This document discusses key concepts in management including: - Definitions of management from Taylor, Fayol, and others focusing on planning, organizing, directing, and controlling resources. - The evolution of management theory from classical, neo-classical, and modern eras including contributions from Taylor, Mayo, and others. - Functions of management such as planning, organizing, staffing, directing, coordinating, and controlling. - Principles of management from Fayol including division of work, authority and responsibility, discipline, unity of command, and others. - Management as a science, art, and profession involving systematic knowledge, personal skills, creativity and practice.

1. SUBJECT CODE: 23MST11
MANAGERIAL CONCEPTS
AND
ORGANISATIONAL BEHAVIOUR

2. UNIT 1
• Evolution of management Thought - Classical,
Behavioral and Management Science Approaches
• Management - meaning - levels
• Management as an art or science
• Managerial functions and Roles
• Evolution of Management Theory
 Classical era
• Contribution of F.W.Taylor
• Contribution of Henri Fayol
 Neo-Classical
• Elton Mayo
• Hawthorne Experiments
 Modern era (Managerial Skills)
• System approach
• Contingency approach
NATURE
AND
THEORIES
OF
MANAGEMENT

3. MANAGEMENT
'' Management is the art and
science of preparing, organizing and
directing human efforts to control
the forces and utilize the material of
nature for the benefit of men''.

4. DEFINITION OF MANAGEMENT
(1) “Management is the art of knowing what you want to do and then
seeing that it is done in the best and cheapest way”.
F.W. Taylor
(2) “To manage is to forecast and to plan, to organize, to command,
to coordinate and to control”.
Henry Fayol
(3) “Management is the coordination of all resources through the
process of planning, organizing, directing and controlling in order
to attain stated objectives”.

7. Administration& Management

9. Functions of Management
1.Planning
2.Organising
3.Staffing
4.Directing
5.Coordinating
6.Controlling
7.Leading and motivating
Primary/Main Functions: Subsidiary Functions:
1.Innovation
2.Representation
3.Decision-Making
4.Communication

10. NATURE OF MANAGEMENT
1. Management is Universal
The principles and techniques of management have universal application.
They can be applied to all types of organizations business, social,
educational and religious.
2. Management is Social Process
Management is basically a social activity because management is mainly
related with the human activities of an enterprise.
3. Management is Goal-Oriented
The purpose of management is to achieve certain goals. The main objective
of management is to maximize efficiency and economy of human efforts.

11. 4. Management is Activity-Based
Management refers to a distinct class of activities which could be learnt
and put into practice.
5. Management is Integrative Process
The essence of management is integration of human and other resources in
a manner that it leads to effective performance.
6. Management is a Group Activity
It is concerned with group efforts because it creates effective cooperation
among persons working together in a group.
7. Management is Intangible
The management is not a tangible activity of business enterprise. It is the
direction and control of the business activity which can be felt but can not
be seen or touched.

12. 8. Management is Dynamic
(Dynamic - continuous and productive activity or change)
Management involves creating an internal environment or conditions,
whereby people are able to perform their tasks efficiently. Management is
a continuously growing process.
9. Management is a Multi-Disciplinary Subject
Management contains principles drawn from many social sciences like
sociology, economics etc.
10. Management Accomplishes Results Through Others
The essence of management is integration of human and other resources in
such a way that it leads to effective performance.

13. 11. Management is a Science, Art and Profession

14. Management as a Science
To understand this topic, we should first know what does science
means? Science means a systematized body of knowledge that can be
acquired through observation and experimentation. It consists of
universally accepted principles that establish a relationship between causes
and their effects.
• Systematized body of knowledge: Science is a systematic body of
knowledge. Its principles are based on a cause-and-effect relationship.
• Observation and Experiments: All scientific principles are first
developed through observations and then tested through repeated
experimentation under controlled conditions.
• Causes and Effect Relationship: Science is based on causes and their
effects. For example,
cause - If a person eats lots of fast food without any physical activity,
effect - he will put on extra weight.
• Universal Validity: Scientific principles have universal validity (basic
truths) and can be applied in all situations and times.

15. Management as an Art
Arts means the practical application of knowledge and skills to achieve the desired
results. It is personal application of knowledge to achieve results. It is attained
through study, observation and experience.
• Theoretical knowledge: Art comprises the application of theoretical
knowledge. A particular art has its basic principles and theory. Some
fundamental principles have been derived by the experts which apply to their
particular form of art. For example, painting has its principles and theory to
start with.
• Personal skills: Every artist has his way of working. The use of basic
knowledge varies from individual to individual. Even how they tackle their
problems for reaching the result or the goal which they are willing to achieve
differs. Applying this basic knowledge with practise, creativity, imagination,
initiative, and innovation is a personal skill.
• Creativity: Art consists of lots of creativity. The theoretical knowledge should
be practised and applied differently to become more creative and achieve the
ultimate goal.
• Perfection through Practice: As arts require nonstop practice to gain mastery.
By performing the task again and again, the artists gain perfection through
practise. For example, a dancer who practices for hours daily will get smooth
and perfect with his steps through practise.

18. OBJECTIVES OF MANAGEMENT
In brief the objectives of management are as follows:
1. Higher Efficiency
Management seeks to obtain maximum output with minimum resources and
efforts.
2. Satisfaction of Customers
Management attempts to produce products required by the customers.
3. Adequate Return on Capital
Management must achieve a reasonable rate of return for the owners of the
business.
4. Satisfied Workforce
Management attempts to build a team of good workers who are happy and
satisfied with the organization.

19. 5. Better Working Conditions
Management seeks to achieve a system to ensure fair wages for the work,
security of employment and better working conditions for the work force.
6. Relations with Suppliers
Management seeks to achieve good relations with the suppliers of raw
materials and capital so as to continue in production.
7. Contribution to Nationals Goals
The management must contribute to the national goals. It should use the
judicious use of scarce resources of the country.

20. FAYOL’S PRINCIPLES OF MANAGEMENT
Henry Fayol, the French industrialist is regarded as the real father of
modern management science. A brief description of Fayol’s fourteen
principles of management which he described in his book ‘General
and Industrial Management’ is given below:
• Division of Work
This principle implies that every employee should be assigned only one
type of work. It aims at the maximum production with least efforts.
It also helps in securing the maximum efficiency.
• Authority and Responsibility
Authority is the right to give orders to the subordinates. Responsibility
means the duty which the subordinates is expected to perform.
Sufficient authority should be delegated to a subordinate to enable
him to discharge his duties.

21. • Discipline
Discipline means getting obedience to rules and regulations
of an organization. In the absence of discipline the organization cannot
succeed. Discipline depends upon effective leadership.
• Unity of Command
A subordinate should receive orders from one supervisor only. If he
gets orders from two or more officers at the same time, he gets
confused. He cannot discharge his duties properly. Unity of
command is related to functioning of personnel.
• Unity of Direction
Unity of direction means that each group of persons having same
objects must have one head and one plan. It will help in
establishing the coordination and uniformity in the activities. It is
related to the functioning business as a whole.

22. • Subordination of Individual Interests to General Interest
The interests of the organization must prevail upon the
personal interests of individuals. General interest must be given more
attention in comparison to the personal interests.
• Remuneration of Personnel
The remuneration of personnel must be fair and satisfactory. The wage
system must motivate the employees, to do better and more and
may ensure safety and security of the employees. The wage system
must be satisfactory to both the employees and employer.

23. • Centralization
It means concentration of authority at one place or at one
level in the organization. On the other hand, decentralization means
dispersal of authority to the lower levels in the organization. A
proper balance between centralization and decentralization must
be maintained. Small firms have absolute centralization but in
large concerns, there is less degree of centralization.
• Scalar Chain
This principle is related to the arrangement of things and the placement
of people. This principle emphasizes that there must be a clear line
of authority right from the top management to the bottom.
Orders of management and feeling of subordinates must pass
through the proper channels of authority. Such types of channels
must be short cut only when it is essential to do so.

24. • Order
Order means everything should be in a proper arrangement. There
should be a place of everything and everything should be in its
place. Similarly, there should be right man in the right place.
• Equity
Personnel must be treated with kindness and equity if loyalty is
expected of them. This principle does not mean that all the
employees of the organization are equal and must be treated and
paid equal.

25. • Stability of Tenure
This principle requires that there must be stability in the service of the
employees. The employees should not be transfer from one place
to another very quickly in business activities because it lower the
progress of activates. Management should remove the feelings of
insecurity of job from the minds of personnel. If the job of a
person is not secure, he will be on lookout for the job else where
and his work will not be satisfactory.
• Incentives
The subordinates should be given an opportunity to take some
initiatives in making and executing the plans. The employees
should be provided proper incentives in planning an activities
schedule for the enterprise.

26. • Esprit de Corps
This principle means the harmony and understanding among the
personnel. The management and workers must work together as a
team for the accomplishment of the targets of the enterprise. This
principle is based upon two theories – “union is strength” and
“unity of the staff is the foundation of success in any organization”.