These lecture notes cover various conceptual perspectives in business management. It discusses management terms, processes, roles and skills. It also examines the evolution of management as a discipline, including early approaches like scientific management, administrative theory, and bureaucratic management. The document provides an overview of foundational management concepts.

1. Lecture Notes on
Basic Conceptual Perspectives in
Business Management
Compiled by
Chandra P. Rijal, PhD in Leadership
Nepal College of Management
Lalitpur, Nepal
[Spring, 2015]
March 15, 2015 1

2. Perspectives of Management
This session will help you to --
understand the management terms like managers,
employees, efficiency and effectiveness, and
management,
learn management process, managerial roles and
essential skills,
understand the various evolutionary concepts of
management as a discipline, and
learn essentials of high performing managers.
March 15, 2015 2

3. ORGANIZATION
 The term ‘organization’ may be referred to as a
systematic arrangement of resources brought
together to accomplish some specific purpose of
an institution.
 These resources are people dominant in an
organizational process climate.
 In addition to people arrangement, efficient and
effective allocation of other resources is also
equally important in management of an
institution.March 15, 2015 3

4. An institution is distinct by its …
* Vision
* Mission
* Objectives
* Goals
* Strategy, and
* Tactics
March 15, 2015 4
An institution
may have its
goal
structure
and
people

5. Operatives
• People who work directly on a job or task
and have no responsibility for overseeing the
work of others.
• Known as employees.
• Operatives in a university college?
March 15, 2015 5

6. Managers …
Individuals in an organization, who direct the
activities of others (operatives)
Questions for discussion:
1.How are managers different from operatives at
schools?
2.How operatives and managers contribute for the
betterment of the institution as a social entity?
March 15, 2015 6

7. MANAGERS Vs. ENTREPRENEURS
¤ Entrepreneurs are the people who pursue business
opportunities, fulfilling needs and wants through
innovation.
¤ Entrepreneurs are the innovative people who give
birth to the new businesses regardless small or big
in size. They are the creators.
¤ All entrepreneurs are managers but all managers
may not be entrepreneurs.
¤ Can you identify five successful entrepreneurs of
Nepal?
March 15, 2015 7

8. Manager Characteristics
Administers
Makes a copy or imitates
Maintains
Focuses on systems and structures
Relies on controls
Short-range view
Asks how and when
Eyes on the bottom line
Accepts the status quo
Classic good soldier
Does things right
March 15, 2015 8
Manager Vs. LeaderManager Vs. Leader
Leader Characteristics
Innovates
Creates original or innovates
Develops
Focuses on people
Inspires trust
Long-range perspective
Asks what and why
Eyes on the horizon
Challenges the status quo
Own person
Does the right things
Warren G. Bennis, Managing the dream: leadership in 21st century, journal of
Organizational Change Management, vol. 2, No. 1, 1989, p. 7

9. Leadership
Influencing people by providing the purpose,
direction, and motivation while operating to
accomplish the mission and improving the
organization.
March 15, 2015 9

10. ORGANIZATIONAL LEVELS & MANAGERS
March 15, 2015 10
Top Managers
Chair, President,
MD, GM
Middle Managers
HODs, Sr. Managers
First-Line Managers
Supervisors
Operatives
Line staff
What do
these people
do?
How can you
relate these
levels in
an institution?

11. MANAGEMENT
The process of getting things done - effectively and
efficiently - through and with other people.
Efficiency: doing something rightly.
Effectiveness: doing something right.
Management: getting done right thing in a right way.
March 15, 2015 11
Example?

12. Efficiency vs. Effectiveness
Means Ends
Efficiency Effectiveness
Goals
Low High
wastage attainment
March 15, 2015 12
Resource
Usage Goal
Attainment

13. Efficiency Vs. Effectiveness
March 15, 2015 13
1Optimalutilizationofresources
2Controlovercostofproduction
3Controloverdefectiveproduction
4Minimizedlevelofidletimeortimelags
5Continuoussystemstandardization
6Continuousprocessimprovement
7Ethicalandenvironmentfriendlyoperations
Management of means of operation Attainment of ends or results of operation
1Lowercostofproduction
2Higherlevelofoperationalproductivity
3Satisfiedemployeesandstakeholders
4Increasedemployeeretention
5Reducedemployeeabsenteeism
6Improvedqualityofworklife
7Enhancedinstitutionalcitizenship
Reduction of wastage Increment of outputs

14. Features of an Effective Management System
March 15, 2015 14
1. Goal
attainment and
maximization
2. Development of
resourcefulness
4. Stakeholder
satisfaction
3. Process
improvement
Bases of
measuring
management
effectiveness

15. MANAGEMENT PROCESS
 The processes aimed at the achievement of the
organization’s stated objectives.
 The French industrialist Henri Fayol wrote that all
managers perform FIVE management activities; planning,
organizing, commanding, coordinating, and controlling.
 In the 1950s, two professors at UCLA recognized FIVE
terms planning, organizing, staffing, directing and
controlling as the framework of management.
 Now condensed to FOUR; Planning, organizing, leading
and controlling.
March 15, 2015 15

16. Management Process Activities
March 15, 2015 16
1. Planning1. Planning
1. Define goals
2. Establish strategy
3. Develop tactics/subplans
3. Leading3. Leading
1. Direct the people
2. Motivate the people
3. Resolve the conflicts
2. Organizing2. Organizing
Determine:
1. What to be done
2. How to be done
3. Who is to do
4. Controlling4. Controlling
Motivate activities
to ensure that they
are accomplished
as planned.
Achieving the
organization’s
stated purpose

17. Mintzberg’s Managerial Roles
Source: Robbins, S. P., Judge, T. A., & Sanghi, S. (2009). Organizational Behavior (13th
ed.). PHI.
Managerial Roles
1. Interpersonal
Figurehead
Leader
Liaison
2. Informational
Monitor
Disseminator
Spokesperson
3. Decisional
Entrepreneur
Disturbance handler
Resource allocator
Negotiator
March 15, 2015 17

18. MANAGERIAL SKILLS COMPETENCIES
A. General Skills
1. Conceptual skills 2. Human skills
3. Technical skills a. Interpersonal skills
b. Political skills
B. Specific Skills
1. Controlling the organization’s environment and resources
2. Organizing and coordinating
3. Handling information
4. Providing for growth and development
5. Motivating employees and handling conflicts
6. Strategic problem solving
CATZ’s Skills
March 15, 2015 18

19. Management as an Integrated Function
March 15, 2015 19
Management
Human Resources Management
R&D and Productions
Management
Financial Management
Marketing Management

20. WHY STUDY MANAGEMENT?
General Reason
1. Gain conceptual insights in general management of
any institution
Specific Reasons
1. To improve organization’s overall management
2. To develop career
March 15, 2015 20

21. Universality of Management
Management is a universal discipline.
Application of management may be modified as per
the contexts and environments but the main essence
of management principles remains same worldwide.
For example, employee motivation is a universal
tool of productivity but the factors considered for
motivation may be different from country to country
and context to context.
March 15, 2015 21

22. Universality of management should be studied in the
following basis
1. Levels in the organizationLevels in the organization: lower, upper, middle
2. Organizational objectivesOrganizational objectives: profit or not-for-profit
3. SizeSize: big or small
4. National bordersNational borders: similar management concepts
5. Decision makingDecision making: synonymous to management
6. Dealing with changeDealing with change: main challenge worldwide
7. Competencies and skillsCompetencies and skills: required worldwide
March 15, 2015 22

23. History and Evolution of Management as a Discipline
 Both theoretically and historically, study of
management has appeared to be one of the
interesting and indispensable tool for managing
organizations of each type.
 While studying about the evolution of
management, we must understand that a theory is
a conceptual framework for organizing knowledge
that provides a blueprint for various courses of
action whereas history is the cumulative story of
evolution of such frameworks, one after another.

24. March 15, 2015 24
Such a study should be distinctively grouped
into two sections:
1.Historical background
2.Evolution of different approaches to the
evolution of management as a discipline

25. Historical Background
Adam SmithAdam Smith published ‘the wealth of nations’ in
1776 with an argument that the economic
advantages that the organizations and society
would gain from implementing the idea of division
of labor or job specialization (breakdown of jobs
into narrow and repetitive tasks).
For example, the way the different people work in
a tailoring shop, or the way different people work
in a building construction site.
March 15, 2015 25

26. Historical Background …
 Industrial revolutionIndustrial revolution started in late eighteenth
century when machine power overtook the human
power and proved to be became more economical
to manufacture goods in factories than at homes
as a result of system standardization and mass
production.
 Such a revolution took place in absence of any
universally accepted management principles..
 Only after early 1900s, the initial steps were taken
towards developing management theories.
March 15, 2015 26

27. Evolution of Management as a Discipline
 To study management as a discipline, the following
theoretical perspectives will accomplish the
purpose:
a.a. Early approaches to managementEarly approaches to management
b.b. Classical approachesClassical approaches
c.c. Behavioral approachesBehavioral approaches
d.d. Quantitative approachesQuantitative approaches
e.e. Modern approaches to managementModern approaches to management
f.f. Emerging approaches in management thoughtEmerging approaches in management thought

28. a. Early Approaches to Management
Contributor Period Contribution
Robert Owen 1771-1858 Proposed legislative reforms to
improve working conditions of labor
Charles
Babbage
1792-1871 Advocated the concept on ‘division of
labor’
Andrew Ure 1778-1857 Advocated the study of management
Charles Dupin 1784-1873
Henry R.Towne 1844-1924 Emphasized the need to consider
management as separated field of
study and the importance of business
skills for running a business.

29. Major Classifications of Management ApproachesMajor Classifications of Management Approaches
ApproachesApproaches Theories
ClassicalClassical
approachesapproaches
Scientific
Management
Theory
Management of
Bureaucracy
Administrative
Management
BehavioralBehavioral
approachesapproaches
Hawthorne
Studies
Maslow’s Needs
Hierarchy
Theory X and
Theory Y
QuantitativeQuantitative
approachesapproaches
Management
Science
Operations
Management
Management
Information
Systems
ModernModern
approachesapproaches
The Systems
Theory
Contingency
Theory
Emerging
Approaches

30. b. Classical Approachesb. Classical Approaches
 This approach tends to form the early foundationThis approach tends to form the early foundation
of study in managementof study in management
 The schools of thought in management underThe schools of thought in management under
classical approach include:classical approach include:
1.1. Scientific Management TheoryScientific Management Theory
2.2. Administrative TheoryAdministrative Theory
3.3. Bureaucratic ManagementBureaucratic Management

31. 1. Scientific Management Theory [Taylor, Gillbreth, & Gantt]1. Scientific Management Theory [Taylor, Gillbreth, & Gantt]
 Piece rate incentive system
 Time and motion study
 Example, Gantt scheduling chart by Henry Laurence Gantt
2. Administrative Theory [Fayol]2. Administrative Theory [Fayol]
 Technical
 Commercial
 Financial
 Security
 Accounting
 Managerial
3. Bureaucratic Management Theory3. Bureaucratic Management Theory
[Weber][Weber]
Work specialization and division of
labor
Abstract rules and regulations
Impersonality of managers
Hierarchy of organization structure

32. 1. Scientific Management Theories1. Scientific Management Theories
Evolved in early 1900s
 Under these theories, management has been
projected as a tool to conduct a business or affairs
by standards established, by facts or truths gained
through systematic observation, experiment and
reasoning.
 Major contributors include:
 Frederick Winslow Taylor
 Frank and Lillian Gillbreth
 Henry L. Gantt

33. a. Classical Approach
 The first studies of management, which
emphasized rationality and making organizations
and workers as efficient as possible
 Scientific management
 Born in 1911, Frederick Winslow Taylor
propagated the ‘Principles of Scientific
Management’.
 Its contents were widely embraced by managers
around the world.
 Book describes theory of scientific management:
use of scientific methods to define “one best way
for a job to be done”
33

34. Frederick Winslow Taylor
 F W Taylor (1878) is best known as the “father of
scientific management”
 He introduced two major managerial practices:
a. ‘Piece-rate’ incentive system
b. Recognized equal importance of ‘time-and-
motion’ study

35. Frank Gillbreth and Lillian Gillbreth (1868-1924)
 They contributed with motion study which involves
finding out the best sequence and minimum
number of motions needed to complete a task.
 These two management scientists explored newer
ways for eliminating unnecessary motions and
reducing work fatigue among the lobourers.

36. Henry L. Gantt (1861-1919)
 A well known management engineer for ‘task–and-
bonus system’, which was exhibited in the Gantt
Chart.
 If the worker completed the work fast, i.e., in less
than the standard time, he received a bonus.
 It is a simple chart that compares actual and
planned performances in respect with activities
and proposed timelines presented in a matrix.

37. Limitations of Scientific Management TheoriesLimitations of Scientific Management Theories
1.1. These theories do not focus on the managementThese theories do not focus on the management
of an organization from a manager’s point ofof an organization from a manager’s point of
view.view.
2.2. These theories consider that the people areThese theories consider that the people are
always “rational” and are motivated primarily byalways “rational” and are motivated primarily by
the desire for material gains, which may notthe desire for material gains, which may not
apply in the real world of works.apply in the real world of works.
3.3. The theories severely lacked paying attentionThe theories severely lacked paying attention
towards human desire for job satisfaction as atowards human desire for job satisfaction as a
major tool of the employee performance.major tool of the employee performance.

38. 2. Administrative Theory
 Propagated by Henri Fayol (1841-1925), the
Administrative Theory of Management focused on
principles that could be applied by the managers
to coordinate the internal activities of the
organization.
 Such principles intended to oversee the general
administrative arrangement pertaining to finance,
HR affairs, relationship, production and
operations and so on.

39. Fayol’s Fourteen Principles of ManagementFayol’s Fourteen Principles of Management
1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of the individual interest to the general interest
7. Remuneration
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability
13. Initiative
14. Espirit de corps (team spirit)

40. 3. Bureaucratic Management
Weber (1864-1920); best known as ‘Weber’s ideal
bureaucracy’
Weber, a German sociologist, developed a theory of
authority structures and relations based on an ideal
type of organization he called a bureaucracy.
Characteristics of Weber’s ideal bureaucracy:
1.Work specification and division of labor
2.Abstract rules and regulations
3.Impersonality of managers
4.Hierarchy of organization structure

41. Limitations of Bureaucratic Management and
Administrative Theories
1.1. Not universally applicable the present dayNot universally applicable the present day
complex organizations.complex organizations.
2.2. Like Fayol’s principles, the concept ofLike Fayol’s principles, the concept of
specialization is frequently in conflict with thespecialization is frequently in conflict with the
principle of unity of command.principle of unity of command.
3.3. Principle characteristic of bureaucracy changesPrinciple characteristic of bureaucracy changes
along the changes in the global businessalong the changes in the global business
environment.environment.
4.4. Classical theorists ignored the problems ofClassical theorists ignored the problems of
leadership, motivation, power or informationleadership, motivation, power or information
relations.relations.

42. c. Behavioral Approaches to Management
 The behavioral approaches to management are
deeply rooted on employee behavioral dimension
of performance.
 These theories have emphasized individual
attitudes and behaviors, group processes and
recognized the significance of behavioral process in
the workplace.

43. Hawthorne Studies
 Most important question to the field of OB came
out of the Hawthorne studies
 It is a series of studies conducted at the Western
Electric Company, Cicero, Illinois
 These studies, started in 1924, were initially
designed by Western Electric Industrial Engineers
as a scientific management experiment.
 Major study landmarks included –
• Illumination studies
• Relay assembly room study
• Bank wiring room study 43

44. Contributions of Behavioral Thinkers to
Management Thought
Name Period Contribution
Mary Parker
Follet
1868-
1933
Advocated the concept of ‘power
sharing’ and integration
Elton Mayo 1868-
1933
foundation for the Human Relations
Movement;
Abraham
Maslow
1908 –
1970
motivated by a hierarchy of needs
Douglas
McGregor
1906-
1964
Theory X and Theory Y personalities
Chris Argyris - Classified organizations based on the
employees’ set of values

45. Mary Parker Follet (1868-1933)
 Power, according to Follet, is the ability to
influence and bring about a change.
 Concept of integration, which involves finding a
solution acceptable to all group members is the
ultimate source of power building at workplaces.

46. Elton Mayo (1868-1933) Studies
Pre-judgment Findings
Job performance
depends on the
individual worker
The group is the key factors in
job performance
Fatigue is the main
factor affecting output.
Perceived meaning and
importance of the work
determining output.
Management sets
production standards
Workplace culture sets its own
production standards.

47. Abraham Maslow
His theory rested on these assumptions.
1. Physiological needs
2. Safety or security needs
3. Belongingness or social needs
4. Esteem or status needs
5. Self actualization or self-fulfillment needs.

48. Maslow’s Need Hierarchy
Self actualization needs
Esteem needs
Social needs
Safety needs
Physiological needs

49. Douglas Mcgregor
Theory X Theory Y
Most People dislike work Work is a natural activity like
play.
Most People must be
coerced and threatened
before they work.
People are capable of self
direction and self control
Most people prefer to be
directed. They avoid
responsibility and have
little ambition.
People become committed
to organizational objectives if
they are rewarded in doing
so.

50. Chris Argyris
 Maturity – immaturity theory: People progress
from a stage of immaturity and dependence to a
state of maturity and independence.
• Model I and Model II organization analysis.
1. Model I organization are manipulative
2. Model II organization are open to learning

51. d. Quantitative Approaches to
Management
 These includes the application of statistics,
optimization models, information models and
computer simulations.
 More specifically, the approaches focus on
achieving organizational effectiveness.
 Three main branches:
 Management Science
 Operations Management
 Management Information Systems.

52. Management Science
 It stresses the use of mathematical models and
statistical methods for decision-making.
 Another name is the Operations Research.
Operations Management
 It deals with the effective management of the
production process and the timely delivery of an
organization’s products and services.
Management Information Systems
 Management information systems focuses on
designing and implementing computer-based
information systems for business organizations.

53. e. Modern Approaches to Management
 There are two dominant modern approaches to
management studies. These include –
a.a. Systems TheorySystems Theory
b.b. Contingency TheoryContingency Theory

54. Systems Theory
Resources
 Labor
 Materials
 Capital
 Machinery
 Information
Managerial and
Technological
Abilities
 Planning
 Organizing
 Staffing
 Leading
 Controlling
 Technology
 Goods
 Services
 Profits and
losses
 Employee
satisfaction
Inputs
Transformation process Outputs
Feedback

55. Contingency Theory
Systems Viewpoint
How the parts fits
together
•Individual
•Group
•Organization
•environment
Behavioral Viewpoint
How managers influence
others
•Interpersonal Roles
•Informational Roles
•Decisional Roles
Traditional
viewpoint
What managers
do
•Plan
•Organize
•Lead
• Control
Contingency
Viewpoint
Managers’ use
of other view
points to solve
problems
•External
environment
•Technology
•Individuals

56. f. Emerging Approaches to Management
 William Ouchi, a Japanese quality Guru, has outlined a
new theory called Theory Z.
 It is the blend of positive aspects of both American and
Japanese management styles.
 Quality Management is a management approach that
directs the efforts of management towards bringing about
continuous improvement in product and service quality to
achieve higher levels of customer satisfaction and build
customer loyalty.
 More recently, many newer theoretical concepts have
evolved. A few of them are Charismatic Theory, Servant
Leadership, Management by Objective (MBO),
Management by Walking Around (MBWA), Management
by Exception, etc.

57. Caution!
This work is a compilation from different
resources, including my own works and the
works of many other scholars in the field of
management and lacks appropriate
acknowledgement of all sources. Thus, it
should not be used for any sort of
academic referencing via literature
reviews.
Dr Rijal, C. P.