Management

Kanwaljit Singh

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Unit 1: Management
 Introduction
 Meaning-Nature and characteristics of Management
 Management as a science and art
 Roles of Management
 Development of Management thought
 Early Management approaches
 Modern Management approaches.

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Why Management?

3
What is
Management?

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What is Management?

https://www.youtube.com/watch
?v=AS_THnmaQ7I

5
 Few Definitions of
Managemen
t
Management in all business and organizational activities
is the act of getting people together to accomplish desired
goals and objectives using available resources efficiently
and effectively.

“Management is the art of getting things done

through others.” - Mary Parker Follet.

“Management is knowing exactly what you want to

do and then seeing that they do it the best and
cheapest ways.” - F W Taylor.
“Manage is to forecast and to plan, organize, to
command, to co-ordinate and to control.” - Henry Fayol.

“Management is defined as the creation and maintenance

of internal environment in an enterprise where individuals,
working together in groups, can perform efficiently and
effectively towards the attainment of group goals.”
- Koontz and O’Donnel.

“Management is a multipurpose organ that manages a

business, manages a manager and manages workers and
work.” – John F. Mee.
 Nature and Characteristics of
Management
 Management is Universal Process
 Applied in all types of institutions – social, religious,
political, military, commercial, bureaucratic etc.
 Every organization whose aim is to achieve its goals
through group efforts, needs planning, coordination,
direction and control – Management

 Management is a goal oriented

 Management is directed towards achieving effectiveness and
efficiency. { Effectiveness is nothing but the actual
achievement of specific organizational goals while
Efficiency is the attainment of those goals with an optimal
use of resources.}
 Management is a social process
 Management basically deals with managing human beings
and their emotions, talents, attitudes, culture, ethos,
education etc.
 Management includes retaining, developing and motivating
people at work, as well as taking care of their satisfaction as
social beings.

 Management is a coordinating force

 Orderly arrangement of activities to avoid duplication and
overlapping.
 Integrates human and physical resources.
 Management is intangible
 Management cannot be touched and felt.
 It does not have physical presence (It is an unseen force).

 Management is multi-disciplinary
 Management has received rich contribution
from various disciplines like psychology, sociology,
anthropology etc.
 Management is about creating synergy (Synergy means “the
whole is greater than the sum of its parts”).

 Management is dynamic
 Management is an on going process, it continues to operate
as long as there is organized action for the achievement of
group goals.
 Management is a creative activity
 Management provides creative ideas and new imagination

 Management is decision making

 Management of an organization takes
continuously decisions which decides the fate of
the organization.
 Management is a profession
 Individuals can be trained and turned to become a
management professional.
 Functions of
 Forecasting
Management
 Forecasting in the estimation of future
sales in order to effectively plan production
activities.
 Planning
 Planning of all activities to achieve production & sales as
per targets.
 Planning is necessary to avoid difficulties that may arise in
future.
 Organizing
 Organizing in arranging money, material,
machinery, men and selecting optimal methods of
actual execution of work.
 Staffing
 Staffing involves recruitment, selection,
training and development of personnel required to
run the organization.
 Directing and Motivating
 Directingand motivating the recruited
employees so that they perform their duties
effectively.
 Controlling
 Controlling the work of employees to ensure everything is
proceeding as per plan.
 Co-ordinating
 Co-ordinating the efforts of all employees in all departments
to move towards common goals.
 Communication
 Communication system should be efficient so
as to avoid confusion & misunderstanding.
 Leadership
 Leadership qualities required in managers and supervision.
 Decision Making
 Decision making to be professional and result oriented.
 Management as a Science, Art
and Profession
Management as a Science:
 Establishment of management principles scientifically.
 Management is Social Science – As it deals with humans.
 Management provides guidelines rather than absolute
principles as in physics, chemistry and biology.
 Scientific inquiry and observation
 Experimentation
Management as a Art:
 Use of Knowledge
 Creativity
 Personal touch
 Constant Practice
Management as a Profession:
Management is also considered as a
profession – one can study, acquire skills and
qualify to become manager.
Like any profession, management has a
systematic body of
principles, techniques, and skills.
Science Art
Difference
1. Defines betweenDescribes
Science and Art
2. Proves Feels
3. Predicts Guesses
4. Objective Subjective
5. Measures Opines
6. Impresses Expresses
7. Advances by knowledge Advances by practice
Management : Why not pure Science
Science deals with consistent principles and laws. Such
consistency is not attained fully in case of Management.

 In Science concepts have to be defined clearly. Even the term

Management is still debatable in terms of its nature.

 In Science factors can be considered as constant but in

Management researchers are biased.

 Scientific statements are testable but that is not true for

management.
Management : Why not pure Science

https://www.youtube.com/watch?v=WeqAivattEU&t=1285s
 Characteristics of Profession Vs
Management
 Well-defined body of knowledge
 Profession have a systematic body of principles, techniques
and skill.
 Management also has a systematic body of principles,
techniques and skill.
 Formal Education and Training
 Individual can enter a profession only after acquiring
specific knowledge and skill through formal education and
training.
 To enter into management also, an individual has to acquire
appropriate knowledge and training.
 Representative Body
 Profession have bodies and strict code of
regulatory conduct.
 Managers don’t have a universal code of conduct and they
also don’t have common regulatory body to ensure standard
practices.
Service Motto
 A professional has to have service as his motto and must
safeguard the society from any risks.
 Managers may not have such motto.

Management conforms to most of the

characteristics of a profession, and hence can be
called as profession.
 Management and Administration
Three Views:
 First View :Administration is broader than
Management

 Administration is Policy Making function

 Management is Policy realization function

 Administration is Largely determinative while Management is essentially
executive
• - Sp
 Difference Between
Administration and
Management
Administration
1. Determining Objectives
2. Framing policies and principles Executes the policies and programs
3. Framework under which one
has to work
4. Direction, guidance and
leadership and brings in resources
5. Comes first and Provides
guidelines to the management and
organization
Management
Planning the work to meet the
objectives given by administration
Supervises and control execution of
work
Coordinates all the resources and
activities
Comes Second and derives strength
and freedom from administration to
plan and execute work
 Second View :Management is broader tha
Administration
 Management is wider concept than administration

- Henry Fayol, EFL Brech.

 Management is the rule making, rule enforcing, all
encompassing body while administration implements and
carries out the policies of the management
 Third View :Administration and Managemen
are identical
 Hardly any distinction between the two terms, both
administration and management do the same functions such as
planning, organizing, commanding, coordination and
controlling

- Haralod Koonz, Ernest Dale, William Newman

 Role of
Management
 Interpersonal Roles
 Figure Head - Representing an organization
 Leader - Encouraging and Motivating Employees
 Liaison - Connecting outside world, develops external links
 Informational Roles
 Monitor – Receives information from various sources on
matters concerning organization
 Disseminators - Transmitting information within the
organization
 Spokesman - Transmitting information outside the
organization
 Decision Roles
 Entrepreneur - Encouraging New Ideas
 Disturbance handler - Conflict handler
 Resource allocator
 Negotiator - Managers has to negotiate in important matters
concerning the organization
Evolution of management thought
Name and year of major work
1. Frederick W Taylor
Shop management (1903)
Principles of scientific
Management (1911)
Testimony before the
special house committee
(1912)
Major contribution to management
Acknowledge as “the father of
scientific management”. His
primary concern was to increase
productivity through greater
efficiency in production &
increased pay for workers, through
the application of the scientific
method. His principles emphasized
using science, creating group
harmony & cooperation, achieving
maximum outputs & developing
workers.
Evolution of management thought

Called for scientific selection of

workers and “Harmonious
cooperation” between labor
and management.
2. Henry L. Gantt (1901) Developed the Gantt chart.
Stresses the need for
training.
Evolution of management thought
Frank is known primarily for
his time and motion
3. Frank and Lillian studies. Lillian, an
Gilbreth (1900) industrial psychologist,
focused on the human
aspects of work and the
understanding of workers
personalities and needs.
Evolution of management thought
Modern Operational Management
Theory
4. Henri Fayol Referred to as “the father of modern
management theory”. Divided
Administration industrial activities into six
Industrielleet groups: technical, commercial,
financial, security, accounting and
Generale (1916) managerial. Recognized the need
for teaching management.
Formulated fourteen principles of
management, such as authority &
responsibility, unity of command,
scalar chain, and espirit decorps.
Evolution of management
5. Hugo Munsterberg
thought
Application of psychology to
(1912) industry and management.

6. Walter Dill Application of psychology to

Scott(1901, 1911) advertising, marketing and
personnel

7. Max Weber
(translations 1946, Theory of bureaucracy
1947)
Evolution of management thought
Referred to as “the father of the
social systems approach” to
8. Vilfredov Pareto organization and
(books 1896-1917) management.

Famous studies at the

Hawthorne plant of the
Western Electric company.
9. Elton Mayo and F.J. Influence of social attitudes
and relationships of work
Roethlisberger (1933) groups on performance.
Evolution of management thought
10. Chester Barnard The task of managers is to
The functions of the
maintain a system of
Executive (1938)
cooperative effort in a
formal organization. He
suggested a
comprehensive social
systems approach to
managing
Board of Directors , Chief
Executive Officer, Chairman
Managing Director ,General
Manager Top Level
Management
Departmental Manager ,
Deputy Departmental
Manager
Middle Level Management

Supervisors ,
Foreman
Lower Level or Operational Management

Workers or Non-
managerial
Members Plat form Area
Functions of Top Level Management

• Determining Objectives
• Determining Policies
• Determining Activities
• Assembling Resources
• Controlling the Work Performance
• Approving Budgets
Functions of Middle Level Management

• Interpreting Policies
• Preparing Organizational set-up
• Appointing Employees
• Issuing Instructions
• Motivating Employees
• Creating Cooperation
• Collecting & Submitting Information
• Submitting Suggestions
Functions of Lower Level Management

• Submitting Workers Grievances

• Ensuring Proper working Environment
• Ensuring Safety of Workers
• Helping Middle Level Management
• Inviting Suggestions
• Creating better Human Relations
Classical Approaches

Scientific

General
Administrative
Scientific Management
Scientific Management: emphasized the scientific study of
work methods to improve the productivity of individual workers

Two of its chief proponents were

Frederick W. Taylor, & Frank and Lillian Gilbreth
Scientific Management

• Credit for Scientific Management goes to Frederick Taylor who was hired by
Midvale Steel company in the US in 1878.
• Taylor discovered that production and pay were poor , inefficiency and waste
were prevalent , and most companies had unused potential .
• He concluded that management decisions were unsystematic and no efforts were
made to determine the best means of production
• Taylor introduced Scientific Management (he is called the Father of Scientific
Management ) which recommended the application of scientific methods to
analyze work and to determine the methods to complete the tasks efficiently.
Principles of Scientific Management
• Workers are essentially economic beings
• Workers should be developed to their maximum potential
• Competitive pay system
• Cooperation between managers and workers
• Organizational and individual goals should be compatible
What is scientific management
• Study jobs systematically with a view to improving the way tasks are performed
• Select the best employees for the various jobs.
• Train the employees in the most efficient methods
• Offer incentives (higher wages) to the most able employees and use piece-rate
system of payment to encourage greater effort.
• Use rest pauses to combat fatigue
• Entrust to supervisor the task of ensuring that employees are using the prescribed
methods
The ideas of scientific Management dramatically increased productivity
across all industries ,and they are still important today.
Administrative Management

Administrative Management: concerned with managing the total organization

Among the pioneering theorists were

Henry Fayol & Max Weber
Henry Fayol and the Functions of Management

• Henry Fayol was the first to systematize management management behavior– he was the first to identify the major
functions of management: planning, organizing, leading, controlling, as well as coordinating
Planning Organizing
You set goals and You arrange tasks,
decide how to people, & other
resources to accomplish
achieve them the work

Controlling Leading
You monitor performance, You motivate, direct &
compare it with goals and otherwise influence people
take corrective action as to work hard to achieve the
needed organization’s goals
Fayol's 14 Principles of Management

• The Principles of Management are the essential, underlying factors that form the foundations of successful management. According
to Henri Fayol in his book General and Industrial Management (1916), there are fourteen 'Principles of Management'.

• Division of Work - According to this principle the whole work is divided into small tasks. The specialization of the workforce according to the
skills of a person , creating specific personal and professional development within the labour force and therefore increasing productivity;
leads to specialization which increases the efficiency of labour.
• Authority and Responsibility - This is the issue of commands followed by responsibility for their consequences. Authority means the right
of a superior to give enhance order to his subordinates; responsibility means obligation for performance.
• Discipline - It is obedience, proper conduct in relation to others, respect of authority, etc. It is essential for the smooth functioning of all
organizations.
• Unity of Command - This principle states that each subordinate should receive orders and be accountable to one and only one superior. If
an employee receives orders from more than one superior, it is likely to create confusion and conflict.
• Unity of Direction - All related activities should be put under one group, there should be one plan of action for them, and they should be
under the control of one manager.
• Subordination of Individual Interest to Mutual Interest - The management must put aside personal considerations and put company
objectives firstly. Therefore the interests of goals of the organization must prevail over the personal interests of individuals.
• Remuneration - Workers must be paid sufficiently as this is a chief motivation of employees and therefore greatly influences productivity.
The quantum and methods of remuneration payable should be fair, reasonable and rewarding of effort.
Foyal's 14 Principles of Management
• The Degree of Centralization - The amount of power wielded with the central management depends on company size.
Centralization implies the concentration of decision making authority at the top management.
• Line of Authority/Scalar Chain - This refers to the chain of superiors ranging from top management to the lowest rank. The
principle suggests that there should be a clear line of authority from top to bottom linking all managers at all levels.
• Order - Social order ensures the fluid operation of a company through authoritative procedure. Material order ensures safety and
efficiency in the workplace. Order should be acceptable and under the rules of the company.
• Equity - Employees must be treated kindly, and justice must be enacted to ensure a just workplace. Managers should be fair and
impartial when dealing with employees, giving equal attention towards all employees.
• Stability of Tenure of Personnel - Stability of tenure of personnel is a principle stating that in order for an organization to run
smoothly, personnel (especially managerial personnel) must not frequently enter and exit the organization.
• Initiative - Using the initiative of employees can add strength and new ideas to an organization. Initiative on the part of employees
is a source of strength for organization because it provides new and better ideas. Employees are likely to take greater interest in
the functioning of the organization.
• Esprit de Corps/Team Spirit - This refers to the need of managers to ensure and develop morale in the workplace; individually and
communally. Team spirit helps develop an atmosphere of mutual trust and understanding. Team spirit helps to finish the task on
time.
Scope of Management in Various
areas of work (or) Functional
areas/ Operations
 Production of management
Management
 Operations Management includes work analysis,
planning, scheduling, routing, quality control, inventory
control and work study.
 Financial Management
 It includes economic forecasting, cost accounting,
budgeting, insurance and financial statistics.
 Personnel Management or HR Development
 Personnel management takes care of recruitment,
placement, training, transfer, promotion, safety, health,
welfare, services etc., of the employees.
 Marketing Management
 It is the process of getting the right product to the right
place in the right quantity at the right price and at the
right time.
 Maintenance Management
 Maintenance refers to actions carried out to replace, repair
or service all the components in a manufacturing plant so
that it continues to operate at a required level for a
specified time.
 Direction and organization of resources in order to keep
the buildings, equipment's and other service facilities in
the working condition.
 Materials Management and purchasing
 3 Inputs to organizations – Men, Machines and Materials
 Material Management – Planning, directing, controlling
and coordinating all activities which are i/p to
manufacturing process.
 Purchasing and Procurement – 5 R’s {of the Right
Quality, in the Right Quantity, from the Right Source, at
the Right Prices, and at the Right Time}
 Transport Management
 Transportation of raw materials as well as finished goods
 Includes studies on – transportation by rail, road, air and
water, packing and warehousing etc.,
 Actions to reduce transportation costs.
 Systems Management
 Modular decomposition of projects, delegate duties, track
status periodically, communicate with clients, integrate
modules, test the s/w and responsible for meeting the
deadline for project completion.
 Rural Management
 Rural resources and issues management{such as Water
resource management, forest and forest product
management, crop management, cattle management, rural
man power management}.
 Office Management
 Organized documentation of all activities
 Planning and controlling all office work including
maintaining and keeping records.
 Clerks, Cashier, Accountants and Office Managers.
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