By Sreekanth N V 8050464696. Unit-1 Introduction Meaning Nature and Characteristics of Management Scope & Functional Areas of Management Management as.

Management(art of getting things done through

people)

bySreekanth N V8050464696

Unit-1

IntroductionMeaningNature and Characteristics of ManagementScope & Functional Areas of ManagementManagement as Science, art or professionManagement & AdministrationDevelopment of Management thoughtEarly Management approachesModern management approaches

Introduction

What is Management? (Meaning)

Management in businesses and organizations is the function that coordinates the efforts of people to accomplish goals and objectives by using available resources efficiently and effectively.

Management includes planning, organizing, staffing, leading or directing, and controlling an organization to accomplish the goal.

Co-ordinate

Goal Setting

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

Management Activities

Four management activities included in this process are:1. Planning2. Organizing 3. Directing and4. Controlling.

Planning• Is a function that determines in advance

what should be done which is looking ahead and preparing for the future.

• Is a process of determining the objectives and charting out the methods of attaining those objectives.

• Is determination of what, where and how it is to be done and how the results are to be evaluated.

• Is done for the organization as a whole but every division, department or subunit of the orgainsation.

• Is a function which is performed by the managers at all levels-top(which may be as long as five years),middle(shorter may be week) and supervisory.

FORECAST

Determine Objectives and

methods

Mapping of Resources

Mapping Resources to all

units

Long term and 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 3. Financial: takes the form of salary, bonus, profit-

sharing etc.4. Nonfinancial: takes the form of job security,

opportunity of advancement recognition praise etc

Controlling

1. Establishing the standards of performance

2. Measuring current performance and comparing it against the established standards.

3. taking action to correct any performance that does not meet the standards of management process

ESTABLISH

MEASURE

REPAIR

Roles of a Manager

• Interpersonal RolesFigurehead: Duties of Ceremonial in natureGreeting dignitaries, attending wedding parties, taking a customer to lunch Leader:Motivate the teamReconcile individual needs with organization goalsLiaison:Collect info and build contacts from outside for benefit of organization

Roles of a Manager

• Informational rolesMonitor: Scan for info, interrogate, receive unsolicited info based out of personal contactsDisseminator:Passing the privileged info to sub ordinatesSpokesman:Represent organization with stakeholders, govt, private, public etc about the organization health and stability

Roles of a Manager

• Decision RolesEntrepreneur: Seek Innovation for organization, creates new ideasResource Allocator:Divide work and delegate authority in the teamNegotiator:Considerable time in negotiations

Management

• As an Science (WHY)-methods are not completely empirical-methods are systematic but not always-information can be ordered and analyzed- Results can be cumulative

and communicable- Can influence in any

culture and geography

• As an Art (HOW)- More art because it is

practical- Efficiency and

effectiveness is improved by skill

- Management is more art because one has to practice in a independent manner

- Partly science and partly art is what is 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 knowledge2. Formalised methods of acquiring training and experience3. Existence of an association with professionalism as its goal4. Existence of an ethical code to regulate the behaviour of members of

profession5. 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 approaches2. Neo-classical approaches3. 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 ApproachesF W Taylor’s Contributions:• Time and motion study to time a job and workers motion for increased efficiency• Differential paymentMotivating 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 trainingFocus on recruitment of skilled labor and training the labor to acquire skills• Intimate friendly cooperation between management & WorkersTo 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 managementAuthor of “General Administration and Industrial Administration”Six Groups of his focus:-Technical-commercial-Financial-Accounting-Security-Administrative or Managerial

Early Classical ApproachesAdministrative Management

Henry Fayol’s 14 principles of management1. Division of Work2. Authority and responsibility3. Discipline4. Unity of command5. Unity of direction6. Sub-ordination of Individual interest to general interest7. Remuneration8. Centralization9. Scalar Chain10. Order11. Equality12. Stability of Tenure of personnel13. Initiative14. 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

Bureaucracy1. There is insistence on following standard rules2. There is systematic division of work3. Principle of Hierarchy is followed4. Necessary for individuals to have training and

knowledge of rules5. Administrative acts, decisions and rules are in

written records6. There is rational personnel administration

Early Classical Approaches

Contributions• It is a logical extension

of management• It has shaped many

large enterprises of modern day industries

• It is the way of delegating reponsibilities

Limitations• Overconfirmity of rules• Buck passing• Categorization of queries• Displacement of goals• No real right of appeal• Neglect of informal groups• Rigid structure• Inability to satisfy the needs of

mature individuals

Neo-Classical Approach

The Human Relations Movement (Hawthrone studies)1. Illumination experiments2. Relay assembly test rooms3. Interviewing Programme4. Bank Wiring test room

Neo-Classical Approach

The Human Relations Movement (Hawthrone studies)1. Illumination experiments2. Relay assembly test rooms3. Interviewing Programme4. 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 ApproachMore mature and improved approachMajor contributors areDouglas McGregorAbraham MaslowKurt LewinChester BarnardMary Parker FolletGeorge HomansRensis LikertChris ArgyrisWarren 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 frameworkMajor 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 parts2. Central to the systems approach is the

concept of “holism”3. A system can be wither open or closed4. 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 approachLIMITATIONS: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 approachdesigning organizational structure, decision of decentralising, planning information decision system, resolving conflicts,In motivational and leadership approachesIn establishing controlIn 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 Books1. Principles of Management –PC Tripathi, PN Reddy, Tata McGraw

Hill 2. Dynamics of Entrepreneurial Development & Management-

Vasant Desai- Himalaya Publishing House3. Entrepreneurship Development - Small Business Enterprises –

Poornima M. Charantimath – Peasrson Education – 2006 Reference Books4. Management Fundamentals – Concepts, Application, Skill

Development – Robert Lusier- Thomson5. Entrepreneurship Development – SS Khanna – S Chand & Co. 6. Management – Stephen Robbins – Pearson Education/PHI – 17th

Edition, 2003