1. The document discusses various management theories and concepts including classical, modern, and Japanese management techniques. 2. Key classical theories covered include scientific management, human relations school, and administrative management. Modern theories discussed include systems theory, contingency approach, and total quality management. 3. The document also provides an overview of characteristics of Japanese management techniques such as lifetime employment, seniority-based compensation, consensus decision-making, and quality circles.

1. Management
Asst. Prof. Parasmani Jangid
SDJ International College

2. Meaning
Meaning
Management as a Noun- group of managers
Management as a Process- functions of management
Management as a Discipline- subject of management

3. Definition
Definition
Mary Parker Follet- “Management is the art of getting things done
through people.”
Harold Koontz- “ Management is the art of getting things done through
and with people in formally organised groups.”
Henri Fayol- “To manage is to forecast and to plans, to organise, to
command, to co-ordinate and to control.”

4. Nature of Management
1. Continuous and never ending process
2. Getting things done through people
3. Result oriented
4. Multidisciplinary in nature
5. A group and not an individual activity
6. Follows established principles or Rules
7. Aided but not replaced by computers
8. Situational in nature
9. Need not be an ownership
10. Both science & art

5. Principles of Management
1. Division of Work- specialisation
2. Authority and Responsibility- Balance, Power> Duties=misuse of
power, Power<Duties =Underperformance
3. Discipline-invite your subordinate while framing disciplines.
4. Unity of Command-order from one boss
5. Unity of Direction-one objective( all the activities) should go in one
direction
6. Subordination of Individual Interest to Organisational Interest
7. Remuneration-fair, adequate, it will give satisfaction to employees

6. Principles of Management
8. Degree of Centralization-depends on size of organisation(work)
9. Scalar Chain- clear line of authority
10. Order-manner, chronological order 1. material order 2. labour order
11. Equity-equality-no partiality- create loyalty
12. Stability of Tenure of Personnel-try to reduce your labour –
turnover rate
13. Initiative-to encourage them to think new , bring idea.
14. Esprit de Corps/Team Spirit-union is strength

7. What is Management Theories?
A set of common guidelines that direct the managers to manage an
organization.
How to put the goals into practice and get them consummate, these
theories also help by giving guidelines to the managers, in what
manner employees could be motivated so that they perform to the
uppermost standard.

8. What are the needs of Management
Theories?
• Theories make available an established concentration for
understanding what have already been experienced.
• Theories provide the base to communicate efficiently thus move into
more & more complex relationships with other people.
• Theories make it believable or conceivable indeed and challenge to
keep learning about the world.

9. Management Theories
Human Relation School
Elton Mayo believed that workers are not just concerned with money but could be
better motivated by having their social needs met while at work (something that
Taylor ignored).
Mayo introduced the Human Relations School of thought, which focused on
managers taking more of an interest in the workers, treating them as people who
have worthwhile opinions and realizing that workers enjoy interacting together.
• Mayo concluded that workers are best motivated by: (Key summary from Mayo)
• Better communication between managers and workers
• Greater manager involvement in employees working lives
• Working in groups or teams
• His theory most closely fits in with a paternalistic style of management.

10. Social System School
Chester Barnard divided the organisation into formal and Informal and also developed a set of
working principles by which organisational communication systems can maintain final authority for
the management team.
It considers management as a social system, which refers to a system of cultural inter
relationships. It can also be described as the complex whole of collective human beliefs with a
structured stage of civilization that can be specific to a nation or time period.
It point outs the nature of the cultural relationships of various social groups and attempts to show
them as an integrated system. The spiritual father of this school was the late Chester Barnard who
developed the theory of co-operation. The focus of this school of thought is on the study of the
organization as a co-operative or collaborative system. A social system is a unit or entity consisting
of various social subsystems called groups.
He firmly believed that neither individual nor assemblage can function in isolation. They are bound
in togetherness, by norms and values, culture and shared behavior.

11. System Management School
The major contributors to this school are Kenneth, Boulding, Johnson, F. E. Kast, J. E. Rosenzwig, Katz and
Kahn, Forester and C. W. Churchman.
Systems management speaks of enterprise wide management of distributed systems including computer
systems.
According to this school, management is a ‘system’ of co-ordination of some different factors forming the parts
of an overall management process, which are inter-related or inter-dependent. If the activities related to
production of an enterprise are performed, giving much importance to one of its factors or parts, without
considering its relationship and dependence on other factors, the desired result cannot be obtained.
• For example, men, machine, money and raw materials are the factors of production in management. These
elements are not isolated rather they are correlated and interdependent on one another. A perfect
assemblage of these factors results in production. Efficient workers cannot perform their activities well
with bad machines.
• Good work cannot be expected of inefficient workers working with good machines. So, management is a
system to assemble the different correlated and inter-dependent factors that are parts of the overall system.
It must be viewed in the context of total environment, and the managers should take into account the
various characteristics and changes therein in managing the organisation.

12. INPUT OUTPUT
PROCESS

13. Decision Management School
Each decision made involves a series of actions.
The essence of management lies in decision-making. Whatever a manager does is the outcome of a decision made by
him from several alternatives available to him. The ‘Decision Theory School’ of management thought concentrates
its attention on decision-making and treats the various aspects of decision-making as constituting the scope of
the study of management.
Advocates of this school opine that decision-making is the most critical function of management and any study of
management should focus directly on the decision-making process. Rational approach to decision-making is the
basis of this school.
To perform the managerial functions properly and effectively, one has to learn the procedures, techniques, causes
and effects of taking decisions. Top level management authority has to take decisions at the stage of planning and
the managers in charge of execution of plans have to take decisions at the stage of its implementation.
It becomes proper, meaningful and effective only if decisions are taken through a reasonable procedure. Among the
proponents of this theory, the names of Herbert Simon, Stephen Robins and Chester Barnard are especially
mentionable.

14. Quantitative Measurement School
The quantitative management approach is given by the mathematical school that recommends the use of
computers and mathematical techniques to solve complex management issues and assist in the managerial
decision-making process.
This theory is also know as Operations Research Theory, Decision Theory or Management Science Theory.
It became an acceptable theory during World War-II. When Britain wanted to solve the problems of war. The problem
was that the radar system did not performs of war. The problem was that the radar system did not perform well at
field sites as it performed at the testing station. On site scientific observation was thus called during actual
operations.
• This school views Management as a system of mathematical models and process. The exponents of this school of
thought believe that effective solution of the intricate problems of management of an enterprise can be achieved
through organising mathematical or quantitative model. Management or organisation, planning or decision-
making, as a logical process, can be expressed in terms of mathematical symbols and relationships.
• The contributors to this school of thought have been using mathematical and quantitative techniques in
developing the models of various kinds of decision and problems involved in managing the organisations with a
view to understanding them and also for finding out solutions to them.
• This theory uses the techniques of Operation Research, Games Theory, Linear Programming, PERT, CPM, Games
theory and Model Building. As proponents of this theory the names of L. Ackoff, C. W Churchman, Newman, Hicks
and Joel Dean may be mentioned.

15. Contingency Management School
• According to this approach, management is a subject that is situational by nature. It has no hard
and fast principle and theory. In one way, this is an extension of the system approach. The basic
idea of the contingency approach is that there cannot be a particular management action which
will be suitable for all situations.
• Study of management, according to this approach, lies in identifying the important variables in
the situation. An appropriate management action is one that is designed on the basis of
external environment and internal states and needs. Management may be effective and fruitful,
if its principles and procedures are appropriately followed and its techniques are intelligently
applied according to the circumstances.
• Contingency theorists suggest that the systems approach does not adequately spell out the
precise relationship between the organisation and its environment. Contingency approach tries
to fill this gap by suggesting what should be done in response to an event in the environment.
• The supporters of this theory are mainly, Lorsch and Lawrence, John Woodward, Fiedler and H.
M. Carlisle.

16. Comparative Management School
Comparative management is defined as the study and analysis of management in different environments and the
reasons that enterprises show different results in various countries. Management is an important element in
economic growth and in the improvement of productivity. The art and the skill of comparative management require
manager understanding of the Political, Economic, Social, Technological and Ecological context in which enterprises
operate. Managers must make a judgment call about what works where and why.
The increase in the number of multinational companies that invest directly in foreign countries has given rise to a
relatively new management field known as comparative management. Comparative management is identifying,
measuring, and interpreting similarities and differences among managers‘ behavior, techniques, and practices in
various countries. Multinational companies have opened plants in foreign countries for several reasons: to gain a
share in a foreign market to take advantage of economies of scale, to capitalize on savings gained through
fluctuations in the foreign exchange market, to avoid trade restrictions, and to take advantages of low-cost
government loans that encourage foreign investment. Difficulties arise from the different environments, beliefs,
government influences, social customs, and forces in the foreign country.
Comparative management approach has become essential to solve the problems faced by a company operating in a
foreign environment.

17. Scope of comparative management school
• Centralization of authority
• Risk tolerance
• Reward systems
• Level of formality
• Organizational loyalty
• Level of co-operation

18. Learning Organisation
• A learning organization is a company that facilitates the learning of
its members and continuously transforms itself. The concept was
coined through the work and research of Dr. Peter Senge and his
colleagues.
• Learning organisation…….
1) Build the continuous learning culture
2) Sanction mistakes and values employees contribution
3) Learn from experience
4) Propagate new knowledge

19. • Organization encourages their employees learning continuously from
failure and success of past products. ... Apple Inc is one of the
business which is a giant It corporation over the world used two
methods of “learning organization” and “best practices” to be able to
overcome difficulties in the market today.

20. Characteristics of
Learning Organization
1. Systems thinking (systematically in a pattern with establishing
interrelationships & view a big picture while thinking)
2. Personal mastery (personal vision, creative tension, commitment)
3. Mental models (to simplify the work)
4. Shared vision (organizational as well as individuals’ point of view. It
accelerates learning)
5. Team learning (collective learning)

21. Japanese Management
Techniques
• Common practices associated with Japanese management
techniques:
• in-house training of managers.
• consensual and decentralized decision-making.
• extensive use of quality control methods.
• carefully codified work standards.
• emphasis on creating harmonious relations among workers.
• lifetime employment and seniority-based compensation.

22. Management Education
• Their hiring decisions are less depended on a recruit’s knowledge than on general
attributes (character and ambition).
• Do not fill particular post or occupation, expected to be flexible, identify general
interest.
• Counselor system to train the recruits and involves middle –level & senior
managers as teacher and role model.
• Management training is based on regular rotation through a broad range of a
firm’s operation.
• Interconnected with the lifetime employment system is the prominence on
seniority in compensation and promotion.
• Additional benefit system is not used here, as it is considered to a long-term
perspective.

23. Capital and Priorities
• Japanese firms rely more on borrowing from banks and generally have much
higher debt to equity ratios.
• No pressure to maximize short-term earnings to satisfy shareholders.
• Prioritise productivity, growth and market share rather than profitability

24. Corporate Governance
• Directors from outside the company is very rare in Japan.
• Decision-making process in Japanese firm is decentralized.
• here both, middle & senior management function as director.
• Japanese directors retain production-line responsibilities.
• planning and organising production schedules.
• assessing project and resource requirements.
• estimating, negotiating and agreeing budgets and timescales with
clients and managers.
• ensuring that health and safety regulations are met.
• determining quality control standards.
• overseeing production processes.

25. The Ringi System
• One of the oldest decision making process in japan is Ringi System.
• A management technique in Japanese companies in which low-level
managers discuss a new idea among themselves and come to a
consensus before presenting it to higher managers. The higher
ranking managers then discuss the new idea themselves and arrive
at their own consensus.
• Need long lead times and thus not useful in crisis, in modern years
the focus is more on speeding up decision making, it makes this
approach unpopular.
• Success credit to middle level managers, while failure’s responsibility
is taken by top level managers.

26. Enterprise Unions
• Enterprise unionism, the organization of a single trade union within one
plant or multi-plant enterprise rather than within an industry. Nearly all
Japanese unions are of the enterprise type and representing the majority
of union membership.
• Japanese enterprise unionism reflects Japan’s traditional low turnover of
labor.
• The credit for Alliance between labor and management goes to narrow
income gap between two. Upper-level managers have moved up through
union ranks and may have even served as union officials.
• This also associated with lifetime employment, resultantly workers are free
from the botheration of changes in production process, even they will be
co-operative.

27. Quality Circles
• A quality circle or quality control circle is a group of workers who do the
same or similar work, who meet regularly to identify, analyse and solve
work-related problems, apart from the work time. It consists of minimum
three and maximum twelve members in number. In Japan circle comprises
about 10 workers
• Quality control (QC) are test procedures used to verify that a product is
safe and effective after manufacturing is done. Quality control is
essential to building a successful business that delivers products that meet
or exceed customers' expectations. It also forms the basis of an efficient
business that minimizes waste and operates at high levels of productivity
• In Japan, employees’ suggestions play an important role, management get
benefits from workers ideas & suggestion.

28. Scientific Management
• Scientific management is a theory of management that analyses and
synthesizes workflows. Its main objective is improving economic
efficiency, especially labour productivity. It was one of the earliest
attempts to apply science to the engineering of processes to
management.
• F.W. Taylor has given the 3 study
• Motion study
• Time study
• Fatigue study

29. Pervasiveness of Engineers
• Japanese engineers are very focused in production process with
workers. Only few distinction are made between engineers and blue-
collar workers, although engineers do tend to earn more.
• Japan’s highlighting on production oriented engineering is consistent
with its dominant competitive strategy in post war years. They
focused more on improving existing products rather than developing
completely new ones.

30. New Directions
• Despite unabated patterns of management at some Japanese
companies, still many forces affected them to move towards western
style of management.
• From seniority to merit based pay
• This shows a cultural shift from valuing length of services to valuing
quality of service.
• Freshers are undeniably less loyal e.g. rise in professional
identification over corporate identification.

31. Characteristics of Japanese Management
Techniques
1. Life time employment (no worries for job insecurity, increase the efficiency)
2. Discrimination (no partiality between male-female or blue-white collar workers)
3. Recruitment (Scientifically in right time, at right place, with right qualification, degree
doesn’t matter)
4. Seniority Wage Principle (to earn faith of employees on company)
5. Training (counselor system and senior as teacher or role model or trainer)
6. Enterprise Unionism (one union one company)
7. Single Status (work with co-operation in team-spirit)
8. Employee Involvement (ringi system and quality circles)
9. Core & Peripheral Workers (importance to permanent staff)
10. Employee Welfare (other facilities to employees)
11. Internal Labour Market (internal among workers -discussion about performance-
quality, etc.)

32. Modern Management School
1. Quantitative or Mathematical Approach
2. Systems Approach
3. Contingency Approach
4. TQM (Total Quality Management)- continuous improvement
5. Kaizen- Japan- small, positive, continuous change, significant result
6. BPR (Business process Reengineering)-radical change, completely
new action

33. Characteristics of Modern Management
School
1. The systems Approach (interconnection & interrelation)
2. Dynamic (manage on the basis of changing situation)
3. Multilevel and multidimensional (micro & macro)
4. Multidisciplinary (all streams/subjects)
5. Multivariate (many factors responsible for results/outcomes)
6. Adaptive (adjust, accept the external environment changes)
7. Probabilistic (no certainty for the result)

34. Thank You