1

Text Book

MANAGEMENT
Concepts & Cases
2012
Presentation By

PROF. DR. KHAWAJA AMJAD

SAEED
Principal, Hailey College of Banking &

Sectio
Particulars
n
1
Text Book
2

Articles by Prof. Dr.

Khawaja Amjad
Saeed
Cases by South
Asian Scholars

Number
22
Chapters
Six (7)

Twelve
(12)
3

1.
2.
3.
4.
5.
6.
7.
8.
9.

Management as a Discipline
Schools of Management Thought
Corporative Management
Managers Role and Impact of External
Environment
Corporate Planning
Deposit, Credit and Profit Planning
Organizing as Part of Management
Line and Staff Authority Relationship
Decentralization and Delegation
4

10. Functional

Specialization

11. Staffing
12. Motivation
13. Leadership
14. Communication
15. Controlling
16. Feedback

and Control Mechanism

17. Special Control Techniques
5

18. Management

Information System
19. Organization Conflicts and their
Resolution
20. Islamic Approach to Management
21. TQM (Total Quality Management)
22. Case Study Approach

1.
2.
3.
4.
5.
6.
7.

Human Resource Management &

Development
Sharing Productivity Gains: A Survey of
Incentive Plans Globally Practiced
Knowledge Management: Some
Dimensions
The Rise of Reengineering
Promoting CSR: What needs to be done
Motivation: Islamic History (Compiled)
Developing Talent for HRM
7

1
.
2
.
3
.
4
.
5

Decision Making

Entrepreneurship

Personnel
Management
Industrial Relations

Managing Change

1
8

Chapter No. 1
CONSTITUENTS
1.
2.
3.
4.
5.
6.

Prelude
Development
Evolution
Management Education in Pakistan
Definitions
Management Vs Administration
9

Chapter No. 1
CONSTITUENTS
Pyramid Approach
8. Management Function Levels
9. Groups
10. Job
11. As Science or Art
12. Principles
7.

10

CHAPTER NO. 1: MANAGEMENT AS A DISCIPLINE

AMPLIFICATION
1. Prelude
- Egyptians
- Chinese
- Military
- History (1750-21st Century)
2. Development
- Barter
- Industrial & Commercial
Revolutions

11

CHAPTER NO. 1: MANAGEMENT AS A DISCIPLINE

3. Evolution
- Upto 1889
- 1890-1914
- 1915-1940
- 1941-1960
- 1960-2000
- 21st Century

12

CHAPTER NO. 1: MANAGEMENT AS A DISCIPLINE

4. Management Education in
Pakistan
- 1955-1972
- 1973-1985
- 1986-2000
- 21st Century
5. Definitions
- Dale S. Beach
- Newman & Summer
- President AMA

13

CHAPTER NO. 1: MANAGEMENT AS A DISCIPLINE

6.

7.

Management Vs Administration

Pyramid Approach
1=

Top

2=

Middle

3=

Lower
14

CHAPTER NO. 1: MANAGEMENT AS A DISCIPLINE

8. Management Function levels

- Strategic Planning
- Management Control
- Operations Cost
9. Groups
- University Scholars
- Management Practitioners
- Legislatures
- Union Leaders
15

CHAPTER NO. 1: MANAGEMENT AS A DISCIPLINE

10. Job
- Planning
- Organizing
- Assembling Resources
- Directing
- Controlling
11. As Science or Art
- Art-Desired Results
- Science: Systematic body of
knowledge
16

CHAPTER NO. 1: MANAGEMENT AS A DISCIPLINE

12.
-

Principles
Efficiency
Educating
Research
Social Objectives

17

Chapter No. 2
CONSTITUENTS
Inretrospect
2. Impact of Industrialization
3. Stages: Management Thought (10)
- Pre-Scientific
- Scientific
- Administrative
- Functional
1.

18

Chapter No. 2
CONSTITUENTS
3. States: Management Thought (10)
- Behavioral
- Management Science
- Systems
- Welfare
- Contingency
- Program Orientation

19

Chapter No. 2
CONSTITUENTS
4. Management Theories
-X
-Y
-Z
-C
20

CHAPTER NO. 2: SCHOOLS OF MANAGEMENT THOUGHT

AMPLIFICATION
1. Inretrospect
- Early Influence
- Scientific Management
- Human Relation Management

21

CHAPTER NO. 2: SCHOOLS OF MANAGEMENT THOUGHT

2. Impact of Industrialization
- Primitive Tribal
- Slavery
- Serfdom
- Handicraft
- Cottage Factory
- Modern Industrial Systems

22

CHAPTER NO. 2: SCHOOLS OF MANAGEMENT THOUGHT

3. States: Development of
Management Thought (10)
a) Primitive Tribal
James Watt & Boulton
Robert Owen
Charles Babbage
Henry Varnon Poor
Henry Robinson Towny
23

CHAPTER NO. 2: SCHOOLS OF MANAGEMENT THOUGHT

3. States: Development of
Management Thought (10)
b) Scientific Management
F W Taylor
Frank Gilberth & Lillian Gilberth
Henry L. Gantt
Harrington Emerson

24

CHAPTER NO. 2: SCHOOLS OF MANAGEMENT THOUGHT

3. States: Development of
Management Thought (10)
c) Administrative Management
School of
Thought
Henri Fayol
Six Components
Five functions
25

CHAPTER NO. 2: SCHOOLS OF MANAGEMENT THOUGHT

3. States: Development of
Management Thought (10)
d) Functional Approach
Five functions
Fifty aspects (5 X 10 = 50)
Correlated with business
functions

26

CHAPTER NO. 2: SCHOOLS OF MANAGEMENT THOUGHT

3. States: Development of
Management Thought (10)
e) Behavioral School
Elton Mayo
Hawthornes Experiments
Other Contributions
f) Management Science School
Mathematical Models
OR
27

CHAPTER NO. 2: SCHOOLS OF MANAGEMENT THOUGHT

3. States: Development of
Management Thought (10)
g) Systems Approach
3 Steps
h) Welfare
Uplift of
Physical
Hygienic
Social
Educational

28

CHAPTER NO. 2: SCHOOLS OF MANAGEMENT THOUGHT

3. States: Development of
Management Thought (10)
h) Welfare
Scope
Health
Wash up
Lockers
Recreation
Libraries
Schools

29

CHAPTER NO. 2: SCHOOLS OF MANAGEMENT THOUGHT

3. States: Development of
Management Thought (10)
h) Welfare
Scope
Disability
Group Insurance
Pension
Legal Aid

30

CHAPTER NO. 2: SCHOOLS OF MANAGEMENT THOUGHT

3. States: Development of
Management Thought (10)
i) Contingency Approach
Dynamics and Complex Interrelations
Behavior of other Members
Variables (7)

31

CHAPTER NO. 2: SCHOOLS OF MANAGEMENT THOUGHT

3. States: Development of
Management Thought (10)
j) Program Orientation
Planning Phase
Operational Phase
Future Orientation Phase

32

CHAPTER NO. 2: SCHOOLS OF MANAGEMENT THOUGHT

4. Management Theories
- Theory X
- Theory Y
- Theory Z
- Theory C

33

Chapter No. 3

1.

CONSTITUENTS

Major Differences in Management Practices

Styles
American
Japanese
Asian
Perspectives
Decision Making
HRM Practice
Power, Authority & Interpersonal
34
Relations

CHAPTER NO. 3: COMPARATIVE MANAGEMENT

AMPLIFICATION
1.
2.

Major Differences in Management Practices

- See Table 3-1
Management Styles
- Focus
Achievement Orientation
Risk
- Comparison
American
Indian
Islamic
35
- Table 3-2

CHAPTER NO. 3: COMPARATIVE MANAGEMENT

3.

4.
5.

Successful Business Tips

- US Experience
- Eight Tips
- US Successful Corporations: 8 Actions
- American Management Styles: 16 Tips
- Kaizan
Management Teachings of Lord Budha
- 10 Guidelines
Confucious Thoughts
- Positives-7
- Negatives-8

36

CHAPTER NO. 3: COMPARATIVE MANAGEMENT

6.
7.
8.

Demining Management
- 14 Points
McKinseys Seven
- 7 Points
The Turned-on Organizations
- Focus
Enthusiastic Customers
Financial Performance
Inspired People
8 Points
37

CHAPTER NO. 3: COMPARATIVE MANAGEMENT

9.

Management in the 21st Century

- Environment
- Social Responsibility & Ethics
- Globalization
- Financial Management
- HRM
- Organizational Changes
- Innovations

38

Chapter No. 4
CONSTITUENTS

Skills of a Manager
2. Managers External Environment
3. Understanding of External Environment
- PEST
Political
Economic
Sociological
Technological
1.

39

Chapter No. 4

CONSTITUENTS
Business Ethics
5. Banking Sector: Changing Outlook
4.

40

CHAPTER NO. 4: MANAGER'S ROLE & IMPACT OF EXTERNAL ENVIRONM

AMPLIFICATION
1. Skills of a Manager
- Technical
- Human
- Conceptual
2. Managers External Environment
PEST

41

CHAPTER NO. 4: MANAGER'S ROLE & IMPACT OF EXTERNAL ENVIRON

3. Understanding of External
Environment
- Political
- Economic
- Sociological
- Technological
Follow the matrix
42

CHAPTER NO. 4: MANAGER'S ROLE & IMPACT OF EXTERNAL ENVIRON

4. Business Ethics
- High Ethical Standards
- Discharge of Responsibility
Honestly
5. Banking Sector: Changing
Outlook
- Deregulation
- Divesture
- SBP Role
- Consumer Financing

43

CHAPTER NO. 4: MANAGER'S ROLE & IMPACT OF EXTERNAL ENVIRON

5. Banking Sector: Changing

Outlook
- Non-Performing Loans
- Mergers

44

Chapter No. 5
CONSTITUENTS
1.
2.
3.
4.
5.
6.
7.

Planning Concept
Why Plan
Planning Process
Objective Setting
Stated Objectives
Illustrations of Objectives
Limitations of Planning

45

Chapter No. 5
Strategic, Tactical & Operational
Planning
- Strategies
- Annual Planning Cycle
- Requirements for Financial Control
System
9. Charter for Improving the
Performance of Nationalized
Commercial Banks
8.

46

Chapter No. 5
10. MBO

- Concept
- Process
Setting Goals
Action Plan
Self Control
Periodic Review
Implementation Tasks
Success Stories

47

CHAPTER NO. 5: CORPORATE PLANNING

AMPLIFICATION
1. Planning Concept
- Future Course of Action
- Four Types: Time Frame
ST
IT
LT
Perspective (LLT)

48

CHAPTER NO. 5: CORPORATE PLANNING

2. Why Plan
- Belief
- Control Facilitated
- Future Progress
3. Planning Process
- Objective
- Opportunities
- Course of Action

49

CHAPTER NO. 5: CORPORATE PLANNING

3. Planning Process
- Feedback
Review
Revision
4. Objectives Setting
- Internal
Profit
Growth

50

CHAPTER NO. 5: CORPORATE PLANNING

4. Objectives Setting
- Internal
Market Penetration
Leadership
Productivity
- External
Client Satisfaction
Social Needs

51

CHAPTER NO. 5: CORPORATE PLANNING

5. Stated Objectives
- Stated Vs Hidden
- Sources
Charters
Annual Reports
PR Announcement
Others
- Hierarchy
Organizational
Divisional

52

CHAPTER NO. 5: CORPORATE PLANNING

5. Stated Objectives
- Hierarchy
Departmental
Sectional
6. Illustrations
- Nationalizations
- Life Insurance Nationalization

53

CHAPTER NO. 5: CORPORATE PLANNING

7. Limitations
- Hierarchy
- Future
- Reluctance to Change
- Revision
- Cost-High
- Emergencies-difficult to anticipate

54

CHAPTER NO. 5: CORPORATE PLANNING

8. Strategic, Tactical and Operational

Planning
- See Table 5-3
- Strategies
Four Dimensions
Five features
General and Specific
Strategies
APC-Six Steps
55

CHAPTER NO. 5: CORPORATE PLANNING

8. Strategic, Tactical and Operational

Planning
- Strategies
Financial Control System
Eight (8) Steps
Three (3) Pre-requisites
9. Charter for NCBs Improvement
- Five Aspects
- See Tables 5-3, 5-4
56

CHAPTER NO. 5: CORPORATE PLANNING

10. MBO
- Participates
- Process
Goals Setting
Action Plan
Self Control
Periodical Review
Implementation-Eight (8)
tasks
Success Stories of 14 Large

57

Chapter No. 6
CONSTITUENTS
1.
2.
3.
4.
5.
6.

Deposits
Credit
Review of NIB
Financial Instruments
Management of Advances
Benefits of Profit Planning
58

Chapter No. 6
CONSTITUENTS
Pre-requisites of Profit Planning
8. Concept of Projections
9. Time Horizons
7.

59

CHAPTER NO. 6: DEPOSIT, CREDIT & PROFIT PLANNING

AMPLIFICATION
1. Deposits
- Composition
- Size
- Current Position
2. Credit
- Size
- Disclosure
Earlier
Now

60

CHAPTER NO. 6: DEPOSIT, CREDIT & PROFIT PLANNING

3. NIB
- 12 Instruments
4. Management of Advances
- Principles
Safely
Desirability
Profitability
- Assumptions
61

CHAPTER NO. 6: DEPOSIT, CREDIT & PROFIT PLANNING

5. Benefits of Profit Planning

- Economical use of resources
- Efficiency is promoted
- Review of progress
6. Pre-Requisites of Profit Planning
- Structure with definitions
- Comprehensive Planning
- BEP
62

CHAPTER NO. 6: DEPOSIT, CREDIT & PROFIT PLANNING

7. Concept of Projections
- Combination of Judgment &
quantitative data
- Factors affecting it
8. Time Horizon
- SR-Annual
- Intermediate run-three years
- LR: 5 to 10 years
- Prospective: 15 20 years
63

Chapter No. 7
CONSTITUENTS
1.
2.
3.
4.
5.
6.

Definition of Organization
Constituents of an Organization
Steps in Organizing Process
Functions of an Organization
Role of Bureaucracy
Formal & informal Organizations
64

Chapter No. 7
CONSTITUENTS
Organization Chart
8. Organization Manual
9. Organization Design
10. Organizational Structure in Banks
11. Organizational Changes
7.

65

CHAPTER NO. 7: ORGANIZING AS PART OF MANAGEMENT

AMPLIFICATION
1. Definition of

Organization

- Group of individuals
- Cooperating under executive
leadership
- To accomplish a common goal
2. Constituents of an Organization
- Structure
- Process

66

CHAPTER NO. 7: ORGANIZING AS PART OF MANAGEMENT

3. Steps in the Organization Process

- Identifying activities
- Group activities
- Assignment of activities
- Delegating authority
4. Functions of an Organizations
- Efficiency
- Communication
67

CHAPTER NO. 7: ORGANIZING AS PART OF MANAGEMENT

4. Functions of an Organization
- Satisfaction
- Identity
- Innovation
5. Role of Bureaucracy
- Max Weber (8 points)
- Vertical Dimension
- Horizontal Dimension
68

CHAPTER NO. 7: ORGANIZING AS PART OF MANAGEMENT

6. Formal & Informal Organization

- Formal
- Informal
7. Organization Chart
- Constituents
Hierarchy
Departmentalization
Inter-relationships
69

CHAPTER NO. 7: ORGANIZING AS PART OF MANAGEMENT

7. Organization Chart
- Constituents
Lines of Communication
Network
Authority
Responsibility
Accountability
Types
General
Auxiliary

70

CHAPTER NO. 7: ORGANIZING AS PART OF MANAGEMENT

7. Organization Chart
- Constituents
Drawbacks
8. Organizational Manual
- Contents
Objectives
Job Description
Organizational Procedures
Management terms
- Benefits
71

CHAPTER NO. 7: ORGANIZING AS PART OF MANAGEMENT

9. Organizational Design
- Concept
- Areas of Influence (5)
- Section (4)
10. Organizational Structure in Banks
- NCBs
- Levels
- Foreign Banks
- Financial Institutions
72

CHAPTER NO. 7: ORGANIZING AS PART OF MANAGEMENT

11. Organizational Changes

- Growth & Decay
- Environmental Impact
- Technology
- Personnel
- Catalysts
- Domino Effect

73

Chapter No. 8
CONSTITUENTS
1.
2.
3.
4.
5.
6.

Line Organization
Line & Staff Organization
Rationale for Differentiation
Between Staff and Line
Line Relationship
Staff Relationship
Types of Staff
74

Chapter No. 8
CONSTITUENTS
Line and Staff Conflict
8. Making the Staff Personnel Work
Properly
9. Is the concept valid for obsolete
today
7.

75

CHAPTER NO. 8: LINE & STAFF AUTHORITY RELATIONSHIP

AMPLIFICATION
1. Line Organization
- Names
Scalar
Military
Departmental
Vertical
- Pure Line of Organization
- Departmental Line Organization
76

CHAPTER NO. 8: LINE & STAFF AUTHORITY RELATIONSHIP

2. Line & Staff Organization

- Staff Specialists Advice
- Advice Provided to Line Mangers
- Can recommend without Authority
3. Rationale for Differentiation
- Services of Specialist
- Effective Control
- Maintain Accountability
77

CHAPTER NO. 8: LINE & STAFF AUTHORITY RELATIONSHIP

4. Line Relationships
- Chain of Command
- Chain of Communication
- Vehicle of Accountability
5. Staff Relationship
- Purely Advisory
- Assistance

78

CHAPTER NO. 8: LINE & STAFF AUTHORITY RELATIONSHIP

6. Types of Staff
- Personnel Staff
- Specialist Staff
7. Line & Staff Conflict
- Blame Line Staff
- Implementation
- Encroachment
- Description Defied
- No Proper use of Staff
79

CHAPTER NO. 8: LINE & STAFF AUTHORITY RELATIONSHIP

8. Making the Staff Personnel Work

Properly
- Work as a Team
- Improve Relationships
9. Is the Concept Valid or Obsolete
Today
- Be based on Functional
Responsibilities
- Clarity in Defining Relationship
80

Chapter No.9
CONSTITUENTS
1.
2.
3.
4.
5.

The Problem
Degree of Decentralization-The Act
of Measurement
Centralization Vs. decentralization
Operationalzing Decentralization
The concept of Delegation Authority.
81

Chapter No.9
CONSTITUENTS
Principles of Delegation
8. Reasons for Inadequate Delegation
9. Toward Effective Delegation System
7.

82

CHAPTER NO. 9: DECENTRALIZATION & DELEGATION

AMPLIFICATION
1. The Problem
- Centralization Vs. Decentralization
- Decentralization
More Democratic
Greater Freedom of Spirit
Less Authoritative
- Review Table 9-1
83

CHAPTER NO. 9: DECENTRALIZATION & DELEGATION

2. Degree of Decentralization: The Art

of Measurement
- Issues
Authorities
How far down the line?
Consistency
- Review Table 9-2

84

CHAPTER NO. 9: DECENTRALIZATION & DELEGATION

3. Centralization Vs. Decentralizations

- Advantages of Centralization
Leadership
Integration
Uniformity of Action
Tackling Emergencies
Others
85

CHAPTER NO. 9: DECENTRALIZATION & DELEGATION

3. Centralization Vs. Decentralizations

- Advantages of Dectralization
Motivation
Development of Managers
Coordination
Diversification
Innovation
Developmental Activities
86

CHAPTER NO. 9: DECENTRALIZATION & DELEGATION

4. Operationalzing Decentralization
- Top level Support
- Work Independently
- Communication
- Feeling of Independence
- Competitive Spirit
- Appropriate Control
87

CHAPTER NO. 9: DECENTRALIZATION & DELEGATION

5. The concept of Delegation of

Authority
- Giving Authority to Others
- For accomplishing of Assignments
- Characteristics of Delegation
- Note Six Points (Page 93)

88

CHAPTER NO. 9: DECENTRALIZATION & DELEGATION

6. Principles of Delegation
- Functional Definition of Activities
- Visualize Expected Results
- Authority and Responsibility to
Coexist
- Follow unity of Command
- Responsibility cannot be Delegated

89

CHAPTER NO. 9: DECENTRALIZATION & DELEGATION

7. Reasons for Inadequate Delegation

- Attitude of Supervisor
- Desire to Influence
- Absence of Democratic Leadership
Style
- Subordinates not Competent
- With-holding of Authority
- Managerial Shortcomings Exposed
90

CHAPTER NO. 9: DECENTRALIZATION & DELEGATION

8. Toward Effective Delegation System

- Communication-Open System
- Proper Control Techniques
- Intelligent Planning
- Open Work Climate
- Define Authority & Responsibility
- Confidence in Performance
91

Chapter No.10
CONSTITUENTS
1.
2.
3.
4.
5.
6.

Specialization in Historical
Perspective
Rationale for Specialization
Role of Functional Specialist
Problems of Specialization
Problems of functional Specialization
International Experiences

92

Chapter No.10
CONSTITUENTS
Functional Organization
8. Functional Authority
9. Specialization in Banking fields in
Pakistan
7.

93

CHAPTER NO. 10: FUNCTIONAL SPECIALIZATION

AMPLIFICATION
1. Specialization in Historical
Perspective
- Division of Labour
- Adam Smith
2. Rationale for Specialization
- Physical Limitation
- High Skills Required
- Efficiency

94

CHAPTER NO. 10: FUNCTIONAL SPECIALIZATION

3. Role of Functional Specialist

- Sales and Service
- Production
- Finance
- Procurement of goods and services
- Personnel
- Research and Development

95

CHAPTER NO. 10: FUNCTIONAL SPECIALIZATION

4. Problems of Specialization
- Complexity of Modern Techniques
- Diversity of tasks and persons
needed
to carry them out

96

CHAPTER NO. 10: FUNCTIONAL SPECIALIZATION

5. Problems of Functional
Specialization
- Boring Work
- Monotonous Environment
- Element of Fatigue
- Anxiety Created by the above
Factors
Leads to Dissatisfaction,
Resulting in
Lower Output and
Reduction in the
Quality of
Product or Service Rendered.
97

CHAPTER NO. 10: FUNCTIONAL SPECIALIZATION

6. International Experiences
- North America
- Highly Specialized Jobs
- Scope
Assembly Lines
Offices
Professions

98

CHAPTER NO. 10: FUNCTIONAL SPECIALIZATION

7. Functional Organization
- Pattern of Executive Specialization
- Benefits
Specialization
Operational Efficiency
Economic Flexibility
Coordination

99

CHAPTER NO. 10: FUNCTIONAL SPECIALIZATION

8. Functional Authority
- Superior Delegates Authority
Subordinates
- Role of Specialists
- Authority to Specialist

100

CHAPTER NO. 10: FUNCTIONAL SPECIALIZATION

9. Specialization in Baking Fields in

Pakistan
- Commercial Banks
- Development Banks
- Investment Banks
- Multiple Functions
- Fundamental Issues
Need for Specialization
Continuity of Present Set up
New Specialized Institution
101