2. Management Concept
What is an organization?
Group of people working together in a
systematic manner to achieve a set of
goals
Understanding “Management“ from
resource- based perspective:
Human
Financial
Physical
Information
2 vikas vadakara
3. 1] Human: managerial talent and labour
2] Financial: capital used to finance
both ongoing and long term operations.
3] Physical: raw materials, office,
production facilities equipment
4] Information: Usable data needed to
make effective decisions
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5. HOW DO MANAGERS COMBINE AND COORDINATE
THE VARIOUS KINDS OF RESOURCES?
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6. Management in Organizations
Mangers engage in above activities to combine 4 resources efficiently and effectively and to
work toward achieving goals of the organization
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7. What is Management?
A set of activities (including planning and
decision making, organizing, leading, and
controlling) directed at an organization’s
resources (human, financial, physical, and
informational) with the aim of achieving
organizational goals in an efficient and effective
manner.
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8. Efficient Vs Effective
Efficient Effective
1. Doing the things right 1. Doing the right things
2. Focuses on achieving the “end”
2. Focuses on the process or “means”
goal.
of doing things
3. Making right decisions and
3. Using resources wisely in a cost successfully implementing them
effective way and Getting most 4. Effectiveness involves thinking long
output from least amount of inputs term
4. Efficiency restricted to the present 5. Effectiveness is about gaining
state success
5. Efficiency will look at avoiding 6. Effectiveness encourages
mistakes or errors innovation as it demands people to
think, the different ways they can
6. Since efficiency is about doing meet the desired goal.
things right, it demands
documentation and repetition of
the same steps. Doing the same
thing again and again in the same
manner will certainly discourage
innovation
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9. Who is a Manager?
One who plans, makes decisions, organizes, leads
and controls human, financial, physical and
information resources.
Helping others to do their work
Responsible for getting things done
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10. Other definitions…
“Management is the accomplishment of results
through the efforts of other people:
Lawrence A Appley
“Management is the art of getting things done
through and with the people in formally organized
groups”
Koontz
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11. Nature of Management
Management is universal
Basic principles of management can be applied in all managerial
situations regardless of size, nature and location of the organization.
Universality of managerial tasks and principles also implies that
managerial skills can be transferrable and managers can be trained
and developed.
Multidisciplinary
Because it includes knowledge, information from various disciplines like
economics, statistics, psychology, sociology, operations research etc.
Management integrates ideas and concepts taken from these
disciplines and presents newer concepts which can be put in to
practice for managing organizations.
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12. Management is dynamic
Management has framed certain principles which are flexible in nature
and change with the changes in the environment in which the
organization exists.
According to Peter Drucker; “Managers do not wait for future, they
make the future”
Relative, not absolute principles
Management principles should be applied according to the need of the
organization. A particular management principle has different
strengths in different conditions
Is a system of authority
A manager is supposed to get things done, rather than doing things
himself by using authority. Authority means right to give orders and
power to obtain objective from subordinates. It’s a rule making and
rule entering body in an organization.
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14. Science
Science is a systematic body of knowledge that is
developed through observation and experimentation
and can be verified
Scientific principles establish a cause and effect
relationship between various factors
Mere knowledge or collection of facts does not
qualify as science. It is only when the gathered
knowledge is verified in different geographies and
over a period of time it becomes science
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15. Art
Art is a systematic application of a skill or knowledge
for the accomplishment of results
It represents methods or ways of doing specific
things to effect change and accomplish results
through deliberate efforts.
Science is concerned with knowing “why” and art is
with the “how” of application
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16. Management as an Art
Personal Skill: Manager has to use his skill,
knowledge to solve many complimented problems
on day to day basis
Practical Knowledge: Management does not merely
mean systematic presentation of principles can be
applied in practical to get better results
Result Oriented: Management is concerned with
accomplishment of objectives, it is result oriented
and for that it leads, directs others towards attaining
desired goals.
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17. Regular Practice: Effectively and effectiveness can
be attained through regular practice. Like an artist
manager also practices regularly so that he can work
better and can get output in an effective and efficient
manner
Creativity: Any art work can be considered as a
creative work. Like an art, management is one of the
most creative arts as it deals with getting things done
through others by motivating their efforts in an
innovative manner
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18. Management as a Science
Systematic body of knowledge: Management is an
organized body of knowledge built up by
management practitioners, philosophers and
thinkers by conducting extensive research and
verification of the same over the years. Principles of
management make use of scientific methods. Taylor
applied scientific techniques like time and motion
study, work study etc
Cause and effect relationship: In management also
cause and effect relationship is studied. Poor
planning cause low productivity, lack of employee
benefits, low salary cause high attrition, poor
marketing cause less sales etc
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19. Continuous observation: Principles of management
have been developed on the basis of continued
observations by many theorists and practitioners
over a period of years.
Validity and predictability: Scientific principles
represent basic truth and can be applied at all times
to all situations. In management also there are
certain fundamental principles which can be
universally applied and repeatedly tested to verify its
validity and predictability, reliability
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20. Management as pure science suffers from
following limitations
Principles of management don’t always have a
universal application. Unity of Command, which
means reporting to one superior. It does not mean
that he should not report to more than one boss, if
superiors have better understanding, know how to
balance between the advantages and disadvantages
of multiple commands, an employee can have more
than one superior.
Human beings behavior can not be predicted
Management lack certainty about the result.
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21. Conclusion
management is a mixture of art and science. As an
art it demands certain skills from its practitioner and
as a science it provides its practitioner with a
systematic body of knowledge comprising certain
principles laws etc, which have been tested and
verified.
Management is a crude science because its
application varies from person to person and from
one situation to another. We can conclude that
management is a behavioural science.
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22. Is administration and management one
and the same?
No universally accepted view on this point.
American school of thought says
Administrators think- Top level function
Managers do- Lower level function
British School of Thought
Management is wider concept than administration
Administration is a lower level function of day to day
activities
Management is rule making and rule enforcing activity
There is really no clear cut distinction between
management and administration
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23. Management as a profession
Profession means an occupation backed by
specialized knowledge, expertise and training.
Over the past few years management has grown in
to a distinct discipline backed by systematic body of
knowledge. Number of process, principles,
techniques and tools have been developed and they
are important through formalized education and
training
Management also focuses on ethical behaviour and
developed certain code of conduct to regulate
performance of management professional.
Like a Doctor, Managers [consultants] do charge
fees on services rendered.
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24. Purpose of Management
To achieve productivity
Management is an active force which acquires uses, organizes factors
of production, (men, material, machine, money) and coordinates
different interdependent activities in an organization to achieve
organizational goals effectively and efficiently. Without management
a country’s resources main as resources only and don’t result in
production.
To adapt to the changes in the business environment
As an organization exists in a dynamic environment, management has
to adapt the changes which happen in different sectors like
technology, regulatory policies, economic policies, politics,
demography etc and leads the organization towards excellence.
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25. To compete, survive and grow
Management guides the organization to compete amongst the rivals,
survive the threats in the external environment and achieve growth
and prospects through continuous learning and innovation
To meet the expectations of the stakeholders
Management has to meet expectation of various stakeholders like
adhering to rules and regulations of the Government, maximizing
returns to the investors, providing good working conditions and
benefits to the employees, maintaining good relationship with
clients/suppliers and providing quality goods and services to
customers, meet responsibilities towards society.
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27. These solid lines describe basic logic between activities
theoretically.
Practically, dotted arrows show that most managers
engage in more than one activity at a time and often
move back and forth between the activities in
unpredictable ways. Manager is likely to be engaged in
different activities simultaneously.
Functions of management don’t usually occur in a tidy,
step-by-step fashion. Managers are constantly engaged
in many different activities. A manager may be helping a
colleague develop goals for the next quarter-planning,
discussing a proposed company restructuring-
organizing, praising a subordinate for outstanding
performance-leading, and checkingvadakara month’s sales
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on last
information- controlling.
28. • Defining goals, establishing
Planning & strategy, developing plans to
Decision
making
coordinate activities
• Determining what needs to be done,
how it will be done and who is to do
Organizing it
• Monitoring, leading and any other
actions involved in dealing with
Leading people
• Monitoring activities to ensure that
Controlling
they are accomplished as planned
Lead to achieving organization’s stated goals
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29. Acronym
Created by Gulick and Urwick
based on Henry Fayol’s 14 principles of
management
29 vikas vadakara
30. Planning: process of establishing goals and a
suitable course of action for achieving those goals
Organizing: process of arranging resources
Staffing: selecting and training individuals for
specific job functions and charging them with
associated responsibilities
Directing: process of influencing and motivating
employees to perform essential tasks in an
organization
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31. Coordinating: integration of activities of the
separate parts of an organization to accomplish
organizational goals
Reporting: process of executives keeping
superiors and subordinates informed about what
is going on
Budgeting: formal quantitative statement of
resources allocated for planned activities over
stipulated periods of time
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33. Managing at Different Levels of the organization:
Top Managers
Small group of executives who manage the overall
organization, the strategic level.
Middle Managers
A large group that implement the strategies developed
at the top.
First-Line Managers
Supervise and coordinate the activities of operating
employees.
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34. Types of managers
Based on
Based on Scope Based on work
Management Level
of Activity activity
Top Managers
Functional Line Managers
Middle Managers
General Staff Managers
First Line
Managers
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35. Manager/Non Manager
Non managers receive orders, works
follow decisions taken by managers
Directly contribute to the production
Report to first line managers
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37. Managerial Skills
Conceptual Skills
Mental ability to analyze and diagnose complex
situations
Allow Managers to see how things fit
Human Skills
Ability to work with, understand, mentor and motivate
others
Both individually and as a group
Many managers fail in this
Technical Skills
Ability to apply specialized knowledge or expertise
37 vikas vadakara
38. Key Characteristics to become a successful
Manager
Education
Experience
Efficient time management
Empathy
Continuous learning
Communication ability
Technical Expertise
Goal Oriented
Risk Taking
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39. Evolution of Management Thought
Introduction
First known management ideas were recorded in
5000 BC when Sumerian Traders developed written
records for government
The Egyptians used management functions of
planning, organizing, and controlling when they
constructed the pyramids.
Roman empire and their military hierarchy, public
administrative systems.
39 vikas vadakara
41. Early writings on Management
Sun Tzu’s The Art of War
A book on military strategy by Chinese General Sun
Tzu in 6th Century BC.
Highlights
By being aware of utilizing organization’s strengths
and utilizing them to exploit weaknesses of the
enemy- success can be achieved
Emphasizes importance of discipline to get things
done through coordinated group effort
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42. Chanakya’s Arthashastra
Developed around 3rd Century BC
Written by Chanakya
Book deals with the governance of kingdom by a
king or a leader
Highlights
Lays down principles that should be taken in to
consideration by a leader while making policies of
governance and people management
Importance of creating departments, development of
detailed job profiles and qualifications of
administrators who had to manage these
departments as directors.
42 vikas vadakara
43. Evolution of Management Thought
Evolution of
management Thought
Early Management
Modern Approaches
Approaches
Quantitative Approach
Neo Classical System Approach
Approaches Contingency Approach
Early Classical
Approaches
Scientific Management Human Relation Approach
Administrative Mgt Behavioural Science
Bureaucratic Approach
Organization
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44. Classical Approach
Scientific Management
Frederick Winslow Taylor(1856-
1915)
Graduated in science and
engineering through evening study
1878- joined as worker at
Midvale steel works.
1898- joined Bethlehem steel
company as Engineer
Acknowledged as Father of
scientific Management
44 vikas vadakara
46. Studied the work processes and
introduced
One best way to do the job/work study: analyzing
different operations performed in a work,
eliminating unnecessary operations and finding
one best way to the job
Time study, motion study and fatigue study
Time study: to determine the time required for
each movement
Motion study: study of movements of workers and
machines to ensure performance of only
necessary activities
Fatigue study: shows when employees are getting
tired and when management should provide rest
periods to increase efficiency, productivity of
workers
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47. Differential wages linked to productivity
Careful selection and training of workers
Division of labour and distribution of work between
management and workers
Harmonious relationships between management and
workers
Overall objective- efficiency of the labour
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48. Limitations of scientific management
It ignored human touch in an organization and
viewed workers as machines
Monotonous and boring job
Exploitation device
Harsh and difficult to perform
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49. Administration Management
Scientific management deals with improving
efficiency and productivity of individual employees
Administrative management focuses on managing
whole organization.
Henry Fayol [1841-1925] is the main contributor to
this approach
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50. Henry Fayol [1841-1925]
A French Industrialist
Regarded as “ Father
of Modern
Management Theory”
50 vikas vadakara
51. Suggested conceptual framework for studying
management by dividing industrial activities into 6
groups
Technical
Financial
Security
Accounting
Managerial
Commercial
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52. Identified 5 managerial functions to carry out these
activities; planning, organizing, commanding,
coordinating and controlling.
Fayol was the 1st management thinker to recognize
need for management teaching
Believed that management was an activity common
for all organizations including government agencies
Published a famous book named “General And
Industrial Management”
In his book, he presented 14 principles of
management for running an organization efficiently.
52 vikas vadakara
53. Fayol’s 14 principles of management
1. Division of Work:
division of total task lightens the work,
specialization[one person does only one thing]
increases the efficiency and output.
2. Parity between Authority and responsibility:
managers should balance between both. They should
have right to give orders and should own
accountability for the task
3. Discipline:
Respect of authority and following rules. Clarity of
rules, built in rewards, punishments help to maintain
discipline
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54. 4. Unity of Command:
One should receive orders from only one superior
5. Unity of Direction:
there should be single plan and head for each
group of activity with same objective/ direction
6. Subordination of Individual interests to general
interests
Individuals interests should be harmonious with
organization’s interests. Integrate the both
7. Fair remuneration to workers:
Remuneration should be based on cost of living,
business condition. Additional works should get
54 vikas vadakara
incentives. This increases morale and efficiency
55. 8. Centralization:
Major decisions should be taken by Top Management,
operations level decision making power can be given
to lower level.
9. Scalar Chain:
Chain of superiors from highest to lowest ranks.
Authority should run from top to bottom in proper
channel
10. Order:
there should be a place for everything and every
thing should be in its place
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56. 11. Equity:
managers should be kind and fair to their workers
12. Stability of tenure of personnel:
Try to minimize employees turnover, build long
term commitment, a sense of belongingness
among their subordinates. Provide job security
13. Initiative:
Managers should encourage their subordinates to
take initiatives.
14. Esprit de corps:[ team spirit]
Management should create team spirit among
employees for harmony and unity
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57. Bureaucratic Management
Max Weber (1864-
1920)
German sociologist
Known as Father of
Modern Sociology
57 vikas vadakara
58. Focuses on development and implementation of
rational guidelines like
organization’s structure,
hierarchy of authority,
rules and procedures,
division of roles and responsibilities
for managing work in an organization.
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60. Neo Classical Approaches
Behavioural Science Approach
Unlike the classical management perspective, the
behavioral management perspective placed
more emphasis on individual attitudes and
behaviors and on group processes
recognized the importance of behavioral
processes in the work place.
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61. Elton Mayo[1880-1949] and his associates
conducted research [Hawthorne studies], a series of
experiments that focused on behaviour in the
workplace [ Hawthorne plant of Western Electric
Company near Chicago.]
First Study/Phase: Illumination Study [1924]:
Study involved manipulating illumination for one
group of workers and comparing their productivity
with another group.
But both the groups produced the same output
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62. 11 Phase- Relay Assembly Test[1925]
The experimental group of employees were given
Freedom to fix work schedules
Six breaks of five minutes per shift were allowed
Work day and week were shortened
Work was simplified
Financial incentives for increased production
Friendly supervision
These kinds of special attention and treatment enhanced
productivity ( i.e. Hawthorne Effect)
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63. 111 Phase: [1928] Interviewing Program
Interviewed 21000 employees to find the reasons for
increased productivity
Informal work groups and their productivity norms
were recognized as the main causes for productivity
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64. 1V Phase: Bank Wiring Observation Room
Experiment[1929]
Team work and performance based incentives
introduced
Efficient workers did not pressure the others to work
more for benefiting by incentive scheme.
They formed group norms to regulate the
productivity.
Over produced named: rate busters
Under produced named: chiselers
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65. The group norms were
Don’t turn out too much work
Don’t turn out too little work
Don’t tell supervisors anything that would harm a
colleague
Don’t be too officious-rather follow group norms
Implications of Hawthorne studies
Suggested managing through good human relations
Involves motivating people, team work, group
influence etc
Consider the human factor as theyvadakarasocial beings
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are
66. Human Relation Approach
Proposed that workers respond primarily to the social
context of the workplace, including social conditioning,
group norms, and interpersonal dynamics.
Human behavior in organizations is complex
There are two theories on how employees behave;
These theories are developed by Douglas
McGregor
Theory X and Theory Y
66 vikas vadakara
67. Theory X
Here manager thinks that employees behave like this,
they are negative, and scientific management can be
applied
Employees dislike
work.
Employees are
irresponsible.
Employees lack
ambition.
Employees resist
change.
67 vikas vadakara
68. Theory Y
Here manager thinks that employees behave like this,
they are positive, and human relations should can be
improved to get more productivity
Employees are willing to work.
Employees are self directed.
They accept responsibility.
Employees are creative.
They are self-controlled.
Douglas suggests that managers should follow Theory Y
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69. Limitations of Neo Classical Approaches
Focused more on group behaviour
Human behaviour is complex in nature, so can’t
predict the results
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70. Modern Approaches
Quantitative Approach or Management Science
Approach or Operations Research Approach
During World War II, military people took some
mathematical approaches to deploy its resources
efficiently and effectively
After war, Companies like DuPont, General Electric
began to use some techniques for deploying
employees, choosing plant location, planning
warehouse etc.
Concerned with applying quantitative techniques to
management
70 vikas vadakara
71. Features
Organizational efficiency depends upon quality of
managerial decisions
A problem can be expressed in the form of a
quantitative/ mathematical model containing
mathematical symbol and relationships
Different variables in management can be quantified,
expressed in the form of an equation.
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72. Contributions
Provided precise tools for decision making in areas
like production, finance, costing, transportation and
storage
It has been widely used in planning and control
Limitations
Fails wherever human element is involved
Most decisions involves human judgment, Q A can
provide only data for such decision making
Q. A can suggest best possible alternatives, hence
quantitative techniques can be valuable
supplements
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73. Systems Approach
Developed during early 1960s
Contributors: Kenneth Boulding, Johnson and
Bernard etc
System: An interrelated set of elements functioning
as a whole
Organizations are viewed as a system
Basic types of system:
Open System: organization that interacts with its
environment
Closed System: that doesn’t interact with its
environment
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75. Inputs: human, financial, materials, information
resources from its environment
Through technological and managerial processes
inputs are transferred into outputs
Outputs to environment: products, services
Environment reacts to these outputs and provides
feedback to the system
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76. Sub systems
Approach also focuses on sub systems: systems
within a broader system
Change in one subsystem can affect other
subsystem
E.g.: if purchase department does not acquire right
quality of inputs [ raw material], production
department will not be able to do its job efficiently
Synergy suggests that organizational units or sub
units may become more successful working together
than working alone.
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77. Example for synergy
: Walt Disney Company’s movies, theme parks,
television programs, other licensed programs all
benefit one another
Children who enjoy Walt Disney movie like Mickey
Mouse, want to go to Disney World, see the movie
there, buy Mickey Mouse toys, buy theme printed
lunchbox, cloths etc, and film music generates
additional revenue.
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78. Entropy
Is a normal process that leads to system decline
When an organization does not monitor feedback
from its environment and make appropriate
adjustments, it may fail
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79. Implications
As per systems approach management should
continuously re-energize the organization to avoid
entropy
Coordination of the organization’s parts is essential
for proper functioning of the entire organization.
Decisions and actions taken in one area of the
organization will have an effect in other areas of the
organization.
Organizations are not self-contained and, therefore,
must adapt to changes in their external environment
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80. Contingency Approach/Situational
Approach
Classical, neo classical and quantitative approaches
considered universal perspectives, because they
tried to indentify the “one best way” to manage
organizations.
Contingency Approach suggests there is no one best
way of doing things under all conditions
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81. Features
Stresses that there is no best way of doing a thing.
Conditions of contingency/situation will determine
which technique would be most suitable
Managers should prepare objectives, policies,
procedures, rules and regulations according to
situation of business
Success in management depends upon the ability to
cope with environmental demands
Managers should sharpen their diagnostic skills to
anticipate and comprehend environment changes
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82. Limitations
This approach lacks theoretical base
Manager is required to think through all possible
alternatives, as there is no clear cut principles to act
upon.
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83. Quality And Performance Excellence
In a progressive organization management and
employees are quality conscious
Through continuous improvement they bring
performance excellence in their work place
Excellence Model
Though there are many excellence models,
European Foundation For Quality Management
model is very famous
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84. EFQM Model
Was founded in 1988
Started with 14 European countries, now comprises
with over 600 companies from most Western
European countries
Involves nine criteria for excellence; first five are
enablers means one should perform them first, rest
four are results of achieving excellence
84 vikas vadakara
85. EFQM Model
People People
Management
Satisfaction
Leadershi Policies , Customer Business
Processes Satisfaction
p Strategies Results
Impact on
Resources Society
85 vikas vadakara
86. Learning Organization
Means an organization that has developed
continuous capacity to adapt and change
Features:
Systematic thinking
Developing personal mastery
Building share vision
Team learning/ continuous improvement
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87. Global Awareness
Awareness of current happenings- national and
international updates
Technological challenges
87 vikas vadakara
88. 21st Century Executives challenges
Global strategies: diverse cultural, economies,
different regulations, demography
Technological developments
Inspiring leaders
Role model of ethical behaviour
Win -Win Approach: seeking mutual benefit
Work life balance
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89. Social Responsibility of Managers
Organization is a part of society
Relationship with the community or society in which
organizations are exist and work
Decisions taken may affect society in different ways
Show the concern towards society
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90. Economic responsibilities: produce goods and
services required and helpful to the society
Legal Responsibilities: follow rules and regulations,
laws
Environmental Responsibilities: protect environment
and preserve ecological balance
Ethical Responsibilities: e.g. fair and unbiased
treatment to workers
Discretionary Responsibilities: contribution to
society by adopting villages to develop, donate
books, computers to schools, free medical campaign
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