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Arun Mishra
Definitions of Management
Harold
Koontz & Heiz Weihrich defined management as the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims. Louis E. Boone & David L. Kurtz defines management as the use of people and other resources to accomplish objectives.
Definitions of Management
Delton E. McFarland defines management as
a process, by which managers create, direct, maintain, and operate purposive organizations through systematic, coordinated, cooperative human efforts. Mary Parker Fellot termed management as the act of getting things done through people.
Management?
Management is a set of activities including
planning and decision making, organizing, leading, and controlling, directed at an organizations resources (human, financial, physical, and information) with the aim of achieving organizational goals in an efficient and effective manner.
aspects of management:
following
staffing, leading & controlling. Management is essential to all kinds of organizations. Management is necessary at all levels hierarchy. The goal of all managers is to accomplish the objective of creating surplus. The aim of managers is to improve productivity, efficiency ad effectiveness.
In the 19th century - Industrial revolution - Mass production - Huge capital - Ownership separated from management
20th century - World war I - Limited resources available - Need for solution to use them in an optimum way - World War II added to the problem Thus, the issue of managing complex and huge business and growing competition forced us to develop systematic management concepts and principles
workers Published many books and papers Studied M.E (Masters of Engineering) His experiments are divided into
Principles of scientific management
3.
4.
5. 6.
7.
8.
Separation of planning and doing-Supervisor plans, worker only carries out the task Functional foremanship- 4 types of supervisors for planning aspect, while 4 for supervision aspect of the work Job Analysis- best way to do a job Standardisation of process, period and amount of work, working conditions, tools used etc Scientific selection and training of workers Financial incentives Economy- optimum usage of resources an eliminate or reduce wastages Mental revolution cooperation between workers and the management
than management point of view Human aspect of the work was sidelined- workers got aggressive resulting in unhealthy competition Increased authoritarian approach in industriesstrict supervision Financial incentives exploited the workers (Differential piece rate system)
Used
the term- Administration instead Management Divided industrial organisation into 6 groups Technical Commercial Financial Security
of
Accounting
Managerial
acquaintance to subjects not related to functions performed Technical- pertaining to the function performed, eg, production Experience- arising through work
To take advantage of specialisation, every worker/ manager works on a same part/function. It increases the accuracy, ability and speed of work.
2. Authority and responsibility
Both are related. Authority arises out of a managers position and responsibility, out of assignment of activity. Acc, to Fayol, there should be parity (equality) between both.
3. Discipline
It can be self imposed, or commanded. Disciple by command arises through company policies.
4. Unity in command
A person should get orders from only one superior. This increases clarity, reduces conflict and builds a personal responsibility for results If it is violated, discipline is lost, importance of authority decreases and stability is threatened.
5. Unity of direction
Each group of activities with same objective, must have only one plan and one head. Unity in command defines the reporting relationship, while unity in direction defines the grouping of activities. It ensures better coordination among activities.
Interest of the organisation is more important than the interest of one/few employees, when there is a conflict between the two. Hence, superiors should be the ideals, supervise employees continuously and also have a fair agreement with them.
7. Centralisation
An organisation must have a proper balance of centralisation and decentralisation, depending on its size, activities, objectives, employees etc.
8. Remuneration
Should be fair to both- employee and employer In line with cost of living and value of employee Fayol did not advocate profit sharing plan for workers, but for managers
9. Scalar chain
It is the flow of authority or command, through which every communication, must pass In special circumstances, this flow can be shortcircuited in situations, when the scalar chain of communication is non feasible. This is done, using a gang plank
10. Order
This refers to arrangement of things and people in an organisation - A place for everything and everything in place Similarly, the right person must be placed at the right position. This demands for precise knowledge of human requirement and resources
11. Equity
combination of justice and kindness It should be maintained in behaviour treatment towards employees
and
Employee should be given a minimum job security at least This ensures that he is given time to adjust to new work and succeed in it.
13. Initiative
Managers must encourage employees to take initiative, within the limits of their authority. It increases the zeal and energy in the employee
14. Espirit de Corps
Union is strength Managers must encourage the team spirit among the employees Erring employees must be given oral directions and not asked for a written explanation
out at the Western Electric Company, in the United States of America that started in the early 1920s. In the approaches by Taylor and Fayol, the human element in the organisation was not stressed upon. The elements in these approaches were not giving evoking positive results. The Western Electric Company, Chicago had Hawthorne plant that manufactured telephone bell system The company was progressive, with sickness and pension benefits In spite of this, there was a dissatisfaction among workers.
with the lighting or illumination and its effect on productivity, showed no clear correlation between light level and productivity. Experiment II: A girls group was chosen who worked in the telephone relay assembly department. 5 types of changes introduced over a period of time and productivity measured after every change. Experiment III: 20,000 interviews conducted in two years to determine employees attitude towards company, work, supervision, waged, insurance, incentives etc. Experiment IV: 14 male workers were employed and hypothesis was that they would produce more in order to earn more. It was proved wrong due to 4 reasons given by workers for a lesser output.
Salient Features
Focus on individual, his needs and behavior
satisfaction Conflict in an organization is always destructive and should be always avoided. Based on Hawthorne experiments. People behavior as a individual may be different than his behavior in a group.
Salient Features
Emphasis
on improving the working condition, interpersonal relation, supervisory styles and communication systems. People working in the organization may have different goals but it is the work of management to guide them toward the common goal. People working in the organization form their own informal groups and these groups have a significant influence on the attitude and values of people.
Recap!
Bureaucratic Approach Max Weber
Taylor Administrative Management Theory Henry Fayol Human Relations Approach Elton Mayo
Overview of Scientific, Administrative & Bureaucratic Approaches Focuses on the individual workers productivity
Telephone Company. He saw organizations as social systems that required human cooperation. He believed that managers major roles were to communicate and stimulate subordinates to high levels of effort. He also introduced the idea that managers have to examine the environment and then adjust the organization to maintain a state of equilibrium.
connected Scientific Management with Human Relations. Felt that executives serve two primary functions:
Must establish and maintain a communications
system among employees. Must establish the objectives of the organization and motivate employees.
Developed an acceptance theory of authority:
style (theory z)
Quantitative Approach
Characterized
by its use of mathematics, statistics, and other quantitative techniques for management decision making and problem solving. This approach has four basic characteristics:
1. A decision-making focus 2. Development of measurable criteria 3. Formulation of a quantitative model 4. The use of computers
Decision-Making Focus
The primary focus of the quantitative approach is
on problems or situations that require direct action, or a decision, on the part of management.
Quantitative Approach
Measurable Criteria
The decision-making process requires that the
decision maker select some alternative course of action. The alternatives must be compared on the basis of measurable criteria.
Quantitative Model
the stated criteria, a quantitative model of the decision situation must be formulated.
Computers
Computers are quite useful in the problem-solving
process.
flow of material in plants. In Operation Management Focus is on organization such as hospitals, banks, government & the military.
certain limitations: Does not deal with the people aspect of an organization!!! Unfamiliar with advanced quantitative tools!!
arranged in a manner that produces a unified whole. An approach to problem solving based on an understanding of the basic structure of systems.
Open systems Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments
Feedback
INPUT TRANSFORMATION OUTPUT
Products/Services, Profit/Loss
Companies use inputs such as labour, funds, equipment, and materials to produce goods or to provide services and they design their subsystems to attain these goals.
There
is no one universally applicable set of management principles (rules) by which to manage organizations.
are individually different, face different situations (contingency variables), and require different ways of managing. that managers are responsible for determining which managerial approach is likely to be most effective in a given situation. requires managers to identify contingencies in a given situation. the key
Organizations
Asserts
This
which clearly departs from one of the approach of traditionalist. It is more flexible, although draw heavily other approaches. Allows managers to apply principles those approaches selectively appropriately.
best
to
management and employees. Career paths are non-specialized with life-long job rotation as a central feature of career development. Decision making is shared at all levels. Performance appraisal is long term (ie the first appraisal takes place 10 years after joining the company). There is a strong sense of collective responsibility for the success of the organization. And cooperation effort rather than individual achievement is encouraged.
Management Challenges
Increasing number of global organizations.
superior efficiency, quality, innovation, and responsiveness. Increasing performance while remaining ethical managers. Managing an increasingly diverse work force. Using new technologies.
Henry L. Gantt
A colleague of Taylors at Bethlehem Steel
Works
Implemented a wage incentive program.
Gantts incentive system provided bonuses for
workers who completed their jobs in less time than the standard.
Initiated a bonus plan for supervisors. Developed planning and control techniques
46
using a simple graphic bar chart , The Gantt Chart, to display relationships between planned and completed work on one axis and elapsed time on the other.
47
The Gilbreths
Frank and Lillian Gilbreth refined Taylors
methods.
Made
Break down each action into components. 2. Find better ways to perform it. 3. Reorganize each action to be more efficient.
Gilbreths also studied fatigue problems,
Behavioral Management
Focuses on the way a manager should
personally manage to motivate employees. Mary Parker Follett: an influential leader in early managerial theory.
Suggested
workers help in analyzing their jobs for improvements. The worker knows the best way to improve the job. If workers have the knowledge of the task, then they should control the task.
Rigidly structured
Hypothesis driven
Facts
Facts are the foundation of problem solving. Facts
aid in the development of a sound hypothesis, and then provide the evidence needed to support or refute it. Facts compensate for the lack of instinct a consultant must face since he or she does not have a lifetime of experience in the industry on which to draw. Facts also bridge the credibility gap, lending respect to the analysis of newcomers. Hiding from the facts is only a recipe for failure, because sooner or later, the truth will show itself. Thus, a successful consultant will find the facts and use them to his or her advantage.
MECE
One
of the most fundamental tenants of McKinsey problem solving is the concept of MECE, mutually exclusive, collectively exhaustive. MECE can be used when developing and listing issues related to the problem at hand. First, the associate must ensure that the list is mutually exclusive, or that every item is separate and distinct. Then, he must check that it is collectively exhaustive, that it includes every issue relevant to the problem. This approach prevents overlap and confusion.
process is the initial hypothesis (IH). The initial hypothesis serves as a roadmap toward the solution. It is the solution that seems most probable early in the engagement, after the group has brainstormed using their knowledge of the situation, but before they have spent a lot of time gathering additional information and analyzing. The initial hypothesis may or may not prove correct, but it will provide a starting point from which to work and it will guide the research and early data analysis.
Any Questions.?????