3. Organization
Two or more people who work together in a structured
way to achieve a specific goal or set of goals.
Goals
The purpose toward which an effort is directed.
Organizations often have more than one goals, goals are
fundamental elements of organization.
The Role of Management
To guide the organizations towards goal accomplishment
4. Management
Management is the process of designing and
maintaining an environment in which individuals
working together in groups, efficiently accomplish
selected aims.
The planning, organizing, leading, and controlling of
human and other resources to achieve organizational
goals effectively and efficiently
6. Organizational Performance
Efficiency Effectiveness
A measure of how well or how
productively resources are used to
achieve a goal
A measure of the appropriateness of
the goals an organization is pursuing
and the degree to which they are
achieved.
It is defined as the output to input
ratio and focuses on getting the
maximum output with minimum
resources.
It constantly measures if the actual
output meets the desired output.
efficiency is all about focusing on the
process
effectiveness focuses on achieving the
‘end’ goal.
efficiency is about doing things right, it
demands documentation and
repetition of the same steps. Doing the
same thing again and again in the same
manner will certainly discourage
innovation.
effectiveness encourages innovation as
it demands people to think, the
different ways they can meet the
desired goal.
Organizations have to be both effective and efficient in order to be
successful.
7. Components of Management
Organisational activity – Management is a group
activity
Goal formation – management has some defined
goals
Organisational survival - manager has to use
resources available to them efficiently for the survival
of resources
Implementation – polices and programmes are
implemented by management
8. Nature of management
Management is multidisciplinary in nature
It draws ideas and concepts from various disciplines
Management is a continuous process
Management is a universal activity
It applicable to political, social, religious & educational
institutions
Management is a science as well as art
Management is dynamic and not stable
It has to adopt itself according to social changes
9. Nature of management
Management is a profession
It involve specialized training and is governed by ethical
code arising out of its social obligation
Management is a group activity
It concerned with group efforts and not individual
efforts
Management aims at obtaining wealthy results
Rational utilization of available resources to maximize
the profit is the economic function of a manager
10. Management implies skill and experience in getting
things done through people
Management is a system of authority
Management formalises a standard set of rules and
procedures to be followed by the subordinates and
ensures their compliance with the rules and regulations
Management is intangible
It cannot seen by eyes. It is evidenced only by the quality
of the organisation and the results
Management implies good leadership
A manager must have the ability to lead and get the
desired course of action from the subordinates
11. Scope of management
1) Functional areas of management
I. Financial management – forecasting, cost control,
budgetary control, financial planning etc.,
II. Human resource management – recruitment,
training, transfers, promotions, retirement,
termination, remuneration, labour welfare etc.,
III. Marketing management – marketing of goods, sales
promotion, advertisement and publicity, channel of
distribution etc.,
IV. Production management – production planning,
quality control and inspection, production techniques
etc.,
12. Cont.,
V. Material management – purchase of material, issue of
material, storage of materials, maintenance of records
etc.,
VI. Purchasing management – inviting quotations,
placing order, entering in to contract etc.,
VII. Maintenance management – proper care and
maintenance of buildings, plants, machinery etc.,
VIII. Office management – office layout, office staffing &
equipment of the office
13. Cont.,
2) Subject matter of management
Planning, organizing, staffing, directing and
controlling
3) Management is an inter disciplinary approach
Study of commerce, economics, sociology, psychology
etc.,
4) Principles of management – universal applications
5) Management is an agent of change
The techniques of management can be improved by
proper R &D
6) The essentials of management
Scientific method, human relations and quantitative
techniques.
15. Planning involves tasks
that must be performed to
attain organizational goals,
outlining how the tasks
must be performed, and
indicating when they
should be performed.
16. 1.Planning
Determining organizational goals and means to
reach them
Managers plan for three reasons
1. Establish an overall direction for the organization’s
future
2. Identify and commit resources to achieving goals
3. Decide which tasks must be done to reach those goals
17. Organizing means
assigning the planned tasks
to various individuals or
groups within the
organization and creating a
mechanism to put plans
into action.
18. 2. Organising
Process of deciding where decisions will be made,
who will perform what jobs and tasks, and who will
report to whom in the company
Includes creating departments and job descriptions
19. Leading (Influencing) means
guiding the activities of the
organization members in
appropriate directions.
Objective is to improve
productivity.
20. 3. Leading or Directing
Getting others to perform the
necessary tasks by motivating
them to achieve the
organization’s goals
Crucial element in all
functions
21. Steps involved in controlling
1. Gather information that measures recent
performance
2. Compare present performance to pre-established
standards
3. Determine modifications to meet pre-established
standards
Controlling is the Process by which a person, group, or
organization consciously monitors performance and takes
corrective action
22. Difference between administration and
management
Administration Management
It is higher level function
It refers to the owners of the
organisation
It is concerned with decision
making
It act through the
management
Administration lays down
broad policies and principles
for guidance
It is lower level function
It refers to the employees
It is concerned with
execution of decision
It act through the
organisation
Management executes these
policies into practice
23. Levels of Management
Top Level
Management
Middle Level
Management
Low level or Supervisory
Management
Non Management Employees
25. Top level management
President, Managing Director, Chief operating officer,
chief executive officer or chairman of the board
The main function of top management are
To formulate goals and policy
To formulate budgets
To appoint top executive
To provide overall direction and leadership of the
company
To decide the distribution of profits etc.,
26. Middle level management
Department head, project leader, plant manager or
division manager
The main function of middle level manager are:
To monitor and control the operating performance of
the sub units
To train, motivate and develop supervisory level
Implement changes or strategies generated by top
manager
To coordinate among themselves so as to integrate the
various activities of a department
27. Lower level or supervisory management
They are directly responsible for the work of operating
employees.
The main function of lower level of management :
To train and develop the efficiency of the workers
To assign jobs to workers
To give order and instructions
To maintain discipline and good human relations among
workers
To report feedback information about workers
28. What Is a Manager’s Responsibility?
Manager
The individual responsible for achieving
organizational objectives through efficient and
effective utilization of resources.
The Manager’s Resources
Human, financial, physical, and informational
Performance
Means of evaluating how effectively and efficiently
managers use resources to achieve objectives.
29. Role of manager
Interpersonal roles
Informational roles
Decision roles
30. 1-30
Interpersonal Roles
Roles that managers assume to provide direction and
supervision to both employees and the organization as a
whole.
Figurehead— performing ceremonial and symbolic
duties, such as greeting visitors and signing legal
documents.
Leader— Motivate, training, counsel and communicating
with subordinate.
Liaison—linking and coordinating the activities of people
and groups both inside and outside the organization.
31. 1-31
Informational Roles
Roles involve receiving, collecting and disseminating
information.
Monitor—analyzing information from both the internal
and external environment.
Disseminator—transmitting information to influence the
attitudes and behavior of employees.
Spokesperson—using information to positively influence
the way people in and out of the organization respond to it.
32. 1-32
Decisional Roles
Roles associated with making choices.
Entrepreneur—deciding which new projects or programs to
initiate and to invest resources in.
Disturbance handler—managing an unexpected event or
crisis.
Resource allocator—assigning resources between functions
and divisions, setting the budgets of lower managers.
Negotiator—reaching agreements between other managers,
unions, customers, or shareholders.
33. Types of Managers
General Managers
Supervise the activities of several departments.
Functional Managers
Supervise the activities of related tasks.
Common functional areas:
Marketing/Sales/Product Development
Operations/Production/Services Delivery
Finance/Accounting
Human Resources/personnel management
Infrastructure (IT, Real Estate, Legal)
Project Managers
Coordinate employees across several functional departments to
accomplish a specific task.
34. 1-34
Managerial Skills
Conceptual skills
The ability to analyze and diagnose a situation and
distinguish between cause and effect. This skill also
called as design and problem solving skill.
Human skills
It is mainly concerned with understanding of people.
The ability to understand, alter, lead, and control the
behavior of other individuals and groups.
Technical skills
Job-specific skills required to perform a particular
type of work or occupation at a high level.
36. Evolution of Management Thought
Pre-scientific or
pre classical
management
period
Classical theory
1. Scientific
management
2. Administrative
management
3. Bureaucratic
Model
Neo-classical
Theory or
Behavior Theory
Modern approach
1. System
approach
2. Contingency
approach
37. Pre-scientific or pre classical
management period
1.Robert owen (1771-1858)
2.Charles Babbage (1792-1871)
3. Henry Robinson Towne (1844-1924)
38. 1.Robert owen (1771-1858)
He is owner of a group of textile mills in Scotland.
He is the promoter of co-operative and trade union
movement in England.
He believed that the worker performance in industry
was influenced by the working condition and
treatment of workers.
He introduced new ideas of human relation, such as
shorter working hours, housing facilities, training of
workers in hygiene, education of their children,
provision of canteen etc.,
He came to be regarded as the father of personal
management.
39. Charles Babbage (1792-1871)
He is father of modern computing.
He was a professor of Mathematics at Cambridge
university.
He found that manufacturers made a little use of
science and mathematics.
He advocated the use of accurate observation,
measurement and precise knowledge for taking
business decisions.
His idea anticipated the concept of profit sharing to
improve the productivity
40. 3. Henry Robinson Towne (1844-1924)
He was the president of famous lock manufacturing
company “Yale and Town”
He advised the combination of engineer and
economist as industrial managers.
in addition to some skill as accountant, is essential for
successful management of industrial workers.
41. Classical Management Perspective
This theory developed during the industrial revolution
when new problem related to the factory system.
Manager s were unsure of how to train employees or
deal with increased labour dissatisfaction
Scientific management theory
Administrative management theory
Bureaucratic management theory
42. Scientific Management
Concerned with improving the performance of individual
workers (i.e., efficiency).
Grew out of the industrial revolution’s labor shortage at the
beginning of the twentieth century.
The major contributors are
Frederick W.Taylor
Henry Gnatt
Frank Gilbreths and Lillian Gillbreths
43. Frederick W.Taylor
He was the father of scientific management, served
with Bethlehem steel plant.
He tried to analyses the causes of low efficiency
He pioneered the time and motion study where by
Work task is broken into its various motion, is
improved by eliminating unnecessary motions
44. Frederick W.Taylor approach was based
on four basic principles:
Study each part of the task scientifically and develop
the best method to perform it.
Carefully select workers and train them
Co-operate fully with the workers to ensure they use
the proper method
Divide work and responsibility
45. Elements of scientific management
Planning the task
Supervisor should do the planning
Workers only concentrate on doing the work
Scientific task and rate setting (work study)
Method study, motion study, time study, fatigue study
and rate setting
Scientific selection and training
Workers should be selected scientifically by a central personnel
department
A worker should be physically and technically most suitable for
the selected post
After selection worker should be given proper training which
makes them more efficient and effective
46. Standardization
Standards must be maintained in respect of the
equipments and tools, materials, period of work, amount
of work, working condition, cost of production etc.,
Specialization
Route clerk, Instruction card clerk, time and cost clerk,
shop disciplinarian, Gang boss, speed boss, repair boss
and Inspector
Financial incentives
It can motivate the workers to put up their maximum
efforts
Wages should be based on individual performance
47. Economy
Scientific management enhances profit and economy
It can be achieved by making the resources more
productive as well as eliminating the wastages
Mental revolution
Scientific management is based on cooperation
between management and workers
Cooperation enhances the effective managerial
activities
48. Henry Gantt (1861-1919)
He developed Gantt chart, a bar graph that measures
planned and completed work along each stage of
production
His interest include a unique pay incentive system and
the social responsibility.
unique pay incentive system was aimed at providing
extra wages for extra work besides guarantee of
minimum wages
49. Frank Gilbreths and Lillian Gillbreths
In frank’s early career as an apprentice bricklayer
He was interested in standardization and method
study
He noticed that some workers were slow and
inefficient, while others were more productive.
He isolated the basic movements necessary to do the
job and eliminated unnecessary motions.
Workers using these movements raised their output
from 1000 to 2700 per day.
50. Administrative Management
Scientific management focused on the productivity of
individuals.
Administrative Management theory concentrate on
developing organizational structure that leads to high
efficiency and effectiveness.
Henry fayol is French mining engineer, identified 14
principles based on his experience
He is also called as father of modern theory of
general and industrial management.
51. Administrative management theory
Henri Fayol (1841-1925)
Fourteen principles:
Division of work
Authority and responsibility
Discipline
Unity of command
Unity of direction
Subordination of the
individual interest to the
general interest
Remuneration
Centralization
Scalar chain
Order
Equity
Stability
Initiative
Espirit de corps
(team spirit)
52. Bureaucratic management theory
Max Weber (1864–1920)
His theory of bureaucracy is based on a rational set of
guidelines for structuring organizations.
Three types of authority
1. Traditional –Subordinate obedience based upon
custom or tradition (e.g., Kings, queens, chiefs)
2. Charismatic – subordinate obedient based on special
personal qualities (e.g. Gandhi, N.S.C.Bose, Martin
Luther king)
3. Rational –legal- subordinate obedient based upon the
position held by superior (Executive, supervisor etc.,)
53. Bureaucratic management theory
based on following characteristics
A well defined hierarchy
Division of labour and specialization
System of written rules and regulation
Impersonal relationships between mangers and
employees
Selection and evaluation system
Records
54. Neo-classical Theory or
Behavior Theory
This theory pointed out the role of psychology and
sociology in understanding of individual and group
behavior in an organization
The contributors are
Mary Parker Follett
Elton mayo
Hawthorne studies
Abraham Maslow
55. Elements of behavioral
The individual – it allows labour to participate in
decision making and problem solving primarily increase
productivity
Work group – it recognizes the vital effect of group
psychology and behavior on motivation on productivity
Participate management - focuses its attention on the
worker and its employee oriented
56. Mary Parker Follett (1868-1933)
She felt that mangers needed to coordinate and
harmonize group effort rather than force and compel
them.
She identified the principle of ‘power with’ rather than
‘power over’
Finding a solution to a conflict that would satisfy both
parties.
57. Hawthorne studies
One series of studies was conducted from 1924 to 1932
at the western Electric company in chicago.
1. Illumination experiments
2. Relay assembly test room experiments
3. Bank wiring test room experiments
4. Mass interview programme
58. Physical Needs
Need for Security
Need for Social Relations
Need for Self Esteem
Self-Actualization
Maslow’s Hierarchy of
Needs
59. Comparing Theories
Classical
Behavioral
Management
Science
Systems
Theory
Attempts to develop the best way to manage in all organizations by
focusing on the jobs and structure of the firm.
Attempts to develop a single best way to manage in all
organizations by focusing on people and making them productive.
Recommends using math (computers) to aid in problem solving
and decision making.
Manages by focusing on the organization as a whole and the
interrelationship of its departments, rather than on individual
parts.
Sociotechnical
Theory
Recommends focusing on the integration of people and
technology.
Contingency
Theory
Recommends using the theory or the combination of theories that
best meets the given situation.
61. Organization and environmental factors
External environmental factors
Technology
Economic conditions
Political factors
Socio cultural factors
62. Trends and challenges of
management in global scenario
1. Workforce diversity
2. Changing employee expectation
3. International environmental
4. Building organizational capabilities
5. Job design and organizational structure
6. Changing psycho-social system
7. Technological advance
8. Management of human relations
9. Change in legal environment
10. Expanding globalization