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Management and Entrepreneurship
Presented By:
Prakhyath Rai
Asst. Professor, Dept. of ISE,
SCEM, Mangaluru-575007
1
Management Entrepreneurship
īļ Management
īļ Planning
īļ Organizing and Staffing
īļ Directing and Controlling
īļ Entrepreneur
īļ Small Scale Industry
īļ Institutional Support
īļ Preparation of Project
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 2
Unit 1: Management
īļ Introduction
īļ Meaning-Nature and characteristics of Management
īļ Management as a science and art
īļ Roles of Management
īļ Development of Management thought
īļ Early Management approaches
īļ Modern Management approaches.
3
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007
Why Management?
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 4
What is Management?
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 5
Few Definitions of Management
īļ Management in all business and organizational activities
is the act of getting people together to accomplish desired
goals and objectives using available resources efficiently
and effectively.
īļ “Management is the art of getting things done
through others.” - Mary Parker Follet.
īļ “Management is knowing exactly what you want to
do and then seeing that they do it the best and
cheapest ways.” - F W Taylor.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 6
īļ “Manage is to forecast and to plan, organize, to
command, to co-ordinate and to control.” - Henry Fayol.
īļ “Management is defined as the creation and maintenance
of internal environment in an enterprise where individuals,
working together in groups, can perform efficiently and
effectively towards the attainment of group goals.”
- Koontz and O’Donnel.
īļ “Management is a multipurpose organ that manages a
business, manages a manager and manages workers and
work.” – John F. Mee.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 7
Nature and Characteristics of Management
īļ Management is Universal Process
īƒ˜ Applied in all types of institutions – social, religious,
political, military, commercial, bureaucratic etc.
īƒ˜ Every organization whose aim is to achieve its goals
through group efforts, needs planning, coordination,
direction and control – Management
īļ Management is a goal oriented
īƒ˜ Management is directed towards achieving effectiveness and
efficiency. { Effectiveness is nothing but the actual
achievement of specific organizational goals while
Efficiency is the attainment of those goals with an optimal
use of resources.}
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 8
īļ Management is a social process
īƒ˜ Management basically deals with managing human beings
and their emotions, talents, attitudes, culture, ethos,
education etc.
īƒ˜ Management includes retaining, developing and motivating
people at work, as well as taking care of their satisfaction as
social beings.
īļ Management is a coordinating force
īƒ˜ Orderly arrangement of activities to avoid duplication and
overlapping.
īƒ˜ Integrates human and physical resources.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 9
īļ Management is intangible
īƒ˜ Management cannot be touched and felt.
īƒ˜ It does not have physical presence (It is an unseen force).
īļ Management is multi-disciplinary
īƒ˜ Management has received rich contribution from various
disciplines like psychology, sociology, anthropology etc.
īƒ˜ Management is about creating synergy (Synergy means “the
whole is greater than the sum of its parts”).
īļ Management is dynamic
īƒ˜ Management is an on going process, it continues to operate
as long as there is organized action for the achievement of
group goals.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 10
īļ Management is a creative activity
īƒ˜ Management provides creative ideas and new imagination
īļ Management is decision making
īƒ˜ Management of an organization continuously takes
decisions which decides the fate of the organization.
īļ Management is a profession
īƒ˜ Individuals can be trained and turned to become a
management professional.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 11
īļ Management as an Economic Resource
Five M’s of Management
īƒ˜ Money
īƒ˜ Man
īƒ˜ Material
īƒ˜ Machinery
īƒ˜ Methods
īļ Management as a class or Elite
īƒ˜ Managers constitutes a class of professional who are elite all
over the world
īƒ˜ A manager is a person who has people working under him,
and that could be in any part of the activity
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 12
Scope of Management
īļ Management as a System of Authority
īƒ˜ According to Herbison and Myer,
â€ĸ Rule making and rule enforcing body
â€ĸ Web of relationships
â€ĸ Mangers enjoy more authority than people working under
them.
â€ĸ Top management defines objectives and provides
directions
â€ĸ Middle management interprets and explains the policies
framed by the top management
â€ĸ Lower management is concerned with routine activities.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 13
Scope of Management in Various areas of work
(or) Functional areas of management
īļ Production / Operations Management
īƒ˜ Operations Management includes work analysis,
planning, scheduling, routing, quality control, inventory
control and work study.
īļ Financial Management
īƒ˜ It includes economic forecasting, cost accounting,
budgeting, insurance and financial statistics.
īļ Personnel Management or HR Development
īƒ˜ Personnel management takes care of recruitment,
placement, training, transfer, promotion, safety, health,
welfare, services etc., of the employees.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 14
īļ Marketing Management
īƒ˜ It is the process of getting the right product to the right
place in the right quantity at the right price and at the
right time.
īļ Maintenance Management
īƒ˜ Maintenance refers to actions carried out to replace, repair
or service all the components in a manufacturing plant so
that it continues to operate at a required level for a
specified time.
īƒ˜ Direction and organization of resources in order to keep
the buildings, equipment's and other service facilities in
the working condition.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 15
īļ Materials Management and purchasing
īƒ˜ 3 Inputs to organizations – Men, Machines and Materials
īƒ˜ Material Management – Planning, directing, controlling
and coordinating all activities which are i/p to
manufacturing process.
īƒ˜ Purchasing and Procurement – 5 R’s {of the Right
Quality, in the Right Quantity, from the Right Source, at
the Right Prices, and at the Right Time}
īļ Transport Management
īƒ˜ Transportation of raw materials as well as finished goods
īƒ˜ Includes studies on – transportation by rail, road, air and
water, packing and warehousing etc.,
īƒ˜ Actions to reduce transportation costs.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 16
īļ Systems Management
īƒ˜ Modular decomposition of projects, delegate duties, track
status periodically, communicate with clients, integrate
modules, test the s/w and responsible for meeting the
deadline for project completion.
īļ Rural Management
īƒ˜ Rural resources and issues management{such as Water
resource management, forest and forest product
management, crop management, cattle management, rural
man power management}.
īļ Office Management
īƒ˜ Organized documentation of all activities
īƒ˜ Planning and controlling all office work including
maintaining and keeping records.
īƒ˜ Clerks, Cashier, Accountants and Office Managers.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 17
Functions of Management
īļ Forecasting
īƒ˜ Forecasting in the estimation of future sales in order to
effectively plan production activities.
īļ Planning
īƒ˜ Planning of all activities to achieve production & sales as
per targets.
īƒ˜ Planning is necessary to avoid difficulties that may arise in
future.
īļ Organizing
īƒ˜ Organizing in arranging money, material, machinery, men
and selecting optimal methods of actual execution of work.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 18
īļ Staffing
īƒ˜ Staffing involves recruitment, selection, training and
development of personnel required to run the organization.
īļ Directing and Motivating
īƒ˜ Directing and motivating the recruited employees so that
they perform their duties effectively.
īļ Controlling
īƒ˜ Controlling the work of employees to ensure everything is
proceeding as per plan.
īļ Co-ordinating
īƒ˜ Co-ordinating the efforts of all employees in all departments
to move towards common goals.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 19
īļ Communication
īƒ˜ Communication system should be efficient so as to avoid
confusion & misunderstanding.
īļ Leadership
īƒ˜ Leadership qualities required in managers and supervision.
īļ Decision Making
īƒ˜ Decision making to be professional and result oriented.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 20
Management as a Science, Art and Profession
Management as a Science:
īļ Establishment of management principles scientifically.
īļ Management is Social Science – As it deals with humans.
īļ Management provides guidelines rather than absolute
principles as in physics, chemistry and biology.
īļ Scientific inquiry and observation
īļ Experimentation
Management as a Art:
īļ Use of Knowledge
īļ Creativity
īļ Personal touch
īļ Constant Practice
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 21
Management as a Profession:
īļ Management is also considered as a profession – one can
study, acquire skills and qualify to become manager.
īļ Like any profession, management has a systematic body of
principles, techniques, and skills.
Difference between Science and Art
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 22
Science Art
1. Defines Describes
2. Proves Feels
3. Predicts Guesses
4. Objective Subjective
5. Measures Opines
6. Impresses Expresses
7. Advances by knowledge Advances by practice
Characteristics of Profession Vs Management
īļ Well-defined body of knowledge
īƒ˜ Profession have a systematic body of principles, techniques
and skill.
īƒ˜ Management also has a systematic body of principles,
techniques and skill.
īļ Formal Education and Training
īƒ˜ Individual can enter a profession only after acquiring
specific knowledge and skill through formal education and
training.
īƒ˜ To enter into management also, an individual has to acquire
appropriate knowledge and training.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 23
īļ Representative Body
īƒ˜ Profession have regulatory bodies and strict code of
conduct.
īƒ˜ Managers don’t have a universal code of conduct and they
also don’t have common regulatory body to ensure standard
practices.
īļ Service Motto
īƒ˜ A professional has to have service as his motto and must
safeguard the society from any risks.
īƒ˜ Managers may not have such motto.
Management conforms to most of the characteristics of a
profession, and hence can be called as profession.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 24
Management and Administration
Three Views:
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 25
First View :Administration is broader than
Management
īļ Administration is Policy Making function
īļ Management is Policy realization function
īļ Administration is Largely determinative while Management is
essentially executive
- Sprigel
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 26
Difference Between Administration and
Management
Administration Management
1. Determining Objectives Planning the work to meet the
objectives given by administration
2. Framing policies and principles Executes the policies and programs
3. Framework under which one
has to work
Supervises and control execution of
work
4. Direction, guidance and
leadership and brings in resources
Coordinates all the resources and
activities
5. Comes first and Provides
guidelines to the management and
organization
Comes Second and derives strength
and freedom from administration to
plan and execute work
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 27
Second View :Management is broader than
Administration
īļ Management is wider concept than administration
- Henry Fayol, EFL Brech.
īļ Management is the rule making, rule enforcing, all
encompassing body while administration implements and
carries out the policies of the management
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 28
Third View :Administration and Management are
identical
īļ Hardly any distinction between the two terms, both
administration and management do the same functions such as
planning, organizing, commanding, coordination and
controlling
- Haralod Koonz, Ernest Dale, William Newman
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 29
Role of Management
īļ Interpersonal Roles
īƒ˜ Figure Head - Representing an organization
īƒ˜ Leader - Encouraging and Motivating Employees
īƒ˜ Liaison - Connecting outside world, develops external links
īļ Informational Roles
īƒ˜ Monitor – Receives information from various sources on
matters concerning organization
īƒ˜ Disseminators - Transmitting information within the
organization
īƒ˜ Spokesman - Transmitting information outside the
organization
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 30
īļ Decision Roles
īƒ˜ Entrepreneur - Encouraging New Ideas
īƒ˜ Disturbance handler - Conflict handler
īƒ˜ Resource allocator
īƒ˜ Negotiator - Managers has to negotiate in important matters
concerning the organization
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 31
Levels of Management
īļ First line[Lowest] or Supervisory Management
īƒ˜ Made-up of white collar supervisor
īļ Middle line
īƒ˜ Example: Sales Manager, Plant Manager, Personnel
Manager, Department Heads
īļ Top Management
īƒ˜ Consist of Board Chairman, Executives, MD’s, Secretary
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 32
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 33
Levels of Management
Managerial Skills Type
īļ Conceptual Skill
īƒ˜ Ability to think in abstract, ability to analyze the forces
working in a situation, creative and innovative ability.
īļ Technical Skill
īƒ˜ Managers understanding of the nature of job that people
under him have to perform
īļ Human Relation Skills
īƒ˜ Ability to interact effectively with people at all level
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 34
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 35
Managerial Skills at Different Management Levels
Development of Management Thought
īļ Management in antiquity[ Ancient]
īļ Early Management approaches(1750 - 1950)
īļ Modern Management approaches(Post - 1950)
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007
36
Management in Antiquity
īļ Egypt
īƒ˜ Egyptians planned, organized and managed thousands of
workers to build pyramids.
īļ China
īƒ˜ ‘The Great Wall of China’ is a proof of organization.
īƒ˜ Sun Tzu – ‘The Art of War’ {Early Management Thoughts}
īļ India
īƒ˜ ‘Artha Shastra’ written by Kautilya deals with trade,
commerce, law and order, taxation and revenue, war and
military strategies etc.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007
37
īļ Greece
īƒ˜ Greek philosopher Socrates defined management as skill
separate from technical knowledge and experience.
īļ Rome
īƒ˜ The Roman Catholic Church was an organization with well
defined structure and hierarchy.
īƒ˜ First managers evolved were in Rome where people were
hand picked and trained by the Roman Govt. to accomplish
much of its work
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007
38
Early Management Approaches
i. Effect of Industrial Revolution
ii. Evolution of Scientific Management
iii. Contribution of pioneers like
a) F W Taylor
b) Henri Fayol
c) Frank and Lilian Gilberth
d) Max Weber
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007
39
i. Effect of Industrial Revolution
īļ Prior to industrial revolution era, ‘Cottage Industry
Dominated’
īļ James Hargreaves – Spinning Jenny, 1770 {First Machine
to Spin Yarn}
īļ Richard Arkwright – Water Frame, 1771
īļ Samuel Crompton – Mule, 1779
īļ Edmund Cartwright – Power Loon, 1785
īļ James Watt – Steam Engine
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007
40
īļ Essence of Industrial Revolution
īƒ˜Transfer of skill from worker to machine
īƒ˜Creation of Machine
īļ Few Individuals took charge of large group in order to
manage and coordinate the efforts of group members –
Industrial Management
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007
41
ii. Evolution of Scientific Management
īļ Science, not rule of thumb.
īļ Harmony, not discord.
īļ Cooperation, not individualism.
īļ Maximum output, not restricted output.
īļ Specialization, not generalization.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007
42
Evolution of Management
īļ Early classical approaches
īƒ˜ Scientific approach
īƒ˜Administrative management and bureaucracy
īļ Neo-classical approaches
īƒ˜ Human relations movement and behavioral approach
īļ Modern approaches
īƒ˜ Represented by quantitative approach, systems approach
and contingency approach
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 43
The Evolution of Management Theory
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 44
Contributions of F W Taylor (1856 - 1915)
īļ Time-and-motion study
īƒ˜ Study the way workers perform their tasks, gather all the
informal job knowledge that workers possess and experiment
with ways of improving how tasks are performed
īļ Differential Payment
īƒ˜ F.W. Taylor, founder of the scientific management evolved this
system of wag payment. Under this system, there is no
guarantee of minimum wages. Standard time and standard
work is determined on the basis of time study.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 45
īļ Drastic Recognition of Supervision
īƒ˜ Separation of planning and doing
â€ĸ Work has to be planned by foreman and not by worker
īƒ˜ Functional Foremanship
â€ĸ worker has to select his tools and decide the order in which
the operations were to be performed
īļ Scientific Recruitment Training
īƒ˜ Need for scientific selection and development
īƒ˜ Training every worker to bring out his best.
īļ Intimate Friendly Cooperation between Management and
Workers
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 46
Frederick Taylor Scientific Management Concepts
īļ The development of a true science of management so that
the best method for performing each task could be
determined.
īļ The Scientific selection of workers so that the each workers
would be given responsibility for the task for which he or
she was best suited.
īļ The scientific education and development of workers.
īļ Intimate friendly cooperation between management and
labor
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 47
Contribution of F W Taylor
īļ Separation of Planning from Doing
īļ Functional Organization
īƒ˜ Workshop should be organized on the basis of workers
Specialization (Specialization not Generalization)
īļ Analysis of Jobs
īƒ˜ Time Study – Breaking a job into elements and then
studying the time required to complete each of these
elements.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007
48
īļ Careful Selection and Systematic Training
īļ Differential Piece-Rate Plan
īƒ˜ ‘More work, more Pay’ motto
īƒ˜ More efficient worker got a higher wage rate and a less
efficient worker got a lower wage
īļ Standardization of Tools and Equipment's
Note: Taylor wrote two books – ‘Shop Management (1903)’ and
‘Principles of Scientific Management (1911)’
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007
49
Contribution of Henri Fayol
īļ Henri Fayol is considered as the real Father of Modern
Management Theory.
īļ Henri Fayol published a book – ‘General and Industrial
Administration (1915)’.
īļ He was a mining engineer in a coal mining company in
France and then became a manager.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007
50
Contribution of Henri Fayol (1841-1925)
īļ Division of Work: People work best when they
specialize.
īļ Authority and Responsibility: Managers have authority
for work (Getting the work done through others)
īļ Discipline: Good discipline is essential and the
responsibility of managers.
īļ Unity of Command: Every employee should have one
superior who is responsible for their work.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 51
īļ Unity of Direction: There should be one manager in charge of
each group of organizational activities and they should work to
one plan.
īļ Subordination of Individual Interest to General Interest:
The interests of the organization as a whole come before the
interests of employees.
īļ Remunerations: Fair remunerations to be paid.
īļ Centralization: Managers have to decide the degree of
involvement of subordinates in decision-taking depending on
the task .
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 52
īļ Scalar Chain: (Hierarchy of Authority for Communication)
Communications should be from top down unless this causes
delays when a form of cross-communications can be agreed by
all involved.
īļ Order: People and materials should be in the right place at the
right time.
īļ Equity: Managers should be kind and fair to their
subordinates.
īļ Stability of tenure of personnel: There should be stability in
employee turnover and replacements.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 53
īļInitiative: Employees who are allowed to originate and carry
out plans will exert high levels of effort.
īļTeam spirit (Esprit de Corps): Managers should promote
team spirit in order to create harmony and unity in the
organization.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 54
Contribution of F B Gilbreth
ī‚— Evolving the principles of Motion Economy
ī‚— He proposed Motion study concept
ī‚— Introduced process chart in 1921 which gives overall picture of
an activity
ī‚— He Identifies Therbligs - the fundamental motions involved in
doing an activity
ī‚— Developed micro motion study and Simo; Simultaneous
Motion chart
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 55
īļInvented Micro Chronometer, Cycle graph, Chrono cycle
graph and flow diagram.
īļ Carried out studies on fatigue and its elimination.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 56
What is Motion study ?
īļMotion study is formal engineering analysis of motions perform to
accomplish work. The motion or movements of limbs of a worker
play a major part in the fabrication or the manufacture of the
products. By carefully observing a worker while he is doing an
operation, a number of movements made by him which appear to be
unnecessary and unproductive can be identified and eliminated.
īļThe purpose of motion study is to design as improved method which
eliminates unnecessary motions and employs human efforts more
productively. In doing so the principles of motion economy proves to
be very helpful.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 57
What is Work study ?
īļWork study is a term used to embrace the techniques of method study
and work measurement, which are employed to ensure the best
possible use of human and material resources in carrying out s
specified activity.
īļWork study is a generic term for those techniques, particularly
‘method study’ and ‘work measurement’, which are used in the
examination of human work in all its contexts and which lead
systematically to the investigation of all factors which affect the
efficiency and economy of the situation being renewed, in order to
effect improvement”.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 58
Contributions of Max Weber
īļ Max Weber – German Sociologist – Father of Bureaucracy
īļ Categories of organizations:
īƒ˜ Leader Oriented – no delegation of management activities,
employees serve as loyal subject of a leader.
īƒ˜ Tradition Oriented – Managerial positions are handled
down from generation to generation.
īƒ˜ Bureaucratic – delegation of management responsibilities
based on individuals ability to hold position.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007
59
Features of Bureaucratic Administration
īļ Insistence on following standard rules.
īļSystematic division of work
īļPrinciple of hierarchy
īļIndividuals should have knowledge and training in the
application rules
īļ Administrative acts, decisions, rules are recorded in writing
īļ Rational Personnel Administration – Merit based selection
and are paid according to hierarchy.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007
60
Dysfunctional Consequences of Bureaucracy
īļ Over conformity to rules
īļ Buck-passing (“stick to rule”) – independency of decision
making
īļ Categorization of queries in advance
īļDisplacement of goals
īļ No real right of appeal – client feel dissatisfied
īļ Neglect of informal groups – group dynamics
īļ Right structure
īļInability to satisfy the needs of mature individuals
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007
61
Modern Management Approaches
īļ Quantitative Approach to Management
īļ Behavioral or Human Relations Approach to Management
īļ Systems Approach to Management
īļ Contingency or Situational Approach to Management
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007
62
Quantitative Approach to Management
īļ Expressed in terms of mathematical symbols/statistics and
relationships.
īļ Criteria – Costs, revenues, return on investment, break even
point etc.
īļ Areas of quantitative approach:
īƒ˜ Operation Research
īƒ˜ Engineering Economy
īƒ˜ Operation Management
īƒ˜ Management Information Systems (MIS) etc.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007
63
Behavioral Approach to Management
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007
64
Theory of Needs/ Hierarchy of Needs
Applies the knowledge of
behavioral science, psychology,
sociology, anthropology etc., to
manage people.
Systems Approach to Management
īļ System: “a purposeful collection of people, objects and
procedures for operating within an environment to achieve a
pre-determined objective”
īļ System Comprises of :
īƒ˜ Input
īƒ˜ Conversion process
īƒ˜ Feedback System
īƒ˜ Goals and Plans
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007
65
Contingency Approach to Management
īļ The contingency approach to management emerged from the
real life experience of managers who found that no single
approach worked consistently in every situation.
īļ Contingency approach advocates that managerial actions and
organizational design must be appropriate to the given situation
and a particular action is valid only under certain conditions.
īļ There is no one best approach to management and it all
depends on the situation.
Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007
66
67

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meunit1introduction-170223105305

  • 1. Management and Entrepreneurship Presented By: Prakhyath Rai Asst. Professor, Dept. of ISE, SCEM, Mangaluru-575007 1
  • 2. Management Entrepreneurship īļ Management īļ Planning īļ Organizing and Staffing īļ Directing and Controlling īļ Entrepreneur īļ Small Scale Industry īļ Institutional Support īļ Preparation of Project Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 2
  • 3. Unit 1: Management īļ Introduction īļ Meaning-Nature and characteristics of Management īļ Management as a science and art īļ Roles of Management īļ Development of Management thought īļ Early Management approaches īļ Modern Management approaches. 3 Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007
  • 4. Why Management? Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 4
  • 5. What is Management? Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 5
  • 6. Few Definitions of Management īļ Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. īļ “Management is the art of getting things done through others.” - Mary Parker Follet. īļ “Management is knowing exactly what you want to do and then seeing that they do it the best and cheapest ways.” - F W Taylor. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 6
  • 7. īļ “Manage is to forecast and to plan, organize, to command, to co-ordinate and to control.” - Henry Fayol. īļ “Management is defined as the creation and maintenance of internal environment in an enterprise where individuals, working together in groups, can perform efficiently and effectively towards the attainment of group goals.” - Koontz and O’Donnel. īļ “Management is a multipurpose organ that manages a business, manages a manager and manages workers and work.” – John F. Mee. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 7
  • 8. Nature and Characteristics of Management īļ Management is Universal Process īƒ˜ Applied in all types of institutions – social, religious, political, military, commercial, bureaucratic etc. īƒ˜ Every organization whose aim is to achieve its goals through group efforts, needs planning, coordination, direction and control – Management īļ Management is a goal oriented īƒ˜ Management is directed towards achieving effectiveness and efficiency. { Effectiveness is nothing but the actual achievement of specific organizational goals while Efficiency is the attainment of those goals with an optimal use of resources.} Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 8
  • 9. īļ Management is a social process īƒ˜ Management basically deals with managing human beings and their emotions, talents, attitudes, culture, ethos, education etc. īƒ˜ Management includes retaining, developing and motivating people at work, as well as taking care of their satisfaction as social beings. īļ Management is a coordinating force īƒ˜ Orderly arrangement of activities to avoid duplication and overlapping. īƒ˜ Integrates human and physical resources. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 9
  • 10. īļ Management is intangible īƒ˜ Management cannot be touched and felt. īƒ˜ It does not have physical presence (It is an unseen force). īļ Management is multi-disciplinary īƒ˜ Management has received rich contribution from various disciplines like psychology, sociology, anthropology etc. īƒ˜ Management is about creating synergy (Synergy means “the whole is greater than the sum of its parts”). īļ Management is dynamic īƒ˜ Management is an on going process, it continues to operate as long as there is organized action for the achievement of group goals. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 10
  • 11. īļ Management is a creative activity īƒ˜ Management provides creative ideas and new imagination īļ Management is decision making īƒ˜ Management of an organization continuously takes decisions which decides the fate of the organization. īļ Management is a profession īƒ˜ Individuals can be trained and turned to become a management professional. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 11
  • 12. īļ Management as an Economic Resource Five M’s of Management īƒ˜ Money īƒ˜ Man īƒ˜ Material īƒ˜ Machinery īƒ˜ Methods īļ Management as a class or Elite īƒ˜ Managers constitutes a class of professional who are elite all over the world īƒ˜ A manager is a person who has people working under him, and that could be in any part of the activity Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 12 Scope of Management
  • 13. īļ Management as a System of Authority īƒ˜ According to Herbison and Myer, â€ĸ Rule making and rule enforcing body â€ĸ Web of relationships â€ĸ Mangers enjoy more authority than people working under them. â€ĸ Top management defines objectives and provides directions â€ĸ Middle management interprets and explains the policies framed by the top management â€ĸ Lower management is concerned with routine activities. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 13
  • 14. Scope of Management in Various areas of work (or) Functional areas of management īļ Production / Operations Management īƒ˜ Operations Management includes work analysis, planning, scheduling, routing, quality control, inventory control and work study. īļ Financial Management īƒ˜ It includes economic forecasting, cost accounting, budgeting, insurance and financial statistics. īļ Personnel Management or HR Development īƒ˜ Personnel management takes care of recruitment, placement, training, transfer, promotion, safety, health, welfare, services etc., of the employees. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 14
  • 15. īļ Marketing Management īƒ˜ It is the process of getting the right product to the right place in the right quantity at the right price and at the right time. īļ Maintenance Management īƒ˜ Maintenance refers to actions carried out to replace, repair or service all the components in a manufacturing plant so that it continues to operate at a required level for a specified time. īƒ˜ Direction and organization of resources in order to keep the buildings, equipment's and other service facilities in the working condition. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 15
  • 16. īļ Materials Management and purchasing īƒ˜ 3 Inputs to organizations – Men, Machines and Materials īƒ˜ Material Management – Planning, directing, controlling and coordinating all activities which are i/p to manufacturing process. īƒ˜ Purchasing and Procurement – 5 R’s {of the Right Quality, in the Right Quantity, from the Right Source, at the Right Prices, and at the Right Time} īļ Transport Management īƒ˜ Transportation of raw materials as well as finished goods īƒ˜ Includes studies on – transportation by rail, road, air and water, packing and warehousing etc., īƒ˜ Actions to reduce transportation costs. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 16
  • 17. īļ Systems Management īƒ˜ Modular decomposition of projects, delegate duties, track status periodically, communicate with clients, integrate modules, test the s/w and responsible for meeting the deadline for project completion. īļ Rural Management īƒ˜ Rural resources and issues management{such as Water resource management, forest and forest product management, crop management, cattle management, rural man power management}. īļ Office Management īƒ˜ Organized documentation of all activities īƒ˜ Planning and controlling all office work including maintaining and keeping records. īƒ˜ Clerks, Cashier, Accountants and Office Managers. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 17
  • 18. Functions of Management īļ Forecasting īƒ˜ Forecasting in the estimation of future sales in order to effectively plan production activities. īļ Planning īƒ˜ Planning of all activities to achieve production & sales as per targets. īƒ˜ Planning is necessary to avoid difficulties that may arise in future. īļ Organizing īƒ˜ Organizing in arranging money, material, machinery, men and selecting optimal methods of actual execution of work. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 18
  • 19. īļ Staffing īƒ˜ Staffing involves recruitment, selection, training and development of personnel required to run the organization. īļ Directing and Motivating īƒ˜ Directing and motivating the recruited employees so that they perform their duties effectively. īļ Controlling īƒ˜ Controlling the work of employees to ensure everything is proceeding as per plan. īļ Co-ordinating īƒ˜ Co-ordinating the efforts of all employees in all departments to move towards common goals. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 19
  • 20. īļ Communication īƒ˜ Communication system should be efficient so as to avoid confusion & misunderstanding. īļ Leadership īƒ˜ Leadership qualities required in managers and supervision. īļ Decision Making īƒ˜ Decision making to be professional and result oriented. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 20
  • 21. Management as a Science, Art and Profession Management as a Science: īļ Establishment of management principles scientifically. īļ Management is Social Science – As it deals with humans. īļ Management provides guidelines rather than absolute principles as in physics, chemistry and biology. īļ Scientific inquiry and observation īļ Experimentation Management as a Art: īļ Use of Knowledge īļ Creativity īļ Personal touch īļ Constant Practice Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 21
  • 22. Management as a Profession: īļ Management is also considered as a profession – one can study, acquire skills and qualify to become manager. īļ Like any profession, management has a systematic body of principles, techniques, and skills. Difference between Science and Art Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 22 Science Art 1. Defines Describes 2. Proves Feels 3. Predicts Guesses 4. Objective Subjective 5. Measures Opines 6. Impresses Expresses 7. Advances by knowledge Advances by practice
  • 23. Characteristics of Profession Vs Management īļ Well-defined body of knowledge īƒ˜ Profession have a systematic body of principles, techniques and skill. īƒ˜ Management also has a systematic body of principles, techniques and skill. īļ Formal Education and Training īƒ˜ Individual can enter a profession only after acquiring specific knowledge and skill through formal education and training. īƒ˜ To enter into management also, an individual has to acquire appropriate knowledge and training. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 23
  • 24. īļ Representative Body īƒ˜ Profession have regulatory bodies and strict code of conduct. īƒ˜ Managers don’t have a universal code of conduct and they also don’t have common regulatory body to ensure standard practices. īļ Service Motto īƒ˜ A professional has to have service as his motto and must safeguard the society from any risks. īƒ˜ Managers may not have such motto. Management conforms to most of the characteristics of a profession, and hence can be called as profession. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 24
  • 25. Management and Administration Three Views: Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 25
  • 26. First View :Administration is broader than Management īļ Administration is Policy Making function īļ Management is Policy realization function īļ Administration is Largely determinative while Management is essentially executive - Sprigel Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 26
  • 27. Difference Between Administration and Management Administration Management 1. Determining Objectives Planning the work to meet the objectives given by administration 2. Framing policies and principles Executes the policies and programs 3. Framework under which one has to work Supervises and control execution of work 4. Direction, guidance and leadership and brings in resources Coordinates all the resources and activities 5. Comes first and Provides guidelines to the management and organization Comes Second and derives strength and freedom from administration to plan and execute work Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 27
  • 28. Second View :Management is broader than Administration īļ Management is wider concept than administration - Henry Fayol, EFL Brech. īļ Management is the rule making, rule enforcing, all encompassing body while administration implements and carries out the policies of the management Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 28
  • 29. Third View :Administration and Management are identical īļ Hardly any distinction between the two terms, both administration and management do the same functions such as planning, organizing, commanding, coordination and controlling - Haralod Koonz, Ernest Dale, William Newman Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 29
  • 30. Role of Management īļ Interpersonal Roles īƒ˜ Figure Head - Representing an organization īƒ˜ Leader - Encouraging and Motivating Employees īƒ˜ Liaison - Connecting outside world, develops external links īļ Informational Roles īƒ˜ Monitor – Receives information from various sources on matters concerning organization īƒ˜ Disseminators - Transmitting information within the organization īƒ˜ Spokesman - Transmitting information outside the organization Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 30
  • 31. īļ Decision Roles īƒ˜ Entrepreneur - Encouraging New Ideas īƒ˜ Disturbance handler - Conflict handler īƒ˜ Resource allocator īƒ˜ Negotiator - Managers has to negotiate in important matters concerning the organization Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 31
  • 32. Levels of Management īļ First line[Lowest] or Supervisory Management īƒ˜ Made-up of white collar supervisor īļ Middle line īƒ˜ Example: Sales Manager, Plant Manager, Personnel Manager, Department Heads īļ Top Management īƒ˜ Consist of Board Chairman, Executives, MD’s, Secretary Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 32
  • 33. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 33 Levels of Management
  • 34. Managerial Skills Type īļ Conceptual Skill īƒ˜ Ability to think in abstract, ability to analyze the forces working in a situation, creative and innovative ability. īļ Technical Skill īƒ˜ Managers understanding of the nature of job that people under him have to perform īļ Human Relation Skills īƒ˜ Ability to interact effectively with people at all level Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 34
  • 35. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 35 Managerial Skills at Different Management Levels
  • 36. Development of Management Thought īļ Management in antiquity[ Ancient] īļ Early Management approaches(1750 - 1950) īļ Modern Management approaches(Post - 1950) Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 36
  • 37. Management in Antiquity īļ Egypt īƒ˜ Egyptians planned, organized and managed thousands of workers to build pyramids. īļ China īƒ˜ ‘The Great Wall of China’ is a proof of organization. īƒ˜ Sun Tzu – ‘The Art of War’ {Early Management Thoughts} īļ India īƒ˜ ‘Artha Shastra’ written by Kautilya deals with trade, commerce, law and order, taxation and revenue, war and military strategies etc. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 37
  • 38. īļ Greece īƒ˜ Greek philosopher Socrates defined management as skill separate from technical knowledge and experience. īļ Rome īƒ˜ The Roman Catholic Church was an organization with well defined structure and hierarchy. īƒ˜ First managers evolved were in Rome where people were hand picked and trained by the Roman Govt. to accomplish much of its work Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 38
  • 39. Early Management Approaches i. Effect of Industrial Revolution ii. Evolution of Scientific Management iii. Contribution of pioneers like a) F W Taylor b) Henri Fayol c) Frank and Lilian Gilberth d) Max Weber Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 39
  • 40. i. Effect of Industrial Revolution īļ Prior to industrial revolution era, ‘Cottage Industry Dominated’ īļ James Hargreaves – Spinning Jenny, 1770 {First Machine to Spin Yarn} īļ Richard Arkwright – Water Frame, 1771 īļ Samuel Crompton – Mule, 1779 īļ Edmund Cartwright – Power Loon, 1785 īļ James Watt – Steam Engine Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 40
  • 41. īļ Essence of Industrial Revolution īƒ˜Transfer of skill from worker to machine īƒ˜Creation of Machine īļ Few Individuals took charge of large group in order to manage and coordinate the efforts of group members – Industrial Management Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 41
  • 42. ii. Evolution of Scientific Management īļ Science, not rule of thumb. īļ Harmony, not discord. īļ Cooperation, not individualism. īļ Maximum output, not restricted output. īļ Specialization, not generalization. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 42
  • 43. Evolution of Management īļ Early classical approaches īƒ˜ Scientific approach īƒ˜Administrative management and bureaucracy īļ Neo-classical approaches īƒ˜ Human relations movement and behavioral approach īļ Modern approaches īƒ˜ Represented by quantitative approach, systems approach and contingency approach Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 43
  • 44. The Evolution of Management Theory Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 44
  • 45. Contributions of F W Taylor (1856 - 1915) īļ Time-and-motion study īƒ˜ Study the way workers perform their tasks, gather all the informal job knowledge that workers possess and experiment with ways of improving how tasks are performed īļ Differential Payment īƒ˜ F.W. Taylor, founder of the scientific management evolved this system of wag payment. Under this system, there is no guarantee of minimum wages. Standard time and standard work is determined on the basis of time study. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 45
  • 46. īļ Drastic Recognition of Supervision īƒ˜ Separation of planning and doing â€ĸ Work has to be planned by foreman and not by worker īƒ˜ Functional Foremanship â€ĸ worker has to select his tools and decide the order in which the operations were to be performed īļ Scientific Recruitment Training īƒ˜ Need for scientific selection and development īƒ˜ Training every worker to bring out his best. īļ Intimate Friendly Cooperation between Management and Workers Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 46
  • 47. Frederick Taylor Scientific Management Concepts īļ The development of a true science of management so that the best method for performing each task could be determined. īļ The Scientific selection of workers so that the each workers would be given responsibility for the task for which he or she was best suited. īļ The scientific education and development of workers. īļ Intimate friendly cooperation between management and labor Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 47
  • 48. Contribution of F W Taylor īļ Separation of Planning from Doing īļ Functional Organization īƒ˜ Workshop should be organized on the basis of workers Specialization (Specialization not Generalization) īļ Analysis of Jobs īƒ˜ Time Study – Breaking a job into elements and then studying the time required to complete each of these elements. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 48
  • 49. īļ Careful Selection and Systematic Training īļ Differential Piece-Rate Plan īƒ˜ ‘More work, more Pay’ motto īƒ˜ More efficient worker got a higher wage rate and a less efficient worker got a lower wage īļ Standardization of Tools and Equipment's Note: Taylor wrote two books – ‘Shop Management (1903)’ and ‘Principles of Scientific Management (1911)’ Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 49
  • 50. Contribution of Henri Fayol īļ Henri Fayol is considered as the real Father of Modern Management Theory. īļ Henri Fayol published a book – ‘General and Industrial Administration (1915)’. īļ He was a mining engineer in a coal mining company in France and then became a manager. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 50
  • 51. Contribution of Henri Fayol (1841-1925) īļ Division of Work: People work best when they specialize. īļ Authority and Responsibility: Managers have authority for work (Getting the work done through others) īļ Discipline: Good discipline is essential and the responsibility of managers. īļ Unity of Command: Every employee should have one superior who is responsible for their work. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 51
  • 52. īļ Unity of Direction: There should be one manager in charge of each group of organizational activities and they should work to one plan. īļ Subordination of Individual Interest to General Interest: The interests of the organization as a whole come before the interests of employees. īļ Remunerations: Fair remunerations to be paid. īļ Centralization: Managers have to decide the degree of involvement of subordinates in decision-taking depending on the task . Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 52
  • 53. īļ Scalar Chain: (Hierarchy of Authority for Communication) Communications should be from top down unless this causes delays when a form of cross-communications can be agreed by all involved. īļ Order: People and materials should be in the right place at the right time. īļ Equity: Managers should be kind and fair to their subordinates. īļ Stability of tenure of personnel: There should be stability in employee turnover and replacements. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 53
  • 54. īļInitiative: Employees who are allowed to originate and carry out plans will exert high levels of effort. īļTeam spirit (Esprit de Corps): Managers should promote team spirit in order to create harmony and unity in the organization. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 54
  • 55. Contribution of F B Gilbreth ī‚— Evolving the principles of Motion Economy ī‚— He proposed Motion study concept ī‚— Introduced process chart in 1921 which gives overall picture of an activity ī‚— He Identifies Therbligs - the fundamental motions involved in doing an activity ī‚— Developed micro motion study and Simo; Simultaneous Motion chart Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 55
  • 56. īļInvented Micro Chronometer, Cycle graph, Chrono cycle graph and flow diagram. īļ Carried out studies on fatigue and its elimination. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 56
  • 57. What is Motion study ? īļMotion study is formal engineering analysis of motions perform to accomplish work. The motion or movements of limbs of a worker play a major part in the fabrication or the manufacture of the products. By carefully observing a worker while he is doing an operation, a number of movements made by him which appear to be unnecessary and unproductive can be identified and eliminated. īļThe purpose of motion study is to design as improved method which eliminates unnecessary motions and employs human efforts more productively. In doing so the principles of motion economy proves to be very helpful. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 57
  • 58. What is Work study ? īļWork study is a term used to embrace the techniques of method study and work measurement, which are employed to ensure the best possible use of human and material resources in carrying out s specified activity. īļWork study is a generic term for those techniques, particularly ‘method study’ and ‘work measurement’, which are used in the examination of human work in all its contexts and which lead systematically to the investigation of all factors which affect the efficiency and economy of the situation being renewed, in order to effect improvement”. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 58
  • 59. Contributions of Max Weber īļ Max Weber – German Sociologist – Father of Bureaucracy īļ Categories of organizations: īƒ˜ Leader Oriented – no delegation of management activities, employees serve as loyal subject of a leader. īƒ˜ Tradition Oriented – Managerial positions are handled down from generation to generation. īƒ˜ Bureaucratic – delegation of management responsibilities based on individuals ability to hold position. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 59
  • 60. Features of Bureaucratic Administration īļ Insistence on following standard rules. īļSystematic division of work īļPrinciple of hierarchy īļIndividuals should have knowledge and training in the application rules īļ Administrative acts, decisions, rules are recorded in writing īļ Rational Personnel Administration – Merit based selection and are paid according to hierarchy. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 60
  • 61. Dysfunctional Consequences of Bureaucracy īļ Over conformity to rules īļ Buck-passing (“stick to rule”) – independency of decision making īļ Categorization of queries in advance īļDisplacement of goals īļ No real right of appeal – client feel dissatisfied īļ Neglect of informal groups – group dynamics īļ Right structure īļInability to satisfy the needs of mature individuals Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 61
  • 62. Modern Management Approaches īļ Quantitative Approach to Management īļ Behavioral or Human Relations Approach to Management īļ Systems Approach to Management īļ Contingency or Situational Approach to Management Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 62
  • 63. Quantitative Approach to Management īļ Expressed in terms of mathematical symbols/statistics and relationships. īļ Criteria – Costs, revenues, return on investment, break even point etc. īļ Areas of quantitative approach: īƒ˜ Operation Research īƒ˜ Engineering Economy īƒ˜ Operation Management īƒ˜ Management Information Systems (MIS) etc. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 63
  • 64. Behavioral Approach to Management Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 64 Theory of Needs/ Hierarchy of Needs Applies the knowledge of behavioral science, psychology, sociology, anthropology etc., to manage people.
  • 65. Systems Approach to Management īļ System: “a purposeful collection of people, objects and procedures for operating within an environment to achieve a pre-determined objective” īļ System Comprises of : īƒ˜ Input īƒ˜ Conversion process īƒ˜ Feedback System īƒ˜ Goals and Plans Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 65
  • 66. Contingency Approach to Management īļ The contingency approach to management emerged from the real life experience of managers who found that no single approach worked consistently in every situation. īļ Contingency approach advocates that managerial actions and organizational design must be appropriate to the given situation and a particular action is valid only under certain conditions. īļ There is no one best approach to management and it all depends on the situation. Prakhyath Rai, Asst. Professor, Department of ISE, SCEM, Mangaluru-575007 66
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