INTRODUCTION TO MANAGEMENT

MG6851- PRINCIPLES
OF MANAGEMENT
Unit- 1
INTRODUCTION TO MANAGEMENT AND
ORGANIZATIONS

CONTENT
 Definition of management
 Science or art
 Manager vs entrepreneur
 Types of managers
 Managerial roles and skills
 Evolution of management
 Scientific, human relations , system and contingency approaches
 Types of business organization
 Sole proprietorship, partnership, company
 Public and private sector enterprises
 Organization culture and environment
 Current trends and issues in management.
2Lecture ppt by Ms.M.A.Madhumathi., AP/EEE

MANAGEMENT
• Management is a universal phenomenon.
• Every individual or entity requires setting objectives, making
plans, handling people, coordinating and controlling activities,
achieving goals and evaluating performance directed towards
organizational goals.
• These activities relate to the utilization of variables or resources
from the environment − human, monetary, physical, and
informational.
Lecture ppt by Ms.M.A.Madhumathi., AP/EEE 308-07-2018

Management Defined
AUTHOR DEFINITION
HAROLD KOONTZ Process of designing and maintaining an environment in which
individuals working together in groups, effectively accomplish
selected aims.
F. W. TAYLOR Art of knowing what you want to do and seeing that it is done
in the best and cheapest way.
S. GEORGE It consists of getting things done through others. Managers is
the one who accomplishes the objectives by directing the
efforts of others.
Mc FARLAND Conceptual, theoretical and analytical purposes: managers
create, direct, maintain and operate purposive organization
through systematic, co-ordinated co-operative human effort.
Lecture ppt by Ms.M.A.Madhumathi., AP/EEE 4
08-07-2018

Management Defined
AUTHOR DEFINITION
GEORGE. R. TERRY Distinct process consisting of planning, organizing, actuating
and controlling performed to determine and accomplish the
objectives by the use of people and resources.
HENRY FAYOL To manage is to forecast and to plan, to organize , to command,
to co-ordinate and to control.
NEWMAN, SUMMER,
WARREN
The job of management is to make co-operative endeavour to
function properly. A manager is one who gets things done by
working with people and other resources.
Lecture ppt by Ms.M.A.Madhumathi., AP/EEE 5
08-07-2018

Management - Formally defined
The principles of management are the activities that
“plan, organize, and control the operations of the basic
elements of [people], materials, machines, methods,
money and markets, providing direction and
coordination, and giving leadership to human efforts, so
as to achieve the sought objectives of the enterprise.”
7Lecture ppt by Ms.M.A.Madhumathi., AP/EEE

Characteristics
1. Multidisciplinary
2. Continuous process
3. Universal activity
4. Science as well as an art
5. Dynamic
6. Profession
7. Group activity
8. To obtain wealthy results
9. Implies skill and
experience in getting
things done through
people
10.Intangible
11.Implies good leadership

Why Study Organizational behaviour (OB) & Management?
• The better you can work with people, the more
successful you will be in both your personal and
your professional lives.
– Employers want to hire employees
who can participate in managing
the firm.
– Even nonmanagers (Individual
Contributors) are being trained
to perform management
functions.
Lecture ppt by Ms.M.A.Madhumathi., AP/EEE 1–9

Why Study OB & Management? (cont’d)
• The study of management builds the skills needed in today’s workplace to
succeed in:
– Becoming a partner in managing your organization through participative
management.
– Working in a team and sharing in decision making and other management tasks.
• The study of management also applies directly to your personal life in helping
you to:
– Communicate with and interact with people every day.
– Make personal plans and decisions, set goals, prioritize what you will do, and get
others to do things for you.
• Society Needs Leaders and Team Players
– Be Successful in our Community, Religious, Social, Professional, Recreational
and Other Organizations.
– Become Leaders for a “Just and Humane World”

What Is a Manager’s Responsibility?
• Manager
– The individual responsible for achieving organizational objectives
through efficient and effective utilization of resources.
Participative?
• The Manager’s Resources
– Human, financial, physical, and informational
• Performance
– Means of evaluating how effectively and efficiently managers use
resources to achieve objectives.
– Today often means “How” as well as “What”

What Does It Take to Be a Successful Manager?
• Management Qualities (Survey of Execs.)
– Integrity, industriousness, and the ability to
get along with people
• Management Skills
– Technical
– Human and communication (Teaming)
– Conceptual and decision-making skills
• “Systems Thinking” & “Critical Thinking”
• The Ghiselli Study(6 Traits of Manager
Success – Inverse Order)
6) Initiative, 5)self-assurance,4) decisiveness, 3)
intelligence, 2) need for occupational
achievement, and 1) supervisory ability

What Do Managers Do?
• Management Functions (Different Scope at job level)
– Planning
• Setting objectives and determining in advance exactly (?)
how the objectives will be met.
• Monitor for Change and Anticipate or React
• PDCA – Plan – Do – Check - Act
– Organizing
• Delegating and coordinating tasks and allocating
resources to achieve objectives.
– Leading
• Influencing employees to work
toward achieving objectives.
• Setting an Example (Shadow of the Leader)
– Controlling
• Establishing and implementing mechanisms to ensure that
objectives are achieved.

The Systems Relationship among the Management Functions
Planning
Organizing
Leading
Controlling
Management
Functions
Management
Skills

FUNCTIONS OF MANAGERS
1–17Lecture ppt by Ms.M.A.Madhumathi., AP/EEE
MAIN FUNCTION SUB-ORDINATE FUNCTION
PLANNING CO-ORDINATING
ORGANISING MOTIVATING
STAFFING COMMUNICATING
DIRECTING DECISION MAKING
CONTROLLING INNOVATIONS

Management Roles
• Role
– A set of expectations of how one will behave in a given situation.
• Management Role Categories (Mintzberg)
– Interpersonal
• Figurehead, leader, and liaison
– Informational
• Monitor, disseminator, and spokesperson
– Decisional
• Entrepreneur, disturbance handler, resource allocator, and negotiator

Ten Roles Managers Play
Managers play various roles as necessary while performing their management functions so as to
achieve organizational objectives.

Differences Among Managers
• The Three Levels of Management
– Top managers
• CEO, president, or vice president
– Middle managers
• Sales manager, branch manager, or department head
– First-line managers
• Crew leader, supervisor, head nurse, or office manager
– Individual Contributors (ICs)
• Non-management operative employees
– Workers in the organization who are supervised by first-line managers.
• Professionals/Specialists/Technicians (Knowledge Workers)

Management Levels and Functional Areas
INDIVIDUAL CONTRIBUTORS OFTEN REPORT ANYWHERE
SOME
ORGANIZATIONS
“FLIP” THIS CHART
UPSIDE DOWN

Types of Managers
• General Managers
– Supervise the activities of several departments.
• Functional Managers
– Supervise the activities of related tasks.
– Common functional areas:
• Marketing/Sales/Product Development
• Operations/Production/Services Delivery
• Finance/Accounting
• Human Resources/personnel management
• Infrastructure (IT, Real Estate, Legal)
• Project Managers
– Coordinate employees across several functional departments to accomplish a
specific task.

Management Skills and Functions
• Differences among management levels in skill needed and the
functions performed:
Planning
Organizing
Leading
Controlling

Individual Management Styles
Skill Builder 2
• What is Your Preferred Management Style?
• 12 Points Possible…
–Autocratic
–Consultative
–Participative
–Empowerment
–Combinations or Flexible
• Best Management Style?
– Adaptive or Situational Leadership

Differences between Large and Small Businesses

Differences between Large and Small Businesses (cont’d)
ALSO OFTEN APPLIES TO NON-PROFITS AND CIVIC
ORGANIZATIONS, WITH FOCUS ON THEIR MISSION

The Evolution of Management Thought
Early Management
Thought
Contemporary
Management
Perspectives
Behavioral Perspective
Classical Perspective

Early Management Thought
Early ideas about management strategy
 Sun Tzu, The Art of War
Early ideas about leadership
 Nicolò Machiavelli, The Prince
Early ideas about the design and organization of work
 Adam Smith, The Wealth of Nations
 division of labor

The Operational Perspective
 Scientific Management
 Frederick W. Taylor
 Quantitative Management
 Ford W. Harris
 Quality Management
 Walter A. Shewhart
 Bureaucratic Management
 Max Weber
 Administrative Management
 Henri Fayol

Taylor’s Four Principles of Scientific
Management
 Scientifically study each part of a task and develop
the best method of performing the task.
 Carefully select workers and train them to perform the
task by using the scientifically developed method.
 Cooperate fully with workers to ensure that they use
the proper method.
 Divide work and responsibility so that management is
responsible for planning work methods using
scientific principles and workers are responsible for
executing the work accordingly.

Key Characteristics of Weber’s Ideal Bureaucracy
Specialization of labor
Formal rules and procedures
Impersonality
Well-defined hierarchy
Career advancement based on merit

Fayol’s 14 Principles of Management
1. Division of work
2. Authority
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of
individual interest to
the general interest
7. Remuneration
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability and tenure
13. Initiative
14. Esprit de corps

Behavioral Perspective
The behavioral perspective acknowledges that psychological and
social processes of human behavior can result in improvements in
productivity and work satisfaction.
 The Hawthorne effect - when a manager shows concern for employees,
their motivation and productivity levels are likely to improve.
 Human Relations Approach - the relationship between employees and a
supervisor is a vital aspect of management.
 Employee motivation
 Leadership style

Hawthorne Effect
The discovery that paying special
attention to employees motivates them to
put greater effort into their jobs.
(from the Hawthorne management studies, performed from 1924 –
1932 at Western Electric Company’s plant near Chicago)

Physical Needs
Need for Security
Need for Social Relations
Need for Self Esteem
Self-
Actualization
Maslow’s Hierarchy of
Needs

McGregor’s Theory X and Theory Y
Leaders and managers who hold Theory X assumptions believe
that employees are inherently lazy and lack ambition.
A negative perspective on human behavior.
Leaders and managers who hold Theory Y assumptions believe
that most employees do not dislike work and want to make useful
contributions to the organization.
A positive perspective on human behavior.

Contemporary Management Perspectives
Systems Theory
Contingency Theory
The Learning Organization Perspective

Systems Theory
Views the organization as a system of interrelated parts that
function in a holistic way to achieve a common purpose.
Systems theory concepts that affect management thinking:
 Open and closed systems
 Subsystems
 Synergy
 Equifinality

Contingency Theory
States that there is no “one best way” to manage an
organization.
 Because what works for one organization may not work for another
 Situational characteristics (contingencies) differ
 Managers need to understand the key contingencies that determine the
most effective management practices in a given situation

The Learning Organization
The management approach based on an organization
anticipating change faster than its counterparts to have an
advantage in the market over its competitors.
There are two ways organizations can learn:
 Experimental learning
 External learning

• An organization is a group of people
intentionally organized to accomplish a
common or set of goals.
08-07-2018 Lecture ppt by Ms.M.A.Madhumathi., AP/EEE 43

Types of Business Organizations
Sole Proprietorships - One owner
Partnerships - Two or more people share the ownership
Corporations - unique entity
Joint Stock Company – Main organization form joint venture
Public Corporations – owned by Government centre to state.
Government Companies - state enterprise (central or one
or more state)

CLASSIFICATION OF
ENVIRONMENTAL FACTORS
• Internal Environmental Factors - the environment that has a
direct impact on the business. generally controllable because
the company has control over these factors. (resources,
capabilities and culture).
• External Environment Factors - the environment that has an
indirect influence on the business. The factors are
uncontrollable by the business. The two types of external
environment are micro environment and macro environment.

EXTERNAL
ENVIRONMENT

New Workplace Issues and Challenges
Technology and Speed
Globalization
and Diversity
Knowledge,
Learning,
Quality, and
Continuous
Improvement
Change, Creativity, Innovation,
and Entrepreneurship
Participative
Management,
Empowerment,
and Teams
Knowledge
Management
Ethics and
Social
Responsibility
Networking and
Boundaryless
Relationships
GENERATIONAL DIFFERENCES

New Workplace Issues and Challenges (cont’d)
• Knowledge, Learning, Quality, and Continuous Improvement
– Information is the foundation of knowledge which, in turn, is the
foundation of competitive advantage. People (employees) are the
competitive advantage!
• Knowledge workers
• The learning organization
• Knowledge Management
– Involves everyone in an organization in sharing knowledge and
applying it to continuously improve products and processes.

• Change, Creativity, Innovation, and Entrepreneurship
– Knowledge management requires that people change in order to
continually improve.
– The speed of change in modern business has increased because
of globalization and changes in technology. And other factors
listed.
– Creativity is coming up with new ideas for improvements, and
innovation is implementing those ideas.
– Entrepreneurship is about generating creative ideas and using
them through innovation.

• Participative Management, Empowerment,
and Teams
– Empowering employees to share in
performing management functions by
working in teams.
– Learning organizations manage knowledge
well by empowering teams to be creative
and innovative.
• Ethics and Social Responsibility
– Managerial integrity
• SOX Compliance after Financial Scandals
– Situational responses
• e. g. Katrina

• Networking and Boundaryless Relationships
– Electronic networks
• Beware the informality of e-mail, miss-interpreted
messages and first impressions
• Can be distracting/off task
– Relationship networks
– Virtual integration
QUESTION – ARE ELECTRONIC “TOOLS” CHANGING THE QUALITY OF
RELATIONSHIPS? E-Mail, NetMeeting, Video Conferences?

EARLY MANAGEMENT
08-07-2018 Lecture ppt by Ms.M.A.Madhumathi., AP/EEE 1–53

08-07-2018 Lecture ppt by Ms.M.A.Madhumathi., AP/EEE 1–54

• ..management-11th-edn-by-stephen-p-robbins-mary-
coulter-pdf-qwerty80.pdf
Lecture ppt by Ms.M.A.Madhumathi., AP/EEE 1–5508-07-2018

Microsoft Case Questions
1.Which type of resource played
the most important role in the
success of Microsoft?
a. human c. financial
b. physical d. informational
2. Which of the management
skills is stressed most in the
case study?
a. technical
b. human and communication
c. conceptual and decision-
making
3. Which of the management
functions is stressed most in
the case study?
a. planning c. leading
b. organizing d. controlling
4. Bill Gates' participation in and coordination
of small units and his delegation of authority
to managers to run their departments are
examples of the __ management function.
a. planning c. leading
b. organizing d. controlling
5. Which primary management role did Bill
Gates use to achieve success?
a. interpersonal-leader
b. informational-monitor
c. decisional-negotiator
6. Bill Gates is at which level of management?
a. top b. middle c. first-line

Microsoft Case
7. Which type of manager is Bill
Gates?
a. general
b. functional
c. project
8. Bill Gates has greater need for
which skills?
a. technical rather than
conceptual
b. conceptual rather than
technical
c. a balance of both
9. How does Bill Gates spend most
of his time?
a. planning and organizing
b. leading and controlling
c. a balance of both a and b
10. Would Ghiselli (6 Traits – page 10) agree
that Bill Gates has supervisory ability?
a. Yes b. No
11. Give examples of some of the tasks Bill
Gates performs in each of the four
management functions.
12. Give examples of some of the tasks Bill
Gates performs in each of the three
management roles.
13. Do you think you would like to work tor Bill
Gates? Explain your answer.
14. Are Bill Gates and Microsoft ethical and
socially responsible?

Back Up Slides

Learning Outcomes
1. Describe a manager’s responsibility.
2. List and explain the three management skills.
3. List and explain the four management functions.
4. Identify the three management role categories.
5. List the hierarchy of management levels.
6. Describe the three different types of managers.
7. Describe the differences among management levels in terms of
skills needed and functions performed.
After studying this chapter, you should be able to:

Learning Outcomes (cont’d)
8. Define the following key terms:
manager planning
manager’s resources organizing
performance leading
management skills controlling
technical skills management role categories
human and communication
skills levels of management
conceptual and decision-
making skills types of managers
management functions knowledge management

• Technology and Speed
– E-business: work done by using electronic linkages (including the
Internet) between employees, partners, suppliers, and customers.
– E-commerce: business exchanges or transactions that occur
electronically.
• Globalization and Diversity
– Mergers are creating larger globalized firms.
– Firms competing globally have to act locally.
– Diversity is increasing as minorities grow and markets globalize.

E-Commerce
Exhibit 1–8

Learning Outcomes
1. State the major similarities and differences between the classical
and behavioral theorists.
2. Describe how systems theorists and contingency theorists differ
from classical and behavioral theorists.
3. Define the following key terms:
After studying this appendix, you should be able to:
classical theorists systems theorists
behavioral theorists sociotechnical theorists
management science theorists contingency theorists

Classical Theory
• Classical Theorists
– Focus on the job and management functions to determine the best
way to manage in all organizations.
• Scientific Management
– Best way to maximize job performance
– Fredrick Winslow Taylor
• Father of Scientific Management
– Frank and Lillian Gilbreth
• Work efficiency
– Henry Gantt
• Work scheduling

Classical Theory (cont’d)
• Administrative Theory
– Henri Fayol
• Father of Modern Management
• Principles and functions of management
– Max Weber
• Bureaucracy concept
– Chester Barnard
• Authority and power in organizations
– Mary Parker Follett
• Worker participation, conflict resolution, and
shared goals

Behavioral Theory
• Behavioral Theorists
– Focus on people to determine the best way to manage in all
organizations.
• Human Relations Movement (later, the Behavioral Science
Approach)
– Elton Mayo
• Hawthorne studies
– Abraham Maslow
• Hierarchy of needs theory
– Douglas McGregor
• Theory X and Theory Y

Management Science
• Management Science Theorists
– Focus on the use of mathematics to aid in problem solving and
decision making.
– Mathematical models are used in the areas of finance,
management information systems (MIS), and operations
management.

Integrative Theories
• Systems Theory
– Focuses on viewing the organization as a whole and as the
interrelationship of its parts (subsystems).
• Sociotechnical Theory
– Focuses on integrating people and technology.
• Contingency Theory
– Focuses on determining the best management approach for a
given situation.

Comparing Theories
Classical
Behavioral
Management
Science
Systems
Theory
Attempts to develop the best way to manage in all organizations by
focusing on the jobs and structure of the firm.
Attempts to develop a single best way to manage in all
organizations by focusing on people and making them productive.
Recommends using math (computers) to aid in problem solving
and decision making.
Manages by focusing on the organization as a whole and the
interrelationship of its departments, rather than on individual
parts.
Sociotechnical
Theory
Recommends focusing on the integration of people and
technology.
Contingency
Theory
Recommends using the theory or the combination of theories that
best meets the given situation.
Exhibit AP1–2

Ideas on Management at Gap
1. What resources does Gap use to sell its
merchandise?
2. What management functions are performed at Gap
stores?
3. What levels and types of managers have careers at
Gap?
4. How does Gap meet new workplace issues and
challenges?

INTRODUCTION TO MANAGEMENT

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