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UNIT:1
sanjaykanagala,rimsmba,kakinada
 Introduction of
management
 Definition
 Importance
 Managerial roles
 Functions Of
management
 Classical theory
 Scientific management
 Administrative theory
 Behavioral theory
 Integrative
perspective
 System theory
 Socio-technical theory
 Contingency theory
 Comparing theory
sanjaykanagala,rimsmba,kakinada
 Definition: Coordinating work activities so
that they are completed efficiently and
effectively with and through other people
 Efficiency: getting the most output from the
least input
 Effectiveness: completing activities so that
the organization’s goals are attained.
sanjaykanagala,rimsmba,kakinada
sanjaykanagala,rimsmba,kakinada
sanjaykanagala,rimsmba,kakinada
Figurehead
Leader
Liaison
Monitor
Disseminator
Spokesperson
Entrepreneur
Disturbance
Handler
Resource
Allocator
Negotiator
Interpersonal Informational Decisional
sanjaykanagala,rimsmba,kakinada
Planning
Organizing
Staffing
Leading
Controlling
Making Things Happen
Meeting the Competition
Organizing People,
Projects, and Processes
Classical
Management Functions
Updated
Management Functions
sanjaykanagala,rimsmba,kakinada
CEO
COO
CIO
General Mgr
Plant Mgr
Regional Mgr
Office Manager
Shift Supervisor
Department Manager
Team Leader
Top Level
Management
Middle Level
Management
First-Line
Management
sanjaykanagala,rimsmba,kakinada
Responsible for…
Creating a context for change
Developing attitudes of commitment
and ownership in employees
Creating a positive organizational
culture through language and action
Monitoring their business environments
sanjaykanagala,rimsmba,kakinada
Responsible for…
Setting objectives consistent with top
management goals, planning strategies
Coordinating and linking groups,
departments, and divisions
Monitoring and managing the performance
of subunits and managers who report to them
Implementing the changes or strategies
generated by top managers
sanjaykanagala,rimsmba,kakinada
Responsible for…
Managing the performance of
entry-level employees
Teaching entry-level employees
how to do their jobs
Making schedules and operating plans based on
middle management’s intermediate-range plans
sanjaykanagala,rimsmba,kakinada
Technical Skills Human Skill
Conceptual Skill Design Skill
sanjaykanagala,rimsmba,kakinada
Core skills and their use in the
different levels
Conceptual
skills
Human
skills
Technical skills
Managerial
levels
Lower Middle Top
sanjaykanagala,rimsmba,kakinada
Management Theory
 Pre-Classical
 Classical Approaches
 Frederick Taylor: Scientific Management (1886)
 Frank and Lillian Gilbreth: Time/motion studies (later 1800s)
 Henri Fayol: 14 Principles of Management (1880s-1890s)
 Max Weber : Bureaucracy (1920s)
 Behavioral Approaches
 The Hawthorne Experiment (1927)
 MacGregor’s Theory X and Theory Y (1960)
 Quantitative Approaches
 Contemporary Approaches
 Ouchi’s Theory Z (1981)
 Contingency Management
sanjaykanagala,rimsmba,kakinada
Classical Approaches
 Frederick Taylor: Scientific Management
(1886)
 Frank and Lillian Gilbreth: Time and motion
studies (later 1800s)
 Henri Fayol: Fourteen Principles of
Management (1880s-1890s)
 Max Weber : Bureaucracy (1920s)
sanjaykanagala,rimsmba,kakinada
Frederick W. Taylor
 Developed Scientific Management
 Laid foundation for the study of management
 Key ideas:
 Management as a separate field of study
 Explicit guidelines for scientific study of
management functions
 Time studies for setting standards
 Functional specialization of managers’ duties
 Piece-rate Incentive systems
sanjaykanagala,rimsmba,kakinada
Taylor’s Principles of Management
 The “one best way.”
 Management using scientific observation
 Scientific selection of personnel
 Put right worker in right job, find limitations, train
 Financial incentives
 Putting right worker in right job not enough
 A system of financial incentives is also needed
 Functional foremanship
 Division of labor between manager and workers
 Manager plans, prepares, inspects
 Worker does the actual work
 “Functional foremen” , specialized experts,
responsible for specific aspects of the jobsanjaykanagala,rimsmba,kakinada
Frank & Lillian Gilbreth
 Time and motion efficiency experts
 Developed therbligs, breakdown of manual skills
into 16 actions
 Frank was a lazy bricklayer looking for an
easier way and Lillian was a psychologist.
 Endorsed piece-work and suggested a higher
rate per unit if his directions were followed.
 Disagreed with Taylor’s idea that
management should choose which workers
took which jobs.
sanjaykanagala,rimsmba,kakinada
Henri Fayol
 First came up with the five basic
functions of management—Planning,
Organizing, Staffing, Directing,
Communicating, and Controlling
 First wrote that management is a set of
principles which can be learned.
 Developed Fourteen Principles of
Management
sanjaykanagala,rimsmba,kakinada
HENRI FAYOL’s
FOURTEEN PRINCIPLES OF MANAGEMENT
sanjaykanagala,rimsmba,kakinada
1. Specialization of labor. Specializing encourages
continuous improvement in skills and the development of
improvements in methods.
2. Authority. The right to give orders and the power to exact
obedience.
3. Discipline. No slacking, bending of rules.
4. Unity of command. Each employee has one and only one
boss.
5. Unity of direction. A single mind generates a single plan
and all play their part in that plan.
6. Subordination of Individual Interests. When at work,
only work things should be pursued or thought about.
7. Remuneration. Employees receive fair payment for
services, not what the company can get away with.sanjaykanagala,rimsmba,kakinada
8. Centralization. Consolidation of management
functions. Decisions are made from the top.
9. Scalar Chain (line of authority). Formal chain
of command running from top to bottom of the
organization, like military
10. Order. All materials and personnel have a
prescribed place, and they must remain there.
11. Equity. Equality of treatment (but not
necessarily identical treatment)
12. Personnel Tenure. Limited turnover of
personnel. Lifetime employment for good workers.
13. Initiative. Thinking out a plan and do what it
takes to make it happen.
14. Esprit de corps. Harmony, cohesion among
personnel. sanjaykanagala,rimsmba,kakinada
Max Weber
 Coined “bureaucracy”: the perfect office
 Well defined chain of command
 Clear division of work (job descriptions)
 Procedures for any situation
 Impersonality
 Employment and promotion based on
technical competence.
sanjaykanagala,rimsmba,kakinada
Behavioral Approaches
 The Hawthorne Experiment (1927)
 Chester Barnard (1930s – 1960s)
 Herbert Simon (1947)
 MacGregor’s Theory X and Theory Y (1960)
sanjaykanagala,rimsmba,kakinada
The Hawthorne Experiment
 Research conducted at the Hawthorne plant
of the Western Electric Company near
Chicago, 1927-1937
 Initial study: effects of lighting on worker
performance
 But the “Hawthorne Effect” was instead
identified
 The workers values, desires, and needs may be
more important than physical conditions.
 Workers want to have input.
 Workers want to be respected.sanjaykanagala,rimsmba,kakinada
Theories X and Y
 Conducted in 1960s by Douglas McGregor
 Theory X: classical theory
 Most people dislike work and responsibility,
they are motivated only by money and do
not care about the job.
 Close supervision is required and people
must be carefully controlled and coerced
into working
 Average person prefers direction
sanjaykanagala,rimsmba,kakinada
Theories X and Y
 Theory Y: Modern Management Theory
 People often enjoy their work and will exercise
self-control at work.
 People are motivated by wanting to do a good job
and will do well if the opportunity is presented
 People have capacity for imagination, ingenuity,
and creativity
 People enjoy expending physical and mental effort
in work as much as play and rest
sanjaykanagala,rimsmba,kakinada
Contemporary Approaches
 Ouchi’s Theory Z (1981)
 Contingency Management
sanjaykanagala,rimsmba,kakinada
Ouchi’s Theory Z
 Theory Z
 Value of culture in an industrial society
 Intimate and cooperative work
relationships
 Alienated in work environment in which
family ties, traditions, and social
institutions are minimized
 Workers have strong sense of moral
obligation, discipline and order
sanjaykanagala,rimsmba,kakinada
Contingency Management
 Managing in Different and Changing
Situations
 Require managers to use different approaches and
techniques
 Contingency perspective - different ways of
managing are required in different organizations
and different circumstances
 stresses that there are no simplistic or universal
rules
 contingency variable
© Prentice Hall, 2002
sanjaykanagala,rimsmba,kakinada
 Behavioral
◦ Mary Parker Follet : “Power Sharing”
◦ Chris Argyris: Model I & Model II Organisations
 Quantitative Approach
◦ Management Science
◦ Operation Management
◦ MIS
 System Theory
sanjaykanagala,rimsmba,kakinada
 Write Definition and Importance of
management in an organization?
 Name Managerial roles and discuss with
suitable examples?
 Discuss Functions Of management?
 Write briefly about Classical theory, Scientific
management, Administrative theory and
Behavioral theory?
 Discuss the Integrative perspective System
theory, Socio-technical theory and Contingency
theory?
sanjaykanagala,rimsmba,kakinada
sanjaykanagala,rimsmba,kakinada

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PRINCIPLES OF MANAGEMENT-JNTUK-UNIT-1-2016-2018 BATCH

  • 2.  Introduction of management  Definition  Importance  Managerial roles  Functions Of management  Classical theory  Scientific management  Administrative theory  Behavioral theory  Integrative perspective  System theory  Socio-technical theory  Contingency theory  Comparing theory sanjaykanagala,rimsmba,kakinada
  • 3.  Definition: Coordinating work activities so that they are completed efficiently and effectively with and through other people  Efficiency: getting the most output from the least input  Effectiveness: completing activities so that the organization’s goals are attained. sanjaykanagala,rimsmba,kakinada
  • 7. Planning Organizing Staffing Leading Controlling Making Things Happen Meeting the Competition Organizing People, Projects, and Processes Classical Management Functions Updated Management Functions sanjaykanagala,rimsmba,kakinada
  • 8. CEO COO CIO General Mgr Plant Mgr Regional Mgr Office Manager Shift Supervisor Department Manager Team Leader Top Level Management Middle Level Management First-Line Management sanjaykanagala,rimsmba,kakinada
  • 9. Responsible for… Creating a context for change Developing attitudes of commitment and ownership in employees Creating a positive organizational culture through language and action Monitoring their business environments sanjaykanagala,rimsmba,kakinada
  • 10. Responsible for… Setting objectives consistent with top management goals, planning strategies Coordinating and linking groups, departments, and divisions Monitoring and managing the performance of subunits and managers who report to them Implementing the changes or strategies generated by top managers sanjaykanagala,rimsmba,kakinada
  • 11. Responsible for… Managing the performance of entry-level employees Teaching entry-level employees how to do their jobs Making schedules and operating plans based on middle management’s intermediate-range plans sanjaykanagala,rimsmba,kakinada
  • 12. Technical Skills Human Skill Conceptual Skill Design Skill sanjaykanagala,rimsmba,kakinada
  • 13. Core skills and their use in the different levels Conceptual skills Human skills Technical skills Managerial levels Lower Middle Top sanjaykanagala,rimsmba,kakinada
  • 14. Management Theory  Pre-Classical  Classical Approaches  Frederick Taylor: Scientific Management (1886)  Frank and Lillian Gilbreth: Time/motion studies (later 1800s)  Henri Fayol: 14 Principles of Management (1880s-1890s)  Max Weber : Bureaucracy (1920s)  Behavioral Approaches  The Hawthorne Experiment (1927)  MacGregor’s Theory X and Theory Y (1960)  Quantitative Approaches  Contemporary Approaches  Ouchi’s Theory Z (1981)  Contingency Management sanjaykanagala,rimsmba,kakinada
  • 15. Classical Approaches  Frederick Taylor: Scientific Management (1886)  Frank and Lillian Gilbreth: Time and motion studies (later 1800s)  Henri Fayol: Fourteen Principles of Management (1880s-1890s)  Max Weber : Bureaucracy (1920s) sanjaykanagala,rimsmba,kakinada
  • 16. Frederick W. Taylor  Developed Scientific Management  Laid foundation for the study of management  Key ideas:  Management as a separate field of study  Explicit guidelines for scientific study of management functions  Time studies for setting standards  Functional specialization of managers’ duties  Piece-rate Incentive systems sanjaykanagala,rimsmba,kakinada
  • 17. Taylor’s Principles of Management  The “one best way.”  Management using scientific observation  Scientific selection of personnel  Put right worker in right job, find limitations, train  Financial incentives  Putting right worker in right job not enough  A system of financial incentives is also needed  Functional foremanship  Division of labor between manager and workers  Manager plans, prepares, inspects  Worker does the actual work  “Functional foremen” , specialized experts, responsible for specific aspects of the jobsanjaykanagala,rimsmba,kakinada
  • 18. Frank & Lillian Gilbreth  Time and motion efficiency experts  Developed therbligs, breakdown of manual skills into 16 actions  Frank was a lazy bricklayer looking for an easier way and Lillian was a psychologist.  Endorsed piece-work and suggested a higher rate per unit if his directions were followed.  Disagreed with Taylor’s idea that management should choose which workers took which jobs. sanjaykanagala,rimsmba,kakinada
  • 19. Henri Fayol  First came up with the five basic functions of management—Planning, Organizing, Staffing, Directing, Communicating, and Controlling  First wrote that management is a set of principles which can be learned.  Developed Fourteen Principles of Management sanjaykanagala,rimsmba,kakinada
  • 20. HENRI FAYOL’s FOURTEEN PRINCIPLES OF MANAGEMENT sanjaykanagala,rimsmba,kakinada
  • 21. 1. Specialization of labor. Specializing encourages continuous improvement in skills and the development of improvements in methods. 2. Authority. The right to give orders and the power to exact obedience. 3. Discipline. No slacking, bending of rules. 4. Unity of command. Each employee has one and only one boss. 5. Unity of direction. A single mind generates a single plan and all play their part in that plan. 6. Subordination of Individual Interests. When at work, only work things should be pursued or thought about. 7. Remuneration. Employees receive fair payment for services, not what the company can get away with.sanjaykanagala,rimsmba,kakinada
  • 22. 8. Centralization. Consolidation of management functions. Decisions are made from the top. 9. Scalar Chain (line of authority). Formal chain of command running from top to bottom of the organization, like military 10. Order. All materials and personnel have a prescribed place, and they must remain there. 11. Equity. Equality of treatment (but not necessarily identical treatment) 12. Personnel Tenure. Limited turnover of personnel. Lifetime employment for good workers. 13. Initiative. Thinking out a plan and do what it takes to make it happen. 14. Esprit de corps. Harmony, cohesion among personnel. sanjaykanagala,rimsmba,kakinada
  • 23. Max Weber  Coined “bureaucracy”: the perfect office  Well defined chain of command  Clear division of work (job descriptions)  Procedures for any situation  Impersonality  Employment and promotion based on technical competence. sanjaykanagala,rimsmba,kakinada
  • 24. Behavioral Approaches  The Hawthorne Experiment (1927)  Chester Barnard (1930s – 1960s)  Herbert Simon (1947)  MacGregor’s Theory X and Theory Y (1960) sanjaykanagala,rimsmba,kakinada
  • 25. The Hawthorne Experiment  Research conducted at the Hawthorne plant of the Western Electric Company near Chicago, 1927-1937  Initial study: effects of lighting on worker performance  But the “Hawthorne Effect” was instead identified  The workers values, desires, and needs may be more important than physical conditions.  Workers want to have input.  Workers want to be respected.sanjaykanagala,rimsmba,kakinada
  • 26. Theories X and Y  Conducted in 1960s by Douglas McGregor  Theory X: classical theory  Most people dislike work and responsibility, they are motivated only by money and do not care about the job.  Close supervision is required and people must be carefully controlled and coerced into working  Average person prefers direction sanjaykanagala,rimsmba,kakinada
  • 27. Theories X and Y  Theory Y: Modern Management Theory  People often enjoy their work and will exercise self-control at work.  People are motivated by wanting to do a good job and will do well if the opportunity is presented  People have capacity for imagination, ingenuity, and creativity  People enjoy expending physical and mental effort in work as much as play and rest sanjaykanagala,rimsmba,kakinada
  • 28. Contemporary Approaches  Ouchi’s Theory Z (1981)  Contingency Management sanjaykanagala,rimsmba,kakinada
  • 29. Ouchi’s Theory Z  Theory Z  Value of culture in an industrial society  Intimate and cooperative work relationships  Alienated in work environment in which family ties, traditions, and social institutions are minimized  Workers have strong sense of moral obligation, discipline and order sanjaykanagala,rimsmba,kakinada
  • 30. Contingency Management  Managing in Different and Changing Situations  Require managers to use different approaches and techniques  Contingency perspective - different ways of managing are required in different organizations and different circumstances  stresses that there are no simplistic or universal rules  contingency variable © Prentice Hall, 2002 sanjaykanagala,rimsmba,kakinada
  • 31.  Behavioral ◦ Mary Parker Follet : “Power Sharing” ◦ Chris Argyris: Model I & Model II Organisations  Quantitative Approach ◦ Management Science ◦ Operation Management ◦ MIS  System Theory sanjaykanagala,rimsmba,kakinada
  • 32.  Write Definition and Importance of management in an organization?  Name Managerial roles and discuss with suitable examples?  Discuss Functions Of management?  Write briefly about Classical theory, Scientific management, Administrative theory and Behavioral theory?  Discuss the Integrative perspective System theory, Socio-technical theory and Contingency theory? sanjaykanagala,rimsmba,kakinada