Unit I notes Topic cover on Management Thought, skill of manager required in organisation

1. Unit-I
Genesis of Management Thought & Conceptualization:
Understanding of Management Concepts,
Evolution of Management Thought,
Systems and Contingency Approach for understanding organizations,
Managerial Processes, Functions,
Skills & roles of a Manager in an organization; Management by
Objectives (MBO).
MANAGEMENT PRACTICES AND ORGANISATIONAL
BEHAVIOR
UNIT-I
Dr. Sagar Bhalekar
Asst. Prof. MBA
ICEEM

2. Meaning of Management
Management is understood in different ways by different people.
In the words of Mary Parker management is “the art of getting things done through
people”. This definition throws light on the fact that managers achieve organizational
goals by enabling others to perform rather than performing the tasks themselves.
definition given by James A.F. Stoner covers all the important facets of management.
According to him: “Management is the process of planning, organizing, leading and
controlling the efforts of organization members and of using all other
organizational resources to achieve stated organizational goals”.
Management Thought & Conceptualization:
There is a long history behind the evolution of management thought. Management
is considered as the significant feature of economic life of mankind throughout ages.
Management thought is regarded as an evolutionary concept.
It has developed along with it and in line with social, cultural, economic and
scientific institutions. Management thought has its origin in ancient times. It is
developed along with other socio economic development.

3. Scope of Management
The scope of management outlines the management steps that a company requires to control work
processes, complete projects and deliver products or services. The management steps can include
planning and carrying out the project tasks, goals and deliverables. It also usually covers assigning
deadlines, milestones and project team members.
1. Financial management
Financial management is a top priority for companies as the effective and proper managing of
finances enables them to stay in business and remain competitive. It is necessary for companies to
plan, organise, direct and control their financial activities to increase profit and reduce wastage of
resources. By applying management principles to their financial resources, companies can keep
track of how they procure revenues and how they utilise them.
They can make informed decisions for making investments, estimating capital requirements,
financing projects and deciding on share dividend policies. Additionally, they can prepare and
examine financial statements, expand the business and negotiate with external stakeholders.
Financial management also allows businesses to remain compliant with regulations, maintain
records and plan ahead.
2. Marketing management
Marketing management usually covers the different marketing activities undertaken by the
company's marketing department. These may include identifying consumer trends and creating
appropriate business solutions to respond to them. Implementing marketing plans, directing their
implementation and controlling the work activities are also usually part of marketing management.
The different functions of marketing management typically include market research, financing, risk-
taking, campaign planning, customer outreach, loyalty programmes, lead generation and customer
relationship management.

4. 3. Personnel management
Personnel management is about managing the personnel or staff in an organisation and
maintaining a positive and productive business environment. It includes establishing effective
communication with the organisation's personnel, publishing company policies, implementing
health and safety practices, responding to grievances and taking disciplinary action when
necessary.
Personnel management also involves determining the compensation and benefits packages that
the employees can receive from the organisation. The three main types of personnel
management are strategic management, tactical management and operational management.
Strategic personnel management includes recruiting qualified personnel to meet the
organisation's staffing needs, training new recruits, assigning departments and work, providing
work tools and resources and determining compensation. Tactical personnel management
involves shifting personnel to different departments when necessary, determining work
schedules and monitoring work performances. In operational personnel management, the focus
is usually on ensuring employee welfare and salary payments.
4. Production management
Production management is the application of management principles to the different production
activities in a company's production department. It usually involves handling the entire
manufacturing process and planning, organising, overseeing and monitoring the production of
goods and services. In production management, the production manager is responsible for
procuring raw materials, hiring and assigning labour for different work activities, maintaining
equipment and creating production budgets. They also supervise work performance, oversee
research and development, ensure quality control and monitor delivery and storage of finished
products.
The main types of production management are job production, batch production and mass

5. 5. Office management
Office management concerns the planning, coordinating and controlling the different work
activities in an office environment. The aim of office management is to ensure the smooth and
efficient functioning of all office departments to get the necessary work done and achieve the
organisation's work targets and business goals.
The primary functions of office management are planning projects, hiring qualified employees,
organising and assigning work tasks, directing and guiding project work and monitoring and
controlling the work processes.
When planning projects, the office manager considers the organisation's goals and objectives
and creates plans to meet these. This can include determining which projects to undertake,
their completion time frames and the expected work standards. It also usually covers creating
project budgets, listing the necessary materials and resources and adjusting the project plans
to suit business requirements. The organising stage covers selecting the right employees for
the project, delegating work responsibilities, creating work schedules and procuring materials.
The office manager is also typically responsible for leading the projects, reviewing work
performances and ensuring quality control.

6. The Concept of Evolution of Management Thought
To understand the entire concept of evolution of the management thought, the
topic is divided into 4 major stages, which are as follows:
 Pre-scientific management period
 Classical theory
 Neo-classical theory ( or behavior approach)
 Bureaucratic Model of Max Weber
1.Pre-Scientific Management Period
As the industrial revolution occurred in the 18th century, there was a huge impact on
management.
The scenario changed the method of raising capitals, organizing labor, and goods’
production for the individuals and businesses.
Entrepreneurs then had access to production factors like land, labor, and capital. The final
step was only to make some effort to combine these factors to achieve the target
successfully.
After the industrial revolution, the newer dimension taken by management is because of
the involvement of certain notable personalities who introduced some effective ideas and
approaches for giving management an acceptable and precise direction. Here is a brief on
some of the personalities and their theories:

7. Professor Charles Babbage of United Kingdom (1729 to 1871)
Prof. Babbage was a renowned Mathematics professor at Cambridge University.
He discovered that manufacturers rely on guessing and suggesting and advised them for
utilizing science and mathematics to be more productive and accurate.
Robert Owens of United Kingdom (1771 to 1858)
Sir Robert is often regarded as personnel management’s father as his approach focuses on
employee welfare.
He also introduced cooperation and trade unions. He mainly believed that employee welfare
might determine the performance to a larger extent.
2.The Classical Theory
Robert Owens, Charles Babbage, and other prominent personalities are regarded as
management’s pioneers.
However, their contribution to the evolution of management is lower.
Further, by the last decade of the 19th century, the science of management began, and with it,
some professionals like H. L. Grant, F. W. Taylor, Emerson, and others entered for the
establishment of scientific management.

8. Further, during the classical period, management thought focused on standardization,
job content, labor division, and scientific approaches for the organization.
It also related closely to the industrial revolution and the rise of large-scale enterprises.
3.The Neo-Classical Theory
This duration of the evolution of management thought is a better version of classical theory.
It is a modified version of classical theory with several improvements.
The classical theory focused mainly on the areas of job including physical resources and
their management, but Neoclassical theory focuses on employee relationships in the work
ecosystem.
4.The Bureaucratic Model
Max Weber, a German sociologist, proposed the bureaucratic model.
This includes a system of labour division, rules, authority hierarchy, and employees’ placement
based on their technical capabilities.
Bureaucracy is an organizational structure characterized by many laws, standardized procedures,
procedures and requirements, number of desks, the meticulous division of labour and
responsibility, clear hierarchies and professional interactions between employees that are almost
impersonal."- Max Weber.

9. Henri Fayol's 14 Principles of Management
Henry Fayol, also known as the Father of Modern Management Theory, gave a new perception on
the concept of management. He introduced a general theory that can be applied to all levels of
management and every department. He envisioned maximising managerial efficiency. Today,
Fayol’s theory is practised by the management to organise and regulate the internal activities of an
organisation.
1. Division of Work
Henri believed that segregating work in the workforce amongst the workers will enhance the
quality of the product. Similarly, he also concluded that the division of work improves the
productivity, efficiency, accuracy and speed of the workers. This principle is appropriate for both
the managerial as well as a technical work level.
2. Authority and Responsibility
These are the two key aspects of management. Authority facilitates the management to work
efficiently, and responsibility makes them responsible for the work done under their guidance or
leadership.
3. Discipline
Without discipline, nothing can be accomplished. It is the core value for any project or any
management. Good performance and sensible interrelation make the management job easy and
comprehensive. Employees’ good behaviour also helps them smoothly build and progress in their
professional careers.
4. Unity of Command
This means an employee should have only one boss and follow his command. If an employee has
to follow more than one boss, there begins a conflict of interest and can create confusion.

10. 6. Subordination of Individual Interest
This indicates a company should work unitedly towards the interest of a company rather than
personal interest. Be subordinate to the purposes of an organisation. This refers to the whole
chain of command in a company.
7. Remuneration
This plays an important role in motivating the workers of a company. Remuneration can be
monetary or non-monetary. Ideally, it should be according to an individual’s efforts they have put
forth.
8. Centralization
In any company, the management or any authority responsible for the decision-making process
should be neutral. However, this depends on the size of an organisation. Henri Fayol stressed on
the point that there should be a balance between the hierarchy and division of power.
9. Scalar Chain
Fayol, on this principle, highlights that the hierarchy steps should be from the top to the lowest.
This is necessary so that every employee knows their immediate senior also they should be able
to contact any, if needed.
10. Order
A company should maintain a well-defined work order to have a favourable work culture. The
positive atmosphere in the workplace will boost more positive productivity.
11. Equity
All employees should be treated equally and respectfully. It’s the responsibility of a manager that
no employees face discrimination.

11. 12. Stability
An employee delivers the best if they feel secure in their job. It is the duty of the management to
offer job security to their employees.
13. Initiative
The management should support and encourage the employees to take initiatives in an
organisation. It will help them to increase their motivation and morale.
14. Esprit de Corps
It is the responsibility of the management to motivate their employees and be supportive of each
other regularly. Developing trust and mutual understanding will lead to a positive outcome and
work environment.
In conclusion, the 14 Principles of Management the pillars of any organisation. They are integral
for prediction, planning, decision-making, process management, control and coordination.

12. Management Process
Management is a process that brings minimum human and material resources together and
motivates people to achieve common organisational goals.
It is not a one-time act but an ongoing progression of complementary activities.
In simple words, a management process is a well-defined system of setting goals, planning
and controlling any action’s execution.
It constitutes a set of interrelated operations or functions necessary to accomplish desired
organisational objectives.
These activities include but are not restrained to:
a project (project management system), or a process (process management system,
sometimes referred to as the process performance measurement and management
system).
Functions of a Management Process
At the basic level, management is a regimen that comprises five standard functions,
namely, planning, organising, staffing, leading, and controlling.
These functions are part of a body of practices and theories that educate on becoming an
efficient manager.

13. The functions of the management process help managers focus their efforts to ensure beneficial
results.
Let us take a look at the five conventional functions of the management process.
1. Planning
Planning in management is a process of choosing apt goals and actions to pursue, and then
determining what strategies to use, what steps to take, and what resources are needed to
achieve the goals.
2. Organizing-
This process of defining working relationships allows workers to synergise their efforts to achieve
common organisational objectives.
3. Leading
This function involves stating a vision, influencing, persuading, motivating and inspiring
employees.
4. Staffing
Enlisting and recruiting employees for positions within the various teams and departments in an
organised manner.
5. Controlling
Evaluate the achievement of goals, improvement in performance and the ability to take action.
Put processes in place to help you establish standards, so you can measure, compare, and
make decisions.

14. Role of a
Manager:
A manager is a professional who takes a leadership role in an organisation and manages a
team of employees.
Often, managers are responsible for managing a specific department in their company.
There are many types of managers, but they usually have duties like conducting performance
reviews and making decisions.
Managers are often the line of communication between a company's employees and its high-
level executives.
1. Figurehead Role of Manager
 Managers perform the duties that are ceremonial and symbolic in nature such as
welcoming official visitors, signing legal documents etc as head of the organization
or strategic business unit or department.
 Duties of interpersonal roles include routine, involving little serious communication and
less important decisions. However, they are important for the smooth functioning of an
organization or department.
2. Leadership Role of Manager
 All managers have a leadership role. The manager, as in charge of the organization /
department, coordinates the work of others and leads his subordinates.
 This role includes hiring, training, motivating and disciplining employees. Formal authority
and functional authority provides greater potential power to exercise and get the things

15. 3. Liaison Role of Manager
 As the leader of the organization or unit, the manager has to perform the functions of
motivation, communication, encouraging team spirit and the like.
 Further, he has to coordinate the activities of all his subordinates, which involves the activity
of liaison.
 This role also requires the manager to interact with other managers outside the organization
to secure favors and information. In this role, the manager represents his organization in all
matters of formality.
4. Monitoring Role of Manager
 As a result of the network of contacts, the manager gets the information by scanning his
environment, subordinates, peers and superiors.
 The manager seeks and receives information concerning internal and external events so as to
gain understanding of the organization and its environment. Typically this is done through
reading magazines and talking with others to learn the changes in the public’s tastes, what
competitors may be planning, and the like.
 Managers, mostly collect information in verbal form often as gossip, hearsay, speculation and
through grapevine channels.
5. Disseminator Role of Manager
 Manager disseminates the information, he collects from different sources and through various
means. He passes some of the privileged information directly to his subordinates, peers and
superiors who otherwise have no access to it. This information is gathered by him from his
environments and from his own equals in the organization.

16. 6. Spokesman Role of Manager
 Managers also perform a spokesperson role when they represent the organization to outsiders.
Manager is required to speak on behalf of the organization and transmit information on
organization’s plan, policies and actions.
 The manager has to keep his superior informed of every development in his unit, who in turn
inform the insiders and outsiders.
7. Entrepreneurial Role of Manager
 As an entrepreneur, the manager is a creator and innovator. He initiates and oversee new
products that will improve their organization’s performance.
 He seeks to improve his department, adapt to the changing environmental factors. The
manager would like to have new ideas, initiates new projects and initiates the developmental
projects.
8. Disturbance Handler Role of Manager
 As a disturbance handler, managers take corrective action to response to previously
unforeseen problems.
 Disturbance handler role presents the manager as the involuntarily responding to pressures.
Pressures of the situation are severe and highly demand the attention of the manager and as
such the manager cannot ignore the situation.
 For example, worker strike, declining sales, bankruptcy of a major customer etc. The manager
should have enough time in handling disturbance carefully, skilfully and effectively.

17. 9. Resource Allocator Role of Manager
 The most important resource that a manager allocates to his subordinates is his time. As a
resource allocator, managers are responsible for allocating human, physical and monetary
resources.
 Accordingly, setting up of a time schedule for the completion of an operation or approval of
expenditure on a particular project, etc., are the functions which the managers perform in the
role of a resource allocator.
 The manager should have an open-door policy and allow the subordinates to express their
opinions and share their experiences. This process helps both the manager and his
subordinates in making effective decisions.
10. Negotiator Role of Manager
 In this tole, the manager represents the organization in bargaining and negotiations with
outsiders and insiders, in order to gain advantages for his own unit.
 He negotiates with the subordinates for improved commitment and loyalty, with the peers for
cooperation, coordination and integration, with workers and their unions regarding conditions
of employment, commitment, productivity, with the government about providing facilities for
business expansion etc.

18. Management by Objectives (MBO)
Management by objectives (MBO) is a strategic management model that aims to improve the
performance of an organization by clearly defining objectives that are agreed to by both
management and employees.
According to the theory, having a say in goal setting and action plans encourages participation
and commitment among employees, as well as aligning objectives across the organization.
Management by Objectives defines roles and responsibilities for the employees and help them
chalk out their future course of action in the organization.
Management by objectives guides the employees to deliver their level best and achieve the
targets within the stipulated time frame.
Need for Management by Objectives (MBO)
 The Management by Objectives process helps the employees to understand their duties at
the workplace.
 Roles are designed for each employee as per their interest, specialization and educational
qualification.
 The employees are clear as to what is expected out of them.
 Management by Objectives process leads to satisfied employees. It avoids job mismatch
and unnecessary confusions later on.

20. 1. Define organization goals
Setting objectives is not only critical to the success of any company, but it also serves a variety of
purposes. It needs to include several different types of managers in setting goals. The objectives
set by the supervisors are provisional, based on an interpretation and evaluation of what the
company can and should achieve within a specified time.
2. Define employee objectives
Once the employees are briefed about the general objectives, plan, and the strategies to follow,
the managers can start working with their subordinates on establishing their personal objectives.
3. Continuous monitoring performance and progress
Though the management by objectives approach is necessary for increasing the effectiveness of
managers, it is equally essential for monitoring the performance and progress of each employee
in the organization.
4. Performance evaluation
Within the MBO framework, the performance review is achieved by the participation of the
managers concerned.
5. Providing feedback
In the management by objectives approach, the most essential step is the
continuous feedback on the results and objectives, as it enables the employees to track and
make corrections to their actions. The ongoing feedback is complemented by frequent formal
evaluation meetings in which superiors and subordinates may discuss progress towards
objectives, leading to more feedback.
6. Performance appraisal
Performance reviews are a routine review of the success of employees within MBO