Management Definitions:

Lecture - 1

1. Management is the art of getting things done

through and with the people in formally organized
groups.
- Herald Koontz
2. Management is concerned with the systematic
organization of economic resources and its task is to
make these resources productive
- Peter Drucker
3. Management is effective utilization of human and
material resources to achieve the enterprise
objective.
- W F Glueck
4. Management is the process of designing and
maintaining an environment in which individuals
working together in groups, accomplish efficiently
selected aims
- Koontz and Weihrich
Features of Management:
1. Management is a social process
2. Management is a universal concept.
3. Management is a complex concept.
4. Management is a science as we as an art.
5. Management goes with the need of situation.
6. Management integrates human skill of decision
making.

Objectives of Management:
1. Management is dedicated to achieve maximum
results with minimum efforts.
2. Enhancing efficiency of factors of production.
3. Attaining maximum prosperity for employer and
employee.
4. Reaching social justice.

Significance of Management:

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 1. Management makes goals achievable through limited
resource.
2. Management makes the process easier even in a
difficult situation.
3. Management ensures the continuity of the
enterprise.
4. Management helps in optimum utilization of
resources.
5. Management enables the organization to cope with
its external and internal environment.
6. Management focuses on group efforts.
7. Management makes organization cost effective and
built effective and efficient manpower.
8. Management is the key to the economic growth.

Challenges of Management:
Lecture - 2
1. Increasing opportunities.
2. The changing life style and values.
3. Increasing life expectancy
4. Growing Expectations from the member of the
organization and the society.
5. Unmatched interest among members of the society.
6. Fallen business ethics.
7. Decreasing financial and non financial resources
8. Changing technology.
9. Bottleneck in the basic infrastructure.
10. Threats on environment.

Administration vs. Management:

The main concern for the administration is to prepare policy

to hold the organizational process.

Let us see some differences between the two;

Functional differences:

Administration Management

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The main concern is to Management is to make the
formulation of vision, planned work done
mission, plans and policies

It has a decision making It has an executive function

function
It decides what is to do and It decide who should do and
when how
It is a thinking function It is a doing function

More important at higher More important at middle and

level of organizational lower level
structure

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 Table: 1.1
Graphical portray:

BOD

Administration CEO

Managements Managers

Superintendent

Supervisor

Fig: 1.1
Functions of Management:

1. Planning:
a. Identifying the goals to achieve.
b. Exploring the actions to achieve set goals.
c. Evaluation of the actions taken.
d. Selection of the best action that can reach goal
feasibly.

Elements of planning:
• Forecast
• Objectives
• Policies
• Strategies
• Programs
• Procedures
• Schedules
• Budgets

2. Organizing
a. Grouping similar tasks
b. Assignment of task to different departments
c. Creation of job position
d. Establishing fair relationship
e. Re organized grouped tasks

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 3. Staffing
a. Recruitment
b. Selection
c. Placement
d. Training and Development
e. Performance Appraisal
f. Promotion and compensation
g. Career planning.

4. Directing:
a. Leading
b. Motivating
c. Communicating
d. Coordinating

5. Controlling:
a. Measurement of employee performance
b. Compare actual performance with standard
c. Taking follow up actions

According to Luther Gullick we can state management

functions as “POSDCORB”; where P = Planning, O =
Organizing, S = Staffing, D= Directing, CO =Coordinating, R
= Reporting, B = Budgeting.

Evolution of management thoughts:

Lecture - 3
1. Period of management awakening
2. Scientific management period
3. The human relation period or behavioral science
period.
4. Modern management period.

Period of management awakening

Features;
a. Automation
b. New innovations
c. Expansion on commercial establishments

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Contributions:
1. Robert Owen: First to emphasis on personnel
management issues
2. Charles Babbage: First to use scientific analytical tools
in business
3. James watt JR and Robinson Boulton: First to
managerial techniques like, Forecasting, MR, Plant
layout, employee welfare etc.

Scientific management period

A period of classical theories by Henry Fayol’s and F W
Taylor
Contributions:
I. Fedrick Winslow Taylor: Also known as father of scientific
management. First ever to bring scientific approach in
industrial activities;
Element of Scientific management process:
• Developing a scientific method for each operation
replacing opinions
• Determine accurately in a scientific way the
correct time and method for each job
• Develop a suitable organization to make the
workers responsible.
• Select and train the workers
• Convince the management that scientific
approach is better over others.

Taylor’s “Bethlehem steel works” experiment:

Message to workers:
• Profit for the enterprise is profit of its workers
• Right type of work gives right type of earning
• Cooperation with management
• Get trained voluntarily

Merits:
• Improved productivity

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 • Rational approach to measures task and process
• Improvement in working methods like plant design etc.
• Price rate wage system (incentives)
• Change in working condition
• Introduction to work study

De-merits:
• Ignores functional areas of management (Marketing,
finance etc)
• Ignores individual creativity
• Stress to compete with machine tools
• Over specialization
• Insufficient mobility
Lecture - 4
II. Henry Fayol: Denoted six types of activities to be
performed by any industrial organization. i.e.: (a) Technical
(b) Commercial (c) Financial (d) Security (e) Accounting (f)
Managerial

Fourteen principles given by Fayol:

1. Division of work.
2. Authority
3. Discipline
4. Unity of command
5. Unity of direction
6. Imposing group interest over individual interest.
7. Remuneration
8. Centralization of authority
9. Scalar chain
10. Keeping Order
11. Equity with employee
12. Stability of job
13. Initiative
14. Espirit De corps (Unity in strength)

Modern contributors in scientific management

• Henry Gantt: Scientific selection and development of
workers. Introducers of graphical planning and control

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 • Frank and Lillian Gilbreth: Introducer of motion study
• Lyndal F Urwick: Study gave support to cope with
external factors affecting management system
• EFL Brech: Scientific approach towards the
management structure and organizations structure.

Lecture - 5
The human relation period or behavioral science
period:

Emphasis on human factor while getting thing done

Main view:
• Organizations are techno, economic and social units
• Individual differ in their attitudes, perception, abilities
etc
• Conflicts are inevitable and some times they are
beneficial

Contributions:
I. Douglas Mc Gregor: He divides leadership in two styles
labeled theory “X” and theory “Y”.
Theory x ('authoritarian management' style):
• The average person dislikes work and will avoid it
he/she can.
• Therefore most people must be forced with the threat
of punishment to work towards organizational
objectives.
• The average person prefers to be directed; to avoid
responsibility; is relatively un-ambitious, and wants
security above all else.

Theory y ('participative management' style):

• Effort in work is as natural as work and play.
• People will apply self-control and self-direction in the
pursuit of organizational objectives, without external
control or the threat of punishment.

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 • Commitment to objectives is a function of rewards
associated with their achievement.
• People usually accept and often seek responsibility.
• The capacity to use a high degree of imagination,
ingenuity and creativity in solving organizational
problems is widely, not narrowly, distributed in the
population.
• In industry the intellectual potential of the average
person is only partly utilized.

II. George Elton Mayo:

Haw-throne experiment:
1. Supervisors should not act like supervisors - they should
be friends, counselors to the workers
2. Managers should not try to micro-manage the
organization by an overriding concern for product or job
quality at the expense of the macro-social, or humanistic,
characteristics of work
3. People should be periodically asked how they feel about
the work, their supervisors, and co-workers
4. Humanistic supervision plus morale equals productivity
5. Those who don't respond to group influence should be
treated with sarcasm
6. Workers should be involved or at least consulted before
any change in the organization
7. Employees who leave should be exit-interviewed -
turnover should be kept to a minimum

Herzberg's Two Factor Theory:

Lecture - 6
Herzberg analyzed the job attitudes of 200 accountants and
engineers who were asked to recall when they had felt
positive or negative at work and the reasons why.

From this research, Herzberg suggested a two-step approach

to understanding employee motivation and satisfaction:

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 Fig: 1.2

Hygiene Factors
Hygiene factors are based on the need to for a business to
avoid unpleasantness at work. If these factors are
considered inadequate by employees, then they can cause
dissatisfaction with work. Hygiene factors include:
- Company policy and administration
- Wages, salaries and other financial remuneration
- Quality of supervision
- Quality of inter-personal relations
- Working conditions
- Feelings of job security

Motivator Factors
Motivator factors are based on an individual's need for
personal growth. When they exist, motivator factors actively
create job satisfaction. If they are effective, then they can
motivate an individual to achieve above-average
performance and effort. Motivator factors include:
- Status
- Opportunity for advancement
- Gaining recognition
- Responsibility

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- Challenging / stimulating work
- Sense of personal achievement & personal growth in a job
III.Abraham Maslow:

Fig: 1.3

Vroom's expectancy theory:

Vroom presents us with the idea that people are influenced

by the expected results of their actions. In one sense, what
we do depends on what we believe we will gain from doing
it. In Vroom's model three variables are identified, as
described in the table below.

Vroom's Variables:
• Force: The motivational force / effort with which the
individual will pursue a particular course of action.
• Valence: The attractiveness, or unattractiveness, to the
individual of the outcome of that course of action.
• Expectancy: The individual’s expectation, the perceived
probability, that such an outcome will be achieved.

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 Vroom proposes that Motivational force is a function of
Valence & Expectancy; this can be best conveyed by the
formula.

Force = Valence x Expectancy

F=VxE

Modern management period:

Lecture - 7
• An integrated approach with respect of classical,
scientific and behavioral periods
• With respect to dynamic business environment
• Global competitions

Modern issues:
1. Establishing vision
2. Managing Environment
3. Developing culture
4. Empowering employees
5. Applying new technology
6. Managing changes
7. Finding competitive advantages
8. Creating excellence

The System Approach to management:

A system is a collection of interrelated parts or sub-systems
From system point management functions are;
1. Inter inked
2. Interdependent
3. Complex
As all functions of management are intersecting at one or
more areas thus for manager it is always necessary to keep
coordination among various functions.
Interlinked:
ORGANIZING STAFFING

PLANNING

CONTROLING DIRECTING 12
 Fig: 1.4
Inter dependent:

PLANNING FEEDBACK

ORGANIZING

Managerial
Efforts Solutions
problem STAFFING

DIRECTING

CONTROLING

Fig: 1.5

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Managerial objectives: Lecture -
8
Managerial objectives can be broadly divided as;
1. Economic objectives
 Profit earning
 Production of goods
 Creating markets
 Technological improvements
2. Human objectives
 Welfare of employees
 Satisfaction of consumers
 Satisfaction of shareholders
3. Social objectives
 Availability of goods
 Supply of quality goods
 Cooperation with the Government
 Creation of more employment
 Optimum utilization of national resources
4. Organic objectives
 Survival
 Growth
 Earning recognition and esteem
5. National objectives
 Empowering national efforts
 Development of small entrepreneurs
 National self-sufficiency and export
development
 Development of skill personnel
Social Responsibilities:
The social responsibility means, a business should oversee
the operation of an economic system that fulfils the
expectations of the people in the society.

Management owes responsibility towards:

• Shareholders
• Workers
• Customers

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• Suppliers
• Competitors
• Government
• Society

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 Lecture – 9
Organization:
It is the place where a group of people works to achieve a
common goal. Here all management functions get executed.

Basic Concepts:
• Organizational Hierarchy
• Authority and responsibility
• Delegation of Authority
• Span of management or Control

Principles of Organization:
• Orchestrate departmental objectives with Corporate
objectives
• Cost effective operations
• Reaching optimum number of subordinate
• Specialization of task
• Define authority
• Define Responsibility
• Flow of authority
• Supervision on exceptions
• One employee one superior
• Single regulated plan
• Appropriate balance of authority and responsibility
• Attaining balance in the system
• Ensure flexibility
• Stand for enterprise continuity

Classification of organizations based on authority

relationship:

Line Organization:
• Line Originates from the disposal of tasks which contain
more and more executive elements.
• Everyone has a chief or manager to whom one is
related in a power structure.

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 • Power of the line: ordering and controlling downwards,
accountability upwards.
Merits:
• Clearly stated authority and responsibility
• Simple to conceptualize
• Simple to control
• Flexibility
• Fast decision and action

Demerits:
• Overload of task related to department
• No scope for specialization
• Scope of favoritism
• Can lead to low morale
• Instability threat

Line and Staff Organization:

==================
Organization structure is where, staff managers supports line
mangers for efficient functioning.

Merits:
• Improves the quality of decision
• Relieves for line managers
• Scope of advancement

Demerits:
• Conflict can arise between line and staff
• Staff suggestions are rarely executed
• Expensive

Functional Organization:

Organization structure is where managerial job function is

divided according to type of task.

Merits:
• Planned specialization

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 • Separation of activities
• Standardization
• Well defined control

Demerits:
• Violation of single boss principles
• Expensive
• Needs more coordination
• Difficult during diversification
• No clear line of authority.

Functional Departmentation:
Where, organization structure is according to the
department or specialization of skilled task.

Merits:
• Each function get focused
• Better decision making due to specialization
• Better control

Demerits:
• Delay in decision and implementation
• Needs more coordination
• Expensive

Committee Organization:

Organization structure, where every task is held by a

committee or group.

Lecture – 10
Classification of organizations based on departments
===================================================
=====

Matrix Organization:

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Also known as project organization, here all relationship is
combined. Thus here there is no complexity in decision
making or division of task.

Merit:
• Operational freedom and flexibility
• Optimize the utilization of resources
• Focus on end results
• Enhance responsibility

Demerits:
• Needs better coordination
• Violate Unity of Command
• No precise authority or responsibility
• Conflict to work under multiple boss

Product Organization:
• Structure is according to the products manufactured or
services rendered.

Geographical, regional or territorial organization:

• Specialized type of organization to work over a
particular geographic area.

Customer Organization:
• Here structure follows the need of customer. Activities
are organized with customer orientation.

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