management by arun verma
TRANSCRIPT
Management
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Who Are Managers?Manager
Someone who works with and through other people by coordinating their work activities in order to accomplish organizational goals
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Types of ManagersFirst-line Managers
Are at the lowest level of management and manage the work of nonmanagerial employees
Middle ManagersManage the work of first-line managers
Top ManagersAre responsible for making organization-wide
decisions and establishing plans and goals that affect the entire organization
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Exhibit 1.1 Managerial Levels
TopManagers
Middle Managers
First-Line Managers
Nonmanagerial Employees
TopManagers
Middle Managers
First-Line Managers
Nonmanagerial Employees
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Where Managers Work
Organization
A consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals.
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Definition of Management:
Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims
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Definitions of Effectiveness and EfficiencyProductivity implies effectiveness and
efficiency in individual and organizational performance
Effectiveness is the achievement of objectives
Efficiency is the achievement of the ends with the least amount of resources (men, money, material, machinery, time etc.)
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Managerial Concerns
Efficiency“Doing things right”
Getting the most output for the least input
Effectiveness“Doing the right things”
Attaining organizational goals
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What Managers Do
Managerial Activities
•Make decisions
• Allocate resources
• Direct activities of others to attain goals
Managerial Activities
•Make decisions
• Allocate resources
• Direct activities of others to attain goals
Managers (or administrators)
Individuals who achieve goals through other people.
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What Do Managers Do?
Functional ApproachPlanningOrganizingLeadingControlling
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Management Functions (cont’d)
Planning
A process that includes defining goals, establishing strategy, and developing plans to coordinate activities.
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Management Functions (cont’d)
Organizing
Determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made.
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Management Functions (cont’d)
Leading
A function that includes motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts.
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Management Functions (cont’d)
Controlling
Monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations.
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Management Functions
Planning
Defining goals,establishingstrategy, anddevelopingsubplans tocoordinateactivities
Lead toOrganizing
Determiningwhat needsto be done,how it willbe done, andwho is to do it
Leading
Directing andmotivating allinvolved partiesand resolvingconflicts
Controlling
Monitoringactivitiesto ensurethat they areaccomplishedas planned
Achieving theorganization ’s
statedpurpose
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What Do Managers Do? (cont’dMintzberg’s Management Roles Approach
Interpersonal rolesFigurehead, leader, liaison
Informational rolesMonitor, disseminator, spokesperson
Decisional rolesEntrepreneur, disturbance handler, resource
allocator, negotiator
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Mintzberg’s Managerial Roles
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Mintzberg’s Managerial Roles (cont’d)
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Mintzberg’s Managerial Roles (cont’d)
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What Do Managers Do? (cont’d)Skills Approach
Technical skillsHuman skillsConceptual skills
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Management SkillsTechnical skillsThe ability to apply specialized knowledge or expertise.
Human skillsThe ability to work with, understand, and motivate other people, both individually and in groups.
Conceptual SkillsThe mental ability to analyze and diagnose complex situations.
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Exhibit 1.4 Skills Needed at Different Management Levels
TopManagers
MiddleManagers
Lower-levelManagers
Importance
ConceptualSkills
HumanSkills
TechnicalSkills
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What Is An Organization?An Organization Defined
A deliberate arrangement of people to accomplish some specific purpose
Common Characteristics of OrganizationsHave a distinct purpose (goal)Are composed of peopleHave a deliberate structure
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Exhibit 1.6 The Changing OrganizationTraditional Stable Inflexible Job-focused Work is defined by job positions Individual-oriented Permanent jobs Command-oriented Managers always make decisions Rule-oriented Relatively homogeneous workforce Workdays defined as 9 to 5 Hierarchial relationships Work at organizational facility during
specific hours
New Organization Dynamic Flexible Skills-focused Work is defined in terms of tasks to
be done Team-oriented Temporary jobs Involvement-oriented Employees participate in decision
making Customer-oriented Diverse workforce Workdays have no time boundaries Lateral and networked relationships Work anywhere, anytime
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Management: DefinitionAcc to Harold Koontz: Management is
the art of getting things done through & with an formally organized group
Acc to Henry Fayol: To manage is to forecast & plan, to organize, to co-ordinate and to control
PODSCCRB:- Planning, Organizing, Directing,
Staffing, Controlling, Co-ordinating, Reporting & Budgeting
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Features of ManagementArt as well as ScienceManagement is an activityManagement is a continuous processManagement achieving pre-determined
objectivesOrganized activitiesManagement as a system Management is a discipline
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Features of ManagementManagement is a distinct entityManagement aims at maximising profitManagement is a purposeful activityManagement is a professionUniversal applicationManagement is getting things doneManagement is needed at all levels
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Importance of ManagementManagement meet the challenge of changeAccomplishment of group goalsEffective utilization of resourcesEffective functioning of businessResource DevelopmentSound organization StructureManagement directs the organizationIntegrates various interestsStability
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Importance of ManagementInnovationCo-ordination and team-spiritTackling problemsA tool for Personality Development
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ORGANISATION THEORIESThe theories are crafted in view of the basic
production beingReplaced my mass production, to organize
technology- information-manpower interface for proper
coordination of Activities of large number of people and increased
efficiency.Major theories are: 1. Classical Theory2. Neo-Classical Theory3. Modern Theory
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a) Scientific Managementb) Administrative Managementc) Theory of Bureaucracy
1. CLASSIC THEORIES
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a) Scientific management Introduced by F.W. Taylor in USA in the
beginning of 20th century.He is called as the Father of Scientific
ManagementFocus on improving the efficiency of the workers.
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Principles of Scientific Management
Task fragmentationScientific Analysis of the jobs being done to
select the best method of doing the taskStandardization of tools and methods for
productionScientific selection through specializationFinancial Incentives and rewardsTrainingDemarcation of responsibilities between
management and workers
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Limitations of scientific mangement
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Mechanical approach considering worker an adjunct to machines
Narrow specialization due to fragmentation of jobsRoutinization of jobs leading to boredom, short job
cycles, lack of autonomy hence worker distressMore of a “SYSTEMATIC” approach than being
scientific“Command and control” system “conception and planning” being separated from
“execution”Wages not being increased in proportion of
productionRequired to perform consistently at high level of
efficiency
B. Administrative ManagementHenry Fayol (1841-1925), a french
industrialistGiven :
Elements of Management- Planning, Organizing, Commanding, Co-ordination & Control
Qualities of Manager: Physical, Mental, Moral, General Education, Special Knowledge & Experience
Categories of operations: technical, commercial, financial, security, accounting, management
Principles of Management
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Principles of Management1. Division of labour2. Authority3. Discipline4. Unity of command5. Unity of direction6. Subordination of individual interest to
common good7. Remuneration8. Centralisation9. The hierarchy10. Order11. Equity12. Stability on staff13. Initiative14. Esprit de corps
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Principles by Luther gullick and Lyndall Urwick; an extension to Fayol
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Fitting people to the organization structureRecognizing one top executive as the source of
authorityAdhering to the unity of commandUsing special and general staffDepartmentalizing by purpose, process,
persons and placeConsidering appropriate spans of controlDelegating and utilising the exception principleMarking responsibility commensurate with
authority
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Limitations of Admin. Mgmt principles
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Behavioral, cultural and social components ignored
No emphasis on variations in human response towards management processes like planning, directing and controlling
Rational approach towards human factor
C. BureaucracyGiven by Max Weber, a German sociologist.Known as father of BureaucracyProposed that bureaucracy provides most
efficient framework for designing business, government, military and other complex organisations
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Principles Of Bureaucracy
Division of labor based on functional specialization, individual specialization, task allocation according to competence
Well defined hierarchy of authorityRational legal authority (rank/position)Traditional authority (monarch)Charismatic authority (mass appeal/ special powers)
A system of procedures to deal with work situationsSystem of record keepingA system of promotion and selection for employment
based on technical competenceRational decision making based on fairness, justice and
equityAdherence to norms, code of conduct ; consistency of
actionsRules covering rights and duties of positional incumbents
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Limitations of bureaucracy
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1. Goal displacement (procedure vs. result)2. Inadequate communication3. Lack of effective coordination4. Lack of system for conflict management5. Red tapism (rules not applied uniformly)6. Outdated notion of authority7. Lack of opportunity for personal growth8. Lack of innovativeness9. Inadequate appreciation of organizational
dynamics10. Change resistant11. Suboptimal utilization of manpower
2. Neo-Classical Theory
The Human Relations approachBehavioral science contributions
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2. NEO-CLASSIC THEORIES
a. The Human Relations MovementIllumination Experiments (hawthorne
experiments) by elton mayoResulted in cnclusion that change in social
conditions , motivation and supervision and NOT the working conditions were factors responsible for increase in production
Role of informal work groupProduction determined more by social factors
than aptitute or physiological factors
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Principles of human relations school
“social capacity” rather than “physical capacity”Psychological needs are prime moversIndividual behavior is affected by feelingsOrgnisation to be viewed both as techno economic
as well as social systemCritical role of informal work groupsWorkers act/react as members of groups and not
mere individualsInformal leadership more emergent than formal
leadershipNecessacity of 2 way communicationIntegration between goals of organisation and
individualsManagers developing social and technical skills45
B. Behavioral science contributionStress on developing organisation as
COOPERATIVE SYSTEMGroup dynamics playing an important roleMore stress on interpersonal relationships“personality” and “behavior” : external
situation factors and psychic inner causes
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Assumptions about people: McGregor’s theoryTheory XAverage human being is
lazy and deslikes workPeople like to be
directed and lack ambition
People have little capacity for creativity
Most people are indifferent to organisation goals
Motivation is always relatedto physiological needs (food, shelter etc)
Theory YWork is natual as play if
conditions are favourableSelf direction and control
to serve the objectivesCommitment to
objectives and satisfaction of egoes
Proper conditions are necessasary, shortcomings are not inherited
Potential partially utilised under present ind. system47
Motivation and Job satisfactionMaslow’s theory: identification of 5 basic
needs:1.Physiological needs: hunger, thirst etc.2.Safety needs: protection against danger,
threat, deprivation etc3.Love needs: belonging to groups,
friendship, affection4.Esteem needs: self respect, respect for
others, ego and status needs5.Self fullfillment and self actualisation: self
development, creativity, satisfaction, realising owns potential48
Immaturity maturity continuum (chris rgyris)
IMMATURITY CHARACTERISTICS
PassivityDependenceFew ways of
behavingShallow interestsShort time
perspectivesSubordinate
positionLack of self
awareness
MATURITY CHARACTERISTICS
ActivityResponsible
independenceDiverse behaviorDeep interestsLong time
perspectivesSuper ordinate
positionsSelf awareness and
control49
Other features of neo classical theoryNeed of a DECENTRALISED STRUCTUREDEMOCRATIZATION and PARTICIPATION
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Modern TheoryA. Quantitative Approach (Mgmt. science
theory)B. Systems ApproachC. Contingency Approach
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3. MODERN THEORIES
A. QUANTITATIVE APPROACHEmerged after world war 2Operation research: mathematical model building and
other applications of quantitative techniques to managerial problems
Operations management: quantitative technique to solve manufacturing problems.e.g. forecasting, linear and non linear programming, scheduling, simulation, break even analysis, computer aided design (CAD), Computer automated manufacturing (CAM), total quality management (TQM)
Information technology: internet, intranet, decision support systems (DSS)
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B. SYSTEMS APPROACH
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SYSTEMS approach (cont..)An extension of the humanistic perspective
that describes organisations as open systems that are characterised by entropy, synergy and subsystem interdependance.
Open system: which interacts with the environment to survive
Closed system: does not interacts with the external environment
Entropy: tendency of a system to run down and die
Synergy: concept that the whole is greater than the sum of its parts
Subsystems: parts of the system that depend upon one another for their functioning
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Organizations as an open systemSystem and sub systemHolism : whole is greater than arithmetic mean of its
partsImportation of energyConversion process (JIT, kaizen, (continuous
improvement) TQM)Export of energy (value added products, services)Cyclic nature of activitiesNegative entropy: resistance to perishSelf regulatory mechanismsInternal elaborations (strategizing, elaborating activities)Integrate: unity of actions and coordinationEquifinality (reaching same final state from different
initial conditions by variety of ways)
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C. Contingency theoryAn extension of the humanistic perspective in which
the succesful resolution of organizational problems is thought to depend upon manager’s identification of key variations in the situation at hand.
Universalistic view: there is one best way (either be leadership style,
bureaucratic structure)The same concept is applicable to every another organization
Case view: Every situation is uniqueDetermining new methods/solution for every new situation or
problem
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Case view
Universalistic view
CONTINGENCY VIEWOrganization phenomenon exist in
logical patterns; management devise and apply similar responses
to common types of problems
QUERIES ???
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