Overview

Introduction
Meaning
Nature and Functions of Management
Roles of Manager
Managerial Skills
Management as a Science, Art or Profession
Management & Administration
Development of Management Thought
Taylor & Henri Fayol Approaches
Modern Management Approaches
(Qualitative, Contingency and Systems Approaches)
 Introduction
What is Management? (Meaning)

Management in businesses and

organizations is the function
that coordinates the efforts of Goal Setting
people to accomplish goals and
objectives by using available
resources efficiently and
effectively. Co-ordinate

Management includes planning,

organizing, staffing, leading or
directing, and controlling an
organization to accomplish the
goal.
 Characteristics of Management
1. Intangible (not measurable and
cannot be seen) but its presence can
be felt by efforts in the production
sales and revenues.
2. universal and it is applicable to all
sizes and forms of organizations
3. a group activity and it involves getting
things done with and through others
4. Is goal oriented and all actions of
management are directed at achieving
specific goals.
5. is science as well art and emerging
now as a profession
6. is multidisciplinary and it has
contributions from psychology,
sociology, anthropology
 Nature of Management
1. All the managers carry out
the managerial functions of
planning, organizing, staffing
leading and controlling
2. management applies to any
kind of organization
3. applies to managers at all
organizational levels
4. the aim of the managers is
same create the surplus
5. managing is concerned with
productivity, which implies
effectiveness and efficiency
 Functions of Management
Four management
functions included in this
process are:
1. Planning
2. Organizing
3. Directing and
4. Controlling.
 Planning
FORECAST
• Is a function that determines in
advance what should be done which is
looking ahead and preparing for the Determine
future. Objectives and
• Is a process of determining the methods
objectives and charting out the methods
of attaining those objectives. Mapping of
• Is determination of what, where and Resources
how it is to be done and how the results
are to be evaluated.
Mapping
• Is done for the organization as a whole
Resources to all
but every division, department or
subunit of the orgainsation. units
• Is a function which is performed by the
managers at all levels-top(which may be Long term and
as long as five years),middle(shorter
may be week) and supervisory. short term
strategies
 Organizing and Staffing
1. Is a function which may be divided into two main sections namely the
human organization and material organization.
2. Once the plans have been developed and the objectives established
they must design and develop a human organization to carry out plans
successfully.
3. May defined as a structure which results from identifying and grouping
work, defining and delegating responsibility and authority and
establishing the relationships.
4. Staffing is also considered an important function in building the human
organization Involves building the right person for the right job.
5. Fixes responsibility for a manager to find the right person for the right
job and ensures enough manpower for the various positions needed for
the organization which involves selection and training of future
managers and suitable system of compensation
6. Different objectives require different kinds of organizations
 Directing
Is the next step after planning, organizing and staffing
Involves three sub-functions namely communication
leadership and motivation
1. Communication is the process of passing information
from one person to another Leadership is the process
of guiding and influencing the work of his
subordinates by the manager.
2. Motivation is the arousing the desire in the minds of
the workers to give their best to their enterprise. To
pull out the weight effectively, to be loyal to their
enterprise and carry out the task effectively.
Has two types of motivation financial and nonfinancial
1. Financial: takes the form of salary, bonus, profit-
sharing etc.
2. Nonfinancial: takes the form of job security,
opportunity of advancement recognition praise etc
 Controlling
1. Establishing the standards ESTABLISH
of performance
2. Measuring current MEASURE

performance and
comparing it against the REPAIR

established standards.
3. taking action to correct any
performance that does not
meet the standards of
management process
 Roles of a Manager
• Interpersonal Roles
Figurehead:
Duties of Ceremonial in nature
Greeting dignitaries, attending wedding parties, taking a
customer to lunch
Leader:
Motivate the team
Reconcile individual needs with organization goals
Liaison:
Collect info and build contacts from outside for benefit
of organization
 Roles of a Manager
• Informational roles
Monitor:
Scan for info, interrogate, receive unsolicited info
based out of personal contacts
Disseminator:
Passing the privileged info to sub ordinates
Spokesman:
Represent organization with stakeholders, govt,
private, public etc about the organization health
and stability
 Roles of a Manager
• Decision Roles
Entrepreneur:
Seek Innovation for organization, creates new
ideas
Resource Allocator:
Divide work and delegate authority in the team
Negotiator:
Considerable time in negotiations
 Management
• As an Science (WHY) • As an Art (HOW)
-methods are not - More art because it is
completely empirical practical
-methods are systematic - Efficiency and
but not always effectiveness is improved
by skill
-information can be - Management is more art
ordered and analyzed because one has to
- Results can be practice in a
cumulative and independent manner
communicable - Partly science and partly
- Can influence in any art is what is
culture and geography management
 Management
• As a Profession
-management cannot be a professional degree as it depends solely on
the skills that the manager uses in a particular situation
-though management has been taught this does not qualify to all the
characteristics of a profession.

Characteristics of profession

1. Existence of organised and systematic knowledge

2. Formalised methods of acquiring training and experience
3. Existence of an association with professionalism as its goal
4. Existence of an ethical code to regulate the behaviour of
members of profession
5. Charging of fees based on service, but due regard for the priority
of service than monetary reward
 Management & Administration

EFL Brech

Sheldon, Spriegal, Milward

Development of Management Thought
From 1700- till date there has been evolution in
the industrial process. The stages can be studied
in the following order:
1. Early classical approaches
2. Neo-classical approaches
3. Modern approaches
 Early Classical Approaches
• Frederick Winslow Taylor (1856-1915) is
considered the father of scientific
management.
• His contribution with experiments and
writings have helped evolution of
management studies.
• He served in Midvale steel, Simonds rolling
machine and Bethlehem steel.
 Early Classical Approaches
F W Taylor’s Contributions:
• Time and motion study
to time a job and workers motion for increased efficiency
• Differential payment
Motivating workers by paying incentives to workers who exceeded
standards
• Drastic reorganization of supervision
-separation of planning and doing
-functional foremanship( to teach methods to worker)
• Scientific recruitment and training
Focus on recruitment of skilled labor and training the labor to acquire
skills
• Intimate friendly cooperation between management & Workers
To reduce quarrel and increased productivity for win-win situation
 Early Classical Approaches
Other notable
contributions in this era
- Henry L Gantt with the
Gantt chart, for
planning, employee bar
chart and emphasis on
motivation
- Frank and Lilian
Gilbreth’s (motion and
fatigue study) gave rise
to therbligs to write
flow process charts
 Early Classical Approaches
Contributions
• Time and Motion Study
• Scientific Selection of
Workers
• Best Way of Doing Job
• Management and
Workers win win
situation by incentives
• Divide the work
responsibility to each
and every worker
• Training to workers
Limitations
• Economic incentives is
not everyone looked for
• Time and motion
studies are not entirely
scientific
• Separation led to
monotony of work
• More machines means
reduced man power in
industries led to job
cuts
 Early Classical Approaches
Administrative Management
Henry Fayol( 1841-1925) is considered as
the father of administrative management
Author of “General Administration and
Industrial Administration”
Six Groups of his focus:
-Technical
-commercial
-Financial
-Accounting
-Security
-Administrative or Managerial
 Early Classical Approaches
Administrative Management
Henry Fayol’s 14 principles of management
1. Division of Work
2. Authority and responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Sub-ordination of Individual interest to general interest
7. Remuneration
8. Centralization
9. Scalar Chain
10. Order
11. Equality
12. Stability of Tenure of personnel
13. Initiative
14. Esprit de Corps (Union is strength)
 Early Classical Approaches
Contributions
• Mooney, Railey and Col. L
Urwick wrote books inspired
by Fayol’s contibutions
• Clear line of authority was
followed
• Communication in writing to
individual employees
• One employee one function
only
• Manager controls should not
exceed more than six
• Authority can be delegated
but not responsibility
Limitations
• Small groups are formed without
looking at the larger picture
• Leads to dissatisfaction because
they cannot use all their abilities
• Increased overhead costs due to
more number of workers
• Some are contradictory like unity
of command and division of labor
• No empirical relation
• Leads to organizational structures
not caring about the employee
• Organizations are assumed as
closed systems but they are open
systems
 Early Classical Approaches
Bureaucracy
• Max Weber a German Sociologist is known as
father of bureaucracy (1864-1920)
• In 1910 Distinguished 3 basic leaderships:
-leader oriented (follow the leader approach)
-tradition oriented (from generations)
-bureaucratic (delegation based on
demonstrated ability of individual)
 Early Classical Approaches
Bureaucracy
1. There is insistence on following standard
rules
2. There is systematic division of work
3. Principle of Hierarchy is followed
4. Necessary for individuals to have training and
knowledge of rules
5. Administrative acts, decisions and rules are
in written records
6. There is rational personnel administration
 Early Classical Approaches
Limitations
Contributions
• Overconfirmity of rules
• It is a logical extension • Buck passing
of management • Categorization of queries
• Displacement of goals
• It has shaped many • No real right of appeal
large enterprises of • Neglect of informal groups
• Rigid structure
modern day industries
• Inability to satisfy the needs of
• It is the way of mature individuals

delegating
reponsibilities
 Neo-Classical Approach
The Human Relations Movement
(Hawthrone studies)
1. Illumination experiments
2. Relay assembly test rooms
3. Interviewing Programme
4. Bank Wiring test room
 Neo-Classical Approach
The Human Relations Movement
(Hawthrone studies)
1. Illumination experiments
2. Relay assembly test rooms
3. Interviewing Programme
4. Bank Wiring test room
 Neo-Classical Approaches
Contributions
• Business in not only techno-
economic but also social system
• Improved conditions wont affect
production
• A group enforces production
norm and not the industrial
engineer
• Worker wont work for money
only
• Leadership is effective when
democratic, employee-centered
• Informal group is more dominant
and not individual
Limitations
• It is incomplete and opposite to
scientific and administrative
approaches
• Keeping employee happy always
wont work. During recession it
impacts the organization
• Symbolic rewards wont be
appreciated with the employees
friends and family
• Informal groups not always work
the way it is emphasized in this
approach
• Production oriented approach
• Quick decisions cannot be made
 Neo-Classical Approach
Behavioral Approach
More mature and improved approach
Major contributors are
Douglas McGregor
Abraham Maslow
Kurt Lewin
Chester Barnard
Mary Parker Follet
George Homans
Rensis Likert
Chris Argyris
Warren Bennis
 Neo-Classical Approach
Behavioral Approach
-Highly critical about traditional organizations
- They are against line and staff hierarchy
- They talk about the practical situations to make
optimal decisions
- They are for positive and reformative measures
- Organization is a group of individuals with goals
- Leadership based studies were conducted
- Needs and motivation of people are different was
coined by these scientists
 Modern Approaches
• Quantitative Approach
- also called management science approach
- Use of Operations Research during and after
World War (US & UK)
- OR approach is disciplined thinking and
establishing relationships with different variables
- Used in planning and control activities
- But is not so much used in areas where human
activities are sought
 Modern Approaches
• Systems Approach
- Broad detailed, conceptual framework
Major contributors are
Chester Barnard,
George Homans,
Philip Selznick and
Herbert Simon
 Modern Approaches
• Systems Approach key concepts are:
1. A system is a set of independent parts
2. Central to the systems approach is the
concept of “holism”
3. A system can be wither open or closed
4. Every system has a boundary
 Modern Approaches
• Systems Approach- Contributions
-Both levels of system is studied micro
level and macro level
-Generalists are the requirement for
executive positions in this approach
LIMITATIONS:
This is not a new approach but the
parts of classic and neo-classical
approach
 Modern Approaches
• Contingency Approach
-also called if then approach
-Managers need to develop situational
sensitivity and practical sensitivity
-Applications of contingency approach
designing organizational structure,
decision of decentralising,
planning information decision system,
resolving conflicts,
In motivational and leadership approaches
In establishing control
In employee development and training
 Discussion Topics
• Briefly explain Henry Fayol’s principles of
management
• Discuss important features of Bureaucratic
approach of management.
• Explain the major tasks of manager in a
contingency approach
• Explain the experiments of Elton Mayo in the
field of behavioural management.
 Books
Text Books
1. Principles of Management –PC Tripathi, PN Reddy, Tata McGraw
Hill
2. Dynamics of Entrepreneurial Development & Management- Vasant
Desai- Himalaya Publishing House
3. Entrepreneurship Development - Small Business Enterprises –
Poornima M. Charantimath – Peasrson Education – 2006
Reference Books
1. Management Fundamentals – Concepts, Application, Skill
Development – Robert Lusier- Thomson
2. Entrepreneurship Development – SS Khanna – S Chand & Co.
3. Management – Stephen Robbins – Pearson Education/PHI – 17th
Edition, 2003