1. The document discusses several concepts in management including definitions of management provided by Koontz and Fayol, characteristics of management, and principles of management. 2. It also summarizes the Hawthorne experiments which studied the impact of workplace conditions on productivity and found social factors to be important motivators. 3. Major management thinkers discussed include Frederick Taylor with his scientific management principles, Fayol's administrative management principles, and Max Weber's bureaucracy model.

1. Introduction Principles and Practice of management

2. Koontz : “Management is the art of getting things done through and with the people in formally organized groups.”

3. Henry Fayol: To manage is “to forecast and plan, to organize, to command coordinate, and to control.”

5. Management as Profession: it possesses all the attributes of profession as: (a) a systematic corpus of knowledge, (b) a code of conduct. Characteristics of profession: Formalized methods of acquired training and experience. The establishment of a representative organization with professionlisation as its goal. Existence of a body of knowledge, techniques, skills and specialized knowledge. The charging of fees based on the nature of service extended. The formation of an ethical code for the guidance of its conduct. Cont…

6. Body of knowledge: All over the world there is marked growth of an organized systematic body of knowledge about management as a process. Formal methods of teaching: The establishment of professional schools of management in which management as a body of knowledge can be taught is seen everywhere. Fee as remuneration: The number of management consultants is increasing. Even a large number of well reputed firms are establishing their consultancy agencies. Existence of ethical code: There is growing emphasis on the ethical basis of management behavior. Establishment of representative organizations: Both at the national and international levels management associations have been formed with their membership rules, codes of conduct, etc Arguments in favour

7. Management as a Science: Science is by definition a body of knowledge gathered by experimentation and observation, artificially tested and expressed in the form of general principles. Identification of the problem Scientific inquiry Choice of the best available alternative Rigorous control procedure Universally applicable Management AS- Science or Art:

8. Management as an Art: Art refers to the skill to put into action a systematized body of knowledge for the achievement of a given tasks. Personal skill Practical knowledge Result oriented approach Personal judgment Continuous practice

9. 1.Management is a group activity: 2.Existence of Objectives: An objective or set of objective should exist towards which the organized group activities are directed. 3. Management is important organ of society: 4. Working with and Through People: 5. Decision making Features of management:

10. Effective Utilisation of resources Development of resources To incorporate innovations Integrating various interest groups Stability in the society Importance of management

12. Evolution of Management Thought

13. Frederik Winslow Taylor

14. Management Introduced by Frederik Winslow Taylor in USA “Scientific Management is concerned with knowing Exactly What you want men to do and then seeing that they do it in the best and cheapest way”. Emphasis is on solving the managerial problem in a scientific way. He carried various experiments about how to increase the efficiency of people. SCIENTIFIC MANAGEMENT

15. Elements and Tools of scientific Management Principles of Scientific Management Taylor’s principles can be described into two parts:

16. Separation of Planning And Doing He emphasized on the separation of planning aspect from actual doing of the work Previously, workers used to plan for the work to be done where put under the supervision of a supervisor. Emphasize that planning should be done by the supervisor and worker should emphasize on operational work only. Elements and tools of scientific management

18. In this system, eight persons are involved to direct the activities of workers.

19. Four persons are concerned with planning

21. Job analysis is undertaken to find out the one best way of doing the things. The best way of doing a job is one which requires the least movements, consequently less time and cost. It can be done by Time –Motion-Fatigue studies. Time study involves the determination of time a movement takes to complete. The movement which takes minimum time is best one. Motion study involves the study of movements in parts which are involved in doing a job and thereby eliminating the wasteful movements and performing only necessary movements. fatigue study shows the amount and frequency of rest required in completing the work. Job Analysis

22. Standards should de maintained in respect of instruments and tools, period of work, working condition, cost of production etc. Standardisation

24. Physical strength etc. Physically and technically sound worker.

25. Training for workers to make them more efficient and effective. Scientific Selection And Training of Workers

26. Motivate the workers to put their maximum efforts. He applied the concept of differential piece rate system:- The worker who completes the normal work gets higher rate. one who does not complete the normal work gets the lower rate. He said wages should be based on individual performance and not on the position which he occupies. Financial Incentives

27. Adequate consideration should be given to Economy and profit. For this technique of cost and control should be adopted:- Making resources more productive as well as by eliminating the wastages. Economy

28. Mutual co-operation between management and workers. For this mental change in both parties from conflicts to co-operation. Mental revolution

29. Principles of Scientific Management

30. He says that , the exactness of various aspects of work like day’s fair work, standardization of work. Differential piece rate etc. is the basic core of scientific management. It is essential that all these are measured precisely and not on mere estimates. Replacing Rule of Thumb With Science

31. There should be mutual give and take situation and proper understanding so that group as a whole contributes to the maximum. Harmony In Group Action

32. It is based on mutual confidence, co-operation and goodwill. co-operation between management and workers can be developed through mutual understanding and a change in thinking. Co Operation

33. It involves continuous increase in production and productivity instead of restricted production either by management or by worker. Maximum Output

34. Required Scientific selection of workers and providing them training at the work place. Development of Workers

35. Knowledge Decisiveness:- A manager must act fast to be decisive. A good Manager should be able to make decision, even when only partial data is available, so that his decision may be based on analytical and intuitional judgment. Ability to handle conflict Emotional stability Characteristics of quality Managers

36. Fayol’sAdministrative Management :

37. Father of modern operational management Fayol looked at the problems of managing an organisation from top management point of view. His contribution were first published in book form titled ‘Administration Industrielle at Generale’ in French language. Use the term administration instead of management

38. Division of Work- Produces more and better work with same effort. Various functions like Planning, Organizing, Directing And Controlling cannot be performed by a single person. Henry Fayol’s 14 principles

39. Management: Getting work done through others. Manager should have the right to give orders and power to get obedience. Authority and Responsibility

41. They can be maintained by:-

42. Good supervisors at all levels.

43. Clear & fair agreements b/w both.

44. Judicious application. Discipline

45. A person should get instructions and orders from only one superior. Unity of Command X Y Z X Y Z B W A W Unity of command Violation of unity of command

46. According to this, each group of activities with the same objective must have one head and one plan. Unity of Direction Main objective Sub objective (HR Dept) Sub objective (Finance Dept) Sub objective (Operation Dept) Sub objective (Marketing Dept)

47. Common interest is above the individual interest. The agreement between the employers and the employees should be fair. Subordination of individual to general interest Common interest Individual (2) intt Individual (3) intt Individual (4) intt Individual (1) intt

48. Fair and provide maximum satisfaction to employee. It increases worker’s efficiency and morale and maintain good relationship between them and Management. Remuneration of Personnel

49. Increase importance of subordinate’s role is decentralization. Reduce its importance is centralization. Decided by management on the basis of nature of circumstances, size of the undertaking etc. Centralization

50. There should be scalar chain of authority and of communication ranging from the highest to the lowest. Communication must follow through each position in the line of authority (upward and downward both). Scalar Chain

51. A B L C M D N E O P F ------------------------ G Q (Gang Plank)

52. Proper place for everything and everything at its proper place. (Material order) Similarly, Right man at the Right place. (social order) Exact knowledge of human requirement and resources and constant balance between them is required Order

53. Equal Treatment to all. Brings loyalty It requires good sense, experience and manager to be free from personal likes or dislikes. Equity

54. No employee should be removed within short of time. Job security in order to motivate the workers. Sense of Attachment. Stability of Tenure

55. Within the limits of authority and discipline, managers should encourage their employees for taking initiative. Initiative

56. Principle of ‘Union is Strength’ Extension of Unity of command for establishing team work. Team spirit among the employees. The motto of divide and rule should be avoided. Esprit-de-corps

57. BUREAUCRACY

59. No delegation of management functions.

60. Tradition oriented:

61. Managerial positions are handed down from generation to generation.

62. ‘Who you are’ is more important then ‘what you can do’

63. Bureaucratic Administration:

64. Delegation of Management responsibilities is based on person’s demonstrated ability to hold the position.

66. Main features of this class are:

67. People are paid as whole time employees

68. They receive salary and other perquisites normally based on their positions.

69. There tenure in the organization is determined by rules and regulations of the organization.

70. They are selected on the basis of their competence. Features of Bureaucracy:-

72. This hierarchy serves as lines of communication & delegation of authority. Hierarchy:

73. This increases production by improving efficiency and saving time in changing over from one job to another. Work is divided on the basis of specialization. It ensures that each office has a clearly defined area of competence within the organization and each official knows the areas in which he operates.. Division of work

74. The rules and regulations that are to be followed by employees are well defined to instill(feel) discipline in them and to ensure that they work in a coordinated manner to achieve the goals of the organization Rules & regulations

75. Relationships among the individuals are governed through the system of official authority and rules. Official positions are free from personal involvement, emotions and sentiments. Impersonal Relationships:

76. This emphasizes on the maintenance of proper official records. The decision and activities are formally recorded and preserved for future reference Official Record:

77. HAWTHRONE EXPERIMENT ANDHUMAN RELATIONS :

78. The Hawthrone plant of the General Electric Company was manufacturing Telephone System Bell. Employed about 30,000 employees at time of experiments. In spite of providing various benefits to employees there was dissatisfaction among the workers and productivity was not up to the mark. In order to investigate the real causes, a team was formed to study the relationship between productivity and physical working conditions. They conducted various researches into four phases: HAWTHRONE EXPERIMENT AND HUMAN RELATIONS

79. To find out how varying levels of illuminations (light at place of work) affected the productivity. Hypothesis was that with higher illumination productivity would increase. Firstly a group of workers was chosen and placed into two separate groups One Group (Experimental Group) exposed to varying intensities of illumination. Another Group (Control Group) continued to work under constant conditions 1. Illumination Experiment:

80. When illumination was increased in the experimental group, productivity increased in both the groups. When illumination was decreased the productivity still increased. it decreased only when it was decreased to level of moon light. Conclusion- It did not have any effect on productivity.

81. To determine the effect of changes in hours and other working conditions on productivity For this test two girls were chosen. These girls were asked to choose four more girls as their co-workers. The work was related to the assembly of telephone relays. Each relay consisted of a number of parts which girls assembled into finished products. Output depended on speed and continuity. Experiments started with introducing changes in sequence with duration of each change ranging from 4-12 weeks. Before each change they were consulted and their views were invited. In some cases they were also allowed to take decisions. Relay Assembly Test Room Experiments:

82. Incentive system was changed: Each girl’s extra pay was based on other five rather than output of larger group. (Productivity Increased) two 5 mins rest- 1 morning & 1 evening later increased to 10 mins. ( Productivity Increased) Rest periods was reduced to 5 mins but frequency was increased.(Decreased because rhythm got affected) No. of rest reduced to 2 of 10 mins each but coffee or soup in morning and snack in evening.(Productivity increased) Changes in working hours and workday were introduced.- Saturday off. Girls were allowed to leave early. (Productivity Increased) Changes:

83. As a result of these changes: Absenteeism Decreased Less Supervision was required. Researchers decided to revert back to original position, but productivity still increased. Due to change in girl’s attitude towards work and friendly attitude of the supervisor.

84. About 20,000 workers were interviewed. In this phase, they wanted to know as to what were the basic factors responsible for human behaviour at work. Firstly, direct questions were asked but much information could not be extracted. Later, technique was changed to non-directive type of interviewing, in which workers were free to talk. It was found that social relations inside organization had influence in their attitudes and behaviors. Workers behaviour was being influenced by group behaviour. Mass Interviewing

85. In this a group of 14 male workers was employed in the bank wiring room. The work involved attaching wire to switches for certain equipments used in telephone exchange. Hourly wage rate for workers was based on average output of each worker while bonus was given on the basis of average group output. It was assumed that workers would work more efficiently and would help each other in order to produce more and earn more. This hypothesis did not hold valid. Workers decided the targets for them, lower than the company’s target because: Fear of Unemployment Fear of Raising Standards Protection of Slower workers. Satisfaction on the part of Management. Bank Wiring Observation Room Experiments

86. It has tried to unearth those factors which are important for motivating people at workplace, major findings are: Social factor in output Group influence Conflict Leadership Supervision Communication Implication of Hawthorne Experiments

87. Management Skills Technical Skills The ability to apply specialized knowledge or expertise Human Skills The ability to work with, understand, and motivate other people, both individually and in groups Conceptual Skills The mental ability to analyze and diagnose complex situations

88. Technical skill Management skills Human skill Conceptual skill Top Middle Lower Management levels

89. (i) Production Management: Managing the production so as to produce right goods in right quantity at the right cost and at the right time. (a) Designing the product (b) Location and layout of plant and building (c) Planning and control of factory operations (d) Operation of purchase and storage of materials (e) Repairs and maintenance (f) Inventory cost and quality control (g) Research and development etc. SCOPE OF MANAGEMENT

90. Identification of consumers needs and supplying them goods which can satisfy those wants Marketing research to determine the needs and expectation of consumers Planning and developing suitable products Setting appropriate prices Selecting the right channel of distribution, and Promotional activities like advertising and salesmanship to communicate with the customers. (ii) Marketing Management:

91. Ensuring right amount and funds to business at right time at a reasonable cost. Selecting the appropriate source of funds Raising the required funds at the right time Administration of earnings Estimating the volume of funds (iii) Financial Management:

92. Selecting , compensating etc human resources at right time in the enterprise Manpower planning Recruitments, Selection, Training Appraisal, Promotions and transfers, Compensation, Employee welfare services, and Personnel records and research, etc. (iv) Personnel Management:

93. Planning Organizing Controlling Directing Management Functions ManagementFunctions Staffing

94. Planning A process that includes defining goals, establishing strategy, and developing plans to coordinate activities

95. Organizing Determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made

96. Staffing Staffing is the process of choosing right people for organization. It can be associated with human resource management and involves recruitment, hiring, training and compensating the workforce.

97. Directing Directing is guiding people in the organization through the means (effective communication) of counseling, instructing and motivating.

98. Controlling Monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations