Management by arun verma

Management

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Who Are Managers?Manager

Someone who works with and through other people by coordinating their work activities in order to accomplish organizational goals

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Types of ManagersFirst-line Managers

Are at the lowest level of management and manage the work of nonmanagerial employees

Middle ManagersManage the work of first-line managers

Top ManagersAre responsible for making organization-wide

decisions and establishing plans and goals that affect the entire organization

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Exhibit 1.1 Managerial Levels

TopManagers

Middle Managers

First-Line Managers

Nonmanagerial Employees

TopManagers

Middle Managers

First-Line Managers

Nonmanagerial Employees

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Where Managers Work

Organization

A consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals.

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Definition of Management:

Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims

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Definitions of Effectiveness and EfficiencyProductivity implies effectiveness and

efficiency in individual and organizational performance

Effectiveness is the achievement of objectives

Efficiency is the achievement of the ends with the least amount of resources (men, money, material, machinery, time etc.)

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Managerial Concerns

Efficiency“Doing things right”

Getting the most output for the least input

Effectiveness“Doing the right things”

Attaining organizational goals

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What Managers Do

Managerial Activities

•Make decisions

• Allocate resources

• Direct activities of others to attain goals

Managerial Activities

•Make decisions

• Allocate resources

• Direct activities of others to attain goals

Managers (or administrators)

Individuals who achieve goals through other people.

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What Do Managers Do?

Functional ApproachPlanningOrganizingLeadingControlling

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Management Functions (cont’d)

Planning

A process that includes defining goals, establishing strategy, and developing plans to coordinate activities.

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Management Functions (cont’d)

Organizing

Determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made.

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Management Functions (cont’d)

Leading

A function that includes motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts.

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Management Functions (cont’d)

Controlling

Monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations.

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Management Functions

Planning

Defining goals,establishingstrategy, anddevelopingsubplans tocoordinateactivities

Lead toOrganizing

Determiningwhat needsto be done,how it willbe done, andwho is to do it

Leading

Directing andmotivating allinvolved partiesand resolvingconflicts

Controlling

Monitoringactivitiesto ensurethat they areaccomplishedas planned

Achieving theorganization ’s

statedpurpose

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What Do Managers Do? (cont’dMintzberg’s Management Roles Approach

Interpersonal rolesFigurehead, leader, liaison

Informational rolesMonitor, disseminator, spokesperson

Decisional rolesEntrepreneur, disturbance handler, resource

allocator, negotiator

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Mintzberg’s Managerial Roles

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Mintzberg’s Managerial Roles (cont’d)

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Mintzberg’s Managerial Roles (cont’d)

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What Do Managers Do? (cont’d)Skills Approach

Technical skillsHuman skillsConceptual skills

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Management SkillsTechnical skillsThe ability to apply specialized knowledge or expertise.

Human skillsThe ability to work with, understand, and motivate other people, both individually and in groups.

Conceptual SkillsThe mental ability to analyze and diagnose complex situations.

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Exhibit 1.4 Skills Needed at Different Management Levels

TopManagers

MiddleManagers

Lower-levelManagers

Importance

ConceptualSkills

HumanSkills

TechnicalSkills

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What Is An Organization?An Organization Defined

A deliberate arrangement of people to accomplish some specific purpose

Common Characteristics of OrganizationsHave a distinct purpose (goal)Are composed of peopleHave a deliberate structure

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Exhibit 1.6 The Changing OrganizationTraditional Stable Inflexible Job-focused Work is defined by job positions Individual-oriented Permanent jobs Command-oriented Managers always make decisions Rule-oriented Relatively homogeneous workforce Workdays defined as 9 to 5 Hierarchial relationships Work at organizational facility during

specific hours

New Organization Dynamic Flexible Skills-focused Work is defined in terms of tasks to

be done Team-oriented Temporary jobs Involvement-oriented Employees participate in decision

making Customer-oriented Diverse workforce Workdays have no time boundaries Lateral and networked relationships Work anywhere, anytime

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Management: DefinitionAcc to Harold Koontz: Management is

the art of getting things done through & with an formally organized group

Acc to Henry Fayol: To manage is to forecast & plan, to organize, to co-ordinate and to control

PODSCCRB:- Planning, Organizing, Directing,

Staffing, Controlling, Co-ordinating, Reporting & Budgeting

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Features of ManagementArt as well as ScienceManagement is an activityManagement is a continuous processManagement achieving pre-determined

objectivesOrganized activitiesManagement as a system Management is a discipline

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Features of ManagementManagement is a distinct entityManagement aims at maximising profitManagement is a purposeful activityManagement is a professionUniversal applicationManagement is getting things doneManagement is needed at all levels

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Importance of ManagementManagement meet the challenge of changeAccomplishment of group goalsEffective utilization of resourcesEffective functioning of businessResource DevelopmentSound organization StructureManagement directs the organizationIntegrates various interestsStability

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Importance of ManagementInnovationCo-ordination and team-spiritTackling problemsA tool for Personality Development

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ORGANISATION THEORIESThe theories are crafted in view of the basic

production beingReplaced my mass production, to organize

technology- information-manpower interface for proper

coordination of Activities of large number of people and increased

efficiency.Major theories are: 1. Classical Theory2. Neo-Classical Theory3. Modern Theory

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a) Scientific Managementb) Administrative Managementc) Theory of Bureaucracy

1. CLASSIC THEORIES

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a) Scientific management Introduced by F.W. Taylor in USA in the

beginning of 20th century.He is called as the Father of Scientific

ManagementFocus on improving the efficiency of the workers.

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Principles of Scientific Management

Task fragmentationScientific Analysis of the jobs being done to

select the best method of doing the taskStandardization of tools and methods for

productionScientific selection through specializationFinancial Incentives and rewardsTrainingDemarcation of responsibilities between

management and workers

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Limitations of scientific mangement

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Mechanical approach considering worker an adjunct to machines

Narrow specialization due to fragmentation of jobsRoutinization of jobs leading to boredom, short job

cycles, lack of autonomy hence worker distressMore of a “SYSTEMATIC” approach than being

scientific“Command and control” system “conception and planning” being separated from

“execution”Wages not being increased in proportion of

productionRequired to perform consistently at high level of

efficiency

B. Administrative ManagementHenry Fayol (1841-1925), a french

industrialistGiven :

Elements of Management- Planning, Organizing, Commanding, Co-ordination & Control

Qualities of Manager: Physical, Mental, Moral, General Education, Special Knowledge & Experience

Categories of operations: technical, commercial, financial, security, accounting, management

Principles of Management

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Principles of Management1. Division of labour2. Authority3. Discipline4. Unity of command5. Unity of direction6. Subordination of individual interest to

common good7. Remuneration8. Centralisation9. The hierarchy10. Order11. Equity12. Stability on staff13. Initiative14. Esprit de corps

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Principles by Luther gullick and Lyndall Urwick; an extension to Fayol

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Fitting people to the organization structureRecognizing one top executive as the source of

authorityAdhering to the unity of commandUsing special and general staffDepartmentalizing by purpose, process,

persons and placeConsidering appropriate spans of controlDelegating and utilising the exception principleMarking responsibility commensurate with

authority

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Limitations of Admin. Mgmt principles

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Behavioral, cultural and social components ignored

No emphasis on variations in human response towards management processes like planning, directing and controlling

Rational approach towards human factor

C. BureaucracyGiven by Max Weber, a German sociologist.Known as father of BureaucracyProposed that bureaucracy provides most

efficient framework for designing business, government, military and other complex organisations

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Principles Of Bureaucracy

Division of labor based on functional specialization, individual specialization, task allocation according to competence

Well defined hierarchy of authorityRational legal authority (rank/position)Traditional authority (monarch)Charismatic authority (mass appeal/ special powers)

A system of procedures to deal with work situationsSystem of record keepingA system of promotion and selection for employment

based on technical competenceRational decision making based on fairness, justice and

equityAdherence to norms, code of conduct ; consistency of

actionsRules covering rights and duties of positional incumbents

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Limitations of bureaucracy

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1. Goal displacement (procedure vs. result)2. Inadequate communication3. Lack of effective coordination4. Lack of system for conflict management5. Red tapism (rules not applied uniformly)6. Outdated notion of authority7. Lack of opportunity for personal growth8. Lack of innovativeness9. Inadequate appreciation of organizational

dynamics10. Change resistant11. Suboptimal utilization of manpower

2. Neo-Classical Theory

The Human Relations approachBehavioral science contributions

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2. NEO-CLASSIC THEORIES

a. The Human Relations MovementIllumination Experiments (hawthorne

experiments) by elton mayoResulted in cnclusion that change in social

conditions , motivation and supervision and NOT the working conditions were factors responsible for increase in production

Role of informal work groupProduction determined more by social factors

than aptitute or physiological factors

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Principles of human relations school

“social capacity” rather than “physical capacity”Psychological needs are prime moversIndividual behavior is affected by feelingsOrgnisation to be viewed both as techno economic

as well as social systemCritical role of informal work groupsWorkers act/react as members of groups and not

mere individualsInformal leadership more emergent than formal

leadershipNecessacity of 2 way communicationIntegration between goals of organisation and

individualsManagers developing social and technical skills45

B. Behavioral science contributionStress on developing organisation as

COOPERATIVE SYSTEMGroup dynamics playing an important roleMore stress on interpersonal relationships“personality” and “behavior” : external

situation factors and psychic inner causes

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Assumptions about people: McGregor’s theoryTheory XAverage human being is

lazy and deslikes workPeople like to be

directed and lack ambition

People have little capacity for creativity

Most people are indifferent to organisation goals

Motivation is always relatedto physiological needs (food, shelter etc)

Theory YWork is natual as play if

conditions are favourableSelf direction and control

to serve the objectivesCommitment to

objectives and satisfaction of egoes

Proper conditions are necessasary, shortcomings are not inherited

Potential partially utilised under present ind. system47

Motivation and Job satisfactionMaslow’s theory: identification of 5 basic

needs:1.Physiological needs: hunger, thirst etc.2.Safety needs: protection against danger,

threat, deprivation etc3.Love needs: belonging to groups,

friendship, affection4.Esteem needs: self respect, respect for

others, ego and status needs5.Self fullfillment and self actualisation: self

development, creativity, satisfaction, realising owns potential48

Immaturity maturity continuum (chris rgyris)

IMMATURITY CHARACTERISTICS

PassivityDependenceFew ways of

behavingShallow interestsShort time

perspectivesSubordinate

positionLack of self

awareness

MATURITY CHARACTERISTICS

ActivityResponsible

independenceDiverse behaviorDeep interestsLong time

perspectivesSuper ordinate

positionsSelf awareness and

control49

Other features of neo classical theoryNeed of a DECENTRALISED STRUCTUREDEMOCRATIZATION and PARTICIPATION

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Modern TheoryA. Quantitative Approach (Mgmt. science

theory)B. Systems ApproachC. Contingency Approach

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3. MODERN THEORIES

A. QUANTITATIVE APPROACHEmerged after world war 2Operation research: mathematical model building and

other applications of quantitative techniques to managerial problems

Operations management: quantitative technique to solve manufacturing problems.e.g. forecasting, linear and non linear programming, scheduling, simulation, break even analysis, computer aided design (CAD), Computer automated manufacturing (CAM), total quality management (TQM)

Information technology: internet, intranet, decision support systems (DSS)

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B. SYSTEMS APPROACH

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SYSTEMS approach (cont..)An extension of the humanistic perspective

that describes organisations as open systems that are characterised by entropy, synergy and subsystem interdependance.

Open system: which interacts with the environment to survive

Closed system: does not interacts with the external environment

Entropy: tendency of a system to run down and die

Synergy: concept that the whole is greater than the sum of its parts

Subsystems: parts of the system that depend upon one another for their functioning

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Organizations as an open systemSystem and sub systemHolism : whole is greater than arithmetic mean of its

partsImportation of energyConversion process (JIT, kaizen, (continuous

improvement) TQM)Export of energy (value added products, services)Cyclic nature of activitiesNegative entropy: resistance to perishSelf regulatory mechanismsInternal elaborations (strategizing, elaborating activities)Integrate: unity of actions and coordinationEquifinality (reaching same final state from different

initial conditions by variety of ways)

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C. Contingency theoryAn extension of the humanistic perspective in which

the succesful resolution of organizational problems is thought to depend upon manager’s identification of key variations in the situation at hand.

Universalistic view: there is one best way (either be leadership style,

bureaucratic structure)The same concept is applicable to every another organization

Case view: Every situation is uniqueDetermining new methods/solution for every new situation or

problem

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Case view

Universalistic view

CONTINGENCY VIEWOrganization phenomenon exist in

logical patterns; management devise and apply similar responses

to common types of problems

QUERIES ???

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