CHAPTER 1:THE SCOPE OF MANAGEMENT

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WHAT IS MANAGEMENT?

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• Art of getting things done through other people

Mary Parker Follet

• Field of knowledge that seeks to systematically understand why and how men work together to accomplish objectives and make these cooperative systems more useful to mankind

George R. Terry

• The process undertaken by one or more individuals to coordinate the activities of others to achieve results not achievable by one individual acting alone

Donnelly

WHAT IS MANAGEMENT?

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• 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

• A process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish the objectives by the use of people and resources.

Lubber Gullick

• An art because like any of the arts, it requires three components: vision, knowledge and successful communication

Henri M. Boettinger

BASIC MANAGEMENT CONCEPT

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Basic Management Concept

Functional Concept

‘Getting Things done Through

Others’ Concept

Leadership and Decision-making

Concept

Productivity Concept

Universality Concept

FUNCTIONS OF MANAGEMENT

• Planning, Organizing, Leading, Controlling

Newman and Summer

• Planning, Organizing, Staffing, Directing, Coordinating, Reporting, Budgeting

Luther Gullick

• Decision Making, Organizing, Staffing, Planning, Controlling, Communicating, Directing

Warren Haynes and Joseph Massie

• Planning, Organizing, Commanding, Coordinating, Controlling

Henri Fayol

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FUNCTIONS OF MANAGEMENT

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Planning Organizing

Leading Controlling

LEVEL OF MANAGERS

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Top Managers

Middle Managers

First Line Managers

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Top Managers

Middle Managers

First Line Managers

SUBORDINATE

ROLES OF MANAGERS

• Figurehead Role• Leader Role• Liaison Role

Interpersonal Roles

• Monitor Role• Disseminator Role• Spokesperson Role

Informational Roles

• Entrepreneur Role• Disturbance Handler Role• Resource Allocator Role• Negotiator Role

Decisional Roles

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MANAGERIAL SKILLS

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Technical Skills

Human Skill

Conceptual Skill

MANAGEMENT LEVELS

MANAGERIAL SKILLS

TOP MANAGERS

MIDDLE MANAGERS

FIRST LINE MANAGERS

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Technical

Skills

Human Skills

Human Skills

Human Skills

Conceptual Skills

Conceptual Skills

TechnicalSkills

Conceptual Skills

Technical

Skills

(10%)

(40%) (20%)

(40%)40%)

(60%)(30%)

(20%)

(40%)

OTHER SKILLS

Basic KnowledgeManagement

Skills

Communication Skills

Decision Making Skills

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PLANNING

ORGANIZING

LEADING

CONTROLLING

MANAGERS PERFORM

TO ACHIEVE ORGANIZATIONAL

STATED OBJECTIVES

IMPORTANCE OF MANAGEMENT

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• Critical element in the economic growth of the country

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• Essential in all organized effort

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• Dynamic, life giving element in every organization.

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MANAGEMENT – UNIVERSAL OR SCIENCE

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Universal

Manager easily transfer his skills and knowledge

Manager applies general principles

to all types of organization

Science

Management is studied and tested

systematically

Theories can guide managers

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CHARACTERISTICS OF

MANAGEMENTPUBLIC SECTOR PRIVATE SECTOR

Aim / Objective To provide a service to the community

To ensure maximum utilization of resources in generating profits

AccountabilityTo the public in general, especially when the budget is debated in parliament

To the shareholders of the company

Performance evaluation

The achievement of a better quality of life

The profits earned through market share

Incentives offered•Fixed salary scales and rigid promotional procedures

•Enjoy job security

Salary increases and promotion prospects closely linked to performance

Union involvement in decision-making A high level of involvement

Traditionally little or no involvement but moves are being made to increase worker participation

DIFFERENCES IN MANAGEMENT BETWEEN PUBLIC AND PRIVATE

SECTORS

CHAPTER 2:SOME SCHOOLS OF MANAGEMENT

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CLASSICAL

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• Henri Fayol

Administrative Management

• Frederick Winslow Taylor

Scientific Management

• Max Weber

Bureaucratic Management

ADMINISTRATIVE MANAGEMENT-AREAS IN BUSINESS ACTIVITIES-

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•Producing and manufacturing of products

Technical

•Buying raw materials and selling manufactured goods

Commercial

•Getting the capital necessary for business

Financial

•Recording and taking stock of costs and profits

Accounting

•Planning, organizing, commanding, coordinating, controlling

Managerial Function

•Protecting the assets of the company

Protecting

ADMINISTRATIVE MANAGEMENT-PRINCIPLES OF MANAGEMENT-

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PRINCIPLES OF MANAGEMENT

Division of work Authority

Discipline Unity of Command

Unity of Direction Subordinate of individual interests to general interest

Remuneration Centralization

Scalar Chain Order

Equity Stability of tenure of personnel

Initiative Esprit de corps

SCIENTIFIC MANAGEMENT

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Contribution

Time and Motion Studies

Differential Pay

Reorganization of Supervision

Recruitment and Training

Friendly Cooperation

BUREAUCRATIC MANAGEMENT

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Division of labour

Hierarchical Structure Meritocracy

Rules Impersonality

HUMAN RELATIONS SCHOOL- HAWTHORNE STUDIES -

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HawthorneStudies

The Test Room Studies

Interviewing Studies

Observational Studies

BEHAVIOURAL

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• Motivation theory• Human needs • Human behaviour• Hierarchy of need

Abraham Maslow

• Theory X and Y

Douglas Mc Gregor

MASLOW’S NEEDS HIERARCHY

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Selfactualization

Esteem

Affiliation

Security

Physiological

THEORY X AND THEORY Y

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• My employees dislike work and will try to avoid it if possible

• My employees want and need me to provide direction

• I am responsible for getting my employees to do as much work as possible

Theory X Leader

• Most employees like to work and achieve something

• I can count on my employees to be self-directed and work toward the organization’s objectives

• My employees are eager to take on responsibilities at work

Theory Y Leader

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SYSTEMS

InterlockingSub-systems

MANAGEMENT SCIENCE

• Also known as Operations Research

• Applies scientific methods to analyze and solve management problems

• Can solve specific problems objectively with greater precision

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CHARACTERISTICS FOR EFFECTIVE MANAGEMENT SCIENCE

• The problems should not be too broad or indefinite

• The problems should consists of tangible measurable factors

• The problems should offer opportunity for decision between alternative

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CONTINGENCY/SITUATIONAL

• Emerged from real life experience of managers

• The main determinants are related to the external and internal environment of an organization

• Three major elements:– Environment– Management concept– Contingent relationship

between them

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