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Management
1
Who Are Managers?
Manager
Someone who works with and through other people by
coordinating their work activities in order...
Types of Managers
First-line Managers
Are at the lowest level of management and manage the work of
nonmanagerial employe...
Exhibit 1.1 Managerial Levels
Top
Managers
Middle Managers
First-Line Managers
Nonmanagerial Employees
4
Where Managers Work
Organization
A consciously coordinated social unit,
composed of two or more people, that
functions on ...
Definition of Management:
Management is the process of designing and maintaining an
environment in which individuals, wor...
Definitions of Effectiveness and
Efficiency
Productivity implies effectiveness and efficiency in individual
and organizat...
Managerial Concerns
Efficiency
“Doing things right”
Getting the most output for the least input
Effectiveness
“Doing ...
What Managers Do
Managerial Activities
• Make decisions
• Allocate resources
• Direct activities of others to
attain goals...
What Do Managers Do?
Functional Approach
Planning
Organizing
Leading
Controlling
10
Management Functions (cont’d)
Planning
A process that includes defining goals,
establishing strategy, and developing
plans...
Management Functions (cont’d)
Organizing
Determining what tasks are to be done,
who is to do them, how the tasks are to be...
Management Functions (cont’d)
Leading
A function that includes motivating
employees, directing others, selecting
the most ...
Management Functions (cont’d)
Controlling
Monitoring activities to ensure they are being
accomplished as planned and corre...
Management Functions
Planning
Defining goals,
establishing
strategy, and
developing
subplans to
coordinate
activities
Lead...
What Do Managers Do? (cont’d
Mintzberg’s Management Roles Approach
Interpersonal roles
Figurehead, leader, liaison
Inf...
Mintzberg’s Managerial Roles
17
Mintzberg’s Managerial Roles (cont’d)
18
Mintzberg’s Managerial Roles (cont’d)
19
What Do Managers Do? (cont’d)
Skills Approach
Technical skills
Human skills
Conceptual skills
20
Management Skills
Technical skills
The ability to apply specialized
knowledge or expertise.
Human skills
The ability to wo...
Exhibit 1.4 Skills Needed at Different
Management Levels
Top
Managers
Middle
Managers
Lower-level
Managers
Importance
Conc...
What Is An Organization?
An Organization Defined
A deliberate arrangement of people to accomplish some
specific purpose
...
Exhibit 1.6 The Changing Organization
Traditional
 Stable
 Inflexible
 Job-focused
 Work is defined by job positions
...
Management: Definition
Acc to Harold Koontz: Management is the art of getting
things done through & with an formally orga...
Features of Management
Art as well as Science
Management is an activity
Management is a continuous process
Management ...
Features of Management
Management is a distinct entity
Management aims at maximising profit
Management is a purposeful ...
Importance of Management
Management meet the challenge of change
Accomplishment of group goals
Effective utilization of...
Importance of Management
Innovation
Co-ordination and team-spirit
Tackling problems
A tool for Personality Development...
ORGANISATION THEORIES
The theories are crafted in view of the basic production being
Replaced my mass production, to organ...
a) Scientific Management
b) Administrative Management
c) Theory of Bureaucracy
1. CLASSIC THEORIES
31
a) Scientific management
Introduced by F.W. Taylor in USA in the beginning of 20th
century.
He is called as the Father o...
Principles of Scientific
Management
Task fragmentation
Scientific Analysis of the jobs being done to select the best
met...
Limitations of scientific
mangement
34
Mechanical approach considering worker an adjunct to
machines
Narrow specializati...
B. Administrative Management
Henry Fayol (1841-1925), a french industrialist
Given :
Elements of Management- Planning, ...
Principles of Management
1. Division of labour
2. Authority
3. Discipline
4. Unity of command
5. Unity of direction
6. Sub...
Principles by Luther gullick and Lyndall Urwick; an
extension to Fayol
37
Fitting people to the organization structure
R...
38
Limitations of Admin. Mgmt
principles
39
Behavioral, cultural and social components ignored
No emphasis on variations in...
C. Bureaucracy
Given by Max Weber, a German sociologist.
Known as father of Bureaucracy
Proposed that bureaucracy provi...
Principles Of Bureaucracy
Division of labor based on functional specialization, individual
specialization, task allocatio...
Limitations of bureaucracy
42
1. Goal displacement (procedure vs. result)
2. Inadequate communication
3. Lack of effective...
2. Neo-Classical Theory
The Human Relations approach
Behavioral science contributions
43
2. NEO-CLASSIC THEORIES
a. The Human Relations Movement
Illumination Experiments (hawthorne experiments) by elton
mayo
Resulted in cnclusion tha...
Principles of human relations school
“social capacity” rather than “physical capacity”
Psychological needs are prime mov...
B. Behavioral science contribution
Stress on developing organisation as COOPERATIVE
SYSTEM
Group dynamics playing an imp...
Assumptions about people:
McGregor’s theory
Theory X
Average human being is
lazy and deslikes work
People like to be di...
Motivation and Job satisfaction
Maslow’s theory: identification of 5 basic needs:
1. Physiological needs: hunger, thirst ...
Immaturity maturity continuum (chris rgyris)
IMMATURITY
CHARACTERISTICS
Passivity
Dependence
Few ways of behaving
Sha...
Other features of neo classical
theory
Need of a DECENTRALISED STRUCTURE
DEMOCRATIZATION and PARTICIPATION
50
Modern Theory
A. Quantitative Approach (Mgmt. science theory)
B. Systems Approach
C. Contingency Approach
51
3. MODERN THE...
A. QUANTITATIVE APPROACH
Emerged after world war 2
Operation research: mathematical model building and other
applicatio...
B. SYSTEMS APPROACH
53
54
SYSTEMS approach (cont..)
An extension of the humanistic perspective that describes
organisations as open systems that a...
Organizations as an open system
System and sub system
Holism : whole is greater than arithmetic mean of its parts
Impor...
C. Contingency theory
An extension of the humanistic perspective in which the succesful
resolution of organizational pro...
QUERIES ???
58
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Management by arun verma

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Management by arun verma

  1. 1. Management 1
  2. 2. Who Are Managers? Manager Someone who works with and through other people by coordinating their work activities in order to accomplish organizational goals 2
  3. 3. Types of Managers First-line Managers Are at the lowest level of management and manage the work of nonmanagerial employees Middle Managers Manage the work of first-line managers Top Managers Are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization 3
  4. 4. Exhibit 1.1 Managerial Levels Top Managers Middle Managers First-Line Managers Nonmanagerial Employees 4
  5. 5. Where Managers Work Organization A consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals. 5
  6. 6. Definition of Management: Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims 6
  7. 7. Definitions of Effectiveness and Efficiency Productivity implies effectiveness and efficiency in individual and organizational performance Effectiveness is the achievement of objectives Efficiency is the achievement of the ends with the least amount of resources (men, money, material, machinery, time etc.) 7
  8. 8. Managerial Concerns Efficiency “Doing things right” Getting the most output for the least input Effectiveness “Doing the right things” Attaining organizational goals 8
  9. 9. What Managers Do Managerial Activities • Make decisions • Allocate resources • Direct activities of others to attain goals Managerial Activities • Make decisions • Allocate resources • Direct activities of others to attain goals Managers (or administrators) Individuals who achieve goals through other people. 9
  10. 10. What Do Managers Do? Functional Approach Planning Organizing Leading Controlling 10
  11. 11. Management Functions (cont’d) Planning A process that includes defining goals, establishing strategy, and developing plans to coordinate activities. 11
  12. 12. Management Functions (cont’d) Organizing Determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made. 12
  13. 13. Management Functions (cont’d) Leading A function that includes motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts. 13
  14. 14. Management Functions (cont’d) Controlling Monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations. 14
  15. 15. Management Functions Planning Defining goals, establishing strategy, and developing subplans to coordinate activities Lead to Organizing Determining what needs to be done, how it will be done, and who is to do it Leading Directing and motivating all involved parties and resolving conflicts Controlling Monitoring activities to ensure that they are accomplished as planned Achieving the organization’s stated purpose 15
  16. 16. What Do Managers Do? (cont’d Mintzberg’s Management Roles Approach Interpersonal roles Figurehead, leader, liaison Informational roles Monitor, disseminator, spokesperson Decisional roles Entrepreneur, disturbance handler, resource allocator, negotiator 16
  17. 17. Mintzberg’s Managerial Roles 17
  18. 18. Mintzberg’s Managerial Roles (cont’d) 18
  19. 19. Mintzberg’s Managerial Roles (cont’d) 19
  20. 20. What Do Managers Do? (cont’d) Skills Approach Technical skills Human skills Conceptual skills 20
  21. 21. Management Skills Technical skills The ability to apply specialized knowledge or expertise. Human skills The ability to work with, understand, and motivate other people, both individually and in groups. Conceptual Skills The mental ability to analyze and diagnose complex situations. 21
  22. 22. Exhibit 1.4 Skills Needed at Different Management Levels Top Managers Middle Managers Lower-level Managers Importance Conceptual Skills Human Skills Technical Skills 22
  23. 23. What Is An Organization? An Organization Defined A deliberate arrangement of people to accomplish some specific purpose Common Characteristics of Organizations Have a distinct purpose (goal) Are composed of people Have a deliberate structure 23
  24. 24. Exhibit 1.6 The Changing Organization Traditional  Stable  Inflexible  Job-focused  Work is defined by job positions  Individual-oriented  Permanent jobs  Command-oriented  Managers always make decisions  Rule-oriented  Relatively homogeneous workforce  Workdays defined as 9 to 5  Hierarchial relationships  Work at organizational facility during specific hours New Organization  Dynamic  Flexible  Skills-focused  Work is defined in terms of tasks to be done  Team-oriented  Temporary jobs  Involvement-oriented  Employees participate in decision making  Customer-oriented  Diverse workforce  Workdays have no time boundaries  Lateral and networked relationships  Work anywhere, anytime 24
  25. 25. Management: Definition Acc to Harold Koontz: Management is the art of getting things done through & with an formally organized group Acc to Henry Fayol: To manage is to forecast & plan, to organize, to co-ordinate and to control PODSCCRB: - Planning, Organizing, Directing, Staffing, Controlling, Co-ordinating, Reporting & Budgeting 25
  26. 26. Features of Management Art as well as Science Management is an activity Management is a continuous process Management achieving pre-determined objectives Organized activities Management as a system Management is a discipline 26
  27. 27. Features of Management Management is a distinct entity Management aims at maximising profit Management is a purposeful activity Management is a profession Universal application Management is getting things done Management is needed at all levels 27
  28. 28. Importance of Management Management meet the challenge of change Accomplishment of group goals Effective utilization of resources Effective functioning of business Resource Development Sound organization Structure Management directs the organization Integrates various interests Stability 28
  29. 29. Importance of Management Innovation Co-ordination and team-spirit Tackling problems A tool for Personality Development 29
  30. 30. ORGANISATION THEORIES The theories are crafted in view of the basic production being Replaced my mass production, to organize technology- information-manpower interface for proper coordination of Activities of large number of people and increased efficiency. Major theories are: 1. Classical Theory 2. Neo-Classical Theory 3. Modern Theory 30
  31. 31. a) Scientific Management b) Administrative Management c) Theory of Bureaucracy 1. CLASSIC THEORIES 31
  32. 32. a) Scientific management Introduced by F.W. Taylor in USA in the beginning of 20th century. He is called as the Father of Scientific Management Focus on improving the efficiency of the workers. 32
  33. 33. Principles of Scientific Management Task fragmentation Scientific Analysis of the jobs being done to select the best method of doing the task Standardization of tools and methods for production Scientific selection through specialization Financial Incentives and rewards Training Demarcation of responsibilities between management and workers 33
  34. 34. Limitations of scientific mangement 34 Mechanical approach considering worker an adjunct to machines Narrow specialization due to fragmentation of jobs Routinization of jobs leading to boredom, short job cycles, lack of autonomy hence worker distress More of a “SYSTEMATIC” approach than being scientific “Command and control” system “conception and planning” being separated from “execution” Wages not being increased in proportion of production Required to perform consistently at high level of efficiency
  35. 35. B. Administrative Management Henry Fayol (1841-1925), a french industrialist Given : Elements of Management- Planning, Organizing, Commanding, Co-ordination & Control Qualities of Manager: Physical, Mental, Moral, General Education, Special Knowledge & Experience Categories of operations: technical, commercial, financial, security, accounting, management Principles of Management 35
  36. 36. Principles of Management 1. Division of labour 2. Authority 3. Discipline 4. Unity of command 5. Unity of direction 6. Subordination of individual interest to common good 7. Remuneration 8. Centralisation 9. The hierarchy 10. Order 11. Equity 12. Stability on staff 13. Initiative 14. Esprit de corps 36
  37. 37. Principles by Luther gullick and Lyndall Urwick; an extension to Fayol 37 Fitting people to the organization structure Recognizing one top executive as the source of authority Adhering to the unity of command Using special and general staff Departmentalizing by purpose, process, persons and place Considering appropriate spans of control Delegating and utilising the exception principle Marking responsibility commensurate with authority
  38. 38. 38
  39. 39. Limitations of Admin. Mgmt principles 39 Behavioral, cultural and social components ignored No emphasis on variations in human response towards management processes like planning, directing and controlling Rational approach towards human factor
  40. 40. C. Bureaucracy Given by Max Weber, a German sociologist. Known as father of Bureaucracy Proposed that bureaucracy provides most efficient framework for designing business, government, military and other complex organisations 40
  41. 41. Principles Of Bureaucracy Division of labor based on functional specialization, individual specialization, task allocation according to competence Well defined hierarchy of authority Rational legal authority (rank/position) Traditional authority (monarch) Charismatic authority (mass appeal/ special powers) A system of procedures to deal with work situations System of record keeping A system of promotion and selection for employment based on technical competence Rational decision making based on fairness, justice and equity Adherence to norms, code of conduct ; consistency of actions Rules covering rights and duties of positional incumbents 41
  42. 42. Limitations of bureaucracy 42 1. Goal displacement (procedure vs. result) 2. Inadequate communication 3. Lack of effective coordination 4. Lack of system for conflict management 5. Red tapism (rules not applied uniformly) 6. Outdated notion of authority 7. Lack of opportunity for personal growth 8. Lack of innovativeness 9. Inadequate appreciation of organizational dynamics 10. Change resistant 11. Suboptimal utilization of manpower
  43. 43. 2. Neo-Classical Theory The Human Relations approach Behavioral science contributions 43 2. NEO-CLASSIC THEORIES
  44. 44. a. The Human Relations Movement Illumination Experiments (hawthorne experiments) by elton mayo Resulted in cnclusion that change in social conditions , motivation and supervision and NOT the working conditions were factors responsible for increase in production Role of informal work group Production determined more by social factors than aptitute or physiological factors 44
  45. 45. Principles of human relations school “social capacity” rather than “physical capacity” Psychological needs are prime movers Individual behavior is affected by feelings Orgnisation to be viewed both as techno economic as well as social system Critical role of informal work groups Workers act/react as members of groups and not mere individuals Informal leadership more emergent than formal leadership Necessacity of 2 way communication Integration between goals of organisation and individuals Managers developing social and technical skills45
  46. 46. B. Behavioral science contribution Stress on developing organisation as COOPERATIVE SYSTEM Group dynamics playing an important role More stress on interpersonal relationships “personality” and “behavior” : external situation factors and psychic inner causes 46
  47. 47. Assumptions about people: McGregor’s theory Theory X Average human being is lazy and deslikes work People like to be directed and lack ambition People have little capacity for creativity Most people are indifferent to organisation goals Motivation is always relatedto physiological needs (food, shelter etc) Theory Y Work is natual as play if conditions are favourable Self direction and control to serve the objectives Commitment to objectives and satisfaction of egoes Proper conditions are necessasary, shortcomings are not inherited Potential partially utilised under present ind. system47
  48. 48. Motivation and Job satisfaction Maslow’s theory: identification of 5 basic needs: 1. Physiological needs: hunger, thirst etc. 2. Safety needs: protection against danger, threat, deprivation etc 3. Love needs: belonging to groups, friendship, affection 4. Esteem needs: self respect, respect for others, ego and status needs 5. Self fullfillment and self actualisation: self development, creativity, satisfaction, realising owns potential 48
  49. 49. Immaturity maturity continuum (chris rgyris) IMMATURITY CHARACTERISTICS Passivity Dependence Few ways of behaving Shallow interests Short time perspectives Subordinate position Lack of self awareness MATURITY CHARACTERISTICS Activity Responsible independence Diverse behavior Deep interests Long time perspectives Super ordinate positions Self awareness and control 49
  50. 50. Other features of neo classical theory Need of a DECENTRALISED STRUCTURE DEMOCRATIZATION and PARTICIPATION 50
  51. 51. Modern Theory A. Quantitative Approach (Mgmt. science theory) B. Systems Approach C. Contingency Approach 51 3. MODERN THEORIES
  52. 52. A. QUANTITATIVE APPROACH Emerged after world war 2 Operation research: mathematical model building and other applications of quantitative techniques to managerial problems Operations management: quantitative technique to solve manufacturing problems.e.g. forecasting, linear and non linear programming, scheduling, simulation, break even analysis, computer aided design (CAD), Computer automated manufacturing (CAM), total quality management (TQM) Information technology: internet, intranet, decision support systems (DSS) 52
  53. 53. B. SYSTEMS APPROACH 53
  54. 54. 54
  55. 55. SYSTEMS approach (cont..) An extension of the humanistic perspective that describes organisations as open systems that are characterised by entropy, synergy and subsystem interdependance. Open system: which interacts with the environment to survive Closed system: does not interacts with the external environment Entropy: tendency of a system to run down and die Synergy: concept that the whole is greater than the sum of its parts Subsystems: parts of the system that depend upon one another for their functioning 55
  56. 56. Organizations as an open system System and sub system Holism : whole is greater than arithmetic mean of its parts Importation of energy Conversion process (JIT, kaizen, (continuous improvement) TQM) Export of energy (value added products, services) Cyclic nature of activities Negative entropy: resistance to perish Self regulatory mechanisms Internal elaborations (strategizing, elaborating activities) Integrate: unity of actions and coordination Equifinality (reaching same final state from different initial conditions by variety of ways)56
  57. 57. C. Contingency theory An extension of the humanistic perspective in which the succesful resolution of organizational problems is thought to depend upon manager’s identification of key variations in the situation at hand. Universalistic view:  there is one best way (either be leadership style, bureaucratic structure) The same concept is applicable to every another organization Case view: Every situation is unique Determining new methods/solution for every new situation or problem 57 Case view Universalistic view CONTINGENCY VIEW Organization phenomenon exist in logical patterns; management devise and apply similar responses to common types of problems
  58. 58. QUERIES ??? 58

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