Introduction to Management: Concepts of Management and

organization- nature, importance and Functions of Management,

Taylor’s Scientific Management Theory, Fayol’s Principles of

Management, Mayo’s Hawthorne Experiments, Maslow’s Theory

of Human Needs, Douglas McGregor’s Theory X and Theory Y,

Herzberg’s Two-Factor Theory of Motivation, Systems

Approach to Management, Leadership Styles, Social

responsibilities of Management

INTRODUCTION

Management is what managers do.

M

A --- The Manager

N

A

G --- Knowledge

E

M

E --- The People

N

T --- Technology/Techniques/Tactics

DEFINITIONS:

“Management is the art of getting things done through and with people informally 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 ofother people”

--- Lawrence“Management is to manage is to forecast and plan, to organize, to

command, to coordinate and control”.-- Henry Fayol (1916)

MANAGEMENT

Nature of Management

Multidisciplinary

Dynamic nature of Principles

Relative, Not absolute Principles

Management: Science or Art

Management as profession

Universality of management

Management is a Situational in Nature

Importance of Management

Management has been important to the daily lives of people andto the organisations. The importance of management may betraces with the following.

Effective utilisation of Resources

Development of Resources

It ensures continuity in the organization

Integrating various interest groups

Stability in the society

Functions of Management

Writers Management Functions

Henry Fayol

Luther Gullick

R. Davis

E.F.L. Breech

Koontz

Planning, Organizing, Commanding, Coordinating, Controlling

POSDCORD- Planning, Organising, Staffing, Directing,

Coordinating, Reporting, Directing

Planning , Organising, Controlling

Planning, Organising, Motivating, Coordinating, Controlling

Planning, Organising, Staffing, Leading, Controlling

Functions of Management

Managerial Skills & Managerial LevelsTechnical Skills

Human Skills

Conceptual Skills

Design Skills

Top level / Administrative levelMiddle level / ExecutoryLow level / Supervisory /

Operative / First-line managers

The scientific management period hold prominently two

greatest exponents of classical theories. They are

F.W.Taylor (1856-1915)Henry Fayol (1841-1925)and

TAYLOR & SCIENTIFIC MANAGEMENT

Introduced by Frederick Winslow Taylor in USA in the beginning of 20th century.

He is Father of Scientific Management

“Scientific management is concerned with art of knowing

exactly what you want to do and then see in that they do it in the

best and cheapest way”

Tools:Separation of planning & doingFunctional ForemanshipJob Analysis StandardizationScientific selection and training of workersFinancial IncentivesEconomyMental Revolution

Principles of Scientific ManagementReplacing rule of thumb with scienceHarmony in group actionCo-operationMaximum outputDevelopment of workers

Tools:

Functional Foremanship

Work Shop Manager

Planning In charge Production In charge

Route

Boss

workers

DisciplinarianInstruction

Card clerk

Time and

Cost Clerk

Route

Clerk

Gang Boss inspector Maintenance

Foreman

Criticism of Scientific Management:

The theory of Scientific Management was heavily criticised by the

employers, the workers, and psychologists. Employers criticised the

process of scientific approach as costly and unworkable

It ignores the functional areas of management such as marketing, finance and so on

Individual creativity is ignored by favouring one best way Workers is reduced to a cog in the machines.

Mobility among workers gets restricted because of narrow specialisation

Workers are not involved in the planning part of the job which was controlled by the management.

“Management is to manage is to forecast and plan, to organize,

to command, to coordinate and control”.

Qualities of a managerGeneral principles of managementElements of management

Physical ( Health, Vigor and Health )Mental ( Ability to understand and learn, judgment , mental vigor and capability)Moral ( energy, firmness, initiative, loyalty, tact etc.,)EducationalTechnical ( peculiar to the function being performed )Experience

Qualities of a manager(1841-1925)

Father of Administrative Management

Division of workAuthority and ResponsibilityDisciplineUnity of CommandUnity of DirectionSubordination of individual interest to general interestRemunerationCentralizationScalar ChainOrderEquityStabilityInitiativeEsprit de corps

General principles of management

Planning, Organizing, Commanding, Coordinating, Controlling

Elements of management

A team of four membersElton mayo, White head, Roethlisberger and William Dickson

They conducted various researches in four phases with each phase

attempting to answer the question raised at the previous phase.

The phases are ---

Illumination experiments (1924-27)Relay assembly test room experiments (1927-28)Mass Interviewing Programme (1928-1930)Bank wiring observation room experiments (1931-32)

ConclusionsIndividual workers must be seen as members of a groupThe sense of belongingness and effective management were the

two secrets unfolded by the Hawthorne experiments.Informal or personal groups influenced the behaviour of

workers on the jobTo seek workers cooperation, the management should be aware

of their social needs and cater to them

Maslow's hierarchy of needs is a theory in psychology proposedby Abraham Maslow in his 1943 paper "A Theory of HumanMotivation". Maslow subsequently extended the idea toinclude his observations of humans' innate curiosity

Conclusion:

Maslow suggest 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.

Frederick Irving Herzberg born in Massachusetts was an

American psychologist who became one of the most

influential names in business management. He is most

famous for introducing job enrichment and the Motivator-

Hygiene theory

Frederick Hertzberg conducted a structured interview

programme to analyse the experience and feelings of 200

engineers and accountants in nine different companies in

Pittsburg area, U.S.A during the structured interview, they were

asked to describe a few previous job experiences in which they

felt ‘exceptionally good’ or exceptionally bad about jobs.

Douglas Mc Gregor in his books “The Human Side of the

Enterprise” has pointed out two sharply opposite concepts of

Management Styles for the Motivation of Human Behaviour.

There are two sets of assumptions about human nature:

Theory X and Theory Y

Theory X presents an essentially negative view of people

Theory Y offers a positive view

Kast and Rosenweig defines,

“A system is an organised or complex whole: an assemblage or combination of things or parts forming a complex unitary whole”.

The central idea of this approach is that any object dependson a method of analysis involving simultaneous variations ofmutually dependent variables. Systems are a set orassemblage of various interdependent and inter relatedvariables. i.e. sub-systems, so as to form a complex unity

This is the most interesting area in the management.

Effective management lies in good leadership qualities

exhibited by the manager. Leadership is the process of

influencing the behaviour of other to work willingly an

enthusiastically for achieving predetermined goals

Definitions:

“Leadership is the process of influencing and supporting others

to work enthusiastically toward achieving objectives”.

– Barnard Key.

“Leadership is the ability to influence a group towards the

achievement of goals”

– Stephon. P. Robins

“Leadership is interpersonal influence exercised in a situation

and directed through communication process, towards the

attainment of a specified goal or goals”.

– Tennenbaum.

Transformation Leader

1.Independent

2.Inspirational

3.Achievement

4.Initiative

5.Change oriented

6.Proactive

7.Influencing

Transactional Leader

1.Clarification giving

2. Counseling

3. Passive

4. Directing

5.Task Oriented

6.Practical

Leader injects team spirit, confidence, ambition etc. into the minds of followers

Leader is a representative of subordinatesLeader is a counselor, mediator, mentor etc to the followersLeader uses power for the best interests of the followersLeader strives hard for leadership effectivenessLeader seeks willing co-operation of the subordinates/

followersLeader furnishes a good working climate etc

Autocratic (or) Authoritarian leadersParticipative (or) Democratic leadersFree rein (or) Laiser faire leaders

Advantages:-1. It provides strong motivation and reward to a manager exercising this style.2. It permits very quick decisions as most of the decisions are taken by a single person.3. Strict discipline will be maintained.4. Less competent subordinates also have scope to work in the organisation under his leadership style.

Disadvantages:-1. People in the organisation dislike it specially when it is strict and the motivational style is negative.2. Employees lack motivation frustration, low morale and conflict develops in the organisation.3. There is more dependence and less individuality in the organisation

It is also called as democratic, consultative or idiographic leadership style

In this style the manager decentralizes his decision-making process.

Instead of taking unilateral decision he emphasizes consultation and participation of his subordinates.

Advantages:-Employees are highly motivated.The productivity of employees is very high.Subordinates share the responsibility with the superior and try

to safeguard them also.

Disadvantages:-Complex nature of organisation requires as through understanding

of its Problems which lower-level employees may not be able to do.Some people in the organisation want minimum interaction with

their superior.Some leaders may use this style as a way of avoiding responsibility.

A free-rein leader does not lead, but leaves the group entirely toitself as shown in the following figure.

manager once determines policy, programmes, and limitations foraction and the entire process is left to subordinates group membersperform everything and the manager usually maintains contactswith outside persons to bring the information and materials whichthe group needs

Social responsibilities came in the 1930’s when the view was

advanced and accepted that managers of large companies must

make decision which maintain an equitable balance among the

shareholders, employees, customer, suppliers & general public.

Definition:

“It is a serious consideration, by the corporate sector, of the impact

of, its actions, on society”.

-----Koontz

“This is a principle teaching that rich people have to feel obliged to

come down to help the down trodden, depressed people of the

society” ----- Jame A Stoner

“Investment on social responsibility & Welfare of the masses is a

guarantee for the long0run business survival itself ”

-----Smt. Indira Gandhi

Towards Consumers

Towards Share Holders

Towards Employees

Towards Trade Unions

Towards Government

Arguments in favour of Social Responsibility:Give & TakeBetter Environment SocietyReduced State interventionsAuthority and ResponsibilityA special place for Business

Arguments not in favour of Social Responsibility:Primary TaskCostlyUnfavourable to the Foreign TradeNot right ManNo Formal Accountability

Progress in India:

L&T:

It spends nearly Rs.5 crores annually on social projects.

It takes up programmes like: Family Planning, Camps to checkup

Tuber Culosis, Dairy and Poultry development in and around.

Tata Steel:

This company is a pioneer company as far as S.R. is concerned

Deeply involved in environmental conservation activities, education,

vocational training and health care for the under privileged etc.