MODERN CONCEPT OF
MANAGEMENT
“Management is art of getting things done through people.”
Management is that field of human behavior in which managers
plan, organize, staff, direct, and control human, financial
resources in an organized group effort in order to achieve
desired individual and group objectives with optimum efficiency
and effectiveness.
MAN
MACHINE
MONEY
Overview of Management:
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In the past, management was not considered
as an important part of development. With
industrial revolution during 17th and 18th
century, several economists expressed their
‘concepts and function of management’. Only
in 19th century, management became the
separate field of study because business
organization faced various problems
regarding labour efficiency and wage
payment system. In search of solution of
these problems, people began to recognize
management as a separate field of study.
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Management thought developed gradually, from past to present and passed through various distinct
phases.
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1. The a classical theory. It mainly consists of 3 theories
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- Bureaucratic theory.
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- Scientific management theory
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- Administrative theory.
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Concerned with production of efficiency and productivity through the one best way. Scientific method
should be used to define the best way. There should be standardization.
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2. The neoclassical theory
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- Human classical theory
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- Behavioral theory.
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Concerned with importance of human element in management, the theory emphasizes importance of
individual within the organization. According to human relation, theory productivity is not only technical
but also a social phenomenon. Workers' attitude govern productivity. Workers are motivated by social
need. They respond to pressures of informal work groups. Money is not the only motivator. Workers are
social and they advocated that people are different than machines.
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3. Modern organizations theory (The system theory and contingency theory)
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• The system theory- concerned with total picture of interdependence and environmental influences.
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• contingency theory concerned with inquires of each situation for managerial practice
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The modern organizational theory is regarded as recent development in management theory. They
represent integrative approach to management. There is no one best way of doing things under all
conditions. Methods and techniques which are highly effective in one situation may not work in other
situations. Situation plays an important role in application of management function. Functions are
universal but their application is situational. Management takes a situational approach.
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IMPORTANCE OF MANAGEMENT
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1) Acquisition and utilization of resources
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Management performs efficient acquisition effective development and utilization and proper coordination of resources.
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2) Environmental adaptation.
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Management adopts organization to changing environmental forces.
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3) Goal achievement
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Management achieves goals by balancing the requirement of jobs and people.
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4) Problem solving.
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Management solves organizational problems. It identifies and evaluates various alternatives and choose appropriate course of action.
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5) Performance control.
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Management measures and evaluates the actual performance.
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6) Social responsibility
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Management anticipate and act before hand to social expectations.
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FUNCTION OF MANAGEMENT
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1. Planning
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2. Organizing
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3. Staffing
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4. Leading
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5. Controlling
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1. Planning
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Planning is setting goals and deciding how best to achieve them. Planning is predetermining future. Planning is deciding in advance
about what to do how to do it when to do it and who is to do it.
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2. Organizing
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Organizing is establishing structure. It includes grouping tasks, producing authority – responsibility structures creating channel of
communication and creating coordinating mechanism.
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3. Staffing
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Staffing is hiring and assigning people to carry out tasks. It is filling and keeping filled positions in the organization structure. It is human
resource management.
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4. Leading
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Leading is influencing, communicating and motivating people to perform tasks for goal achievement.
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5. Controlling
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Controlling is maintaining, comparing and correcting organizational performance toward goal achievement
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EMERGING CHALLENGES FOR MANAGEMENT
1. Globalilization: Managers need to think globally and act locally.
2. Technology: The new economy will base on digital revolution. The
development in information technology will provide greater access to
management. Management will need to manage changing technology
effectively.
3. Quality: Quality assurance is getting important.
4. Social responsibility: Management will pursue long term goals that are
good for society.
5. Empowerment: To empower worker is a challenge to management.
6. Human resource management: Management needs to deal with
diversified work force, requires visionary leadership on the part of
management.
7. Organization design: Organization will be lean flat and less hierarchical
8. Cultural sensitivity: Cultural value will change cross cultural influences.
Organizations are emerging as cultural systems.
9. Change management:
10. Manager will face the challenge of managing change. They will need to
aware specific changes and their likely impact on the practice of
management.
11. Learning organization: Management needs to create learning
environment. Organization of future will be predominantly knowledge
based.
ADMINISTRATION &
ORGANIZATION
The Dimensions of Management
 Management Is an Organ—It Exists Only in
Contemplation of Performance—The Three Primary Tasks:
Economic Performance; Making Work Productive and the
Worker Achieving; Managing Social Impacts and Social
Responsibilities—
 The
Time Dimensions — Administration and
Entrepreneurship—Efficiency
and
Effectiveness—
Optimization and Innovation—
 The Specific
Work of Management: Managing
Managers—Focus on Tasks
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Administration:
According to Simon, “Administration can be
defined as the activities of groups cooperating
to accomplish common goals” (Simon,
Smithburg,Thompson, 1950).
 As can be seen, administration is defined as
cooperative human action or cooperative group
behavior. The word, “cooperative”, is the first key
element in this definition. Human activity is
cooperative if it has the effects that would be absent
if the cooperation did not take place. For example, for
a moment let us suppose our common goal is to
educate a group of individuals in the field of public
administration. Having the specific goal in mind, a
number of individuals who are specialists in the field
of public administration have been brought together.
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In another definition, administration is defined as “an activity or
process mainly concerned with the means for carrying out
prescribed ends.” (Pfiffner and Presthus,1967). In this definition the
concept of goal accomplishment again plays an important role. As the
definition clearly indicates, administration is mainly concerned with the
means that are necessary for the accomplishment of pre-determined goals.
In this it seems that a new element is introduced, that is the concept of
means. The means is the way by which something is done or obtained.
When a group of individuals are working for the accomplishment of a
common goal, a division of labor is necessary, so that each individual will
know what to do. Or there is the need for an authority structure to
control and coordinate the activities of the individuals involved. Division of
labor and authority structure are means – there are many others- for
carrying out prescribed ends. In this sense, administration is an activity
mainly concerned with the means. For that matter cooperation and any
other method which will insure cooperative activity is a means as well.
According to Waldo “ administration is a type of cooperative
human effort that has a high degree of rationality.” (Waldo,1955).
As you can see cooperative human activity is again emphasized and a new
concept of “rational action” is introduced. Rational action is here defined
as action correctly calculated to realize given desired goals with minimum
loss to the realization of other desired goals.
Organizations:
According to one of the prominent scholars, “ organizations
are social units (or human groupings) deliberately
constructed and reconstructed to seek specific goals”.
(Etzioni, 1964 ). In this definition organizations are seen as
social units or human groupings, which implies that the basic
elements of organizations are individuals. Thus the first key
element of this definition is the fact that organizations are
groupings of individuals. Another basic element is deliberate
construction that is, organizations are deliberately constructed
for accomplishing specific objectives. The third element is of
course the concept of goals, organizations are established for
the accomplishment of certain goals.
“collectivities that have been established for the pursuit of
relatively specific objectives on a more or less
continuous basis.” (Scott, 1964).
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“ social units or human groupings
deliberately established for the
accomplishment of specific
 objectives.” Ministries , corporations,
universities, hospitals, schools,
political parties,
 prisons, associations etc. are organizations
in this sense.
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Formal organization:
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One of the important characteristics of formal organization is the fact that
their
members are selected on the basis of their individual qualifications. Since
each
organization has pre-determined, specific goals to accomplish, and the
accomplishment of goals requires a variety of activities, the individuals who
are going
to contribute their mental and/or physical activities have to be selected in
view of
the activities necessary for goal accomplishment. This selection has to be
based on
the qualifications of the individuals in view of the goals to be accomplished.
According to the kind of activities necessary for accomplishing the goal,
the members
will be selected by the organization.
Organization as system:
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In its broadest and most abstract sense, the concept of “organization” is almost
synonymous with that of system. In this understanding, the concept of organization
refers to any situation where there are a number of elements which are bound
together or stand in some relation to one another and represent the order or
structure, and that structure as a whole fulfills some sort of a function. In this sense
we can talk about the organization of a building, of a machine, of a book, of an ethnic
group, of a market, of a galaxy, of a planet etc. They all have some kind of
organization or some ordered relationship among a number of elements.
Organization as a system has the following characteristics: (a). There are a number of
elements; (b). The elements of a system are interrelated among themselves in an
orderly or ordered manner. This means that their relationship is not chaotic or
completely random. There is some kind of pattern in these relationships so that a
change in one element of the system leads to predictable changes in other elements.
(c). A system may be related to some other systems or be a part of some larger
systems.
Organization v/s Administration
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The concepts of administration and organization are closely related to each other; in a sense the
object of both organization and administration is the control of human and other resources in
the accomplishment of pre-determined objectives. Organization and administration exist together,
and they are not separable. If organization is regarded as structure, then administration becomes
a process; it can be argued that if organization is concerned with the formal aspects of
administration, administration is a directing process carried on within the organizational setting. It
is claimed that such a conceptualisation, to a certain extent, exaggerates the static properties of
organizations. The fact is that organizations are subject to change and they are always changing.
When the definition of organization is taken into consideration, it is obvious that it implies a
certain stability. The term “administration” is sometimes used in the meaning of “organization” as
shown in the following examples in Turkish and English language,
--Every action of the administration is subject to judicial review.
--Food and Drug Administration.
The terms “administration” and “management”, are generally used synonymously, and meaning the
same thing. But the term “management” is generally identified with private sector organizations
and used with reference to such organizations. The term, “administration” on the other hand, is
used with reference to public organizations. Such a usage should not give one the impression that
managing a private organization is completely different from administering a public organization.
Public or private organizations are social units established for accomplishing pre-determined
objectives, and in accomplishing their objectives, they both employ the very same techniques and
processes. In this sense, administration is a universal phenomenon. But this does not necessarily
mean that there are no differences between public and private organizations with regard to their
administration.
THE ADMINISTRATION OF
AN ORGANIZATION
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THE RELATIONSHIP BETWEEN AN ORGANISATION AND ITS ENVIRONMENT:
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Technological Conditions.
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Legal conditions.
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Political conditions.
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Economic conditions.
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Demographic conditions.
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Ecological conditions.
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CONSIDERATION OF GOALS
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“Official” and “Operative” goals.
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Multiplicity of goals.
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ORGANISATIONAL STRUCTURE
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Departmentalisation.
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Job Specification.
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Job description.
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Structural levels.
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Line and staff.
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AUTHORITY RELATIONSHIP (AUTHORITY STRUCTURE).
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Scalar Principle.
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Unity of Command.
Theory of Organization:
Division of labor.
 The scalar and functional processes.
 Structure.
 Span of control.
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Importance of Management
“Companies fail when they become
complacent and imagine that they will
always be successful. So we are always
challenging ourselves. Even the most
successful companies must constantly
reinvent themselves.
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--Bill Gates
Chairman and Chief Software Architect
Microsoft
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The Business World Today
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Constant change!
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Technology
Society
Environment
Competition
Diversity
What is Management?

The process of deciding how best to use
a business’s resources to produce good
or provide services
◦ Employees
◦ Equipment
◦ Money
What is Management?
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Auto industry managers
◦ Assembly line: schedule work
shifts, supervise assembly of
vehicles
◦ Engineering: develop new
product features, enforce
safety standards
◦ General: plan for the future
◦ All organizations need
managers!
Levels of Management
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Senior management
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Establishes the goal/objectives of the business
Decides how to use the company’s resources
Not involved in the day-to-day problems
Set the direction the company will follow
Chairperson of the company’s board of
directors, CEO, COO, senior vice presidents
Levels of Management
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Middle management
◦ Responsible for meeting the goals that senior
management sets
◦ Sets goals for specific areas of the business
◦ Decides which employees in each area must
do to meet goals
◦ Department heads, district sales managers
Levels of Management
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Supervisory management
◦ Make sure the day-to-day
operations of the business run
smoothly
◦ Responsible for the people who
physically produce the company's
products or services
◦ Forepersons, crew leaders, store
managers
The Management Pyramid