Introduction to Management, Nature, Importance, SKills of a Manager, Administration Vs.Management

2. TOPICS COVERED
• Introduction to management
• Nature of management
• Importance of management
• Skills required to be a manager
• Nature of management
• Importance of management
• Administration/management

3. DEFINITIONS OF MANAGEMENT
• Management is an art of getting things done through others-Mary
Parker Follett
• Management is the art of knowing what you want to do &then
seeing that it is done in the best and the cheapest way.
- F.W Taylor

4. DEFINITIONS OF MANAGEMENT
The process of utilization of human
resources and physical resources in such a
manner that organizational objectives are
achieved effectively and efficiently.

5. MANAGEMENT
MANAGEMENT
MANPOWER
MATERIALS
MONEY
MACHINERY
METHODS

6. NATURE OF MANAGEMENT
1. Management is goal oriented.
2. Management is universal.
3. Management is a social process.
4. Management is multidisciplinary.
5. Management is intangible.
6. Management as an activity.
7. Management is science as well as art.
8. Management is a group activity
9. Management is a system of authority
10. Management is a dynamic process.

7. MANAGEMENT SCIENCE/ART???
SCIENCE- An organized or systematized body of knowledge
based on some universally accepted principles.
Management
ART- It is the application of knowledge & skills to achieve the
results.

8. MANAGEMENT SCIENCE/ART
SCIENCE
 Systematized body of
knowledge.
 Universal principles
 Scientific enquiry &
experiments
 Cause &effect
relationship.
 Tests of validity
&predictability
ART
 Practical knowledge
 Personal skill
 Result oriented approach
 Creativity
 Improvement through
continuous practice.

9. Who is Manager???
• A manager is someone who performs the functions of
planning, organizing, staffing, directing and controlling for
the accomplishment of objectives of an undertaking.

10. Level of Management

11. MANAGERIAL SKILLS
In the modern business the job of management has become very
difficult.
Several skills are required to manage successfully a large
organization in a dynamic environment.
These skills are classified in to the following categories:
1. Technical Skills
2. Conceptual Skills
3. Human skills

12. MANAGERIAL SKILLS (Contd..)
1.Technical Skills
Refers to the ability and knowledge in using the equipment, technique
& procedure involved in performing the specific tasks.
2. Human skills
Consist of the ability to work effectively with other people both as
individual and as members of the group.
Human skills are concerned with understanding of people.
3. Conceptual Skills
Consist of the ability to see the whole organization and the
interrelationships between the parts.

13. ROLES OF MANAGER
MANAGERIAL
ROLES
INTER
PERSONAL
ROLE
DECISIONAL ROLE
INFORMATIONAL
ROLE

14. Contd..
1.Interpersonal Roles
a) Figurehead
b) Liaison
c) Leader
2.Informational Role
a) Monitor
b) Disseminator
c) Spokesman
3.Decisional Roles
a) Entrepreneur
b) Disturbance handler
c) Resource allocator
d) Negotiator

15. a)Figurehead : Representing the organization in formal
matters; Serving as a symbol of the organization.
b) Liaison : Interacting with peers and people outside the
organization: developing external links.
a)Monitor : Receiving and collecting information; utilizing
the channels through which information comes.
b)Disseminator : Transmitting information within the organization.
c)Spokesman : Transmitting information to people outside the
organization.
Role
a)Entrepreneur : Introducing change; initiating projects to
improve the organization.
b)Disturbance Handler : Taking charge when the organization
is threatened.
c)Resource Allocator : Deciding where the organization will
expend its efforts and what resources will be expended
d)Negotiator : Involving the organization with organizations.
Manger’s Formal
Authority
Interpersonal
Role
Informational
Role
Decisional
Role
c)Leader :Activities concerned with motivation,
communicating and directing.

16. Functional Aspects of Management
Planning
1
Organizing
2
Controlling
5
Directing
4
Staffing
3
Management
Functions

17. 1.Planning : It is the
Process of deciding in
advance what is to be
done, When and where
It is to be done, how
It is done and by whom.
4.Directing : It deals with
the steps a manager takes
(guiding, supervising,
Motivating, etc.) to get
subordinates and others to
carry out a goal.
2.Organizing : It is the
process of creating structure
of relationships to enable
employees to
carry out management’s
plans and meet its goals.
a)Leadership : Influencing
others to act toward the
attainment of a goal.
3.Staffing : The process by
Which organization meet
their human resource needs
Including forecasting future
requirements, recruiting
and selecting candidate and
orienting new employees.
b)Motivation : Any
influence that brings
out, direct, or
maintains goal
directed behavior.
c)Communication : The
transfer of information
and understanding from
one person to another
through words. Symbols
And gestures.
5.Controlling :
To initiate
corrective steps
at right time.

18. Planning skills Organizing Skills Leading Skills Controlling Skills Decision –
making Skills
Ability to think
ahead
Ability to forecast
future trends.
Ability to state
objectives clearly
and precisely.
Ability to make
choices
that help in
realizing.
predetermined
goals.
Ability to set
performance
standards for
measuring and
Ability to analyse
and describe
various
organizational jobs.
Ability to select,
train, develop and
maintain people in
various jobs.
Ability to define
working
relationships and
authority – flow
properly.
Ability to define
working
relationship and
properly.
Ability to get along
with changing
situations.
Ability to see big
picture.
Ability to
communicate ideas
effectively.
Ability to inspire
people to do better.
Ability to inculcate
a
sense of collectivism
in the employees
and forcing them to
work as a team.
Ability to assess the
situation and
initiate the needed
behavior in an
appropriate
manner.
Ability to keep the
activities on the
desired paths.
Ability to initiate
corrective steps at
the right time.
Ability to ensure
control measure
without hurting the
feelings of
employees in a
negative manner.
Ability make good
and timely
decisions.
Ability to devote on
key, important and
strategic issues.
Ability to make
right choices and
pursue civilities
that enable the
organization to
accomplish its
purpose.
Ability to commit
funds to the best
advantage.

19. IMPORTANCE OF MANAGEMENT
According to PETER DRUCKER management is a dynamic life
giving element in an organization, without it the resources of
production remain mere resources and never become production.
1. Achievement of group goals.
2. Optimum utilization of resources
3. Minimization of cost
4. Survival and growth
5. Generation of employment
6. Development of nation

20. MANAGEMENT &ADMINISTRATION
• Administration: The overall determination of policies
,the setting of major objectives and the laying out of broad
programmes.
• Management: It is the function in industry concerned
with the execution of policy within the limits set up by
administration, the employment of the org. for the
particular objects set by administration &the employment
of the org. for the particular objects set before it.

21. ADMINISTRATION/MANAGEMENT
PTS OF DIFFERENCE ADMINSTRATION MANAGEMENT
1.NATURE
2.TYPE OF
WORK
3.LEVELS OF AUTHORITY
4.INFLUENCE
5.DIRECTION OF HUMAN
EFFORTS
6.MAIN FUNCTIONS
It is determination or
thinking function.
It is concerned with the
determination of major
objectives or policies.
It is mainly a top level
function.
Administrative
decisions are influenced
It is not directly
concerned with the
direction of human
efforts.
Planning and controlling
are the main functions
involved in it .
It is executive or doing
function.
It is concerned with the
implementation of policies.
It is largely a middle and lower
level function.
Managerial decision are
influenced
It is actively concerned with the
direction of human efforts in the
execution of plans.
Directing and organizing main.

22. SCHOOLS OF MGMT. THOUGHT
• The art of management has ancient roots.
• The Egyptian pyramids and the great wall of china indicates that large
projects requiring managerial skills were undertaken thousand of year
ago.
• In the early stages of the development of mgmt as a body of
knowledge ,contribution made by the academicians were few and far
b/w.
• KOONTZ describe the present state of management theory as ‘Jungle’.
• According to Koontz and Weihrich there are 11 approaches of
studying management .
• Way back in 1966 identified not less than eighteen approaches for
studying management .

23. Contd..
• In order to facilitate easy understanding we can indentify
three broad approaches namely
1. Classical theory
2. Neo classical theory
3. Modern theory

24. DIAGRAMATIC REPR..OF SCHOOLS OF
MGMT THOUGHT
MODERN MGMT. THEORY
• Quantitative Approach
•System Approach
•Contingent Approach
•Attributes of Excellence
CLASSICALAPPROACH
SCIENTIFIC MGMT
ADMINISTRATIVE
THEORY
BUREAUCRATIC ORG
BEHAVIOURAL APPROACH/
NEO CLASSICAL THEORY
• H Relation Approach
• Behavioral Science 5Approach
Elton Mayo, etc.
M. C. Gregor,
Maslow, Lewin
Taylor
Fayol
Max Weber
Operation Research Specialists of U. S. A. and U. K.
Organisational System theorists, Ludering, Kenneth etc.
Tom Burns, Stalker, Woodward, Paul Lawrence, Thanpson
Thomas J. Peter, Robert Waterman
[ 3 ]
[ 2 ]
[ 1 ]

25. A. Classical or Traditional Management
Approach
• The Classical approach to management is one of the oldest and most popular,
known as the traditional or universal process. It is based on the assumption
that objective of an organisation may vary from one to another but the
management of all organisations requires similar management process. It has
its roots in the basic concept of division of labour and specialisation.
Elements of The Classical Approach
• The Classical approach to management is one of the oldest and most popular,
known as the traditional or universal process. It is based on the assumption
that objective of an organisation may vary from one to another but the
management of all organizations requires similar management process. It has
its roots in the basic concept of division of labour and specialization.
(1) Interrelated Functions
(2) Guiding principles
(3) Bureaucratic
(4) Reward –Punishment nexus

26. A.CLASSICAL APPROACH
• The term classical means traditionally accepted or long
established. It does not mean that classical views are time bound
that must be dispensed with classical approach emphasizes
organizational efficiency to increase organizational success
Elements
•The Hierarchy
•Specialization
•Scalar chain
•Unity of command
•Departmentalization
•Span of control
•Parity of authority
•Centralization Vs. decentralization
Line and staff
TOP
MIDDLE
LOWER

27. Definitions
• An approach that emphasizes the scientific study of work in order to
improve worker efficiency
Scientific Management knowing exactly what you want your
men to do and seeing that they do it the best and the cheapest
way. - F. W. Taylor
1. SCIENTIFIC MANAGEMENT

28. • Contribution of F. W. Taylor
F. W. Taylor (1856-1915) : Frederick Winslow Taylor is known as the father of
scientific management.
Taylor started his career as an apprentice in a small machine shop in
Philadelphia (USA) in 1875.
In 1878, he joined the Midvale Steel Work Philadelphia as machinist and rose to
the position of Chief Engineer in 1884. Later he joined the Bethlehem Steel
Works.
Throughout his career, Taylor was concerned with the problems of increasing
labor productivity without putting under strain on workers.
He has several experiments which was known as : Scientific Management”.
Therefore, Taylor was called as “Father of Scientific Management.”
Taylor’s idea are found in his two books titled “Scientific Management" and

29. Features of Scientific management
Its is based on four Principles
1. Each task must be scientifically designed so that it can
replace the old.
2. Workers must be scientifically selected and trained so that
they can be more productive on their jobs.
3. Bring the scientifically designed jobs and wokers together
so that there will be a match between them.
4. There must be division of labor and cooperation between
managements and workers,

30. Key Concepts for effective management
1. Scientific study and planning of work
2. Time and motion study
3. Standardization
4. Differential piece rate system
5. Functional foremanship

31. Advantages of Scientific School of Mgmt..
TO THE EMPLOYERS
 Lower cost of production
 Higher efficiency as a result of proper
selection &training
 Establishment of healthy relationship
b/w workers &mgmt
 Increase in the quality of products
 Elimination of wastage
 Better utilization of plant capacity &
various
resources
 Satisfaction of needs of customers by
providing higher quality at lower prices
TO THE WORKERS
 Opportunities for training
&development
 Reduced industrial conflicts
 Equal division of responsibilities
 Better working conditions
 Higher wages &higher standard of
living
 Incentive wages to the workers for
higher production
TO THE COMMUN ITY
Lower cost of production
Less wastage of resources
Industrial peace in the country
Better quality products to the
customers
Higher wages to the workers

32. Scientific study of work
• F.W Taylor advocated work study for the critical assessment of
the efficiency of various operations in the factory .It involves
method study, motion study & time study.
a) Method study :
Help in knowing the best method of doing a job to increase workers
efficiency, it is essential to know :
• What motions are required ?
• What time will be required to perform the required motions.
• According to Gilbreth, “Motion study is the science of eliminating
wastefulness resulting from using unnecessary, ill directed and
inefficient motions. The aim of motion study is to find out and
perpetuate a scheme of best method of work.”

33. b) Time study
• It aims at finding out by observation &observation
&study the minimum time required to perform an
operation in the best possible manner.
• It is the study of the time taken to perform each
particular operation in an industrial task and form the
data thus obtained ,endeavoring to fix the proper time
that the task as a whole should take

34. Time Study includes:
1. Sub division of work
2. Recording of time taken by different employees in
performing the particular work
3. Selection of average worker
4. Recording of time taken by an average worker in
performing the same work under normal conditions
5. Determination of the standard time for the work.

35. Difference b/w motion study and time study
MOTION STUDY
 It relates to watching &
recording the movements of
workers
 Motion study is concerned
with minimization of the
movements of the operators
 The purpose of motion study
is to determine the best way
of doing a job.
 Motion study is conducted
with moving camera
TIME STUDY
 It involves careful
measurement of time
required to do the different
parts of a job.
 Time study is concerned with
increasing the productivity to
labour.
 The purpose of time study is
to determine fair days work
 Time study is conducted with
the help of a stop watch

36. c) Fatigue study
Fatigue is that state of mind of a worker when he feels physical or mental
strain in doing his work. Every worker gets tired doing continuous work for a
particular period and is not able to do the work at full capacity.
Fatigue may lead to:-
1.Rate of labour turnover
2.Accidents
3.Spoilage
4.Absenteeism

37. 1. Exploitative device
2. Depersonalized Work
3. Un psychological
4. Undemocratic
5. Anti-social
6. Unrealistic
Criticism

38. An approach that focuses on the principles that can be used by
the managers to co-ordinate the internal activities of the
organisation. It was given by Henry Fayol. According to him
Management function includes:
1. Planning
2. Organizing
3. Commanding
4. Co-ordination
5. Controlling
2. Administrative School

39. CONTRIBUTION OF HENRY FAYOL
Fayol gave the principles of administrative school of
management. Trained as a mining engineer ,he made
his mark as an industrialist with the French coal and
iron company of Commentary.
He joined the firm as a junior executive in 1860 .
When the company got bankrupt he took over
&transformed into a financially strong co.
He wrote a monograph titled as “General and
Industrial management "published in 1916.

40. Contd…
It is in four parts of which deals with the classification of
business activities as
1. Technical activities - Production, manufacture, adaption
2. Commercial activities -Buying, selling and exchange
3. Financial activities -Raising and optimum use of capital
4. Accounting activities- Recording, costing and statistics
5. Security activities - Protection of persons and property.
6. Managerial activities - Planning, Organizing, Command
,Coordination and Control.

41. Functions of Management
1. Planning and forecasting
2. Organizing
3. Commanding-maintaining activity among personnel
4. Co-coordinating-unifying and harmonizing all activities
&efforts
5. Controlling

42. 14 Principles
1. Division of work
2. Authority and Responsibility
3. Discipline
4. Unity of command
5. Unity of Direction
6. Subordination of individual interest to the interest to the interest of the
organization
7. Remuneration
8. Scalar chain
9. Order
10. Equity
11. Centralization
12. Stability of tenure of personnel

43. Principles contd..
13. Initiative
14.E spirit-de-Corps
Besides these qualities there are certain skills that should be
possessed by the managers:
1. Physical qualities-
2. Mental ability
3. Moral Education
4. General Education
5. Special knowledge
6. Experience

44. Criticism
1. Lack of empirical evidence
2. Neglect of the human factor
3. False assumptions
4. Pro management bias

45. 3. Bureaucratic Organization
 One of the most important pillars of classical approach is the
bureaucratic model of org.
 This model has been developed has been developed by Max
Weber.
 Weber offered this model as a framework to which all the
organizations should aspire ,”the one best way” of doing things.
 This particular form of organisation is well known and very
popular in government and military organizations.
 Bureaucracy is a system of organisation and mgmt. in which roles
,tasks, and relationships among people and positions are clearly
defined ,carefully prescribed ,and controlled in accordance with
formal authority.

46. Advantages
1. Division of labor
2. Hierarchy of authority
3. Rigidity in compliance with the procedures & framework
of rules
4. Impersonality
5. Technical competence
1. Specialization
2. Rationality
3. Predictability
4. Democracy
Characteristics of Bureaucratic org.

47. B. NEO CLASSICAL APPROACH
BEHAVIOURAL APPROACH
HUMAN RELATIONS
APPROACH
BEHAVIOURAL
SCIENCE
APPROACH
DEFINATION- A movement in management thinking and practice that
emphasized satisfaction of employees basic needs as the key to
increased worker productivity.
This theory gained popularity after the famous studies of human
behavior in work situations conducted at the Western electric
company from 1924 to 1933.These studies are known as
“Hawthorne studies”

48. 1. The Howthorne researchers began with illumination experiments
with various groups of workers .
2. This experiment involved prolonged observation of two groups of
employees making telephone relays.
3. The purpose was to determine the effects of different levels of
illumination on workers productivity.
4. The intensity of the light under which one group was
systematically varied while the light was held constant for the
second group .
1. “Hawthorne Studies”

49. Contd…
5.The productivity of the test group increased each time the
intensity of the light increased
6.The researchers felt that something besides the light was
influencing the workers performance.
7. In a new set of experiment a small group of workers were
placed in a separate room and a no. of things were changed
,wages were increased ,rest periods of varying lengths
were introduced ,the workday ,workweek were shortened .

50. 1. Philosophy
2. Scientific validity
3. Short-sighted
4. Over concern with happiness
5. Anti-individualist
6. This approach suggests that jobs should be designed to meet
higher level needs by allowing workers to use their full
potential.
Criticism

51. C) Modern Management Approach
It tries to increase decision-effectiveness through the use of
sophisticated mathematical models and statistical methods. This
approach can be studied and analyzed in the following four
phases namely
 Quantitative approach
 System approach
 Contingency approach
 Excellence approach

52. 1. Quantitative approach
1. This approach also known as management science
approach
2. has been developed during 1950.
3. It is based on the approach of the scientific management.
4. It offers systematic and scientific analysis and the solution
to the problems faced by the managers
5. The quantitative decision making tolls are known as
“operation research” like linear programming ,simulation
,quening theory and game theory etc.

53. advantages
1. The consistent use of logic and reasoning for solving problems may help in
reducing personal biasness and intuition of manager.
2. Easy to define problems identify the variables impacting the same and pinpoint
ways of solving them
3. Promotes disciplined thinking
4. Eliminates subjective element in decision making.
Disadvantages
1. This approach has very limited application that too only in respect of
problem solving and decision making.
2. It is only concerned with decisions not concerned with the identification of the
variables, collection of data etc.
3. Inputs for decision making are not readily available
4. Decision making depends on the data that is being fed if the data is not
accurate it will not solve any purpose.

54. 2.Systems approach
• It tries to solve problems by diagnosing them within a framework of inputs,
transformation processes ,outputs and feedback. Basically this approach aims
at identifying the nature of relationship among various Components of the
organisation which is considered as larger system.
• SYSTEM-It may be defined as a set of inter related and interacting
components assembled in a particular sequence as to produce some results.
These components may also be viewed as subsystems of larger systems. It is
only through these subsystems that the larger system operates ,thus larger
system can be viewed as a whole entity or totality.
• TYPES OF SYSTEM: are of 4 types:
• Physical system- eg. Solar system, river, season etc.
• Mechanical system-based on technology
• Biological system-growth ,maturity, decline
• Social system- have been developed by human being to facilitate co-
operative working and to overcome the problem of isolation.
•

55. Merits & demerits
MERITS
• Provides sound basis for
understanding org.& their
problem
• Facilitates both he process
of analysis &synthesis
&differentiation by
relating various
subsystem.
• It integrated various
mgmt. approach in a
meaningful way classical
& behavioral app. are
influenced by the systems
approach.
DEMERITS
• It has only an intellectual
approach &it cannot be
applied successfully to
practical situation.
• It is only a constructive way
of thinking rather than
providing solution to a
problem.
• It neither offers a tool any
technique for analysis nor it
recognises the differences
which exists between the
systems.

56. 3.Contingency approach
• It argues that appropriate managerial action depends on the
particular parameters of the situation.
• This approach basically is systematic attempt to determine
package of management technique ,approaches and
practices which are appropriate in the specific situation.
Thus managers instead of applying principles and practices
of management uniformly to every situation irrespective of
the nature of situation ,they should study, analyse and
diagnose the situation in terms of its variables and other
characteristics, understand situational requirements and do
effectively.

57. Elements of Contingency theory
• Managerial actions are contingent on certain actions
outside the system or subsystem as the case may be.
• Organizational actions should be base on the behavior of
actions outside the systems so that the org. gets smoothly
integrated with the environment
• Managerial actions must be appropriate to the situation.
.

58. Contingency Approach contd..
Merits
1. It focuses on the specific factors that influence the
appropriateness of one managerial strategy over other.
2. It highlights the importance to managers of developing skills
in situational analysis
3. More pragmatic and action oriented
4. Spells out the relationship of org. to its environment clearly.

59. Demerits
1. Paucity of literature
2. Complex
3. Defies empirical testing
4. Reactive not proactive
5. Incomplete