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Introduction to Management
Management
Manage …. Men
Art of getting things done through others
To forecast to control, plan evaluate to get work done - Henry Fayol
Management is a processs by which you do planning, organising, staffing, directing, controlling the
activities in an organisation.
Characteristics Of Management
✤ Multidisciplinary
✍ It has not evolved by itself Evolved from various other disciplines like psychology,
Sociology, anthropology
✤ Group activity
✍ Many people are involved, work as teams
✍ Superiors, subordinates, co-workers- culminating the efforts of a group of people to achieve
something.
✤ Factor of production
✍ management deals with 5 factors
✍ The five Ms
✍ Men, Materials, Methods, Money, Machines
✍ These five factors together help in achieving the organisational objectives.
✤ Social Process
✍ always linked to society- CSR
✤ Dynamic Function
✍ people change, process may change, level and hierarchy may change
✍ Management has to keep on forecasting these changes and take appropriate actions
✍ Has to be flexible and adjusting to cope up with the changing environment
✤ Profession
- specialised body of knowledge which is acquired by a person through specialised training
✍ something which earns you a livelihood
✤ Situational
✍ it depends on the situation how we implement the practices and principles of management
✤ Intangible force
✍ as a function you cannot see it.
✍ There is no visibility
Functions Of Management
✤ Planning:
✍ Process by which you think in advance
✍ thinking activity or function, forward looking- what can happen in the organisation
✍ Deciding all things in advance
✍ Asking questions:
✍ What to do
✍ How to do
✍ When to do
✍ Who will do it
✍ Has risk and uncertainty and requires expertise
✤ Organising
✍ Identification of activities.
✍ Classification of grouping of activities.
✍ Assignment of duties.
✍ Delegation of authority and creation of responsibility.
✍ Coordinating authority and responsibility relationships.
✤ Staffing
✍ Manpower Planning
✍ Training and development
✍ Remuneration
✍ Performance appraisal
✍ Promotions
✤ Directing
✍ Supervision- implies overseeing the work of subordinates by their superiors. It is the act of
watching & directing work & workers.
✍ Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work.
Positive, negative, monetary, non-monetary incentives may be used for this purpose.
✍ Leadership- may be defined as a process by which manager guides and influences the work of
subordinates in desired direction.
✍ Communications- is the process of passing information, experience, opinion etc from one
person to another. It is a bridge of understanding.
✤ Controlling:
✍ Establishment of standard performance
✍ Measurement of actual performance.
✍ Comparison of actual performance with the standards and finding out deviation if any.
✍ Corrective action.
Importance Of Management
✤ It helps in achieving group goals.
✍ It arranges the factors of production, assembles and organizes the resources, integrates the
resources in effective manner to achieve goals.
✍ Management converts disorganised resources of men, machines, money etc. into useful
enterprise.
✍ These resources are coordinated, directed and controlled in such a manner that enterprise
work towards attainment of goals.
✤ Optimum utilisation of resources.
✍ Management utilizes all the physical & human resources productively. This leads to efficacy
in management.
✤ Reduces Costs
✍ It gets maximum results through minimum input by proper planning
✍ uses physical, human and financial resources in such a manner which results in best
combination. This helps in cost reduction.
✤ Establishes sound organisation.
✍ No overlapping of efforts (smooth and coordinated functions).
✍ it establishes effective authority & responsibility relationship i.e. who is accountable to
whom, who can give instructions to whom, who are superiors & who are subordinates.
✍ Management fills up various positions with right persons, having right skills, training and
qualification.
✤ Establish equilibrium
✍ It enables the organization to survive in changing environment. It keeps in touch with the
changing environment. With the change is external environment, the initial co-ordination of
organization must be changed.
✤ Essential for prosperity of society
✍ Good management makes a difficult task easier by avoiding wastage of scarce resource.
Management Theories
THE CLASSICAL SCHOOL
The classical school is the oldest formal school of management thought. Its roots pre-date the
twentieth century. The classical school of thought generally concerns ways to manage work and
organizations more efficiently. Three areas of study that can be grouped under the classical school
are scientific management, administrative management, and bureaucratic management.
✤ SCIENTIFIC MANAGEMENT.
In the late 19th century, management decisions were often arbitrary and workers often worked at an
intentionally slow pace. There was little in the way of systematic management and workers and
management were often in conflict.
Scientific management - the systematic study of work methods in order to improve efficiency.
Frederick W. Taylor was its main proponent. Other major contributors were Frank Gilbreth, Lillian
Gilbreth, and Henry Gantt.
Principles of Scientific management
✍ application of the scientific method to work in order to determine the best method for
accomplishing each task.
✍ workers should be scientifically selected based on their qualifications and trained to perform
their jobs in the optimal manner.
✍ advocates genuine cooperation between workers and management based on mutual self-
interest.
✍ management should take complete responsibility for planning the work and that workers'
primary responsibility should be implementing management's plans.
✍ scientific development of difficult but fair performance standards and the implementation of a
pay-for-performance incentive plan based on work standards.
Many of the tenets of scientific management are still valid today.
✤ ADMINISTRATIVE MANAGEMENT.
Administrative management focuses on the management process and principles of management. In
contrast to scientific management, which deals largely with jobs and work at the individual level of
analysis, administrative management provides a more general theory of management. Henri Fayol is
the major contributor to this school of management thought.
✍ management was a universal process consisting of functions, which he termed planning,
organizing, commanding, coordinating, and controlling.
✍ Fayol also presented fourteen principles of management, which included maxims related to
the division of work, authority and responsibility, unity of command and direction,
centralization, subordinate initiative, and team spirit.
Although administrative management has been criticized as being rigid and inflexible and the
validity of the functional approach to management has been questioned, this school of thought still
influences management theory and practice.
✤ BUREAUCRATIC MANAGEMENT.
Bureaucratic management focuses on the ideal form of organization.
✍ Max Weber was the major contributor to bureaucratic management.
✍ Based on observation, Weber concluded that many early organizations were inefficiently
managed, with decisions based on personal relationships and loyalty.
✍ He proposed that a form of organization, called a bureaucracy, characterized by division of
labor, hierarchy, formalized rules, impersonality, and the selection and promotion of
employees based on ability, would lead to more efficient management.
✍ Bureaucracy has come to stand for inflexibility and waste, but Weber did not advocate or
favor the excesses found in many bureaucratic organizations today. Weber's ideas formed the
basis for modern organization theory and are still descriptive of some organizations.
THE BEHAVIORAL SCHOOL
The behavioral school of management thought developed, in part, because of perceived weaknesses
in the assumptions of the classical school. The classical school emphasized efficiency, process, and
principles. Some felt that this emphasis disregarded important aspects of organizational life,
particularly as it related to human behavior.
HUMAN RELATIONS.
One of the major conclusions of the Hawthorne studies was
✍ workers’ attitudes are associated with productivity.
✍ the workplace is a social system and informal group influence could exert a powerful effect
on individual behavior. -
✍ the style of supervision is an important factor in increasing workers' job satisfaction.
✍ The studies also found that organizations should take steps to assist employees in adjusting to
organizational life by fostering collaborative systems between labor and management.
✍ The focus became satisfying worker needs. If worker needs were satisfied, the workers would
in turn be more productive. Thus, the human relations school focuses on issues of
communication, leadership, motivation, and group behavior.
✍ Best-known contributors include Mary Parker Follett, Chester Barnard, Abraham Maslow,
Kurt Lewin, Renais Likert, and Keith Davis.
✍ The human relations school of thought still influences management theory and practice, as
contemporary management focuses much attention on human resource management,
organizational behavior, and applied psychology in the workplace.
BEHAVIORAL SCIENCE.
✍ Behavioral science and the study of organizational behavior emerged in the 1950s and 1960s.
✍ The behavioral science school was a natural progression of the human relations movement.
✍ It focused on applying conceptual and analytical tools to the problem of understanding and
predicting behavior in the workplace.
✍ The behavioral science school has contributed to the study of management through its focus
on personality, attitudes, values, motivation, group behavior, leadership, communication, and
conflict, among other issues.
✍ Some of the major contributors to this school include Douglas McGregor, Chris Argyris,
Frederick Herzberg, Renais Likert, and Ralph Stogdill, although there are many others.
THE QUANTITATIVE SCHOOL
The quantitative school focuses on improving decision making via the application of quantitative
techniques. Its roots can be traced back to scientific management.
MANAGEMENT SCIENCE AND MIS.
✍ Management science (also called operations research) uses mathematical and statistical
approaches to solve management problems.
✍ George Dantzig developed linear programming, an algebraic method to determine the optimal
allocation of scarce resources.
✍ The advent of the computer made many management science tools and concepts more
practical for industry.
✍ MIS focuses on providing needed information to managers in a useful format and at the
proper time. Decision support systems (DSS) attempt to integrate decision models, data, and
the decision maker into a system that supports better management decisions.
PRODUCTION AND OPERATIONS MANAGEMENT.
This school focuses on the operation and control of the production process that transforms resources
into finished goods and services.
Operations management emphasizes productivity and quality of both manufacturing and service
organizations.
W. Edwards Deming exerted a tremendous influence in shaping modern ideas about improving
productivity and quality.
Major areas of study within operations management include capacity planning, facilities location,
facilities layout, materials requirement planning, scheduling, purchasing and inventory control,
quality control, computer integrated manufacturing, just-in-time inventory systems, and flexible
manufacturing systems.
SYSTEMS SCHOOL
✍ The systems school focuses on understanding the organization as an open system that
transforms inputs into outputs.
✍ This school is based on the work of a biologist, Ludwig von Bertalanffy
✍ The systems school began to have a strong impact on management thought in the 1960s as a
way of thinking about managing techniques that would allow managers to relate different
specialties and parts of the company to one another, as well as to external environmental
factors.
✍ its influence on management thought has diminished somewhat. It has been criticized as too
abstract and too complex.
✍ However, many of the ideas inherent in the systems school formed the basis for the
contingency school of management.
CONTINGENCY SCHOOL
✍ The contingency school focuses on applying management principles and processes as dictated
by the unique characteristics of each situation.
✍ there is no one best way to manage and that it depends on various situational factors, such as
the external environment, technology, organizational characteristics, characteristics of the
manager, and characteristics of the subordinates.
✍ Contingency theorists often implicitly or explicitly criticize the classical school for its
emphasis on the universality of management principles;
✍ The contingency school originated in the 1960s.
✍ optimal organizational structure has been theorized to depend upon organizational size,
technology, and environmental uncertainty; optimal leadership style, meanwhile, has been
theorized to depend upon a variety of factors, including task structure, position power,
characteristics of the work group, characteristics of individual subordinates, quality
requirements, and problem structure etc
References:
Juneja, Prachi. "MSG Management Study Guide." Porters Five Forces Analysis of the Airlines
Industry in the United States. Accessed August 26, 2018. https://www.managementstudyguide.com/
management_importance.htm
"MANAGEMENT THOUGHT." Reference for Business. Accessed August 26, 2018. http://
www.referenceforbusiness.com/management/Log-Mar/Management-Thought.html.
"Evolution of Management Thoughts (Managerial Function)." Indian Current Affairs. Accessed
August 26, 2018. https://www.civilserviceindia.com/subject/Management/notes/evolution-of-
management-thoughts.html.
Gardencitycollegeit. "Introduction to Management." YouTube. November 07, 2015. Accessed
August 26, 2018. https://www.youtube.com/watch?v=cYmqzdI1XOI.

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1.pdf

  • 1. Introduction to Management Management Manage …. Men Art of getting things done through others To forecast to control, plan evaluate to get work done - Henry Fayol Management is a processs by which you do planning, organising, staffing, directing, controlling the activities in an organisation. Characteristics Of Management ✤ Multidisciplinary ✍ It has not evolved by itself Evolved from various other disciplines like psychology, Sociology, anthropology ✤ Group activity ✍ Many people are involved, work as teams ✍ Superiors, subordinates, co-workers- culminating the efforts of a group of people to achieve something. ✤ Factor of production ✍ management deals with 5 factors ✍ The five Ms ✍ Men, Materials, Methods, Money, Machines ✍ These five factors together help in achieving the organisational objectives. ✤ Social Process ✍ always linked to society- CSR ✤ Dynamic Function ✍ people change, process may change, level and hierarchy may change ✍ Management has to keep on forecasting these changes and take appropriate actions ✍ Has to be flexible and adjusting to cope up with the changing environment ✤ Profession - specialised body of knowledge which is acquired by a person through specialised training ✍ something which earns you a livelihood ✤ Situational ✍ it depends on the situation how we implement the practices and principles of management ✤ Intangible force ✍ as a function you cannot see it.
  • 2. ✍ There is no visibility Functions Of Management ✤ Planning: ✍ Process by which you think in advance ✍ thinking activity or function, forward looking- what can happen in the organisation ✍ Deciding all things in advance ✍ Asking questions: ✍ What to do ✍ How to do ✍ When to do ✍ Who will do it ✍ Has risk and uncertainty and requires expertise ✤ Organising ✍ Identification of activities. ✍ Classification of grouping of activities. ✍ Assignment of duties. ✍ Delegation of authority and creation of responsibility. ✍ Coordinating authority and responsibility relationships. ✤ Staffing ✍ Manpower Planning ✍ Training and development ✍ Remuneration ✍ Performance appraisal ✍ Promotions ✤ Directing ✍ Supervision- implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work & workers. ✍ Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work. Positive, negative, monetary, non-monetary incentives may be used for this purpose. ✍ Leadership- may be defined as a process by which manager guides and influences the work of subordinates in desired direction. ✍ Communications- is the process of passing information, experience, opinion etc from one person to another. It is a bridge of understanding. ✤ Controlling: ✍ Establishment of standard performance ✍ Measurement of actual performance. ✍ Comparison of actual performance with the standards and finding out deviation if any. ✍ Corrective action.
  • 3. Importance Of Management ✤ It helps in achieving group goals. ✍ It arranges the factors of production, assembles and organizes the resources, integrates the resources in effective manner to achieve goals. ✍ Management converts disorganised resources of men, machines, money etc. into useful enterprise. ✍ These resources are coordinated, directed and controlled in such a manner that enterprise work towards attainment of goals. ✤ Optimum utilisation of resources. ✍ Management utilizes all the physical & human resources productively. This leads to efficacy in management. ✤ Reduces Costs ✍ It gets maximum results through minimum input by proper planning ✍ uses physical, human and financial resources in such a manner which results in best combination. This helps in cost reduction. ✤ Establishes sound organisation. ✍ No overlapping of efforts (smooth and coordinated functions). ✍ it establishes effective authority & responsibility relationship i.e. who is accountable to whom, who can give instructions to whom, who are superiors & who are subordinates. ✍ Management fills up various positions with right persons, having right skills, training and qualification. ✤ Establish equilibrium ✍ It enables the organization to survive in changing environment. It keeps in touch with the changing environment. With the change is external environment, the initial co-ordination of organization must be changed.
  • 4. ✤ Essential for prosperity of society ✍ Good management makes a difficult task easier by avoiding wastage of scarce resource. Management Theories THE CLASSICAL SCHOOL The classical school is the oldest formal school of management thought. Its roots pre-date the twentieth century. The classical school of thought generally concerns ways to manage work and organizations more efficiently. Three areas of study that can be grouped under the classical school are scientific management, administrative management, and bureaucratic management. ✤ SCIENTIFIC MANAGEMENT. In the late 19th century, management decisions were often arbitrary and workers often worked at an intentionally slow pace. There was little in the way of systematic management and workers and management were often in conflict. Scientific management - the systematic study of work methods in order to improve efficiency. Frederick W. Taylor was its main proponent. Other major contributors were Frank Gilbreth, Lillian Gilbreth, and Henry Gantt. Principles of Scientific management ✍ application of the scientific method to work in order to determine the best method for accomplishing each task. ✍ workers should be scientifically selected based on their qualifications and trained to perform their jobs in the optimal manner.
  • 5. ✍ advocates genuine cooperation between workers and management based on mutual self- interest. ✍ management should take complete responsibility for planning the work and that workers' primary responsibility should be implementing management's plans. ✍ scientific development of difficult but fair performance standards and the implementation of a pay-for-performance incentive plan based on work standards. Many of the tenets of scientific management are still valid today. ✤ ADMINISTRATIVE MANAGEMENT. Administrative management focuses on the management process and principles of management. In contrast to scientific management, which deals largely with jobs and work at the individual level of analysis, administrative management provides a more general theory of management. Henri Fayol is the major contributor to this school of management thought. ✍ management was a universal process consisting of functions, which he termed planning, organizing, commanding, coordinating, and controlling. ✍ Fayol also presented fourteen principles of management, which included maxims related to the division of work, authority and responsibility, unity of command and direction, centralization, subordinate initiative, and team spirit. Although administrative management has been criticized as being rigid and inflexible and the validity of the functional approach to management has been questioned, this school of thought still influences management theory and practice. ✤ BUREAUCRATIC MANAGEMENT.
  • 6. Bureaucratic management focuses on the ideal form of organization. ✍ Max Weber was the major contributor to bureaucratic management. ✍ Based on observation, Weber concluded that many early organizations were inefficiently managed, with decisions based on personal relationships and loyalty. ✍ He proposed that a form of organization, called a bureaucracy, characterized by division of labor, hierarchy, formalized rules, impersonality, and the selection and promotion of employees based on ability, would lead to more efficient management. ✍ Bureaucracy has come to stand for inflexibility and waste, but Weber did not advocate or favor the excesses found in many bureaucratic organizations today. Weber's ideas formed the basis for modern organization theory and are still descriptive of some organizations. THE BEHAVIORAL SCHOOL The behavioral school of management thought developed, in part, because of perceived weaknesses in the assumptions of the classical school. The classical school emphasized efficiency, process, and principles. Some felt that this emphasis disregarded important aspects of organizational life, particularly as it related to human behavior. HUMAN RELATIONS. One of the major conclusions of the Hawthorne studies was ✍ workers’ attitudes are associated with productivity. ✍ the workplace is a social system and informal group influence could exert a powerful effect on individual behavior. -
  • 7. ✍ the style of supervision is an important factor in increasing workers' job satisfaction. ✍ The studies also found that organizations should take steps to assist employees in adjusting to organizational life by fostering collaborative systems between labor and management. ✍ The focus became satisfying worker needs. If worker needs were satisfied, the workers would in turn be more productive. Thus, the human relations school focuses on issues of communication, leadership, motivation, and group behavior. ✍ Best-known contributors include Mary Parker Follett, Chester Barnard, Abraham Maslow, Kurt Lewin, Renais Likert, and Keith Davis. ✍ The human relations school of thought still influences management theory and practice, as contemporary management focuses much attention on human resource management, organizational behavior, and applied psychology in the workplace. BEHAVIORAL SCIENCE. ✍ Behavioral science and the study of organizational behavior emerged in the 1950s and 1960s. ✍ The behavioral science school was a natural progression of the human relations movement. ✍ It focused on applying conceptual and analytical tools to the problem of understanding and predicting behavior in the workplace. ✍ The behavioral science school has contributed to the study of management through its focus on personality, attitudes, values, motivation, group behavior, leadership, communication, and conflict, among other issues. ✍ Some of the major contributors to this school include Douglas McGregor, Chris Argyris, Frederick Herzberg, Renais Likert, and Ralph Stogdill, although there are many others.
  • 8. THE QUANTITATIVE SCHOOL The quantitative school focuses on improving decision making via the application of quantitative techniques. Its roots can be traced back to scientific management. MANAGEMENT SCIENCE AND MIS. ✍ Management science (also called operations research) uses mathematical and statistical approaches to solve management problems. ✍ George Dantzig developed linear programming, an algebraic method to determine the optimal allocation of scarce resources. ✍ The advent of the computer made many management science tools and concepts more practical for industry. ✍ MIS focuses on providing needed information to managers in a useful format and at the proper time. Decision support systems (DSS) attempt to integrate decision models, data, and the decision maker into a system that supports better management decisions. PRODUCTION AND OPERATIONS MANAGEMENT. This school focuses on the operation and control of the production process that transforms resources into finished goods and services. Operations management emphasizes productivity and quality of both manufacturing and service organizations.
  • 9. W. Edwards Deming exerted a tremendous influence in shaping modern ideas about improving productivity and quality. Major areas of study within operations management include capacity planning, facilities location, facilities layout, materials requirement planning, scheduling, purchasing and inventory control, quality control, computer integrated manufacturing, just-in-time inventory systems, and flexible manufacturing systems. SYSTEMS SCHOOL ✍ The systems school focuses on understanding the organization as an open system that transforms inputs into outputs. ✍ This school is based on the work of a biologist, Ludwig von Bertalanffy ✍ The systems school began to have a strong impact on management thought in the 1960s as a way of thinking about managing techniques that would allow managers to relate different specialties and parts of the company to one another, as well as to external environmental factors. ✍ its influence on management thought has diminished somewhat. It has been criticized as too abstract and too complex. ✍ However, many of the ideas inherent in the systems school formed the basis for the contingency school of management.
  • 10. CONTINGENCY SCHOOL ✍ The contingency school focuses on applying management principles and processes as dictated by the unique characteristics of each situation. ✍ there is no one best way to manage and that it depends on various situational factors, such as the external environment, technology, organizational characteristics, characteristics of the manager, and characteristics of the subordinates. ✍ Contingency theorists often implicitly or explicitly criticize the classical school for its emphasis on the universality of management principles; ✍ The contingency school originated in the 1960s. ✍ optimal organizational structure has been theorized to depend upon organizational size, technology, and environmental uncertainty; optimal leadership style, meanwhile, has been theorized to depend upon a variety of factors, including task structure, position power, characteristics of the work group, characteristics of individual subordinates, quality requirements, and problem structure etc References: Juneja, Prachi. "MSG Management Study Guide." Porters Five Forces Analysis of the Airlines Industry in the United States. Accessed August 26, 2018. https://www.managementstudyguide.com/ management_importance.htm "MANAGEMENT THOUGHT." Reference for Business. Accessed August 26, 2018. http:// www.referenceforbusiness.com/management/Log-Mar/Management-Thought.html. "Evolution of Management Thoughts (Managerial Function)." Indian Current Affairs. Accessed August 26, 2018. https://www.civilserviceindia.com/subject/Management/notes/evolution-of- management-thoughts.html.
  • 11. Gardencitycollegeit. "Introduction to Management." YouTube. November 07, 2015. Accessed August 26, 2018. https://www.youtube.com/watch?v=cYmqzdI1XOI.