2. Concept of Management
Nature and scope of management;
Management : science or Arts; Skills
of managers, productivity, efficiency
and effectiveness.
The Social Psychology of Industry-
JAC Brown
3. The history of industrialization
Lewis Mumford- Technics and Civilization
Eotechnic era/ medieval phase - 1000-
1750
The role of owner/manager/worker/marketing -
merged in one person
Paleotechnic era
factory system/ joint stock company system
The role of owner + manager merged
4. Neotechnic era
Mass production
Large industrial enterprise
Huge investment is needed- Share holders
are the owners---Manager----Workers
Industrial organizations have become
competitive and demanding work place
There is possibility of no difference in
technical skill but people's skill may differ
5. Why managers fail ?
According to Hymowitz (1988) because of
poor interpersonal skill
What managers do ?
Managers get things done through other
people. They take decisions, allocate
resources, and direct the activities of
others to attain goals.
6. Definition of management
According to Weihrich & Koontz ( 1994)
management is the process of designing and
maintaining an environment in which individuals,
working together in groups, efficiently accomplish
selected aims.
7. This basic definition needs to
be expanded:
1. As managers, people carry out the
managerial functions of planning,
organizing, staffing, leading, and
controlling.
2. management applies to any kind of
organization.
3. it applies to managers at all
organizational levels.
8. 4. the aim of all managers is the same: to
create a surplus.
5. managing is concerned with productivity;
this implies effectiveness and efficiency.
According to Robbins (1998) the people who
oversee the activities of others and who
are responsible for attaining goals in
organizations are managers.
9. Management functions
Henri Fayol, a French industrialist wrote
that managers perform five functions.
Today we have condensed those to four:
Planning: Defining goals, establishing
strategy, and developing plans to
coordinate activities.
Organizing: Determining what tasks are to
be done, who is to do them, how the tasks
are to be grouped, who reports to whom,
and where decisions are to be made.
10. Management functions
Continue………
Leading: includes motivating
subordinates, directing others, selecting
the most effective communication
channels, and resolving conflicts.
Controlling: Monitoring activities to ensure
they are being accomplished as planned
and correcting any significant deviation.
11. Management functions Continue….
Henry Mintzberg ( 1973) observed 5 managers and
noted what they did on the job
1. Interpersonal roles
figurehead- symbolic head - ceremonies
leader- responsible for motivation
liaison- outside contact
2. Informational
monitor- receives wide variety of information
disseminator- transmits information to members
spokesperson- transmits information to outsiders
13. Managerial Skills
1. Technical skills: The ability to apply specialized
knowledge or expertise. Many people are
technically proficient but interpersonally
incompetent.
2. Human skills: The ability to work with,
understand, and motivate other people, both
individually and in groups.
3. Conceptual skills: The mental ability to analyze
and diagnose complex situations.
14. ALLOCATION OF ACTIVITY BY TIME
Average managers
Successful managers
Effective managers
15. Successful defined in terms of the speed
of promotion.
Effective defined in terms of the quality
and quantity of their performance,
satisfaction and committment
16. Effcetive Vs. Successful managerial
activities
Luthans et al. studied 450 managers. These
managers were engaged in four managerial
activities.
Traditional management (T.M.): Decision
making, Planning and controlling.
Communication (Comm): Exchanging routine
information and process paper work.
Human Resource Management (H.R.M):
Motivating, disciplining, managing conflict,
staffing, training.
Net working (N.W): Socializing, politicking and
interacting with outsiders.
20. Challenges and opportunities
in organizations
Changes in bonds of loyalty:
Employee is getting older
Women work force
Corporate restructuring
Cost cutting
Global competition
Innovation
21. Critical issues
Improving quality and productivity
Total quality management
A philosophy of management that is
driven by the constant attainment of
customer satisfaction through the
continuous improvement of all
organizational processes.
22. What is quality management ?
1. intense focus on the customer
2. concern for continual improvement
3. improvement in the quality of everything
the organization does.
4. accurate measurement
5. empowerment of employees.
23. Critical issues continue……
Reengineering
Reconsiders how work would be done and the
organization structured if they were being
created from scratch
Employees participation is needed in planning
any change
Improving people skills
effective listener
proper way to give performance feedback
how to delegate authority
how to create effective team
your own experience
24. Critical issues continue……
MANAGING WORK FORCE DIVERSITY
you have to become more accommodating
with regard to their:
different life style
family needs
work styles
if not managed properly it will lead to:
higher turnover
more difficult communication
more interpersonal conflict
25. Critical issues continue……
Responding to globalization/
empowering people
managers are being called coaches, advisors,
sponsors, facilitators
decision making is being pushed down to the
operating level where workers are being given
the freedom to make choices about schedules,
procedures, and solving work related problems
Now managers have to learn how to give up
control and employees have to learn how to take
responsibility
26. Critical issues continue……
Stimulating innovation and change
stimulate employees creativity and tolerance for
change
Coping with temporariness
because of ongoing change employees have to update
their knowledge and skills
flexibility, change in teams, quality circles
27. Critical issues continue……
Declining employee loyalty
discard traditional policies on job security,
seniority, and compensation
closing factories, moving operations,
selling off less profitable business,
eliminating levels of management,
replacing permanent with temporaries
.
28. Critical issues continue……
Improving ethical behavior
Ethical dilemma: situations where an
individual is required to define right and
wrong conduct
Managers need to create an ethically
healthy climate for his or her employees,
where they can do their work productively
and confront a minimal degree of
ambiguity regarding what constitutes right
and wrong behaviour
29. Productivity, effectiveness, and
efficiency
One of the basic functions of managers is
to create surplus through higher
productivity
Output
Productivity= ___________ (within a time
Input period,quality
considered)
30. Productivity can be improved-
By increasing outputs with the same
inputs,
By decreasing inputs by maintaining the
same outputs, or
By increasing outputs and decreasing
inputs to change the ratio favourably
Inputs are:
Labour
Materials (they work in composite)
Capital
31. PLANNING
Planning is part of life
Where we are to where we want to go
Intellectually demanding process
Selecting missions and objectives and the
action to achieve them
Decision making
32. In earlier times the emphasis was on only
workers but now it has shifted to
managers
Productivity implies effectiveness and
efficiency.
Effectiveness is the achievement of
objectives
Efficiency is the achievement of the ends
with the least amount of resources
Managers cannot know whether they are
productive unless they first know their
goals and those of the organizations
33. Some Definitions
Koontz & O’Donnel: Planning is deciding in advance what
to do, how to do it, when to do it and who is to do it. It
bridges the gap from where we are to where we want to go.
Terry: Planning is the selecting and relating of facts and
the making and using of assumptions regarding the future
in the visualization and formulation of proposed activities
believed necessary to achieve desired results.
Fayol: Planning is deciding the best alternatives among
others to perform different managerial operations in order
to achieve the pre-determined goals.
Urwick: Planning is fundamentally mental pre-disposition
to do things in an orderly way to think before acting and to
get in the light of facts rather than of guesses.
34. Four aspects of planning
The contribution of planning to purpose
and objectives
The primacy of planning
The pervasiveness of planning
The efficiency of plans
35. Types of plans
Failure to recognize the various types of plans may
cause difficulty in effective planning.
Plans are varied and may be classified as:
Purposes or missions (basic function or task)
Business/ hospital/ university etc.
Objective or goals (ends) of organization as well as
of Departments.
Strategies (course of action & allocation of
resources) framework for guiding thinking and
action.
Policies (an area within which a decision is to be
made and ensure that the decision will be consistent
with and contribute to an objective).
36. Types of plans continue…..
Procedures (manner in which activities must be
accomplished)
Rules(specific required action or no-action with
no discretion).
Programmes ( a complex of goals, policies, and
other elements necessary to carry out a given
course of action ordinarily supported by budget).
Budgets (its a statement of expected results
expressed in numerical terms: finance, work
hours, machine hours).
37. Characteristics of planning
Planning is looking into the future.
Planning involves pre-determined line of action.
Planning discovers the best alternative out of
available many alternative out of available many
alternatives.
Planning requires considerable time for
implementation.
Planning is a continuous process.
Planning’s object is to achieve pre-determined
objectives in a better way.
Planning integrates various activities of
organization.
38. Characteristics of planning
continue…….
Planning is done for a specific period.
Planning not only selects the objectives but
also develops policies, programmes and
procedures to achieve the objectives.
Planning is required at all levels of
management.
Planning is an inter-dependent process which
co-ordinates the various business activities.
Planning directs the members of the
organization.
Growth and prosperity of any organization
depends upon planning.
39. Objectives of planning
Reduces uncertainty.
Brings Co-operation and Co-ordination
Economy in operation.
Anticipates unpredictable contingencies.
Achieving the pre-determined goals.
Reduces competition.
40. Nature of planning
Primary of Planning
Planning contributes to objectives
Planning an intellectual activity
Planning results in higher efficiency
Planning is a continuous process
Planning is flexible
Unity and consistency
Planning is common to all
Basis for all managerial functions
Getting co-ordination
Considering limiting factors
41. Importance of planning
Planning should take place before doing
defective and inadequate planning lead to
failure of organization
To manage by objectives
Convert uncertainty in to certainty
Economy in operation
Help in co-ordination
Tackling increasing complexities of business
Effective control
Effective utilization of resources
Avoiding business failures
42. Advantage of planning
Better utilization of resources
Helps in achieving objectives
Economy in operation
Minimises future uncertainties
Improve competitive strength
Effective control
Motivation
Co-operation
43. Advantage of planning continue….
Promote growth and improvement
Develops rationality among management
executives
Prevents hasty judgement
Reduces red-tapism
Encourage innovative thought
Improves ability to cope with change
Creates forward looking attitude in management
Development of efficient methods
Delegation of authority facilitated
Anticipation of crises
44. Steps in planning process
BEING AWARE OF OPPORTUNITY
In light of:
The market
Competition
What customers want
Our strength
Our weaknesses
SETTING OBJECTIVE OR GOALS
Where we want to be and what we want to accomplish and when
CONSIDERING PLANNING PREMISES
In what environment-internal or external-will our plans operate ?
45. Steps in planning process continue…
IDENTIFYING ALTERNATIVES
What are the most promising alternatives to accomplishing our
objectives
COMPARING ALTERNATIVES IN LIGHT OF GOALS SOUGHT
Which alternative will give us the best chance of meeting our
goals at the lowest cost and highest profit
CHOOSING AN ALTERNATIVE
Selecting the course of action we will pursue
FORMULATING SUPPORTING PLANS
Such as plan to:
Buy equipment
Buy materials
Hire and train workers
Develop a new product
46. Steps in planning process continue…
NUMBERING PLANS BY MAKING BUDGETS
Develop such budget as:
Volume & price of sales
Operating expenses necessary for
plans
Expenditure for capital
Equipment
47. Steps in planning
Analysis of external environment
Analysis of internal environment
Determination of objectives
Determining planning premises and
constraints
Examination of alternative course of action
Weighing alternative course of action
48. Steps in planning continue…
Selection of the best alternative course of
action
Establishing the sequence of activities
Formulation of action programme
Determining secondary plans
Securing participation of employees
Follow-up and evaluation
50. Limitation of planning
Inflexibility
Limitation of forecasts
Unsuitability
Time consuming
Costly
Mental ability
False sense of security
Delay during emergency period
Capital investment
Political climate
Trade unions
Technological changes
51. Obstacles in planning
Unreliability
Of forecasts
Recurrence of same type of problems
Expensive
Loss of initiative
52. DECISION-MAKING
One of the functions
Selection of alternatives
Success depends on quality of decisions
No emotionality
53. Characteristics
Decision-making is a selection process
Decision-making is the end process
Decision-making is application of
intellectual process
Decision gives happiness
Decision-making is a dynamic process
Decision-making is situational
Decision-making is to achieve objective
Decision maker has the freedom to decide
Decision-making involves evaluation
Decision may be positive or negative
54. Decision-making process
Identification of a problem
Diagnosing the problem
Collect and analyse the relevant
information
Discovery of alternative course of action
Analysing the alternatives
Screening the alternatives
55. Decision-making process continue…
Selection of best alternatives
A. Experience
B. Experimentation
C. Research & analysis
Conversion of decision into action
Implementation
Verifying the decision
56. The importance & limitations of
rational decision-making
Premising, identifying/evaluating/choosing
alternatives (making a decision)
Rationality in decision making
Limited, or bounded, rationality
The search for alternatives
Evaluation of alternatives
Quantitative and qualitative factors
Marginal analysis
Cost effectiveness analysis
58. Programmed & nonprogrammed
decision
Decision making under creativity,
uncertainty, & risk
Modern approaches to decision making
under uncertainty
Risk analysis
Decision trees
Preference theory-
Attitudes toward risk
Personal risk or preference curves
60. Creativity and innovation
The creative process
Techniques to enhance creativity-
Brainstorming
Synectics
Limitation of traditional group discussion
The creative manager
The systems approach & decision
approach
61. Principles of decision-making
Marginal theory of decision-making
Mathematical theory
Psychological theory
Principle of alternatives
Principle of limiting factors
Principle of participation
63. Administrative problem in decision-making
Accuracy
Environment for decision
Timely decision
Communication of decision
Participative decision-making
Implementation
64. Types of decisions
Programmed decision
Non-programmed decision
Major decision
Minor decision
Operative decision
Organisational decision
Personal decision
Individual decision
Group decision
Departmental decision
65. Types of decisions continue…
Non-economic decision
Crisis decision
Research decision
Problem decision
Opportunity decision
Certainty decision
Uncertainty decision
66. Personal phase of decision-making
Intelligence
Education
Experience
Courage
Motivation
Forecasting ability
Self-confidence
67. ORGANIZING: Designing & maintaining organizational roles
is basically the managerial function of organizing
Organizational role incorporate:
-verifiable objective
-a clear idea of major duties or activities involved
-an understood area of discretion or authority
-provision for supplying needed information & other
necessary tools
Thus organizing means:
-the identification & classification of required activities
-the grouping of activities necessary to attain objectives
-the assignment of each grouping to a manager with the
authority (delegation) necessary to supervise it
-the provision for coordination horizontally & vertically in
the organization structure.
68. Formal Organization:
The intentional structure of roles.
Informal Organization:
A network of personal and social relations
neither established nor required by formal
authority but arising spontaneously.
Organizational Division: The Department
- It is a distinct area, division, or branch
of an organization over which a manager
has authority for the performance of
specified activities.
70. Span of Management refers to
the number of people a manager
can effectively supervise.
71. Organization with Narrow Spans
Advantages:
-Close supervision
-Close control
-Fast communication between subordinates and
superiors
Disadvantages:
-Supervisors tend to get too involved in
subordinates' work
-Many levels of management
-High costs due to many levels
- Excessive distance between lowest level and top
level
72. Organization with Wide Spans
Advantages:
-Superiors are forced to delegate
- Clear policies must be made
- Subordinates must be carefully selected
Disadvantages:
-Tendency of overloaded superiors to
become decision bottlenecks
-Danger of superior's loss of control
-Requires exceptional quality of managers
73. Problems with Organization levels
Expensive
Complicate communication
Complicate planning and control
74. Factors determining an effective span:
Training of subordinates
Clarity of delegation of authority
Clarity of plans
Use of objective standards
Rate of change
Communication Techniques
Amount of Personal Contact Needed
Variation by Organizational level
76. The Logic of Organizing:
Establishing enterprise objectives
Formulating supporting objectives, policies, and plans
Identifying and classifying the activities necessary to
accomplish these
Grouping these activities in light of the human and material
resources available and the best way, under the
circumstances, of using them
Delegating to the head of each group the authority
necessary to perform the activities
Tying the group together horizontally and vertically,
through authority relationships and information flows
77. Departmentation
Departmentation by simple numbers
Departmentation by time
Departmentation by enterprise function
Departmentation by territory or geography
Customer Departmentation
Process or equipment Departmentation
Departmentation by product
78. Matrix Organization
Why Matrix management is used
Variation in practice
Problems with Matrix Management
Guidelines for making Matrix Management
effective
Strategic Business Units (SBUs)
79. Authority & power
Line & staff concepts
Functional Authority
Benefits of Staff
Limitations of Staff
-danger of undermining line authority
-lack of staff responsibility
-thinking in a vacuum
-managerial problems
80. Decentralization of authority
Nature & Kinds
Delegation of authority
How authority is delegated
Splintered authority
Recovery of delegated authority
81. The art of delegation
-personal attitude toward delegation
receptiveness
willingness to let go
willingness to let others make mistakes
willingness to trust subordinates
willingness to establish and use broad
controls
82. Guides for overcoming weak
delegation
define assignments and delegate
authority in light of results expected
Select the person in light of the job to
be done
Maintain open lines of communication
Establish proper controls
reward effective delegation and successful
assumption of authority
83. Factors determining the degree of
decentralization of authority
-Costliness of the decision
-Desire for uniformity of policy
-size and character of the organization
- History and culture of the enterprise
-management philosophy
-desire for independence
-Availability of managers
-Control techniques
-Decentralized performance
-Business dynamics: The pace of change
-Environmental influences
84. Recentralization of authority & balance as
the key to decentralization
SOME MISTAKES IN ORGANIZING
-failure to plan properly
- failure to clarify relationship
- failure to delegate authority
- failure to balance delegation
-confusion of lines of authority with lines
of information
-granting authority without exacting
responsibility
-holding people responsible who do not
have authority
85. SOME MISTAKES IN ORGANIZING continue,…
-careless application of the staff device
-misuse of functional authority
-multiple subordination
-misunderstanding of the function of
service department
-overorganization and underorganization
86. Avoiding mistakes in organizing by
planning
-planning for the ideal
-modification for the human factors
-advantages of organization planning
88. Making staff work effective
-understanding authority relationships
-making line listen to staff
-keeping staff informed
-requiring completed staff work
-making staff work as a way of
organizational life
