Human resource management

1. Management and
Organization

2. Important Questions
1. Is Management an art or a science? Put our argument.
2. Identify and briefly explain the four basic management functions in organization.
3. Define Management and Industrial Management.
4. What are the scopes of Industrial Management?
5. Describe Henri Fayols principles of management.
6. Who is referred to as the father of scientific management?
7. What is scientific Management?
8. Briefly describe the scope of scientific Management.
9. Depict different managerial skills and skills distribution at various levels of managers.
10. What is the goal of scientific management?
11. How will you evaluate a manager’s performance?
12. What are the different responsibilities of manager in effective management?-Explain.
13. Are management and administration different? How will you resolve their technological
conflict?
14. How would a manager’s performance be evaluated?
15. How might the various managerial skills relate to different managerial roles?-Explain.

3. Management is the process of achieving goals and objectives effectively and
efficiently through and with the people.
"Management is a process of designing and maintaining an environment in which
individuals work together in groups to effectively and efficiently accomplish
selected aims".
1
2
Goal
Definition

4. Management is the process of achieving organizational goals and
objectives effectively and efficiently by using management
functions i.e.
• Planning
• Organizing
• Staffing
• Controlling
3
Management is a set of activities directed at an organization's
resources with the aim of achieving organizational goals in an
efficient and effective manner.
4
Definition

5. These definitions when expanded have
these implications:
• Management is thus a continuous effort aimed at shaping an
organization and contributing to its overall growth.
• The functions of managers include planning, organizing, staffing, leading
and controlling.
• These functions are essential to any kind of organization.
• It applies to managers at all hierarchical levels.
• The aim of managers is to increase productivity, effectiveness and
efficiency.

6. Elements of definition
• Process - represents ongoing functions or primary activities engaged in
by managers
• Efficiency - getting the most output from the least amount of inputs
• “doing things right”
• concerned with means
• Achieving the objectives in time
• Effectiveness - completing activities so that organizational goals are
attained
• “doing the right things”
• concerned with ends
• Achieving the objectives on time

7. Goals
Low
Waste
High
Attainment
Means
Efficiency
Ends
Effectiveness
Efficiency and Effectiveness
Resource
Usage
Goal
Attainment
FOM 1.9

8. FUNCTIONS OF MANAGEMENT
5 main or principal functions:-
1.Planning 2.Organizing 3.Staffing 4.Coordinating 5.Controlling

9. Management: Science or Art?
Science is a collection of systematic knowledge, collection of truths and inferences after
continuous study and experiments. It has fundamental principles discovered.
Art uses the known rules and principles and uses the skill, expertise, wisdom, experience to
achieve the desired result.
Management is both art and science.
Management has got two faces like a coin; on one side it is art and on the other it is science.
Management has got scientific principles which constitute the elements of Science and Skills
and talent which are attributes of Art.

10. Management in the Past
• Management existed, but…..
• Often hereditary (usually male…)
• One-trial learning
• But, some thought about management

11. The employee today
• Man does not live by bread alone
• Nor does he work for bread alone
• A new breed of employee
• Has different values, needs, motivations
• Is better educated, more sophisticated, more aware of political,
social, and economic developments

12. Historical Background of Management
• Ancient Management
• Egypt (pyramids) and China (Great Wall)
• Venetians (floating warship assembly lines)
• Adam Smith
• Published “The Wealth of Nations” in 1776
• Advocated the division of labor (job specialization) to increase the
productivity of workers
• Industrial Revolution
• Substituted machine power for human labor
• Created large organizations in need of management

13. The Industrial Revolution
• A long-term process, not a single event
• Protestant Work ethic
• Political changes (American, French revolutions)
• Invention of steam power
• Some important figures:
• Adam Smith (1776)
• James Watt, Eli Whitney

14. The Industrial Revolution – New Technology
• Manufacturing
• Steam engines
• Cotton gin
• Mass production through standardization and specialization
• Transportation
• Steam powered ships
• Railroads
• Communications
• Telegraph

15. The industrial revolution and rise of the factory
(England, 1750)
• Small entrepreneurial organization before industrial revolution
• Advances in technology fueled the Industrial Revolution in England
• The invention of the steam power was particularly important
• Steam power enabled the opening of large textile mills where the cloth was made on
powered looms
• The introduction of factory led to the need to organize work through specialized tasks
workers
• Adam Smith wrote of the advantages of the division of labor in The Wealth of Nations

16. Industrial revolution (cont’d)
• The growth of factories also required the organization and supervision
of workers
• Workers came to work in factories instead of working at home
• Small factories could be managed by the owners, but larger factories
required hiring supervisors
• Supervisors were generally promoted from the ranks of workers due to
their technical skills as well as there peacekeeping skills.

17. Large Organizations and New Approaches to Management
• Economic transformation
• Previously – family farms, small workshops
• After Industrial Revolution – large organizations, requiring management
skills
• New demands on management
• Need for professional managers (as opposed to owners)
• Need to plan, structure, and schedule activities
• Push to efficiency
• Need for worker training and socialization to factory work

18. Professionalism of Management
 Education: Late 19th Century Business taught in
high schools/commercial schools = bookkeeping
+ secretarial skills.
 Wharton (1881) – accounting, economics and law
 University of Chicago & UC (Berkley), 1889 –
undergrad schools of commerce
 NYU & Dartmouth (Amos Tuck), 1900
 Harvard (1908) -focus on educating managers of
large firms – commercial law, accounting and
general commerce. Electives: Management in
transportation, industry, marketing.

19. First Management Issues of Industry
• How do we efficiently organize people at work
with these new technologies of production and
large markets?
• How do we hire, pay, and coordinate people at
work to gain productivity?
• How do we do all of these to create economic
wealth (profit)?

20. The Beginning of Management – Pay?
 1886 – Henry Towne, Pres. of Yale and Town
Manufacturing Co., “The Engineer as Economist:” How do we relate work to
increasing economic development?
 Gain sharing” or “Towne Plan” – Link profits to worker’s pay: Wage rate +
performance incentive– All savings in costs were shared with workers.
 Halsey Plan: Sharing profits does not work.
Bosses hide profits. Pay people on basis of a wage + 1/3rd pay incentive for
higher productivity.
 1938 – Fair Labor Standards Act set min. wage at 25¢/hr

21. 1. CONCEPT OF INDUSTRIAL MANAGEMENT
•Industrial management is the organizational process that
includes strategic planning, setting; objectives, managing
resources, deploying the human and financial assets needed
to achieve objectives, and measuring results.
•Management also includes recording and storing facts and
information for later use or for others within the
organization. The concept of management planning involves
direction, planning, adjustment, control, and cooperation.
•Management functions are not limited to managers and
supervisors. Every member of the organization has some
management and reporting functions as part of their job.

23. 2. SCOPE OF INDUSTRIAL MANAGEMENT
The scope of Industrial relations includes all aspects of
relationships such as bringing cordial and healthy labour
management relations, creating industrial peace and
developing industrial democracy.
•By safeguarding the interest of workers.
•By fixing reasonable wages
•By providing good working conditions
•By providing other social security measures
•By maintaining healthy trade unions
•By collective bargaining

25. 3. NEED OF INDUSTRIAL MANAGEMNT

26. 4. APPLICATIONS OF INDUSTRIAL MANAGEMENT

27. Scientific Management
• Bottom- up approach
• Focus on efficiency, primarily in industrial settings
• Today:-industrial engineering, production management
• Key players:
• Frederick W. Taylor
• Frank and Lillian Gilbreth

28. Scientific Management
• Fredrick Winslow Taylor
• The “father” of scientific management
• Published Principles of Scientific Management (1911)
• The theory of scientific management
• Using scientific methods to define the “one best way” for a job to be done:
• Putting the right person on the job with the correct tools and equipment.
• Having a standardized method of doing the job.
• Providing an economic incentive to the worker.

29. Frederick Winslow Taylor
“Father of Modern Management”
 In 1895- proposed a Piece Rate System:
 Observe & Analyze – set the “standard” for job (use Time and Motion studies)
 Pay workers for meeting/exceeding standard
 Pay individual worker – not everyone, or group/department, or the “job” = pay
according to individual value to business
 What Adam Smith had done for markets, Taylor does for the firm place wealth
creation squarely on the individual worker who is managed, rewarded for
effort.

30. Frederick Taylor – Cont.
 Biography: Wealthy Philadelphia Quaker family
Worked in hydraulics factory as laborer/foreman/chief engineer
 At 25 earned college degree in engineering
 At 35- consultant: introduced functional foreman,production planning,
differential pay= cut costs/increased production)
 1905 – wrote Shop Management
 1909-14: Lecturer at Harvard
 Management consultant – US Navy and Army
 1911- Wrote Scientific Management

31. Frederick Taylor – Cont.
 “Soldiering” – people don’t always
try/work hard. WHY?
 If we work hard and complete the job – no
more work next day; fewer workers needed!
 SO what is the amount of time needed to do
the job?
 How should it be performed – “One Best Way”
 What is the standard?

32. F. W. Taylor and Scientific Management
• Worked at Midvale Steel (beginning as a common laborer,
rising to chief engineer, in 6 years)
• Identified “soldiering”
• Workers doing less than they were capable of
• Due to lack of training, fear of losing work or rate cuts
• Began with time study and incentive plans
• Pig iron study: the right shovel for each job

33. Frank and Lillian Gilbreth: The One Best Way
• Focus on work simplification and efficiency
• Reduce time and fatigue (Frank)
• Involve workers (Lillian)
• “The One Best Way”
• Therbligs

34. Scientific management
• Frederick W. Taylor (1856-1915) wrote The Principles of Scientific Management,
published in 1911.
Taylor stated that it was the responsibility of management to:
• Determine the one best way to do each job through precise, objective
measurement.
• Select the ‘best person’ for the job
• Train the ‘best person’ and the ‘best way’ of doing each job
• Provide a proper day’s wage for a proper day’s work as a incentive for
high performance. (There was abundant labor available, most managers
didn’t care that much about whether or not their workers were
satisfied.
• Assumed the goals of the individual and the organization to be the same

35. 6. TAYLOR’S SCIENTIFIC MANAGEMENT
The scientific management approach propounded by F.W. Taylor is based upon the
following four principles:
(1) Science, Not Rule of Thumb:
This principle says that we should not get stuck in a set routine with the old
techniques of doing work, rather we should be constantly experimenting to develop
new techniques which make the work much simpler, easier and quicker.
(2) Harmony, Not Discord:
As per this principle, such an atmosphere should be created in the organization that
labour (the major factor of production) and management consider each other
indispensable.
Taylor has referred to such a situation as a ‘Mental Revolution’. Taylor firmly believed
that the occurrence of a mental revolution would end all conflicts between the two
parties and would be beneficial to both of them.

37. 6. TAYLOR’S SCIENTIFIC MANAGEMENT
(3) Cooperation, Not Individualism:
According to this principle, all the activities done by different people must be carried
on with a spirit of mutual cooperation. Taylor has suggested that the manager and
the workers should jointly determine standards. This increases involvement and thus,
in turn, increases responsibility. In this way we can expect miraculous results.
(4) Development of Each and Every Person to His / Her Greatest Efficiency and
Prosperity:
According to this principle, the efficiency of each and every person should be taken
care of right from his selection. A proper arrangement of everybody’s training should
be made.
It should also be taken care that each individual should be allotted work according to
his ability and interest. Such a caring attitude would create a sense of enthusiasm
among the employees and a feeling of belongingness too.

39. Fayol’s Principles of Management
Henri Fayol
(1841-1925)
He has proposed that there are six primary functions of management
and 14 principles of management, Forecasting, Planning, Organizing,
Commanding, Coordinating, controlling
There are 14 Principles of Management described by Henri Fayol.
Principles of Management

40. 1. Division of Labor
Work of all kinds must be divided & subdivided and allotted to various persons
according to their expertise in a particular area.
2. Authority & Responsibility
Authority refers to the right of superiors to get exactness from their subordinates.
Responsibility means obligation for the performance of the job assigned.
Note that responsibility arises wherever authority is exercised
14 Principles of Henri Fayol

41. 3. Unity of Command
A sub-ordinate should receive orders and be accountable to one and only one boss
at a time.
He should not receive instructions from more than one person
4. Unity of Direction
People engaged in the same kind of business or same kind of activities must
have the same objectives in a single plan.
Without unity of direction, unity of action cannot be achieved.

42. 5. Equity
Equity means combination of fairness, kindness & justice.
The employees should be treated with kindness & equity if devotion is expected of
them.
6. Order
This principle is concerned with proper & systematic arrangement of things and
people.
Arrangement of things is called material order and placement of people is called social
order.

43. 7. Discipline
Discipline means sincerity, obedience, respect of authority & observance of rules and
regulations of the enterprise.
Subordinate should respect their superiors and obey their order.
8. Initiative
Initiative means eagerness to initiate actions without being asked to do so.
Management should provide opportunity to its employees to suggest ideas,
experiences& new method of work.

44. 9. Remuneration
Remuneration to be paid to the workers should be fair, reasonable, satisfactory & rewarding
of the efforts.
It should accord satisfaction to both employer and the employees.
10. Stability of Tenure
Employees should not be moved frequently from one job position to another
i.e. the period of service in a job should be fixed.

45. 11. Scalar Chain
Scalar chain is the chain of superiors ranging from the ultimate authority to the lowest.
Communications should follow this chain. However, if following the chain creates delays,
cross-communications can be allowed if agreed to by all parties and superiors are kept informed.
12. Sub-ordination of Individual Interest to common goal
An organization is much bigger than the individual it constitutes therefore interest of the undertaking
should prevail in all circumstances.
The interests of any one employee or group of employees should not take precedence over the interests
of the organization as a whole.

46. 13. Espirit De’ Corps
It refers to team spirit i.e. harmony in the work groups and mutual understanding
among the members.
Espirit De’ Corps inspires workers to work harder.
14. Centralization
Centralization refers to the degree to which subordinates are involved in decision
making. Whether decision making is centralized (to management) or decentralized
(to subordinates) is a question of proper proportion. The task is to find the
optimum degree of centralization for each situation.

47. 7. FAYOL’S PRINCIPLES OF MANAGEMENT

48. Theory X
• Average worker is lazy
• Dislikes work
• Will try to do as little as possible
• Have little ambition and avoid
responsibility
Theory Y
• Workers are not inherently lazy
• Do not naturally dislike work
• If given the opportunity, will do what is
good for the organization.
• Theory X and Y Douglas McGregor

49. 8. DOUGLAS MC- GREGOR’S THEORY X AND THEORY Y
•Assumptions of Theory X
•An average employee intrinsically does not like work and tries to escape it whenever
possible.
•Since the employee does not want to work, he must be persuaded, compelled, or
warned with punishment so as to achieve organizational goals. A close supervision is
required on part of managers. The managers adopt a more dictatorial style.
•Many employees rank job security on top, and they have little or no aspiration/
ambition.
•Employees generally dislike responsibilities.
•Employees resist change.
•An average employee needs formal direction.

51. 8. DOUGLAS MC- GREGOR’S THEORY X AND THEORY Y
•Assumptions of Theory Y
•Employees can perceive their job as relaxing and normal. They exercise their
physical and mental efforts in an inherent manner in their jobs.
•Employees may not require only threat, external control and coercion to work, but
they can use self-direction and self-control if they are dedicated and sincere to
achieve the organizational objectives.
•If the job is rewarding and satisfying, then it will result in employees’ loyalty and
commitment to organization.
•An average employee can learn to admit and recognize the responsibility. In fact, he
can even learn to obtain responsibility.
•The employees have skills and capabilities. Their logical capabilities should be fully
utilized. In other words, the creativity, resourcefulness and innovative potentiality of
the employees can be utilized to solve organizational problems.

53. 8. DOUGLAS MC- GREGOR’S THEORY X AND THEORY Y
McGregor views Theory Y to be more valid and reasonable than Theory X.
Thus, he encouraged cordial team relations, responsible and stimulating jobs,
and participation of all in decision-making process.
Implications of Theory X and Theory Y
Quite a few organizations use Theory X today. Theory X encourages use of
tight control and supervision. It implies that employees are reluctant to
organizational changes. Thus, it does not encourage innovation.
Many organizations are using Theory Y techniques. Theory Y implies that the
managers should create and encourage a work environment which provides
opportunities to employees to take initiative and self-direction. Employees
should be given opportunities to contribute to organizational well-being.
Theory Y encourages decentralization of authority, teamwork and
participative decision making in an organization. Theory Y searches and
discovers the ways in which an employee can make significant contributions
in an organization. It harmonizes and matches employees’ needs and
aspirations with organizational needs and aspirations.

55. Organization
Organizations are groups of people, with ideas and resources, working
toward common goals.
OR
A systematic arrangement of people brought together to accomplish some
specific purpose is called organization.
People
Deliberate
Structure
Distinct Purpose
Characteristics of Organization
Basics of Management

56. Manager
A manager is someone whose primary responsibility is to carry out the management
process within an organization to achieve the organizational goals.
Changing nature of organizations and work has blurred the clear lines of distinction
between managers and non-managerial employees
Managerial Skills
Primary Skills
• Conceptual Skill
• Technical Skill
• Human Skill
Secondary Skills
• Design Skill
• Communication Skill
• Leadership Skill

57. Managerial skills
Conceptual skills:
• This refers to the ability to think and conceptualize abstract situation.
• These abilities are required for making complex decisions.
In short it is:
• The mental capacity to develop plans, strategies and vision
Human or interpersonal skills:
• This includes the ability to understand other people and interact effectively with them. The
human skills are also important in creation of an environment in which people feel secure and
free to express their opinions.
In short it is:
• The ability to work with other people in teams

58. Technical skills:
• These skills include the knowledge, abilities of and proficiency in activities involving
methods, processes and procedures in the relevant fields as accounting,
engineering, manufacturing etc.
Or in short:
• The ability to use the knowledge or techniques of a particular discipline to attain
ends
Design skills:
• These skills enable a manager to handle and solve any kind of unforeseen or actual
problems, that may crop up in the organization. Such problems could arise due to
internal factors or external factors and/or both.
In short it is:
• The problem solving skill

59. Communication skills:
• The abilities of exchanging ideas and information effectively. To understand others and let
others understand comprehensively.
Leadership skills
• The abilities to influence other people to achieve the common goal.

60. Skill distribution at various management
levels

61. Roles of manager
Role: a set of expectation for one’s behavior
In 1960, Henry Mintzberg conducted a study to understand about the managerial roles. He
identified 10 managerial roles that are common to all managers. These 10 managerial roles
are grouped under: Interpersonal, decisional, and informational roles.
Roles of Manager
Interpersonal
• Figurehead
• Leader
• Liaison
Informational
• Monitor
• Disseminator
• Spokesperson
Decisional
• Entrepreneur
• Disturbance handler
• Resource allocator
• Negotiator

62. A: Inter-personal Role
1.Figurehead: Represents the company on social occasions. Attending the flag hosting
ceremony, receiving visitors or taking visitors for dinner etc.
2.Leader: In the role of a leader, the manager motivates, encourages, and builds enthusiasm
among the employees. Training subordinates to work under pressure, forms part of the
responsibilities of a manager.
3.Liaison: Consists of relating to others outside the group or organization. Serves as a link
between people, groups or organization. The negotiation of prices with the suppliers regarding
raw materials is an example for the role of liaison.
Roles of manager

63. Roles of manager
B: Decisional Role:
1.Entrepreneur: Act as an initiator and designer and encourage changes and innovation,
identify new ideas, delegate idea and responsibility to others.
2.Disturbance handler: Take corrective action during disputes or crises; resolves conflicts
among subordinates; adapt to environmental crisis.
3.Resource allocator: Decides distribution of resources among various individuals and groups in
the organization.
4.Negotiator: Negotiates with subordinates, groups or organizations- both internal and
external. Represents department during negotiation of union contracts, sales, purchases,
budgets; represent departmental interests

64. Roles of manager
Informational role:
1.Monitor: Emerges as nerve center of internal and external information about Information.
2.Disseminator: Transmits information received from other employees to members of the
organization.
3.Spokesperson: Transmits information to the people who are external to the organization, i.e.,
government, media etc. For instance, a manager addresses a press conference announcing
a new product launch or other major deal.

65. Functions of management
Planning
1 Planning is the process of setting goals, and charting the best way of action for achieving
the goals. This function also includes, considering the various steps to be taken to
encourage the necessary levels of change and innovation.
Organizing
2
Organizing is the process of allocating and arranging work, authority and resources, to
the members of the organization so that they can successfully execute the plans.
Staffing
3 A: Staffing is the process of filling the positions in the organization and keeping them
filled.
B: Staffing is the process of recruiting and selecting the right person for the right job at
the right time in the right place.
Leading
4 Leading involves directing, influencing and motivating employees to perform essential
tasks. This function involves display of leadership qualities, different leadership styles,
different influencing powers, with excellent abilities of communication and motivation.
Controlling
5 Controlling is the process of devising various checks to ensure that planned performance
is actually achieved. It involves ensuring that actual activities conform to the planned
activities. Monitoring the financial statements, checking the cash registers to avoid
overdraft etc., form part of this process.

67. Levels of management
1. Top Level:
• Top management sets the mission and goals, develops policies, evaluates the overall
performance of various departments, responsible for the business as a whole and is
concerned mainly with long-term planning
2. Middle Level:
• Middle level management develops departmental goals, executes the policies, plans and
strategies determined by top management , develops medium- term plans and supervises
and coordinate lower-level managers’ activities
3. Lower (Supervisory, frontline) Level:
• Lower level management takes charge of day-to-day operations, is involved in preparing
detailed short-range plans, is responsible for smaller segments of the business, executes
plans of middle management , guides staff in their own subsections and keep close control
over their activities

68. First-Line Management
Foreman, Supervisors, Office Managers
Middle Management
Plant Managers, Division Managers,
Department Managers
Top
Management
President, CEO,
Executive
Vice Presidents
Levels of management
Non- Managerial Employees

69. Planning
Planning
Planning
Organizing
Organizing
Organizing
Staffing
Staffing
Staffing
Directing
Controlling
Directing
Directing
Controlling
Controlling
Top
Managers
Middle
Managers
First-Line
Managers
Least
Important
Most
Important
Importance of management functions to
managers in each level