Management

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 Who Are Managers?
Manager
Someone who works with and through other
people by coordinating their work activities in
order to accomplish organizational goals

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 Types of Managers
First-line Managers
Are at the lowest level of management and manage the
work of nonmanagerial employees
Middle Managers
Manage the work of first-line managers
Top Managers
Are responsible for making organization-wide decisions
and establishing plans and goals that affect the entire
organization

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 Exhibit 1.1 Managerial Levels

Top
Top
Managers
Managers
Middle Managers
Middle Managers
First-Line Managers
First-Line Managers
Nonmanagerial Employees
Nonmanagerial Employees

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 Where Managers Work

Organization
A consciously coordinated social unit,
composed of two or more people, that
functions on a relatively continuous basis
to achieve a common goal or set of
goals.

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 Definition of Management:

Management is the process of designing and

maintaining an environment in which individuals,
working together in groups, efficiently accomplish
selected aims

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 Definitions of Effectiveness and
Efficiency
Productivity implies effectiveness and efficiency in
individual and organizational performance
Effectiveness is the achievement of objectives
Efficiency is the achievement of the ends with the
least amount of resources (men, money, material,
machinery, time etc.)

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 Managerial Concerns

Efficiency
 “Doing things right”
 Getting the most output for the least input
Effectiveness
 “Doing the right things”
 Attaining organizational goals

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 What Managers Do
Managers (or administrators)
Individuals who achieve goals through other people.

Managerial
ManagerialActivities
Activities
••Make
Makedecisions
decisions
••Allocate
Allocateresources
resources
••Direct
Directactivities
activitiesofofothers
otherstoto
attain
attaingoals
goals

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 What Do Managers Do?

Functional Approach
Planning
Organizing
Leading
Controlling

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 Management Functions (cont’d)

Planning
A process that includes defining goals,
establishing strategy, and developing
plans to coordinate activities.

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 Management Functions (cont’d)

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.

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 Management Functions (cont’d)

Leading
A function that includes motivating
employees, directing others, selecting
the most effective communication
channels, and resolving conflicts.

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 Management Functions (cont’d)

Controlling
Monitoring activities to ensure they are being
accomplished as planned and correcting any
significant deviations.

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 Management Functions

Planning Organizing Leading Controlling

Lead to
Defining goals, Determining Directing and Monitoring
establishing what needs motivating all activities Achieving the
strategy, and to be done, involved parties to ensure organization ’s
developing how it will and resolving that they are stated
subplans to be done, and conflicts accomplished purpose
coordinate who is to do it as planned
activities

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 What Do Managers Do? (cont’d
Mintzberg’s Management Roles Approach
Interpersonal roles
 Figurehead, leader, liaison
Informational roles
 Monitor, disseminator, spokesperson
Decisional roles
 Entrepreneur, disturbance handler, resource allocator, negotiator

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 Mintzberg’s Managerial Roles

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 Mintzberg’s Managerial Roles (cont’d)

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 Mintzberg’s Managerial Roles (cont’d)

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 What Do Managers Do? (cont’d)
Skills Approach
Technical skills
Human skills
Conceptual skills

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 Management Skills
Technical skills
The ability to apply specialized
knowledge or expertise.

Human skills
The ability to work with, understand,
and motivate other people, both
individually and in groups.

Conceptual Skills
The mental ability to analyze and
diagnose complex situations.

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 Exhibit 1.4 Skills Needed at Different
Management Levels

Top Conceptual
Managers Skills
Middle Human
Managers Skills
Technical
Lower-level
Skills
Managers

Importance

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 What Is An Organization?
An Organization Defined
A deliberate arrangement of people to accomplish
some specific purpose
Common Characteristics of Organizations
Have a distinct purpose (goal)
Are composed of people
Have a deliberate structure

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 Exhibit 1.6 The Changing Organization
Traditional New Organization
 Stable  Dynamic
 Inflexible
 Job-focused
 Flexible
 Work is defined by job positions
 Skills-focused
 Individual-oriented  Work is defined in terms of tasks to be
 Permanent jobs done
 Command-oriented  Team-oriented
 Managers always make decisions  Temporary jobs
 Rule-oriented  Involvement-oriented
 Relatively homogeneous workforce  Employees participate in decision making
 Workdays defined as 9 to 5
 Hierarchial relationships
 Customer-oriented
 Work at organizational facility during specific  Diverse workforce
hours  Workdays have no time boundaries
 Lateral and networked relationships
 Work anywhere, anytime

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 Management: Definition
Acc to Harold Koontz: Management is the art of
getting things done through & with an formally
organized group
Acc to Henry Fayol: To manage is to forecast & plan,
to organize, to co-ordinate and to control
PODSCCRB:
- Planning, Organizing, Directing, Staffing,
Controlling, Co-ordinating, Reporting & Budgeting

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 Features of Management
Art as well as Science
Management is an activity
Management is a continuous process
Management achieving pre-determined objectives
Organized activities
Management as a system
Management is a discipline

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 Features of Management
Management is a distinct entity
Management aims at maximising profit
Management is a purposeful activity
Management is a profession
Universal application
Management is getting things done
Management is needed at all levels

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 Importance of Management
Management meet the challenge of change
Accomplishment of group goals
Effective utilization of resources
Effective functioning of business
Resource Development
Sound organization Structure
Management directs the organization
Integrates various interests
Stability

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 Importance of Management
Innovation
Co-ordination and team-spirit
Tackling problems
A tool for Personality Development

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 ORGANISATION THEORIES
The theories are crafted in view of the basic production
being
Replaced my mass production, to organize technology-
information-manpower interface for proper coordination of
Activities of large number of people and increased
efficiency.
Major theories are:
1. Classical Theory
2. Neo-Classical Theory
3. Modern Theory

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 1. CLASSIC THEORIES
a) Scientific Management
b) Administrative Management
c) Theory of Bureaucracy

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 a) Scientific management
Introduced by F.W. Taylor in USA in the beginning of
20th century.
He is called as the Father of Scientific Management
Focus on improving the efficiency of the workers.

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 Principles of Scientific Management

Task fragmentation
Scientific Analysis of the jobs being done to select the
best method of doing the task
Standardization of tools and methods for production
Scientific selection through specialization
Financial Incentives and rewards
Training
Demarcation of responsibilities between management
and workers

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 Limitations of scientific mangement
Mechanical approach considering worker an adjunct to
machines
Narrow specialization due to fragmentation of jobs
Routinization of jobs leading to boredom, short job cycles,
lack of autonomy hence worker distress
More of a “SYSTEMATIC” approach than being scientific
“Command and control” system
“conception and planning” being separated from
“execution”
Wages not being increased in proportion of production
Required to perform consistently at high level of efficiency

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 B. Administrative Management
Henry Fayol (1841-1925), a french industrialist
Given :
Elements of Management- Planning, Organizing,
Commanding, Co-ordination & Control
Qualities of Manager: Physical, Mental, Moral, General
Education, Special Knowledge & Experience
Categories of operations: technical, commercial,
financial, security, accounting, management
Principles of Management

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 Principles of Management
1. Division of labour
2. Authority
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interest to common good
7. Remuneration
8. Centralisation
9. The hierarchy
10. Order
11. Equity
12. Stability on staff
13. Initiative
14. Esprit de corps
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 Principles by Luther gullick and Lyndall Urwick; an
extension to Fayol
Fitting people to the organization structure
Recognizing one top executive as the source of
authority
Adhering to the unity of command
Using special and general staff
Departmentalizing by purpose, process, persons and
place
Considering appropriate spans of control
Delegating and utilising the exception principle
Marking responsibility commensurate with authority

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 Limitations of Admin. Mgmt
principles
Behavioral, cultural and social components ignored
No emphasis on variations in human response towards
management processes like planning, directing and
controlling
Rational approach towards human factor

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 C. Bureaucracy
Given by Max Weber, a German sociologist.
Known as father of Bureaucracy
Proposed that bureaucracy provides most efficient
framework for designing business, government,
military and other complex organisations

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 Principles Of Bureaucracy
 Division of labor based on functional specialization, individual
specialization, task allocation according to competence
 Well defined hierarchy of authority
Rational legal authority (rank/position)
Traditional authority (monarch)
Charismatic authority (mass appeal/ special powers)
 A system of procedures to deal with work situations
 System of record keeping
 A system of promotion and selection for employment based on
technical competence
 Rational decision making based on fairness, justice and equity
 Adherence to norms, code of conduct ; consistency of actions
 Rules covering rights and duties of positional incumbents

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 Limitations of bureaucracy
1. Goal displacement (procedure vs. result)
2. Inadequate communication
3. Lack of effective coordination
4. Lack of system for conflict management
5. Red tapism (rules not applied uniformly)
6. Outdated notion of authority
7. Lack of opportunity for personal growth
8. Lack of innovativeness
9. Inadequate appreciation of organizational dynamics
10. Change resistant
11. Suboptimal utilization of manpower
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 2. NEO-CLASSIC THEORIES
2. Neo-Classical Theory
The Human Relations approach
Behavioral science contributions

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 a. The Human Relations Movement
Illumination Experiments (hawthorne experiments) by
elton mayo
Resulted in cnclusion that change in social conditions ,
motivation and supervision and NOT the working
conditions were factors responsible for increase in
production
Role of informal work group
Production determined more by social factors than
aptitute or physiological factors

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 Principles of human relations school
“social capacity” rather than “physical capacity”
Psychological needs are prime movers
Individual behavior is affected by feelings
Orgnisation to be viewed both as techno economic as well
as social system
Critical role of informal work groups
Workers act/react as members of groups and not mere
individuals
Informal leadership more emergent than formal leadership
Necessacity of 2 way communication
Integration between goals of organisation and individuals
Managers developing social and technical skills
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 B. Behavioral science contribution
Stress on developing organisation as COOPERATIVE
SYSTEM
Group dynamics playing an important role
More stress on interpersonal relationships
“personality” and “behavior” : external situation
factors and psychic inner causes

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 Assumptions about people:
McGregor’s theory
Theory X Theory Y
Average human being is Work is natual as play if
lazy and deslikes work conditions are favourable
People like to be directed Self direction and control
and lack ambition to serve the objectives
People have little capacity Commitment to objectives
for creativity and satisfaction of egoes
Most people are Proper conditions are
indifferent to organisation necessasary,
goals shortcomings are not
Motivation is always inherited
relatedto physiological Potential partially utilised
47 needs (food, shelter etc) under present ind. system
 Motivation and Job satisfaction
Maslow’s theory: identification of 5 basic needs:
1. Physiological needs: hunger, thirst etc.
2. Safety needs: protection against danger, threat,
deprivation etc
3. Love needs: belonging to groups, friendship, affection
4. Esteem needs: self respect, respect for others, ego and
status needs
5. Self fullfillment and self actualisation: self
development, creativity, satisfaction, realising owns
potential

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 Immaturity maturity continuum (chris rgyris)
IMMATURITY MATURITY
CHARACTERISTICS CHARACTERISTICS
Passivity Activity
Dependence Responsible
Few ways of behaving independence
Shallow interests Diverse behavior
Short time perspectives Deep interests
Subordinate position Long time perspectives
Lack of self awareness Super ordinate positions
Self awareness and
control

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 Other features of neo classical theory
Need of a DECENTRALISED STRUCTURE
DEMOCRATIZATION and PARTICIPATION

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 3. MODERN
Modern Theory THEORIES
A. Quantitative Approach (Mgmt. science theory)
B. Systems Approach
C. Contingency Approach

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 A. QUANTITATIVE APPROACH
Emerged after world war 2
Operation research: mathematical model building and other
applications of quantitative techniques to managerial problems
Operations management: quantitative technique to solve manufacturing
problems.e.g. forecasting, linear and non linear programming,
scheduling, simulation, break even analysis, computer aided design
(CAD), Computer automated manufacturing (CAM), total quality
management (TQM)
Information technology: internet, intranet, decision support systems
(DSS)

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 B. SYSTEMS APPROACH

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 SYSTEMS approach (cont..)
An extension of the humanistic perspective that describes
organisations as open systems that are characterised by
entropy, synergy and subsystem interdependance.
Open system: which interacts with the environment to
survive
Closed system: does not interacts with the external
environment
Entropy: tendency of a system to run down and die
Synergy: concept that the whole is greater than the sum of
its parts
Subsystems: parts of the system that depend upon one
another for their functioning

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 Organizations as an open system
System and sub system
Holism : whole is greater than arithmetic mean of its parts
Importation of energy
Conversion process (JIT, kaizen, (continuous improvement) TQM)
Export of energy (value added products, services)
Cyclic nature of activities
Negative entropy: resistance to perish
Self regulatory mechanisms
Internal elaborations (strategizing, elaborating activities)
Integrate: unity of actions and coordination
Equifinality (reaching same final state from different initial
conditions by variety of ways)

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 C. Contingency theory
An extension of the humanistic perspective in which the
succesful resolution of organizational problems is thought to
depend upon manager’s identification of key variations in the
situation at hand.
Universalistic view:
 there is one best way (either be leadership style, bureaucratic structure)
 The same concept is applicable to every another organization
Case view:
 Every situation is unique
 Determining new methods/solution for every new situation or problem

Case view CONTINGENCY VIEW

Organization phenomenon exist in logical
patterns; management devise and apply
Universalisti similar responses to common types of
57 c view problems
 QUERIES ???

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