FUNDAMAENTALS OF

MANAGEMENT
ANJANA SINGH, ex IPS
Assistant Professor, IMS
 PEDAGOGY
• Lectures
• Case Studies
• Audio-Visual presentations
• Interactive exercises
• Net Assignments
• Written Assignments
 Student Evaluation

• Written Exam
– End-term: 50%
– Mid-term: 20%
• Class Presentation: 10%
– PPT or Role-play: Group assessment
• Written Assignment: 10%
– Individual assessment
• Class participation: 5%
– Individual assessment
• Project: 5% :
– Group or Individual assessment
 MANAGEMENT IS
• Science?
• Theory?
• Practice?

Why /Why not?

 MANAGEMENT VS.
BUSINESS
• 4 M’s
• Follow a method to understand difference
• What is a business? What are its
constituents?
• 5TH M :
 5 M’s of Management
• Men
• Machines
• Materials
• Money
• Methods?
 Definition of management

• Koontz: It is the art of getting things done

through and with people in formally organized
groups.
• Appleby: Management is the accomplishment
of results through the efforts of other people.
• McFarland: Management is the process by
which managers create, direct, maintain and
operate purposive organizations through
systematic, coordinated, cooperative human
effort.
 Basic definition:
• Management is the proper utilization of
people and other resources in an
organization to accomplish desired
objectives.
 What is an ORGANIZATION?
• A group of people who come together in
an organized way to achieve a common
purpose or objective.
 3 common characteristics:
• People
• Organization of the people
• Purpose
 Organization’s 3 characteristics
• Every organization has a purpose
• Every organization is made up of people
who are grouped in some way or another
• Every organization develops a systematic
structure that defines & limits the behavior
of its members
• Example?
Organizational Levels

TOP
LEVEL

MIDDLE
MANAGEMENT

1ST LINE MANAGEMENT

OPERATIVES
 Assignment 1
• Jack Welch’s “Straight from the Gut”
4 types of Managers:
– Type 1
– Type 2
– Type 3
– Type 4
 Efficiency vs. Effectiveness
Efficiency
• Doing a task correctly
• Output / Input= efficiency
• Output / Time taken= Effici
-ency
• Output / Cost= Efficiency
• Amount of wastage:
less wastage=more effici
-ency
Effectiveness
• Doing the correct task
• Goal attainment
• Getting the desired output
• Achieving desired quality
• Customer satisfaction
• Effectiveness= objective
Input quantity
Management as a Science

• Systematic, organized Body of knowledge

– Distinct discipline
– Principles are applied
• Management as a social science
– Concerned with human behavior
• An inexact science
– Does not offer absolute principles
• Scientific management
– Term used by Taylor:– application of science
 Management as Theory
• Theoretical base in Organizational
Behavior subjects
• OB research and theories have
significantly advanced
• Offers principles, methods and solutions to
deal with real life problems
• Principles and concepts offered in various
fields besides OB
 Management as Practice

• Well-defined body of knowledge

• Principles are applied in practice
• Formal education & training
• Tools & techniques developed in recent
years
• Consistent trend towards improvement
of management knowledge in a
systematic manner
• Universally applied fundamental
principles
 Management Today as a field:
essentials
• Management is a vast and extensive
subject
• Management is about human beings
whose behavior is unpredictable
• Management is a young , developing field
of knowledge
 Case study
• What are your learnings from the case?
– In terms of MANAGEMENT as an activity
– In terms of ORGANIZATIONS and their
activities
– In terms of Management as a PROCESS
– Any other important aspect
 Management as a process

Organizing Directing Output

Input
Planning
Men Staffing Goods
Machines Services
Material
Productivity
Money
Methods /
Profit
Information Controlling Customer
Satisfaction
 Goal of Managers
• Generate surplus
• Create environment that encourages
people to accomplish to their maximum
potential
• To improve productivity
– Productivity = Output
Input
• Ensuring efficiency & effectiveness
 Functions of Managers
• Also called as tools for managers to
achieve organizational objectives
– Planning
– Organizing
– Leading
– Staffing
– Controlling
 Planning
• Define and decide overall objectives of the
organization
• Plan for specific action
• Aimed to help firms decide future course
of action
• Help to determine necessary steps
required to achieve desired objectives
 Organizing

Is the Process of:

• Assigning Tasks
– Which tasks?
– How tasks can be made into specific jobs
– Authority & reporting relationship within
corporate hierarchy
• Allocating Resources
 Leading

• Influencing
• Motivating
• Directing people towards achievement
of organizational goals
• It involves
– Communicating with others
– Leadership style & approaches
– Motivating people to put in required effort
 Staffing

Better known as HRM

• Manning or filling various positions in the
organizational hierarchy
• Determining manpower reqmt.
• Recruiting & selection
• Training & placement
• Compensation, performance appraisal,
promotion, career planning
• Assessing capabilities of current employees
 Controlling
• Monitoring progress of orgzn. towards
its goal(s)
• Continuous measurement of and
analysis of actual operations against
established industry standards
• Control process involves:
– Company performance vs. standards
– Determining where –ve deviations occur
– Developing remedial measures to correct
deviations
 Early Management Thought
• Robert Owen (1771-1858)

• Charles Babbage (1792-1857)

• Andrew Ure (1778-1857) & Charles Dupin

(1784 – 1873)

• Henry Robinson Towne (1844-1924)

Did not think of Management as a separate
field of study. Tried to find solutions to
management problems
 Classification of Management
Thought
• Classical Management Thought
• Behavioral Approach
• Quantitative School
• Modern Management Thought
Classical Management Thought
• Scientific Management
• Administrative Theory
• Bureaucratic Management
 Scientific Management
• Frederick Winslow Taylor (1856-1915)
• Frank & Lilian Gilbreth (1878 – 1972)
• Henry Gantt (1861- 1919)
 Administrative Theory
• Henri Fayol (1841-1925)
• 14 Principles of Management
 Henri Fayol’s classification of

BUSINESS
OPERATIONS

Technical Commercial Financial Security Accounting Managerial

Activities Activities Activities Activities Activities Activities
BUREAUCRATIC MANAGEMENT

• Max Weber (1864 – 1920)

• Highly structured, formalized and

impersonal
Behavioral Approach to Management
• Mary Parker Follet
– Focused on Group Influences
• Elton Mayo
– Focus on Human relations
• Hawthorne experiments
• Abraham Maslow:
– Focus on Human needs
• Douglas Mcgregor:
– Questioned traditional assumptions about
employees
 MARY PARKER FOLLET
• Focused on functioning of groups in
organization: group ethics in orgnization
• Power should not be based on hierarchy
but on cooperation: concept of power
sharing
• Importance of integration i.e. finding
solutions acceptable to all group members
• Law of the situation: everyone actively
takes orders from the situation
• Authority of function rather than authority
of position
 ELTON MAYO (1880-1949)
• Father of the Human relations method
• Conducted the Hawthorne experiments
1927-1933
– Illumination experiments
– Relay assembly room experiments
– Interview phase
– Bank wiring room experiments
Hawthorne Illumination experiment:
Actual vs. expected results
experimental (act.)
control gp. (actual)
control gp. (expected)
experimental (expected)
Hawthorne Illumination experiment

• Initiated by Western Electric fm 1924 -1927

• Illumination of a gp. of workers manipulated
• Productivity recorded & compared with
productivity of control gp.
• +ve inc. in light inc. productivity
• -ve light decrease also shows
increasing productivity
 Hawthorne experiments
• Elton Mayo called to conduct subs.qt phase
• Relay assembly test room expt.
• Many variables changed
– Wages
– Rest periods varying lengths
– Total Work duration
– Can leave work area without permission
– Special attention from researchers & officials
 Hawthorne experiment
• Interview phase
• Interview conducted on 21000 people
• General findings:
– Objects, persons, events carry social meaning
– Complaint can be symptom of personal disturbance
– Personal situation is config.n of personal & social
reference
– Status in co. is a reference to assign value and
meaning e.g. wages, no. of work hrs.
– Organization rep.s system of values
– Social demands arise from group social experiences
 Hawthorne experiments
• Bank wiring room experiments
• Experiment: workers paid on incentive basis
• Observation: output stayed at a fairly constant
level
• Contrary to expectations
• Group enforced own idea of fair amount of
work/day
• Participant (s) did not behave as “economic
man”
• Group acceptance more important than money
 Maslow & Mcgregor
• Theory of Needs
• Theory X & Theory Y