Professional Documents
Culture Documents
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?
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What is Management?
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What is Management?
https://www.youtube.com/watch?
v=AS_THnmaQ7I
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Few Definitions of Management
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 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 Management
Forecasting
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 profession
one can study, acquire skills and qualify to become
manager.
Like any profession, management has a systematic
body of principles, techniques, and skills.
Difference Between Science and art:
Science Art
1. Defines Describes
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.
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.
Administration Management
1. Determining Objectives Planning the work to meet the
objectives given by administration
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.
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
• 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
• 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
achieve them accomplish 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
needed the 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.
• .
Fayol's 14 Principles of Management
• 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.
Foyal's 14 Principles of Management
• 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 of
management
Production / Operations 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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