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2. 1. Management as an art, science and profession
2.Management Definition, functions & levels
3. Manager vs Entrepreneur
4. Types of managers
5. Mangerial roles and skills
6 .Evolution of Management
* Scientific management
* Hendry fayol’s fourteen principles of management
7.Types of business organisation
8. Current trends and issues

3. Management by Different Authors
⚫F.W. Taylor - “Art of knowing what you want to do and
then seeing that it is done the bestand cheapestway”.
⚫Henry Fayol – “To Manage is to forecast, to plan, to
organize, tocommand, toco-ordinateand tocontrol”.
⚫Peter F. Drucker – ”Management is work and as such it
has its own skills, its own tools and its own
techniques”.
⚫Mary Parker Follet - “Management is the art of getting
thingsdone through and with people”.
⚫George R. Terry – “Consisting of planning, organizing,
actuating and controlling”.

4. Management
⚫Management – Process of designing and maintaining
an environment in which
effectively
individuals,
accomplish
working
selected
together in groups,
aims.
Businessorganizations
Non – Business organizations

6. Because,
⚫Every Organization human resources are different
attitudes, aspirations and perceptions. So standard results
may not be obtained.
⚫Readymade and standard solution can not be obtained.
⚫Management iscomplex and unpredictable.
⚫Every organization Decisions are influenced by the
environment.
⚫Theenvironment is complex and unexpected changes.
Management is inexact Science

7. Art means application of skill in finding a desired
result.
Art is the wayof doing things skillfully.
Management is an art because of the following
facts.
 Management process involves the use of practical
knowledge and personal skill.
 Management is creative.
 Application of practical knowledge and certain skills
helps toachieveconcrete results.
Management is an art

8. Management is a science because it contains general
principles.
It is also an art because it requires certain personal skills to
achievedesired results
Management is considered as art and science. The art
of managing begins where Science of managing stops
to make management complete.
Management is both Science and
an art

9. Characteristics of Management
⚫Is a Process /a function.
⚫Isa Social Process.
⚫Involves Group Effort.
⚫Aimsatachieving predetermined objectives.
⚫Required at all levelsof management.
⚫Isa profession.
⚫Isan artand science.

10. Management functions / The
process of Management
⚫Newmanand Summer– organizing, planning, leading
and controlling.
⚫Henri Fayol and Koontz and O’Donnell – Planning,
organising, commanding, coordinating and
controlling.
⚫Gulick – POSDCORB - Planning, Organising, Staffing,
Directing, Coordinating, Reporting and Budgeting
⚫Warren Haynes and Joseph Massie – Decision making
and communicating.
⚫“External element affect theoperation”

11. Functions Of Management
⚫Planning
⚫Look ahead and chartout futurecourse of operation
⚫Formulation of Objectives, Policies, Procedure, Rules,
Programmes and Budgets
⚫Organizing
⚫Bringing people togetherand tying them together in the
pursuitof common objectives.
⚫Enumerationof activities, classification of activities, fitting
individuals into functions, assignment of authority for
action.
⚫Human organisation and Material Organisation.

12. ⚫Directing
⚫ Act of guiding, overseeing and leading people.
⚫ Motivation, leadership, decision making.
⚫ Financial and Non-financial.
⚫Controlling
⚫ Laying standards, comparing actualsand correcting deviation-
achieveobjectives according to plans.
⚫Co-ordination
⚫ Synchronizing and unifying theactionsof agroupof people.
⚫Innovation
⚫ Finding new uses forold ones.
⚫Representation
⚫ Variousoutsidegroups.
⚫ “Blend intoeach other”

14. Skills and Management levels

21. Manager vs Entrepreneur

22. Evolution of Management
MANAGEMENT THOUGHTS PERIOD
Early Contributions Upto 19th century
Scientific Management 1900-1930
Administrative/operational
management
1916-1940
Human relations approach 1930-1950
Social systems approach 1940-1950
Decision theory approach 1945-1965
Management science approach 1950-1960
Human behavior approach 1950-1970
Systems approach 1960s onwards
Contingency approach 1970s onwards

24. Management theories
⚫Pre-scientific theories
⚫Classical theories
⚫Taylor’s scientific theory-Scientific management theory
⚫Fayol’s administrative theory- administrative theory
⚫Weber’s bureaucracy theory
⚫Behavioural theories
⚫Human relations theory- Elton Mayo & Henery Gantt
⚫Quantitative theory
⚫Systems theory
⚫Contingency theory
⚫Operational theory

25. Job specialization
⚫Adam Smith, 18th centuryeconomist, found
firms manufactured pins in twoways:
⚫Craft -- each workerdid all steps.
⚫Factory -- each workerspecialized in 1 step.
⚫Smith found that the factory method had much
higherproductivity.
⚫Each worker becamevery skilled at 1 specific
task.
⚫Breaking down the total joballowed for the
division of labor.

26. Scientific Management theory
⚫Modern management began in the late
19th century.
⚫Organizations were seeking ways to
bettersatisfy customer needs.
⚫Machinery was changing the way the
goods were produced.
⚫Managers had to increase theefficiency
of theworker-task mix.

27. Scientific Management - F.W.Taylor
⚫Scientific Management - The systematic study
of the relationships btn people & tasks for the
purpose of redesigning the work process for
higherefficiency.
⚫Defined by Frederick Taylorin the late 1800’s
⚫Wanted to replace “rule of thumb”
⚫Sought to reduce the time a worker spent on
each task by optimizing the way the task was
done.

30. Problems - Scientific Management
⚫Managersoften implemented only the
increased outputside of Taylor’splan.
⚫Theydid notallowworkers toshare in
increased output.
⚫Specialized jobs becamevery boring, dull.
⚫Workers ended up distrusting Scientific
Management.
⚫Workerscould purposely “under-perform”
⚫Management responded with increased useof
machines.

31. Henri Fayol was known as the father of modern
management

32. 1.Henri Fayol (1841-1925) was a French management
theorist whose theories concerning scientific
organisation of labour were widely influential in the
beginning of twentieth century.
2.He graduated from the mining academy of St.
Etienne in 1860 in mining engineering.
3.His theories deal with organisation of production in
the context of a competitive enterprise that has to
control its production costs.
4.Fayol was the first to identify four functions of
management – Planning, Organising, Directing and
Controlling although his version was a bit different –
Plan, Organise, Command, Coordinate and Control.

34. 1. Division of Work
In practice, employees are specialized in different areas and they have different skills.
Different levels of expertise can be distinguished within the knowledge areas (from
generalist to specialist).
Personal and professional developments support this.
According to Henri Fayol specialization promotes efficiency of the workforce and
increases productivity.
In addition, the specialization of the workforce increases their accuracy and speed. This
management is applicable to both technical and managerial activities.
2. Authority and Responsibility
In order to get things done in an organization, management has the authority to give
orders to the employees. Of course with this authority comes responsibility.
The accompanying power or authority gives the management the right to give orders
to the subordinates.
The responsibility can be traced back from performance and it is therefore necessary to
make agreements about this.
In other words, authority and responsibility go together and they are two sides of the
same coin.

35. 3. Discipline
It is often a part of the core values of a mission and vision in the form of good
conduct and respectful interactions.
This management principle is essential and is seen as the oil to make the
engine of an organization run smoothly.
4. Unity of Command
The management principle ‘Unity of command’ means that an individual
employee should receive orders from one manager and that the employee is
answerable to that manager.
If tasks and related responsibilities are given to the employee by more than
one manager, this may lead to confusion which may lead to possible conflicts
for employees.
By using this principle, the responsibility for mistakes can be established more
easily.
5. Unity of Direction
All employees deliver the same activities that can be linked to the same
objectives. All activities must be carried out by one group that forms a team.
The manager is ultimately responsible for this plan and he monitors the
progress of the defined and planned activities.
Focus areas are the efforts made by the employees and coordination.

36. 6. Subordination of Individual Interest
It indicated that personal interests are subordinate to the interests of the organization
(ethics). The primary focus is on the organizational objectives and not on those of the
individual.
This applies to all levels of the entire organization, including the managers.
7. Remuneration
Motivation and productivity are close to one another as far as the smooth running of
an organization is concerned.
The remuneration should be sufficient to keep employees motivated and productive.
There are two types of remuneration namely non-monetary (a compliment, more
responsibilities, credits) and monetary (compensation, bonus or other financial
compensation).
8. The Degree of Centralization
Management and authority for decision-making process must be properly balanced in
an organization.
This depends on the volume and size of an organization including its hierarchy.
Centralization implies the concentration of decision making authority at the top
management (executive board). Sharing of authorities for the decision-making process
with lower levels (middle and lower management), is referred to as decentralization.`

37. 9. Scalar Chain
Hierarchy presents itself in any given organization. This varies from
senior management (executive board) to the lowest levels in the
organization.
It states that there should be a clear line in the area of authority (from
top to bottom and all managers at all levels).
This can be seen as a type of management structure. Each employee can
contact a manager or a superior in an emergency situation without
challenging the hierarchy.
Especially, when it concerns reports about calamities to the immediate
managers/superiors.
10. Order
The employees in an organization must have the right resources at their
disposal so that they can function properly in an organization.
In addition to social order (responsibility of the managers) the work
environment must be safe, clean and tidy.

38. 11. Equity
The management principle of equity often occurs in the core values of an
organization.
*Employees must be treated kindly and equally.
*Employees must be in the right place in the organization to do things
right.
*Managers should supervise and monitor this process and they should
treat employees fairly and impartially.
12. Stability of Tenure of Personnel
It represents deployment and managing of personnel and this should be
in balance with the service that is provided from the organization.
Management strives to minimize employee turnover and to have the
right staff in the right place.
Focus areas such as frequent change of position and sufficient
development must be managed well.

39. 13. Initiative
*employees should be allowed to express new ideas.
*This encourages interest and involvement and creates added value for
the company.
*Employee initiatives are a source of strength for the organization This
encourages the employees to be involved and interested.
14. Esprit de Corps
*The management principle ‘esprit de corps’ of the 14 principles of
management stands for striving for the involvement and unity of the
employees.
Managers are responsible for the development of morale in the
workplace; individually and in the area of communication.
Esprit de corps contributes to the development of the culture and
creates an atmosphere of mutual trust and understanding.
In conclusion the 14 principles of management can be used to manage
organizations and are useful tools for forecasting, planning, process
management, organization management, decision-making,
coordination and control.

40. Elton Mayo's theory was based on his employee
observations productivity levels under different
environmental conditions.
Mayo's management theory states that employees are motivated
far more by relational factors such as attention and camaraderie
than by monetary rewards or environmental factors, such as
lighting, humidity and more.

41. •According to Mayo's theory,
groups with low
cohesiveness(unity) and low
norms(standards) are ineffective
with no impact, since no
members are motivated to excel.
•Groups having high
cohesiveness and low norms
have negative impacts, since
team members buoy(sustain) up
negative behaviour.
•Groups who have low
cohesiveness and high norms
have a few positive effects
through individual member
actions.

42. Human Relations Approach
⚫The business organization is a social system.
⚫Theemployees notonly haveeconomic needs but
also psychological needs & social needs, which
are required to be served properly to motivate
them.
⚫Employees preferself-control & self-direction.
⚫Employee oriented democratic participative style
of management is more effective than
mechanistic task oriented management style.
⚫The informal groupshould be recognized &
officiallysupported.

43. ⚫Criticized that the approach laid heavy
emphasis on the human side as against the
organizational needs.
⚫However, thecontribution of this approach lies
in the fact that it advises managers to attach
importance to the human side of an
organization.
Problems - Human Relations
Approach

44. Systems Approach
⚫General Systems Theory
⚫An interdisciplinary area of study based on
the assumptions that everything is part of a
larger, interdependent arrangement
⚫Levelsof systems
⚫Identification of systems at various levels
helps translateabstract systems theory into
moreconcrete terms.
⚫Each system is a subsystem of thesystem
above it.

47. Systems Approach
⚫Closed Versus Open Systems
⚫Closed system: A self-sufficient entity
⚫Open system: Dependson its surrounding
environment forsurvival
⚫New Directions in Systems Thinking
⚫Organizational learning and knowledge
management – Organizations are living and
thinking open systems that learn and engage in
complex mental processes.
⚫Chaos theory – Every complex system has a lifeof
its own, with its own rule book.
⚫Complex adaptive systems - Self-organizing

48. Systems Approach
⚫Lessons from the Systems Approach
⚫Managers now havea greaterappreciation for
the importance of seeing thewhole picture.
⚫Managershould not become preoccupied with
one aspect of organizational management
while ignoring other internal and external
realities.
⚫The systems approach tries to integrate
various management theories.
⚫Criticism: Shorton verifiable facts and
practical advice.

49. The Contingency Approach
⚫A research effort todetermine which managerial
practices and techniques are appropriate in
specific situations.
⚫Contingency refers to thechoiceof an alternative
courseof action.
⚫Contingency management has become
synonymous with situational management.
⚫Application of various management tools &
techniques must be appropriate for the
particularsituation.
⚫Especiallyapplicable in intercultural dealings.

50. The Contingency Approach
⚫An open-system perspective
⚫Howsubsystems combine to interactwith
outside systems
⚫A practical research orientation
⚫Translating research findings into toolsand
situational refinements for more effective
management.
⚫A multivariateapproach
⚫Manyvariables collectively account for
variations in performance.

51. The Contingency Approach/
situational approach
⚫Lessons from the Contingency Approach
⚫Approach emphasizes situational
appropriateness rather than rigid adherence
to universal principles
⚫Practical extension of thesystems approach
⚫Criticism: Creates the impression that an
organization is captive to its environment

52. Contingency Theory
⚫“There is noone best way toorganize”
⚫The idea that the organizational structures
and control systems managerchoosedepend
on—are contingenton—characteristics of
the external environment in which the
organization operates.

53. Type of Structure
Mechanistic Structure
⚫Authority is centralized at the top.
(Theory X)
⚫Employees areclosely monitored and
managed.
⚫Can beveryefficient in a stable
environment.

54. Type of Structure
Organic Structure
⚫Authority is decentralized throughout the
organization. (Theory Y)
⚫Control is much looser
⚫Reliance on shared norms is greater
⚫Works best when environment is
unstable and rapidly changing

56. Sole Proprietorship
Partnerships (Limited/Gen)
Corporations
Non-profits

57. Sole Proprietorship- 72% of businesses

58. Economic Weakness of sole
proprietorship:
⚫ Unlimited Liability: Total responsibility for all
debts and liabilities of the company
⚫ Difficulty in raising financial capital
Limited size and efficiency
⚫ Limited managerial experience
⚫ Limited Life
Advantages of sole
proprietorships
⚫ Ease of start up
⚫ Ease of Management
⚫ You keep all profits
⚫ You do not have to pay any business ⚫
taxes
⚫ Psychological advantages
⚫ Ease of exit

59. ⚫If you have started yourown business some of the 4 Factors
of productionyou would need are
Land Labor
Entrepreneur

60. 9% of businesses

61. Two majortypesof partnerships:
⚫General Partnership: (most common type) all partners are
responsible for management and the financial responsibilitiesof
the partnership.
⚫Limited Partnership: at least one partner is not active in theday
today running of the business. They have limited liability.
Articlesof Partnership: contract between partners spelling out
the rules of partnership.
Dividing profit
Dividing responsibility
Admitting new partners
Buying out partners
Partnerships

62. Advantagesof Partnerships:
⚫ Ease of establishment
⚫ Ease of Management: each partner has
different things to offer
⚫ No special business taxes
⚫ Easier to raise financial capital
⚫ Larger than sole proprietorship
⚫ Easier to attract qualified workers
Disadvantages of
Partnerships
⚫ Unlimited liability
⚫ Limited partner is only
responsible for his initial
investment. He has limited
liability.
⚫ Limited Life
⚫ Conflict between partners
Partnerships

63. Corporations- 20% of Business 74%-
profits

64. ⚫Incorporate: to form acorporation.
⚫Charter: a documentgranted by the stategiving
acorporation the right todo business
⚫Stock: shares of ownership in thecorporation
⚫Stockholders (shareholders): ownersof stock.
Reasons toown stock:
Dividends: shareof corporate profits paid to
stockholders
Speculation: buy in hope that priceof stock will
increase.
Corporation- Set up

65. ⚫Common Stock - basicshare of ownership in acorporation
⚫Havevoting rights in the management of thecompany
⚫In reality they turnovervoting rights tosomeoneelsewith a
proxy: giving someoneelse the right tovoteyourshare of
stock.
⚫Preferred Stock:
Nonvoting sharesof ownership, Guaranteed dividend
Liquidation benefit: If corporation goesoutof business they
areahead of common stockholders in getting back money.
⚫Board of Directors: duty todirect thecorporations business
bysetting board policiesand goals
Elected bycommon stockholders
⚫Hires a professional management team torun day today
activities. (CEO, CFO….)
Corporation- Ownership

66. Advantages of a corporation:
⚫ Ease of raising financial capital
(main advantage)
⚫Selling stock to investors
⚫Selling bonds: a written promise to
repay a loan on a specific date
⚫Principal: the amount borrowed
⚫Interest: the price paid for the use of
another’s money
⚫Borrowing money from banks.
⚫ Ability to hire
⚫ Limited liability
⚫ Unlimited life
⚫ Ease of transferring ownership:.
Buying and selling stock is easy and is
done millions of times a day
⚫ Disadvantages of a
corporation:
⚫ Start up expenses are high.
⚫ Stockholders (owners) have
a limited
⚫ Profits are taxed
⚫ Corporations are subject to
more government regulations
than sole proprietors or partners
Corporations

67. PUBLIC vs. PRIVATE ENTERPRISE

87. Essential characteristics fora subject to beconsidered as a
science:
The existenceof a systematic bodyof knowledgewith
array of principles.
Based on Scientific enquiry
Principleshould beverifiable
Reliable basis forpredicting futureevents Science
is classified in to two types, theyare exact science
and inexact science.
In exact science resultsare accurate.
Management is inexact science.
Management as a Science or an Art