MODULE 1

MODULE 1MANAGEMENT

IntroductionOrganizations have variety of goals.

managementManpowerMoneyMaterialsMachineryMethodsFig: Management as a Unifying forceOne of the most important human activities is managing. Since people began forming groups to accomplish aims they could not achieve as individuals. Thus managing became essential to ensure the coordination of individual efforts.DefinitionsManagement is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.It is the organizational process that includes strategic planning, setting objectives, managing resources, deploying the human and financial assets needed to achieve objectives, and measuring results.

Management characterizes the process of leading and directing all or part of an organization, often a business, through the deployment and manipulation of resources (human, financial, material, intellectual or intangible).It is the activity of getting things done with the aid of people and other resources.There are many definitions of management, because:It is a vast subjectIt is concerned with human beingsIt is a young developing discipline.Management consists of three primary activities: 1. Management establishes a plan. Road map for what work is going to be done. 2. Management allocates resources to implement the plan. 3. Management measures the results to see how the end product compares with what was originally envisioned.

Management as a ProcessManagement as a Group/TeamManagement as a DisciplineManagement as an Activity Functions of Management1. Planning.2. Organizing.3. Leading.4. Controlling.

Planning: Involves selecting missions and objectives as well as the actions to achieve them.Organizing: Process of assigning tasks, allocating resources and coordinating work activities.Leading: Process of arousing enthusiasm & inspiring efforts to achieve goalsControlling: Measuring & correcting individual & organizational performance to ensure that events conform the plans.

Who is a manager?A manager is someone who coordinates & oversees the work of other people so that the organizational goals can be accomplished.Is a person who supports & is responsible for the work of others.Team Leader, Dept. Head, Project Manager, Dean, President, administrator etc.

Levels of ManagersTop Managers

Middle Managers

First-LineManagers

Nonmanagerial Employees

Top ManagementMiddle Management Lower ManagementResponsibilities of First-line Managers:Plan meetings & work schedules.Clarify goals & tasks, & gather ideas for improvement.Appraise performance & counsel team members.Recommend pay increases & new assignments.Recruit, train & develop team to meet performance goals.Encourage high performance & teamwork.Inform team members about organizational goals & expectations.Inform higher levels of team needs & accomplishments.Coordinate with other teams & support the rest of the organization. Types of ManagersLine managers:Directly contribute to the production of the organizations basic goods & services.2. Staff managers:Use technical expertise to advise & support line workers.

Functional managers: Responsible for one area of activity.General managers: Are responsible for complex multifunctional units.An administrator: Is a manager in a public or nonprofit organization. PresidentManager perso. Manufacturing Manager Pur. Manager Fin

Plant Manager I Plant Manager II Perso- Finan- M/g Purch- Perso- Finan- M/g Purch- -nnel -ce -asing -nnel -ce -asing Staff , Line, FunctionalManagerial RolesHenry Mintzberg grouped the roles of managers into three categories:

Interpersonal roles:1.The figurehead: Representing the organization in formal matters & serving as a symbol.2. Leader:Responsible for motivation of subordinates; leading, staffing, training, directing.3. Liaison:Interacting with peers & people outside the organization; developing external links.

Informational roles:1.Monitor:Receiving & collecting wide variety of information; Utilizing the channels of information.2. Disseminator:Transmitting information within the organization.3. Spokesperson:Transmitting information to people outside the organization.

Decision roles:1. Entrepreneur:Introducing changes, initiating improvement projects.2. Disturbance handler:Taking charge when the organization is threatened.3. Resource-allocator:4. Negotiator:

Managerial SkillsRobert L. Katz identified three basic types of skills:Technical skillsHuman skillsConceptual skills

Technical skills:Job-specific knowledge & techniques needed to proficiently perform specific tasks.Human skills:Ability to understand, motivate & get along with other people.Conceptual skills:Ability to visualize the organization as a whole. It refers to the ability to see the big picture.

Managerial skills at various levels:

TopManagement

Middle Management

Lower level ManagementConceptual skillsHuman SkillsTechnical skillsOther skills:Communication skillsEffectiveness skillsCustomer skills, multitasking, negotiating skill, setting priorities & performance standards.Interpersonal skills;Coaching & mentoring skills, diversity skills, networking within & outside the organization.Key Personal Characteristics for managerial successCommunicationTeamworkSelf-ManagementLeadershipCritical ThinkingProfessionalism

Evolution & Various Schools to Management ThoughtManagement Past & PresentClassical Management ApproachesScientific managementAdministrative principlesBureaucratic organizationBehavioral Management ApproachesThe Hawthorne studies & Human RelationsMaslows theoryMcGregors theoryArgyriss theoryQuantitative Management ApproachesManagement scienceApplied quantitative analysis todayModern Management ApproachesOrganizations as systemsContingency thinkingContinuing Management ThemesQuality & Performance excellenceGlobal awarenessLearning organizations21st century leadershipClassical Management ApproachesAssumption: People at work act in a rational manner that is primarily driven by economic concerns.Scientific management:The Principles of Scientific Management(1911)The principal object of management should be to secure maximum prosperity for the employer, coupled with maximum prosperity for the employee.Time-study, motion study(Frank & Lillian Gilbreth)Principles of scientific management:Each task must be scientifically designed so that it can replace the old rule-of-thumb methods.Workers must be scientifically selected, trained & developed.Bring the scientifically designed jobs & workers together so that there will be a match between them.There must be division of labour & cooperation between management & workers. Contributions of F.W. TaylorFather of Scientific Management.It is an approach which emphasizes the scientific study of work in order to improve worker efficiency.Using the scientific method to determine the one best way of doing the job.

Key concepts:1. Scientific task planning:Is the amount of work which an average worker can perform during a day under normal working conditions. The ultimate goal is to see that work is done in a logical sequence promoting maximum efficiency.2. Time & motion studies:Advocated with a view to isolate the wasteful & unproductive motion of the job.

3. Standardization:standards have to be set in advance for the task, materials, work methods, quality, time & cost, working conditions etc.4. Differential piece rate system:Wage incentives were developed in most scientific management programmes to motivate workers. Differential piece rate system based on actual performance of the worker. 5. Functional foremanship:In order to achieve better production control, the factory is divided into several components each in charge of a specialist:Route clerkInstruction card clerkCost & time clerkGang boss preparatory part of workSpeed bossRepair bossInspectorShop disciplinarian

Administrative Principles

An approach that focuses on principles that can be used by managers to coordinate the internal activities of organizations.Management functions:PlanningOrganisingCommandingCoordinatingControlling

Henry Fayol classified business operations into 6 major activities:Technical (Production & maintenance)Commercial (Buying & selling)Financial (Use of capital)Security (Protection of property & persons)Accounting (Keeping financial records)Managerial

14 Principles of Management:Division of workAuthority & responsibilityDisciplineUnity of commandUnity of directionSubordination of individual interests to the common interestRemunerationOrderCentralizationScalar chainEquityStability of tenure of personnelInitiativeEsprit de corps

Bureaucratic organizationWeber was concerned that people were in positions of authority not because of their job-related capabilities, but because of their social standing Organizations largely failed to reach their performance potential.A bureaucracy is a rational & efficient form of organization founded on logic, order & legitimate authority.Characteristics of Webers bureaucratic organizations:Clear division of labourClear hierarchy of authorityFormal rules & proceduresImpersonalityCareers based on meritDisadvantages:Excessive paperwork/red-tapeSlow in handling problemsRigidResistance to changeEmployee apathyBehavioral Management ApproachesHuman Resource Approaches_________________Assumption:People are social & self-actualizingHawthore Studies___________________Elton MayoTheory X & Theory Y___________________Douglas McGregorTheory of human needs___________________Abraham MaslowPersonality & Organization___________________Chris ArgyrisThe Hawthorne Studies & Human RelationsHawthorne effect: The tendency of persons singled out for special attention to perform as expected.The human relations movement: Suggests that managers using good human relations will achieve productivity.

Contributions of Elton MayoUndertook the famous experiments at the Hawthorne Plant of the Western Electric company between 1927-1932.Changing illumination for the test group, modifying rest periods, shortening work days & varying incentive pay systems did not seem to explain changes in productivity.

He concluded that improvement in productivity was due to social factors such as morale, satisfactory interrelationship between members of a group & effective management. Maslows Theory of Human Needs

Need- It is a physiological or psychological deficiency that a person wants to satisfy.Underlying principles:Deficit principleProgression principleMcGregors Theory X & Theory Y

Argyriss theory of Adult PersonalityThe management practices found in traditional & hierarchical organizations with the needs & capabilities of mature adults.Believes that managers who treat people positively & as responsible adults will achieve the highest productivity.Expand job responsibilities, allow more task variety, & adjust supervisory styles to allow more participation & promote better human relations.Quantitative Management ApproachesAssumption: Mathematical techniques can be used for better problem solving.Supported & driven by computer technology & software programs.Management ScienceUses mathematical techniques to analyze & solve management problems.Mathematical forecastingInventory modelingLinear programmingQueuing theoryNetwork modelsSimulationsModern Management ApproachesPeople are complex & variableThey have many varied needs that can change over time.Organizations & managers should respond individual differences.They recognize that no one model or theory applies universally to all situations.Organizations as SystemsChester BarnardA system is a collection of interrelated parts working together for a purpose.A subsystem is a smaller component of a larger system.An open-system interacts with its environment & transform resource inputs into outputs.High performance by organizations occurs only when each subsystem both performs its tasks well & works well in cooperation with others.Contingency ThinkingTries to match management practices with situational demands.No expectation that one can/should find the one best way to manage in all circumstances.

Continuing Management ThemesQuality & Performance ExcellenceInclude quality as a core valueTQMA value chain is the sequence of activities that transforms raw materials into finished goods or services.Management commitment8 attributes of performance excellence:Bias toward actionCloseness to the customersAutonomy & EntrepreneurshipProductivity through peopleHands-on & value-drivenSticking to the knittingSimple form & lean staffSimultaneous loose-tight properties

Global AwarenessChallenge Continuing efforts of businesses around the globe to transform themselves into truly world-class operations.Lessons from the success of Japanese industryOuchi Theory z Describes management emphasizing long-term employment, consensus, & team-work.

Learning OrganizationsOrganization that has developed the capacity to continuously learn, adapt, improve & change, using the lessons of experience.The watchdogs of the day are innovation & change.Core ingredients or techniques to create LO:1. Mental models: Everyone sets aside old ways of thinking.2. Personal mastery: Everyone becomes self-aware & open to others.

3. Systems thinking: Everyone learns how the whole organization works.4. Shared vision: Everyone understands & agrees to a plan of action.5. Team learning: Everyone works together to accomplish the plan.

21st Century LeadershipCharacteristics of 21st Century executives:Global strategistMaster of technologyInspiring leaderModel of ethical behavior

Social ResponsibilityCorporate social responsibility is defined as an obligation of an organization to act in ways that serve both its own interests & interests of its many external publics (stakeholders). Two views of social responsibility:The classical view.The socioeconomic view.

The classical view:Managements only social responsibility is to maximize profits.Proponent- Milton Friedman.Managers primary responsibility is to operate the business in the best interests of the stockholders. Arguments against:Loss of profits, increased costs, dilution of purpose, lack of skills.

The Socioeconomic view:Managements social responsibility goes beyond making profits to include protecting & improving societys welfare.Supported by Paul Samuelson. Arguments for:Long run profits, better public image, better environment, less need for government regulation.

Evaluating CSPSocial auditA popular model for evaluating CSP in a social audit, includes 4 criteria, in increasing order of socially responsible activity:Is the organizations economic responsibility met?Is the organizations legal responsibility met?Is the organizations ethical responsibility met?Is the organizations discretionary responsibility met?

Some definitions:1. Productivity = outputs (within time period, Inputsquality considered)

2. Effectiveness:Is a measure of task or goal accomplishment.3. Efficiency:Is a measure of the resource cost associated with goal accomplishment. In other words, achievements of the ends with the least amount of results.