This ppt is brief description about management concept and theories of management.

1. UNIT-1
CONCEPTS OF MANAGEMENT
QAZI SAEED AHMAD
ASSISTANT PROFESSOR
DEPARTMENT OF ELECTRONICS & COMMUNICATIN
ENGINEERING
INTEGRAL UNIVERSITY LUCKNOW
MANAGEMENT CONCEPTS IN
ENGINEERING BM227

2. What is Management?
 Definition: Coordinating work activities so that they are
completed efficiently and effectively with and through
other people
 Efficiency: getting the most output from the least input
 Effectiveness: completing activities so that the
organization’s goals are attained.

3. Management is…
EffectivenessEffectivenessEffectivenessEffectiveness
EfficiencyEfficiencyEfficiencyEfficiency
Getting workGetting work
done throughdone through
othersothers
Getting workGetting work
done throughdone through
othersothers

4. Managerial Roles:
Figurehead
Leader
Liaison
Figurehead
Leader
Liaison
Monitor
Disseminator
Spokesperson
Monitor
Disseminator
Spokesperson
Entrepreneur
Disturbance
Handler
Resource
Allocator
Negotiator
Entrepreneur
Disturbance
Handler
Resource
Allocator
Negotiator
Interpersonal Informational Decisional

5. Management Functions
Planning
Organizing
Staffing
Leading
Controlling
Planning
Organizing
Staffing
Leading
Controlling
Making Things Happen
Meeting the Competition
Organizing People,
Projects, and Processes
Making Things Happen
Meeting the Competition
Organizing People,
Projects, and Processes
Classical
Management Functions
Updated
Management Functions

6. Levels of Management
CEO
COO
CIO
General Mgr
Plant Mgr
Regional Mgr
Office Manager
Shift Supervisor
Department Manager
Team Leader
Top Level Management
Middle Level Management
First-Line
Management

7. Top Managers
Responsible for…Responsible for…
Creating a context for changeCreating a context for change
Developing attitudes of commitment
and ownership in employees
Developing attitudes of commitment
and ownership in employees
Creating a positive organizational
culture through language and action
Creating a positive organizational
culture through language and action
Monitoring their business environmentsMonitoring their business environments

8. Middle Managers
Responsible for…Responsible for…
Setting objectives consistent with top
management goals, planning strategies
Setting objectives consistent with top
management goals, planning strategies
Coordinating and linking groups,
departments, and divisions
Coordinating and linking groups,
departments, and divisions
Monitoring and managing the performance
of subunits and managers who report to them
Monitoring and managing the performance
of subunits and managers who report to them
Implementing the changes or strategies
generated by top managers
Implementing the changes or strategies
generated by top managers

9. First-Line Managers
Responsible for…Responsible for…
Managing the performance of
entry-level employees
Managing the performance of
entry-level employees
Teaching entry-level employees
how to do their jobs
Teaching entry-level employees
how to do their jobs
Making schedules and operating plans based on
middle management’s intermediate-range plans
Making schedules and operating plans based on
middle management’s intermediate-range plans

10. Management Theory
 Pre-Classical
 Classical Approaches
 Frederick Taylor: Scientific Management (1886)
 Frank and Lillian Gilbreth: Time/motion studies (later
1800s)
 Henri Fayol: 14 Principles of Management (1880s-1890s)
 Max Weber : Bureaucracy (1920s)
 Behavioral Approaches
 The Hawthorne Experiment (1927)
 MacGregor’s Theory X and Theory Y (1960)
 Quantitative Approaches
 Contemporary Approaches
 Ouchi’s Theory Z (1981)
 Contingency Management

11. Classical Approaches
 Frederick Taylor: Scientific Management (1886)
 Frank and Lillian Gilbreth: Time and motion
studies (later 1800s)
 Henri Fayol: Fourteen Principles of Management
(1880s-1890s)
 Max Weber : Bureaucracy (1920s)

12. Frederick W. Taylor
 Developed Scientific Management
 Laid foundation for the study of management
 Key ideas:
 Management as a separate field of study
 Explicit guidelines for scientific study of management
functions
 Time studies for setting standards
 Functional specialization of managers’ duties
 Piece-rate Incentive systems

13. Taylor’s Principles of Management
 The “one best way.”
 Management using scientific observation
 Scientific selection of personnel
 Put right worker in right job, find limitations, train
 Financial incentives
 Putting right worker in right job not enough
 A system of financial incentives is also needed
 Functional foremanship
 Division of labor between manager and workers
 Manager plans, prepares, inspects
 Worker does the actual work
 “Functional foremen” , specialized experts, responsible
for specific aspects of the job

14. Frank & Lillian Gilbreth
 Time and motion efficiency experts
 Developed therbligs, breakdown of manual skills into
16 actions
 Frank was a lazy bricklayer looking for an easier way and
Lillian was a psychologist.
 Endorsed piece-work and suggested a higher rate per unit
if his directions were followed.
 Disagreed with Taylor’s idea that management should
choose which workers took which jobs.

15. Henri Fayol
 First came up with the five basic functions of management
—Planning, Organizing, Staffing, Directing,
Communicating, and Controlling
 First wrote that management is a set of principles which
can be learned.
 Developed Fourteen Principles of Management

16. What Is Management? (According To Fayol)
Fayol's definition of management roles and actions distinguishes
between Five Elements:
Prevoyance. (Forecast & Plan). Examining the future and drawing
up a plan of action. The elements of strategy.
To organize. Build up the structure, both material and human, of
the undertaking.
To command. Maintain the activity among the personnel.
To coordinate. Binding together, unifying and harmonizing all
activity and effort.
To control. Seeing that everything occurs in conformity with
established rule and expressed command.

17. 1. Specialization of labor. Specializing encourages
continuous improvement in skills and the development of
improvements in methods.
2. Authority. The right to give orders and the power to
exact obedience.
3. Discipline. No slacking, bending of rules.
4. Unity of command. Each employee has one and only
one boss.
5. Unity of direction. A single mind generates a single
plan and all play their part in that plan.
6. Subordination of Individual Interests. When at work,
only work things should be pursued or thought about.
7. Remuneration. Employees receive fair payment for
services, not what the company can get away with.
HENRI FAYOL’s
FOURTEEN PRINCIPLES OF MANAGEMENT

18. 8. Centralization. Consolidation of management functions.
Decisions are made from the top.
9. Scalar Chain (line of authority). Formal chain of command
running from top to bottom of the organization, like military
10. Order. All materials and personnel have a prescribed place,
and they must remain there.
11. Equity. Equality of treatment (but not necessarily identical
treatment)
12. Personnel Tenure. Limited turnover of personnel. Lifetime
employment for good workers.
13. Initiative. Thinking out a plan and do what it takes to make
it happen.
14. Esprit de corps. Harmony, cohesion among personnel.

19. Application Of Fayol’s Principles
Change and Organization.
Decision-making.
Skills. Can be used to improve the basic effectiveness of a
manager.
Understand that management can be seen as a variety of
activities, which can be listed and grouped.

20. Max Weber
 Coined “bureaucracy”: the perfect office
 Well defined chain of command
 Clear division of work (job descriptions)
 Procedures for any situation
 Impersonality
 Employment and promotion based on technical
competence.

21. Behavioral Approaches
 The Hawthorne Experiment (1927)
 Chester Barnard (1930s – 1960s)
 Herbert Simon (1947)
 MacGregor’s Theory X and Theory Y (1960)

22. Functions of Management

23. Planning and Decision Making
Defining goals, establishing strategy and developing
sub plans to choose alternatives and coordinate
activities

24. Organizing
• Deciding where decisions will be made
• Who will do what jobs and tasks
• Who will work for whom

25. Leading
MotivatingMotivating
InspiringInspiring
LeadingLeadingLeadingLeading

26. Controlling
Monitoring progress towards goal achievement and
taking corrective action when needed

27. What is Scientific Management?

28. Role Differences Between Engineers and
Managers

29. Role Differences Between
Engineers and Managers
Behavioral Approaches

30. The Scope of Management
Large businesses: Most knowledge comes from large
profit-seeking organizations.
Small and Start-Up Businesses: Management is key as
wrong decisions may never be recovered. This is how most
businesses start. Compaq started by 3 in 1982. In 1994
76th largest with sales of $7b.
International management: Most large organizations derive
a significant portion of their business from international
markets.

31. The Scope of Management
1. Subject-matter of management: Planning, organizing,
directing, coordinating and controlling are the activities
included in the subject matter of management.
2. Functional areas of management: These include:
Financial management includes accounting, budgetary
control, quality control, financial planning and managing
the overall finances of an organization.
Personnel management includes recruitment, training,
transfer promotion, demotion, retirement, termination,
labor-welfare and social security industrial relations.
Purchasing management includes inviting tenders for raw
materials, placing orders, entering into contracts and
materials control.

32. The Scope of Management
Production management includes production
planning, production control techniques, quality
control and inspection and time and motion
studies.
Maintenance management involves proper care
and maintenance of the buildings, plant and
machinery.
Transport management includes packing,
warehousing and transportation by rail, road and
air.

33. The Scope of Management contd..
Distribution management includes marketing, market
research, price-determination, taking market- risk and
advertising, publicity and sales promotion.
Office Management includes activities to properly manage
the layout, staffing and equipment of the office.
Development management involves experimentation and
research of production techniques, markets, etc.
3. Management is an inter-disciplinary approach: For
the correct implementation of the management, it is
important to have knowledge of commerce, economics,
sociology, psychology and mathematics.

34. 4. Universal application: The principles of management can
be applied to all types of organizations irrespective of the
nature of tasks that they perform.
5. Essentials of management: Three essentials of
management are:
Scientific method
Human relations
Quantitative technique
6. Modern management is an agent of change: The
management techniques can be modified by proper research
and development to improve the performance of an
organization.

35. Nature of Management
 Universal process: Wherever there is human activity, there is
management. Without efficient management, objectives of the
company can not be achieved.
 Factor of production: Qualified and efficient managers are essential to
utilization of labor and capital.
 Goal oriented: The most important goal of all management activity is to
accomplish the objectives of an enterprise. The goals should be
realistic and attainable.
 Supreme in thought and action: Managers set realizable objectives and
then mastermind action on all fronts to accomplish them. For this, they
require full support form middle and lower levels of management.
 Group activity: All human and physical resources should be efficiently
coordinated to attain maximum levels of combined productivity.
Without coordination, no work would accomplish and there would be
chaos and retention.

36. Nature of Management contd..
 Dynamic function: Management should be equipped to face the changes in business
environment brought about by economic, social, political, technological or human factors.
They must be adequate training so that can enable them to perform well even in critical
situations.
 Social science: All individuals that a manager deals with, have different levels of sensitivity,
understanding and dynamism.
 Important organ of society: Society influences managerial action and managerial actions
influence society. Its managers responsibility that they should also contribute towards the
society by organizing charity functions, sports competition, donation to NGO’s etc.
 System of authority: Well-defined lines of command, delegation of suitable authority and
responsibility at all levels of decision-making. This is necessary so that each individual
should what is expected from him and to whom he need to report to.
 Profession: Managers need to possess managerial knowledge and training, and have to
conform to a recognized code of conduct and remain conscious of their social and human
obligations.
 Process: The management process comprises a series of actions or operations conducted
towards an end.

37. Contribution of Chester Barnard to management
science
He looked at organizations as systems of cooperation of
human activity, and was worried about the fact that they
are typically rather short-lived
This happens because organizations do not meet the two
criteria necessary for survival: effectiveness and
efficiency.
He give us a much more “realistic” view of what really
goes on in formal organization. According to Barnard
individual have only a limited amount of power. A person
can do only so much when acting alone.

38. Barnard’s key concepts:
Importance of an Individual's behaviour
Compliance
Concept of "zone of indifference".
Communication
Focused on importance of communication in informal
organization.

39. Organizations made up of individual humans with individual
motivations
Every large organization includes smaller, less formal
groupings whose goals need to be harnessed to those of the
whole - this is managements responsibility
Management efficiency vs. effectiveness
Authority only exists in so far as the people are willing to
accept it
Other points

40. Thank You