MANAGEMENT
Definition of Management
• F.W. Taylor,
• ‘Management is an art of knowing what to do, when to
do and see that it is done in the best and cheapest
way‘.
• According to Harold Koontz,
• ‘Management is an art of getting things done through
and with the people in formally organized groups. It is
an art of creating an environment in which people can
perform and individuals and can co-operate towards
attainment of group goals.‘
Characteristics of Management
• An Activity
• Group Activity
• Organized and purposeful activity
• Goal oriented Process
• All Pervasive
• Problem Solving process
• Multidimensional
• Continuous Process
• Intangible Force
• Integrating process
• Management Principles are universal in nature
Levels of management
Functions of Management
Managerial
Functions
Planning
Organising
Staffing
Directing
Controlling
Operational
Functions
Purchasing
Production
Marketing
Finance
Personal/HR
Managerial Skills
1. Technical Skills
2. Human Skills
3. Conceptual Skills
4. Diagnostic Skills
5. Analytical Skills
6. Communicational Skills
7. Political Skills
Managerial Roles
HENRY MINTZBERG
Qualities of a Good Manager
• 1. Transparency
• 2. Good Communication
• 3. Trust
• 4. Empathy
• 5. Decisiveness
• 6. Vision
• 7. Accountability
• 8. Employee development
• 9. Delegation
EVOLUTION OF
MANAGEMENT
Evolution of Management
Pre scientific management period
Classical approaches to Management
Behavioural approaches to
Management
Quantitative approaches to
Management
Contemporary Management
Perspectives
The future trends
Pre scientific management period
• The notable contributors of this period are:
Professor Charles Babbage (UK 1729 -1871):
He was a Professor of Mathematics at
Cambridge University
“Father of modern computing”
He give emphasis on specialisation , work
measurement, optimum utilization of
machines and tools
• Henry Robinson Towne (USA 1844 -
1924)
• H.R Towne was the president of the
famous lock manufacturing company
"Yale and Town".
• He outlined the importance of
management as a science
• Robert Owens (UK 1771 - 1858)
• He was the promoter of co-operative and
trade union movement in England
• He emphasized the recognition of human
element in industry
1. The Classical Approach:
The classical school represented the
first major systematic approach to
management thought.
 It was distinguished by its emphasis
on finding way to get the work of each
employee done faster.
The classical school can be broken down
into three historical philosophies of
management.
Scientific Management:
Frederick Winslow Taylor - Father of
scientific management
Started as an apprentice machinist in
Philadelphia, USA. He rose to be the
chief engineer at the Midvale
Engineering Works and later on served
with the Bethlehem Works
His famous work is “The principles of
Scientific Management” Published in
1911
•The scientific method consists
essentially of
• Observation
• Measurement
• Experimentation and
• Inference.
He summed up his approach in these
words:
• Science, not rule of thumb
• Harmony, not discord
• Co-operation, not individualism
• Maximum output, in place of
restricted output
• The development of each man to
his greatest efficiency and
prosperity.
Elements of Scientific Management:
1. Scientific Task and Rate-setting, work
improvement, etc.
2. Planning the Task.
3. Vocational Selection and Training
4. Standardization (of working conditions, material
equipment etc.)
5. Specialization
6. Mental Revolution
1. Scientific Task and Rate-Setting
(work study)
•Methods Study
•Motion Study
•Time Study (work
measurement)
•Fatigue Study
•Rate-setting
2. Planning the Task.
Necessary steps have to be taken to
plan the production thoroughly so that
there is no bottlenecks and the work
goes on systematically.
3. Selection and Training
•Scientific Management requires a
radical change in the methods and
procedures of selecting workers. It is
therefore necessary to entrust the task
of selection to a central personnel
department.
4. Standardization:
•Tools and equipment
•Speed
•Conditions of Work
•Materials
5. Specialization:
The Route Clerk:
The Instruction Card Clerk:
The Time and Cost Clerk:
The Shop Disciplinarian
The Gang Boss:
The Speed Boss:
The Repair Boss:
6.Mental Revolution:
• At present, industry is divided into two groups –
Management
 Labour.
The major problem between these two groups is the
division of surplus
Criticism
Worker's Criticism:
Speeding up of workers
Loss of individual
worker's initiative:
Problem of monotony:
Reduction of
Employment:
Weakening of Trade
Unions:
Exploitation of
workers:
Employer's Criticism:
Heavy Investment:
Loss due to re-
organization:
Unsuitable for small
scale firms:
Frank and Lillian Gilbreth
• The couple placed high value on efficiency
when managing an organization. Their
management theory outlined three main
points:
• 1. Reduce the number of motions in a
task.
• 2. Focus on the incremental study of
motions and time.
• 3. Increase efficiency to increase profit
and worker satisfaction.
Administrative Management Theory:
Henry Fayol is considered the father of modern theory
of general and industrial management.
He graduated as a mining engineer in 1860 from the
National School of Mining. After his graduation, he joined
a French Coal Mining Company as an Engineer. After a
couple of years, he was promoted as manager. He was
appointed as General Manager of his company in 1888.
Concept of Management:
• He divided general and industrial management
into six groups:
• Technical activities - Production, manufacture,
adaptation.
• Commercial activities - buying, selling and
exchange.
• Financial activities - search for and optimum use of
capital.
• Security activities - protection of property and
persons.
• Accounting activities - stock-taking, balance sheet,
cost, and statistics.
Fayol's Principles of Management:
1. Division of
work:
2. Authority and
Responsibility:
3. Discipline
4. Unity of
Command:
5. Unity of
Direction:
7. Remuneration:
8. Centralization:
9. Scalar Chain:
10. Order:.
11. Equity:
12. Stability of
Tenure:
13. Initiative:
14. Esprit of Co-
operation:
Bureaucratic Management
• Max Weber, a German Sociologist developed the
bureaucratic model.
• Bureaucracy provides a rigid model of an organization. It
does not account for important human elements. The
features of Bureaucracy are:-
Rigidity, impersonality and higher cost of controls.
Anxiety due to pressure of conformity to rules and
procedure.
Dependence on superior.
Tendency to forget ultimate goals of the organization.
Behavioural approach to Management
1. Elton Mayo (Australia, 1880 - 1949)
Elton Mayo is generally recognized as the father of Human
Relations School.
He led a team of researchers from Harvard University,
which carried out investigation in human problems at
the Hawthorne Plant of Western Electrical Company at
Chicago.
Hawthorne Experiment:
• The Hawthorne experiment consists of four parts.
These parts are briefly described below:-
Illumination Experiment.
Relay Assembly Test Room Experiment.
Interviewing Programme.
Bank Wiring Test Room Experiment.
Maslow's Needs Hierarchy Theory
Douglas McGregor
• In the 1960s, social psychologist Douglas McGregor
developed two contrasting theories that explained how
managers' beliefs about what motivates their people can
affect their management style. He labelled these Theory X
and Theory Y
• Theory X and Theory Y were first explained by McGregor
in his book, 'The Human Side of Enterprise,' and they
refer to two styles of management
• authoritarian (Theory X) and
• participative (Theory Y).
• Theory X
 Dislike their work.
Avoid responsibility and
need constant direction.
Have to be controlled,
forced and threatened to
deliver work.
Need to be supervised at
every step.
Have no incentive to work
or ambition, and therefore
need to be enticed by
rewards to achieve goals.
• Theory Y
Happy to work on their
own initiative.
More involved in decision
making.
Self-motivated to
complete their tasks.
Enjoy taking
ownership of their work.
Seek and accept
responsibility, and need
little direction.
View work as fulfilling
and challenging.
Solve problems
creatively and
imaginatively.
Quantitative approaches to
Management
• Assumptions of Quantitative Theory:
• 1. Organisations are decision-making units which
make efficient decisions through mathematical
models.
• 2. Business problems can be solved through joint
efforts of a team that consists of experts from the
fields of mathematics, statistics, accountancy,
engineering etc.
• 3. Business problems can be expressed in
mathematical models where relevant factors can
be quantified in numerical terms. Management is
Contemporary Management
Perspectives
•System Approach
•Contingency Approach
System Approach
• The word system is derived from the Greek word
meaning to bring together or to combine. A system is a set
of interconnected and inter-related elements or
component parts to achieve certain goals.
Contingency Approach
• Contingency approach analysis and understands these
inter relationship sothat managerial actions can be
adjusted to demands of specific situations or
circumstances.

UNIT 1 PPt.pptx

  • 1.
  • 3.
    Definition of Management •F.W. Taylor, • ‘Management is an art of knowing what to do, when to do and see that it is done in the best and cheapest way‘. • According to Harold Koontz, • ‘Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals and can co-operate towards attainment of group goals.‘
  • 4.
    Characteristics of Management •An Activity • Group Activity • Organized and purposeful activity • Goal oriented Process • All Pervasive • Problem Solving process • Multidimensional • Continuous Process • Intangible Force • Integrating process • Management Principles are universal in nature
  • 5.
  • 6.
  • 7.
    Managerial Skills 1. TechnicalSkills 2. Human Skills 3. Conceptual Skills 4. Diagnostic Skills 5. Analytical Skills 6. Communicational Skills 7. Political Skills
  • 8.
  • 9.
  • 11.
    Qualities of aGood Manager • 1. Transparency • 2. Good Communication • 3. Trust • 4. Empathy • 5. Decisiveness • 6. Vision • 7. Accountability • 8. Employee development • 9. Delegation
  • 12.
  • 13.
    Evolution of Management Prescientific management period Classical approaches to Management Behavioural approaches to Management Quantitative approaches to Management Contemporary Management Perspectives The future trends
  • 14.
    Pre scientific managementperiod • The notable contributors of this period are: Professor Charles Babbage (UK 1729 -1871): He was a Professor of Mathematics at Cambridge University “Father of modern computing” He give emphasis on specialisation , work measurement, optimum utilization of machines and tools
  • 15.
    • Henry RobinsonTowne (USA 1844 - 1924) • H.R Towne was the president of the famous lock manufacturing company "Yale and Town". • He outlined the importance of management as a science • Robert Owens (UK 1771 - 1858) • He was the promoter of co-operative and trade union movement in England • He emphasized the recognition of human element in industry
  • 16.
    1. The ClassicalApproach: The classical school represented the first major systematic approach to management thought.  It was distinguished by its emphasis on finding way to get the work of each employee done faster.
  • 17.
    The classical schoolcan be broken down into three historical philosophies of management.
  • 18.
    Scientific Management: Frederick WinslowTaylor - Father of scientific management Started as an apprentice machinist in Philadelphia, USA. He rose to be the chief engineer at the Midvale Engineering Works and later on served with the Bethlehem Works His famous work is “The principles of Scientific Management” Published in 1911
  • 19.
    •The scientific methodconsists essentially of • Observation • Measurement • Experimentation and • Inference.
  • 20.
    He summed uphis approach in these words: • Science, not rule of thumb • Harmony, not discord • Co-operation, not individualism • Maximum output, in place of restricted output • The development of each man to his greatest efficiency and prosperity.
  • 21.
    Elements of ScientificManagement: 1. Scientific Task and Rate-setting, work improvement, etc. 2. Planning the Task. 3. Vocational Selection and Training 4. Standardization (of working conditions, material equipment etc.) 5. Specialization 6. Mental Revolution
  • 22.
    1. Scientific Taskand Rate-Setting (work study) •Methods Study •Motion Study •Time Study (work measurement) •Fatigue Study •Rate-setting
  • 23.
    2. Planning theTask. Necessary steps have to be taken to plan the production thoroughly so that there is no bottlenecks and the work goes on systematically.
  • 24.
    3. Selection andTraining •Scientific Management requires a radical change in the methods and procedures of selecting workers. It is therefore necessary to entrust the task of selection to a central personnel department.
  • 25.
    4. Standardization: •Tools andequipment •Speed •Conditions of Work •Materials
  • 26.
    5. Specialization: The RouteClerk: The Instruction Card Clerk: The Time and Cost Clerk: The Shop Disciplinarian The Gang Boss: The Speed Boss: The Repair Boss:
  • 27.
    6.Mental Revolution: • Atpresent, industry is divided into two groups – Management  Labour. The major problem between these two groups is the division of surplus
  • 28.
    Criticism Worker's Criticism: Speeding upof workers Loss of individual worker's initiative: Problem of monotony: Reduction of Employment: Weakening of Trade Unions: Exploitation of workers: Employer's Criticism: Heavy Investment: Loss due to re- organization: Unsuitable for small scale firms:
  • 29.
    Frank and LillianGilbreth • The couple placed high value on efficiency when managing an organization. Their management theory outlined three main points: • 1. Reduce the number of motions in a task. • 2. Focus on the incremental study of motions and time. • 3. Increase efficiency to increase profit and worker satisfaction.
  • 30.
    Administrative Management Theory: HenryFayol is considered the father of modern theory of general and industrial management. He graduated as a mining engineer in 1860 from the National School of Mining. After his graduation, he joined a French Coal Mining Company as an Engineer. After a couple of years, he was promoted as manager. He was appointed as General Manager of his company in 1888.
  • 31.
    Concept of Management: •He divided general and industrial management into six groups: • Technical activities - Production, manufacture, adaptation. • Commercial activities - buying, selling and exchange. • Financial activities - search for and optimum use of capital. • Security activities - protection of property and persons. • Accounting activities - stock-taking, balance sheet, cost, and statistics.
  • 32.
    Fayol's Principles ofManagement: 1. Division of work: 2. Authority and Responsibility: 3. Discipline 4. Unity of Command: 5. Unity of Direction: 7. Remuneration: 8. Centralization: 9. Scalar Chain: 10. Order:. 11. Equity: 12. Stability of Tenure: 13. Initiative: 14. Esprit of Co- operation:
  • 33.
    Bureaucratic Management • MaxWeber, a German Sociologist developed the bureaucratic model. • Bureaucracy provides a rigid model of an organization. It does not account for important human elements. The features of Bureaucracy are:- Rigidity, impersonality and higher cost of controls. Anxiety due to pressure of conformity to rules and procedure. Dependence on superior. Tendency to forget ultimate goals of the organization.
  • 34.
    Behavioural approach toManagement 1. Elton Mayo (Australia, 1880 - 1949) Elton Mayo is generally recognized as the father of Human Relations School. He led a team of researchers from Harvard University, which carried out investigation in human problems at the Hawthorne Plant of Western Electrical Company at Chicago.
  • 35.
    Hawthorne Experiment: • TheHawthorne experiment consists of four parts. These parts are briefly described below:- Illumination Experiment. Relay Assembly Test Room Experiment. Interviewing Programme. Bank Wiring Test Room Experiment.
  • 36.
  • 37.
    Douglas McGregor • Inthe 1960s, social psychologist Douglas McGregor developed two contrasting theories that explained how managers' beliefs about what motivates their people can affect their management style. He labelled these Theory X and Theory Y • Theory X and Theory Y were first explained by McGregor in his book, 'The Human Side of Enterprise,' and they refer to two styles of management • authoritarian (Theory X) and • participative (Theory Y).
  • 38.
    • Theory X Dislike their work. Avoid responsibility and need constant direction. Have to be controlled, forced and threatened to deliver work. Need to be supervised at every step. Have no incentive to work or ambition, and therefore need to be enticed by rewards to achieve goals. • Theory Y Happy to work on their own initiative. More involved in decision making. Self-motivated to complete their tasks. Enjoy taking ownership of their work. Seek and accept responsibility, and need little direction. View work as fulfilling and challenging. Solve problems creatively and imaginatively.
  • 39.
    Quantitative approaches to Management •Assumptions of Quantitative Theory: • 1. Organisations are decision-making units which make efficient decisions through mathematical models. • 2. Business problems can be solved through joint efforts of a team that consists of experts from the fields of mathematics, statistics, accountancy, engineering etc. • 3. Business problems can be expressed in mathematical models where relevant factors can be quantified in numerical terms. Management is
  • 40.
  • 41.
    System Approach • Theword system is derived from the Greek word meaning to bring together or to combine. A system is a set of interconnected and inter-related elements or component parts to achieve certain goals.
  • 43.
    Contingency Approach • Contingencyapproach analysis and understands these inter relationship sothat managerial actions can be adjusted to demands of specific situations or circumstances.