The pyramids of Egypt
The great wall of China
“We cannot do today’s job with
yesterday’s methods and be in
business tomorrow”
--- Nelson Jackson
A Group of Donkeys lead by a lion can
defeat a group of lions lead by a donkey
---Socrates
Definition of Management:
Its Nature and Purpose
• Management is the process of
designing and maintaining an
environment in which individuals,
working together in groups, efficiently
accomplish selected aims.
DEFINITIONS OF MANAGEMENT
1.
F. W. Taylor: “Management is the art of knowing exactly what you want
(the men) to do, and then seeing that it is done in the best and the
cheapest way.”
2. Peter. F. Drucker: “Management is a multipurpose organ that manages
business, manages managers, and manages workers and work.”
3. Louis Allen: “Management is what a manager does.”
4. Koontz and weihrich: “ management is the process of designing and
maintaining an environment in which individuals, working together in a
group, efficiently accomplish selected goals”.
5. Finally, the term can be defined as: Management is a process of planning,
organizing, staffing, directing, and controlling human efforts to achieve
organisational objectives effectively.
MANAGEMENT IS AN ART OR SCIENCE
Managing: Science or Art?
• Managing as practice is an art; the
organized knowledge underlying the
practice may be referred to as a
science.
MANAGEMENT AS ART OR SCIENCE
Management as An Art: Art can be defined as: An art means practical know-how or skills in getting
the desired result with less efforts, less cost, and less time.
Since all main conditions of an art are satisfied with management, the conclusion is that
management is an art.
MANAGEMENT AS A SCIENCE: Science can be defined as: A science is a fact-based, critically tested
systematized body of knowledge pertaining to a specific field. The knowledge is accumulated through
study, experience and experimentation. The scientific knowledge produces impersonal results, and
it can be empirically tested and universally applied.
The conclusion is that management is not an exact science like chemistry, mathematics, biology, or
physics.
Conclusion: Management is both a science and an art. Finally, we can say that management is the
artful science – a science with an art.
NATURE OR CHARACTERISTICS OF
MANAGEMENT
1. Management is a Process
2. Abstract Phenomenon
3. Goal-oriented
4. Decision-making
5. Working with and Through People
6. Factor of Production
7. Integrated Activity
8. As Art and a Science
9. Management as a Profession
10.Management as a Universal Activity
11.Multidisciplinary Subject
Management is a Process
• A process consists of a series of
interrelated activities or steps to be
followed in a sequence and it always
restarts with the first step.
Abstract Phenomenon
• Management cannot be seen or
touched like a physical object.
• It is invisible/intangible knowledge.
• The knowledge consists of concepts,
functions, principles etc. and is used to
obtain the desired results.
Goal-oriented
• The primary task of management is
achievement of goals.
• The goals can be defined as the end
expected results that can be actualized
in the future.
• If one has nothing to achieve, there is
no need of management.
Decision-making
• Every function of management consist
of a set of decisions.
• Success of an org depends on the
quality of decisions taken by its
managers.
Working with and Through People
• A manager makes the people in an org
to work.
• He himself doesn't perform the actual
work but is responsible for leading,
motivating, directing and controlling the
efforts of people to get the desired
results.
Factor of Production
• It is the managers job to see the factors
of production are organised and
coordinated in an optimum manner to
get maximum possible results.
Integrated activity
• Management integrates the activities and
functions of various groups and departments.
• Integration is necessary to ensure that all
people, groups, and departments work
consciously and actively for the same
purpose.
• If they are not integrated the effort get
neutralized, and consequently fail to achieve
the objectives.
As art and a science
• Management is both as art and a
science.
• An art concerns with practical use of
managerial knowledge and a science
concerns with systematic development
of knowledge.
As a profession
• A profession is specialized knowledge
which is based on intensive study,
experience and observation, and is
used to serve others for fees.
• Management is considered an emerging
profession moving towards professional
status.
Management as a universal activity
• Management is universal with reference
to fundamentals- concepts, processes,
principles, and functions.
• But it is not considered universal in
practice.
Multi-disciplinary subject
• Management has enriched its
knowledge by borrowing concepts,
principles, and theories from disciplines
like economics, marketing, sociology,
psychology, etc.
• Management is a combination of all
these subjects or disciplines.
Other characteristics
•
•
•
•
•
•
•
•
•
•
It is a system of authority
It is a field of study or a discipline
It is a multipurpose organ
It follows a dynamic approach
It is essentially a leadership activity
It is an organised activity
It is a relationship among resources
It is a social system
It is what a manager does, but not what a manager is
It is a group of functions, and not a group of people
The Functions of Management
• The five managerial functions around
which managerial knowledge are
organized: planning, organizing,
staffing, directing, controlling.
MANAGEMENT PROCESS OR FUNCTIONS OF
MANAGEMENT
1.Planning (including forecasting and decision-making)
2.Organizing (including delegating)
3.Staffing (including manpower planning, recruitment and selection, training and
development, etc.)
4.Directing (including motivation, leadership, communication, and supervision) Also
called coordination because coordination is the result of direction
5.Controlling (including budgeting and reporting)
Levels in management
Top level management
Board of directors
Chairman
Chief executive
Middle level management
Departmental heads
Divisional heads
Sectional officers
Lower level management
Senior supervisors
Functional supervisors
Frontline supervisors
Functions of top level management
•
•
•
•
•
•
•
•
•
•
Analyze and evaluate the business environment and determine the
firms response to it
Determine the objectives
Formulate policies, rules, procedures, budget.
Decide the structure of the org
Deal with financial and technological issues
Integrate the efforts of departmental heads
Motivate emp and boost their morale
Build and maintain healthy public relations, and represent the unit to
the outside world ( stake holders/public)
Guide , supervise, review and control middle level executives
Strategic decisions such as contracts, mergers, acquisitions.
Functions of middle level management
• Carry out operations according to the plan formulated by top
level
• Make arrangement for necessary resources and facilities for the
department
• Coordinate and control efforts of people working in their
department
• Serve the link b/w the top and operating level
• Recruit , select and train the supervisory personnel
• Motivate emp working at lower level
• Collect and analyze necessary information and prepare report
for top mgmt.
Functions of lower level management
• Implement operational plans to carry out day- to – day activities
effectively.
• Deal with recruitment and training of workers
• Communicate problems with higher authorities and seek for
suitable soln.
• Report the performance of workers to higher authority
• Manage necessary materials and facilitate for workers
• Create and maintain healthy work climate
• Maintain discipline and order at work place
• Supervise and control activities of workers/salesmen
Main Purpose of the Managers’ Job
• To achieve and exceed the Assigned
objective by ensuring that each and
every member of the team achieves
and / or surpasses his / her respective
objective.
A Good Manager has…..
… the capability to get people of
ordinary ability to perform in an
extraordinary manner!
5 Differences
Worker
• Works alone
• Does the work
• Like a player in the
team
• Is lead and Managed
• Responsibility:
Single
Manager
• Works with others
• Develops
people/customers
• Like a coach and a
counsel; Pitches in as
player when needed.
• Is the Leader/Manager
according to the
condition
• Responsibility : Various
Key Responsibilities
 Ensuring achievement of assigned Team’s and individual team members’
objectives
 Decision Making
 Ensuring his objectives achievement covering up deficit of anyone in his
team.
 Focus on Brands / New Products
 Distribution Channel Management
 Timely Reporting and Feedback
 Developing Team Members
 Market Development
 Market Intelligence
 Strong Customer Focus
 Planning, Monitoring & Controlling
 Appraising &Reviewing
 Necessary course corrections
A Good Manager will…..
…always succeed in getting more output
and better results from his team members
…and they will deliver this willingly!
Managers : Ineffective v/s
Effective
Ineffective Manager
• Appeaser
• Bully
• Caddy
• Despondent
• Excavator
• Favoritism
• Gutter Inspector
• Hindsight
Effective Manager
• Advisor
• Benefactor
• Cheer Leader
• Decisive
• Example Setter
• Fair
• Generous
• Honest
Managers : Ineffective v/s
Effective
•
•
•
•
•
•
•
•
•
Insecure
Jealous
Know-all
Loner
Manipulator
Nag
Opinionated
Pillion Rider
Quashes new ideas
• Innovator
• Judicious
Knowledge
Resource
• Leader
• Motivator
• Negotiator
• Open minded
• Perseverant
• Quality Conscious
Managers : Ineffective v/s
Effective
•
•
•
•
•
•
•
•
Reactive
Subjective
Trumpet Blower
Unfair
Vengeful
Whiner
Excuse Master
Yesterday’s hero
•
•
•
•
•
•
•
•
Receptive
Strategist
Transparent
Understanding
Vibrant
Winner’s Mind Set
Experimenter
Youthful
Managerial roles
• Today’s managers, irrespective of the nature of job or
place in hierarchy in the org perform more or less
similar functions such as planning, organizing,
staffing, directing and controlling to achieve org
goals.
• Performing functions indicates managerial role.
• Henry mintzberg has identified ten roles in 3 sets of
functions that a manager has to perform, They are:
– 3 interpersonal roles
– 3 informational roles
– 4 decision roles
The Managerial Roles Approach
(Mintzberg)
Interpersonal
Roles
• Figurehead
• Leader
• Liaison
Informational
Roles
• Monitor
• Disseminator
• Spokesperson
Decisional
Roles
• Entrepreneur
• Disturbance
handler
• Resource
Allocator
• Negotiator
Interpersonal Roles
• Figure head
– A manager performs duties of legal or ceremonial nature, such as
welcoming visitors, giving testimonials to emp and performing other
similar roles.
• Leader
– A manager provides a dynamic leadership to his subordinates by
guiding, instructing and motivating them and maintaining healthy
relationships with them.
• Liaison
– Performance of any org depends on the relationship among its
different departments and branches.
– In this role, manager establishes horizontal contacts among various
departments and their activities.
Informational Roles
• Monitor
– Manager receives and analyzes info from i/o the org and
transmit the same to appropriate people
• Disseminator
– He disseminates the info by mail, phone, meeting and other
suitable media.
• Spokesperson
– He acts as a representative of the org to transmit the info to
outside world. He plays the role of a spokesperson with
trade unions, media, govt officials, and others.
Decisional Roles
•
Entrepreneur
–
•
Disturbance handler
–
•
He acts as a troubleshooter and provides speedy soln in a crisis. In case of an
accident, breakdown of machines, dispute or conflict among emp, strike, lockout, loss
of valuable customers, failure of contracts etc.
Resource Allocator
–
•
A manager assumes the role of an entrepreneur when he initiates changes in the org to
bring about innovation and improvement in the existing methods or tech.
He has to decide on the allocation of the resources in such a way that every individual
or dept gets adequate resources.
Negotiator
–
–
He is often required to negotiate with parties within and outside the org to arrive at an
amicable and profitable settlement.
He negotiates with subordinate for better commitment for loyalty, with peers for
coordination and integration, with workers and trade unions for work related conditions,
with govt facilities, with other parties for extending necessary support.
Managerial Functions at Different
Organizational Levels
• All managers carry out managerial
functions, but the time spent for each
function may differ.
Fig. 1-1 Time Spent in Carrying Out
Managerial Functions
Managerial Skills and the Organizational
Hierarchy
•
•
•
•
The four skills required of
administrators:
Technical skills
Human skills
Conceptual skills
Design skills
Fig. 1-2 Skills and Management Levels
Essential managerial skills
•
•
•
•
•
•
•
•
•
•
•
•
•
Cultural flexibility
Communication skills
HRD skills
Creativity
Self management for learning
Managing time and stress
Motivating and influencing others
Team building
Rational decision making
Creative problem solving
Competitiveness and control skills
Managing conflict
Delegating
How old is the practice of
management?
• The practices are as old as human
civilization
• But study and research started about
100 years ago
Bureaucracy
Classical school
of thought
Scientific management
Administrative theory
The Evolution of Management Thought
& Patterns of Management Analysis
• Frederick Taylor and Scientific
Management
• Fayol, the Father of Modern Operational
Management Theory
• Elton Mayo and F. Roethlisberger and
the Hawthorne Studies
• Recent Contributors to Management
Thought, including Peter Drucker
Bureaucracy by Max Weber
• Max Weber (18641920)
• German sociologist
Characteristics of bureaucracy
•
•
•
•
•
Jobs are divided into specialized tasks
Standardized process-rigorous rules
Well defined hierarchy
Life long employment
Career progression based on
qualifications
• Centralized power
Scientific Management
 Frederick
Winslow
Taylor(1856-1915)
 1878- joined as worker at
Midvale steel works.
 Graduated in science and
engineering
through
evening study
 1898- joined Bethlehem
steel
company
as
Engineer
Taylor's Principles of
Scientific Management
1. Replacing rules of thumb with science (organized
knowledge)
2. Obtaining harmony in group action, rather than
discord
3. Achieving cooperation of human beings, rather
than chaotic individualism
4. Working for maximum output, rather than restricted
output
5. Developing all workers to the fullest extent possible
for their own and their company's highest
prosperity
Scientific Management
Studied the work processes and introduced
One best way to do the job
Differential wages linked to productivity
Careful selection and training of workers
Division of labour and distribution of work between
management and workers
Harmonious relationships between management and
workers
Specialization and division of labour
Time and motion study
Overall objective- efficiency of the labour
Limitations of scientific
management
Impersonal approach
Emphasis only on material needs
Monotonous and boring jobs
Exploitation device
Anti democratic
Harsh and difficult to perform
Administrative theory by
Henry Fayol
• Henry Fayol(18411925)
• French mining
engineer
Administrative theory
Industrial activities are classified into six
categories
Technical
Commercial
Financial
Accounting
Security
Managerial
Administrative theory
14 PRINCIPLES OF ADMINISTRATIVE
THEORY
Division of work: specialization increases output
Authority: managers should have right to give orders and own
responsibility
Discipline: employees must follow the rules
Unity of command: every employee should receive orders from only one
boss
Unity of direction: there should be single plan of action to guide workers
Subordination of individual interests to the general interests
Remuneration: workers must be paid a fair wages for their work
Centralization: major decisions should be taken at the top level
Scalar chain: Authority should run from top to bottom in proper channel
Order: there should be a place for everything and every thing should be in
its place
Equity: managers should be kind and fair to their workers
Stability of the tenure: workers must have job stability
Initiative: employees should be allowed to use creativity and take initiatives
Esprit de corps: promoting team work for productivity
Neo classical theory-Human
relations
• Elton Mayo (18801949)
• Harvard University
Elton Mayo and F. Roethlisberger and
the Hawthorne Studies.
• In general, the improvement in productivity
was due to such social factors as morale,
satisfactory interrelationships between
members of a work group (a "sense of
belonging"), and effective management—a
kind of managing that would understand
human behavior, especially group behavior,
and serve it through such interpersonal skills
as motivating, counseling, leading, and
communicating.
Human relations theory
Phase-1-Illumination experiments (in
1924)
At the Hawthorne plant of western electric
company
Increasing the light at work place did
increase productivity but
control group also produced more
Even when lighting reduced; productivity
went up on a moon light day.
Human relations theory
Relay assembly test: phase II (in 1925)
The experimental group of employees were given
freedom to fix work schedules
Six breaks of five minutes per shift were allowed
Work day and week were shortened
Work was simplified
Financial incentives for increased production
Friendly supervision
These kinds of special attention and treatment
enhanced productivity ( i.e. Hawthorne Effect)
Human relations theory
Interviewing programme: phase III (in
1928)
Interviewed 21000 employees to find the
reasons for increased productivity
Informal work groups and their productivity
norms were recognized as the main causes for
productivity.
Human relations theory
•
•
•
•
•
•
•
The group norms were
Don’t turn out too much work
Don’t turn out too little work
Don’t tell supervisors anything that would harm a colleague
Don’t be too officious-rather follow group norms.
Ultimate finding of all experiments
PEOPLE ARE NOT MERELY THE ECONOMIC BEINGS
RATHER THEY ARE SOCIAL BEINGS
Peter Drucker
 The greatest management
thinker of 20th Century
 His major contribution to
management is
 Management by Objectives
MBO
 Jointly setting objectives by the
managers and employees
 Periodical evaluation of
performance
 Provide feedback to the
employee
 Reward according to the
results.
Contingency or situational approach
• Managerial practice depends on
circumstances ( contingency or situation).
• Contingency theory recognizes the influence
of given soln on org behavior patterns.
• Situational factors:
–
–
–
–
Organization size
Routineness of task technology
Environmental uncertainty
Individual differences
Need for contingency approach for
management
•
•
•
•
•
•
•
Cultural differences
Customer diversity
Emp diversity
Legal regulations
Technology
Org structure
environment
Systems Approach to Management
• Systems concepts have broad
applicability.
• Systems have boundaries, but they also
interact with the external environment;
that means org are open systems.
• The enterprise receives inputs,
transforms them and exports the
outputs to the environment.
Input –output model
Reengineering the system
Inputs
Transformation
process
External
environment
outputs
Fig. 1-6 Systems Approach to Management
Total quality management approach
• Focuses on providing dependable,
satisfying products and services that are
fit for use as well as conforming to
quality requirements.
• The general concepts are continuous
improvement, attention to details, team
work and quality education.
Learning organizations
• “ Learning org are org where people continually expand their
capacity to create the results they truly desire, where new and
expansive patterns of thinking are nurtured, where collective
aspiration is set free, and where people are continually learning
to see the whole world together”. - Peter Senge
• Peter Senge explains the five disciplines of learning org they
are:
–
–
–
–
–
Systems thinking
Personal mastery
Mental models
Shared vision
Team learning
1.Systems
Thinking
5.Team
Learning
2.Personal
Mastery
The
Learning
Organization
Focus
3.Mental
4.Shared
Models
Vision
A Learning Organization
SYSTEMS THINKING: Integrating all the functions in an organization into a
cohesive structure.
PERSONAL MASTERY: Personal and professional development that is in
sync with the organization’s goals.
MENTAL MODELS: Internalized frameworks and generalizations of how an
organization works and responds to its environment.
SHARED VISION: Developing commitment using “shared pictures of the
future”; Everyone working for a common, agreed upon future.
TEAM LEARNING: People working as teams and therefore learning as teams.
Benefits of learning org
• To workers:
– Motivate workers
– Can become more creative
and innovative
– Knowledge sharing
– Interdependency increases
– Social interaction improves
• Organizational
benefits:
– Traditional practices are
broken
– Improvement in customer
relations
– Can adapt to changes
effectively in terms of
technology , market
improvement and facing
competitors.
– Org pools up with expertise
and knowledge and helps in
problem solving.
Social responsibility of managers
• It refers to such decisions and activities
of a manager which provide for the
welfare of the society as a whole along
with the earning of profit for the firm.
• Manager has to function to discharge
social responsibility.
Social responsibility
• “ The objective concern of business firm
for the welfare of the society and it
involves following by the management
of such policies, making of such
decisions or following of such lines of
action which are desirable in terms of
objectives and values of our society”.
The theme of social responsibility is
that:
• A business firm should not ignore the
welfare of the society.
• Policies and decisions of the business
enterprise, should focus on values of
society.
• Earning profit by honoring values of
society and finally assist the promotions
of welfare of the society.
Social responsibility
 Meaning
 Conscious effort to operate in a
manner that creates a win-win
situation for all stake holders.
 Who are the stake holders in a
business
 Investors
 Customers
 Suppliers
 Employees
 The government
 The community
 Business competitors
What does the stake holders
want?
 Investor-profit
 Employees-better salary and
service conditions
 State-taxes + legal compliance
 Customer – best goods and
services at competitive price
 Supplier- better and dependable
treatment
 Competitor- Healthy competition
 Community- accommodative
policies/practices
 Weaker section- providing
opportunity for growth
Levels of social responsibility
From worst to best
• Social obstruction
• Social obligation
• Social reaction
• Social involvement
Levels of social responsibility
 Social obstruction
Deliberately
perform
unethical or
illegal business
practices.
Levels of social responsibility
 Social obligation
Meeting only
the minimum
legal
requirements
Levels of social responsibility
 Social reaction
Responding
positively to
social requests
Levels of social responsibility
 Social involvement
Voluntary initiate
socially
responsible acts
End of Module 1
Thank You