Module 1 Contd


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Module 1 Contd

  1. 1. Management as a Profession 1.Existence of a body of Knowledge 2.Formal method of acquisition of knowledge. 3.Ethical Codes. 4. Professional Association. 5.Service motive.
  2. 2. Distinction B/W Admin and Mgmt <ul><li>View Points: </li></ul><ul><li>Administration is different from management. </li></ul><ul><li>2.Administration is a part of management. </li></ul><ul><li>3.Administration and management are one </li></ul>
  3. 3. Distinction B/W Admin and Mgmt Doing Function Acting. Decision within admin framework Internal factors Managerial personnel- employees Middle level managers and lower level Thinking Function Major Decisions External factors Owners of an enterprise Top level Mgmt 1.Nature of work. 2.Scope 3.Influence 4.Status 5.Level Management Administration Basis of Diff-erence
  4. 4. Systems Approach to Management <ul><li>Treating an organization as formed of different Systems is known as systems approach. </li></ul><ul><li>Systems theory was first applied in the fields of science and engineering. </li></ul><ul><li>A system is a set of interrelated but separate parts working towards a common purpose. The arrangement of elements must be orderly and there must be proper communication facilitating interaction between the elements and finally this interaction should lead to achieve a common goal. </li></ul>
  5. 5. <ul><li>There are two major types of systems: </li></ul><ul><li>A closed system has definite boundaries; it operates relatively independently and is not affected by the environment outside the system. </li></ul><ul><li>An open system as the name implies, is characterised by its interaction with the external environment. </li></ul><ul><li>Clearly, any business or other organization must be described by an open-system model that includes interactions between the enterprise and its external environment. </li></ul>
  6. 7. <ul><li>Systems approach of management provides an integral approach to management </li></ul><ul><li>Key Concepts of Systems Approach </li></ul><ul><li>Subsystem: Subsystems are those parts which make up the whole system. </li></ul><ul><li>Synergy: Synergy is the situation in which the whole is greater than the sum of its parts. </li></ul><ul><li>Open System : It is a system that interacts with its environment. </li></ul><ul><li>Closed System: It is a system that does not interact with its environment. </li></ul><ul><li>System Boundary: It is the boundary that separates each system from its environment. It is rigid in a closed system while flexible in an open system. </li></ul><ul><li>Flows: A system has flows of information, materials and energy </li></ul><ul><li>Feedback: It is the part of system control in which the results of actions are returned to the individual, allowing work procedures to be analyzed and corrected. </li></ul>
  7. 8. <ul><li>Features of Systems Approach to management </li></ul><ul><li>According to Herbert B. Hicks and C. Ray Gullett. </li></ul><ul><li>The characteristics of systems approach to management are: </li></ul><ul><li>1. Dynamic </li></ul><ul><li>2. Multilevel and Multidimensional </li></ul><ul><li>3. Multimotivated </li></ul><ul><li>4. Probabilistic </li></ul><ul><li>5. Multidisciplinary </li></ul><ul><li>6. Descriptive </li></ul><ul><li>7. Adaptive </li></ul>
  8. 9. MANAGERIAL ROLES <ul><li>Henry Mintzberg - contains ten inter-related roles .Manager should posses skills and roles to perform their jobs effectively and efficiently. The main roles performed are – </li></ul><ul><li>Decision Roles. </li></ul><ul><li>Inter personal roles and </li></ul><ul><li>Informational roles. </li></ul>
  9. 10. Managerial Roles <ul><li>Interpersonal roles: a) Figure head. </li></ul><ul><li>b)Leadership role. </li></ul><ul><li>c) Liaison officer. </li></ul><ul><li>Information roles : a) Monitor role. </li></ul><ul><li>b) Disseminator. </li></ul><ul><li>c) Spokes man. </li></ul><ul><li>Decision making role : a) Entrepreneur Role. </li></ul><ul><li>b) Conflict handler. </li></ul><ul><li>c) Resource allocator. </li></ul><ul><li>d) Negotiator </li></ul>
  10. 11. <ul><li>Technical Skills </li></ul><ul><li>Human skills </li></ul><ul><li>Conceptual Skills </li></ul><ul><li>Decision Making skills </li></ul>Managerial skills
  11. 12. Different levels of Management <ul><li>Top level managers </li></ul><ul><li>Middle level Managers </li></ul><ul><li>Lower level or first line supervisors </li></ul>
  12. 13. Evolution of management Thought <ul><li>Three Phases: </li></ul><ul><li>1. Pre – Industrial Revolution period </li></ul><ul><li>2. Industrial Revolution period </li></ul><ul><li>3. Post Industrial revolution period </li></ul><ul><li>( Scientific Management ) </li></ul>
  13. 14. Pre – Industrial Revolution period <ul><li>Earliest civilizations -Sumerians – Priest maintained business, legal and historical records in Ur (In Iraq now) </li></ul><ul><li>Roman catholic church – </li></ul><ul><li>1.Job descriptions for priests, bishops and other religious workers. </li></ul><ul><li>2.Compulsory Staff Service. </li></ul><ul><li>3.Staff Independence </li></ul>
  14. 15. 2. Industrial Revolution period 1700 - 1785 <ul><li>a ) Domestic system </li></ul><ul><li>b) Putting –out system </li></ul><ul><li>c) Factory system </li></ul>
  15. 16. Post Industrial revolution period <ul><li>1.How to increase productivity? </li></ul><ul><li>2.How to motivate workers? </li></ul><ul><li>Productivity: </li></ul><ul><li>The output input ratio within a time period with due consideration for quality </li></ul>
  16. 17. Scientific Management – F.W.taylor <ul><li>F. W.Taylor(1856 -1915) known popularly as the Father of Scientific Management and a Classicist in management theory. Author of the book “Scientific Management” </li></ul><ul><li>PRINCIPLES OF SCIENTIFIC MANAGEMENT </li></ul><ul><li>1.Time and Motion Study : </li></ul><ul><li>2.Science, but not rule of the thumb: </li></ul><ul><li>3. Differential Payments: </li></ul><ul><li>4. Group Harmony: </li></ul><ul><li>5.Co-operation between worker and management : </li></ul><ul><li>6.Method Study : </li></ul><ul><li>7.Scientific selection and training </li></ul><ul><li>8. Standardization : </li></ul><ul><li>9. Separation of planning from Execution : </li></ul>
  17. 18. CRITICISM OF TAYLOR’S PRINCIPLES : <ul><li>It was confined to production management. </li></ul><ul><li>advocated the concept of functional foremanship to bring about specialization in the organization but this is not feasible in practice as it violates the principle of unity of command. </li></ul><ul><li>The use of the word scientific before management was objected because what is actually meant by scientific management is nothing but a scientific approach to management </li></ul>
  18. 19. Contributors to the development of Scientific Management <ul><li>Charles Babbage. </li></ul><ul><li>Frank and Lillian Gilbreth. </li></ul><ul><li>Henry Gantt. </li></ul><ul><li>Harrington Emerson. </li></ul>
  19. 20. ADMINISTRATIVE MANAGEMENT THEORY - Henry Fayol (1841 -1925) <ul><li>Henry Fayol is known as the “FATHER OF ADMINISTRATIVE MANAGEMENT.” </li></ul><ul><li>14 principles of management – </li></ul><ul><li>1.Division of work : </li></ul><ul><li>2.Authority and responsibilities: </li></ul><ul><li>3.Discipline: </li></ul><ul><li>4.Unity of command. </li></ul><ul><li>5.Unity o Direction. </li></ul><ul><li>6.Subordination of individual interests to general interest. </li></ul><ul><li>7. Remuneration. </li></ul>
  20. 21. <ul><li>8. Centralization. </li></ul><ul><li>9. Scalar Chain. – Gang Plank for quick Information </li></ul><ul><li>A </li></ul><ul><li>B L </li></ul><ul><li>C M </li></ul><ul><li>D N </li></ul><ul><li>E O </li></ul><ul><li>F P </li></ul><ul><li>10.Order. </li></ul><ul><li>11.Equity. </li></ul><ul><li>12.Stability of tenure. </li></ul><ul><li>13.Initiative. </li></ul><ul><li>14. Espirit de Corps . </li></ul>
  21. 22. Criticism of Fayol’s Principles <ul><li>This principles indicate that organizations are a closed system. </li></ul><ul><li>Principles like unity of command, unity of direction, division of labour, specialisation and span of management are applicable only to tall and mechanistic organizations. Further they do not use the employees skills and potentialities to the maximum extent. </li></ul><ul><li>The principle of scalar chain is also not applicable in modern organizations as the information requests for carrying out the work flow in different lines. </li></ul>
  22. 23. The Emergence of behavioral sciences- Hawthorne studies -Elton Mayo <ul><li>Many of the findings focused attention on the mechanical and physiological variables. Researches for human behavior discovered that the real cause of human behaviour was something more than mere physiological variables. </li></ul><ul><li>The human relations approach had its beginning in the late 1930’s. This movement took a small group into consideration. The famous “Hawthorne experiments” were conducted by Elton Mayo and his Harvard associates at the Hawthorne plant of Western Electric Co.Chicago,America to look into low production and unrest. </li></ul><ul><li>The investigations lasted for 5 years 1927 - 1932 </li></ul>
  23. 24. These experiments were divided into four phases: <ul><li>1.Illumination Experiment- </li></ul><ul><li>2. Relay assembly test room experiments : </li></ul><ul><li>3. Mass interviewing program </li></ul><ul><li>4. Observation experiments </li></ul><ul><li>Implications of Hawthorne experiments </li></ul><ul><li>1.Social factors in out put . 2. Communication. </li></ul><ul><li>3.Group Influence. 4. Supervision. </li></ul><ul><li>5.Conflicts. 6. Leadership. </li></ul>
  24. 25. Criticisms against Hawthorne studies are: <ul><li>1)The Hawthorne researches did not give sufficient attention to the attitudes that people bring along to the workplace. </li></ul><ul><li>2) The Hawthorne plant was not a typical plant because it was a thoroughly unpleasant place to work. hence, the results could not be valid for others. </li></ul><ul><li>3) The Hawthorne studies look upon the worker as a means to an end, and not an end himself. </li></ul>
  25. 26. RECENT CONTRIBUTIONS TO MANAGEMENT THOUGHT -PETER DRUCKER <ul><li>According to Peter. F. Drucker management can never be a exact science as business is highly dynamic and business conditions change continuously. Management can be a social science as it mostly deals with human beings. He treated mgmt as discipline as well as profession. </li></ul><ul><li>As Discipline- own tools skills, techniques and approaches. </li></ul><ul><li>As a mgmt- liberal profession. </li></ul><ul><li>3 basic characters. </li></ul><ul><li>1. Enterprise should be organised for performance. </li></ul><ul><li>2. It should contain the least possible no of managerial levels. </li></ul><ul><li>3. It must make possible the training and testing of tomorrow s top managers. </li></ul>
  26. 27. SOCIAL RESPONSIBILITY OF MANAGERS <ul><li>“ Social responsibilities refer to the businessman’s decisions and actions taken to reasons at least partially beyond the firm’s direct economic or technical interest”. </li></ul><ul><li>- Keith Davis. </li></ul><ul><li>“ By social responsibility, we mean intelligent and objective concern for the welfare of society that restrains individual and corporate behaviour from ultimately destructive activities, no matter how immediately profitable and leads in the direction of positive contribution to human betterment variously as the latter may be defined . </li></ul><ul><li>- Andrews. </li></ul>
  27. 28. <ul><li>Howard R.Bowen. He suggests that business managers are bound to “pursue those policies, to make those decisions or to follow those lines of action which are desirable in terms of the objectives and values of our society”. </li></ul>
  28. 29. <ul><li>1 . RESPONSIBILITY TOWARDS SHARE HOLDER </li></ul><ul><li>Management is responsibility of protecting the interest of the owners of the business owners or share holders </li></ul><ul><li>2. RESOPNSIBILITY TO THE CUSTOMER </li></ul><ul><li>customer satisfaction is the primary aim of any business activity </li></ul><ul><li>3. RESPONSIBILITY TO THE SOCIETY AND TO THE GOVERNMENT </li></ul><ul><li>4. RESOPNSIBILITY TOWARDS INTER BUSINESS </li></ul><ul><li>5. RESPONSIBILITY TOWARDS STATES </li></ul>
  29. 30. Arguments for social involvement of business <ul><li>Business has a great deal of power which, it is reasoned, should be accompanied by an equal amount of responsibility. </li></ul><ul><li>Social involvement discourages additional government regulation and intervention. The result is greater freedom and more flexibility in decision making for business. </li></ul><ul><li>Social involvement creates a favorable public image. Thus, a firm may attract customers, employees and investors. </li></ul><ul><li>Improvement of the social environment benefits both society and business. </li></ul><ul><li>Business has a great deal of power which, it is reasoned, should be accompanied by an equal amount of responsibility. </li></ul>
  30. 31. Arguments against Social Involvement of Business <ul><li>Social involvement could reduce economic efficiency. </li></ul><ul><li>Business people lack the social skill to deal with the problems of society. Their training and experience is with economic matters and their skills may not be pertinent to social problems. </li></ul><ul><li>Social involvement can weaken the international balance of payments. The cost of social programs, the reasoning goes, would have to be added to the price of the product </li></ul><ul><li>In the final analysis, society must pay for the social involvement of business through higher prices. </li></ul>
  31. 32. <ul><li>A retailer was dismayed when a competitor selling the same type of product opened next-door to him, displaying a large sign proclaiming, &quot;Best Deals </li></ul>One Last For The Day
  32. 33. <ul><li>Not long after he was horrified to find yet another competitor move in next-door, on the other side if his store. It's large sign was even more disturbing-, &quot;Lowest Prices&quot;. </li></ul>
  33. 34. <ul><li>After his initial panic, and concern that he would be driven out of business, he looked for a way to turn the situation to his marketing advantage. Finally, an idea came to him. Next day, he proudly unveiled a new and huge sign over his front door. It read, </li></ul>
  34. 35. <ul><li>&quot;Main Entrance!&quot; </li></ul>