Concept of Management, Administration, Organization – Functions of Management – Evolution of management thought – Organization – Principles of organization – Types organization charts

- Managerial objectives and social responsibilities.

Objectives
By the end of this chapter, you should be able to: • Understand what is management? • Organizational structure • Functions of management • Evolution of management taught

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Management
The process of designing and maintaining an environment in which individuals (groups) efficiently to accomplish selected aims. The process of dealing with or controlling things or people The act or skill of controlling and making decisions about a business, department, sports team, etc. The organization and coordination of the activities of a business in order to achieve defined objectives. Management is the transformation of resources into utility
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Resources

Goal

Victory

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6 Power Plant Electricity

Resources
• • • • • • • Men / Women Material Money Machines Method Time Energy

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Goals
• • • • • • Profits - Protect revenue Financial growth - Manage cost Increased productivity - products Increased efficiency Increase brand value Provide more value to your customers or employees

• Note: Goals are different for different organizations it depends on definition of goals as cited
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• Create a surplus

Software organization - Resources

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Goals

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Administration vs. Management
Administration: It is concerned about the determination of objectives and major policies of an organization. Management: It puts into action the policies and plans laid down by the administration. Administration: It takes major decisions of an enterprise as a whole. Management: It takes decisions within the framework set by the administration. Administration: It consists of owners who invest capital in and receive profits from an enterprise. Management: It is a group of managerial personnel who use their specialized knowledge to fulfill the objectives of an enterprise.

Organization: Combines the work in such a way with individuals/groups that duties formed provide best possible application of available effort

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Administration vs. Management
• Administrators are the persons who SET rules • Managers are the persons who FOLLOW rules

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Thomas Edison

Jeffrey R. Immelt

Banmali Agrawala

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General Electric

Functions of management

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Functions of management
• Planning: generating plans of action for immediate, short term, medium term and long term periods. • Organizing: organizing the resources, particularly human resources, in the best possible manner. • Staffing: positioning right people right jobs at right time. • Directing (includes leading, motivating, communicating and coordinating): Communicate and coordinate with people to lead and enthuse them to work effectively together to achieve the plans of the organization. • Controlling (includes review and monitoring): evaluating the progress against the plans and making corrections either in plans or in execution.

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Planning

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Organizing

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Staffing

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Directing

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Controlling

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Evolution of management
Frederick W. Taylor Hugo Munsterberg Henri Fayol • 1916 • Modern operational management

• 1903 • Scientific
Management

• 1912 • Psychology to industry and management

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Evolution of management
Elton Mayo Chester Bernard Max Weber Peter Drucker 1974, Edwards Deming, William Ouchi 1981
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• 1933 • Hawthor ne studies

• 1938 • Systems theory

• 1946 • Theory of bureauc racy

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