Amity School of BusinessManagement Foundation

Module-I

ByNeeti Saxena

Assistant Professor, ASB

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Questions for the Session Who Are Managers?

• Explain how manager differ from non-managerial employees.

• Discuss how to classify managers in organizations.

What Is Management?• Define management.

• Contrast efficiency and effectiveness.

• Explain why efficiency and effectiveness are important to management.

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Questions What Do Managers Do?

•Describe the four functions of management.

•Explain Mintzberg’s managerial roles.

•Describe Katz’s three essential managerial skills and how the importance of these skills changes depending on managerial level.

•Discuss the changes that are impacting managers’ jobs.

•Explain why customer service and innovation are important to the manager’s job.

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Questions What Is An Organization?

• Describe the characteristics of an organization.

• Explain how the concept of an organization is changing.

Why Study Management?• Explain the universality of management concept.

• Discuss why an understanding of management is important even if you don’t plan to be a manager.

• Describe the rewards and challenges of being a manager.

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What Is An Organization?• An Organization Defined

– A deliberate arrangement of people to accomplish some specific purpose

• Common Characteristics of Organizations

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Traditional VS New

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Why Study Management ?

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Managerial Skills

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Managerial Skills

Professor Robert L. Katz has popularized the concept of "Managerial Skills" which was earlier developed by Henri Fayol.

Technical skills: Lower Level Human skills: Middle LevelConceptual skills: Top Level

5 more skills can be stated :1. Design skills2. Administrative skills3. Decision Making skills4. Communication skills5. Leadership skills

What is Management ? The process of achieving the

objectives of the business organization by bringing together human, physical, and financial resources in an optimum combination and making the best decision for the organization while taking into consideration its operating environment.

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What is Management ?It is….• A Discipline - Accumulated body

of knowledge that can be learned

• Human Activity - managing the most important asset of an organisation ie People

• Process – involving certain functions and activities.

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Thus Management is ….

• Management is the Process of “getting things done through the efforts of others”,getting from where we are to where we want to be with the least expenditure of time,money and efforts.

• Coordinating individual and group efforts towards superordinate goals.

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Who Are Managers?• Manager

– Someone who works with and through other people by coordinating and integrating their work activities in order to accomplish organizational goals.

– Classification • First-line Managers

– Are at the lowest level of management and manage the work of non-managerial employees.

• Middle Managers– Manage the work of first-line managers.

• Top Managers– Are responsible for making organization-wide decisions and establishing plans and

goals that affect the entire organization. 12

What do Managers Do ?• Functional Approach

– Planning• Defining goals, establishing strategies to achieve goals,

developing plans to integrate and coordinate activities.

– Organizing• Arranging work to accomplish organizational goals.

– Leading• Working with and through people to accomplish goals.

– Controlling• Monitoring, comparing, and correcting the work.

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Managers do Management

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Managerial Skills

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Managerial Skills

Professor Robert L. Katz has popularized the concept of "Managerial Skills" which was earlier developed by Henri Fayol.

Technical skillsHuman skillsConceptual skills

5 more skills can be stated :1. Design skills2. Administrative skills3. Decision Making skills4. Communication skills5. Leadership skills

What do Managers do ?

– Efficiency• “Doing things right”

– Getting the most output for the least inputs

– Effectiveness• “Doing the right things”

– Attaining organizational goals

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Management Skills and Management Function Matrix

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Management Skills at various levels

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What Roles do Managers Play ?• Management Roles Approach

– Interpersonal roles• Figurehead, leader, liaison

– Informational roles• Monitor, disseminator, spokesperson

– Decisional roles• Disturbance handler, resource allocator, negotiator

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Mintzberg’s 10 Managerial Roles • INTERPERSONAL • Figurehead Performs ceremonial and symbolic duties such as greeting visitors,

signing legal documents• Leader Direct and motivate subordinates, training, counseling, and

communicating with subordinates• Liaison Maintain information links both inside and outside organizaion; use

mail, phone calls, meetings • INFORMATIONAL • Monitor Seek and receive information, scan periodicals and reports, maintain

personal contacts • Disseminator Forward information to other organization members; send

memos and reports, make phone calls • Spokesperson Transmit information to outsiders through speeches, reports,

memos; represent departmental interests20

Mintzberg’s 10 Managerial Roles • DECISIONAL • Entrepreneur Initiate improvement projects, identify new ideas,

delegate idea responsibility to others • Disturbance Handler Take corrective action during disputes or

crises; resolve conflicts among subordinates; adapt to environmental crises

• Resource Allocator Decide who gets resources, scheduling, budgeting, setting priorities

• Negotiator Represent department during negotiation of union contracts, sales, purchases, budgets

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How The Manager’s Job Is Changing

• The Increasing Importance of Customers

– Customers: the reason that organizations exist• Managing customer relationships is the responsibility of all managers

and employees.• Consistent high quality customer service is essential for survival.

• Innovation

– Doing things differently, exploring new territory, and taking risks• Managers should encourage employees to be aware of and act on

opportunities for innovation.22

Changes Impacting the Manager’s Job

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Amity School of Business

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Forces Influencing Organizations and Management

• Social Forces - values, needs, and standards of behavior

• Political Forces - influence of political and legal institutions on people & organizations

• Economic Forces - forces that affect the availability, production, & distribution of a society’s resources among competing users

History of Management • The recorded use of organised management dates

back to 5000 B.C. when the agricultural revolution had taken place. These agricultural civilizations existed in India, China and Egypt

• As early as 4000 B.C., the Egyptians were aware of the importance of planning, organising and controlling.

• In ancient India Kautilya wrote his Arthashastra in about 321 B.C. the major theme of which was political, social and economic management of the State. The study of administration of the cities of Mohenjodaro and Harappa of the ancient Aryans in 2000 B. C., Buddha's order and the Sangha in 530 B. C., provide evidence about the use of the principles of management.

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Evolution of Management

THE CLASSICAL THEORY OF MANAGEMENTa) Scientific Management Theory b) Organization Theory - Bureaucracy Theory and Administrative Management. THE NEO-CLASSICAL THEORY OF MANAGEMENT: a) Human Relations Approach b) Behavioral Sciences Approach. THE MODERN THEORY OF MANAGEMENT: a) Quantitative Approach to Management (Operations Research)b) Systems Approach to Management and c) Contingency Approach to Management. •

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Classical Perspective: 3000 B.C.

● Rational, scientific approach to management – make organizations efficient operating machines

● Scientific Management● Bureaucratic Organizations● Administrative Principles

Scientific Management• Scientific management theory arose in part from the need to

increase productivity.• In the united states especially, skilled labor was in short

supply at the beginning of the twentieth century.• The only way to expand the productivity was to raise the

efficiency of workers.Therefore ,Fredick W.Taylor,Henry Gantt,and Frank and Lillian Gilbreth devised the body of principles known as Scientific management theory

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Scientific Management

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Fredrick Winslow Taylor – ( 1856-1915 )The “father” of scientific management. Published Principles of Scientific Management (1911) .

The theory of scientific management

•Using scientific methods to define the “one best way” for a job to be done.

•Putting the right person on the job with the correct tools and equipment.

•Having a standardized method of doing the job.

•Providing an economic incentive to the worker.

Scientific Management 4 principles

1. Develop a science for each element of an individual’s work, which will replace the old rule-of-thumb method.

2. Scientifically select and then train, teach, and develop the worker.

3. Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed.

4. Divide work and responsibility almost equally between

management and workers.

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Scientific Management

• Employers to pay more productive workers higher rate than others. Using a “scientifically correct “rate that would benefit both the company and workers.

• Thus the workers were urged to surpass their previous performance standards to earn more pay

• Taylor called his plane the differential rate system.

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Henry L.Gannt (1861-1919) Abandoning the differential rate system as having too little motivational impact

Gannt came up with new idea. He proposed that every worker who finished days assigned work load would win

50 percent bonus. The supervisor would earn a bonus for each workers who reached the daily

standard , plus a extra bonus if all the workers reached it. This Gantt reasoned would spur super wiser to train their workers to do a better

job. Every workers progress was rated publicly and recorded on individual bar charts

black on days the worker made the standard and Red when he or she fell below it. Gantt originated a Charting system for production.

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Frank B. and Lillian M.Gilbreth(1868-1924) and (1878-1972)

• Frank and Lillian Gilbreth– Focused on increasing worker productivity through the

reduction of wasted motion– Developed the microchronometer to time worker motions and

optimize performance

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Scientific ManagementContributions• Demonstrated the importance of compensation for

performance.• Initiated the careful study of tasks and jobs.• Demonstrated the importance of personnel and their

training.

Criticisms• Did not appreciate social context of work and higher needs

of workers.• Did not acknowledge variance among individuals.• Tended to regard workers as uninformed and ignored their

ideas

Limitations of Scientific Management Theory

• Although Taylor's method led to dramatic increase in productivity and higher pay in number of instance , Workers and unions began to oppose his approach because they feared that working harder or faster would exhaust whatever work was available Causing layoffs.

• Taylors system clearly meant that time was of the essence .

• – His critics objected to the speed up condition that placed undue pressure on employees to perform at faster and faster levels.

• – The emphasis on productivity and by extension profitability led some managers to exploit both the workers and customers.

• – As a result more workers joined unions and thus reinforced a pattern of suspicious and mistrust that shaded labor relations for decades.

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Home assignment

• Activity based on Scientific Management Theory • Based on your experiences at school, describe

some ways in which the principles of scientific management and bureaucracy are still used in education sector. Do you believe these characteristics will ever cease to be a part of institution life? Discuss.

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