This document provides an overview of business management. It discusses the characteristics, nature, attributes of being a profession, importance, and scope of management. It also covers the major schools of management thought including empirical, classical, neo-classical, systems, quantitative, contingency, and operational theories. Each theory is briefly described in terms of its key aspects and features.

1. Business Management
I B. Com Computer Application

2. History

3. Overview

6. Characteristics
• Process
• Social Process
• Existence of objectives
• Integration of organisational
resources
• Decision making
• Leadership

8. Nature
• Universal application
• Goal oriented
• Human activity
• Profession
• Art and science
• Multidisciplinary
• Dynamic
• Intangible
• Distinct process
• System of authority
• At all levels of enterprise
• An activating factor

9. Art

10. Science

13. Attributes of a Profession
• Organised and systematised body of
knowledge
• Knowledge acquisition  education &
training
• Professional association 
Membership
• Ethical standards
• Service oriented
• Personal qualities

14. Importance of Management
• To achieve objectives
• Optimum utilisation of resources
• Development of country
• Maximum efficiency with minimum human efforts
• Promote social well being
• Survive competition
• Meet challenges
• Smooth & efficient running of organisation
• Co-ordinate efforts
• New ideas & efforts etc.
Aspects covered or scope of management

16. Schools Of
Management
Thought
Empirical Approach
Classical Approach
Neo Classical Approach
Social System Approach
Modern Management Theory

17. • Management practice  old as people
• Study of how managers achieve result  later
• Earlier  researchers were not interested
• Late 19th century
• 20th century World war I & II
• Limited resources
• Growing competition
• Large scale business – management
• World wide rivalry for markets
• Complexity in business
• Competition+ complexity  No trial & error
• Attention of variety of intellectuals to study organization &
process Increase productivity  each have their own views

18. Empirical Approach
Experiences
No two situations
are same
Like trial and error

19. Classical
Approach
(Traditional
school of
management
thought)
• Late 19th century
• Primary effort To develop a school of thought
• During industrial revolution
• Objective  Reduce cost , Achieve result 
Organisation needs
• Not employee oriented
• Too mechanistic
1. BureaucraticRules, Procedures and division of labour
2. AdministrativeManager and basic managerial
functions
3. Scientific One best way to do a job
• F.W Taylor, Frank & Lillian Gilberth, Henri Fayol, Max
Weber

20. Neo classical Approach
• Founder  George Elton Mayo
• Extended version of classical theory + behavioural sciences
• Combination of formal + informal forms of organisation
• Importance to human & social aspects + relations  workers
• Organisation is the social system, and its performance does get affected by the human actions
1. Human Relations Approach – George Elton Mayo
• How people relate and interact within a group
• Progressive development
• Cooperation of employees, team spirit, satisfaction  Productivity
• Happy employee  productive employee
2. Human Behaviour Approach
• Individual behavior of employees  Concentrates on people : motivation, individual drives, group
relations, leadership, group dynamics
• Management  Leadership

21. Social System Approach
Management  social
system/system of cultural
relationships
Social groups + need for
cooperation  solve limitations
of man & environment
Organisation & group
relationships, influence of
informal organisations

22. Modern
Management
Theory
Quantitative Theory
Systems Theory
Contingency Theory
Operational Theory

23. Quantitative
Theory/Manage
ment Science
Theory
• This theory is also known as Operations Research Theory, decision Theory or
management science Theory. It became an acceptable theory during World
War-II .When Britain wanted to solve the problems of War. The problem was
that the radar system did not perform well at field sites as it performed at the
testing station. On site scientific observation was thus called during actual
operation.
• Management ScienceIt uses mathematical models such as linear
programming, PERT,CPM, games theory, probability sampling theory,capital
budgeting etc to solve organisational problems.
• Operations Managementmanaging the production and delivery of an
organization's products and services. Techniques like forecasting, inventory
analysis, statistical quality control methods are used
• Management Information Systems Designing and implementing computer
based information for use by the management.

24. Features
• 1. It establishes relationships amongst quantifiable variables of a decision-
making situation and facilitates disciplined thinking.
• 2. Mathematical models help to derive precise and accurate results by
analyzing complex statistical data.
• 3. Decisions are based on data and logic rather than intuition and
judgement

25. Systems Theory
• Organisation System Common objective
• System  Sub systems  Interdependent &
Interrelated
• Subsystems  Integrated through
communication network  Overall efficiency
• This theory views organization as a whole
which operates in the external environment
and has an internal environment consisting of
various departments(production, marketing,
finance etc) inter related to each other in a
manner that input output conversion is done
in the most efficient manner.

26. Contingency Theory
• 1. Management is situational in nature. The technique of
management depends on complexity and environmental
circumstances.
• 2. It is the ‘if and ‘then ‘approach to management, ‘If’
represents the independent variable and ‘then’ represents
the dependent management variable or the technique to
be adopted in that situation. ‘If’ workers have strong
physiological needs, ‘then’ financial motivators should be
adopted and ‘If’ they have strong higher-order needs,
‘then’ non-financial motivators should be adopted.
• It provides insight into organisation’s adaptability to both
internal and external environment. It is a matter of fitting
the internal environment to its external environment.

27. Operational Theory
• Existence of centralised body of
knowledge + Relevant knowledge from
other disciplines
• Koontz and O’Donnel  Advocates
• Applicable in all types of organisations
• Problem solving by managers 
Application of knowledge based on
environment