basic concept of management

11UNITBasic Basic

Concept of Concept of ManagemenManagemen

tt Principles and Practices

of

Session No :1

© Copyright McGraw-Hill. All rights reserved. 2–2

OBJECTIVE OF THE UNITOBJECTIVE OF THE UNITOBJECTIVE OF THE UNITOBJECTIVE OF THE UNIT

To know the basic concept of the To know the basic concept of the management..management..

To know what is the importance of the To know what is the importance of the management.management.

To know which are the basic functions of the To know which are the basic functions of the management management

To know the thoughts and ideas of different To know the thoughts and ideas of different management thinkers and their contribution management thinkers and their contribution to the modern business world.to the modern business world.

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IMPORTANCE OF MANGEMENTIMPORTANCE OF MANGEMENTIMPORTANCE OF MANGEMENTIMPORTANCE OF MANGEMENT

•Management is a critical element in the Management is a critical element in the economic growth of a countryeconomic growth of a country

Four Factor of ProductionFour Factor of Production

Men Men

MaterialMaterial

MoneyMoney

MachineMachine

•Management is dynamic ,life-giving Management is dynamic ,life-giving element in every organizationelement in every organization

It is the element that coordinates the It is the element that coordinates the current activities and plans for the futurecurrent activities and plans for the future

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© Copyright McGraw-Hill. All rights reserved. 2–4Figure 2.1Source:

“Management is the process of designing and maintaining the environment in which individual work together in group, and efficiently and effectively accomplish the selected aim”

-Basic definition

“Art of getting things done through people”

- Mary Parker Follett.

“ Management is a process of Planning, Organizing, actuating (directing) and controlling, performed to determine and accomplish the objectives by the use of people and resources” -George R Terry.

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DEFINITION OF MANAGEMNTDEFINITION OF MANAGEMNTDEFINITION OF MANAGEMNTDEFINITION OF MANAGEMNT


Management Thinkers/PhilosophersManagement Thinkers/Philosophers

•Newman and Summer:Newman and Summer: Planning, organizing, Planning, organizing, leading and controllingleading and controlling

•Henry Fayol:Henry Fayol: Planning, organizing, Planning, organizing, commanding, coordinating and controllingcommanding, coordinating and controlling

•Luther GilickLuther Gilick: POSDCORB: POSDCORB

•Koontz and O'Donnell:Koontz and O'Donnell: Planning, organizing, Planning, organizing, staffing, directing and controllingstaffing, directing and controlling

•Earnest Dale:Earnest Dale: Innovation and Representation Innovation and Representation

MANAGEMENT FUNCTIONS OR THE MANAGEMENT FUNCTIONS OR THE PROCESS OF MANAGEMENTPROCESS OF MANAGEMENT


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•Planning:Planning: determine what should be done? determine what should be done?

•It is the determination of what is to be It is the determination of what is to be done ,how and where is to be done and how done ,how and where is to be done and how results are to be evaluated?results are to be evaluated?

•Organizing:Organizing: organizing the FOP organizing the FOP

All the resources may be divided into All the resources may be divided into HUMAN organisation and MATERIAL HUMAN organisation and MATERIAL organisation.organisation.

Staffing is the important function which Staffing is the important function which involves building the human organizationinvolves building the human organization

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•Directing :Directing : actuating the people to accomplish the actuating the people to accomplish the task.task.

Sub-functions: Communication ,Leadership and Sub-functions: Communication ,Leadership and MotivationMotivation

•Controlling: Controlling: to ensure that everything occurs in to ensure that everything occurs in conformity with the plans adopted, instructions conformity with the plans adopted, instructions issued and principles establishedissued and principles established

•Innovation:Innovation: Innovation is the key to success in the Innovation is the key to success in the long-run.long-run.

•Representation:Representation: represents the organisation to the represents the organisation to the outside group who are having stakes in the outside group who are having stakes in the organizationorganization



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LEVELS OF MANAGEMENTLEVELS OF MANAGEMENTLEVELS OF MANAGEMENTLEVELS OF MANAGEMENT

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TOP MANAGEMENT

MIDDLE MANAGEMENT

LOWER MANAGEMENT


MANAGERIAL SKILLSMANAGERIAL SKILLSMANAGERIAL SKILLSMANAGERIAL SKILLS•Skill is the ability to translate the Skill is the ability to translate the knowledge into action.knowledge into action.1. 1. CONCEPTUAL SKILL: deals with the ideaCONCEPTUAL SKILL: deals with the idea

This skill seems to have more importance as a This skill seems to have more importance as a manager moves up to the higher position of manager moves up to the higher position of responsibility.responsibility.

2.2.TECHNICAL SKILL: deals with things.TECHNICAL SKILL: deals with things.

It refers to a person’s knowledge and proficiency in It refers to a person’s knowledge and proficiency in any type of process or technique.any type of process or technique.

This skill seems to be more important at the lower This skill seems to be more important at the lower level of management.level of management.

3.3.HUMAN SKILL: deals with the human.HUMAN SKILL: deals with the human.

It is ability to interact with the people at all levelsIt is ability to interact with the people at all levels9


MANAGEMNET –A SCIENCE OR AN MANAGEMNET –A SCIENCE OR AN ARTART

MANAGEMNET –A SCIENCE OR AN MANAGEMNET –A SCIENCE OR AN ARTART

• Management-as a ScienceManagement-as a Science

1.Method of inquiry are systematic and empirical;1.Method of inquiry are systematic and empirical;

2.Information can be ordered and analyzed; and2.Information can be ordered and analyzed; and

3.Results are cumulative and communicable3.Results are cumulative and communicableThe word “Science “ is used to denotes two types of The word “Science “ is used to denotes two types of

systematic knowledge.systematic knowledge.

A)A) Natural and ExactNatural and Exact

B)B) Behavioral and InexactBehavioral and Inexact

Management is Behavioral science rather Management is Behavioral science rather than the natural science because results than the natural science because results are not accurate and dependable as that are not accurate and dependable as that of natural science.of natural science.

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1700-1850- Industrial Revolution.

Concept of division of labor by Adam Smith.

Second half of the 19th Century

Management as a separate field.

Separation of the business managementfrom their ownership

EARLY-CLASSICAL APPROCHEARLY-CLASSICAL APPROCHEARLY-CLASSICAL APPROCHEARLY-CLASSICAL APPROCH

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Scientific ManagementScientific ManagementScientific ManagementScientific Management

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• Fredrick Winslow Taylor-Fredrick Winslow Taylor- father of Scientific father of Scientific Management.Management.

1.1. Time and motion studyTime and motion study

2.2. Differential payment systemDifferential payment system

3.3. Drastic reorganization of Supervision. Drastic reorganization of Supervision. ( functional foremanship and separation of planning ( functional foremanship and separation of planning and doing)and doing)

4.4. Scientific recruitment and TrainingScientific recruitment and Training

5.5. Cooperation between mgt. and workers ( Mental Cooperation between mgt. and workers ( Mental Revolution) Revolution)


Henry Fayol- Father of Administrative Management14 principals of Administrative Management-

Division of Work

Authority and Responsibility

Discipline

Unity of Command

Administrative ManagementAdministrative ManagementAdministrative ManagementAdministrative Management

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Principles of Administrative Principles of Administrative ManagementManagement


• Subordination of Individual interest into generalSubordination of Individual interest into general

interest.interest.

• RemunerationRemuneration

• CentralizationCentralization

• Scalar ChainScalar Chain

• Order ( right place for everything)Order ( right place for everything)

• EquityEquity

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..• Stability of Tenure of PersonnelStability of Tenure of Personnel

• InitiativeInitiative

• Unity of DirectionUnity of Direction

• Espirit de Corps ( Team spirit)Espirit de Corps ( Team spirit)

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ELTON MAYO:HAWTHORNE EXPERIMENT


NEO-CLASSICAL APPROCHNEO-CLASSICAL APPROCHNEO-CLASSICAL APPROCHNEO-CLASSICAL APPROCH

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ELTON MAYO 1880-1949


Human Relations MovementHuman Relations MovementHuman Relations MovementHuman Relations Movement• Elton Mayo: Hawthorne Experiment (1927-1932)Elton Mayo: Hawthorne Experiment (1927-1932) Cicero, Illinois (Chicogo,USA)Cicero, Illinois (Chicogo,USA)Illumination Experiments: Illumination Experiments: Effect of illumination on Effect of illumination on

productivity-productivity-Relay Assembly Test Room:Relay Assembly Test Room: to determine the effects of to determine the effects of

illumination on productivity, Consider other factors Like illumination on productivity, Consider other factors Like length of the working day, rest pauses, length of the working day, rest pauses, frequency ,duration and physical conditions. A group of six frequency ,duration and physical conditions. A group of six women worker. No change in the productivity. Importance women worker. No change in the productivity. Importance of formal groups.of formal groups.

Interviewing Programme:Interviewing Programme: interviewed 20,000 workers, interviewed 20,000 workers, questions were asked on supervision, working conditions, questions were asked on supervision, working conditions, living conditions.living conditions.

Study reveals the worker’s social relations had an Study reveals the worker’s social relations had an unmistakable influence on their attitude and behaviors.unmistakable influence on their attitude and behaviors.

Bank wiring Observation Room:Bank wiring Observation Room: to determine the effect of to determine the effect of informal group norms and formal economic incentives on informal group norms and formal economic incentives on productivity. productivity.

Human relation movement- People should understand Human relation movement- People should understand people.people.

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MARY PARKER FOLLETT (1868-1933)MARY PARKER FOLLETT (1868-1933)


BEHAVIORAL MANAGEMENT BEHAVIORAL MANAGEMENT THEORYTHEORY


BEHAVIORAL MANAGEMENT

Improved and mature version of human relations approach.

The study of how managers should behave The study of how managers should behave to motivate employees and encourage them to motivate employees and encourage them to perform at high levels and be committed to perform at high levels and be committed to the achievement of organizational goals.to the achievement of organizational goals.

Focuses on the way a manager should Focuses on the way a manager should personally manage to motivate employees.personally manage to motivate employees.

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MARY PARKER FOLLETT (1868-1933)MARY PARKER FOLLETT (1868-1933)An influential leader in early managerial An influential leader in early managerial theorytheory

Held a horizontal view of power and Held a horizontal view of power and authority in organizationsauthority in organizations

•Suggested workers help in analyzing their Suggested workers help in analyzing their jobs for improvementsjobs for improvements—t—the worker knows he worker knows the best way to improve the job.the best way to improve the job.

•If workers have relevant knowledge of the If workers have relevant knowledge of the task, then they should control the task.task, then they should control the task.

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DOUGLAS MCGREGORDOUGLAS MCGREGOR


Douglas McGregor’s Theory X and Theory YDouglas McGregor’s Theory X and Theory YDouglas McGregor’s Theory X and Theory YDouglas McGregor’s Theory X and Theory Y

Figure 2.3Source:

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Quantitative ApproachQuantitative ApproachQuantitative ApproachQuantitative Approach

•An approach to management that uses An approach to management that uses rigorous quantitative techniques to maximize rigorous quantitative techniques to maximize the use of organizational resource the use of organizational resource

•This approach is also called mgt.science This approach is also called mgt.science approach. To solve the complex problem after approach. To solve the complex problem after the second world war. This interdisciplinary the second world war. This interdisciplinary called Operation Research group.called Operation Research group.

•This approach analysis the problem. Changing This approach analysis the problem. Changing the values of variables.the values of variables.

•This approach focus on decision making by This approach focus on decision making by disciplined thinking to solve the mgt. disciplined thinking to solve the mgt. problem. problem.

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Systems ApproachSystems ApproachSystems ApproachSystems Approach

•Classical approach- task and structureClassical approach- task and structure

•Behavioral approach- PeopleBehavioral approach- People

•Quantitative approach- methetical Quantitative approach- methetical decision making.decision making.

•This approach provides manager to This approach provides manager to diagnose a problem and decide which diagnose a problem and decide which tool or combination which is best to do tool or combination which is best to do the job.the job.

•This system provides integrated This system provides integrated approach to solve management approach to solve management problems problems

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Thank YouThank You

basic concept of management

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