Theory

BIMTECH FOUNDATION COURSE : PPM BIMTECH FOUNDATION COURSE : PPM 2011 JUN2011 JUN

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Principles of Management Principles of Management

MODULE - 2MODULE - 2Introduction and Evolution of Introduction and Evolution of

Management: Management: Concept, Definition ,Skills, Concept, Definition ,Skills, organization, organization,

Scientific Management, Fayol’s 14 Principles, Scientific Management, Fayol’s 14 Principles, Hawthorne Experiment, Systems Approach, Hawthorne Experiment, Systems Approach,

Contingency ApproachContingency Approach


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Concept & Definition of ‘MGMT’Concept & Definition of ‘MGMT’

The term ‘management’ have The term ‘management’ have different meanings .different meanings .And it is important to understand And it is important to understand different definitions, likedifferent definitions, likeMANAGEMENT as a PROCESSMANAGEMENT as a PROCESSMANAGEMENT as a DISCIPLINEMANAGEMENT as a DISCIPLINEMANAGEMENT as PEOPLEMANAGEMENT as PEOPLEMANAGEMENT as a CAREERMANAGEMENT as a CAREER


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MANAGEMENT as a PROCESSMANAGEMENT as a PROCESS

Management is a process involving Management is a process involving certain functions and activities that certain functions and activities that managers must perform. managers must perform.

Managers also use principles in Managers also use principles in managing which are generally managing which are generally accepted tenets that guide their accepted tenets that guide their thinking and action.thinking and action.

This is what managers do.This is what managers do.


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MANAGEMENT as a DISCIPLINEMANAGEMENT as a DISCIPLINE

Classifying Mgmt as a discipline Classifying Mgmt as a discipline implies that it is an accumulated implies that it is an accumulated body of knowledge that can be body of knowledge that can be learned.learned.

Thus Mgmt is a subject with Thus Mgmt is a subject with principles, concepts and theories.principles, concepts and theories.


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MANAGEMENT as PEOPLEMANAGEMENT as PEOPLE

It implies people who guide, direct, It implies people who guide, direct, and thus manage organizations.and thus manage organizations.

The perspective of management as The perspective of management as people refers to, and emphasizes the people refers to, and emphasizes the importance of the employees who importance of the employees who managers work with and manage in managers work with and manage in accomplishing an organization's accomplishing an organization's objectives. objectives.


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MANAGEMENT as a CAREERMANAGEMENT as a CAREER

People who devote their working People who devote their working lives to the process of management lives to the process of management actually pursue management as actually pursue management as career.career.


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The different meanings can be The different meanings can be related as ………….related as ………….

“ “ PeoplePeople who wish to have a who wish to have a career career as as a manager must study the a manager must study the discipline discipline of management as a means toward of management as a means toward practicing the practicing the process process of of management.”management.”


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““MANAGEMENT is a process MANAGEMENT is a process undertaken by one or more persons undertaken by one or more persons to coordinate the activities of other to coordinate the activities of other persons to achieve results not persons to achieve results not attainable by any one person acting attainable by any one person acting alone.”alone.”


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Organizations and Principles Organizations and Principles of Managementof Management

What is management? What is management? Combine the function of management Combine the function of management

with other resources to achieve with other resources to achieve organizational objectives.organizational objectives.

Four functions of Management:Four functions of Management:- Planning- Planning- Organizing- Organizing- Directing/Leading- Directing/Leading- Controlling- Controlling


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PlanningPlanningSetting goals: long-term goals, Setting goals: long-term goals, intermediate goals, short-term goalsintermediate goals, short-term goals

Developing strategies: how to reach Developing strategies: how to reach the goals?the goals?

Determining resources: capital & Determining resources: capital & manpowermanpower

Setting standards: target, e.g. save Setting standards: target, e.g. save $1million.$1million.


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OrganizingOrganizing

Allocating resources, assign Allocating resources, assign tasks, establish procedurestasks, establish procedures

Preparing organization chartPreparing organization chart

Recruiting, selecting, training & Recruiting, selecting, training & developing employeesdeveloping employees

Matching the job with Matching the job with employees: effectiveness & employees: effectiveness & efficiencyefficiency


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Directing/LeadingDirecting/Leading

Guiding & motivatingGuiding & motivating

Giving assignmentsGiving assignments

Explaining routinesExplaining routines

Clarifying policiesClarifying policies

Providing feedback Providing feedback


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ControllingControlling

Establish standardsEstablish standards

Measuring resultsMeasuring results

Monitoring performanceMonitoring performance

Taking corrective actionTaking corrective action


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Integration of Management Integration of Management FunctionsFunctions

Every function is importantEvery function is important

4 functions must be co-4 functions must be co-coordinated to achieve the coordinated to achieve the optimum level of performance.optimum level of performance.


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Levels of ManagementLevels of ManagementTop management: responsible for Top management: responsible for overall performance & effectiveness, overall performance & effectiveness, formulate strategies, set polices, formulate strategies, set polices, CEO( CEO( Strategic Planning &Long-term Strategic Planning &Long-term goals)goals)

Middle management: implement Middle management: implement strategies, policies, decision made by strategies, policies, decision made by top management, Plant Manager, top management, Plant Manager, Division head( Division head( Tactical Planning, Tactical Planning, Intermediate goals)Intermediate goals)


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Levels of ManagementLevels of Management

Supervisory (first-level): Supervisory (first-level): Working & supervising worker, Working & supervising worker, interact with suppliers, Foreman, interact with suppliers, Foreman, Section leader( Section leader( Operational, Operational, Planning & Short-term goals)Planning & Short-term goals)


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Managerial SkillsManagerial SkillsConceptual skills: mental ability to think & Conceptual skills: mental ability to think & see beyond the present situation, Top see beyond the present situation, Top managementmanagement

Technical skills: ability to use the Technical skills: ability to use the knowledge, tools & techniques, help knowledge, tools & techniques, help employees solve work-related problems employees solve work-related problems accounting, engineering, sales, First-line accounting, engineering, sales, First-line management management

Human relations skills: able to understand Human relations skills: able to understand and interact with people, all level and interact with people, all level managementmanagement


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Managerial SkillsManagerial Skills

Decision-making skills: ability to Decision-making skills: ability to define problems & selecting the define problems & selecting the best courses of action.best courses of action.

Time management skills: Time management skills: efficient and productive use of efficient and productive use of timetime


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Levels of ManagementLevels of Management

TopManagers

Middle Managers

First-line/Front-line Managers

Strategic Planning &Long-term goals

Tactical Planning &Intermediate goals

OperationalPlanning &

Short-term goals


2020Chapter 5 8

Basic Management SkillsBasic Management Skills

Top LevelManagement

Middle LevelManagement

First/Front LineManagement

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Basic Skills Cont.Basic Skills Cont.

Top LevelManagement

Middle LevelManagement

First/Front LineManagement Tim

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Critical Challenges to Critical Challenges to ManagementManagement

Globalization of competition: Globalization of competition: how to gain advantage how to gain advantage

Increasing emphasis on quality: Increasing emphasis on quality: ISO 9000ISO 9000

Ethics and social responsibility: Ethics and social responsibility: more sensitive to legal & social more sensitive to legal & social expectations.expectations.


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Critical Challenges to Critical Challenges to ManagementManagement

Challenge of empowerment: Challenge of empowerment: give employees more decision-give employees more decision-making freedommaking freedom

Changing organization hierarchy: Changing organization hierarchy: downsizing, re-structuring downsizing, re-structuring


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More Responsive More Responsive OrganizationOrganization

Flat organization structure Flat organization structure instead of tall, wide span of instead of tall, wide span of controlcontrol

Departmentalization: replaced Departmentalization: replaced by matrix organization by matrix organization

Decentralization rather than Decentralization rather than centralization.centralization.


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Early thinking about Management Early thinking about Management

““Another classic work that offers Another classic work that offers insights to modern managers is insights to modern managers is ‘‘The The Art of WarArt of War’’ written by the Chinese written by the Chinese philosopher Sun Tzu more than 2000 philosopher Sun Tzu more than 2000 years ago. years ago.

Sun TzuSun Tzu’’s dictums are as follows: s dictums are as follows:

When the enemy advances, we When the enemy advances, we retreat!retreat!When the enemy halts, we harass!When the enemy halts, we harass!


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Sun TzuSun Tzu’’s dictums contd..s dictums contd..When the enemy seeks to avoid When the enemy seeks to avoid battle, we attack!battle, we attack!When the enemy retreats, we When the enemy retreats, we pursue!pursue!

Although these rules were meant to Although these rules were meant to guide military strategy, they have guide military strategy, they have been used when planning a strategy been used when planning a strategy to engage business competitors to engage business competitors


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Evolution of Management TheoryEvolution of Management Theory

This theory arose in part from the need to This theory arose in part from the need to increase productivity. In the US especially, increase productivity. In the US especially, skilled labour was in short supply at the skilled labour was in short supply at the beginning of the 20th century. The only beginning of the 20th century. The only way to expand productivity was to raise way to expand productivity was to raise the efficiency of workers. the efficiency of workers. Therefore, Frederick Taylor, Henry L. Therefore, Frederick Taylor, Henry L. Gantt, & Frank and Lillian Gilbreth devised Gantt, & Frank and Lillian Gilbreth devised the body of principles known as the body of principles known as Scientific Scientific Management Theory. Management Theory.


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Frederick W. Taylor (1856-1915)Frederick W. Taylor (1856-1915)Frederick W. Taylor rested his philosophy on four basic principles:Frederick W. Taylor rested his philosophy on four basic principles:

The development of a true science of The development of a true science of management, so that the best method for management, so that the best method for performing each task could be determined. performing each task could be determined. The scientific selection of workers, so that The scientific selection of workers, so that each worker would be given responsibility for each worker would be given responsibility for the task for which he or she was best suited. the task for which he or she was best suited. The scientific education and development of The scientific education and development of the worker. the worker. Intimate, friendly cooperation between Intimate, friendly cooperation between management and labour. management and labour.


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Frederick W. Taylor Contd..Frederick W. Taylor Contd..He contended that the success of these principles He contended that the success of these principles required required ‘‘a complete mental revolutiona complete mental revolution”” on the on the part of management and labour. part of management and labour. Taylor based his management system on Taylor based his management system on production-line time studies. production-line time studies. He believed that management and labour had a He believed that management and labour had a common interest in increasing productivity.common interest in increasing productivity.He also devised a compensation system called He also devised a compensation system called the the ““differential rate systemdifferential rate system”” involving the involving the Payment of higher wages to more efficient Payment of higher wages to more efficient workers. workers.


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Contributions of Scientific Contributions of Scientific Management TheoryManagement Theory

The efficiency techniques of scientific The efficiency techniques of scientific management theory have been management theory have been applied to modern assembly line & to applied to modern assembly line & to many tasks in non-industrial many tasks in non-industrial organizations (e.g., fast-food service) organizations (e.g., fast-food service) and increased their efficiency. and increased their efficiency.


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Limitations of Scientific Management Limitations of Scientific Management TheoryTheory

Workers & unions began to oppose this Workers & unions began to oppose this approach because they feared that working approach because they feared that working harder or faster would exhaust whatever harder or faster would exhaust whatever work was available causing layoffs. work was available causing layoffs. His critics objected to the His critics objected to the ““speed upspeed up”” conditions that placed undue pressures on conditions that placed undue pressures on employees to perform at faster & faster employees to perform at faster & faster levels. levels. The emphasis on productivity and by The emphasis on productivity and by extension profitability led some managers extension profitability led some managers to exploit both workers and customers. to exploit both workers and customers.


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Henry L. Gantt (1861-1919)Henry L. Gantt (1861-1919)““He worked with Taylor but began to He worked with Taylor but began to

reconsider Taylor's incentive system as reconsider Taylor's incentive system as having too little motivational impact.having too little motivational impact.””

He came up with a new idea: He came up with a new idea: every every worker who finished a dayworker who finished a day’’s assigned s assigned work load Would win a 50-cent bonus. work load Would win a 50-cent bonus. Further, the supervisor would earn a Further, the supervisor would earn a bonus for each worker who reached bonus for each worker who reached the daily standard, plus an extra the daily standard, plus an extra bonus if all the workersbonus if all the workers


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Henry L. Gantt ContdHenry L. Gantt Contd““He also originated a charting system for production He also originated a charting system for production

scheduling: the scheduling: the ““Gantt chartGantt chart””, still in use today, still in use today””. . It also formed the basis for two charting devices It also formed the basis for two charting devices which were developed to assist in planning, which were developed to assist in planning, managing and controlling complex organizations: managing and controlling complex organizations: the Critical path Method (CPM), originated by Du the Critical path Method (CPM), originated by Du Pont & Program Evaluation and Review Technique Pont & Program Evaluation and Review Technique (PERT), developed by the Navy. (PERT), developed by the Navy. Lotus 1-2-3 is also a creative application of the Lotus 1-2-3 is also a creative application of the Gantt Chart. Gantt Chart.


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The Gilbreths: Frank B. & Lillian M. The Gilbreths: Frank B. & Lillian M. Gilbreth (1868-1924 & 1878-1972)Gilbreth (1868-1924 & 1878-1972)

They collaborated on fatigue and motion studies They collaborated on fatigue and motion studies and focussed on ways of promoting the individual and focussed on ways of promoting the individual workerworker’’s welfare. s welfare. To them, the ultimate aim of scientific mgmt was To them, the ultimate aim of scientific mgmt was to help workers reach their full potential as to help workers reach their full potential as human beings. human beings. In their conception, motion & fatigue were In their conception, motion & fatigue were intertwined-every motion that was eliminated intertwined-every motion that was eliminated reduced fatigue. reduced fatigue. They argued that motion study would raise They argued that motion study would raise worker morale because of its obvious physical worker morale because of its obvious physical benefits & because it demonstrated benefits & because it demonstrated managementmanagement’’s concern for the worker. s concern for the worker.


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Classical Organization Theory School Classical Organization Theory School

Henri Fayol (1841-1925)Henri Fayol (1841-1925)

He is generally hailed as the founder He is generally hailed as the founder of the of the classical management school classical management school not because he was the first to not because he was the first to investigate managerial behaviour, investigate managerial behaviour, but because he was the first to but because he was the first to systematize it. systematize it.


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FayolFayol’’s 14 Principles of Managements 14 Principles of Management1.1. Division of LabourDivision of Labour:: The most people The most people

specialize, the more efficiently they can specialize, the more efficiently they can perform their work, e.g., modern assembly perform their work, e.g., modern assembly line.line.

2.2. AuthorityAuthority:: Besides formal authority, Besides formal authority, managers musty have personal authority to managers musty have personal authority to compel obedience.compel obedience.

3.3. DisciplineDiscipline:: Members in an org. need to Members in an org. need to respect the rules & agreements that govern respect the rules & agreements that govern the org. the org.

4.4. Unity of CommandUnity of Command:: Each employee must Each employee must receive instructions from only one person. receive instructions from only one person.

5.5. Unity of DirectionUnity of Direction:: Operations within the Operations within the org. having the same objective should be org. having the same objective should be directed by directed by only one manager. only one manager.


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6.6. SSubordinationubordination of individual interest to the of individual interest to the common good.common good.

7.7. Remuneration:Remuneration: Compensation for worm done Compensation for worm done should be fair to both employees and employers.should be fair to both employees and employers.

8.8. Centralization:Centralization: decreasing the role of decreasing the role of subordinates in decision making is centralization; subordinates in decision making is centralization; increasing their role is decentralization. He increasing their role is decentralization. He believed that managers should retain final believed that managers should retain final responsibility but at the same time give the responsibility but at the same time give the subordinates enough authority to do their jobs subordinates enough authority to do their jobs properly. The problem is to find the proper properly. The problem is to find the proper degree of centralization in each case.degree of centralization in each case.

9.9. Hierarchy:Hierarchy: The line of authority in an org. runs The line of authority in an org. runs in order of rank from top management to the in order of rank from top management to the lowest level of the enterprise. lowest level of the enterprise.

10.10. Order:Order: Materials & people should be in the right Materials & people should be in the right place at the right time.place at the right time.


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11.11.Equity:Equity: managers should be both managers should be both friendly and fair to their subordinates.friendly and fair to their subordinates.

12.12.Stability of StaffStability of Staff:: A high employee A high employee turnover rate undermines the turnover rate undermines the efficient functioning of an org. efficient functioning of an org.

13.13.InitiativeInitiative:: Subordinates should be Subordinates should be given the freedom to conceive and given the freedom to conceive and carry out their plans, even though carry out their plans, even though some mistakes may result. some mistakes may result.

14.14.Esprit de CorpsEsprit de Corps:: Promoting team Promoting team spirit will give the org. a sense of spirit will give the org. a sense of unity. unity.


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Max Weber (1864-1920)Max Weber (1864-1920)He developed a theory of bureaucratic He developed a theory of bureaucratic management that stressed the need for a management that stressed the need for a strictly defined hierarchy governed by clearly strictly defined hierarchy governed by clearly defined regulations & lines of authority. defined regulations & lines of authority. He considered the ideal organization to be a He considered the ideal organization to be a bureaucracy whose activities & objectives bureaucracy whose activities & objectives were rationally thought out & whose divisions were rationally thought out & whose divisions of labour were explicitly spelled out. of labour were explicitly spelled out. We should be careful to apply our negative We should be careful to apply our negative connotations of the word bureaucracy to the connotations of the word bureaucracy to the term as Weber used it. term as Weber used it. Weber sought to improve the performance of Weber sought to improve the performance of socially important organizations by making socially important organizations by making their operations predictable and productive. their operations predictable and productive.


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Mary Parker Follett (1868-1933)Mary Parker Follett (1868-1933)

She introduced many new elements in the She introduced many new elements in the classical school in the area of human classical school in the area of human relations & organization structure. relations & organization structure. She called management She called management ““the art of getting the art of getting things done through peoplethings done through people””. . She was a great believer in the power of She was a great believer in the power of the group, where individuals could combine the group, where individuals could combine their diverse talents into something bigger. their diverse talents into something bigger. Her holistic model of control took into Her holistic model of control took into account not just individuals and groups, account not just individuals and groups, but the effects of environmental factors but the effects of environmental factors also.also.


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Chester I. Barnard (1886-1961)Chester I. Barnard (1886-1961)According to him, people come together in According to him, people come together in formal organizations to achieve ends they formal organizations to achieve ends they cannot accomplish working alone. cannot accomplish working alone. An enterprise can operate efficiently & survive An enterprise can operate efficiently & survive only when the organizationonly when the organization’’s goals are kept in s goals are kept in balance with the aims & needs of the balance with the aims & needs of the individuals working for it. individuals working for it. His recognition of the importance & His recognition of the importance & universality of the universality of the ““informal organizationinformal organization”” was was a major contribution to management thought. a major contribution to management thought. He proposed concept of He proposed concept of ““zone of zone of indifferenceindifference””, i.e., what the employee would , i.e., what the employee would do without questioning the managerdo without questioning the manager’’s s authority. The more activities that fell within authority. The more activities that fell within this, the smoother & more cooperative an this, the smoother & more cooperative an organization would be. organization would be.


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The Behavioural SchoolThe Behavioural SchoolThe Human Relations Movement”The Human Relations Movement”

It is a general term to describe the ways in which It is a general term to describe the ways in which managers interact with their employees. It is managers interact with their employees. It is effective when effective when ““employee managementemployee management”” stimulates more and better work.stimulates more and better work.


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The Hawthorne experimentsThe Hawthorne experiments::

The Human Relations movement grew out The Human Relations movement grew out of a famous series of studies conducted at of a famous series of studies conducted at the Western Electric company’s the Western Electric company’s Hawthorne plant near Chicago from 1924 Hawthorne plant near Chicago from 1924 to 1933. to 1933.

These studies attempted to investigate the These studies attempted to investigate the relationship between level of lightning in relationship between level of lightning in the workplace& worker productivity.the workplace& worker productivity.


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The Hawthorne experiments ContdThe Hawthorne experiments Contd

Employees divided into two groups (test group & Employees divided into two groups (test group & control group) & manipulated level of lightning.control group) & manipulated level of lightning.The results were ambiguous showing that something The results were ambiguous showing that something other than lighting was influencing the workerother than lighting was influencing the worker’’s s performance.performance.In a new set of experiments, a small grp. of workers In a new set of experiments, a small grp. of workers was placed in a separate room & a no. of variables was placed in a separate room & a no. of variables were altered: wages, rest periods, were increased; were altered: wages, rest periods, were increased; performance tended to increase over time, but it also performance tended to increase over time, but it also rose & fell erratically. rose & fell erratically. It was inferred that workers who receive special It was inferred that workers who receive special attention will perform better simply because they attention will perform better simply because they received that attention, which acted as a motivator. A received that attention, which acted as a motivator. A phenomenon labeled as the phenomenon labeled as the ‘‘Hawthorne effectHawthorne effect’’. . The researchers also concluded that informal work The researchers also concluded that informal work groups-the social environment of employees-have a groups-the social environment of employees-have a positive influence on productivitypositive influence on productivity. .


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The Behavioral Science ApproachThe Behavioral Science ApproachMcGregor:McGregor:

He distinguished 2 alternate basic He distinguished 2 alternate basic assumptions about people & their approach to assumptions about people & their approach to work-……………work-……………

Theory X and Theory Y.Theory X and Theory Y.Theory XTheory X is the traditional view of motivation is the traditional view of motivation which holds that work is distasteful to which holds that work is distasteful to employees, who must be motivated by force, employees, who must be motivated by force, money or praise. The roots of this theorycan money or praise. The roots of this theorycan be traced to the days of scientific be traced to the days of scientific management & the factories based on these management & the factories based on these principles. principles. Theory YTheory Y takes the opposite view & assumes takes the opposite view & assumes that people are inherently motivated to work that people are inherently motivated to work & do a good job. & do a good job.


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The Management Science SchoolThe Management Science School1.1. Mixed team of specialists from relevant Mixed team of specialists from relevant

disciplines are called in to analyze a problem & disciplines are called in to analyze a problem & propose a course of action to management.propose a course of action to management.

2.2. The team constructs a mathematical model that The team constructs a mathematical model that shows in symbolic terms all relevant factors shows in symbolic terms all relevant factors bearing on the problem & how they are bearing on the problem & how they are interrelated.interrelated.

3.3. By changing the values of the variables in the By changing the values of the variables in the model & analyzing the different equations of model & analyzing the different equations of the model, with a computer, the team can the model, with a computer, the team can determine the effects of each change. determine the effects of each change.

4.4. It however, promotes an emphasis on only the It however, promotes an emphasis on only the aspects of the organization that can be aspects of the organization that can be captured in numbers missing the importance of captured in numbers missing the importance of people and relationships.people and relationships.


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Recent Developments in Management Recent Developments in Management TheoryTheory

The Systems ApproachThe Systems ApproachIt views the organization as a unified, It views the organization as a unified, directed system of interrelated parts. It directed system of interrelated parts. It tells us that the activity of any segment of tells us that the activity of any segment of an organization affects in varying degrees an organization affects in varying degrees the activity of every other segment. the activity of every other segment. According to this approach, managers According to this approach, managers cannot function wholly within the confines cannot function wholly within the confines of the traditional organization chart. They of the traditional organization chart. They must mesh their department with the must mesh their department with the whole enterprise whole enterprise


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Some key concepts of SYSTEMS Approach:Some key concepts of SYSTEMS Approach:SubsystemsSubsystems:: parts making up the whole system parts making up the whole systemSynergySynergy:: Situation in which the whole is greater Situation in which the whole is greater than its parts. In organizational terms, synergy than its parts. In organizational terms, synergy means that departments that interact cooperatively means that departments that interact cooperatively are more productive than they would be if they are more productive than they would be if they operated in isolation.operated in isolation.Open SystemOpen System:: A system that interacts with its A system that interacts with its environment. environment. A closed systemA closed system: A system that does not interact : A system that does not interact with its environment.with its environment.System boundarySystem boundary:: The boundary that separates The boundary that separates each system from its environment. It is rigid in a each system from its environment. It is rigid in a closed system, flexible in an open system. closed system, flexible in an open system. FlowFlow:: Components such as information, material & Components such as information, material & energy that enter leave a system.energy that enter leave a system.FeedbackFeedback:: The part of system control in which the The part of system control in which the results of actions are returned to the individual results of actions are returned to the individual allowing work procedures to be analyzed and allowing work procedures to be analyzed and corrected corrected


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The Contingency ApproachThe Contingency ApproachThe view that the management The view that the management technique that best contributes to the technique that best contributes to the attainment of organizational goals attainment of organizational goals might vary in different types of might vary in different types of situations or circumstances; also situations or circumstances; also called the called the ‘‘situational approachsituational approach’’. . This approach was developed by This approach was developed by managers, consultants & researchers managers, consultants & researchers who tried to apply the concepts of the who tried to apply the concepts of the major schools to real-life situations major schools to real-life situations


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Dynamic Engagement ApproachDynamic Engagement Approach

It emphasizes the intensity of modern It emphasizes the intensity of modern mgmt relationships & the intensity of time mgmt relationships & the intensity of time pressures that govern these relationships. pressures that govern these relationships. This term best expresses the vigorous This term best expresses the vigorous ways todayways today’’s most successful managers s most successful managers focus on human relationships and quickly focus on human relationships and quickly adjust to changing conditions over time.adjust to changing conditions over time.6 different themes of mgmt theory are 6 different themes of mgmt theory are emerging under the umbrella of dynamic emerging under the umbrella of dynamic engagement. engagement.


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6 different themes of mgmt theory6 different themes of mgmt theoryNew Organizational environmentsNew Organizational environments:: This approach This approach recognizes that an organizationrecognizes that an organization’’s envt. is a complex s envt. is a complex dynamic web of people interacting with each other. dynamic web of people interacting with each other. Thus, managers must not only pay attention to their Thus, managers must not only pay attention to their own concerns but also understand what is important own concerns but also understand what is important to other managers both within their org. & at other to other managers both within their org. & at other organizations. organizations. e.g., Portere.g., Porter’’s theory of competitive strategy.s theory of competitive strategy.Ethics & Social ResponsibilityEthics & Social Responsibility: This approach moves : This approach moves ethics from the fringe of management theory to the ethics from the fringe of management theory to the heart of it. heart of it. Globalization & ManagementGlobalization & Management:: Acc. To this approach, Acc. To this approach, managers facing the 21st century must think of managers facing the 21st century must think of themselves as global citizens. Ohmae makes this themselves as global citizens. Ohmae makes this point as he describes a point as he describes a ‘‘borderlessborderless’’ world where world where managers treat all customers as equidistant from managers treat all customers as equidistant from their organizations their organizations


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Inventing & Reinventing organizationsInventing & Reinventing organizations:: It It advocates the ways to unleash the creative advocates the ways to unleash the creative potential of their employees & themselves. potential of their employees & themselves. For e.g., Peters concept of For e.g., Peters concept of ““liberation liberation managementmanagement”” challenges the kind of rigid challenges the kind of rigid organization structures that inhibit peopleorganization structures that inhibit people’’s s creativity. Hammer & Champsy proposed creativity. Hammer & Champsy proposed ““reengineering the corporationreengineering the corporation””, i.e. when an , i.e. when an org. conducts a significant reassessment of org. conducts a significant reassessment of what it is all about. what it is all about. Cultures & MulticulturalismCultures & Multiculturalism:: Various Various perspectives & values that people of different perspectives & values that people of different cultural backgrounds bring to their cultural backgrounds bring to their organizations are not only a fact of life but a organizations are not only a fact of life but a significant source of contributions significant source of contributions Quality:,Quality:, TQM should be in every manager TQM should be in every manager’’s s vocabulary vocabulary

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