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Unit 1

  2. Objectives of the chapter To introduce the concept and definitions of management. Present the characteristics of management. Understand the functions of management. Understand the functional areas of management. Distinguish administration and management. Introduce the role of management. Present the levels of management.
  3. What is Management???
  4. Definition: Management is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively.
  5. Effectiveness Efficiency Getting work done through others Management is…
  6. Efficiency: getting the most output from the least input Effectiveness: completing activities so that the organization’s goals are attained.
  7. From the view point of economics, sociology, psychology, and statistics management has different meanings. There are four views of management. (1) Management is a process. (2) Management is a discipline. (3) Management is a human activity. (4) Management is a career.
  8. COMPANY is well managed is miss-managed A process is defined as systematic method of handling activities.
  9. These statements imply that management is some type of work or set of activities, these activities sometimes performed quite well and some times not so well. These statements imply that management is a process involving certain functions and activities that managers perform.
  10. Discipline refers to the field of study having well defined concepts and principles. Classifying management as discipline implies that it is an accumulated body of knowledge that can be learnt. Management is a subject with principles and concepts. The purpose of studying management is to learn how to apply these principles and concepts at right circumstances at the right time to produce desired result.
  11. Management is a human activity If you say that “He is the best manager I have worked for” you are referring to the people who guide, direct and thus manage organizations Managers are responsible for seeing that work gets done in organization.
  12. Today management is developed as a career focused on specialization. Marketing management, finance management, personal management, Industrial management, production management, quality management are some of the specializations in management. Specialists are appointed at various positions of the organizational hierarchy. Hence, management is career. Management is a career.
  13. CHARACTERISTICS OF MANAGEMENT Management is a continuous process Management is an art as well as science Management aims at achieving predetermined objectives Management is a factor of production Management is decision-making Universal application Management is needed at all levels Management aims at maximum profit Dynamic Management as a career Management is a profession Management is a discipline
  14. Management is a continuous process The process of management consists of planning, organizing, directing and controlling the resources to ensure that resources are used to the best advantages of the organization. A single function alone cannot produce the desired results. Management involves continuous planning, organizing, directing and controlling.
  15. planning organizing directing controlling organization
  16. Management is an art as well as science Management is an art in the sense of possessing managing skill by a person. Management is science because certain principles, laws are developed which are applicable in place where group activities are coordinated.
  17. Management aims at achieving predetermined objectives All organizations have objectives that are laid down. Every managerial activity results in achievement of these predetermined objectives.
  18. Management is a factor of production An enterprise produce goods or services using resources like land, labour, capital, machines etc. These resources themselves cannot realize the organizations goals The goals are achieved when these are effectively coordinated by the entrepreneur. In case of small enterprises an individual can do such type of job where as in large enterprises the coordination job is done by management. Therefore, management is a factor of production.
  19. Management is decision-making Decision-making is selecting the best among alternative courses. Decision-making is an important function of a manager. Whatever a manager does, he does it by making decisions. The success or failure of an organization depends upon the quality of decision. A manager must make a right decision at right time.
  20. Universal application: The principles and concepts of management are applicable to every type of industry. The practice of management is different from one organization to another according to their nature
  21. Management is needed at all levels The functions of management are common to all levels of organization. The functions of planning, organizing, directing, controlling, decision-making are performed by top level as well as lower level supervisors.
  22. Management aims at maximum profit The resources are properly utilized to maximize profit. Maximizing the profit is the economic function of a manager.
  23. Dynamic Management is not static. Over a period of time new principles, concepts and techniques are developed and adopted by management. Management is changed accordingly to the social change.
  24. Management as a career Today management is developed as a career focused on specialization. Marketing management finance management personal management industrial management production management quality management are some of the specializations in management
  25. Management is a profession Management is a profession because it possesses the qualities of a profession. The knowledge is imported and transferred. The established principles of management are applied in practice.
  26. Management is a discipline The purpose of studying management is to learn how to apply these principles and concepts at right circumstances, at the right time to produce desired result.
  27. scope of management The scope of management is very wide but can be combined into three distinct areas. I. An economic resource II. A system of authority
  28. Management as an Economic Resource In modern organizations, the effective use of five M’s of management depends to a great extent on the quality of management . Money Materials Manpower Machinery & Methods
  29. Management as a system of authority Management is the rule making and rule enforcing body. It Is bound together by a web of relationships between superiors and subordinates. People are bound by authority relationship rather than any kind of relationship. It basically means that manager working at top levels enjoy more authority than people working at lower levels
  30. For example in an engineering college Top Level management Board of Directors, Principal.. Middle Level management HOD’s of various Branches Lower Level management Lecturers, Assistant Professors, Professors
  31. Functional Areas of Management Forecasting Planning Organizing Staffing Directing and motivating Controlling Co-ordinating Communication Leadership Decision Making
  32. Forecasting Forecasting is nothing but the estimation of future events. For a business organization forecasting is done with respect to its future sales since majority of the activities depend upon it. Forecasting involves not only estimation of quantity of future sales but also as to when it should be available, where it should be available and what quality level.
  33. Planning After forecasting the future sales demand, it is now time to plan. “Planning is nothing but thinking before doing” In a business organization planning is all about deciding what, where, when, why, who, and how each activity should be done.
  34. Organizing When planning is done, the next step is to arrange money, materials, machinery, men etc Determining all activities required to achieve company objectives. Division or grouping of all these activities. Selecting people for particular jobs and defining their responsibilities. Giving people enough authority to carry out their responsibility.
  35. staffing In order to run the organization people are required. Staffing means filling up the positions in the organization by appointing competent and qualified persons for jobs. Staffing involves Recruitment selection placement Training developing system for salary structure evaluating employee performance
  36. Directing After getting recruited to the company, the employees need direction from their bosses. Directing involves guiding and supervising the subordinates in their activities. Directing does not mean only giving orders but also involves motivating and helping the subordinates in their work.
  37. controlling After giving direction and motivation to employees, it is necessary to control their work. This is essential in order to ensure that every activity is carried out according to the plan Controlling means: Setting standards Measuring actual performance Taking corrective action if necessary Examinations are required on a periodic basis to ensure that all things are proceeding as per plan.
  38. Co-ordinating Organization Different departments Different level of management Sub-Ordinates Individual effort of all workers
  39. Co-ordinating can be achieved with the help of following tools 1. Clear cut objectives 2. Clear cut authority and responsibility for every sub-ordinates 3. Effective communication between the executive and his subordinates, supervisors and workers 4. Good human relationship of managers with their subordinates 5. Co-operation among the subordinates and between the executive and subordinates
  40. Communication Communication is the process by which instructions are transmitted, received and understood by people working in the organizations. Good communication system avoids the confusion, misunderstanding and any kind of communication gap.
  41. Leadership
  42. Decision making A decision is defined as a course of action chosen from available alternatives for the purpose of a desired result.
  43. The following are considered as stages in effective decision making •Define the problem •Grade the objectives and identify the problem environment •Identify all alternatives •Select criteria in order to evaluate alternatives •Select the best alternative and implement and decision •Obtain feedback
  44. Management as a science, art or profession The question whether a management is a science or art or a profession is an ongoing debate. Management has a characteristic of both science and art and at the same time it is increasingly becoming a profession.
  45. Management as a science Properties of science •Systematic body of knowledge •Scientific inquiry and observation •Experimentation •Universal truth
  46. Systematic body of knowledge Science as a knowledge is based on certain principles that are obtained through the process of observation, experimentation and verification. Science is derived from the cause and effect relationship between different variables. Science as a knowledge helps in explaining past and predicting future events.
  47. Scientific inquiry and observation • Scientific inquiry is unaffected by personal likes and dislikes. • When we say that acceleration due to gravity is 9.81 m/sec2, we are not expressing the opinion of one person. This is scientifically verifiable.
  48. Experimentation Scientific principles are derived after repeated observation and experiments. The result of each experiment can be verified and results predicted in a definite way.
  49. Universal truth Scientific principles represent basic truth and are developed after a series of experiments. They can be applied in all situations and at all times.
  50. Properties of Management •Systematic body of language •Management is a social science •Management is not an exact science •Manager Vs scientist •Scientific management
  51. Systematic body of language Management as a knowledge is also based on certain principles and many of these principles have been established through the process of observation, experimentation and verification. Certain management tools can also be used to explain past events and predict future events, though not as scientific principles.
  52. Management is a social science Management is a social science because it basically deals with human behavior, which is unpredictable and cannot be tested in laboratories. As a result, not all principles of management can be accepted as absolute truth. Management , at best can be called as soft science.
  53. Management is not an exact science Management is not an exact science like physics, chemistry or biology. It does not offer absolute principles but only flexible guidelines which help in solving problem. Management can never be an exact science because in business, condition changes continually.
  54. Manager Vs scientist A scientist takes decisions based on the results of his experiments while a manager has to experiment his decision and wait for the result.
  55. Scientific management Many pioneers of management such as F W Taylor, Henri Fayol, Mary Parker etc. have developed several principles in management with structured and logical thinking, which came to be known as ‘scientific management’. Management has become more and more scientific over the years replacing thumb rules and traditional methods.
  56. Management as an ART
  57. Properties of art Vs management as an art •Use of knowledge •Creativity •Personal touch •Constant practice
  58. Use of knowledge Art can be considered as application of knowledge and personal skills to achieve results. Art can also use the knowledge of principles offered by science. Example: an architect has to combine his knowledge as well as artistic skills to achieve his objectives
  59. Creativity Art is meant to be creative. But knowledge can teach an artist to do things creatively and skillfully. Management is also creative like any art. It combines human and non-human resources in a useful way so as to achieve results
  60. Personal touch In Art, there is a personal touch. Different artists produces different works although they belong to same school of art. Like wise management is also a personalized activity. every manager has his own way of managing things and people, based on his knowledge and experience.
  61. Constant practice Artists perfect their art by practice. They become mature over many years of constant practice. They learn from their mistakes. Like wise managers also have to develop their skills by constant practice. Managers can tackle difficult problems with confidence only with the experience of having applied management principles over a period of time.
  62. DIFFERENT LEVELS OF MANAGEMENT TOP Middle Low level Board of Directors, Chairman, Chief Executive Department Heads, Divisional Heads, Section Heads Senior Supervisor, Supervisors
  63. Top level management Top level management determines goals and objectives. It performs overall planning, organizing, staffing, directing and controlling. It integrates organization with environment, balances the interest groups and is responsible for overall results.
  64. Middle management Middle management stands between top management and supervisory management level. Middle level management establishes programs for department and carries out functions for achieving specific goals. The other functions of middle level management are training and development of employees, integrating various parts of the department
  65. Lower level management Lower level management is concerned with efficiency in using resources of the organization. A supervisor is an executor of policies and procedures making a series of decisions with well-defined and specified premises.
  66. Management and Administration Basically there are Three views •Administration is broader than management •Management is Broader than Administration •Management and Administration are unique
  67. Administration is broader than management Administrator think while manager act. Administration, according to them, is a higher level activity than management.
  68. It is a process of determining the objectives To be achieved. It is always down the policies and principles It prepares the frame work under which One has to work It provides direction, guidance and leadership & brings in source It comes first and provides guidelines to the management and organization Administration Management It is process of planning the work as per the objectives laid down by the administration It executes the policies and programs It supervises and controls the execution of assigned work It co-ordinates all the resources and activities It is the second and it drives strength & freedom from administration to plan and execute the work
  69. Management is broader than Administration Management is wider concept than administration. This is echoed by thinkers like Henry, Brech etc. They are of the opinions that Management is role making, rule enforcing, all encompassing body while administration implements and carries out the policies of the management
  70. Management and Administration are identical Some authors like Harold, William. They claim that there are hardly any distinction between the two terms. They are of the view that both administration and management do the same functions such as planning, organizing, commanding, co-ordinating and controlling
  71. Roles of Management (Manager) 1. Interpersonal Role •Figure Head •Leader •Liaison 2. Informational Role •Monitor •Disseminators •Spokesman Decisional Roles •Entrepreneur •Disturbance Handler •Resource allocator •Negotiator
  72. Interpersonal Role Figure Head: in this role, a manager is seen as a person representing the organization in formal matters, serving as a symbol of the organization. He may have to receive top dignitaries, attend meeting, preside over functions. Leader: Here he is busy encouraging and motivating and motivating his employees. He takes initiative, delegates, directs, and communicates his Views. Liaison: in this role, he connects the outside world to the inside world. He interacts with people outside the organization and develops external links.
  73. Informational Role Monitor: as a monitor, a manager request and receives information from various sources on matters concerning his organization. He keeps all channels of information open. Disseminators: here a manager transmitting information within the organization. It might be transmitting policy instruction from top management to lower unit or taking suggestion and opinions from lower unit and informing top management
  74. Spokesman: this is about transmitting information to people outside the organizations. It is the manager who has to talk on behalf of his organization to concerned people such as share holders, government bodies, press, media, police etc.
  75. Decisional Roles Entrepreneur: as an entrepreneur, a manager initiates projects to improve the organization, encourages new ideas and innovations, brings changes and manages it. Disturbance Handler: Manager has to handle all kinds of disturbances that occur within the organization. He also has to find solutions to unanticipated problems such as worker strikes, Major accidents etc.
  76. Resource allocator: how all the resources of an organization get disturbed among various divisions or employees, is something that a manager decides. He is the one who allocates resources to particular areas in the best interests of the organization. Negotiator: He may have to negotiate with politicians, labors officials, clients, suppliers, customers etc.
  77. Important questions 1. Define management. Write various characteristics of management and explain them briefly. 2. What are the functions of management and explain in brief. 3. Explain different levels of management 4. What is scientific management? Explain 5. Explain different role of management
  79. • The period between 1700 and 1850 highlights the industrial revolution and the writings of the classical economists. • Importance of direction as a managerial function • Several economists during this period explained in their writings the concepts and functions of management. • Example: ▫ Adam smith: explained the concept and consequences of division of labors. Similarly the other concepts like directing, controlling, planning etc.
  80. The evaluation of management thought can be studied in three parts • Early classical approach ▫ Scientific management ▫ Administrative management ▫ Bureaucracy • Neo-classical approach ▫ Human relations movement ▫ Behavioral management • Modern Approaches ▫ Quantitative approach ▫ System approach ▫ Contingency
  81. Early classical approach • Scientific management:  Frederick Winslow Taylor is considered to be the father of scientific management.  He exerted great influence on the development of management thought through his experiments and writings.  During his span, he conducted many experiments in three companies: ▫ Midvale steel ▫ Simonds Rolling Machine ▫ Bethleheme steel
  82. While serving as a chief engineer of Midvale steel company , Taylor made several important contribution which are classified under scientific management 1. Time and Motion Study: Taylor is a Machinist himself. • Time, Job, Input, Output. • Time and Motion study • Replaced the thumb rule found the best way of doing job
  83. 2. Differential payment • Linked incentive with production • Taylor thought that the attraction of high piece rate would motivate workers to increase production. 3. Drastic Reorganization of supervision •Separation of planning and doing •Functional foremanship The workers himself used to select his tools and decided the order in which the operations were to be performed. The foreman simply told the worker what jobs to perform, not how to do them.
  84. 4. Scientific recruitment and training: •Taylor emphasized the need for scientific selection and development of the worker •He said the management should develop and train every worker. 5. Intimate Friendly Cooperation between the management and workers: “ a complete mental revolution”
  85. Administrative management • Division of work: division of work in the management process produces more and better work with the same effort. • Authority and responsibility: a management consists of getting the work done through others. • Discipline: is the absolutely essential for the smooth running of business. • Unity of direction: there should complete identity between individual and organization.
  86. • Bureaucracy: Max weber is known as Father of Bureaucracy. 1910 he made a study of different types of business and government organization and distinguished 3 basic types of administration in them: • Leader-oriented • Tradition Oriented • Bureaucratic
  87. • Neo-Classical approach 1. The human Relation Movement: 2. Behavioral approaches: improved and matured version of human relation approach to management.
  88. Modern Approaches: • Quantitative approach • System approach • Contingency approach