A771256229_28161_1_2022_Unit-1 lecture notes.ppt

Management Definitions
• Louis E Boone & David L Kurtz- The use of people and other
resources to accomplish objectives.
• Mary Parker Follet- the act of getting things done through people.
• Frederick Taylor defines Management as the art of knowing what you
want to do in the best and cheapest way

Characteristics of Management
• Management is a distinct process.
• Management is an organized activity
• Management aims at the accomplishment of predetermined
objectives.
• Management is both a science and an art.
• Management is a group activity
• Management principles are universal in nature
• Management integrates human and other resources.

MANAGERIAL SKILLS
HUMAN
TECHNI
CAL
CONCEPTUAL

TECHNICAL SKILLS
A persons’ knowledge and ability to make effective use of any process or technique
constitutes his technical skills.
For eg: Engineer, accountant, data entry operator, lawyer, doctor etc.

HUMAN SKILLS
An individuals’ ability to cooperate with other members of the organization and
work effectively in teams.
For eg: Interpersonal relationships, solving people’s problem and acceptance of
other employees.

CONCEPTUAL SKILLS
Ability of an individual to analyze complex situations and to rationally process and
interpret available information.
For eg: Idea generation and analytical process of information.

• Mintzberg published his Ten Management Roles in his book,
"Mintzberg on Management: Inside our Strange World of
Organizations," in 1990. The ten roles are:
• Figurehead.
• Leader.
• Liaison.
• Monitor.
• Disseminator.
• Spokesperson.
• Entrepreneur.
• Disturbance Handler.
• Resource Allocator.
• Negotiator.

CATEGORY ROLE
A) Interpersonal 1) Figurehead
2) Leader
3) Liaison
B) Informational 4) Monitor
5) Disseminator
6) Spokesperson
C) Decisional 7) Entrepreneur
8) Disturbance Handler
9) Resource Allocator
10) Negotiator
The 10 roles are then divided up into three categories, as
follows:

The Roles
• Let's look at each of the ten roles in greater detail.
• Interpersonal Category: The roles in this category involve providing information and ideas.
• Figurehead - As a manager, you have social, ceremonial and legal responsibilities. You're expected to be a source of inspiration. People
look up to you as a person with authority, and as a figurehead.
• Leader - This is where you provide leadership for your team, your department or perhaps your entire organization; and it's where you
manage the performance and responsibilities of everyone in the group.
• Liaison - Managers must communicate with internal and external contacts. You need to be able to network effectively on behalf of your
organization.
• Informational Category: The roles in this category involve processing information.
• Monitor - In this role, you regularly seek out information related to your organization and industry, looking for relevant changes in the
environment. You also monitor your team, in terms of both their productivity, and their well-being.
• Disseminator - This is where you communicate potentially useful information to your colleagues and your team.
• Spokesperson - Managers represent and speak for their organization. In this role you're responsible for transmitting information about
your organization and its goals to the people outside it.
• Decisional Category: The roles in this category involve using information.
• Entrepreneur - As a manager, you create and control change within the organization. This means solving problems, generating new ideas,
and implementing them.
• Disturbance Handler - When an organization or team hits an unexpected roadblock, it's the manager who must take charge. You also
need to help mediate disputes within it.
• Resource Allocator - You'll also need to determine where organizational resources are best applied. This involves allocating funding, as
well as assigning staff and other organizational resources.
• Negotiator - You may be needed to take part in, and direct, important negotiations within your team, department, or organization.

Historical Background of
Management
Ancient Management
 Egypt (pyramids), China (Great Wall), the Qutab Minar and Taj Mehal are
tangible evidence that projects of tremendous scope, employing tens of
thousands of people completed in ancient times
 In Venice, warships were floated among the canals and it was look like a
car “floating” along an automobile assembly line
 Adam Smith published “Wealth of Nations” in which he argued about
division of labor (or job specialization) by using example of pin industry
 In late 18th century Industrial Revolution changed management history
and human power was replaced by machine power
 In Industrial Revolution factories were established and someone had to
forecast demand, ensuring availability of raw material, assigning tasks
and directing daily activities

Exhibit 2–1 Major Approaches to Management

Approaches to Management
1. Classical Approach
 Formal study of management began until early in 20th
century and these first studies of management called
Classical Approach
 It emphasized rationality and making organizations and
workers as efficient as possible
 This classical approach consisted two major theories
(a) Scientific Management
(b) General Administrative Theory

• Fredrick Winslow Taylor
• The “father” of scientific management
• Published Principles of Scientific Management (1911)
Says “Management is a science. There is one
best way and one best person to do the task. I
love efficiency and I love to study people at
work. Management should be an academic
discipline.” (He had a point…)
His work influenced:
Bringing psychology into the workplace
Gantt Chart and planning
Harvard University Offering Management Degree
(A) Scientific Management:

2–15
Exhibit 2–2 Taylor’s Scientific Management Principles
1. Develop a science for each element of an individual’s work, which
will replace the old rule-of-thumb method.
2. Scientifically select and then train, teach, and develop the worker.
3. Heartily cooperate with the workers so as to ensure that all work
is done in accordance with the principles of the science that has
been developed.
4. Divide work and responsibility almost equally between
management and workers. Management takes over all work for
which it is better fitted than the workers.

 An approach to management that focuses on describing what
managers do and what constitutes good management practices
 The two prominent individuals behind this theory were Henri Fayol
and Max Weber
Henri Fayol:
 Fayol first identified five functions of management planning,
organizing, commanding, coordinating and controlling
 Taylor was concerned with first-line managers while Fayal's attention
was directed at all levels of management
 Henri Fayol developed 14 Principles of Management------
Fundamental rules of management that could be applied in all
organizational structures and taught in schools

Max Weber
 Weber was a German Sociologist and in 1900 he developed a theory of
authority structures and relations based on an ideal type of organization he
called a Bureaucracy
 Bureaucracy----- A form of organization characterized by division of labor, a
clearly defined hierarchy, detailed rules and regulations and impersonal
relationships
Use of General Administrative Theory in Recent World
 Functional view of a manger’s job can be attributed to Fayol
 Many current management concepts-----such as managerial authority,
centralized decision making, reporting to only one boss have evolved from
Fayal's 14 Principles of Management
 Weber’s bureaucratic model is still applicable in many organizations such as
UTV and Infosays but in present world it is not considered too much effective
because it hinders employee creativity and efficiency

• Henri Fayol
• Principles of Management
• Max Weber
• Developed a theory of authority based on an ideal type of
organization (bureaucracy)
• Emphasized rationality, predictability, impersonality, technical
competence, and authoritarianism

Exhibit 2–3 Fayol’s 14 Principles of
Management
1. Division of work
2. Authority
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of
individual interests
to the general
interest
7. Remuneration
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure
of personnel
13. Initiative
14. Esprit de corps

2. Quantitative Approach to Management
 The use of quantitative techniques to improve decision
making and this approach is also known as Management
Science
 Evolved from mathematical and statistical methods developed to
solve WW-II military logistics and quality control problems
 British and American military had developed techniques using
math/stats to plan for attacks, convoy sizes, bombing raids, etc…
 Focuses on improving managerial decision making by applying:
 Statistics, optimization models, information models, and computer
simulations
 Computers do most of this work today

Total Quality Management (TQM):
 A quality revolution swept through both business and public sectors in
1980s and 1990s
 It was inspired by a small group of quality experts, the most famous
being W. Edwards Deming and Joseph M. Juran and their ideas and
techniques became the basis for today’s quality management programs
 TQM is a management philosophy devoted to continual improvement
and responding to customer needs and expectations
 TQM was a departure from earlier management approaches that were
based on the belief that keeping costs low is the only way to improve
productivity
 The Japanese demonstrated that it was possible for the highest quality
manufacturers to be among the lowest-cost producers

What Is Quality Management?
 Intense focus on the Customer---Both Internal and External
 Concern for Continual Improvement---- Being not satisfied
 Process-Focused------ Focus on work processes
 Improvement in the Quality of Everything----- In each and
every aspect of the organization
 Accurate Measurement---- Statistical techniques are used
to measure every critical variable in an organization and
then these are compared with set standards e.g. 6-Sigma
 Empowerment of Employees------Decentralized
organizational environment and teams are widely used to
find and fix the quality problems

How Today’s Managers use Quantitative Approach
 Queue Management: Science of keeping lines moving--- Many
organizations use queuing theory for their customers in order to avoid
rush and customer dissatisfaction e.g. Indian Railway uses Railway
Reservation Systems
 Call centers also use the same logic to queue the receiver’s call
 Tour operators make their real time availability and confirmation to
the domestic and inbound travelers in the City Tour in India
 The Quantitative Approach contributes directly to management
decision making in the areas of planning and control
 In organizations many activities like budgeting, queuing, scheduling,
quality control and similar techniques based on quantitative approach
to management

3. Behavioral Approach
Organizational Behavior (OB)
“The field of study that researches the actions (behaviors) of
people at workplace is called OB”.
 Much of what managers do today when managing people----
motivating, leading, building trust, working with a team, managing
conflict and so forth--- has come out of OB research
Early Advocates of Organizational Behavior
 Four personalities stand out as early advocates of OB approach: Robert
Owen, Hugo Munsterberg, Mary Parker and Chester Bernard
 Inspite of their distinctive work they all were believed that people are the
most important asset of an organization and must be managed accordingly
 Their ideas provided the foundation for such management practices as
employee selection procedures, motivation programs, and work teams

3. Behavioral Approach
How Today’s Managers Use the Behavioral Approach
 From the way that mangers design jobs to the way that they work
with employee teams to the way that they communicate, we see
elements of behavioral approach
 Much of what the early advocates of OB proposed and the
conclusions of the Hawthorne Studies have provided the
foundation for our current theories of motivation, leadership,
group behavior and development, and numerous other behavioral
approaches

•A series of productivity experiments conducted
at Western Electric from 1924 to 1932.
•Experimental findings
Productivity unexpectedly increased under imposed
adverse working conditions.
The effect of incentive plans was less than
expected.
•Research conclusion
Social norms, group standards and attitudes more
strongly influence individual output and work behavior
than do monetary incentives.
The Hawthorne Studies

4. Contemporary Approach
 Previous three approaches to management were focused on
manager’s concerns Inside and organization but due to
Contemporary Approach researchers began to look in the
external environment of the organization
 Two contemporary management perspectives are part of this
approach
(a) Systems Theory
(b) Contingency Approach

(a) Systems Theory
 In 1960 the management researchers began to look more carefully at
systems theory and it was considered that system theory is a basic
theory in the physical sciences and it can also be applied to organized
human efforts
System: A system is a set of interrelated and interdependent parts
arranged in a manner that produces a unified whole
(i) Closed Systems: Systems that are not influenced by and do not
interact with their environment
(ii) Open Systems: Systems that are interact with their environment
 Today when we describe organizations as systems-----we mean Open
Systems

The Organization as an Open
System

Implications of the Systems Approach
• Coordination of the organization’s parts is essential for proper
functioning of the entire organization (i.e.: For production and operations
their must be strong coordination among, marketing, finance, HR and
SCM functions)
• Decisions and actions taken in one area of the organization will have an
effect in other areas of the organization (i.e.; If purchasing department
does not acquire the right quantity and quality of inputs it will suffer the
activities of production department)
• Organizations are not self-contained and, therefore, must adapt to
changes in their external environment (i.e.: They rely on their
environment for essential inputs and as outlets to absorb their outputs---
-Organizations should not ignore Govt. regulations, supplier relations or
varied external constituencies on which it depends)

(b) The Contingency Approach
 The early management theorists focuses on principles that they
generally assumed to be universally applicable
 In later research many exceptions were found e.g.: Inspite of
division of labor jobs can be too specialized, In many situations
other structural designs are important than that of Bureaucracy
 The Contingency Approach---- Also called Situational Approach, a
management approach which says that organizations are different,
face different situations and require different ways of managing
 There is no one universally applicable set of management principles
(rules) by which to manage organizations

The Contingency Approach and Managers
 A good way to describe Contingency is “If, the”: If this is the way
my situation is, then this is the best way for me to mange in this
situation
 This approach is intuitively logical because organizations and even
units within the same organizations differ----in terms of size, goals,
work activities and the like
 Management researches continue working on these situational
variables and more than 100 different variables have been
identified
 The primary value of contingency approach is that it stresses that
there are no simplistic or universal rules for managers to follow

E Popular Contingency Variables
• Organization size
• As size increases, so do the problems of coordination.
• Routineness of task technology
• Routine technologies require organizational structures,
leadership styles, and control systems that differ from
those required by customized or non-routine
technologies.
• Environmental uncertainty
• What works best in a stable and predictable environment
may be totally inappropriate in a rapidly changing and
unpredictable environment.
• Individual differences
• Individuals differ in terms of their desire for growth,
autonomy, tolerance of ambiguity, and expectations.

FUNCTIONS OF MANAGEMENT
• PLANNING
• ORGANIZING
• STAFFING
• DIRECTING
• CONTROLLING

• Planning is determining the objectives and formulating the methods
to achieve them. It is more simply said than done. A job well planned
is half done. During planning one needs to ask oneself the following:
• What am I trying to accomplish i.e. what is my objective?
• What resources do I have and do I need to accomplish the same?
• What are the methods and means to achieve the objectives?
• Is this the optimal path?
PLANNING

• Purposes or missions,
• Objectives-It is the ultimate goal towards which the activities of the
organization are directed
• Strategies-general program of action and deployment of resources
• Policies-general statement or understanding which guide or channel
thinking in decision making
• Procedures-states a series of related steps or tasks to be performed in a
sequential way
• Rules-prescribes a course of action and explicitly states what is to be done
• Programs-comprehensive plan that includes future use of different
resources
• Budgets-statement of expected results expressed in numerical terms
Types of Planning

• Take Time to Plan
• Planning can be Top to Down or Bottom to Top
• Involve and Communicate with all those Concerned
• Plans must be Flexible and Dynamic
• Evaluate and Revise
Principles of Planning

1. Determining the goals or objectives for the entire organization.
2. Making assumptions on various elements of the environment.
3. To decide the planning period.
4. Examine alternative courses of actions.
5. Evaluating the alternatives.
6. Real point of decision making
7. To make derivative plans.
Steps in Planning

• Programmed
• Non programmed.
• Mechanistic-It is one that is routine and repetitive in nature
• Analytical-It involves a problem with a larger number of decision variables
• Judgmental-It involves a problem with a limited number of decision variables, but
the outcomes of decision alternatives are unknown
• Adaptive-It involves a problem with a large number of decision variables, where
outcomes are not predictable
Types of Managerial Decisions:

• Determine what is to be done/ Division of Work:
• Assign Tasks: Departmentalization:
• Link Departments: Hierarchy Development:
• Decide how much Authority to Designate/ Authority, Responsibility and
Delegation:
• Decide the Levels at which Decisions are to be made / Centralization vs.
Decentralization:
• Decide how to Achieve Coordination:
Process of Organizing

• Coordination by Rules or Procedures
• Coordination by Targets or Goals:
• Coordination through the Hierarchy
• Coordination through Departmentalization
• Using a Staff Assistant for Coordination:
• Using a Liaison for Coordination:
• Using a Committee for Coordination
• Using Independent Integrators for Coordination:
• Coordination through Mutual Adjustment:
Techniques for achieving coordination.

Definition 1
• Selecting and training individuals for specific job functions, and
charging them with the associated responsibilities.
Definition 2
• Number of employed personnel in an organization or program.
Also called workforce.
STAFFING

• Provides positive and dynamic leadership
• Provides maximum opportunities
• Provides proper motivation of personnel
• Ability to command people
DIRECTING/LEADING

• Feed Forward Control-Control that attempts to identify and prevent deviations
before they occur is called feed forward control, sometimes called preliminary or
preventive control.
• Concurrent Control-Control that monitors ongoing employee activities during
their progress, to ensure they are consistent with quality standards, is called
concurrent control.
• Feedback Control-In this case, the control takes place after the action.
Sometimes called post-action or output control
CONTROLLING CONCEPTS

• Establish Standards of Performance
• Measure Actual Performance
• Compare Performance to Standards:
• Take Corrective Action
Steps in the Control Process

• Effective controls are timely.
• Control standards should encourage compliance.
• Setting effective standards is important
• Use management by exception.
• Employees should get fast feedback on performance.
• Do not over rely on control reports.
• Fit the amount of control to the task.
Principles of Effective Control

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