UNIT-1CONCEPTS OF MANAGEMENT

QAZI SAEED AHMAD ASSISTANT PROFESSOR

DEPARTMENT OF ELECTRONICS & COMMUNICATIN ENGINEERING

INTEGRAL UNIVERSITY LUCKNOW

MANAGEMENT CONCEPTS IN ENGINEERING BM227

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.

Management is…

EffectivenessEffectiveness

EfficiencyEfficiencyGetting workGetting workdone throughdone through

othersothers

Managerial Roles:

Figurehead

Leader

Liaison

Monitor

Disseminator

Spokesperson

Entrepreneur

Disturbance Handler

Resource Allocator

Negotiator

Interpersonal Informational Decisional

Management Functions

Planning

Organizing

Staffing

Leading

Controlling

Making Things Happen

Meeting the Competition

Organizing People, Projects, and Processes

Classical Management Functions

Updated Management Functions

Levels of Management

CEOCOOCIO

General MgrPlant Mgr

Regional MgrOffice ManagerShift Supervisor

Department ManagerTeam Leader

Top Level Management

Middle Level Management

First-LineManagement

Top ManagersResponsible for…

Creating a context for change

Developing attitudes of commitmentand ownership in employees

Creating a positive organizational culture through language and action

Monitoring their business environments

Middle ManagersResponsible for…

Setting objectives consistent with top management goals, planning strategies

Coordinating and linking groups, departments, and divisions

Monitoring and managing the performance of subunits and managers who report to them

Implementing the changes or strategiesgenerated by top managers

First-Line ManagersResponsible for…

Managing the performance of entry-level employees

Teaching entry-level employees how to do their jobs

Making schedules and operating plans based on middle management’s intermediate-range plans

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

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)

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

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

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.

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

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.

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

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.

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.

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.

Behavioral Approaches

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

Functions of Management

Planning and Decision Making

Defining goals, establishing strategy and developing sub plans to choose alternatives and coordinate activities

Organizing

• Deciding where decisions will be made

• Who will do what jobs and tasks

• Who will work for whom

Leading

Motivating

Inspiring

LeadingLeading

Controlling

Monitoring progress towards goal achievement and taking corrective action when needed

What is Scientific Management?

Role Differences Between Engineers and Managers

Role Differences Between Engineers and Managers

Behavioral Approaches

The Scope of ManagementLarge 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.

The Scope of Management1. 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.

The Scope of ManagementProduction 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.

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.

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 methodHuman relationsQuantitative technique6. 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.

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.

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.

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.

Barnard’s key concepts:Importance of an Individual's behaviour

Compliance Concept of "zone of indifference".

CommunicationFocused on importance of communication in informal organization.

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

Thank You