Basics of management science

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101 Management Science
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Dr. Anupama Chaudhari
Associate Professor
KCES’s Institute of
Management and Research,
Jalgaon

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Management and
Principles of Management
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1.1. Management: Concept, Nature, Importance
1.2. Management: Art and Science & as a Profession, Management Vs
Administration, Levels of Management & their respective functions,
Managerial Skills & roles.
1.3. Evolution of Management: Introduction to Scientific Management by
Taylor, Administrative Management by Fayol, Contribution of Peter
Drucker, Decision Theory Approach, Contingency Approach, Human
behavior Approach

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Management
• DEFINITIONS:
“Management is the art of getting things done through and with people in
formally organized groups”
--- Koontz
“Management is the art of getting things done through and with people”
--- Mary Parker
“Management is the art of knowing what you want to do and then seeing that
it is done in the best and cheapest way” -
-- F.W. Taylor
“Management is the accomplishment of results through the efforts of other
people”
--- Lawrence
“Management is to manage is to forecast and plan, to organize, to command,
to coordinate and control”.
-- Henry Fayol (1916)
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Objective of Management
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Managerial Concerns
– Efficiency
“Doing things right”
– Getting the most
output for the least
inputs
– Effectiveness
“Doing the right
things”
– Attaining
organizational goals

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Nature of Management
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• Multidisciplinary
• Management is a Situational in Nature
• Management: Science or Art
• Relative, not absolute Principles
• Dynamic nature of Principles
• Universality of management
• Management as profession

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Features of Management
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• Management is all Pervasive or Universal
• Management is a Goal Oriented Process
• Management is an Intangible Force
• Management is Multi Dimensional
• Management is a continuous process
• Management is a Group Activity
• Management is Dynamic Function

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Importance
of
Management
Effective
utilisation of
Resources
Development of
Resources
It ensures
continuity in the
organization
Integrating
various interest
groups
Stability in the
society

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Management as an Science
• Universally accepted principles
• Experimentation and observance
• Cause and effect relationship
• Test of validity and predictability
https://youtu.be/WeqAivattEU

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Management as a Arts
• Practical knowledge
• Creativity
• Perfection through practice
• Goal oriented

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Management as a Profession
• Specialized knowledge
• Formal education and training
• Social obligations
• Code of conduct
• Representative association

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Basis of comparison Management Administration
Introduction It is an art of taking work from other
individuals by giving directions to them.
It implies complete perseverance of the plans and
policies of the enterprise.
Structure Structure of management is of executive
nature.
Administration's structure is of deterministic nature.
Extent Management is exacting the discharge of
policies.
Administration is exacting the assurance of primary
objectives and policies.
Position Management is a low and middle-ranked
function.
Administration is a high ranked function.
Authority Decisions of the management are
controlled by aims and policies of an
enterprise.
Administrative decisions are controlled by a
common belief and other outside forces.
Management of human
exertion
Precisely it is not concerned with the
management of human exertion.
It is seriously concerned with the control of human
resolution in the accomplishment of the plan.
Procedure Management concludes the distribution of
work amidst various employees and how it
is to be done.
Administration concludes what work is to be
allocated to the distinctive employees of the
enterprise.
Objectives Supervising and coordinating are the
primary objectives of the management.
Planning and regulating are the major objectives of
the administration.
Proficiency Professional and personal proficiency is
required in it.
Visionary and personal proficiency is needed in it.
Control Management mainly have control over
business concerns.
Administration has a control in government or
national sectors.

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LEVELS OF MANAGEMENT

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LEVELS OF MANAGEMENT
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Managers Roles
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– Roles are specific actions or behaviors
expected of a manager.
– Mintzberg identified 10 roles grouped
around interpersonal relationships, the
transfer of information, and decision making.

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MINTZBERG’s MANAGERIAL ROLES
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FIVE MANAGERIAL SKILLS
Technical Skills
Knowledge of and
proficiency in activities
involving methods,
processes and
procedures
Conceptual Skills
The ability to
coordinate and
integrates all of an
organization’s interest
s and activities
Interpersonal and
Communication
skills
Convey ideas and
information to others
and receive
information and ideas
from others effectively
Decision Making
Skills
Make decisions that will
lead the organization to
the attainment of its
goals
Diagnostic and
Analytical Skills
Ability to visualize the
best response to a
situation
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CLASSICAL MANAGEMENT PERSPECTIVE
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Scientific Management (Fredrick Winslow Taylor , 1911)
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• “Father” of scientific management, Published Principles of Scientific
Management.
• Contributions:
1. Work is done in principles of science.
2. Scientific selection, training, and development of workers.
3. Standardized method or One Best Way of doing the job .
4. Productivity increased with selection of right person on the job with
correct tools and equipment.
5. Division of labour
6. Providing an economic incentive to the worker.

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Scientific Management Theory
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• Taylor developed his theory on the basis of his work
experience in three companies: Midvale Steel works,
Simond Rolling mills and Bethlehem Steel company.
He is regarded as Father of Scientific Management.
• He focused on finding the best way to do the job by
eliminating wastage of men and material. He
developed time and motion studies to find optimum
time and nature of operations for successful
completion of tasks.
• He also introduced differential wage rate system to pay more
to productive workers.

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Principles of Taylor’s theory
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Administrative Management
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• Classical organization theory concerned about the
need to find guidelines for managing complex
organizations such as factories.
• Henri Fayol is the founder of the classical
management theory.
• Fayol believed that sound management practice falls
into certain patters that can be identified and
analyzed.
• Fayol was interested in the Total Organization and
focused on management, which he felt had been the
most neglected of business operations.

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Contribution of Peter Drucker
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• Peter Drucker has varied experience and background which
include psychology, sociology, law, and journalism. He has
developed solutions to number of managerial problems.
Therefore, his contributions cover various approaches of
management. His main contribution includes:
• Nature of Management
• Management functions
• Organization structure
• Federalism
• Management by Objectives
• Organizational changes

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Decision Theory Approach
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• The decision theory approach: focuses on the decision-
making process and people involved in it.
• It helps the manager to take the effective decision in order
to grow his business.
• This uses logical concepts to take the decision. When
managers will calculate risks and uncertainties, that time he
can take the positive decision that will affect his business.
• The facts help the managers to understand the risks level, if
the risks level is high then the manager will not take that
decision, if the risks level is low then the manager can take
the decision

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Features of Decision Theory Approach
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• Management is decision making.
• Members of Organisation decision makers and
problem solvers.
• Decision making - control point in management
• Increasing efficiency - the quality of decision
• MIS, process & techniques of decision making are the
subject matter of study.

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Behavioural Approach
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• This theory puts more emphasis on individual’s
attitudes, behaviours and on the group
processes. In this approach of management
human factor remain central focus.
This approach can be studied into two phases –
• a. Human Relation Movement
• b. Behavioural Science Approach
• Major contributors to this approach were Elton
Mayo, Abraham Maslow and Dugulas Mcgregor

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BEHAVIORAL MANAGEMENT PERSPECTIVE
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• Develops theories about human behavior based on
scientific methods.
• Draws learning from sociology, psychology,
anthropology, economics, and other disciplines to
understand employee behavior and interaction in an
organizational setting.
• A field of study that researches actions (behavior) of
people at work is called organizational behavior (OB).

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MASLOW’s NEED HEIRARCHY
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• Maslow's hierarchy of needs is a theory in psychology
proposed by Abraham Maslow in his 1943 paper "A
Theory of Human Motivation". Maslow subsequently
extended the idea to include his observations of humans'
innate curiosity.

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Maslow suggested that the
various levels are
interdependent and
overlapping, each higher level
need emerging before the
lower level need has been
completely satisfied. Since
one need does not disappear
when another emerges, all
needs tend to be partially
satisfied in each area.
Behavioral Approach to Management

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Behavioral Approach to Management
• Douglas McGregor based on his experiences as a
manager and consultant, formulated Theory X and
Theory Y.
• Theory X is a relatively pessimistic and negative view
of workers and is consistent with the views of scientific
management.
• Theory Y is more positive and represents the
assumptions made by human relations advocates.

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Systems approach
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• A system is an interrelated set of elements functioning as a whole.
• A system functions by acquiring inputs from the external environment,
transforming them in some way, and discharging outputs back to the
environment.
• Some ideas in systems theory significantly affected management
thinking. They include:
• Open and closed systems
• entropy
• synergy
• subsystem interdependencies

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CONTINGENCY APPROACH
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• Classical perspective assumed a universalist view. Management
concepts were thought to be universal; i.e., whatever worked—leader
style, bureaucratic structure—in one organization would work in
another.
• In contingency approach, each situation is believed to be unique.
Learning about management is possible by experiencing a large
number of case problem situations.
• There are no simplistic or universal rules for managers to follow.

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