You are on page 1of 36

Objectives

*Understand the meaning & definition of management.

*Know the features of management.


*Understand the functions & Importance of management.

*Get to know the relation between administration and


management. *Understand the functions & importance of management.

Structure Introduction Meaning of management. Definition of Management. Features or characteristics of management. Function of Management. Importance of management. Administration and management. Summary

Introduction
Today business is full of complexities. Management is necessary for Business units, Banks, School, Colleges, charitable trust, etc. Management shapes the personality of people and shapes the destiny of a nation. Definition of management:Peter F.Drucker : management is an organ, organ can b e described and defines only through their Functions. Henry Fayol: TO manage is to forecast a plan, to organize, to compound, to co-ordinate and to control. Donald T. clough: Management is the Art and Science of decision making and leadership. 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. J.N.Schulze: Management is the force which leads, guides and directs an organization in the accomplishment of a pre-determined object.

Features or Characteristics of Management.


1) Art as well as science: It is both,art by managing skill of persons and Science as it helps in developing principles or laws to effectively run an Organization.

2) Management is an activity : It relate to effective utilization of available resources. Resources include men, money, material and machine or organization.
3) Management is a continuous process : It consists of planning, organizing, directing and controlling the resources. All the functions are interrelated. 4) Management achieving Pre-determined objectives: The objectives are laid dawn. Management helps in achieving the fixed objectives. 5)Organized activities Organized efforts in a systematic way helps in achieving the desired objectives.
4

Features or Characteristics of Management


6)Management is a factor of production Factor of production such as Land, Labor, Capital, entrepreneurs. According to Peter F.Drucker whatever rapid economic and social development took place after world war II, it occurred as a result of systematic and purposeful work of Developing Managers & Management. Developing is a matter of human energies rather than of economic wealth and generation of human energies is the task of mgmt. according to peter.F.Drucker whatever repaid economic and social develop took place after world war ll. It occurs as a result of systematic and purposeful work of developing managers and management. Developing is a matter of human energies rather than of economic wealth and generation of human energies is the task of management. Management is mover and development is a consequence motivation. 7)Management as system of activity
A system may be defined as a set of component parts working as a whole. Management has balance individual goals and organizational expectations.

8)Management is a discipline
As it aspects can be added with the changing scenario.

Features or Characteristics of Management


9)Management is a purposeful activity
It is to achieve the objectives of an organization, so as to achieve the function of planning,organising,staffing,directing,controlling and decision making. 10) Management is a distinct entry .
Management skill shown how to get thing done if required expertise & knowledge.

11) Management aims on maximizing profit: Eco growth & profit. 12)Decision making: Right decision at the right time 13)Management is a profession : Knowledge & principles of management are applied in practice.

Features or Characteristics of Management


14) Universal application: application to every type of industry. 15)Management is to get thing done 16)Management as a class or a team: 17) Direction & control: Which deals the activities of human effort 18) Dynamic: Fast developing business world, new techniques Aditya group

19) Management is needed at all level


20)Leaders: Managers are the leaders of there team.

Function of management
1) 2)

Planning :- What to do, when to do, how to do, who will do it. Organizing : Distribution of work for effective performance, the manager would determine who will report to whom. To organize human factor and material factor . According to Knootzs oDonnel: organizing consists of conscious co- ordination of people towards a desired goal. Staffing:- Right person at right time it includes recruitment, promotion, retirement etc.To fit the right persons for the right role. Directing:- it includes guidence,supervision and motivation of employee, technique to get the work from the staff. improve knowledge and understanding of enterprise objectives. Motivating:- To improve the performance of the employees. A resourceful leader can do it.
8

3)

4)

5) Co-ordinating:- It depends with size of the organization it also


6)

Function of management
7) Controlling:- A good system control has the characteristics of economy ,flexibility, understanding and accuracy to organization need.

According to.Henry Fayol:- Control consist in verifying whether everything occurs in conformity with the plan adapted, The instructions issued and principles issues.

8) Innovation:- Which includes new products, new techniques ,new design, at a cost reduction.
9) Decision Making:- This helps in smooth functioning of an organization. 10)Communication:- This Helps in regulation job and coordinate the activities,

Main function of management :- planning, organizing, staffing directing, co-ordinating motivating, & controlling Subsidiary function :- Decision making & communication etc. Henry fayol:- Function of management as forecasting, planning, organising, commanding, co-ordinating & controlling. Luther Gullik:- POSDCORB P-Planning O-organising S-staffing D-directing Co-ordinating R-reporting B-budgeting L.Hair :- Functions of management as forecasting planning,control,motivation and co-ordination

10

Importance of management
It helps in utilizing the available resources at a minimum cost.
Management meets the challenges. The competitive period is handled by effective management Accomplishment of group goals individual goals is organizational goal go hand in hand Effective functioning of business: best utilization of available manpower the motivation techniques. Resource development: Resource include men,money,materialand machines Effective utilization of business: 8 ms in business:-man,money,material,machine,method,motivation,market and management . Sound organisation structure: Commanding direction right person for the right job.
11

Function of management
Management direct the organization. Integrate various interests so as to achieve the objectives of

an organization.
Stability : fluctuation in business are controlled by the

Management skill.
Innovation : new ideas, new product e.g.. Nokia co. Co ordination team sprit Tackling problems: Problem solution techniques. A tool for personality development: it develops the personality of

workers and raise their efficiency & productive ability.


12

Administration and management


Running business requires skill :- Management Running Government Departments non-profit:-

Administration institution
Board of directors Top levels

Administration
General Manager Supervisor

Department Management

Manager

Workers

Leffingwell & Robinson:- Administration determines the policies upon which the enterprises is to be conducted, while the functions of management is to be carryout the policies laid down by administrative group.
13

Administration and management


Henry Fayol Said:- All undertakings require planning, organizing

,co-ordination and control to function properly, all must observe the same general principles. Hence we need one administrative science which can be applied to all public & private affairs .

14

S.no. Basic of Administration destination


1.Policy and objectives Determines policy to be
followed and decide the objectives to be achieved.

Management
Implements the policy and achieve the objectives. Directly involves in the execution of plan and achieving objectives. Direction, motivation and control.

2. Directing of human efforts

Not directly involves in the execution of plan and achievement of objectives. Planning, organising and staffing.

3. Main functions

Lower level executives( Top level executives (Owners Manager, supervisor and or Board of directors) workers).

4. Levels of executive
Acts as a principles.

Act as an agency.
Requires technical ability more than administrative ability.
15

5. Position

6. Knowledge

Requires administrative ability more than technical ability.

Development of management Thought

Objective + Structure

Introduction:- Ancient time group efforts led by individual kautilyas Artha sastra and saint Thiruvalluvars Thirukural also state that co-operation, group effort, direction & control are necessary to achieve the objectives or goals of an individual or modern world.

16

Development of management Thought


Henry Fayol 1841-1925
A French industrialist became famous after 1949 with his publication of management thoughts in English. Henry fayol :- an engineer became chief managing director , due to his outstanding abilities. Henry Fayol Concentrated on top management his book general is industrial management mentioned Management plays a very important role in the government undertakings, whether large or small, industrial,commercial,political,religious or any other. The management functions include planning, organising,staffing,directing and controlling. Organisation function include purchase, sales production and accounting
17

Classification of business activities


1) 2) 3) 4)

5)

Technical activities relating to production Commercial activities relating to purchase of basic raw materials and other resources, selling of product and exchange. Financial activities relating to identification and utilisation of available funds. Accounting activities relating to recording and maintaining of account,prepration of cost sheets balance sheets and statistical data. Security activities relating to steps taken to protect the property of enterprise & persons

6) Managerial activities related to

planning,organising,commanding,co-ordanating and controlling.

18

Henry Fayol: Qualities of manager


1.Physical (health,vigour)
2. Mental (ability to understand and learn, judgment, mental vigour and adaptability) 3. Moral (energy, firmness, willingness to accept responsibility, initiative , loyalty, tact and dignity)

4. General education (general acquaintance with matter not belonging excessively to the function performed)
5. Special knowledge (peculiar to the function, be it technical, commercial, financial, managerial etc.) 6. Experience (knowledge arising from work proper)

19

Henry Fayol: principles of management


1.Division of work:-applied to both technical & managerial word.
2.Authority & responsibility:- Responsibility is shouldered whenever authority is exercised.

3.Discipline:- According to koontz and ODonnell Discipline is respect for agereements,directed to achieve obedience Henry fayol:- Discipline is essential in all levels of management people. Discipline is obtained their justice application of penalties. 4. Unity of command :- Each subordinate is responsible to one superior .
5. Unity of direction:- Manager will look after all the activities of its group 6. Subordination of individual interest to group interest:- there has to be reconciliation of individual interest with group interest, in no way the interest should dominate the group interest. 7. Unity of direction :- Manager will look after all the activities of its group.
20

Henry Fayol: principles of management


8. Remuneration of personnel: Employees should be given fair is reliable remuneration

9. Centralization :- small firms authority is centralized, in large firms authority is decentralized Centralization or decentralization of authority depends upon personal character of superior, his morality, reliability of resourcefulness.

10.Scalar chain :- Scalar chain is changing of superiors ranging from ultimate authority to lowest ranks. The communication flows from top to bottom.

11. Order :- right place for everything. The personnel are selected scientifically and assigned duties according to their qualifications & ability.

12. Equity :- Combination of fairness, kindness & justice. Experience and good manager can maintain equity, also it requires loyalty & devotion from subordinates. 13.Stability of tenure of personnel:- security of job is essential. Insecurity results in high labour turnover . The development of any organisation depends solely on sincerity of labouerers.
21

Henry Fayol: principles of management


14. Initiative :- Manager take decisions after taking suggestions from subordinates. Initiative is the keenest satisfaction of an intelligent man with experience.

15. Espirit De corps :- Union is strength or team spirit, if any difference of opinion, management should take corrective action. The management should not follow the policy of divide and rule. F.W.Taylor 1856-1916 Career:- apprentice in Philadelphia joined Midvale steel co in U.S.A, then did M.E (evening course) joined Bethlehem steel co. Taylor was an innovator of outstanding faithfulness his ideas brought system,order,logic to areas where rule thumb prevailed previously . Taylor:- Known as father of scientific management.
22

Scientific Management
Philosophy-Scientific selection and training of right workers for right job. Provide adequate working conditions, Monetary incentives. The workers are placed according to their qualifications and experience. Good physical working conditions lighting, ventilation restrooms,canteen,recreation, sanitation.

Managers and supervisions should accept responsibility for plannning,scheduling, guiding, and controlling.
Taylor Firmly believed that objective of management should be maximum property for employer, and maximum prosperity to each employee. Employer prosperity means Low cost but high returns employee prosperity means fair as well as high wages. Can be achieved their adaption of scientific management.
23

Principles of Scientific management


1.

Science not rule of thumb:- This mean replacement of old methods, This means it include allotment of fair work, standardization in work, adoption of differential piece rate of payment system. Harmony in group action:- peace & friendship in group action skillful people trying to perform at best
Co-operation:- Management & workers fair wages, higher productivity, substitution of war for peace. Mutual understanding and change in thinking are factors necessary for co-operation. Maximum output:- Division of work, responsibility shouldered by managements workers, proper tools, working condition should be favorable. Improvement of workers:- systematic training can shape the workers in relations to job assigned to them
24

2.

3.

4.

5.

Elements or features of scientific management


F.W Taylor's research features:1. Separation of panning from executive function:The planning function should be performed by supervisors and executive function to be assigned to workers.
2. 3.

Scientific task setting:- fair days work to be assigned to each worker. Functional foremanship:- specialization of functions performed by different employees. So planning and executive function are to be handled separately by skillful persons Work study :- systematic critical assessment of efficiency required to do the job. Methods study:- To save time and improve efficiency in handling raw materials transportation, inspection finished goods etc. Motion duty:- movement of machine operator at a particular speed with its machine is called motion study. Less time involved and optimum result.

4. 2.

6.

7.

Time study:- A standard time is fixed by conducting time study and evaluate the work process.
25

Elements or features of scientific management


8. Fatigue study:- The fatigue may be mental or physical health & efficiency should be preserved of workers work study includes:- methods of study, motion study, time study, & fatigue study. 9. Rate setting:- differential piece rate wage system may act as incentive to lazy & less efficient workers 10. Standardization:- In respect of tools & instruments working working conditions, cost of production etc. hours,

11. Scientific selections training:- Right persons for right job adequate training to be given to new as well as existing workers in order to update their knowledge .

12. Financial incentives:- Differential piece rate high wages for efficient workers
13. Mental revolution :- The success of scientific management rests on change in attitude of management & workers ,so as to co-operate with one another and give best results for individual & organization. 14. economic:- techniques of cost estimates and control, eliminate wastage, maximize profits are necessary.
26

Specific contribution of F.B Taylor

Application of principles of scientific Management.


Management & employees proper role & responsibility. Mental revolution or part of employers employee. Time study & motion study aspects. Separation of planning & executive function. Functional foreman concept invented by him.

27

PETER.F.DRUCKER:- Born in 1909 at-Vierra worked as economist in an international bank Contribution of Peter.F.Drucker 1) Nature of management:- Management is innovation, development of new ideas, combination of old and new ideas Management as a discipline:- it has tools, techniques approaches and skills Management as a profession:- It means achieving good results. 2) Functions of management manager has to determine the objectives & activities and is concerned with the direction and controlling of the activities. 3) Organization structure:- effective organization has three basic characteristics a. structure so as to give best results b.try to keep min number of managerial levels c. Provide a chance to upgrade the skill of young people.
28

4) Centralized control with a structure of decentralization Top management has more powers than various departments are allowed to take decisions within the limits set up by top management. 5) Management by objectives : MBO Drucker introduce in 1954 than modified by Schick and termed as management by result. Methods of planning, setting standards, Performance appraisal and motivation are correspondent of MBO. 6) Organizational change :- There are rapid changes in society due to rapid technological development dynamic organization accept changes.
29

BUREAUCRACY:- MAX WEBER (1864-1920)


Max weber framed rigid rules to eliminate managerial inconsistencies which lead to ineffectiveness. strict rules & regulation in an organization . Result in efficient form of organization:- termed as Bureaucracy Bureaucracy is based on principles of logic order and legitimate authority. Features of Bureaucratic organization 1. Functional specialization work divided in a pre-determined manner leads to specialization 2. Hierarchy of Authority:A clear defined hierarchy of authority needed to give commands for proper discharge of duties at various levels. 3. Rules & Regulations: Rules & Regulations are framed to ensure consistency in the performance of work, A special Training is provided to import knowledge of rules and procedures.
30

4. Rights & Duties Procedures are laid down for orderly performance of work 5. Technical competence: Qualification is prescribed for every job / positision

6. Fixation of procedure: Each Procedure fixed must be time tested and adoptable by persons.
7.Record Keeping :- Written Documents ,both draft form And original Document are preserved. 8. Impersonal Relations: Rewards to be given on efficiency, personal preference emotions and prejudices should not influence the functioning of an organization

Max Webers Bureaucracy:- Creates scope for proper channelization of human energy & mechanical energy. Bureaucracy is higher in governments and in army than in put business and social organization
31

Advantage of Bureaucracy
1. Specialization: Division of work leads to specialization 2. Employee Behavior:- Under Bureaucracy, Policies, rules & regulations are well framed and could be applied to any type of company, Employee behavior is kept under control, it facilitates the management to implementation any project. 3. Structure: To fix the duties and responsibilities maintains smooth Relationship among employees. 4. No Conflict: This avoids over lapping or conflicting of job duties. 5. Advance decision : Fixed criteria lead to clear decisions . 6. Optimum utilization of Human Resources. Decided Purely on Merit and expertise, maximum use of available resources. 7. Democracy:- All employees are treated equal. 8. Perpetual succession :- The continues ever through employee changes
32

Herry.L. Gantt (1861-1919)


-Introduced GANTT Task & Bonus PLAN -The relationship between production & cost & efficiency & Bureaucracy, -Proper Reward is given to those who reach a high level of production. GANTT founder of new Movement:- The new machine GANTT believe that justice and human behavior were important element in industrial relations. GANTT known by GANTT CHART referred to the process of work GANTT CHART shows the fact of actual performance of work against time required to complete the job. GANTT CHART :- A forerunner of PERT program evaluation & review technique. GANTT CHART :- Known as daily balance sheet chart. GANTT:- emphasized on human productivity & motivation levels.

GEORGE ELTON MAYO 1880-1949


Human Civilization entered machine after industrial revolution which lead to exploitation of workers. Either mayo emphasized that productivity is affected by desire, attitude and feelings of workers. He considered human relations and psychological needs of workers. Elton mayo was regarded as founder and father of modern sociological and psychological industrial research.

34

HAWTHORNE EXPERIMENTS
Hawthorne plant was a manufacturing telephone system bell. The objective of the experiment was to find out the behavior and attitude of employees under better working conditions. The benefits of the pensions and medical allowance were available to employees. Finding of Hawthorne experiment It opened new vistas in human behavior. Team spirit & motivation important at workplace. 1) social factors:- The social psychological characteristics of the workers determine the output levels & efficiency. Non financial incentives also affect the behavior of workers significantly and their productivity. 2) Group influence:- Group behavior influences the individual behavior. 3) Production level:- Decided by social norms but not by physiological capacities, in other words there is no direct relation production level and working conditions.

35

4) Motivation :- It is not merely by money but other working conditions. 5) Conflicts :- difference in managements workers group conflict may arise because of maladjustment of workers with management

6) leadership:- the superior is acceptable as a leader only because of his identification with group of objectives
7) Cordial relationship:- amicable relations with their co-workers, rather than earn more money, so work at par. 8) 9) Behavior of workers:- The informal group have their own norms and beliefs. supervision:- The friendliness and gaminess of supervisor.

10) communication:- Better communication leads to mutual understanding. 11) Reaction of workers:- Complaints & criticisms of workers taken care of
36

You might also like