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Perspective ManagementLecture 2Environment of ManagementEvery time manager plan, they take into account the needs and desires of members of society outside the organizationAll managers, whether they operate in a business, a government agency, a church, a charitable foundation, take into account the elements and forces of their external environment Mintzbergs Management RolesInterpersonal Roles

Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright 1973 by H. Mintzberg. Reprinted by permission of Pearson Education.Mintzbergs Management RolesInformational Roles

Mintzbergs Management Roles Decisional Roles

Managers and EntrepreneurAre all small entrepreneurs managers? Are all small business managers entrepreneurs? The terms entrepreneur and manager are many times used interchangeably yet they are different. An entrepreneur starts a venture then a manager takes over to organize and co-ordinate continuous production. An entrepreneur is being enterprising as long as he starts something new then the routine day-to-day management of the business is passed on to the managerThemain differences between the Manager and EntrepreneurEntrepreneurManagerAn entrepreneur is involved with thestart-up processA manager with running the businessover a long period of timeAn entrepreneur assumes financial,material and other risksA manager does not have to bear risksAn entrepreneur is driven by perceptionof opportunityA manager by the resources hecurrently possessesAn entrepreneur initiates changeA manager follows rules & proceduresAn entrepreneur is his own bossA manager is a hired employeeAn entrepreneur gets uncertain rewardsA manager gets fixed rewards and salaryThe Social Responsibility of ManagersCorporate social responsibility is seriously considering the impact of the company's actions on societySocial responsiveness is "the ability of a corporation to relate its operations and policies to the social environment in ways that are mutually beneficial to the company and to societySocial audit is defined as a commitment to systematic assessment of and reporting on some meaningful, definable domain of the companys activities that have social impact.

Ethics in ManagingEthics is the discipline dealing with what is good and bad and with moral duty and obligationPersonal ethics has been referred to as the rules by which an individual lives his or her personal lifeBusiness ethics is concerned with truth and justice

Factors that May Raise Ethical Standards

Public disclosure and publicityThe increased concern of a well-informed publicGovernment regulationsEducation to raise the professionalism of business managers

Contribution towards managementF.W TaylorFrederick Winslow Taylor (born on 20 March 1856), widely known as F. W. Taylor, was an American mechanical engineer who sought to improve industrial efficiency. He is regarded as the father of scientific management, and was one of the first management consultants.

SCIENTIFIC MANAGEMENTIt is the art of knowing what exactly you want from your men to do & then seeing that it is done in best possible manner.In simple words it is just an application of science to management.

Taylors view about managementTaylor believed that the industrial management of his day was unprofessional, that management could be formulated as an academic discipline.Best results would come from the partnership between trained and qualified management and a cooperative and innovative workforce.Each side needed the other and there is no need for trade unions.Analyzing the work One best way to do it.

Principles of EFFECTIVE MANAGEMENTPrinciple 1:- Study the way workers perform their task, gather all the informal knowledge that worker possess and try to improve ways tasks are performedPrinciple 2:- Codify the new methods of performing tasks into written rules and SOPs

ContdPrinciple 3:- Selection means to choose the best employee according to the need. Their skill and experience must match the requirement of the job. Principle 4:- Establish a fair or acceptable level of performance for a task, and then develop a pay system that provides a reward for performance above acceptable level

Henri fayolHenri Fayol (born on 29 July 1841) was a French mining engineer and director of mines who developed a general theory of business administration. He and his colleagues developed this theory independently of scientific management. He was one of the most influential contributors to modern concepts of management.

Fayols 14 Principles of ManagementDivision of Labor: allows for job specialization. jobs having too much specialization can lead to poor quality and worker dissatisfaction.Authority and Responsibilityboth formal and informal authority resulting from special expertise.Unity of CommandEmployees should have only one boss.

ContdLine of AuthorityA clear chain of command from top to bottom of the firm.CentralizationThe degree to which authority rests at the top of the organization.Unity of DirectionA single plan of action to guide the organization.

ContdEquity - The provision of justice and the fair and impartial treatment of all employees.Order - The arrangement of employees where they will be of the most value to the organization and to provide career opportunities.Initiative - The fostering of creativity and innovation by encouraging employees to act on their own.

ContdDisciplineObedient, applied, respectful employees are necessary for the organization to function.Remuneration of PersonnelAn equitable uniform payment system that motivates contributes to organizational success.

ContdStability of Tenure of PersonnelLong-term employment is important for the development of skills that improve the organizations performance.Subordination of Individual Interest to the Common InterestThe interest of the organization takes precedence over that of the individual employee.

ContdEsprit de corpsFriendship, shared enthusiasm foster devotion to the common cause (development of organization).

Elton mayoGeorge Elton Mayo (born on 26 December 1880) was an Australian psychologist, sociologist and organization theorist.Elton Mayo and others initiated experiments at the Hawthorne plant of Western Electric Company focussing attention on the human dimensions of the organizationThe experimentThe findings

Hawthorne Experiments over a number of years, it is his work with 6 women workers in the relay assembly room that made his name. Throughout the series of experiments, one of Mayo's team sat with the girls as they worked, noting everything they did, keeping them up-to-date with the experiment, asking for clarification, and listening to their views. The experiment began by introducing carefully controlled changes, each of which was continued for a test period of 4 to 12 weeks. The results of these changes were as follows: under normal conditions, with a 48-hour week, including Saturdays, and no breaks, the girls produced 2,400 relays a week each. they were then put on piece-work for 8 weeks. Output went up. two 5-minute rest pauses, morning and afternoon, were introduced for a period of 5 weeks. Output went up once more.the rest pauses were lengthened to 10 minutes each. Output went up sharply. six 5-minute pauses were introduced, and the girls complained that their work rhythm was broken by the frequent pauses. Output fell slightly the 2 rest pauses were re-instated, the first with a hot meal supplied by the Company free of charge. Output went up.the girls finished at 4.30 pm instead of 5.00 pm. Output went up.the girls finished at 4.00 pm. Output remained the same. finally, all the improvements were taken away, and the girls went back to the same conditions that they had at the beginning of the experiment: work on Saturday, 48-hour week, no rest pauses, no piece work and no free meal. These conditions lasted for a period of 12 weeks. Output was the highest ever recorded with the girls averaging 3000 relays a week each.

FindingsOrganization is a social unitThe human factor is the most important element in organizationBehaviour and sentiments are closely related and group influences affects individual behaviorSpecial attention causes people to increase their effortsPeter DruckerPeter F Drucker (November 19, 1909) was an influential writer, management consultant, and self-described social ecologist.He had revolutionised management thinking in early 50sHis chief contributions includes

Nature of ManagementManagement is a dynamic, life-giving element in an organisationManagement is a distinct, discipline and a social functionManagers should be creative and innovative in order to produce resultsManagers JobManagers are know by their performance. They must set meaningful goals for the entire organizationManagers impact society through their actions. It is their duty to meet social expectation regarding quality, service etcHe wanted managers to set meaningful objectives in eight key areas of business:- market-standing, innovation, productivity, physical and financial resources, profitability, manager performance and development, worker performance and social responsibility MBODrucker developed novel concept called Management By ObjectivesHe emphasised the importance of setting goals that are tangible, verifiable and measurableHe wanted managers to focus on what must be accomplished (goals) rather than how it was to be accomplished (methods)

DecentralisationHe wanted managers to create autonomous, self-contained, independent product divisionIn place of task specialization, he advocated federal decentralisation.According to him, this would make managers more accountable for results and allow them to grow steadilyStructure and Decision -MakingDrucker wanted managers to reduce the number of layers within the organizationThe organization structure should be dynamic in natureAccording to Drucker, the life of a manager is a perpetual choice-making activity. Manager should be look into all aspects of business before taking decisionManager should be accountable for his decision