimates. According to Taylor, exactness 0} ment, etc... tific management, itis in work, differential piece rate for pa recisely and should not be ba essential that all these are measured P y in group action: pointed out that attempts s! armony in group action 2. Harmon, ind take situation and hould be made to obtain hi rather Taylor has that there should be mut d. Group harmony suggests ributes to the maximum. | than discor anding so that group conti proper underst: ceving cooperation rather than chaotic individualism Itis o-operation between management and range in thinking. 3, Co-operation: Scientific mana: 1 confidence, gement involves achi co-operatio mutual understanding n, and goodwill. C based on mutual workers can be developed through andacl ductivity instead of put: in production and pro inefficiency and 4, Maximum out gement involves ‘continuous increase by worker. Taylor heate Scientific mana duction either by management oF restricted pro tion. ately restricting output” ailment of product se crime .d than that of delibers deliberate curt to my min ‘there is no WOT highest g to the In his opinion, 5, Development of workers: should be fully prosperity: hould be of working which requirement of new methods cRITICISM OF CIENTIFIC MANAGEMENT ed by the employers: HE workers, and ¢ management Was heavily eriticis for their own and for the company’s developed possibl ers to keep the! provided to the wor may be different from non All workers mn fully fit accordin thods. ‘Training scientific me theory of scientifi fic approach as COS jpologists. The emp] umen The psy¢! Some of the other arg! process of seient oyers criticised the t were: entific manageme™ ts against sci ‘sHUGUFTA NISHAT, 7 |asst. PROFESSOR: BRECW-It ignores the functional areas of management such as marketing, finance, and so o, Individual creativity is ignored by favouring one best way + Worker is reduced to « cog in the machine. Over specialisation made the work more fragmented. It emphasised more on the Analysis organisation of individual task or operations making the worker more mechanical, * Mobility among workers gets restricted because of narrow specialisation. * Workers were not involved in the planning part of the jobavhich was controlled by the management. As a result, some of the jobs created continued to be repetitive and boring. * Workers were not involved in the planning part of the job, which was controlled by the management, as a result, some of the jobs Created continued to be repetitive and boring. ° Human desire for Job satisfaction is neglected by this theory. _ BENEFITS FROM SCIENTIFIC MANAGEMENT: * Scientific management proved to be very beneficial to the industry at large. * Scientific manager i i crease in i ‘Sement improved working methods and brought enormous increase ii production. plant design and other things, tasks and processes, 20 SHUGUFTA NISHAT, ASST. PROFESSOR, BRECW.3, THE HUMAN RELATIONS PERIOD (THIS IS ALSO CALLED TH E BEHAVIOURAL SCIENCES PERIOD) \iqURAL THEORY: | Le te ppehavioural scientists’ emphases on the people and their ability to determine possible way to hasized more on the need for human skills anage all the organisations. Behavioural theory ¢mP! o Sy instead of technical skills. «theories were evolved in Human Relations period. Behaviour’ AN RELATIONS. PERIOD: aracterized by the focu: .n dealing with business HUM. s on the human factor i Human oduction issues. Elton relations period is ch the father of human relations approach. There Mayo is recognized as proach like. Abraham Gregor, and Frederick and pr Maslow, Douglas Mc are other contributors € this api Hertzberg. ‘A: Elton Mayo Hawthorne experiments: George Elton Mayo: Flton Mayo conducted experiments in Hawthome plant of the wester™ electric company in Chicago | reaction of workers on job situations. ate the attitudes and physiological series of productivity. It ended as upervisors USA. To evalu: ‘The experiment started as the st social factor search as ™m: tudy into physical conditions and embership of workgroup, informal relationship with s studies in and so 0. none of the Hawthome experiments: Elton Mayo research team examined changes in the amount first. When the lights were increased, The result was confusing at decreased, the output rkers were highly motivated more for the of light available inthe work area. ex hand, when the Tight was Its showed that the wo ease in light did not affect their work. ironment. They vary ‘output rose; On the oth« t still rose. An analysis of this and other such puzzling rest importance given to them, Reduction oF ine ‘The research team also examined other effects 0 ods, hot lunch, working hours and that changes in the work environment 4 to the feeling that they were be f change in the working envi interviews to determine the working conditions such as rest per had little long-term attitudes, during this study it was found ivity when compare ing recognised in effect upon working producti the organization. Elton my concluded from his experiments that relationship: a major role in productivity tharrmere physical and Working condition. SHUGUFTA NISHAT, a ASST. PROFESSOR, BRECW- ¢ among employees and employer plays arhe sense of belongingness among emplo ees’ impact and influences the w, gness loy' in neil Which there is rise in our productivity. revealed that workers valued most the social relations a workplace, and these wey It d Kk d most the soc v YN S that worl tives and good physical working conditions. Informal or .N entives important as monetary ine i job. groups influenced the behaviour of workers on the j he group, the need of recognition and de towards work is strongly influenced by the group, # Senge \ Attitude towards belonging are very important. ial needs and cate To seek workers cooperation, the management should be aware of the soc! to i i l€ Organisat them. Otherwise, there is every danger that the workers ignorance can turn against the org: tion, Maslow’s hierarchy of needs This is also a motivation theory which is embarked upon the behavioural pettern of human beings. The behaviour of an individual at a particular moment is usually determined by his strongest need. Psychologist claims that needs have a certain priority, as the more basic needs are satisfied, an individual seeks to satisfy the higher needs. ifthe basic needs are not met efforts to satisfy the higher needs should be postponed. A.H Maslow, A famous social Scientist, has given a framework that helps to explain the strength of certain needs. According to him. There is hierarchy for need, | which is presented in the following way | igth which includes the Necessities of life like food, water, need is reasonably satisfied, then the individual looks for shelter, and clothing. If one level of another need which is his next Priority. 2.Security Needs: 2 SHUGUFTA NISHAT, ASST. PROFESSOR, BRECW.iy Hist 10 needs are satisfied, social needs like hierarchy becomes important. Since man i 1 1. Since is il being he craves to belong, and he wants to be affiliated to some social group. For attaining sa person strives for meaningful relations with others in society. esteem Needs f 1 esteem needs are concerned with self-respect, self-confidence, feeling of being unique and recognized which leads to prestige, power, and control. 5, Self-actualization Needs: ‘After all the four needs are attained and the person has the need to maximize his potential, so the individual works for his own satisfaction. Conclusion: Maslow suggest that the various levels are interdependent and overlapping, each higher-level need emerging before the lower-level need Has been completely satisfied. since one need does not disappear when another emerges, all needs tend to be partially satisfied in each arca. C.“Theory X and Theory Y” C.“Theory X and Theory *— Douglas MC Gregor MC Gregor In his book enterprise “the human side of enterprise “States that people inside the organization can be managed in two ways. ‘The first is basically negative, which falls under the category X and the other is basically positive, which falls under the category Y. ' ‘After viewing the way in which the manager dealt with employees, MC Gregor Concluded that a managers view ofthe nature of human beings i based on the certain grouping of assumptions and that he or she tends to mould his or her behaviour towards subordinates according to these assumptions. Under the assumptions of theory X: Employees are inherently lazy; they require constant guidance and support Employees inherently do not like work and whenever possible, will attempt 10 avoid it. Because employees dislike work, that must be forced, coerced, or threatened with punishment to achieve goals. Employees avoid responsibilities and do not work till formal directions are issued. B ‘SHUGUFTA NISHAT, - ASST. PROFESSOR, BRECW.+ Most workers placed a greater importance on security over a factors and dis, MK TS d ¢ f Most \ ambition, In contrast under the assumptions of theory ¥ ‘© Physical and mental effort at work is unnatural as rest or play. . ; ‘a 2 to those goals. People do exercise self-control and self-direction and if they are committed 2 : ili i i integrity, * Average human beings are willing to take responsibilities and exercise imagination, integrity, and creativity in solving the problems of the organization ing’ wer is only partly * That the way the things are organised, the average human being’s brainpo' ly pi used * Higher rewards make this employee more committed to organization given an opportunity, they not only accept responsibility but also look for opportunities to outperform others. D. Frederick Herzberg’s Motivation- hygiene theers: Frederick Herzberg’s Frederick has tried to modify Maslow’s need hierarchy theory. His theory is also known as two- factor theory or hygiene theory. He stated that there are certain satisfiers and déssatisfiers for employees at work.‘intrinsic factors are related to job satisfaction, while extrinsic factors are associated with dissatisfaction. He diverse his theory on the question “What do people want from their job?” Presence of some does not lead to motivation. However, there non- presents lead to the de motivation. similar manner there are certain factors, but their presents have motivational impact. Hygiene Factors: According to Hertzberg, the hygiene factors are the company policy and administration, interpersonal management relationshiy ip with supervisors, Peers and subordinates, technical Supervision, salary, job security, person al life, working conditions and stat: 4 SHUGUFTA NISHAT, ASST. PROFESSOR, BRECW.jivation.al Factors: ne motivational factors can have a positive effect on job satisfaction, The factors such as achievement, recognition, advancement, work itself, possibility of growth and all other factors are related to work. An increase in these factors will satisfy the employees, once the employees are satisfied then they can be encouraged and motivated to achieve higher outputs. koe deat sissiosion Sa, et pple a Bove toons Faouia 138 tors) thet ashe or —ordlore: rastivc.s. E. Vroom’s Valance X Expectane theo Victor Vroor The most widely accepted explanation of motivation has been propounded by victor vroom. His theory is commonly known as Expectaney theory. The theory argues thatthe strength of a tendency to act in a specific way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of the outcome to the individual to make this simple. Expectancy Theory says that an employee can be motivated to perform better when there is believed that the better performance will lead to the good performance appraisal and that this shall result into realisation of personal goal in a form of some reward, There for an example is © Efforts and-performance relationship © Performance and reward relationship © Reward and personal goal relationship This leads to a conclusion that | Valence X Expectancy 2 SHUGUFTA NISHAT, : ASST. PROFESSOR, BRECW.__Motivatfon Action eg i, Weneulies oat S 4: MODERN MANAGEMENT RERIOD: ‘The management studies of the last fifty years or so have tried to integrate the findings of scientific management, principles of management, and human relations movements. While all these groups made significant contribution to management thinking, they ignored each other's-contribution. This resulted, as Harold Koontz observed, in ‘management theory jungle’. The modem management petiod is characterised by dynamic business environment. The list of demands and expectations from all the segments of the society-producers, consumers, intermediaries, governments, and others has been growing ever globally. The state-of-the-art technology has revolutionised the range of goods and services available to the customers. The firms can compete with one another globally. The massive improvefhents in the Communication systems have literally made the entire world a global village. ‘saint this background, what arc the issues of concem that attract the attention of the management thinkers and the practitioners? The following statement lists down the key ‘nianagement“issues. ‘These are decisive factors which influence the role of the future managers. Thi concepts are outlined in brief, along with the respective major contributors to management theory. 26 SHUGUFTA NISHAT, ASST. PROFESSOR, BRECW.Major Contributors to Theory ihvough establishing vision Peters T and Waterman K ging Environment bes in ot external and internal environment for ME and Kotler. P he sesults, External environment includes customers, suppers. local commmuitities, other external shareholders, and so on Vavernal environment includes the employees, managers, and others Optimisation of the interaction of these variables and their contribution 1s the real challenge of modern management, (c) Developing Culture Developing pro-organisutional approach and shared values in the Minizberg. H organisation, (4) Empowering Employees Optimise employee contribution by enabling hinvher to do the job Peters, T effectively and efficiently. (e) Applying New Technology x Let the new technology be your competitive advantage. Strengthen Hammer, M and Champy, J yourself in terms of better products, systems, procedures, customer base, and so on. (f) Managing Change Change is one of the grey areas for managers. The transition from old to new is, many times, not smooth. The organisation should prepare its managers to manage change. (g) Finding Competitive Advantage Develop certain factors of competitive advantage such as customer satisfaction, latest technology, and so*forth, to justify higher prices. (h) Creating Excellence : Develop standards of excellence throughout the organisation and strive “continuously to achieve them. Peters, T and Moss Kanter Porter, M Peters, T and Watemuan, R Seana cee a SHUGUFTA NISHAT, ASST. PROFESSOR, BRECW.7. SYSTEM APPROACH TO MANAGEME! One of the modem approaches to understand management is system approach, N ne stem. organization is viewed as a system and every department as a subsyst The system approach helps to study the basic features and functions of orgafization. A system collection of interrelated parts called a subsystem which constitute one whole unit. System Approach facilitates the study of each of these parts in detail to understand the whole system, From systems point of view the functions of management are * Interlinked os © Interdependent * Complex and Intertwined INTERLINKED 5 Shamacgerment Needs The board diagram to show the functions of management are linked to each other, these functions ‘ogether constitute the management process ag Cycle. INTERDEPENDENT . . INTERDEPENDENT - —— The above figure shows the interdependence among the functions of management. Though, in the chart, it is shown that planning is the first function and control is the last function there is no such 28 SHUGUF1.\.NISHAT, ASST. PROFESSOR, BRECW.acting and ending function. The first task is the identification of managerial Problem and the la one is reaching the solution for a given problem. The dotted line represents feedback tine. tn the process of control, if there is any deviation from the plans or targets, it can be corrected by verifying cach of the earlier functions and identifying where things could have gone wrong , MPLEX AND INTERTWINED In the above diagram the letters P (planning), O (organising), S (staffing), D (directing), and C (controlling) rep resent the functions of the manager. It shows that in the planning function (shown horizontally across or vertically down), there are other functions of management such as organising, staffing, directing, and control ling. The letter X shows the overlapping area, and hence, it is to be ignored. It Shows that each of the management functions can be found in the other functions also. 8. QUANTITATIVE APPROACH Morale and productivity though are closely related, there are other factors as well that impact productivity. Quantitative approach explores the linkage between man and machine with a focus on fine-tuning the principles of management, The ownership and management are separated. The hired management professionals are given more control, and this has resulted in the wider use of scientific methods of management. Quantitative approach is also called mathematical approach or management science approach. This involves use of mathematical or quantitative approach for decision making more often called Operations Research. This considers management as a system of mathematical models and processes and involves interdisciplinary approach, Here, managerial decisions are based more on the scientific techniques 29 SHUGUFTA NISHAT, ASST. PROFESSOR, BRECW,jew system of logic, for providing quantitative base. Here management is viewed as a sy: Bical Techniques such as linear programming, simulation, queuing, project crashing, ete. extens, mathematical symbols, relationships, and models in analysing the management problems y vost minimisation, profit maximisation, resource optimization, etc. This approach has one serious limitation, Not all management problems can be expressed in terms of mathematical models and these models cannot be considered to provide judicious decisions. As Harold Koontz observed, mathematics is just a tool, and it cannot be viewed as school or a separate approach to management theory, 9. IT APPROACH TO. MANAGEMENT The current trend is that ever Aclivering quality serv; effectively and efficiently. for instance manufacturing, an integral part of our lives. Virtually there is n Every organisation, irrespective of its size, ‘oday caumarks certain budget w embrace the new Ir at they can delight their customers with Quality service. IT app ‘management has directly triggered cost reduct increasing Service efficiency. Social media, mobile technologies, analytics, and cloud technologies (SMAC) are the leading technologies in IT space besides learning, robotics, etc. roach to ion and profit maximisation besides i artificial intelligence, big data analytics, machine IT approach to management has contributed to Improvement in quality of life, shortening of transaction time, large number of ‘Jobs in both software and hardware, IT approach is also known 30 SHUGUFTA NISHAT, ASST. PROFESSOR, BRECW.a i veryoné put itis observed that new jobs and software are created. This means that everyo jarning about new IT technologies on a continuing basis. a stablishments, etc., facilitate the customer to gsevioe Kiosks in. restaurants, airports, retail e volutionised the erstwhile omplete the transactions faster. Companies like Uber and Ola re stomers, channel partners (Auto/cab drivers ‘itioning System overcrowded transport market through integration of cus are called channel partners) and other regulatory agencies through Global Posi (GRS), one of the super formats of IT approach to Management. The IT approach to management delivers a unique experience to every stakeholder including customer, employee, team leaders , management, owners, public and regulatory agencies. 10.CONTINGENCY OR SITUATIONAL APPROACH Organisations behave as situation demands. In other words, decision making is contingent on situations. As situation changes, the solutions also differ. This is the latest approach to problem solving, Case study approach which is widely followed in todays premier business schools across the world has emanated from this thinking. Management problems vary with situation and require to be handled differently as situation demands. Where the problems are of repetitive nature, this approach proves very useful, ‘However, all problems are not likely of the same nature and hence this approach also has limitations. ‘The functioning of organisations is not a matter of the manager's choice. It is contingent on external 6r internal environment or both, Under this approach, managers identify the variables that critically influence managerial behaviour and organisational performance in general, and address the problems associated with these variables, This way, it isan improvement over the systems approach. in