1. Management
1

2. Who Are Managers?
Manager
Someone who works with and through other people by
coordinating their work activities in order to accomplish
organizational goals
2

3. Types of Managers
First-line Managers
Are at the lowest level of management and manage the work of
nonmanagerial employees
Middle Managers
Manage the work of first-line managers
Top Managers
Are responsible for making organization-wide decisions and
establishing plans and goals that affect the entire organization
3

4. Exhibit 1.1 Managerial Levels
Top
Managers
Middle Managers
First-Line Managers
Nonmanagerial Employees
4

5. Where Managers Work
Organization
A consciously coordinated social unit,
composed of two or more people, that
functions on a relatively continuous basis
to achieve a common goal or set of
goals.
5

6. Definition of Management:
Management is the process of designing and maintaining an
environment in which individuals, working together in
groups, efficiently accomplish selected aims
6

7. Definitions of Effectiveness and
Efficiency
Productivity implies effectiveness and efficiency in individual
and organizational performance
Effectiveness is the achievement of objectives
Efficiency is the achievement of the ends with the least
amount of resources (men, money, material, machinery,
time etc.)
7

8. Managerial Concerns
Efficiency
“Doing things right”
Getting the most output for the least input
Effectiveness
“Doing the right things”
Attaining organizational goals
8

9. What Managers Do
Managerial Activities
• Make decisions
• Allocate resources
• Direct activities of others to
attain goals
Managerial Activities
• Make decisions
• Allocate resources
• Direct activities of others to
attain goals
Managers (or administrators)
Individuals who achieve goals through other people.
9

10. What Do Managers Do?
Functional Approach
Planning
Organizing
Leading
Controlling
10

11. Management Functions (cont’d)
Planning
A process that includes defining goals,
establishing strategy, and developing
plans to coordinate activities.
11

12. Management Functions (cont’d)
Organizing
Determining what tasks are to be done,
who is to do them, how the tasks are to be
grouped, who reports to whom, and where
decisions are to be made.
12

13. Management Functions (cont’d)
Leading
A function that includes motivating
employees, directing others, selecting
the most effective communication
channels, and resolving conflicts.
13

14. Management Functions (cont’d)
Controlling
Monitoring activities to ensure they are being
accomplished as planned and correcting any
significant deviations.
14

15. Management Functions
Planning
Defining goals,
establishing
strategy, and
developing
subplans to
coordinate
activities
Lead to
Organizing
Determining
what needs
to be done,
how it will
be done, and
who is to do it
Leading
Directing and
motivating all
involved parties
and resolving
conflicts
Controlling
Monitoring
activities
to ensure
that they are
accomplished
as planned
Achieving the
organization’s
stated
purpose
15

16. What Do Managers Do? (cont’d
Mintzberg’s Management Roles Approach
Interpersonal roles
Figurehead, leader, liaison
Informational roles
Monitor, disseminator, spokesperson
Decisional roles
Entrepreneur, disturbance handler, resource allocator, negotiator
16

17. Mintzberg’s Managerial Roles
17

18. Mintzberg’s Managerial Roles (cont’d)
18

19. Mintzberg’s Managerial Roles (cont’d)
19

20. What Do Managers Do? (cont’d)
Skills Approach
Technical skills
Human skills
Conceptual skills
20

21. Management Skills
Technical skills
The ability to apply specialized
knowledge or expertise.
Human skills
The ability to work with, understand,
and motivate other people, both
individually and in groups.
Conceptual Skills
The mental ability to analyze and
diagnose complex situations.
21

22. Exhibit 1.4 Skills Needed at Different
Management Levels
Top
Managers
Middle
Managers
Lower-level
Managers
Importance
Conceptual
Skills
Human
Skills
Technical
Skills
22

23. What Is An Organization?
An Organization Defined
A deliberate arrangement of people to accomplish some
specific purpose
Common Characteristics of Organizations
Have a distinct purpose (goal)
Are composed of people
Have a deliberate structure
23

24. Exhibit 1.6 The Changing Organization
Traditional
 Stable
 Inflexible
 Job-focused
 Work is defined by job positions
 Individual-oriented
 Permanent jobs
 Command-oriented
 Managers always make decisions
 Rule-oriented
 Relatively homogeneous workforce
 Workdays defined as 9 to 5
 Hierarchial relationships
 Work at organizational facility during specific hours
New Organization
 Dynamic
 Flexible
 Skills-focused
 Work is defined in terms of tasks to be done
 Team-oriented
 Temporary jobs
 Involvement-oriented
 Employees participate in decision making
 Customer-oriented
 Diverse workforce
 Workdays have no time boundaries
 Lateral and networked relationships
 Work anywhere, anytime
24

25. Management: Definition
Acc to Harold Koontz: Management is the art of getting
things done through & with an formally organized group
Acc to Henry Fayol: To manage is to forecast & plan, to
organize, to co-ordinate and to control
PODSCCRB:
- Planning, Organizing, Directing, Staffing,
Controlling, Co-ordinating, Reporting & Budgeting
25

26. Features of Management
Art as well as Science
Management is an activity
Management is a continuous process
Management achieving pre-determined objectives
Organized activities
Management as a system
Management is a discipline
26

27. Features of Management
Management is a distinct entity
Management aims at maximising profit
Management is a purposeful activity
Management is a profession
Universal application
Management is getting things done
Management is needed at all levels
27

28. Importance of Management
Management meet the challenge of change
Accomplishment of group goals
Effective utilization of resources
Effective functioning of business
Resource Development
Sound organization Structure
Management directs the organization
Integrates various interests
Stability
28

29. Importance of Management
Innovation
Co-ordination and team-spirit
Tackling problems
A tool for Personality Development
29

30. ORGANISATION THEORIES
The theories are crafted in view of the basic production being
Replaced my mass production, to organize technology-
information-manpower interface for proper coordination of
Activities of large number of people and increased efficiency.
Major theories are:
1. Classical Theory
2. Neo-Classical Theory
3. Modern Theory
30

31. a) Scientific Management
b) Administrative Management
c) Theory of Bureaucracy
1. CLASSIC THEORIES
31

32. a) Scientific management
Introduced by F.W. Taylor in USA in the beginning of 20th
century.
He is called as the Father of Scientific Management
Focus on improving the efficiency of the workers.
32

33. Principles of Scientific
Management
Task fragmentation
Scientific Analysis of the jobs being done to select the best
method of doing the task
Standardization of tools and methods for production
Scientific selection through specialization
Financial Incentives and rewards
Training
Demarcation of responsibilities between management and
workers
33

34. Limitations of scientific
mangement
34
Mechanical approach considering worker an adjunct to
machines
Narrow specialization due to fragmentation of jobs
Routinization of jobs leading to boredom, short job cycles,
lack of autonomy hence worker distress
More of a “SYSTEMATIC” approach than being scientific
“Command and control” system
“conception and planning” being separated from “execution”
Wages not being increased in proportion of production
Required to perform consistently at high level of efficiency

35. B. Administrative Management
Henry Fayol (1841-1925), a french industrialist
Given :
Elements of Management- Planning, Organizing,
Commanding, Co-ordination & Control
Qualities of Manager: Physical, Mental, Moral, General
Education, Special Knowledge & Experience
Categories of operations: technical, commercial, financial,
security, accounting, management
Principles of Management
35

36. Principles of Management
1. Division of labour
2. Authority
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interest to common good
7. Remuneration
8. Centralisation
9. The hierarchy
10. Order
11. Equity
12. Stability on staff
13. Initiative
14. Esprit de corps
36

37. Principles by Luther gullick and Lyndall Urwick; an
extension to Fayol
37
Fitting people to the organization structure
Recognizing one top executive as the source of authority
Adhering to the unity of command
Using special and general staff
Departmentalizing by purpose, process, persons and place
Considering appropriate spans of control
Delegating and utilising the exception principle
Marking responsibility commensurate with authority

38. 38

39. Limitations of Admin. Mgmt
principles
39
Behavioral, cultural and social components ignored
No emphasis on variations in human response towards
management processes like planning, directing and
controlling
Rational approach towards human factor

40. C. Bureaucracy
Given by Max Weber, a German sociologist.
Known as father of Bureaucracy
Proposed that bureaucracy provides most efficient
framework for designing business, government, military and
other complex organisations
40

41. Principles Of Bureaucracy
Division of labor based on functional specialization, individual
specialization, task allocation according to competence
Well defined hierarchy of authority
Rational legal authority (rank/position)
Traditional authority (monarch)
Charismatic authority (mass appeal/ special powers)
A system of procedures to deal with work situations
System of record keeping
A system of promotion and selection for employment based on
technical competence
Rational decision making based on fairness, justice and equity
Adherence to norms, code of conduct ; consistency of actions
Rules covering rights and duties of positional incumbents
41

42. Limitations of bureaucracy
42
1. Goal displacement (procedure vs. result)
2. Inadequate communication
3. Lack of effective coordination
4. Lack of system for conflict management
5. Red tapism (rules not applied uniformly)
6. Outdated notion of authority
7. Lack of opportunity for personal growth
8. Lack of innovativeness
9. Inadequate appreciation of organizational dynamics
10. Change resistant
11. Suboptimal utilization of manpower

43. 2. Neo-Classical Theory
The Human Relations approach
Behavioral science contributions
43
2. NEO-CLASSIC THEORIES

44. a. The Human Relations Movement
Illumination Experiments (hawthorne experiments) by elton
mayo
Resulted in cnclusion that change in social conditions ,
motivation and supervision and NOT the working conditions
were factors responsible for increase in production
Role of informal work group
Production determined more by social factors than aptitute or
physiological factors
44

45. Principles of human relations school
“social capacity” rather than “physical capacity”
Psychological needs are prime movers
Individual behavior is affected by feelings
Orgnisation to be viewed both as techno economic as well as
social system
Critical role of informal work groups
Workers act/react as members of groups and not mere
individuals
Informal leadership more emergent than formal leadership
Necessacity of 2 way communication
Integration between goals of organisation and individuals
Managers developing social and technical skills45

46. B. Behavioral science contribution
Stress on developing organisation as COOPERATIVE
SYSTEM
Group dynamics playing an important role
More stress on interpersonal relationships
“personality” and “behavior” : external situation factors and
psychic inner causes
46

47. Assumptions about people:
McGregor’s theory
Theory X
Average human being is
lazy and deslikes work
People like to be directed
and lack ambition
People have little capacity
for creativity
Most people are indifferent
to organisation goals
Motivation is always
relatedto physiological
needs (food, shelter etc)
Theory Y
Work is natual as play if
conditions are favourable
Self direction and control
to serve the objectives
Commitment to objectives
and satisfaction of egoes
Proper conditions are
necessasary, shortcomings
are not inherited
Potential partially utilised
under present ind. system47

48. Motivation and Job satisfaction
Maslow’s theory: identification of 5 basic needs:
1. Physiological needs: hunger, thirst etc.
2. Safety needs: protection against danger, threat, deprivation
etc
3. Love needs: belonging to groups, friendship, affection
4. Esteem needs: self respect, respect for others, ego and status
needs
5. Self fullfillment and self actualisation: self development,
creativity, satisfaction, realising owns potential
48

49. Immaturity maturity continuum (chris rgyris)
IMMATURITY
CHARACTERISTICS
Passivity
Dependence
Few ways of behaving
Shallow interests
Short time perspectives
Subordinate position
Lack of self awareness
MATURITY
CHARACTERISTICS
Activity
Responsible independence
Diverse behavior
Deep interests
Long time perspectives
Super ordinate positions
Self awareness and control
49

50. Other features of neo classical
theory
Need of a DECENTRALISED STRUCTURE
DEMOCRATIZATION and PARTICIPATION
50

51. Modern Theory
A. Quantitative Approach (Mgmt. science theory)
B. Systems Approach
C. Contingency Approach
51
3. MODERN THEORIES

52. A. QUANTITATIVE APPROACH
Emerged after world war 2
Operation research: mathematical model building and other
applications of quantitative techniques to managerial problems
Operations management: quantitative technique to solve
manufacturing problems.e.g. forecasting, linear and non linear
programming, scheduling, simulation, break even analysis,
computer aided design (CAD), Computer automated
manufacturing (CAM), total quality management (TQM)
Information technology: internet, intranet, decision support
systems (DSS)
52

53. B. SYSTEMS APPROACH
53

54. 54

55. SYSTEMS approach (cont..)
An extension of the humanistic perspective that describes
organisations as open systems that are characterised by entropy,
synergy and subsystem interdependance.
Open system: which interacts with the environment to survive
Closed system: does not interacts with the external environment
Entropy: tendency of a system to run down and die
Synergy: concept that the whole is greater than the sum of its parts
Subsystems: parts of the system that depend upon one another for
their functioning
55

56. Organizations as an open system
System and sub system
Holism : whole is greater than arithmetic mean of its parts
Importation of energy
Conversion process (JIT, kaizen, (continuous improvement)
TQM)
Export of energy (value added products, services)
Cyclic nature of activities
Negative entropy: resistance to perish
Self regulatory mechanisms
Internal elaborations (strategizing, elaborating activities)
Integrate: unity of actions and coordination
Equifinality (reaching same final state from different initial
conditions by variety of ways)56

57. C. Contingency theory
An extension of the humanistic perspective in which the succesful
resolution of organizational problems is thought to depend upon
manager’s identification of key variations in the situation at hand.
Universalistic view:
 there is one best way (either be leadership style, bureaucratic structure)
The same concept is applicable to every another organization
Case view:
Every situation is unique
Determining new methods/solution for every new situation or problem
57
Case view
Universalistic
view
CONTINGENCY VIEW
Organization phenomenon exist in logical patterns;
management devise and apply similar responses to
common types of problems

58. QUERIES ???
58