Introduction to Management

Henri Fayol (1916) defined management as “ to forecast

and plan, to organize, to command, to coordinate and
control”.
Peter F Drucker (1955) defined management as
“management is concerned with the systematic
organisation of economic resources and its task is to make
these resources productive”.
 Nature of Management
(1) Management is a Social Process
(2) Management also denotes a body of people involved in
decision-making
(3) Management is omnipresent and universal
(4) It is an inexact science
(5) It is a complex
(6) Management is situational in nature

Contd.,
 Nature of Management
(7) Management is an act and also a science
(8) Management is a profession
(9) Management is inter-disciplinary
 Importance of Management
(1) It facilities the achievement of goals through limited
resources
(2) It ensures smooth sailing in case of difficulties
(3) It ensures continuity in the organization
(4) It ensures economy and efficiency
(5) It focus on group efforts
(6) It is the key to the economic growth
 Functions of Management
(1) Koontz identified planning, organizing, staffing,
directing and leading and controlling as major
functions.
(2) Luther Gullick coined POSDCORB – Planning,
Organizing, Staffing, Directing, Coordination, Reporting
and Budgeting.
(3) Henri Fayol – Planning, Organizing, commanding,
coordinating and controlling
Scientific Management Theory – Frederick
Winslow Taylor
Scientific Management Theory – Frank and Lillian Gilbreth

A construction contractor by trade, Frank Gilbreth gave up that career to study scientific
management after hearing Taylor speak at a professional meeting. Frank and his wife
Lillian, a psychologist, studied work to eliminate inefficient hand-and-body motions.
The Gilbreths also experimented with the design and use of the proper tools and
equipment for optimizing work performance. Also, as parents of 12 children, the
Gilbreths ran their household using scientific management principles and techniques.
In fact, two of their children wrote a book, Cheaper by the Dozen, which described life
with the two masters of efficiency.
Scientific Management Theory – Frank and Lillian Gilbreth

Frank is probably best known for his bricklaying experiments. By carefully analyzing the

bricklayer’s job, he reduced the number of motions in laying exterior brick from 18 to

about 5, and in laying interior brick from 18 to 2. Using Gilbreth’s techniques, a

bricklayer was more productive and less fatigued at the end of the day.
Scientific Management Theory – Frank and Lillian Gilbreth

The Gilbreths invented a device called a microchronometer that recorded a worker’s

hand-and-body motions and the amount of time spent doing each motion. Wasted
motions missed by the naked eye could be identified and eliminated. The Gilbreths also
devised a classification scheme to label 17 basic hand motions (such as search, grasp,
hold), which they called therbligs (Gilbreth spelled backward with the th transposed).
This scheme gave the Gilbreths a more precise way of analyzing a worker’s exact hand
movements.
Modern Management Theory/ Administrative Theory
Henri Fayol first identified five functions that
managers perform: planning, organizing,
commanding, coordinating, and controlling.
Fayol’s attention was directed at the activities of all
managers. He wrote from his personal experience as
the managing director of a large French coal-mining
firm.
His 14 Principles of management are being practising
by the organizations even today.
Contributions:
Industrial and General Administration (1930)
General and Industrial Management (1949)
 Fayol’s 14 Principles of Management
1. Division of work. Specialization increases output by making employees
more efficient.
2. Authority. Managers must be able to give orders, and authority gives
them this right.
3. Discipline. Employees must obey and respect the rules that govern the
organization.
4. Unity of command. Every employee should receive orders from only one
superior.
5. Unity of direction. The organization should have a single plan of action to
guide managers and workers.
 Fayol’s 14 Principles of Management
6. Subordination of individual interests to the general interest. The
interests of any one employee or group of employees should not take
precedence over the interests of the organization as a whole.
7. Remuneration. Workers must be paid a fair wage for their services.
8. Centralization. This term refers to the degree to which subordinates are
involved in decision making.
9. Scalar chain. The line of authority from top management to the lowest
ranks is the scalar chain.
10. Order. People and materials should be in the right place at the right
time.
 Fayol’s 14 Principles of Management

11. Equity. Managers should be kind and fair to their subordinates.

12. Stability of tenure of personnel. Management should provide orderly
personnel planning and ensure that replacements are available to fill
vacancies.
13. Initiative. Employees allowed to originate and carry out plans will exert
high levels of effort.
14. Esprit de corps (Team Spirit). Promoting team spirit will build harmony
and unity within the
organization.
Behavior Approach to Management by Elton Mayo
George Elton Mayo was known for his famous
experiment at Hawthorne Plant of the Western
Electric Company, Chicago, USA for evaluating
the attitudes and psychological reaction of
workers on the job situations.
The Study focused on the influence of social
attitudes and relationships of workgroups on
performance. The experiment started as a
study into physical conditions and
productivity. It ended as a series of studies
into social factors: membership of work groups,
informal relationship with the supervisors and
so on.
 Hawthorne Experiment - Elton Mayo, Roethlisberger and Dickson's
Contributions:
George Elton Mayo: Psychology of Pierre Janet, London: Greenwood Press, 1972; Routledge, reprint
edition 2013.
George Elton Mayo: The Human Problems of an Industrial Civilization, Routledge, reprint edition
2003.
George Elton Mayo: Critical Evaluations in Business and Management, Ed. John Cunningham Wood,
Michael C. Wood, 2004.
George Elton Mayo: The Social Problems of an Industrial Civilization, Routledge, 2007.
Roethlisberger, F.J. & Dickson, W.J. (1939) Management and the worker: an account of a research
program conducted by the Western electric company, Hawthorne works, Chicago. Harvard
University Press, Cambridge, MA.
Roethlisberger, Fritz Jules (1941) Management and Morale..
Roethlisberger, F.J. (1968) Man in organization, Belknap Press of Harvard University Press,
Cambridge, MA.
Roethlisberger, F.J. (1977) The elusive phenomena. An autobiographical account of my work in the
field of organizational behavior at the Harvard Business School. Harvard Business School Pr,
Cambridge, MA.
Behavior Approach to Management - Hawthorne Experiment
The field of study that researches the actions (behavior) of people at work is called
organizational behavior (OB). Much of what managers do today when managing
people—motivating, leading, building trust, working with a team, managing conflict,
and so forth—has come out of OB research.

Conclusions of Hawthorne Researches:

1. Individual workers must be seen as members of a group.

2. The Sense of belongingness and effective management were the two secrets
unfolded by the Hawthorne experiments.
 Conclusions of Hawthorne Researches:
3. Need for status and belongingness to a group were viewed as more
important than monetary incentives or good physical working conditions.

4. Informal or personal groups influenced the behavior of workers on the

job.

5. To seek workers cooperation, the management should be aware of their

social needs and cater to them. Otherwise, there is every danger that the
workers ignore and turn against the interests of the organization.
 Motivational Theories
Motivation: The process by which a person’s
efforts are energized, directed, and sustained
toward attaining a goal.
(1) Maslow’s hierarchy of needs
(2) Herzberg’s two-factor theory
(3) McGregor’s Theories X and Y
Motivational Theories - Maslow’s hierarchy of
needs
 Motivational Theories - Maslow’s hierarchy of needs
1. Physiological Needs: Includes hunger, thirst, shelter, sex, and other
bodily needs.
2. Safety-security Needs: Security and protection from physical and
emotional harm.
3. Social-belongingness Needs: Affection, belongingness, acceptance, and
friendship.
4. Esteem Needs: Internal factors such as self-respect, autonomy, and
achievement, and external factors such as status, recognition, and
attention.
5. Self-actualization Needs: Drive to become what we are capable of
becoming; includes growth, achieving our potential, and self-fulfillment.
Motivational Theories - Herzberg’s two-factor
theory
Motivational Theories - Herzberg’s two-factor
theory
 Motivational Theories - McGregor’s Theories X and Y
Douglas McGregor is best known for proposing two
assumptions about human nature: Theory X and
Theory Y.
Very simply, Theory X is a negative view of people
that assumes workers have little ambition, dislike
work, want to avoid responsibility, and need to be
closely controlled to work effectively. Theory Y is a
positive view that assumes employees enjoy work,
seek out and accept responsibility, and exercise self
direction.
McGregor believed that Theory Y assumptions
should guide management practice and proposed
that participation in decision making, responsible
and challenging jobs, and good group relations would
maximize employee motivation.