Introduction to Management, principles, levels of management, Early and Modern Management Approaches

1. Management

2. What is Management??
Harold Koontz says ‘Management is the art of
getting things done within formally organized
group’
Henry Fayol says ‘To mange is to forecast and
plan, to organize, to compound, to co-ordinate
and to control’

3. Why Study Management??
• Management makes human efforts more productive.
• It brings better equipment, plants, offices, products, services and
human relations to our society.
• Helps in social economic life.
• Management brings order to endeavors by combining isolated
events and disjointed information into meaningful relationships.
• These relationships then work to solve problems and accomplish
goals.

4. Nature and Characteristics of
Management
● It should be stable
● It should be applicable to all kinds of
organizations
● It is transparent
● It should be clear and goal oriented
● It should have good planning, organizing,
staffing, directing and controlling functions.

5. Scope
● Financial Management
● Personnel Management
● Office Management
● Supply chain Management
● Sales Management
● Transport Management

6. Functional area of management
1. Planning
2. Organising
3. Staffing
4. Directing(Leading) and
5. Controlling

7. Planning
It is an executive function which is referred as
decision making. It involves Vision and the
Mission to achieve them. It involves:
● Setting short and long term goals
● Deciding in advance what to do,how to do,who
has to do, when to do and where to do.
● Planning bridges the gap from where we are
now to where we want to be in future.

8. Organising
● It is the grouping of activities necessary to
attain objectives
● Grouping these activities into department
● identifying useful things like raw materials,
tools,capital etc. for the proper functioning of
the organisation
● Forming deligation of authority

9. Staffing
It is one of the important function which makes
provision for man power to fill different
positions. It involves:
● Finding right person for the right job
● Selecting the Personnel
● Placement,training and developing new skills

10. Directing
It involves directing or leading the people
towards the defined objectives. It has 3 sub-
functions:
● Communication
● Leadership
● Motivation

11. Controlling
It’s the measuring of correctness of action
against the goals and plans. It shows where
short falls or deviations exist and take necessary
actions to achieve the goals. It involves:
● Establishing standards of performance

12. Management Is Science Or Art?
As Art
Doing the things in light of the realities of a situation.
As Science
Organized knowledge underlying the practice .

13. Is Management a profession????

14. Activity 1
What makes Administration and
Management different?????

15. Roles of Management
• Interpersonal
• Informational
• Decisional role

16. Interpersonal role
• Figurehead role – outward relationships –
signing official documents
• Leader role – downward relationship –
selecting- guiding and motivating the
subordinates
• Liaison role – horizontal relationship – peers
and people in other organization for mutual
assistance

17. Decisional role
• Entrepreneurial role – initiating change ,
assuming risk
• Disturbance handler role- dealing with
unforeseen problems
• Resource allocator – disturbing resources
such as money, labor, materials
• Negotiator role – bargaining with supplier,
customers, superiors, subordinates for
favorable to the enterprise

18. Informational
• Monitor role-
1. collecting information from internal
operations and external events.
• Disseminator role-
1. involves transmission of information
internally to subordinates superiors
2. manager acts as switchboard
• Spokesman role –
1. it is normally carried out by higher management
2. it involves in speaking to press public, other
organization

20. Top managers
• Chairman of the board, president or executive vice
president or chief executive officer
• In government – top manager is administrator
Or secretary for state government
• They report to policy making group
• Responsible for defining the mission and objectives of the
enterprise
• They establish criteria for review for long range plans

21. Middle managers
• Plant manager, division head , chief Engineer ,
operations manager
• Levels are middle management level
• Job is managing through manage the managers
• They make plans of intermediate range to achieve the
long range set of goals

22. First line managers
• Directly supervise non managers
• They are usually foreman, supervisors or section chief
• Responsible for carrying resources assigned to them
• Make short range operating plans
• Evaluate the performance of individual workers
• Provide a linking between upper management and the
working level representing the goals

23. Management approaches
1.Early Management approach
2.Modern Management approach

24. Early Management approaches
• Psychological development.
• Scientific management
• Administrative management
• Human relations movement.

25. Psychological development
In olden days when there was no experience and
knowledge of business, they had to depend upon their
inborn abilities. This gave rise to management that was
totally based on Pyschological Process.

26. Scientific Management(18-19)
• Frederik Taylor has been considered to be father of
scientific management
• The efforts of scientists to demonstrate the
application of science and scientific methods
❖ Work study
❖ Differential payment
❖ Reorganization of supervision
❖ Scientific requirement and training

27. Objectives of Scientific Management
➔ To earn a larger profit from a given expenditure on man and
materials by minimizing waste work and waste movements
➔ To provide healthy and safe working environment
➔ To promote justice among workers by treating them equal
➔ To ensure happier and social life to workers
➔ To perform planned and balanced operations

28. Administrative Management
• Henri Fayol is considered as father of administrative
management. His theory was focussed on the
development of administrative principles applicable to
to middle and top level managers.
• He suggested that activity of any bussiness
organization could be divided into six groups viz.,
financial,technical, accounting,commercial,managerial
and security.
• Fayol had suggested principles of management as a
guideline to the process of management practice.
They are:

29. Fayol’s Principle of Management
➢ Division of work
➢ Authority and responsibility
➢ Discipline
➢ Unity of direction
➢ Subordination of individual interest to general interest
➢ Union is strength
➢ Initiative
➢ Equity
➢ Order
➢ Remuneration

30. Human Relations Movement
➔ Taylor and Fayol’s management techniques did
not completely achieve the efficient
production and harmony at workplace
➔ Elton Mayo conducted a series of experiments,
which are commonly known as Hawthorne
experiments. They are:
◆ Illumination experiments
◆ Relay assembly test room
◆ Interviewing Programme
◆ Bank wiring test room

31. Modern Management Approaches
• Behavioural approach
• Systems approach
• Quantitative approach
• Contingency approach

32. Behavioural approach
• It’s a refined form of human relations
approach
• This approach focuses on individual
behaviour, group behaviour, job design ,
motivation, leadership and communication.
• Flexible structure of organization

33. Quantitative Approach
• It deals with formulating a mathematical
model to simulate a given problem.
• An optimum mix of these critical variables is
arrived at, either to minimize the cost or
maximize the profit.

34. Systems Approach
• A system is defined as a set of independent parts
together form a unitary whole that performs a
defined task.
• Organisation is a system that consists of
people,task,structure and technology.
• A system can be either an open system or closed
system.

35. Contingency Approach
• It suggests that managers must do what the
situation wants or managers actions must be
contingent upon the organisational situation
or environment.
• It integrates all the approaches , no best way
of doing things under all conditions
• Hence the task of managers is to identify the
correct techniques that will suit a particular
situation.