Management

Meaning –

• Economists – factor of production

• Sociologists – treat it as a process

• “Management is the process of – planning, organizing, leading and

controlling” -
• “Management is process – all managers of all level in organization engage in
certain inter-related activities in order to achieve the desired goals”.
• “Manager use all the resources of organization, both physical as well human”
• “Management aims at achieving the organizations goals”.
Definition –

• “Art of getting things done through people” – Mark Parker Follet

• “To manage is to forecast and plan, to organize, to command, to co-ordinate
and to control ‘’- Henry Foyal
• “Management is what manager does”- Louis Allen
• “Management is the process of getting things done through the agency of a
community. The functions of management are the handling of a community
with a view to fulfilling the purpose for which it exists” – Sir Charles
Reynold
• “Management is simply the process of decision – making and control over the
actions of human being for the expressed purpose of attaining predetermined
goals” – Stanley Vance
• “Management is a process of releasing and directing human energies towards
attaining definite goal” – Wilson
• “Management is the process of optimizing human, material and financial
contributions for the achievement of organizational goals”- Pearce and
Robinson
• “Management is the art of directing and inspiring people” – Mooney and
Reiley
• “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. It is the art of getting
the work done through and with people in formally organized groups” –
Koontz and O’Donnel
• “Management is the art of knowing exactly what you want men to do and
then seeing that they do it the best and cheapest way” – F.W. Taylor
Management as a Science

• Systematic body of knowledge.

• Principles have to be evolved on the basis of constant enquiry and

examination.

• Establishing cause – effect relationship.

• Amenable for verification (in put – out put)

Management as an Art

• Know – how to accomplish a desired result.

• Practice makes a man perfect.

• Constant practice of the theoretical concepts contributes for the formation of

skills.

• Skill acquired only through practices – medicine, eng., accountancy.

Management as Profession

• Organized and systematic knowledge

• Formalized methods of acquiring knowledge and skills.

• Professionalism and goal.

• Ethical code to regulate the behavior of members

• Fee

• Social responsibilities

Functions of management

Management is a process
Series of functions
• Henry Fayol - identifies five functions – planning, organizing, commanding,
co-ordinating and controlling.

• Seven functions of management – planning, organizing, staffing, directing,

co-ordinating, responding and budgeting.
 • Koontz & O’Donnel classify as – planning, organizing, staffing, directing and
controlling.

Planning

• Outline for future course of action

• Deciding the objectives

• Formulating the policies and procedures to achieve them.

• What to do, how to do, who to do

• Performed by managers at all levels.

Organizing

• Achieve objectives by using physical and human resources.

• Group functioning requires organized.

• Activities to achieve goal.

• Assigning groups of activities.

• Delegation of authority.

• Co – ordination horizontally and vertically.

Leading

• Directing – what to do.

• Communication – process of passing information.

• Leadership – process of guiding and influencing

• Motivation – stimulate to do the best.

• Interpersonal in nature

• Understanding people

Controlling

• Establishing standard of performance.

• Measuring the actual performance.

• Monitoring.
 • Appropriate and corrective measure.

Management Levels & Skills

Level A – Conceptual skills

Level B – Human relation skills
Level C – Technical skills

Difference between Administration and Management

Administration

• Top level function

• Makes / takes policy decisions
• Owns the concern
• Interested in results – profit, sales, future etc.
• Do not take part in the daily activities
• Decisions made are influenced by the availability of capital, govt.
regulations
• Always permanent body

Management
 • Concerned with implementation of policy and decisions made on less
important matters

• Paid employees

• Work for remuneration and goal setting

• Responsible for daily work

• Empowered to talk decisions on daily routine

• Not static body – retire, resign etc

Pre – Scientific Era

Management – “oldest of the arts and youngest of the science”.

18th &19th centuries
Search for principles and theories
1800 – Charles Babbage – Division of labour various skills to be executed.
Robert Owen – an entrepreneur of cotton mill.
Facilitated the workers with accommodation.
Gave better working conditions.
Evaluate the employees.

Scientific Management Era

Frederick Winslow Taylor (1856-1915) father of scientific mgmt.

He defined mgmt as the art of – “knowing exactly what you want men to do
and then seeing that they do it the best and cheapest way”.

Main feature of scientific mgmt

i. Separation of planning and doing
• Planning –supervisor

• Actual working-workers

ii. Job analysis

• Time study

• Motion study (movements)

 • Fatigue study (rest)

iii. Functional foremanship

• Supervision system

iv. Standardization

• Tool required

• Period of work

• Amount of work

• Working conditions

• Cost of production (depends on job analysis)

v. Scientific selection and training of workers

• Education

• Work experience

• Aptitude

• Physical strength

• Proper training

vi. Financial incentives

• Wages based on individual performance

vii. Economy

• Cost

• Control

• Eliminating wastages

viii. Mental revolution

• Attitude of employers

• Mutual conflict may be replaced by mutual co-operation

 Neo - Classical Management Era (Administrative)

Henry Fayol (1841 – 1925)

Founder / father of Neo - classical mgmt school

Six business activities –
i. technical
ii. commercial
iii. financial
iv. security
v. accounting
vi. managerial

Managerial – five functions

i. planning
ii. organizing
iii. commanding
iv. co-ordinating
v. controlling

Henry Fayol’s principles of management

1. Division of labour
2. Authority (right of command)
3. Discipline (rewards and penalties)
4. Unity of command
5. Unity of direction
6. Sub – ordination of individual interest to common good
7. Remuneration
8. Centralization
9. The hierarchy (line of authority)
10.Order (order of work right person/right job)
11.Equity (friendly atmosphere)
12.Stability of staff
13.Initiatives (freedom to carry out plans)
14.Team spirit

Human Relation Era

Also called as behavioural school

Hawthrone experiments –

• Conducted by Elton Mayo (1924 – 33) at electric company.

• Relationship between the physical conditions at work place and the

productivity of workers.
 • Test group (put workers in groups)

• Control group – (test group –production increase and control group-

production decreases)

• Influencing worker’s performance – changes in work performance.

• Introducing rest periods

• Reducing the work days and work week

Elton Mayo contributed change in attitude and approach towards training.

Social Science Era

Chester.I.Barnard’s – management thought

Organisation’s goals – individual needs.

“an enterprise can operate efficiently and survive only when both the organisation’s
goals & the needs of the individuals working for it are kept in balance”.

• Three conditions for organization exists

There are persons able to communicate each other.

They are willing to contribute to the action.
They attempt to accomplish a common purpose.

• Identified three types of functions

Maintenance of organizational communication.
The securing of essential service from individual in the organization so as to achieve
the overall purpose.
The formulation and definition of organizational purpose.

• Importance of orders obeying

It is possible only when an individual –

understands the communication

believes that it is not inconsistent with the organizational purpose
believes it to be compatible with his personal interest as a whole
is mentally and physically able to comply with it.
Rensis Likert

Insights into supervision, general management system and dynamic of

interpersonal relationship.

Likert classified supervisors into 2 categories – i) job centered ii) Employee centered

i) Job centered – performance of assigned tasks and maintenance of prescribed

standards.

ii) Employee centered – human aspects of their sub-ordinate and effective team
– building for high task performance.

Argument of high performing managers and argument of low performing managers

–

i. High performing managers improved the performance of low production

units.

ii. Low performing managers placed in high production units brought down their
output a span of time.

Dougles Mc.Gregor

Theory X and Theory Y (human beings – presents contrasting nature of man)

Theory X – dislike of work

Controlled, directed with punishment
Avoid responsibilities.
Theory Y – physical and mental effort in work
Punishment not only for organization goals but, exercise self direction
and self control in the service of objectives to which they are committed.
Degree of commitment to objectives is in proportion to the size of the
rewards.
Learn under proper conditions.

Herbert. A. Simon

Laid emphasis on how decisions are made and how they can be made more
effectively.
Organization as a structure of decision – makers
Decision – making process into three phases - intelligence activity, design activity,
choice

Peter .F. Druckers

i. Management as a practice – two function a) innovation b)marketing
 Goal oriented

New products should drive out the existing products

Knowledge based organization

Describe modern workers as knowledge workers – skills and innovative.

ii. Function of management – 3 points

The action of mgmt should contribute to – the achievement of purpose

and mission of the institution.

More the work production and the worker achieving.

Effective mgmt of social responsibility.

iii. Objective setting – tool called as MBO

“MBO is a process where by supervisor or sub-ordinates jointly identify the

common objective, set the results that should be achieved by sub-
ordinates and assess the contribution of each individual”.

iv. Orientation towards future

Visualizing the future trends

v. Federalism

Involves centralized control in a decentralized structure.

Federalism has certain positives

a. It sets the top mgmt free to devote itself to major policy formulation
and strategy development.

b. If defines the functions and responsibilities of the operating people

c. It creates yardsticks to measure twin success and effectiveness in

operating jobs.

d. It helps to resolve the problem of continuity through giving education

to the managers of various units while in an operating positions.