INTRODUCTION TO MANAGEMENT. WHAT WE NEED TO KNOW? The evolution of management thought and the...

INTRODUCTION TO MANAGEMENT

WHAT WE NEED TO KNOW?

• The evolution of management thought and the pattern of Management Analysis

• Is Management a Science or Art?• Management and Society: The external

environment, Social Responsibility and Ethics• Global and Comparative Management-The

Basis of Global Management.

THE EVOLUTION OF MANAGEMENT THOUGHT

Broadly Divided into 4 stages

• Pre-scientific Management Period• Classical Theory– Scientific Management– Administrative Management– Bureaucratic Model

• Neo-classical Theory or Behaviour Approach• Modern Theory or System Approach

EVOLUTION OF MANAGEMENT THOUGHT

PRE-SCIENTIFIC MANAGEMENT

PERIOD

Contributions made by

-Roman Catholic-Military Organizations-Writers like Charles Babbage, James Watt etc.

CLASSICAL THEORY

-Scientific Mgt-Administrative Mgt theory-Bureaucratic Model

NEO-CLASSICAL THEORY

- Hawthorne Experiment

MODERN THEORY

-System Approach-Contingency Approach

2. Administrative Management Theory

• The study of how to create an organizational structure that leads to high efficiency and effectiveness

MAX WEBER’S ADMINISTRATIVE THEORY

Max Weber (1864-1920) German Sociologist

• Came up with bureaucratic model• He developed the principles of bureaucracy as

a formal system of organization.• He designed the model to ensure efficiency

and effectiveness.• It is the most important mean of controlling

over human beings.

Weber’s Principles of Bureaucracy

• Hierarchy of authority: Authority can be exercised effectively when positions are arranged hierarchically, so employees know whom to report to and who reports to them.

• Division of Labour: There should be a division of labour based upon competence and functional specialization.

Weber’s Principles of Bureaucracy cont..

• Impersonality: People should occupy positions because of their performance, not because of their social standing or personal contacts.

• Specified system of task and responsibility: The extent of each position’s formal authority and task responsibilities and it’s relationship to other positions should be clearly specified.

Weber’s Principles of Bureaucracy cont..

• Written rules of conduct: Should create a well defined system of rules, Standard Operating Procedures (SOPs), norms so that they can effectively control behaviour.

Advantage of Weber’s Model

• No confliction among job duties• Promotion is based on experience and merits.• Employees are bound to follow rules and

management process becomes easy.• Division of labour helps workers in becoming

experts.

Disadvantages of Weber’s model

• System suffers from too much of paper work• Human factor is neglected due to excessive

emphasis on rules• Employees don’t develop belongingness to the

organization.• Employees resist to change.

3. Behavioural Management Theory

• The study of how managers should personally behave to motivate employees and encourage them to perform at high levels and be committed to the achievement of organizational goals.

• It was concerned that the scientific and administrative theory of management ignored the human side of the organization.

Features of Behavioural Management Theory

• An organization is more than a formal structure. It is a system of interpersonal and intergroup relationships.

• Management must understand human behaviour.• Higher motivation and productivity can be obtained

through good human relations which can be developed through– Good leadership– Effective Communication– Employee Participation

Behavioural Management Theoryor

Theory X and Theory Y

• It is given by Douglas McGregor• He proposed the two different sets of

assumptions about workers.• He said in his book “The Human Side of

Enterprise” that People can be managed in two ways.

Theory X Assumptions

• The average worker is lazy, dislikes work and will do as little as possible and tries to escape it whenever possible.

• Managers must closely supervise and control through reward and punishment.

• Many employees rank job security on top, and they have little or no ambition.

• Employees generally dislikes responsibilities• An average employee needs formal direction.

Theory Y Assumptions• Workers are not lazy, want to do a good job.• They view work as natural and enjoyable.• Employees are committed to objectives and

exercise self-control and self direction for their attainment.

• If the job is rewarding and satisfying, then it will result in employees’ loyalty and commitment to organization.

• They can learn and seek responsibility.• All people are capable of making creative and

innovative decisions.

4. Management Science Theory• An approach that focuses on the use of quantitative

techniques to help managers make minimum use of organizational resources to produce goods and services.

• The management science theory includes– Quantitative Management: Linear-nonlinear programming,

modelling, simulation, queuing theory, chaos theory.– Operations Management: Techniques used to analyze any

aspect of the organization’s production system.– Total Quality Management: Focuses on analyzing input,

conversion and output activities to increase product quality.

– Management Information System (MIS): Provides information vital for effective decision making.

5. Organization Environment Theory

• The set of forces and conditions that operate beyond and organization’s boundaries but affect a manager’s ability to acquire and utilize resources

Organization Environment Theory cont..THE OPEN SYSTEM VIEW

• A system that takes resources for its external environment and transforms them into goods and services that are then sent back to that environment where they are bought by the customers.

Organization Environment Theory cont..THE CLOSED SYSTEM VIEW

• A self contained system that is not affected by changes in its external environment.

IS MANAGEMENT SCIENCE, ARTS?

What do you mean Management• Is the process of using what you have { RESOURCES }, to do what you want to do

…. {GOALS}George R Terry - "Management is a distinct

process consisting of planning, organising, actuating and controlling performed to determine and accomplish the objectives by the use of people and resources".

Resource

People Money Time Work Procedures Energy Materials Equipment

Goals

• Profit Levels or Maximum cost levels • Maintenance or growth of financial strength• Quality standards• Guest employee & management concerns• Professional obligations• Societal concerns

IS management an art or science or profession?

• ART: Because it depends on the skills, aptitude & creativity of the manager

• SCIENCE: Because there is considerable knowledge in the field of management with basic principles for guidance of basic activities.

• Profession: A body of specialized knowledge and recognized educational process of acquiring it, a std of qualification governing admission to the profession, a std conduct governing practitioners with clients, colleagues and the public.

The Management process

Planning

Organizing Coordinating

Staffing

Directing Controlling

Evaluating

Changes in

procedures

Revisio

n in

plans

• ADMINISTRATION ?

• MANAGEMENT ?

• ORGANIZATION ?

• Administration: Concerned with laying down of corporate policy, obtaining finance, production & distribution.

• Management: Concerned with actual execution of policies within limits set by administration.

• Organization: Combines the work in such a way with individuals/groups that duties formed provide best possible application of available effort

Levels of Management

Top Management

Middle Management

Supervisory Management

Non Management Employees

• Board of directors

CEO

• • Functional Top Execs

ExecssM • • Middle Level Execs

• First_Line Suupervisors First Line Supervisors

Administrative

Management

Traits of a managerBest Traits

Fair/just in decisions Trusting/trusted at the same time Caring & analytical in thought Empowering & capable/responsible Always punctual

Worst Traits Dishonest Shows favouritism Lazy Unorganized

Skills of a manager ……..

• Human Resource Skills

• Technical Skills

• Conceptual Skills

Board of directors CEO Functional Top Execs

Middle Level Execs

First Line Supervisors

Conceptual Human resource

Technical

Characteristics of Management

• Mgt aims at reaping high results in economic terms.• Management also implies skills and expertise in getting

things done through people.• Management is a process• Mgt is a universal activity-applicable in all field• Mgt is science, art, profession• It is an endeavour to achieve pre-determined objective.• It is a group activity• It is a system of authority• It involves decision making• It implies good leadership• It is dynamic and not static• It draws ideas and concepts from various disciplines• It is goal oriented

Scope of Management

• Management is considered as a continuing activity made up of basic management functions like planning, organizing, staffing, directing and controlling.

• It covers the following areas– HRM, Mktg Mgt, Production mgt, Materials Mgt,

Purchasing Mgt, office management.

Management and Society: The external environment, Social Responsibility and Ethics

Organizational External Environment