Nature of Management And Its Process

Harshit Doshi

Chapter Outline

Management – Concept Management Functions Management Theory Management Approaches Administration – Management Management as Science Management as Profession Innovation and the Manager Goals of Manager

Management - Concept

A case of Harley Davidson Human Relation Definition

Management Function

POSDCORB1. Planning 2. Organizing3. Staffing4. Directing5. Coordinating6. Reporting7. Budgeting

Management Theory

Scientific Theory of Management Modern Management Behavioural Management System Approach Contingency Management

Scientific Theory of Management Frederick Taylor is often called the

“father of scientific management. Taylor believed that organizations should

study tasks and develop precise procedures. As an example, in 1898, Taylor calculated

how much iron from rail cars Bethlehem Steel plant workers could be unloading if they were using the correct movements, tools, and steps. The result was an amazing 47.5 tons per day instead of the mere 12.5 tons each worker had been averaging.

Scientific Theory of Management Major principles of the scientific

management may be summarized as follows:1. Division of work and responsibility between

Labour and management2. Scientific determination of each element of a

man’s Job.3. Scientific selection and training of workers4. Absolute cooperation between Labour and

Management5. Differential piece of wage payment.

Modern Management

Henri Fayol, a French mining engineer, developed 14 principles of management based on his management experiences.

Division of work: Division of work and specialization produces more and better work with the same effort.

Authority and responsibility: Authority is the right to give orders and the power to exact obedience. A manager has official authority because of her position, as well as personal authority based on individual personality, intelligence, and experience. Authority creates responsibility.

Discipline: Obedience and respect within an organization are absolutely essential. Good discipline requires managers to apply sanctions whenever violations become apparent.

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Unity of command: An employee should receive orders from only one superior.

Unity of direction: Organizational activities must have one central authority and one plan of action.

Subordination of individual interest to general interest: The interests of one employee or group of employees are subordinate to the interests and goals of the organization.

Remuneration of personnel: Salaries — the price of services rendered by employees — should be fair and provide satisfaction both to the employee and employer.

Centralization: The objective of centralization is the best utilization of personnel. The degree of centralization varies according to the dynamics of each organization.

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Scalar chain: A chain of authority exists from the highest organizational authority to the lowest ranks.

Order: Organizational order for materials and personnel is essential. The right materials and the right employees are necessary for each organizational function and activity.

Equity: In organizations, equity is a combination of kindliness and justice. Both equity and equality of treatment should be considered when dealing with employees.

Initiative: Thinking out a plan and ensuring its success is an extremely strong motivator. Zeal, energy, and initiative are desired at all levels of the organizational ladder.

Esprit de corps: Teamwork is fundamentally important to an organization. Work teams and extensive face-to-face verbal communication encourages teamwork.

Behavioural Management

The behavioural management theory is often called the human relations movement because it addresses the human dimension of work.

Behavioural theorists believed that a better understanding of human behaviour at work, such as motivation, conflict, expectations, and group dynamics, improved productivity.

Mayo, Maslow, McGregor, Levitt, Herzberg and McClelland etc have laid the foundation of this theory.

Elton Mayo’s the Hawthorne Experience

Contingency School of Management The contingency school of management can be

summarized as an “it all depends” approach. The appropriate management actions and approaches

depend on the situation. Contingency management recognizes that there is no one best way to manage.

In the contingency perspective, managers are faced with the task of determining which managerial approach is likely to be most effective in a given situation.

For example, the approach used to manage a group of teenagers working in a fast-food restaurant would be very different from the approach used to manage a medical research team trying to find a cure for a disease.

Systems management theory

A system is an interrelated set of elements functioning as a whole.

An organization as a system is composed of four elements:

1. Inputs — material or human resources2. Transformation processes — technological

and managerial processes3. Outputs — products or services4. Feedback — reactions from the environment Managers recognize the various parts of the

organization, and, in particular, the interrelations of the parts.

System Terminology

An organization that interacts little with its external environment (outside environment) and therefore receives little feedback from it is called a closed system.

An open system, in contrast, interacts continually with its environment. Therefore, it is well informed about changes within its surroundings and its position relative to these changes.

Management is an Open System

Managerial Roles

Interpersonal: This role involves human interaction.

Informational: This role involves the sharing and analyzing of information.

Decisional: This role involves decision making.

Managerial Roles

Managerial Roles

Managerial Roles

School of Management

1. The Empirical Approach2. The Interpersonal Approach3. The Group behaviour Approach4. The Decision Approach5. The Mathematical Approach6. The Operational Approach

Schools of Management

1. The Empirical Approach: Experience is the best teacher.

2. The Interpersonal Behaviour Approach: Management is by people and for people. Behavioural scientist belong to this group.

3. The Group Behaviour Approach: Teamwork4. The Decision Theory Approach: Decision

making is the core of Management.5. The Mathematical Approach: Management is

a system of mathematical models and processes. OR and analyst belong to this group.

6. The Operational Approach: Combination of all approaches as per real life situation.

Administration and Management1. Administration is concerned with policy making

whereas management with implementation.2. Function of Administration are legislative and

largely determinative while that of management are executive and governing.

3. Administration is concerned with planning and organizing, but motivating and controlling functions are involved in management.

4. BOD is normally concerned with admin whereas personnel below that level are in charge of management.

Management – Science or Art Science may be defined as a body of

knowledge systematized through application of scientific method in any department of enquiry.

Management also have systematic base like principles as planning, controlling, direction etc.

Management is still a growing science and inter disciplinary science.

Management – Science or Art Practical application is reflected in art. The process of management involves

use of knowledge and skills Management is personalized is sense

that every manager has its own approach for solving the problem.

Management as Profession A field is normally characterised as

Profession when following special features are present in it:

1. Systematic body of knowledge2. Need for learning and proper

organisation3. Entry restricted on the basis of

examination or education and 4. Dominance of service motive.

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