7/27/2019 fm class 2

1/31

Characteristics of Management

Management is a process

Management is a social process

Management is a system of authority

Management is goal-oriented

Management is dynamic

Management involves effective and efficientutilization of resources.

Management is multi-disciplinary

7/27/2019 fm class 2

2/31

Characteristics ..

Management is an innovative process

Management exercises influences .

7/27/2019 fm class 2

3/31

Evolution of Management

Thought Classical School

a) Bureaucratic OrganizationMax Weber

b) Administrative theory of management-

Henry fayol,Allen

c) Scientific managementF.W.Taylor

7/27/2019 fm class 2

4/31

Bureaucratic Organisation

This model is developed by Max Weber

Military organisation is the example of

such types Specific characteristics :a)Division of Labour

b) Hierarchy of authority

c) Technical competency

d) Rigidity in procedure and framework of rules.

e) Impersonality

7/27/2019 fm class 2

5/31

Scientific Management

F.W.Taylor is generally acknowledged as

the father of scientific management.

Taylors major concern through out most ofhis life was to increase efficiency in

production ,not only to lower cost but also to

make possible increased pay for workers

through their higher productivity .

7/27/2019 fm class 2

6/31

The problem of productivity was a matter of

ignorance on the part of both management

and labour . In his view productivity as the answer to to

both higher wages and higher profits .

He believed that the application of scientific

methods could yield productivity without the

expenditure of more human energy or effort .

7/27/2019 fm class 2

7/31

Taylors principles

Replacing rule of thumb with science

Obtaining harmony in group action ratherthan discord .

Achieving co-operation of human being ratherthan chaotic individualism

Working for maximum output ,rather thanrestricted output

Developing all workers to fullest extentpossible for their own and their companyshighest prosperity .

7/27/2019 fm class 2

8/31

Scientific Management: Major

Contribution Aim was to increase operational efficiency

of workers by solving their work relatedproblems

Guidelines developed :a) Scientific study and planning of work

b) Standardization

c) Division of responsibility between workers andmanagement

d) Wage incentives (different wage plan based onproductivity. )

7/27/2019 fm class 2

9/31

e) Scientific selection ,placement and

training

f) Time and motion study for doing thework properly,by finding out the best

way to do it.

7/27/2019 fm class 2

10/31

Followers of Taylor

A) Henry .L.Gantt:

a) He sought to increase worker efficiencythrough scientific investigation

b) He devised different types of incentiveplan

c) Scientific selection

7/27/2019 fm class 2

11/31

d) Gantt is most noted for creating a

graphic bar chart that could be used

by manager as scheduling device forplanning and controlling work .

e)Forerunner of modern technique like

PERT

7/27/2019 fm class 2

12/31

B) Frank and Lillian Gilbreth

Human aspect of work and

Interest in efficiency

Experimented with the design and use

of proper tools and equipment for

optimizing the work performance .

Work arrangement to eliminate wasteful

hand and body motion .

7/27/2019 fm class 2

13/31

Administrative Theory

Development of management process

Main contribution was how complex

management process can be separatedinto interdependent areas of

responsibilities and function.

14 principles of general management

7/27/2019 fm class 2

14/31

Henry Fayol & his contribution

Industrial activities

Elements of managementGeneral principle of

management.

7/27/2019 fm class 2

15/31

Industrial activities

Technical(production) Commercial( buying, selling , and

exchanging)

Financial(search for and optimum use of

capital

Security (protection of property and person)

Accounting()

Managerial (planning, organizing, command

,coordination and control )

7/27/2019 fm class 2

16/31

Elements of management :

Managers

activities

planning

organizing

Command

control

coordination

7/27/2019 fm class 2

17/31

General principle of management

Division of work

Authority &

responsibility

Discipline

Unity of command

Unity of direction

Subordination ofindividual to general

interest

Remuneration

Centralization

Scalar chain

Order

Equity

Stability of tenure

Initiative

Esprit de corps

7/27/2019 fm class 2

18/31

Neo-classical school

Human relation school

Behavioral school.

7/27/2019 fm class 2

19/31

Human Relation School

A remarkable attempt on the part

of the management practitioner for

making manager more sensitive toemployee needs

7/27/2019 fm class 2

20/31

Important contribution :

Organization is a Psycho-socialsystem.

Turned management theorist away from

simple model ofeconomic man to

social man .

Highly optimisticassumption were made

regarding human nature .

7/27/2019 fm class 2

21/31

Continues

There should be no conflict in the

organization .

To motivate the employee the managershould understand the individual .

To secure maximum contribution the

manager should get along withemployees .

7/27/2019 fm class 2

22/31

Continues .

Giving the employee more importance

and getting them involved in decision

making . It basically aim at providing high degree

of satisfaction and motivation through

improved working condition,style ofsupervision etc.

7/27/2019 fm class 2

23/31

Behavioral science approach

Main emphasis has been on the

scientific and systematic analysis of

human behavior with a view to

determine causes of behavior of anindividual

7/27/2019 fm class 2

24/31

Important Contribution :

Organization is a sociotechnical

system .

Integration of individual goal withorganizational goal .

Conflict and co-operation exist in the

organization .

7/27/2019 fm class 2

25/31

Continues..

Behavioral scientist recognize individual

difference

People are the key to productivity andtechnology .

7/27/2019 fm class 2

26/31

Remarkable Contributors :

A) Robert Owen :

o Famous Scottish businessman

o First to introduce paternalistic

approacho Reframe the work timing , age group

etc.

7/27/2019 fm class 2

27/31

Remarkable Contributors:

B) H.Munster berg

o Father of Industrial Psychology

o Scientific study of human behavior

o To explain individual difference

o Use of psychological test to improveselection and training procedure .

7/27/2019 fm class 2

28/31

Remarkable Contributors:

C) Mary Parker Follett:o Organization could be viewed from the

perspective of individual and group

behavior.o Organization should be based on a group

ethic rather than on individualism.

o Manager should rely more on theirknowledge and their experience to leademployees rather than on formal authority .

o Manager and worker should view

themselves as part of a common group.

7/27/2019 fm class 2

29/31

Remarkable Contributors:

D) Chester Barnard :

o Success depends on maintaining good

relation and with people and institution

o Continuous flow of input.

o Organization were made up of people with

interacting social relationship .

7/27/2019 fm class 2

30/31

Continues .

E)Hawthorne Study :

o Undertaken at the western electric

company.

o Begun in 1924 and continued through

the 1930s

o Basic aim- effect of illumination on the

productivity

7/27/2019 fm class 2

31/31

Continues ..

Findings :

o As the l ight level increases output for both group

increases .

o As the l ight level was dropped in he exper imental

group ,productivity continues to increase in both

groups

o Productivity decreased in the exper imental grouponly after l ight intensity has been reduced to

moon light .I l lumination is not directly related to

group productivi ty.