The document discusses management theory, including its evolution and different approaches. It describes management functions like planning, organizing, staffing, directing and controlling. It also discusses forces behind management thoughts such as political, social and economic forces. Classical approaches including scientific management and administrative management are explained. Modern approaches involving quantitative methods and systems approach are also summarized.

1. ARDHI UNIVERSITY
SCHOOL OF SOCIAL SCIENCE AND
SPATIAL PLANNING
INFRASTRUCTURE PLANNING AND
MANAGEMENT THEORY
MANAGEMENT THEORY

2.  Management is a universal phenomenon and
is concerned with all the aspects of an
organisation’s functioning.
 The success of an organisation depends a
great deal on the effectiveness of
management.
The main objective of management is to draw
maximum output out of minimum efforts and
resources. Therefore, every organisation must
ensure effective management.

3.  Efficiency and effectiveness are the two
important aspects of successful management.
This is because management is a problem-
solving process of effectively achieving the
objectives by efficient use of resources.
 In an organisation, management is operated
through a number of functions called
management functions. These functions are
planning, organizing, staffing, directing and
controlling.

4. Evolution of Management

5.  The history of management can be traced back to 5000 B.C.
when the agriculture revolution was at the initial stage.
 In Egypt, in 2900 B.C. the pyramids were built in a highly
organized and coordinated manner.
 Management was also a part of the Roman Empire, which
organized its general administration and controlled its political,
military and judgmental issues by using effective
communication.

6. Industrial Revolution (1760 to sometime between 1820 and 1840.)
Industrial revolution was a period of transition from manual
production methods to new manufacturing processes in the late
eighteenth century. During industrial revolution, management was
based on two main propositions, which are:
 Firstly, labour was perceived as a bunch of lethargic people who
would work only when controlled and supervised.
 Secondly, labour was the only factor that could bring reduction in
costs. Therefore, all the efforts were made to reduce labour costs
and increase production.

7. Forces Behind Management Thoughts
•Forces Affecting Management
Thoughts
•Political Forces
•Social Forces
•Economic Forces

8. Forces Behind Management Thoughts
 Political forces: Political forces, such as government regulations,
political institutions, and trade policies affect in the areas of
environmental analysis, organizational design and structure,
and employee rights.
 Social forces: These forces can be in the form of social norms
arising from the values and beliefs of people in a society.
 Economic forces: These forces are responsible for the formation of
base market economy and other concepts, such as private
ownership of property, economic freedom, and competitive
markets.

9. Classical Approach
These approaches are discussed as follows:
 Scientific Management: The scientific management approach was developed by
Frederick Winslow Taylor (1856-1915), who was an American engineer. Thus,
scientific management is also popular by the name of Taylorism.
 Administrative Management: Henry Fayol (1841-1925), a French mining
engineer, promoted the concept of administrative management. He focussed on
developing administrative principles that could be applicable to both general and
higher managerial levels.
 Bureaucratic Management: Bureaucratic management was promoted by Max
Webber (1864-1920), who was a German sociologist. According to Webber,
bureaucratic management is the most appropriate administration.

10. Modern Approach
According to this approach, employees do not necessarily work for
money and they also like to receive affection and respect of co-
workers, which further increases their productivity.
 Quantitative approach: In this approach, quantitative tools are
used for managerial decision making.
 Operations research: It is an approach used for improving the
effectiveness of management decisions.
 Operations management: It is used to manage production in
manufacturing organizations.

11. Modern Approach
 Management information system (MIS): This is a computerised management
system used to provide information required by organisations for their effective
management.
 Systems approach: According to this approach, a system can be defined as a set
of components that are interacting regularly or are interdependent, thus making
a single unit.
 Contingency approach: In this approach, an organisation determines problems by
analyzing its conditions and environment.

12. Nature of Management

13.  The following characteristics of management
highlights its nature:
◦ Management is goal oriented and purposive
◦ Management is universal
◦ Management is continuous
◦ Management is a group activity
◦ Management is intangible

14.  The purpose of management has been
highlighted in the following points:
◦ Achievement of goals and objectives
◦ Optimum utilisation of resources
◦ Cost minimisation
◦ Survival and growth
◦ Development of a nation

15.  Management is called science as it has its own
principles that can be applied everywhere.
According to the principle, if the same work is
given to a person repeatedly, he/she gains
expertise in that work whether it is the personal
or professional life of the person.
 It should be noted that management is not like
natural or exact science but it is more like
behavioural science. This is because in case of
natural science, it is possible to study the effects
of any of the factors affecting a phenomenon by
keeping other factors constant.

16.  According to management experts ,
management is a skill that comes from an
individual’s personality and ability. Thus, it is
said that managers are born, not made.
 In addition, experts believing in management
as an art propounded that managers need to
rely on the social and political environment
and use their own body of knowledge to
determine a course of action.

17. Planning Organizing Staffing
Directing Controlling

18.  Management is not only a representative of
managers and employees but also has to fulfil
certain objectives of a society.
 The management’s role towards society is as
follows:
◦ Providing good quality products at fair prices to
consumers.
◦ Making timely payment of taxes to the government.
◦ Conserving the biological environment and natural
resources.
◦ Dealing fairly with suppliers, dealers, competitors, and
other third parties.
◦ Preserving the ethical values of a society.

19. •Considers a business as an
economic purpose and social
responsibility as an obligation
Social obligation
approach
•Considers a business from both
social and economic point of view
Social responsible
approach
•Works actively to deal with social
needs and problems
Social responsive
approach

20.  Responsibility towards shareholders
 Responsibility towards customers
 Responsibility towards employees
 Responsibility towards community and
society
 Responsibility towards government
 Responsibility towards other stakeholders

21.  Administration and management are closely
related. Both involve integrating resources
and directing individuals towards the
achievement of goals.
 Thus, according to Oliver Sheldon,
administration is a thinking process, whereas
management is a doing process.

22. Point of
Difference
Administration Management
Nature It is a thinking function. It is a doing function.
Type of Work It determines major objectives
and policies.
It implements
objectives and
policies.
Levels of
Authority
It is a top-level function. It is a middle and
lower level function.
Important
Functions
Planning and controlling are
the main functions involved in
it.
Directing and
organising are the
main functions
involved in it.

23.  General Motors – American Multinational –
Automobile manufacturers.
 Various well known cars.
 1982, GM was suffering from heavy losses due to
tense labour management relations.
 As a result California Facility was closed down.
 To recover from the fall out, GM established first
joint venture with Japanese organization Toyota
Motors in 1983.
 New Venture was named as – NUMMI – New
United Motor Manufacturing Inc.

24.  To increase productivity NUMMI adopted the time and
motion studies techniques for improving work
practices.
◦ Time and Motion studies: Method for establishing employee
productivity standards in which
 A complex task is broken into small, simple steps
 The sequence of movements taken by the employee in
performing those steps is carefully observed to detect and
eliminate redundant or wasteful motion
 Precise time taken for each correct movement is measured.
From these measurements production and delivery times and
prices can be computed and incentive schemes can be devised.
Generally appropriate only for repetitive tasks, time and motion
studies were pioneered by the US industrial engineer Frederick
Winslow Taylor (1856-1915) and developed by the husband
and wife team of Frank Gilbreth (1868-1924) and Dr. Lillian
Gilbreth (1878-1972)

25.  Improve overall quality
 Encourage worker’s participation in designing
and controlling of their own work activities
 Create a former system in organization to
foster learning.

26.  Kaizen to attain perfection and for efforts
towards continuous improvement.
 Just-In-Time for reducing overall costs
 Focus on human resources
 Employee empowerment to provide quick
solutions to problems
 Effective team culture and mutual trust to
gain control and coordination.

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