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1 2 3 4 5 Introduction Definition Concept of Management Management Art Or Science Management Function


The world has changed, is changing, and continues to change. The dynamic nature of today’s organizations means both rewards and challenges for those individual who will be managing the organizations in the changing environment. Management is the organizational process that aids in creating a service or product from the raw materials at hand Management is universal in the modern industrial world and there is no substitute for good management.


It makes human efforts more productive and brings better technology, products and services to our society. It is a crucial economic resource and a life-giving element in business. Without proper management, the resources of production (men, machines and materials) cannot be converted into production. Thus management is a vital function concerned with all aspects of the working of an organization


production remains resources and never becomes production. Principles of management are now used not only in business organisations but also in educational, social, military and Government. In a competitive environment the quality and performance of Management determines the success of an organisation.

Peter Drucker –Without management ,a country’s resources of

Nowadays no organisation can hold its monopoly on capital or technology. But good management can definitely become its and give it a competitive edge over its rivals.



Management is a must to accomplish desired goals through group action.

It is essential to convert the disorganized resources of men, machines, materials, and methods into a useful and effective enterprise. Thus management is the function of getting things done through people and directing the efforts of individuals towards a common objective


Management is an art or technique of getting things done. Management is a process of planning, organizing, staffing, directing and controlling. Management is a distinct activity of any organization. Management is a discipline, which represents a body of knowledge. Management denotes a group of people.

Definition Mary Parker Follet Management is the art of getting things done through people. George Terry Management is the process consisting of planning, organizing, actuating and controlling, performed to determine the accomplished objectives by the use of people & resources.
Planning Organizing Actuating Controlling deciding the future activities based on some method Co-ordinates the human & material resource Motivates & direct Subordinate Ensure that there is no deviation from the Plan


Management is the process of designing and maintaining an environment in which individual working together in groups efficiently accomplish the selected arm. The following points explain this definition. 1. Management functions: As Manager, person carry out the managerial function of planning, organizing, staffing, leading and controlling 2. Role of Mgmt: Manager are charged with the responsibility taking actions that will make it possible for individuals to make their best contribution to the group objective. Mgmt thus applies to small and large organization, to profit and non-profit organization to manufacturing as well as service industry.

The term management is used in three alternative ways. Management as a discipline: Since management prescribes various principles and how these principles can be applied in managing an organization; it has orientation of both science and art. Management as a group of people: We refer to management as a group of people in which we include all those people who are responsible for the managerial functions Management as a process: As a process it includes various activities and sub-activities.


Mary Parker Follet - Management is the art of getting things done through people.
It states management deals with the application of knowledge; but it also includes acquisition of knowledge. Scientific Study: If the methods of enquiry are systematic and empirical Information can be ordered and analyzed. Results are cumulative and communicable. Management is more of behavioral science and not as natural or exact science.

MANAGEMENT-Profession Existence of Knowledge Development due to the need for managing complex and large organization. Acquisition Of Knowledge A professional is one who acquires knowledge through formal training and is an expert in the field. Mangt thus cannot be regarded as profession because entry to managerial cadre is not restriction to only management graduate Professional Association All India Management Association with local chapters. Ethical Codes Management cadre have power due to their expertise in their field which should not be misused at the cost of the society, the focus should be on all stakeholders Service Motives Social Interest should be taken in consideration while charging fees




Planning Controlling Organising




Professor Haimann describes these functions to be of circular continuous

Evolution of Management

Management Thought Early Contributors Scientific Management Administration Human Relative approach Social system Approach Decision theory Management Science app. Human behavior approach System approach Contingency approach

Period Up to 19th century 1900-1930 1916-1940 1930-1950 1940-1950 1945-1965 1950-1960 1950-1970 1960 onward 1970 onward

Early contributors Organizations Have Existed for Thousands of Years testifies to the of early management practice existence ability to create the Pyramids, Great Wall of China Significant Pre-Twentieth-Century Events

Wealth of Nations - Adam Smith
•division of labor - breakdown of jobs into narrow and repetitive tasks increased productivity

Industrial Revolution

substitution of machine power for human power large organizations required formal management

Scientific Management Introduced by Frederick Winslow Taylor in the USA. Scientific management was concerned essentially with improving the efficiency at the shop floor level. operational

Defined as Scientific management is concerned with knowing exactly what you want the men to do and then see in that they do it in the best and cheapest way emphasis on solving management problems in a scientific way and hence is called as the father of scientific management. carried out experiments in Midvale Steel Company and Bethlehem Steel Company about how to increase the efficiency of people. His contributions are complied in his book Scientific Management. And can be described in two parts Elements and tools of Scientific Management Principles of scientific Mangement

Scientific Management Elements and Tools of Scientific Management Early workers planned how to perform the job & what tools to be used, while the superiors only check whether the workers were performing. FW emphasized on Separation of planning from actual doing Planning should be done by the supervisor and the worker should emphasis on operational work Supervision system was required to handle planning & Supervise the worker

Separation of Planning & Doing

Functional Foremanship

Concept of foremanship was developed . In this system , 8 persons were involved to direct the Workers Against the unity of command

Scientific Management Workshop Manager

Planning Incharge

Production Incharge

Route Clerk

Instruction Card Clerk

Time & Cost Clerk


Speed Boss


Maintenance Foreman

Gang Boss

Scientific Management Elements and Tools of Scientific Management To find the best of doing a job. Determined by Time-Motion-Fatigue Study.

Job Analysis

Time Study:

determine the movement time. to decide fair work of a period Motion Study: elimination of wastage in movement. reduce performance time & fatigue Fatigue Study: determine the amount & frequency of rest required in job completion. Maintenance of standards in respect of Instruments and tools Period & Amount of work Working Condition Cost of Production Done on the basis of Job Analysis


Scientific Management Elements and Tools of Scientific Management Allocation of job based on the Education Work Experience Skills Emphasis on training to improve performance Motivation to improve performance

Scientific Selection &Training

Financial Incentives

Introduced the Piece Rate System Higher wages on completion of assigned job Lower wages on non completion Determination of wages on Individual performance not position knowledge and not estimation

Scientific Management Elements and Tools of Scientific Management Emphasis on economy & profit.


Advocated the use of Cost Estimates & Cost Control Achievement by Effective utilization of resources Reducing wastages

Mental Revolution

Scientific mangt . depends on MUTUAL CO-OPERATION between magnt & workers. Advocates mental change from conflict to co=operation In its absence principles of Scientific Mgnt. cannot be applied

Scientific Management Principles of Scientific Management Rule of thumb emphasis on ESTIMATES

Replacing Rule Of Thumb With Science

Taylor emphasis application of organized knowledge Days fair work standardization differential piece rate Should be measured & not estimated

Attempts to obtain harmony

Harmony in Group

group harmony can be achieved by maintaining give & take situation.

Scientific Management Principles of Scientific Management SM is based on mutual Confidence, co-operation.


Suggested Substitution of war with peace replacement of suspicious confidence



Maximum Output

Continuous improvement in performance and increase in production

Scientific Management Principles of Scientific Management

Development Of Workers

Through scientific selection and providing them training Training should be given to keep them fit for next job

Administration : 1916-1940 The management thought given by HENRY FAYOL and hence called as the FATHER OF ADMINISTRATION MANAGEMENT. Focus of the theory was on development of broad administration principles applicable to general & higher managerial levels. Perspective unlike Talyor beyond shop floor and physical production processes covering general administration, managerial function and organization process Divided activities of business enterprise into • • • • • • Technical Commercial Financial Accounting Security Administration

Administration : 1916-1940 His emphasis was on administration/ managerial activity and Defined management in terms of Planning, Organizing, Commanding, Coordinating and Controlling Emphasized on

All Organization Levels Bottom Top

Administrative Management

All types Organization Profit Not- for- Profit

Administration : 1916-1940

14 Principles Of Management

Division Of Work

Principle of Specialization, increases efficiency & output Authority to give orders & Obedience Responsibility to do & get the work done good supervision at all levels fair agreement between employee & employer Rules & Regulations Instruction from one superior only Avoids conflicts of instructions Responsibility

Authority & Responsibility


Unity Of Command

Administration : 1916-1940

14 Principles Of Management

Unity of Direction

Alignment of individual Goals to Organization Goals

Subordination of individual Interest to General interest

Focus on maximizing Production over personal interest of money, recognition, status Fair Based on business condition, cost of living, Acts as a motivator decision making role reserved to few



Administration : 1916-1940

14 Principles Of Management

Scalar Chain

hierarchy of authority from the highest to the lowest for the purpose of communication States the superior subordinate relation Principle of right place for everything & for every person. can be achieved through scientific selection of competent person & job assignment Security of job encourage long term association Freedom to think & execute a plan motivates to innovate encourages long term association


Stability of tenure


Administration : 1916-1940

14 Principles Of Management


Fair Treatment, combination of kindness & Justice ensure healthy industrial relation

Esprit de corps

Means team spirit encourage personnel to work in team. required to realize objectives Avoid Divide & Rule Use of Verbal Communication to remove misunderstanding

Hawthorne Experiments and Human Relations The essence of human relation approach is contained into 2 pts organization situation should be view as a social terms as well as economic and technical term. Social behaviors of group can be understood using a clinical method Study to analysis of human factor in organization was made in the form of Hawthorne experiments under Elton Mayo Experiments were carried in 4 phases to determine the effect of changes in illumination on productivity. to determine the effect of changes in hours and working conditions on productivity. to determine the workers attitude and sentiments analysis of social organisation

Hawthorne Experiments and Human Relations

Illumination Experiments
to determine the effect of changes in illumination on productivity The hypothesis was that with higher level of illumination, productivity increases 2 group Experiment group: exposed to varying intensities control group: constant intensities. productivity increased in both the groups productivity dropped only when illumination was drooped to monlight conclusion: illumination was not the main factor, human factor was important

Hawthorne Experiments and Human Relations

Relay Assembly Test Room Experiments
to determine the effect of changes in job conditions on productivity set up a relay assembly test room and choose 2 girls girls were asked to choose 4 co workers Time span 4 to 12 weeks

2 group opportunity to express their viewpoint allowed to take decision on matters concerning. incentive was linked to small group of 5 than 100. productivity increased 2 five minutes rest period in the morning and evening session was increased to 10 minutes productivity increased rest period reduced but frequency increased : productivity decreased coffee and sandwich was served in the morning & Snacks in the evening productivity


change in work hours: left early in the evening by ½ an hour elimination of Saturday work productivity increased

Hawthorne Experiments and Human Relations

Mass interviewing programme
to determine the employees attitude towards company, supervision, insurance plans, promotion and wages method of direct interviewing replaced by non directive interviewing Findings

Complaint was not an objective recital of facts but personal disturbance Objects, persons, events are carrier of social meanings, and become related to employee satisfaction and dissatisfaction based on the personal situations personal situations is a configuration of personal preference involving sentiments, desires and interest social organization represents a system of values, from which workers derive satisfaction or dissatisfaction social demands are influenced by social experience in groups inside and outside the work plant

Hawthorne Experiments and Human Relations

Bank wiring observation room
to determine & analysis of social organization at work

Hypothesis: in order to earn more workers would produce more and in order to take the advantage of group bonus help co worker to produce more Findings fear of unemployment fear of raising the standard protection of weaker workers satisfaction on the part of management

Hawthorne Experiments and Human Relations

Implications of Hawthorne Experiments
Human relations involves motivating people in organization in order to develop Team worker which are important for motivating people at workplace major findings Social Factors in output Group Influence Conflicts Leadership Supervision Communications

Thank You

Rajeshwari Patil IBMR – Pune

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