2 Evolution of Management Practices
2 Evolution of Management Practices
MANAGEMENT
PRACTICES
MANAGEMENT
Management is the attainment of organizational goals in an
effective and efficient manner through planning, organizing,
staffing, directing and controlling organizational resources.
Organizational resources include men(human beings),
money, machines and materials.
use of people and other resources to accomplish objectives.
(Louis E Boone & David L Kurtz)
act of getting things done through people (Mary Parker Follet)
art of knowing what you want to do in the best and
cheapest way. (Frederick Taylor )
Characteristics
Management is
- a distinct process.
- an organized activity
- both a science and an art.
- a group activity
Management principles are universal in
nature
Management:
- integrates human and other resources.
- aims at the accomplishment of
predetermined objectives.
Concept of management-
Raymond G. Leon
Management by
- Communication
- Systems
- Results
- Participation
- Motivation
- Exception
- Objectives
FEATURES
Management involves five functions:
• planning
• organizing
• staffing
• directing
• controlling
These functions are organised to achieve
organisational goals.
Management involves effective and efficient
use of resources
PLANNING
• Planning is determining the objectives and
formulating the methods to achieve them. It is
more simply said than done. A job well
planned is half done. During planning one
needs to ask oneself the following:
• What am I trying to accomplish i.e. what is my
objective?
• What resources do I have and do I need to
accomplish the same?
• What are the methods and means to achieve
the objectives?
• Is this the optimal path?
Principles of Planning
take time to plan
planning can be top to down or bottom
to top
involve
and communicate with all those
concerned
plans must be flexible and dynamic
evaluate and revise
Steps in Planning
1. Determining the goals or objectives for the
entire organization.
2. Making assumptions on various elements of
the environment.
3. To decide the planning period.
4. Examine alternative courses of actions.
5. Evaluating the alternatives.
6. Real point of decision making
7. To make derivative plans.
Process of Organizing
Determine what is to be done/ Division of
Work
Assign Tasks: Departmentalization
Link Departments: Hierarchy Development
Decide how much Authority to Designate/
Authority, Responsibility and Delegation
Decide the Levels at which Decisions are to be
made / Centralization vs. Decentralization
Decide how to Achieve Coordination
Techniques for achieving
coordination.
coordination by rules or procedures
coordination by targets or goals:
coordination through the hierarchy
coordination through departmentalization
using a staff assistant for coordination:
using a liaison for coordination:
using a committee for coordination
using independent integrators for coordination:
coordination through mutual adjustment:
DIRECTING/LEADING
CONCEPTUAL
HUMAN
TECHNI
CAL
TECHNICAL SKILLS
Interpersonal role
Informational role
Decisional role
INTERPERSONAL ROLE
Practical
lessons from scientific
management
Make results-based compensation a performance
incentive
Carefully design jobs with efficient work methods
Carefullyselect workers with the abilities to do
these jobs
Train workers to perform jobs to the best of their
abilities
Trainsupervisors to support workers so they can
perform jobs to the best of their abilities
Classical Management Approaches
Organizations as communities
– Mary Parker Follett
Groups and human cooperation:
Groups allow individuals to combine
their talents for a greater good
Organizationsare cooperating
“communities” of managers and
workers
Manager’s job is to help people
cooperate and achieve an integration
of interests
Behavioral
Organizations asManagement Approaches
communities
Forward-looking management insights:
Behavioral Management Approaches
Hawthorne studies
Initial study examined how economic incentives and physical
conditions affected worker output
No consistent relationship found
“Psychological factors” influenced results
Social setting and human relations
Manipulated physical work conditions to assess impact on
output
Designed to minimize the “psychological factors” of
previous experiment
Mayo and colleagues concluded: New “social setting” led
workers to do good job
Good “human relations” = higher productivity
Employee attitudes and group processes
Some things satisfied some workers but not others
People restricted output to adhere to group norms
Lessons from the Hawthorne Studies:
Social and human concerns are keys to productivity
Hawthorne effect — people who are singled out for special
attention perform as expected
Behavioral Management Approaches
Learning organizations
Organizationsthat are able to continually
learn and adapt to new circumstances
Core ingredients include:
Modern Management Foundations