2. CONTENT PLAN
1. Management Process
1. Introduction & Functions
2. Evolution of management Theory
1. Taylor
2. Fayol
3. Weber
4. Organizational Theory
3. Concept of Power
2
By Dr Anju Chawla
3. By Dr Anju Chawla
WHY STUDY
MANAGEMENT?
We all have a vested interest in improving the way
organizations are managed.
• Better organizations are, in part, the result of good
management.
You will eventually either manage or be managed.
• Gaining an understanding of the management process
provides the foundation for developing management skills and
insight into the behavior of individuals and the organizations.
3
4. HOW DO WE DEFINE
MANAGEMENT?
Management
• The process of getting things done, effectively and efficiently,
through and with other people
• Efficiency
• Means doing the thing correctly; refers to the relationship
between inputs and outputs; seeks to minimize resource costs
• Effectiveness
• Means doing the right things; goal attainment
By Dr Anju Chawla
4
5. HOW DO WE DEFINE
PROCESS
Sequence of interdependent and linked procedures which,
at every stage, consume one or
more resources (employee time, energy, machines, money)
to convert inputs (data, material, parts, etc.) into outputs.
These outputs then serve as inputs for the next stage until a
known goal or end result is reached.
By Dr Anju Chawla
5
7. MANAGEMENT
PROCESSES
Planning
• Includes defining goals, establishing strategy, and developing
plans to coordinate activities
Organizing
• Includes determining what tasks
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
7
By Dr Anju Chawla
8. 1–8
MANAGEMENT
PROCESSES (CONT’D)
Staffing
• Hiring right skilled people for the right job at the right time.
Leading
• Includes motivating employees, directing the activities of
others, selecting the most effective communication channel,
and resolving conflicts
Controlling
• The process of monitoring performance,
comparing it with goals, and
correcting any significant
deviations
By Dr Anju Chawla
9. THE PROCESS OF MANAGEMENT
Manager Goals
Human
Resources
Financial
Resources
Physical
Resources
Information
Resources
Planning
Organizing
& Staffing
Leading Controlling
Managerial Functions
By Dr Anju Chawla
9
10. MANAGEMENT PROCESS-
IN NUTSHELL
Management process is a process of
setting goals,
planning and/or
controlling
the organizing and leading the execution of any type of activity,
such as: a project (project management process)
10
By Dr Anju Chawla
11. ABC-COACHING
INSTITUTE
Background of task: Recruiting new faculty with cost cutting
Planning(WHAT TO DO)
-Goal- To hire 45 experienced faculty members
-Strategy- Contractual hiring with per hour payment
-Plan- hire interns from various B-schools for hiring
team
Organizing(HOW To DO)
- arranging for phones, database of faculty, computers to write
mails.
- How many teams required to co-ordinate for which zone etc.
By Dr Anju Chawla
11
12. …CONTD EXAMPLE
Staffing (WHO WILL DO IT)
-Where to hire interns
-Who will train them
- Job Analysis
Directing ( Giving directions)
Top to bottom approach.
Controlling ( Fill in the gaps)
It is a continuous process.
By Dr Anju Chawla
12
13. Ekart News to explain functions of management-
Session1.docx
By Dr Anju Chawla
13
14. Top-
Level
Mgrs.
Middle-
Level Mgrs.
First-Level
Mgrs.
Individual Contributors
(Operatives and Specialists)
MANAGERIAL LEVELS
Chairman of the Board,
CEO, president, executive
vice president, vice
president, group team
leader, chancellor
Director, branch manager,
department chairperson,
chief of surgery, team leader
Supervisor, office manager,
crew chief
Tool-and-die maker, cook,
word processing technician,
assembler
By Dr Anju Chawla
14
15. TIME SPENT ON MONITORING
THE BUSINESS ENVIRONMENT *
34
20
13
0
70
Percentage
First-Line
Supervisor
Middle
Manager
Executive
Monitoring the Business
Environment
Source: Allen I. Kraut et al., “The Role of the Manager: What’s Really Important in Different
Management Jobs,” The Academy of Management Executive (November 1989): p. 288.
* Numbers refer to % of managers who said task was of “the utmost” or “considerable” importance.
By Dr Anju Chawla
15
16. FOUR MANAGERIAL FUNCTIONS &
17 MANAGERIAL ROLES
Planning
Strategic Planner
Operational Planner
Organizing & Staffing
Organizer
Liaison
Staffing coordinator
Resource allocator
Task delegator
Leading
Figurehead
Spokesperson
Negotiator
Coach
Team builder & player
Technical problem solver
Entrepreneur
Controlling
Monitor
Disturbance Handler
1.6
By Dr Anju Chawla
16
17. PERIPHERAL
FUNCTIONS
Forecasting- Demand, Supply of Resources
Decision-Making- Choosing the best possible options in time
amongst more than one available.
Communication- What to tell , how much to tell, whom to tell,
when to tell and how to tell.
Co-ordination- Not just giving directions but acting as a
bridge for any thing falling out of alignment
By Dr Anju Chawla
17
18. By Dr Anju Chawla
4–18
DECISION-MAKING
Decision-making process
• A set of eight steps that includes identifying a problem,
selecting a solution, and evaluating the effectiveness of the
solution(much like buying process)
Problem
• A discrepancy between an existing and a desired state of
affairs
Decision criteria
• Factors that are relevant in a decision
19. By Dr Anju Chawla
4–19
DECISION-MAKING
(CONT’D)
Decision implementation
• Putting a decision into action; includes conveying the decision
to the persons who will be affected by it and getting their
commitment to it.
20. SETTING ORGANIZATIONAL GOALS
ESTABLISHING PERFORMANCE CRITERIA
CLASSIFYING AND DEFINING THE PROBLEM
DEVELOPING CRITERIA FOR A SUCCESSFUL SOLUTION
GENERATING ALTERNATIVES
COMPARING ALTERNATIVES TO CRITERIA
CHOOSING AN ALTERNATIVE
IMPLEMENTING THE DECISION
MONITORING THE DECISION AND GETTING FEEDBACK
By Dr Anju Chawla
20
The process of decision making
21. By Dr Anju Chawla
4–21
HOW DO PROBLEMS
DIFFER?
Well-structured problems
• Straightforward, familiar, easily defined problems
Ill-structured problems
• New problems in which information is ambiguous or incomplete
Programmed decision
• A repetitive decision that can be handled by a routine approach
Nonprogrammed decisions
• Decisions that must be custom-made to solve unique and
nonrecurring problems
22. By Dr Anju Chawla
4–22
DECISION MAKING:
STYLES
Directive style
• Characterizes the low tolerance for ambiguity and a rational
way of thinking of individuals who are logical and efficient and
typically make fast decisions that focus on the short term.
Analytic style
• Characterizes the high tolerance for ambiguity combined with
a rational way of thinking of individuals who prefer to have
complete information before making a decision.
23. By Dr Anju Chawla
4–23
GROUP DECISION
MAKING
Advantages
• Make more accurate
decisions
• Provides more complete
information
• Offers a greater diversity
of experiences and
perspectives
• Generates more
alternatives
• Increases acceptance of
a solution
• Increases the legitimacy
of a decision.
Disadvantages
• Is more time-
consuming and less
efficient
• Minority domination
can influence decision
process
• Increased pressures to
conform to the group’s
mindset (groupthink)
• Ambiguous
responsibility for the
outcomes of decisions
24. By Dr Anju Chawla
4–24
WHEN ARE GROUPS
MOST EFFECTIVE?
Creativity
• Groups tend to be more creative than individuals.
Acceptance of the final solution
• Groups help increase the acceptance of decisions.
Effectiveness of group decision making
• Groups of five to seven members are optimal for decision
process speed and quality.
25. 1–25
WHO ARE MANAGERS AND WHERE
DO THEY WORK?
Organization
• A systematic arrangement of people brought together to
accomplish some specific purpose; applies to all organizations—
for-profit as well as not-for-profit organizations.
• Where managers work (manage).
Common characteristics
• Goals
• Structure
• People
By Dr Anju Chawla
26. 1–26
IDENTIFYING
MANAGERS
First-line managers
• Supervisors responsible for directing the day-to-day activities
of operative employees
Middle managers
• Individuals at levels of management between the first-line
manager and top management
Top managers
• Individuals who are responsible for making decisions about
the direction of the organization and establishing policies that
affect all organizational members
By Dr Anju Chawla
27. By Dr Anju Chawla
IS THE MANAGER’S
JOB UNIVERSAL?
Level in the organization
• Do managers manage differently based on where they are in
the organization?
Profit versus not-for-profit
• Is managing in a commercial enterprise different than
managing in a non-commercial organization?
Size of organization
• Does the size of an organization affect how managers
function in the organization?
27
28. By Dr Anju Chawla
1–28
IS THE MANAGER’S JOB
UNIVERSAL? (CONT’D)
Management concepts and national borders
• Is management the same in all economic, cultural, social and
political systems?
Making decisions and dealing with change.
• Do managers all make decisions and deal with change in the
same ways?
29. By Dr Anju Chawla
GENERAL SKILLS FOR
MANAGERS
Conceptual skills
• A manager’s mental ability to coordinate all of the
organization’s interests and activities
Interpersonal skills
• A manager’s ability to work with, understand, mentor, and
motivate others, both individually and in groups
Technical skills
• A manager’s ability to use the tools, procedures, and
techniques of a specialized field
Political skills
• A manager’s ability to build a power base and establish the
right connections
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31. CLASSICAL
CONTRIBUTIONS
Classical approach
• The term used to describe the hypotheses of the scientific
management theorists and the general administrative
theorists.
• Scientific management theorists
• Fredrick W. Taylor, Frank and Lillian Gilbreth, and
Henry Gantt
• General administrative theorists
• Henri Fayol and Max Weber
By Dr Anju Chawla
31
32. SCIENTIFIC
MANAGEMENT
Frederick W. Taylor
• The Principles of Scientific Management (1911)
• Advocated the use of the scientific method to define the
“one best way” for a job to be done
• Believed that increased efficiency could be
achieved by selecting the right people for the job
and training them to do it precisely in the one best
way.
• To motivate workers, he favored incentive wage
plans.
• Separated managerial work from operative work.
By Dr Anju Chawla
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34. GENERAL ADMINISTRATIVE
THEORY
General administrative theorists
• Writers who developed general theories of what
managers do and what constitutes good management
practice
• Henri Fayol (France)
• Fourteen Principles of Management: Fundamental or
universal principles of management practice
• Max Weber (Germany)
• Bureaucracy: Ideal type of organization characterized by
division of labor, a clearly defined hierarchy, detailed rules
and regulations, and impersonal relationships
By Dr Anju Chawla
34
36. …CONTD
Esprit de corps contributes to the development of the culture and
creates an atmosphere of mutual trust and understanding.
In conclusion on the 14 Principles of management:
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.
Although they are obvious, many of these matters are still used
based on common sense in current management practices in
organizations. It remains a practical list with focus areas that are
based on Henri Fayol ’s research which still applies today due to a
number of logical principles.
By Dr Anju Chawla
36
40. HAWTHORNE
STUDIES
A series of studies done during the 1920s and 1930s that
provided new insights into group norms and behaviors
• Hawthorne effect
• Social norms or standards of the group are the key
determinants of individual work behavior.
Changed the prevalent view of the time that people were no
different than machines.
By Dr Anju Chawla
40
41. WHAT IS THE
PROCESS APPROACH?
Management theory jungle (Harold Koontz)
• The diversity of approaches to the study of
management—functions, quantitative emphasis,
human relations approaches—each offer
something to management theory, but many are
only managerial tools.
Process approach(The one explained)
• Planning, leading, and controlling activities are
circular and continuous functions of management.
By Dr Anju Chawla
41
42. THE SYSTEMS
APPROACH
Defines a system as a set of interrelated and interdependent
parts arranged in a manner that produces a unified whole
• Closed system : a system that is not influenced by and does
not interact with its environment
• Open system: a system that dynamically interacts with its
environment
• Stakeholders: any group that is affected by organizational
decisions and policies
By Dr Anju Chawla
42
44. By Dr Anju Chawla
44
Spark Time:
• What is power?
• How do managers acquire the power needed for leadership?
• What is empowerment, and how can managers empower
others?
• What is organizational politics?
45. On many levels, power is extremely important in terms of providing
direction and assisting in the management process. When
examining it from the top down elements, power and authority can
help to give structure to an organization, assist employees in
performing better, and allow short and long term goals to be
articulated and reached. The charting of an organization's success
can be largely dependent on top down directives. On another level,
power coming from the bottom up can also be important. Such a
conception of power can help to give voice to workers and those
whose voice might be marginalized. Individuals who can collectivize
from the bottom up can advocate for rights and articulate a
responsive vision that organizations must appropriate in the process
of striving for success and sustainability.
By Dr Anju Chawla
45
46. By Dr Anju Chawla
46
WHAT IS POWER?
Power is the ability to …
• Get someone to do something you want done.
• Make things happen in the way you want.
Influence is …
• What you have when you exercise power.
• Expressed by others’ behavioral response to your exercise of
power.
47. By Dr Anju Chawla
47
WHAT IS POWER?
Position power.
• Derives from organizational sources.
• Types of position power.
• Reward power.
• Coercive power.
• Legitimate power.
• Process power.
• Information power.
• Representative power.
48. By Dr Anju Chawla
48
WHAT IS POWER?
Reward power.
• The extent to which a manager can use extrinsic and intrinsic
rewards to control other people.
• Success in accessing and utilizing rewards depends on
manager’s skills.
49. By Dr Anju Chawla
49
WHAT IS POWER?
Coercive power.
• The extent to which a manager can deny desired rewards or
administer punishments to control other people.
• Availability varies from one organization and manager to
another.
50. By Dr Anju Chawla
50
WHAT IS POWER?
Legitimate power.
• Also known as formal hierarchical authority.
• The extent to which a manager can use subordinates’
internalized values or beliefs that the “boss” has a “right of
command” to control their behavior.
• If legitimacy is lost, authority will not be accepted by
subordinates.
51. REWARD POWER
COERCIVE POWER
EXPERT POWER
CHARISMATIC POWER
By Dr Anju Chawla
51
UPWARD
HORIZONTAL
DOWNWARD
Organization-based power
Communication in the organization
52. By Dr Anju Chawla
52
WHAT IS POWER?
Process power.
• The control over methods of production and analysis.
• Places an individual in the position of:
• Influencing how inputs are transformed into outputs.
• Controlling the analytical process used to make choices.
53. By Dr Anju Chawla
53
WHAT IS POWER?
Information power.
• The access to and/or control of information.
• May complement legitimate hierarchical power.
• May be granted to specialists and managers in the middle of
the information system.
• People may “protect” information in order to increase their
power.
54. By Dr Anju Chawla
54
WHAT IS POWER?
Representative power.
• The formal right conferred by the firm to speak as a
representative for a potentially important group composed of
individuals across departments or outside the firm.
• Helps complex organizations deal with a variety of
constituencies.
55. By Dr Anju Chawla
55
WHAT IS POWER?
Personal power.
• Derives from individual sources.
• Types of personal power.
• Expert power.
• Rational persuasion.
• Referent power.
56. By Dr Anju Chawla
56
WHAT IS POWER?
Expert power.
• The ability to control another person’s behavior through the
possession of knowledge, experience, or judgment that the
other person needs but does not have.
• Is relative, not absolute.
57. By Dr Anju Chawla
57
WHAT IS POWER?
Rational persuasion.
• The ability to control another person’s behavior by convincing
the other person of the desirability of a goal and a reasonable
way of achieving it.
• Much of a supervisor’s daily activity involves rational
persuasion.
58. By Dr Anju Chawla
58
WHAT IS POWER?
Referent power.
• The ability to control another’s behavior because the person
wants to identify with the power source.
• Can be enhanced by linking to morality and ethics and long-
term vision.
59. By Dr Anju Chawla
59
HOW DO MANAGERS ACQUIRE THE
POWER NEEDED FOR LEADERSHIP?
Acquiring and using power and influence.
• A considerable portion of any manager’s time is directed
toward power-oriented behavior.
• Power-oriented behavior is action directed at developing or
using relationships in which other people are willing to defer
wholly or partially to one’s wishes.
60. By Dr Anju Chawla
60
HOW DO MANAGERS ACQUIRE THE
POWER NEEDED FOR LEADERSHIP?
Acquiring and using power and influence.
• Three dimensions of managerial power and influence.
• Downward.
• Upward.
• Lateral.
• Effective managers build and maintain position power and
personal power to exercise downward, upward, and lateral
influence.
61. By Dr Anju Chawla
61
HOW DO MANAGERS ACQUIRE THE
POWER NEEDED FOR LEADERSHIP?
Building position power by:
• Increasing centrality and criticality in the organization.
• Increasing task relevance of own activities and work unit’s
activities.
• Attempting to define tasks so they are difficult to evaluate.
62. By Dr Anju Chawla
62
HOW DO MANAGERS ACQUIRE THE
POWER NEEDED FOR LEADERSHIP?
Building personal power by:
• Building expertise.
• Advanced training and education, participation in
professional associations, and project involvement.
• Learning political savvy.
• Learning ways to negotiate, persuade, and understand
goals and means that others accept.
• Enhancing likeability.
• Pleasant personality characteristics, agreeable
behavior patterns, and attractive personal appearance.
63. By Dr Anju Chawla
63
HOW DO MANAGERS ACQUIRE THE
POWER NEEDED FOR LEADERSHIP?
Managers increase the visibility of their job performance
by:
• Expanding contacts with senior people.
• Making oral presentations of written work.
• Participating in problem-solving task forces.
• Sending out notices of accomplishment.
• Seeking opportunities to increase name recognition.
64. By Dr Anju Chawla
64
HOW DO MANAGERS ACQUIRE THE
POWER NEEDED FOR LEADERSHIP?
Additional tactics for acquiring and using power and
influence.
• Using coalitions and networks to alter the flow of information
and the analytical context.
• Controlling, or at least influencing, decision premises.
• Making one’s own goals and needs clear.
• Bargaining effectively regarding one’s preferred goals and
needs.
65. By Dr Anju Chawla
65
HOW DO MANAGERS ACQUIRE THE
POWER NEEDED FOR LEADERSHIP?
Common strategies for turning power into
relational influence.
• Reason.
• Friendliness.
• Coalition.
• Bargaining.
• Assertiveness.
• Higher authority.
• Sanctions.
66. By Dr Anju Chawla
66
HOW DO MANAGERS ACQUIRE THE
POWER NEEDED FOR LEADERSHIP?
Power, formal authority, and obedience.
• The Milgram experiments.
• Designed to determine the extent to which people obey the
commands of an authority figure, even under the belief of life-
threatening conditions.
• The results indicated that the majority of the experimental
subjects would obey the commands of the authority figure.
• Raised concerns about compliance and obedience.
67. By Dr Anju Chawla
67
HOW DO MANAGERS ACQUIRE THE
POWER NEEDED FOR LEADERSHIP?
Obedience and the acceptance of authority.
• Chester Barnard argued that:
• Authority derives from the “consent of the governed.”
• Subordinates accept or follow a directive only under special
circumstances.
68. By Dr Anju Chawla
68
HOW DO MANAGERS ACQUIRE THE
POWER NEEDED FOR LEADERSHIP?
Obedience and the acceptance of authority — cont.
• For a directive to be accepted as authoritative, the
subordinate:
• Can and must understand it.
• Must feel mentally and physically capable of carrying it out.
• Must believe that it is consistent with the organization’s
purpose.
• Must believe that it is consistent with his or her personal
interests.
69. By Dr Anju Chawla
69
HOW DO MANAGERS ACQUIRE THE
POWER NEEDED FOR LEADERSHIP?
Obedience and the acceptance of authority — cont.
• Directives that meet the four criteria will be accepted as
authoritative since they fall within the “zone of indifference.”
• Directives falling within the zone are obeyed.
• Directives falling outside the zone are not obeyed.
• The zone is not fixed over time.
70. By Dr Anju Chawla
70
WHAT IS EMPOWERMENT, AND
HOW CAN MANAGERS EMPOWER
OTHERS?
Empowerment.
• The process by which managers help others to
acquire and use the power needed to make
decisions affecting themselves and their work.
• Considers power to be something that can be
shared by everyone working in flatter and more
collegial organizations.
• Provides the foundation for self-managing work
teams and other employee involvement groups.
71. By Dr Anju Chawla
71
WHAT IS EMPOWERMENT, AND
HOW CAN MANAGERS EMPOWER
OTHERS?
The power keys to empowerment.
• Traditional view.
• Power is relational in terms of individuals.
• Empowerment view.
• Emphasis is on the ability to make things happen.
• Power is relational in terms of problems and opportunities, not
individuals.
72. By Dr Anju Chawla
72
WHAT IS EMPOWERMENT, AND
HOW CAN MANAGERS EMPOWER
OTHERS?
The power keys to empowerment.
• Ways to empower others.
• Changing position power.
• Expanding the zone of indifference.
73. By Dr Anju Chawla
73
WHAT IS EMPOWERMENT, AND
HOW CAN MANAGERS EMPOWER
OTHERS?
Power as an expanding pie.
• With empowerment, employees must be trained to expand
their power and their new influence potential.
• Empowerment changes the dynamics between supervisors
and subordinates.
74. By Dr Anju Chawla
74
WHAT IS EMPOWERMENT, AND
HOW CAN MANAGERS EMPOWER
OTHERS?
Ways to expand power.
• Clearly define roles and responsibilities.
• Provide opportunities for creative problem solving
coupled with the discretion to act.
• Emphasize different ways of exercising influence.
• Provide support to individuals so they become
comfortable with developing their power.
• Expand inducements for thinking and acting, not
just obeying.
75. WHAT ROLE DOES POWER PLAY
IN LEADERSHIP? FURTHERMORE WHAT
ROLE DOES POWER PLAY
IN ENTREPRENEURSHIP?
And how can people use power while in a leadership position or in
entrepreneurial state of mind? In 1959 two sociologists named
John French and Bertram Raven defined the bases of power in a
study which divided power into conceptual forms which can be
applied in practice. Observation of any leader for a period of time
will result in observer coming to an understanding that leadership
and power are often closely related, intertwined, and influenced
by each other as people tend to follow leaders with power.
By Dr Anju Chawla
75
