MANAGEMENT

DEFINITION:

Henry L. Sisk.

*Management is the coordination of all resources through the process of planning, organising, directing and controlling in order to attain stated objectives. James L. Lundy

*Management is principally the task of planning, coordinating, motivating and controlling the efforts of others towards a specific objective.

Harold Koontz and Cyrill O’Donnell

*Management is the creation and maintenance of an internal environment in an enterprise where individuals, working in groups, can perform efficiently and effectively towards the attainment of group goals.

F.W. Taylor

*Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way.

Henry Fayol

* To manage is to forecast and to plan, to organise to command, to coordinate and to control.

Ralph C. Davis

* Management is the function of executive leadership anywhere.

American Management Association

*Management is guiding human and physical resources into dynamic organisational units which attain their objectives to the satisfaction of those served and with a high degree of morale and sense of attainment on the part of those rendering service.

NATURE :

Nature and Characteristics of Management The salient features which highlight the nature of management are as follows:

(i) Management is goal-oriented: Management is not an end in itself. It is a means to achieve certain goals. Management has no justification to exist without goals. Management goals are called group goals or organisational goals. The basic goal of management is to ensure efficiency and economy in the utilisation of human, physical and financial resources. The success of management is measured by the extent to which the established goals one achieved. Thus, management is purposefull. (ii) Management is universal: Management is an essential element of every organised activity irrespective of the size or type of activity. 6 t ManagementPrinciples and Practices Wherever two or more persons are engaged in working for a common goal, management is necessary. All types of organisations, e.g., family, club, university, government, army, cricket team or business, require management. Thus, management is a pervasive activity. The fundamental principles of management are applicable in all areas of organised effort. Managers at all levels perform the same basic functions. (iii) Management is an Integrative Force: The essence of management lies in the coordination of individual efforts in to a team. Management reconciles the individual goals with organisational goals. As unifying force, management creates a whole that is more than the sum of individual parts. It integrates human and other resources. (iv) Management is a Social Process: Management is done by people, through people and for people. It is a social process because it is concerned with interpersonal relations. Human factor is the most important element in management. According to Appley, “Management is the development of people not the direction of things. A good manager is a leader not a boss. It is the pervasiveness of human element which gives management its special character as a social process”.

(v) Management is multidisciplinary: Management has to deal with human behaviour under dynamic conditions. Therefore, it depends upon wide knowledge derived from several disciplines like engineering, sociology, psychology, economics, anthropology, etc. The vast body of knowledge in management draws heavily upon other fields of study. (vi) Management is a continuous Process: Management is a dynamic and an on-going process. The cycle of management continues to operate so long as there is organised action for the achievement of group goals. (vii) Management is Intangible: Management is an unseen or invisible force. It cannot be seen but its presence can be felt everywhere in the form of results. However, the managers who perform the functions of management are very much tangible and visible. (viii) Management is an Art as well as Science: It contains a systematic body of theoretical knowledge and it also involves the practical application of such knowledge. Management is also a discipline involving specialised training and an ethical code arising out of its social obligations.

On the basis of these characteristics, management may be defined as a continuous social process involving the coordination of human and material resources in order to accomplish desired objectives. It involves both the determination and the accomplishment of organisational goals.

STRATEGY :-means to achieve organizational purpose.

STRUCTURE:-basic framework to designate responsibilities and functions.

SYSTEMS:-management tools for planning, decision making , communication and control.

STAFF:-human resources of the organization. SKILLS:- organizational and individual capabilities.

SHARED VALUES:-values , goals , objectives which the organization pursues.

SCOPE OF MANAGEMENT:

Production Management: 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) Inventory cost and Quality Control f) Research and Development etc.

 Marketing Management: a) marketing research to determine the needs and expectation of consumers b) planning and developing suitable products c) setting appropriate prices d) selecting the right channel of distribution, and e) promotional activities like advertising and salesmanship to communicate with the customers

 Financial Management: a) Selecting the appropriate source of funds b) Raising the required funds at the right time c) Administration of earnings d) Estimating the volume of fund.

 Personnel Management: a) manpower planning b) recruitments, c) selection, d) training e) appraisal, f) promotions and transfers, g) compensation, h) employee welfare services, and i) personnel records and research, etc.

Top Level Management- The top level management is generally occupied by the ownership group. It is the highest level in the managerial hierarchy and the ultimate source of authority in the organisation.

29. Middle Level Management-In order to fill up the gap which exists between functional and operative level, some managerial positions are created at the middle level of management. Middle level management consists of departmental managers, deputy managers,foreman and administrative officers etc.

30. Lower Level or Supervisory Level Management- It consists of factory supervisors, superintendents, foremen, sales supervisors, accounts officers etc. They directly guide and control the performance of rank and file workers. They issue orders and instructions and guide day to-day activities.

The father of modern management “Henri fayol”, described firstly the process of management in 5-terms-

33. Planning : Planning is the first step which is basically a logical thinking process that decides what needs to be done in order to achieve organization's goals and objectives. It focuses on the broader perspective of the business as well as taking into consideration, the tactical methods to get the desired results.

34.  Deciding which goals the organization will pursue. Deciding what courses of action to adopt to attain those goals. Deciding how to allocate organizational Resources.

35. Organizing : Organizing is about setting up and maintaining the internal organizational structure in accordance with objectives mentioned in planning stage. It also involves assigning tasks to various individuals for the larger goal of organization's missions and objectives.

36. Organizing: Involves grouping people into departments according to the kinds of job-specific tasks they perform. Managers

lay out lines of authority and responsibility. Decide how to coordinate organizational resources.

37. 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.

38. Directing : Directing is guiding people in the organization through the means of counseling, instructing, motivating. Controlling : Controlling The process of leading and influencing the task related activities of group members or an entire organization.

1. Evolution of management thoughtEvolution of management thought

2. Early approaches to ManagementEarly approaches to ManagementThe Industrial Revolution, which began inEurope in the mid-1700s, was the startingpoint for the development ofmanagement concepts and theories.

3. Classical ApproachClassical ApproachClassical management can be divided intothree separate schools:-Scientific management – F.W. TaylorAdministrative theory – Henry FayolBureaucratic management – Max Weber

4. Overview of classical theoriesOverview of classical theoriesApproach Rationale FocusScientificmanagementOne best way to doeach jobJob levelAdministrativeprinciplesOne best way to putan organizationtogetherOrganizational levelBureaucraticorganizationRational andimpersonalorganizationalarrangementsOrganizational level

5. Classical ApproachClassical ApproachThese views are labeled as classicalbecause they form the foundation for thefield of management thought.

6. Scientific managementScientific managementIt is an approach that emphasizes thescientific study of work methods toimprove the efficiency of workers.It became popular in 1900s.

7. Scientific managementScientific managementF.W. Taylor was known as the ‘father ofscientific management.’Midvale Steel Co.SoldieringTo counter the soldiering problem Taylordeveloped the science of Management.

8. Scientific managementScientific managementSteps DescriptionStep 1 Develop a science for each element ofthe jobStep 2 Scientifically select employees andthen train themStep 3 Supervise the employeesStep 4 Continue to plan but get the work doneby the workers

9. Scientific managementScientific managementThe two major managerial practices thatemerged from Taylor’s approach :-Piece-rate incentive systemTime-and-motion study

10. Limitations of scientific managementLimitations of scientific managementScientific management focus on problemsat operational level.People are motivated only by materialgains.It ignored human desire for jobsatisfaction.

11. Administrative TheoryAdministrative TheoryIt focused on principles that could beused by managers to coordinate internalactivities of organization.Henry Fayol – FrenchAccording to Fayol, the businessoperations of an organization could bedivided into 6 activities

12. Administrative TheoryAdministrative TheoryThe 6 activities are :-TechnicalCommercialFinancialSecurityAccountingManagerial

13. Fayol’s 14 principles of ManagementFayol’s 14 principles of ManagementDivision of workAuthority and responsibilityDisciplineUnity of commandUnity of directionSubordination of the individual interest tothe general interest.

14. Fayol’s 14 principles of ManagementFayol’s 14 principles of ManagementRemunerationCentralizationScalar chainOrderEquityStability of tenure of personnelInitiativeEspirit de corps

15. Bureaucratic ManagementBureaucratic ManagementMax WeberMajor characteristics of BureaucracyWork specialisation and

division oflabourRules and regulationsImpersonalityHierarchy of organization

16. Limitations of bureaucratic andLimitations of bureaucratic andadministrative managementadministrative managementNot universally accepted principles.Bureaucracy destroyed individualcreativity and flexibility.Important aspects of O.B. was ignored.External and internal environmentignored.

17. Behavioral ApproachBehavioral ApproachThe behavioural school of managementemphasized what the classical theoristsignores – The human element.

18. Elton Mayo : Focusing on HumanElton Mayo : Focusing on HumanRelationsRelationsFather of the Human Relations ApproachWestern Electric’s Hawthorne Plant

19. Elton Mayo : Focusing on HumanElton Mayo : Focusing on HumanRelationsRelationsThe experiments were conducted in fourphases:Illumination experimentRelay assembly test room experimentInterview phaseBank wiring observation roomexperiment

20. Contributions of Hawthorne studiesContributions of Hawthorne studiesThe group is the key factor in jobperformancePerceived meaning and importance of thework determine outputWorkplace culture sets its ownproduction standards

21. Criticism of Hawthorne studiesCriticism of Hawthorne studiesCritics felt that the conclusions weresupported by little evidence.The relationship made betweensatisfaction of workers and productivitywas too simple.The studies failed to focus on theatitudes if employees.

22. Abraham Maslow : Hierarchy of needsAbraham Maslow : Hierarchy of needsPeople are motivated by a hierarchy ofneedsHis theory had three assumptionsAll of us have needs which are neverfulfilledThrough our actions we try to fulfill ourunsatisfied needsNeeds can be classified into 5 types

23. Abraham Maslow : Hierarchy of needsAbraham Maslow : Hierarchy of needsAccording to Maslow, once needs at aspecific level have been satisfied, they nolonger act as motivators of behaviour.Then individual strives to fulfill needs atthe next level.

24. Douglas McGregor : Theory X andDouglas McGregor : Theory X andTheory YTheory YThese theories reflect two extreme setsof belief that different managers haveabout their workers.Theory X

represents an essentiallynegative view.Theory Y reflects a more positive view.

25. Chris Argris : Matching human andChris Argris : Matching human andorganizational developmentorganizational developmentMaturity –immaturity theoryModel I and Model IIModel I – Employees are manipulativeand not willing to take risks

26. Quantitative approachQuantitative approach1. Management scienceAnother name for it is operationsresearch2. Operations management3. Management information systems

27. Modern approaches to managementModern approaches to management1. Systems approachOrganizations cannot exist in isolationFour major components – Inputs,transformation process, output andfeedbackOpen and closed systems

28. Modern approaches to managementModern approaches to management2. Contingency theorySituational theory

29. Emerging Approaches in ManagementEmerging Approaches in ManagementThoughtsThoughtsWilliam Ouchi – theory ZConducted research on both American andJapanese management approachesTheory Z involves providing job security toemployees to ensure their loyaltyQuality management

Evolution of Management Thought

Management has been progressively evaluated through the following three stages.

The Classification theory of management

It has three streams:-

1.      Bureaucracy : 1900

2.      Scientific management:  1900-1930

3.      Administrative / Operational management:  1916-1940

The Neo-classical Theory of management

It has two streams:-

1.   Human Relations: 1930-19502. Behavioral Approach: 1940-1950

Modern Theory of management

It has three streams:-

1. Quantitative Approach: 1950-19602. Systems Approach: 1960s on words

3. Contingency Approach: 1970s on words Evolution of Management Thought - 

Frederick Winslow Taylor - Theory of Scientific Management

F.W.Tylor is considered as the "Father of scientific management" and his contributions mark a new era in Modern Management Thought. The concepts propounded by him have an impact on management service practice as well as on management thought up to the present day.. Taylor formalized the  principles of scientific management,and the fact-finding approach put forward and largely adopted was a replacement for what had been the old rule of thumb.

He also developed a theory of organizations , which has been largely accepted by subsequent Management Philosophers

F.W. Taylor's Contributions to Scientific Management

By 1881 Taylor had published a paper that turned the cutting of metal into a science. Later he turned his attention to shoveling coal. By experimenting with different designs of shovel for use with different material (from 'rice' coal to ore) he was able to design shovels that would permit the worker to shovel for the whole day.

In so doing, he reduced the number of people shoveling at the Bethlehem Steel Works from 500 to 140. This work, and his studies on the handling of pig iron, greatly contributed to the analysis of work design and gave rise to method study.

To follow, in 1895, were papers on incentive schemes. A piece rate system on production management in shop management, and later, in 1909, he published the book for which he is best known, Principles of Scientific Management.

A feature of Taylor's work was stop-watch timing as the basis of observations. However, unlike the early activities of Perronet and others, he started to break the timings down into elements and it was he who coined the term 'time study'.

Taylor's uncompromising attitude in developing and installing his ideas caused him much criticism. Scientific method, he advocated, could be applied to all problems and applied just as much to managers as workers. In his own words he explained:

"The old fashioned dictator does not exist under Scientific Management. The man at the head of the business under Scientific Management is governed by rules and laws which have been developed through hundreds of experiments just as much as the workman is, and the standards developed are equitable."

Objectives of Scientific Management

The four objectives of management under scientific management were as follows:

The development of a science for each element of a man's work to replace the old rule-of-thumb methods.

The scientific selection, training and development of workers instead of allowing them to choose their own tasks and train themselves as best they could.

The development of a spirit of hearty cooperation between workers and management to ensure that work would be carried out in accordance with scientifically devised procedures

The division of work between workers and the management in almost equal shares, each group taking over the work for which it is best fitted instead of the former condition in which responsibility largely rested with the workers. Self-evident in this philosophy are organizations arranged in a hierarchy, systems of abstract rules and impersonal relationships between staff.

F.W. Taylor's Contribution to Organizational Theory

This required an organization theory similar for all practical purposes to that advocated by those organizational theorists who followed. These theorists developed principles of management which included much of Taylor's philosophy

His framework for organization was:

clear delineation of authority

responsibility separation of planning from operations incentive schemes for workers management by exception task specialization

Criticism Of Theories Expounded by Taylor

Taylor's Philosophy though gained immense popularity, was also widely criticised on three grounds.

1. Scientific management ignored human side of organization.. Taylor viewed on average worker as a machine that could be motivated to work hard through economic incentives. Workers and Trade Unions opposed his views strongly on the plea that it was exploitative.

2. Taylor's theory is narrow in scope having direct application to factory jobs at the Shop Floor Level. Taylor and his disciples were called "Efficiency Experts" because they concentrated attention on improving efficiency of workers and machines. Scientific management is therefore restricted in scope as a theory of Industrial Engineering or Industrial Management, rather than a general theory of management.

3. Taylor advocated excessive use of specialisation and separation of planning from doing. Excessive division of labour had disastrous consequences in the form repetitive and monotonous jobs and discontent among workers.

Nevertheless, Taylor's theory and principles have exercised considerable influence on modern management thought. His emphasis on use of scientific methods in solving work-related problems is widely accepted by modern experts on management. Taylor's impact has been so great because he developed a concept of work-measurement, production control and other functions, that completely changed the nature of industry. Before scientific management, such departments as work-study, personnel, maintenance and quality control did not exist. What was more his methods proved to be very successful. Quantitative approach or management science approach is based largely on Taylor's philosophy.

"Scientific Management focuses on job-productivity at the shop floor, in particular upon techniques that could be used on manual workers. Scientific management principles continue to be widely applied today. In a typical manufacturing orgnization one will see scientific managment ideas and techniques being applied to the shop floor, and bureaucratic principles of organization being used in the office areas".*

*Andrzej A. Huczynski in "Management Gurus - What makes them and how to become one" (p.12)

Scientific Management- (Contribution of F.W. Taylor)

Scientific Management

(Contribution of F.W. Taylor)

Frederick Winslow Taylor was first person who gave Scientific Management in 1911. He also called the father of scientific management. Scientific Management was concerned to improving the operational efficiency at the shop-floor level.

According to Taylor, “scientific management means knowing exactly what you want men to do and seeing that they do it in the best and cheapest way.”

Scientific management is based on the analysis, planning and control functions. And job accomplished by analyzing, and works can selected and trained scientifically. In this, management role is to determine the kind of work for which an employee suited and hire and assign workers accordingly. Management is not responsible for execution of work but they are responsible for how

the work is done. Co-operation between management and workers can enhance the work and achieve the maximum output.

Taylor called it as “Mental Revolution”, because it creates the mutual understanding, trust and confidence between the management and workers for achieving goal (higher production).

Principles of scientific Management

Under scientific management, Taylor developed the following parameters for organization.

Scientific work study

Task planning

Tools and materials

Selection and Training

Standardization

Worker management interrelationships

Differential piece wage system

  Objective of Scientific Management

        Scientific utilization of various resources like human power,    

material etc.

To provide trained and efficient work force.

To provide standardize methods of work.

To provide a scientific base for selecting material, and equipment.

To provide extra wages to the worker for higher production.

Replace old rule of thumbs to new scientific methods.

To develop a good rapport between management and workers.

To achieve higher production, with reduce costs and maximum

efficiency.

Less wastage.

(Contribution of Henri Fayol)

Henri Fayol was real father of modern Management. Henri Fayol is the French industrialist in 1841-1925. He was a mining engineer in. Henri Fayol spent his entire working career in French industry; French cool and iron combine of commentary fourchambault. Henri Fayol developed a general theory of Business Administration.

Henri Fayol was concerned the principles of organization and the function of management. Fayol laid the foundation of management as a separate body of knowledge. He always insisted that if scientific forecasting and proper methods are used in management than company can get satisfactory results. According to Fayol, management was not personal talent; it is a knowledge base skill.

Henri Fayol’s Administrative Management is based on six admin activities. They are-

1. Technical : Production and manufacture

2. Managerial : Planning, controlling, co-ordination

3. Commercial : Purchasing and selling

4. Financial : Use of capital

5. Accounting : Asset, Liabilities, cost, profits

6. Security : Protection of goods and Person

Fayol’s fourteen Principles of management

Fayol derived the following fourteen principles.-

Division of work: Division of work means specialization. Each job and work should be divided into small task and should be assigned to specialist of it.

Authority and responsibility: Authority means right to give order and command while responsibility means to accomplish objective.

Discipline: Discipline is required at every level in every organization. Fayol stated discipline in terms of obedience, application, and respect to superiors.

Unity of command: A subordinate should receive order from only one boss.

Unity of direction: It means that all the works of an organization must work together to accomplish a common objective in under one plan and head.

Subordination of individual interest to common interest: Worker follows the common interest of organization rather than individual.

Remuneration: Remuneration should be fair and adequate. It includes both types of incentives financial as well as non financial.

Centralization: There should be one central point in organization which exercises overall direction and control of all the parts.

Scalar Chain: Scalar chain is the chain or line of command from superior to subordinates.

Order: Only proper order can give an efficient management.

Equity: Equity creates loyalty and devotion among the employees.

Stability of tenure personnel: Security of job for an employee in an organization is very important and pre-requisite condition. Retaining productive employee should always a higher priority of management.

Esprit de corps: Management should encourage harmony and proper understandings between workers. Fayol said that in union there is strength. Whole organization should work as a team.

Initiative: Manager should be encouraged the employees Initiative for creative working.

BUREAUCRACY MANAGEMENT (Max Weber-1900)

Bureaucracy management is a stream of classical theory of management. Max Weber was the first of management theorists who were concerned the management structure with the sets of rule and regulations. Bureaucracy management depends upon administration devices. Max Weber presents the ideal organization structure. There are four major characteristics of organizational structure.-

Hierarchical positions

Rules of system

Division of labour for specialization

Impersonal relationship

Advantage of bureaucracy management:

Hierarchy of authority.

Employment is based on the technical efficiency.

Eliminate managerial inconsistencies.

A well understood system.

Maintain the consistency of working.

Rules and regulation of the duties are followed by the employees.

Records are kept for future references.

People are given authority according to their position in organization.

Disadvantage of bureaucracy management:

Human resources are not tackled.

Inter personal relations are discarded.

It does not allow for personal growth and development.

It does not possess adequate.

Organization becomes static and change is not anticipated.

Difficult to keep co-ordination and communication between employees.

It is a “closed system”. Neoclassical theorists recognized the importance of individual or

group behaviour and emphasized human relations. Based on the Hawthorne experiments, the neoclassical approach emphasized social or human relationships among the operators, researchers and supervisors (Roethlisberger and Dickson, 1943). It was argued that these considerations were more consequential in determining productivity than mere changes in working conditions. Productivity increases were achieved as a result of high morale, which was influenced by the amount of individual, personal and intimate attention workers received.

Principles of the neoclassical approach The classical approach stressed the formal organization. It was

mechanistic and ignored major aspects of human nature. In contrast, the neoclassical approach introduced an informal organization structure and emphasized the following principles:

 The individual An individual is not a mechanical tool but a distinct social being, with aspirations beyond mere fulfilment of a few economic and security works. Individuals differ from each other in pursuing these desires. Thus, an individual should be recognized as interacting with social and economic factors.

 The work group The neoclassical approach highlighted the social facets of work groups or informal organizations that operate within a formal organization. The concept of 'group' and its synergistic benefits were considered important.

 Participative management Participative management or decision making permits workers to participate in the decision making process. This was a new form of management to ensure increases in productivity.

Note the difference between Taylor's 'scientific management' - which focuses on work - and the neoclassical approach - which focuses on workers.

DEFINITION

Hawthorne effect

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Part of the Business terms glossary:

The Hawthorne effect is a psychological phenomenon that produces an improvement in human behavior or performance as a result of increased attention from superiors, clients or colleagues.

Introduction

Elton Mayo’s team conducted a number of experiments involving six female workers. These experiments are often referred to as the Hawthorne experiments or Hawthorne studies as they took place at The Hawthorne Works of the Western Electric Company in Chicago.

Hawthorne Experiment Details

Over the course of five years, Mayo’s team altered the female worker’s working conditions and monitored how the change in working conditions affected the workers morale and productivity. The changes in working conditions included changes in working hours, rest brakes, lighting, humidity, and temperature. The changes were explained to the workers prior to implementation.

Hawthorne Experiment Results

At the end of the five year period, the female worker’s working conditions, reverted back to the conditions before the experiment began. Unexpectedly the workers morale and productivity rose to levels higher than before and during the experiments. The combination of results during and after the experiment (ie the increase in the workers productivity when they were returned to their original working conditions) led Mayo to conclude that workers were motivated by psychological conditions more than physical working condition.

Hawthorne Experiment Conclusions

After analysing the results from the Hawthorne experiments Mayo concluded that workers were motivated by more than self interest and the following had an impact too:

 

Psychological ContractThere is an unwritten understanding between the worker and employer regarding what is expected from them; Mayo called this the psychological contract.

Interest in WorkersA worker’s motivation can be increased by showing an interest in them. Mayo classified studying the workers (through the experiments) as showing an interest in the workers.

Work is a Group ActivityWork is a group activity, team work can increase a worker’s motivation as it allows

people to form strong working relationships and increases trust between the workers. Work groups are created formally by the employer but also occur informally. Both informal and formal groups should be used to increase productivity as informal groups influence the worker’s habits and attitudes.

Social Aspect of WorkWorkers are motivated by the social aspect of work, as demonstrated by the female workers socialising during and outside work and the subsequent increase in motivation.

Recognise WorkersWorkers are motivated by recognition, security and a sense of belonging.

CommunicationThe communication between workers and management influences workers’ morale and productivity. Workers are motivated through a good working relationship with management.

Conclusion

The traditional view of how to motivate employees is that you offer monetary rewards (pay increases, bonuses etc) for work completion. However the Hawthorne experiments may suggest that motivation is more complicated than that. Advocates of the "Hawthorne Effect" will state that the Hawthorne experiment results show that motivation can be improved through improving working relationships and social interraction.

Major contributors of Neo-classical theory are:

Chris Argyris- He recommended that worker should be given freedom to

make their own judgments.

Mary Praker Follett: He referred group influence.

Dougals Me Gorgor: he referred two views.

X-theory- it is based on classical theory and

Y-theory- it is based on neo-classical theory.

Abraham Maslow: He referred individual needs.

Transcript

1. International Academy of Management & Entrepreneurship MODULE 1 Introduction of management

2.   MODULE 1 Management theory and practice – definition of management – nature, purpose and functions – management: science V/S art. . Factors responsible for increasing significance of management – Functions of Managers - Scientific Approach, System Approach and Contingency Approach. Managerial roles as different from Functions of Managers. Mintzberg’s 10 Managerial Roles, Katz’s Managerial Skills, Social responsibility of managers

3.   Definition of Management A Process of designing and maintaining an environment in which individuals, working together in groups to accomplish organizational goals and objectives.

4.   Definition of Management • By Griffin: “A set of management functions directed at the efficient and effective utilization of resources in the pursuit of organization goals.” • By Koontz and Weihrich: “Management is the process of designing and maintaining an environment in which individuals working together in groups, efficiently accomplish selected aims.”

5.   Nature and purpose • As managers, people carry out managerial functions- planning, organizing, staffing, leading & controlling. • Mgmt applies to any kind of organization. • It applies to managers at all organization levels. • The aim of all the managers is the same : to create surplus. • Managing is concerned with productivity: which implies effectiveness and efficiency

6.   FUNCTIONS OF MANAGEMENT Planning • Look ahead and chart out future course of operation • Formulation of

Objectives, Policies, Procedure, Rules, Programmes and Budgets Organizing • Bringing people together and tying them together in the pursuit of common objectives. • Enumeration of activities, classification of activities, fitting individuals into functions, assignment of authority for action.

7.   FUNCTIONS OF MANAGEMENT Directing • Act of guiding, overseeing and leading people. • Motivation, leadership, decision making. Controlling • Laying standards, comparing actuals and correcting deviation-achieve objectives according to plans.

8.   Top Level Managers Middle Level Managers First Level Supervisors Controlling TIME SPENT IN CARRYING OUT MANAGERIAL FUNCTIONS

9.   Skills and Management Levels Top Level Technical Skills Human Skills Conceptual and Design Skills Supervisory Level

10.   Management: Science V/S Art Art • Practical know how • Technical skills • Concrete results • Creativity • Personalized nature Science • Empirically Derived • Critically tested • General principles • Cause and effect relationship • Universal applicability Management as a science provides principles and as an art helps in tackling situations.

11.   Productivity Outputs Productivity = --------------- (@ time & quality) Inputs Effectiveness: Achievement of objectives Efficiency: achievement of objectives with least amount of resources and time. Peter drucker: “Efficiency is doing things right and effectiveness is doing the right thing…”

12.   Importance or Significance of Management • Creates better work environment • Promotes team work towards organization • Provides clear cut direction or goal • Facilitates optimum utilization of resources • Motivates

personnel • Encourage initiative • Facilitates innovation • Facilitates expansion and diversification • Quality of worker’s life • Assist society

13.   Approach to Management • Scientific Approach • Administrative Approach Some other approach's are

14.   Case Approach: This approach is the analytical approach. It is all about predicting the case. The disadvantage in this is that the situation is not the same all the time. Managerial roles Approach: This involves the roles of the manager which needs intelligence While taking decisions. Situational Approach: The approach should be situation based. It is a type of an open system. Here the data is driven. Total Quality Management: This is a very important approach where every quality should be included.

15.   Management science Approach: It is also said as maths approach. This is a scientific kind of an approach. Decision theory: This is all about the skills that people have in them. Based on the decision the approach is taken. Re-engineering Approach: This is a limited process. Systems Approach: This includes all the outside factors. Management process Approach: It is also known as operational process. It is one of the human, system and technical elements.

16.   Socio-technical systems Approach: It is all about psychology. Group Approach: It is all about team work. How the work is divided in the team members. Mc-Kinsey 7-S Frame work: Strategy Structure Staff Skill System Shared value Style

17.   Managerial roles Interpersonal Roles: This role includes the way you be good to all, the lead role that an employee take, motivating people, act as a bridge between the top management and others, approach to all the problems. Informational Roles: This role includes how you

receive the information from inside and outside the organization. The information should be about the people from the top management to the employees. Spoke person role also is included who address the media. Decision Roles: This role includes entrepreneurship role who takes an initiative and a decision. It also includes trying to solve problem. Negotiator role is also included in it who is tied up with some other organization.

18.   Management and society • Operating in a pluralistic society • The technological environment • The ecological environment • Social responsibility of managers • Social responsibility • Social responsiveness • Role of the government • Ethics in Managing • Ethical theories – Utilitarian theory – Theory based on rights – Theory of justice • Whistle Blowing

Unit ii

Transcript

1. International Academy of Management & Entrepreneurship MODULE 3 Planning

2.   MODULE 3 Planning- Types -Steps- the planning process . Introduction to Strategic Planning – MBO- MBE- Strategies- Policies-Planning Premises - Decision Making - Risk and Uncertainty - Decision Trees. Introduction to important planning models ( SWOT, McKinsey’s 7S Framework, Porter’s 5 Forces, BCG Matrix, Portfolio Matrix – GE 9 Cell, PEST Analysis, Ansoff’s Matrix). Introduction to Competitive Intelligence.

3.   Planning Selecting Mission and objectives and deciding on the actions to achieve them; it requires decision making and choosing course action from among alternatives

4.   Objectives • Hierarchy of Objective 1. Socio economic purpose – Board 2. Mission – Top level 3. Overall objectives – Top level 4. More

specific KRAs – Middle level 5. Division objectives – Middle level 6. Department or Unit – Lower 7. Individual objectives – Lower

5.   Types of Plans • Mission or Purpose • Objectives or Goals – Aiming End • Strategies – Course of action • Policies – General Guide • Procedures – Handling Method • Rules – Specific actions • Programs – Integrated action • Budgets – Plan in numerical terms

6.   Steps in Planning 1. Being aware of opportunities 2. Establishing Objectives 3. Developing Premises 4. Determining alternative courses 5. Selecting a Course 6. Formulating Derivative plans 7. Quantifying plans by Budgeting

7.   Strategic Planning Process • Inputs to the organization • Industry analysis • Enterprise Profile – Orientation Values and vision – Mission, Objectives and Strategic Intent • Development of alternative strategy • Evaluation of Choices – TOWS Matrix, Portfolio Matrix • Implementation

8.   Management By Objective (MBO) Comprehensive managerial system that integrates many key managerial activities in a systematic manner and is consciously directed toward the effective and efficient achievement of organizational and individual objectives.

9.   Decision Making - Process 1. Premising 2. Identifying alternatives 3. Evaluating alternatives 4. Choosing an alternative – Rationality – Limited or Bounded – Quantitative & Qualitative Factors – Marginal analysis & Cost efectiveness

10.   Selecting an alternative – Three approaches • Experience • Experimentation • Research and anlysis

11.   Planning Premises • It is one of the parameter which tells you about the facts and figures. It helps you in finding the alternatives, evaluating them. • Analysis is done on those parameter using your own mind the thinking. • It includes the qualitative and quantitative factors that comes in business model.

12.   Introduction to important planning models • SWOT • McKinsey’s 7S Framework • Porter’s 5 Forces • BCG Matrix • Portfolio MTranscript

1. International Academy of Management & Entrepreneurship MODULE 4 Organisation

2.   MODULE 4 Organisation: Formal and Informal - Span of Management - Organisation Structure, Types of organization structure - Authority & Responsibility, Delegation methods & Processes Departmentation -Line and staff relationship -

Centralisation Vs. Decentralisation - Organisational Culture- Cultural Diversity - Multi Ethnic Workforce - Organising Knowledge resource..

3.   Organisation • It is identifying and classification of required activities, grouping of activities to reach the objectives, assignment of each group to a manager with the authority. • Provision of co-ordination vertically or horizontally.

4.   Nature of Organizing 1. Systems of Role – Role played by individual 2. Coordination with other role 3. Organization role – Meaningful to people Verifiable objectives Major duties or activities involved Authority – Rights of people in the role take decision 4. Organizing Identification and classification of required activities Grouping of activities to reach objectives Assignment of each group to a manger with the authority Provision for Coordination – Horizontally or vertically

5.   Types of Organization • Formal Organization • Intentional structure of roles • Informal Organization • Network of interpersonal relationship • People associations in informal setup. • Organizational division – Department • Distinct area, division or branch • Authority for Role Player or Manager

6.   Organization Levels and span of Management MD VP- Fin GM-A/ C GM - Finance VP - HR Trg. Mgr • Narrow Span • Wide Span

7.   Types of organization structure • It means departmentation. • The organization is divided into different departments. • They are: Enterprise function, Territory/ Geography, Customer group, Product, Matrix Organization, Strategic business.

8.   Authority & Responsibility Delegation of authority includes the process of assigning work from top organization level to a lower organization level. It means giving authority to the superior to supervise the sub-ordinates.

9.   Delegation methods & Processes • The process of delegation is as below: a. Allocation of duties b. Delegation of authorities c. Assignment of responsibilities d. Creation of accountability

10.   Organization Structure: Departmentation • Departmentation by Enterprise Function • Departmentation by Territory or Geography • Departmentation by Customer Groups • Departmentation by Product • Matrix Organization • Strategic Business Units

11.   Line and staff relationship • Staffing is defined as filling, and keeping filled, positions in the organization structure. • Identifying work force requirement • Inventorying the people available •

Recruiting, placing, appraising, promoting, career planning, training and compensating etc.

12.   Centralization Vs. Decentralization • Centralization includes decision making and action at high level management. • Decentralization includes smartness, sub-ordinates lead a luxurious life and have the authority to lead.

13.   What is organizational culture? Organizational culture is the system of shared beliefs and values that develops within an organization and guides the behavior of its members.

14.   Organization Culture and Diversity • Principles supporting the organization structure • Grapevine • General pattern of behavior • Shared beliefs • Values • Influence of Leader in the organization

atrix – GE 9 Cell • PEST Analysis • Ansoff’s Matrix

QUANTITATIVE,   CONTEMPORARY   AND   EMERGING   VIEWS   OF   MANAGEMENT

Quantitative Approach to Management:

The quantitative approach involves the use of quantitative techniques to improve deci

sion making. This

approach has also been labeled operations research of management science. It include

s applications of

statistics, optimization models, information models, and computer simulations

How Do Today's Managers use the quantitative approach?

The quantitative approach has contributed directly to management decision making in

the areas of planning

and control. For instance, when managers make budgeting, scheduling, quality control, 

and similar

decisions, they typically rely

on quantitative techniques. The availability of sophisticated computer software

programs to aid in developing models, equations, and formulas has made the use of qu

antitative techniques

somewhat less intimidating for managers, although they must still be able to interpret th

e results.

The quantitative approach, although important in its own way, has not influenced manag

ement practice as

much as the next one we're going to discussorganizational behaviorfor a number

of reasons. These

include the

fact that many managers are unfamiliar with and intimidated by quantitative tools,

behavioral

problems are more widespread and visible, and it

is easier for most students and managers to relate to real,

day-to-day people problems than to the more abstract activity of

constructing quantitative models.

Branches in the Quantitative Management Viewpoint:

There are three main branches in

the Quantitative Management Viewpoint: management science,

operations management, and management information systems

Management science (or operations research as it has been called) is

an approach aimed at increasing

decision effectiveness through the use of sophisticated mathematical models and statist

ical methods. This is

NOT a term to be used synonymously with either the

term "Scientific Management" described earlier

featuring Taylor and others or "The Science of Management," a

term that usually refers broadly, to a

deliberate, rational approach to management issues.

Operations Management is

the function or field of expertise that is primarily responsible for the

production and delivery of an organization's products and services.

Management information systems (MIS) is the name often given to

the field of management that

focuses on designing and implementing computer-based information systems for use by 

management

Contemporary viewpoints:

This school of thought or view point about management includes those major ideas abo

ut managing and

organizations that have emerged since the 1950s. Some of

the ideas, systems theory for example, are rooted

in experiences gained during World War II.

The systems theory approach is based on

the notion that organizations can be visualized as systems of

interrelated parts or subsystems that operate as

a whole in pursuit of common goals. This will be discussed

in more detail in the next session.

Contingency Theory is the view that appropriate managerial action depends on the

particular parameters

of each situation. This approach is in marked contrast to

the earliest universal approach stemming from the

classical management school which suggested that there was one, and only one, best d

ecision for managers

to make which applied in all cases and to all organization, big or little, for profit, or not-

for-profit, etc. The

generalized corollary to

the universal approach is that the secret to successful managing was just to keep

looking until that one best solution was "found." "it all depends", would be the slogan of

contingency

theory. The contingency approach applies particularly well in such areas as environmen

tal factors, strategy,

organizational design, technology, and leadership

1. Motivates personnel : A good plan provides various financial and non-financial incentives to

both managers and employees. These incentives motivate them to work hard and achieve

the objectives of the organization. Thus, planning through various incentives helps to

motivate the personnel of an organization.

2. Encourages creativity and innovation : Planning encourages managers to express and/or

use their creativity and innovation. This brings satisfaction to the managers and success to

the organization.

3. Helps in decision-making : A manager makes many different plans. Then the manager

selects or chooses the best of all available plans. Making a selection or choosing something

means to take a decision. So,decision-making is facilitated by planning.

 Definitions of Planning

1. According to Koontz and O'Donnell, "Planning is deciding in advance what to do,

how to do it, when to do it, and who is to do it. Planning bridges the gap between

where we are and where we want to go. It makes it possible for things to occur which

would not otherwise happen”.

2. According to George R Terry, "Planning is the selecting and relating of facts and the

making and using of assumptions regarding the future in the visualization and

formulation of purposed activities believed necessary to achieve desired results".

3. According to Philip Kotler, "Planning is deciding in the present what to do in the

future. It is the process whereby companies reconcile their resources with their

objectives and opportunities".