This chapter talks about "the basic of management"

1. A Global and Entrepreneurial Perspective
MANAGEMENT

2. PRINCIPLES OF MANAGEMENT
Sr. No. Chapter No. Chapter Heading
1 1 Management: Science, Theory and Practice (27th September 2010)
2 4 Essentials of Planning and Managing by Objectives
3 5 Strategies, Policies and Planning Premises
4 6 Decision Making
5 7 The Nature of Organizing, Entrepreneuring, and Reengineering
6 8 Organization Structure: Departmentation
7 9 Line/ Staff Authority, Empowerment and Decentralization
8 10 Effective Organizing and Organization Culture
9 14 Human Factors and Motivation
10 15 Leadership
11 16 Committees, Teams and Group Decision Making
12 18 The System and Process of Controlling
Sessional Evaluation External Evaluation
15 15 20 50 50
Quiz per Class Assignment & Presentation Mid-term Total Sessional External Exam

3. Chapter 1
Management: Science, Theory and
Practice

4. TABLE OF CONTENTS
1. Definition of Management: Its nature and purpose
2. Managing: Science or Art
3. The Evolution of Management Theory
4. Patterns of Management Analysis: A management
Theory Jungle
5. The Systems approach to management process
6. The functions of Managers

5. 1. Definition of Management
 Management is the process of designing and
maintaining an environment in which individuals
working together in groups, efficiently accomplish
selected aims.
 Organization is a group of people working
together to create a surplus. In business
organizations, this surplus is profit, other wise it
may be satisfaction of needs etc

6. Steve Jobs At Apple Bill Ford Jr at
Ford Motors
Jack Welch at GE
Bill Gates at Microsoft
Obama , US

7. Functions of Management

8. External Elements that affect operations:
economic, Technological, social, ecological, political and ethical factors
Enterprise: A business, government agency, hospital, university or any other type
of organization
Managerial Functions at Different organizational levels:
Managerial functions are performed by managers, executives, administrators,
supervisors etc in their specific roles but the time spent in performing these
functions is different at different levels, as shown in the picture
Managerial Skills at Different Organizational levels:
Four Managerial skills may be listed down;
Technical, Human, Conceptual and Design Skills.
These skills are critical for the managers at different levels
As shown in the picture, higher the level,
higher is the importance of Conceptual skills and like wise

10. PRODUCTIVITY, EFFECTIVENESS AND
EFFICIENCY
 PRODUCTIVITY:
 The output- input ratio within a time period with due
consideration for quality
 Productivity = Outputs/ Inputs (within a time period, quality considered)
 Inputs are Labor, material and capital
 EFFECTIVENESS:
 It is the achievement of objectives
 EFFICIENCY:
 Achievement of the ends with the least amount of
resources

11. 2. MANAGING: SCIENCE OR ART
 Managing as practice is an art; the
organized knowledge underlying is a
science

12. 3. EVOLUTION OF MANAGEMENT THOUGHT
1. Frederick Taylor and Scientific
Management
2. Henri Fayol, The father of Modern
Management Theory
3. Elton Mayo and F.J. Roethlisberger and
the Hawthorne Studies

13. Frederick Taylor and Scientific
Management
 Taylor’s principles of scientific management were
published in 1911. These were:
 Replacing rule of thumb with science (organized
knowledge)
 Obtaining harmony, rather than discord, in group action
 Achieving cooperation of human beings rather than
chaotic individualism
 Working for maximum output, rather than restricted
output
 Developing all workers to the fullest extent possible for
their own and their company’s highest prosperity

14. HENRY FAYOL, THE FATHER OF
MODERN MANAGEMENT THEORY
 Henri Fayol, the father of modern
management theory, gave 14
principles of management, noting that
they are flexible and usable in all
organizational settings, some are as
follows:
 Authority and Responsibility
 Unity of Command
 Scalar chain
 Espirit de corps (in union is strength)

15. ELTON MAYO & F.J. ROETHLISBERGER
AND THE HAWTHORNE STUDIES
 Hawthorne studies were conducted to understand the
effect of light and other factors on workers and productivity.
 After Mayo continuing the experiments realized that
changing illumination for the test group, modifying rest
periods, shortening workdays and varying incentive pay
systems did not have a direct impact on productivity
 He found in general, the change in productivity was due to
social factors such as; morale, satisfactory
interrelationships and effective management.
 Interpersonal skills such as motivating, counseling, leading
and communicating were the majors factors which played
part in improving productivity.
 The phenomenon of being “noticed” has been named as
“Hawthorne Studies”

16. 4. PATTERNS OF MANAGEMENT ANALYSIS:
A MANAGEMENT THEORY JUNGLE
 The management roles approach
 The management process, or operational approach

17. THE MANAGERIAL ROLES
APPROACH
 Given by Henry Mintzberg of McGill University
 He explained that the managers have 10 roles which may be
categorized as follows:
 Interpersonal Roles:
 The figurehead role (the representative)
 The leader role
 The liaison role (with outsiders)
 Informational Roles
 The recipient role (receiving info from outside)
 The disseminator role (passing info)
 The spokesperson role (transmitting info outside the org)
 Decision Roles:
 The entrepreneurial role
 The disturbance-handler role
 The resource – allocator role
 The negotiator role

18. THE MANAGERIAL ROLES
APPROACH
 Criticism on Mintzberg:
 The sample containing five CEOs was far too small for the study
 Managers do some tasks other than managerial tasks like
relationship building etc
 Most of the activities are directly related to the primary managerial
functions themselves

19. THE MANAGEMENT PROCESS, OR
OPERATIONAL APPROACH
 The management process or operational, approach
draws together the pertinent knowledge of
management by relating it to the managerial job.

20. The systems approach to the
management process
 The enterprise receives inputs, transforms them and
exports the outputs to the environment
INPUTS
TRANSFORMATION
PROCESS
Outputs
Re-energizing the
System
External
Environment

21. Managerial Knowledge, Goals
of claimants, and use of Inputs
Planning
Organizing
Staffing
Leading
Controlling
To produce Outputs
CommunicationRe-energizing the
System
Goal Inputs:
Employees, Consumers,
Suppliers, Stock holders,
Governments, Community etc
Inputs:
Human, Capital,
Managerial,
Technological
Outputs:
Products, Services,
Profits, Satisfaction, Goal
Integration, Others
External
Variables
and
Information:
Opportunities,
Constraints
and others

22.  INPUTS AND CLAIMANTS:
 Inputs are people, capital, managerial skills, technical knowledge
and skills
 THE MANAGERIAL TRANSFORMATIONAL PROCESS:
 The task of managers is to transform the inputs, in an effective
and efficient manner into outputs
 THE COMMUNICATION SYSTEM:
 It integrates the managerial functions
 Effective leadership and motivation in the employees could only
be gained by communication
 It helps in corrective measures after identification of errors
through communication
 It also links the enterprise with the external environment
 It helps in identification of customer needs
 It helps awareness of the competition and other potential threats

23.  EXTERNAL VARIABLES:
 OUTPUTS
 Products, services, profits, satisfaction, integration of the
goals of claimants to the organization
 REENERGIZING THE SYSTEM
 The transformation of output into the inputs such as
knowledge or skills, profits, capital goods etc

24. THE FUNCTIONS OF MANAGERS
 PLANNING
 Selecting missions and objectives as well as the actions to achieve
them, which requires decision making
 ORGANIZING
 Establishing an intentional structure of roles for people to fill in an
organization
 STAFFING
 Filling, and keeping filled, the positions in the organization structure
 LEADING
 Influencing people so that they will contribute to organizational and
group goals
 CONTROLLING
 Measuring and correcting individual and organizational performance
to ensure that events conform to plans
 COORDINATING
 It is the essence of managership, for achieving harmony among
individuals efforts towards the accomplishment of group goals