IntroductionIntroductionToTo

ManagementManagement

What is management?What is management? Management in all business and human Management in all business and human

organization activity is simply the act organization activity is simply the act of getting people together to of getting people together to accomplish desired goals & objectives. accomplish desired goals & objectives.

Why management is needed?Why management is needed? To become successful?To become successful? What is success?What is success? Become successful through managing your firm, Become successful through managing your firm,

your life, and so on your life, and so on

Mary Parker Follett (1868-1933) Mary Parker Follett (1868-1933) defined management as “the art defined management as “the art

of getting things done through people”.of getting things done through people”.

Management guru Peter Management guru Peter Drucker (1909-2005): Drucker (1909-2005): Basic task of a management Basic task of a management is two-fold: marketing is two-fold: marketing and innovationand innovation

Definition of ManagementDefinition of Management Mary Parker Follet:Mary Parker Follet: “ the act of getting things “ the act of getting things

done through people”.done through people”. Louis Boone & David Kurtz:Louis Boone & David Kurtz: “the use of people “the use of people

and other resources to accomplish and other resources to accomplish objectives”.objectives”.

Harold Koontz & Heinz Weihrich:Harold Koontz & Heinz Weihrich: “the process of “the process of designing an environment in which designing an environment in which individuals working together in groups, individuals working together in groups, so as to efficiently accomplish selected so as to efficiently accomplish selected goals”. goals”.

Definitions for managementDefinitions for management

The verb manage has come from the Italian The verb manage has come from the Italian maneggiare (to handle – especially a horse)maneggiare (to handle – especially a horse)

Management comprises planning, organizing, Management comprises planning, organizing, staffing, leading or directing, and controlling staffing, leading or directing, and controlling an organization or effort for the purpose of an organization or effort for the purpose of accomplishing a goal. accomplishing a goal.

The above words suggest the difficulty of The above words suggest the difficulty of defining management, the shifting nature of defining management, the shifting nature of definitions , and the connection of definitions , and the connection of managerial practices within the existence of managerial practices within the existence of the managerial cadre or class. the managerial cadre or class.

In English the term “management” or “the In English the term “management” or “the management” is used to describe the management” is used to describe the managers of an organization. This term is managers of an organization. This term is historically contrasted with the term “labor” historically contrasted with the term “labor” or the managed.or the managed.

Evolution ofEvolution ofManagement ThoughtManagement Thought

Classical approach to Classical approach to

Modern theoriesModern theories

Before industrial revolution, Before industrial revolution, economies and societies were economies and societies were essentially static. essentially static.

Organizations were run on the Organizations were run on the divine right of the king, on the divine right of the king, on the appeal of dogma to the faithful, appeal of dogma to the faithful, and on the rigorous discipline of and on the rigorous discipline of the military.the military.

Early management thoughtEarly management thought

Early management thought was Early management thought was dominated by cultural values that dominated by cultural values that were anti-business, anti-achievement, were anti-business, anti-achievement, and largely anti-man. and largely anti-man.

Industrialization could not have Industrialization could not have happened in such a climate. happened in such a climate. Monarchs were ruling nations by Monarchs were ruling nations by central dictates and there was no central dictates and there was no room for individual fulfillment in any room for individual fulfillment in any type of pursuit. type of pursuit.

The Industrial RevolutionThe Industrial Revolution

1818thth and 19 and 19thth century century

The cultural rebirth created new social, The cultural rebirth created new social, economic, and political conditions that economic, and political conditions that suited advances in science and suited advances in science and technology.technology.

Industrial progress is always tied to Industrial progress is always tied to advancements in science & technology advancements in science & technology in England first during the 15in England first during the 15thth century. century.

Advent of scientific managementAdvent of scientific management

Frederick Winslow TaylorFrederick Winslow Taylor

1856-1915 – American1856-1915 – American Steel worker to start with, became Steel worker to start with, became

the chief engineer in six years the chief engineer in six years Father of Scientific ManagementFather of Scientific Management Time study – foundation of Time study – foundation of

Taylor System Taylor System Task ManagementTask Management Taylors’ lectures in Harvard from 1909 to Taylors’ lectures in Harvard from 1909 to

19141914

Classical Approach

Scientific Management

(Frederick Taylor)

BureaucraticManagement(Max Weber)

AdministrativeManagement(Henry Fayol)

BehavioralApproach

Group Influences(Mary Follet)

Hawthorne studies

(Elton mayo)

NeedHierarchy(A. Maslow)

Theory X /Y(D. McGregor)

Model I vs. II(Chris Argyris)

Quantitative Approach

ManagementScience

(George Dantzig)

OperationsManagement

(Edward Deming)

ManagementInformation

Systems(Charles Babbage)

ModernApproaches

SystemsTheory

(C. West)

Contingency Theory

(Paul Hersey)

Theory Z& Quality

management

Classical ApproachClassical Approach Scientific managementScientific management Frederick W. Taylor (1856 -1915), Frank Gilbreth (1868-1924) and Lilian Frederick W. Taylor (1856 -1915), Frank Gilbreth (1868-1924) and Lilian

Gilbreth (1878-1972) and Henry Gantt. Gilbreth (1878-1972) and Henry Gantt.

Taylor’s Principles of scientific managementTaylor’s Principles of scientific management Develop scientific stepwise elements for each jobDevelop scientific stepwise elements for each job Scientifically select employees and train them to do Scientifically select employees and train them to do

the job as specifiedthe job as specified Supervise to ensure that correct methods are Supervise to ensure that correct methods are

followed.followed. Continue to plan the work using workers.Continue to plan the work using workers.

Piece rate incentive systemPiece rate incentive system Time-and-motion studyTime-and-motion study

Administrative TheoryAdministrative Theory Henri Fayol focused on the activities that Henri Fayol focused on the activities that

managers should take up.managers should take up.

Technical- Technical- producing/ manufacturing goods.producing/ manufacturing goods. Commercial-Commercial- Buying, selling, exchange of Buying, selling, exchange of

goods etc.goods etc. Financial-Financial- search for optimal use of capitalsearch for optimal use of capital Security-Security- protecting employees and assets. protecting employees and assets. Accounting-Accounting- Recording and compiling to take Recording and compiling to take

stock of costs, profits, liabilities, maintaining stock of costs, profits, liabilities, maintaining balance sheets etc.balance sheets etc.

Managerial-Managerial- Planning, organizing, Planning, organizing, commanding, coordinating and controllingcommanding, coordinating and controlling

Bureaucratic TheoryBureaucratic Theory

Max Weber’s Ideal BureaucracyMax Weber’s Ideal Bureaucracy Work specialization and division of Work specialization and division of

labour (Jobs to tasks and sub tasks & labour (Jobs to tasks and sub tasks & clearly defined roles).clearly defined roles).

Well defined rules and regulationsWell defined rules and regulations Impersonality of managersImpersonality of managers Hierarchy of organization structure Hierarchy of organization structure

Behavioral ApproachBehavioral Approach Classical theories ignored the human factor.Classical theories ignored the human factor. Elton MayoElton Mayo – father of human relations – father of human relations

approach. -- Hawthorne studies (studies on approach. -- Hawthorne studies (studies on productivity based on illumination/ attention productivity based on illumination/ attention given)given)

Abraham MaslowAbraham Maslow–– focusing on human needs focusing on human needs to achieve better resultsto achieve better results

McGregorMcGregor-- two categories of employees. two categories of employees. Chris Argyris-Chris Argyris- Model I (manipulative, risk Model I (manipulative, risk

averse companies) vs. Model II (less averse companies) vs. Model II (less manipulative, learning based organizations) manipulative, learning based organizations)

Quantitative ApproachQuantitative Approach

This approach stresses the use of This approach stresses the use of mathematical and statistical methods mathematical and statistical methods for decision making.for decision making.

George B. Dantzig is considered as the George B. Dantzig is considered as the father of operations research.father of operations research.

Program evaluation & review techniques (PERT), Program evaluation & review techniques (PERT), Critical path method (CPM), Linear programming, Critical path method (CPM), Linear programming, Transportation and Assignment problem, Production Transportation and Assignment problem, Production scheduling, Queuing theory, The Decision theory, scheduling, Queuing theory, The Decision theory, Simulation theory, Probability / sampling theory, Simulation theory, Probability / sampling theory, Time series analysis are all contributions of Time series analysis are all contributions of quantitative approach. quantitative approach.

Modern Approaches To Modern Approaches To ManagementManagement

Systems Theory Systems Theory &&

Contingency Theory Contingency Theory

Systems TheorySystems Theory (Churchman West) (Churchman West) Comes with the view that management Comes with the view that management

can’t exist in isolation of the external can’t exist in isolation of the external factors.factors.

Provides a new way of looking at an Provides a new way of looking at an organization as a whole, as a part of the organization as a whole, as a part of the larger external environment.larger external environment.

Has four major components:Has four major components: InputsInputs Transformation ProcessTransformation Process OutputsOutputs Feed BackFeed Back

Systems View Of OrganizationsSystems View Of Organizations

• Labour

• Materials

• Capital

• Machinery

• Information

• Planning

• Organizing

• Staffing

• Leading

• Controlling

• Technology

• Goods

• Services

• Profits & Losses

• Employee Satisfaction

1. Inputs

(Resources)

2. Transformation Process

3. Outputs

4. Feedback

Inputs:Inputs: comprises of the resources comprises of the resources required to produce goods.required to produce goods.

Transformation process:Transformation process: involve, the involve, the managerial and technical abilities to managerial and technical abilities to convert the inputs to outputs.convert the inputs to outputs.

OutputsOutputs comprise of goods, services comprise of goods, services for customers and profits & other for customers and profits & other results for the company.results for the company.

Feed backFeed back: : is about the evaluation of is about the evaluation of the outcomesthe outcomes