LESSON 1 MANAGEMENT

Learning Objectives

 Define management
 Determine phases in management
 Identify functions of management including qualities of management

INTRODUCTION

Management refers to some definite, essential and unavoidable sets of activities or

functions present in all purposive actions. A lack of clear recognition and subsequent
appreciation of these sets of activities have rendered the study of management
difficult. Besides, the recent attempts to formalise the body of knowledge to make
management teachable has, as is natural in the development stages of any branch of
knowledge, resulted in much prolific writing but little terminological standardisation.
Words like management, administration and organisation have been used by various
authors with an astonishing amount of vague synonymity but with an equally amazing
diversity in the elucidation of their detailed content and scope.

1.1 Definition of Management

In this context, management may be defined as the complex of continuous

coordinated activity, by which, any undertaking is conducted. The activity may relate
to the optimum use of human effort and material for the benefit of man and
satisfaction of participants. However the activity/activities denoting the management
or part thereof with complete generalisation can be said to be present in all functions,
whether by a group of individuals working in a widely dispersed space and time, each
engaged in performing small elements of a complexly coordinated end activity or even
by a single individual

i. carefully planning his work

ii. consciously coordinating his mental thought process and physical objective resources

iii. wilfully motivating himself to translate his plan into action

iv. controlling his action either by a constant speedy comparison of the outcome of his
activity with the planned one, or by analysing the causes for resulting variances and by
taking deliberate measures with a view to achieve conformity with the planned
objectives.

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1.2 Phases is management Development

In the initial phase, large-scale unemployment, social displacement, and bad working
conditions led to increasing social legislation and labour unrest, putting progressively
more economic pressure on management either directly to pay them more or indirectly
spend more on creating and maintaining better working conditions. This resulted in the
primary emphasis of management on cost control.

 Scientific Management

It is the application of principles and methodology of science to the activity of

management. Contrary to the common belief, scientific management, as defined by
Taylor‟s scientific management, does not signify the creation of functional content
management. It gives recognition to to and formalises the functions which exist and are
being practised since man started any activity and more so, group activity. In the
development of management, scientific management emphasised the application of
the methodology of science, rather than unrelated individual wisdom and ability in the
running of an industry.

The methodology of science consists of:

a. analysis of pertinent input factors in a system with a view to establishing a series of

quantifiable relationship between input and output factors.

b. creation of a model by synthesis of the system.

c. formation of representative generalisation with recognition of the limitations of its

applications

The techniques to achieve better and efficient work by using available resources more
effectively are:

- time and motion study

- standardisation

- incentive payment,etc.

 Behavioural Scientists

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 The emphasis on productive efficiency has watered down the importance of
man and his behaviour. More unemployment without appropriate social planning to
rehabilitate the unemployed, unplanned job transfers and consequent social
displacement, strained relations between the authority of line foremen and up-and-
coming staff experts, and increasing the tendency to separate thinking from doing,
thereby reducing workers to the status of robots, were some of the reactions generated
by work-centered scientific management. The behaviour of man, his motives and
factors are conducive to the continued maintenance of the motivation engaged
increasing attention.

 Information Technology and Operations Research

The management development seems to have entered a third phase with

computerisation and improved means of communication. The information technology
phase is routinizing, more managerial positions, making them devoid of thinking, as
scientific management did in the past for the job of workers. Ever increasing speed and
capability of computers and more complex models have grown and are growing, in
tandem, enabling the management of larger and more complex systems, for example,
weather forecasting, earthquakes and public administration, much bigger and beyond
corporate sector.

1.3 Industrial Management

Industrial management is the application of activities of management to run an

industry efficiently. Management, as a function, is unavoidably present in any industrial
activity right from the beginning, but with growth in industries, both in size and
complexity, several distinct changes have come in its scope and technical content as
well as in the type of people performing them.

 From owner managers to professional managers

Change in ownership pattern inevitably brought in-salaried and professional

managers instead of owner managers and a complete change in the scale of
management activity. Professional managers, in effect, became trustees of public
finance put into industry and were responsible for its efficient maintenance and
profitable utilisation with virtually no direct interest in the healthy operation of business
except for a growing body of professional ethics to guide and inspire them.

Professional management has a difficulty in in balancing delicate task:

a. Public – through conformity to the statutory regulations on healt, hygiene, etc.

b. Consumer – by trying to reduce cost of production.

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c. Stakeholders – by assuring maximum possible return on their investment by
maximisation of profit.

d. Wage earners engaged in production – by assuring them adequate living wages to

enable them maintain a suitable standard of living as the equitable reward for the
labour they put in to produce products or services.

1.4 Contents and Principles of management

The function of management can be visualised as four distinct activities

 Planning
 Coordination
 Motivation
 Control

Management is a continuous and ever present activity. To deny this will be to deny
functional content of the management. Whereas the other input factors may or may
not be physically present at all stages of the processing system, management to plan-
to plan, motivate, coordinate and control- is always present.

Management must be for a definite, well set objectives or aims. The aims usually are:

a. production of goods and services

b. optimisation of effectiveness of different input parameters in the enterprise

c. the achievement (a and b with best satisfaction to public and wage earners.

 Scope and Nature of Management – management can become effective by

maintaining sufficient sensitivity and flexibility to meet the increasingly complex
challenges on its capability.

 Decision-Making – decision-making can, by situation obtaining, be for one or the

other aspect of the four fields of activity (planning, coordination, motivation and
control or a combination thereof. Decision-making under such circumstances
only emphasises the trusteeship nature of management in a situation pregnant
with short-term contradictions.

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  Effectiveness of Management – the efficiency of management is difficult to
measure directly as its effectiveness is expressed through the end results in which
it remains silent and invisible. However some of the indirect measures of
efficiency of management available are as follows.

a. Measure of efficiency stands for measures, which are adopted for

estimation of productivity, can be taken to be correlated with the measure of
managerial efficiency.

b. The economics and soundness of method of planning and control can be

tested by verifying whether or not they are consistent with contemporary
knowledge.

c. The percent utilisation of all input factors

1.5 FUNCTIONS OF MANAGEMENT

 Planning

Planning is a technique of looking ahead, an intellectual process of appraising

the future needs and purpose, identification and evaluation of opportunity and hazards
lying ahead in the womb future, and deliberate formation of fact based decisions on
orderly sequence of present action to meet the future with maximum effectiveness.

Planning, as a function , follows a definite pattern of activity irrespective of contents of

the plan or objectives with which plan is being made. Usually planning consist of:

1. The establishment of objective

2. The recognition of elements in situations both external and internal setting the
frame work of the premises within which planning will be done.

3. Searching for and examining the alternative course of actions to achieve the
main objective.

4. The evaluation of alternative course of actions, with as much quantification as

practicable.

5. The selection of the best plan as a result of No.3 and No.4.

 Coordination

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 Coordination, that is, the orderly arrangement of group effort is the means to
achieve the management of objective of optimally unifying and harmonising all
activities and efforts . Not only by harmonising the physical arrangement but also, to be
more general, by uniting the will and enthusiasm

a. Physical coordination – means scheduling and arranging different input

parameters to interact in a harmonious manner in a specified time and place.

b. Psychological coordination seeks to harmonise and integrate the constructive

thought of the people engaged with the aim of unity of action.

Committees

To achieve coordination, apart from individual goodwill, and competence of individual

managers, organisationally, different committees are constituted. A committee should
be more than a mere collection of individual. It should be a team- a self directing
group of people motivated to achieve the corporate objectives, possessing a rapport.

Advantages of committees are as follows:

i. provides group participation in decision making

ii. facilitates group deliberation and judgement

iii. provides representation of interested groups

iv. serves as a clearing house of information

v. motivates through group participation

vi. acts as a means of coordination

 Motivation

Motivation, as a management function, seeks to achieve the same thing as

ordering was supposed to do in older school of thinking. In the progressive
democratisation of attitude and social code of conduct, getting work done from
employees is a matter of their willing participation for which they need to be motivated
rather than ordered. Motivation can bridge the gap between capacity to work and
willingness to work.

Motivational theories and approach

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Human beings have been working for other individuals or organisations throughout the
history. Fear of physical and mental torture or deprivations caused weaker persons to
work for kings, landlords, powerful and rich. In business and industries, barring a few
significant and commendable humane exceptions, abject fear of at least losing
livelihood was the prime negative motivator. However with gradual democratisation of
government increasingly based on „one person one vote‟ and unionisation of industrial
workers, fear became an ineffective motivator. „Fair days work for a fair days pay‟ and
monetary reward for better than standard output, scientifically established was and still
is considered very just aerving as the key motivator inducing workers to work harder
and better.

Morale and motivation

Morale, on the other hand, is indicated by the capacity of a group to pursue

consistently a common purpose. It is the spirit of the undertaking. It is an attitude of
satisfaction with desire to continue in and willingness to strive for goals of a group and
organisation with a feeling of togetherness. If motivation can be seen as energy
mobilisation, morale is mobilisation of sentiments. A programme to motivate people or
carry out motivation as a function is set with difficulties primarily because of the
immense complexity of the phenomenon of motivational behaviour.

The level of morale in any work group can be determined by:

i. study of behaviour

ii. study of attitude

iii. projection technique

 Control

The control function of management consists of

i. measurement of performance

ii. determination of deviation from plan

iii. its continuous feedback to the planning which will take corrective action to help
performance confirm to the planned norm and standard

There can be no control unless planned targets and standards are there. On the other
hand, without control, planned targets and standards are not correlated with
performance and planning becomes incapable of dynamically guiding the course of
event to reach the standards set by it.

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The control process

As a function, control can be affected in several definite sequential steps

i. Plan the control – define the objective, determine the strategic points of observations,
decide on individual responsibility, decide on methods of observations, recording and
reporting.

ii. Analyse – must be done as fast as possible by measuring and interpreting the result.

iii. Act – deciding on corrective action and taking corrective action

Principles of Control

i. like other functions, must be objective-based vii. Must be simple and understandable

ii. must be efficient and economic viii. Must be without exceptions

iii. must be worn through formal organisation ix. Must be flexible

iv. must be forward looking x. must be continuous

v. must be direct xi. Must be by agreement

vi. must reflect on plan and organisation xii. Must be quick

1.6 Leadership

Leadership is integrated, synchronised expression of group efforts. By exerting

interpersonal influence, by being the fulcrum which gives leverage to the collective will,
it enables the work of others to be done economically and to the maximum satisfaction
of participants. A leader must understand the physical, psychic, and social needs of the
people, must assess the situation in its static and dynamic aspects, must motivate and
coordinate.

Leadership consists of:

i. Knowing the situation

ii. Knowing how to adjust to it by different techniques

iii. Knowing the result of applying technique

iv. Consciously and deliberately applying the technique in a calculated manner

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  Qualities of Leader

The qualities which were found essential for the leaders are:

i. above average intelligence

ii. strength of mind

iii. courage

iv. determination and self confidence

v. foresight

vi. imagination and vision

vii. honesty, fairness and integrity

viii. emotional maturity and coolness

ix. Willingness and ability to take responsibility

x. ability to plan, organise, communicate, motivate and inspire

xi. ability to take decisions

xii. ability to choose right subordinates

xiii. capability for hardwork

xiv. faith in doctrine and cooperative effort

xv. ambition and self motivation

 Leading process

General facts about leader

1. The leader, as the originator of action is not equal to others in the group.

2. A leader is stronger than an individual member, but should be weaker than the group
as a whole.

3. There is a definite social distance between leader and the led which should be kept
down to minimum by proper human relation.

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4. A leader must seek to raise the plan of thinking to a decent social behaviour.

5. A leader must use authority as little as possible and must depend more on advice,
persuasion, suggestion, cooperation, and teamwork.

6. A leader must remain loyal to the group

7. The best measure of success of a leader is the measure of enthusiasm of subordinates

1.7 The Pioneers in Management Development

Frederick Winslow Taylor (1856-1915) – known as the father of scientific management,

he was the first to apply scientific methodology of rigorous analysis to industrial work,
which was till then, being conducted by rules of thumb and doubtful, disorganised
common sense based on experience. From a mere machine shop labourer he rose to
be the chief engineer of Midvale Steel Works.

Frank B. Gibreth (1868-1924)– he gave up a lucrative business of building construction

and consultancy and engaged himself to the task of finding out the best way of doing
various tasks by a scientific study of human motion patterns.

Mary Parker Follett (1868-1933) - a philosopher and political scientist. “Authority should
be derived from function where action and interactions, must flow out of law of
situation”. Conflict in organisation can be constructive and must be resolved by
integration.

Activity 1.1
Multiple choice. Encircle the correct answer. (2 points each).

1. Essential and unavoidable sets of activities or functions present in all purposive

actions.

A. Company
B. Manufacturer
C. Economic Plan
D. Management

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2. It is the application of principles and methodology of science to the activity of
management.

A. Scientific Methodology
B. Scientific Process
C. Scientific Management
D. Scientific Company

3. The application of activities of management to run an industry efficiently.

A. Scientific Management
B. Industrial Management
C. Company Management
D. None of the above

4. A person who became trustees of public finance put into industry and were
responsible for its efficient maintenance and profitable utilisation.

A. Managers
B. Shareholders
C. Professional Managers
D. Owners

5. A technique of looking ahead, an intellectual process of appraising the future needs

and purpose, identification and evaluation of opportunity to meet the future with
maximum effectiveness.

A. Planning
B. Method
C. Initiatives
D. All of the above

6. Orderly arrangement of group effort to achieve the management of objective.

A. Committee
B. Unity
C. Coordination
D. Teamwork

7. A mere collection of individual or a team.

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A. Committee
B. Unity
C. Coordination
D. Teamwork

8. The capacity of a group to pursue consistently a common purpose.

A. Motivation
B. Morale
C. Teamwork
D. Unity

9. Can be seen as energy mobilisation

A. Motivation
B. Morale
C. Teamwork
D. Unity

10. Integrated and synchronised expression of group efforts

A. Morale
B. Leadership
C. Management
D. Teamwork

Activity 1.2
True or false (2 points each number).
Write “TRUE” if the statement is correct, otherwise write “FALSE”.

______ 1. The leader, as the originator of action is not equal to others in the group

______ 2. A leader is dependent on the member‟s advices

______ 3. There is a definite social distance between leader and the led which should
be kept down to minimum by proper human relation.

______ 4. It is okay for leaders to be bossy with his subordinates

______ 5. Frank B. Gibreth is the father of scientific management

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______ 6. Committee provides group participation in decision making

______ 7. Function of management can be visualised as planning, coordination,

motivation and morale.

______ 8. Mary Parker Follett said authority should be derived from function where
action and interactions, must flow out of law of situation

______ 9. Physical coordination seeks to harmonise and integrate the constructive

thought of the people engaged with the aim of unity of action.

______ 10. Psychological coordination means scheduling and arranging different input
parameters to interact in a harmonious manner in a specified time and place.

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