Introduction to Management

Sabita Mishrasabita_mishra@yahoo.com

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Introduction to Management

• One of the most important of all human activities is Managing. Managing has been essential to ensure the coordination of individual efforts ever since people began forming groups to accomplish aims they could not achieve as an individual

• Management is critical element in the economic growth of an organization where it brings together the 3Ms - Money, manpower and materials. A competent or an effective manager combines and coordinates these resources effectively leading towards the growth of the organization

• Management is the process of designing and maintaining environment in which individuals working together in groups efficiently accomplish selected goals

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Introduction to Management

• Management is essential in all organized efforts and is essential for any organization or enterprise (enterprise refers to businesses, government agencies, hospitals, universities and other organizations) and thus applies to small and large organizations from profit to non profit organizations to manufacturing to service industries

• As far as function of management is concerned many scholars and managers have found that as far as analysis of management is concerned, many scholars and manager have found that the analysis of management is facilitated by a useful and clear organization of knowledge where the concepts, principles, theory and techniques of management are grouped into these five sections namely planning, organizing, staffing, leading and controlling

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Introduction to Management

• Management applies to any kind of organization and applies to managers at all organizational levels

• Managing involves managers carrying out managerial functions of planning, organizing, executing, implementing, staffing, leading and controlling. In fact, the ability to design or provide solutions are one of the most important skill of the managers along with technical, human, conceptual and design skills

• The aim of all managers is the same. In business organizations, this surplus is profit. In non profit organizations, it maybe the satisfaction of needs. Universities also create a surplus through generation and dissemination of knowledge as well as providing services to the community or society.

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Introduction to Management

• In fact, as society has come to rely increasingly on group effort and as many organized groups have become large, the task of managers has been rising in importance

• Management is critical element in the economic growth of an organization where it brings together the 3Ms ; Money, manpower and materials. A competent or an effective manager combines and coordinates these resources effectively leading towards the growth of the organization

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Introduction to Management

• Managers must essentially establish an environment in which people can achieve common goals in a team with the realization of least amount of resources namely time, money, materials and personal dissatisfaction or in which they can achieve as much as possible with the available resources.

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Management – A Science Or An Art

• What makes a discipline a science?– Methods of inquiry are systematic or empirical– Information can be ordered and analyzed– Results are cumulative and communicable

• Systematic means being orderly and unbiased. The attempt to gain knowledge must be without taint of personal or other prejudgment

• Empirical is where the inquiry must be empirical and not merely an armchair speculation or a priori approach

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Management – A Science Or An Art

• The word science is used to denote two types of systematic knowledge : natural or exact and behavioral or inexact

• Management is not like exact or natural sciences such as physics, chemistry etc. where it is possible for us to study the effects of anyone of the many factors affecting a phenomenon individually by making the other factors inoperative for the time being.

• In management, we have to study man and multiplicity of factors affecting him not just the resources and the environment that is provided by the employers at he workplace comes into play but other variables like his personal life and variables involved in that area comes into play an affects the final output of the results and thereby the decision making process. At best we can get the rough idea between the two.

• In other words our findings are not going to be as accurate and dependable as hose of physical science an will only tell us about tendencies and probabilities only. Therefore, management is placed in the category of behavioral science

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Management – A Science Or An Art

• Thus managing as a practice is an art and the organized knowledge underlying the practice maybe referred to as a science

• In this context science and art are not mutually exclusive, they are complimentary. Essentially Management is behavioral science and an art which not only involves managing people and human relation skills, it also involves managing technology or ultimately managing technology. Human skills or people management is the medium for managing and delivering technology which dictates the existence of the humans and their management and the existence of the company. We can say we are essentially managing people but ultimately managing technology.

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Management – A Science Or An Art

• Scientific information is collected first as raw data and is finally ordered and analyzed with the help of statistical tools. It thus becomes communicable and intelligible and communication of results also permits repetition on of the study which when it is similar to the original provides confidence in those results

• Science is also cumulative in that what is discovered is added to that which has been found before. We essentially build upon the base that has been left by others.

• On the basis of definition of science it is presumed that management is also science which is not true.

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Management – A Science Or An Art

• Management is placed in the category of behavioral sciences since the findings are not accurate or dependable like physical sciences and only talks about tendencies and probabilities.

• Whereas under “science” one normally learns the “why” of a phenomenon, under art one learns “how” of it and art is thus concerned with the understanding of how a particular work can be accomplished, management in this sense is more of an art.

• It is the resources of money, material and manpower that have to be coordinated against several constraints to achieve given objectives in the most efficient manner

• The manager has to constantly analyze the existing situation, determine, the objectives, seek alternatives, implement, coordinate, control and evaluate information and make decisions.

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Management Philosophy through the Ages –Major Influencing Factors

• Replacing rules of thumb with science, organized knowledge (Detailed program management)

• Obtaining harmony in the group action rather than discord (Team work)

• Achieving cooperation of human beings rather than chaotic individualism

• Working for maximum output, rather than restricted output

• Developing all workers to the fullest extent possible for their own and the company’s highest prosperity.

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Management Philosophy through the Ages –Major Influencing Factors

1.• Environment – and times, through the ages,

social-political factors, global presence, economy etc.

2.• Technology - and industry or the type of

organization, business organization, charitable organization , political organizations, universities, etc.

3. • Workforce – Skilled or unskilled labor, women at the workforce, ethnic groups, different nationalities etc.

4.• Management - and the management makeup

which includes management’s goals, objectives, aspirations and most importantly its vision

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Management Philosophy through the Ages –Major Influencing Factors

• Taylor is generally acknowledged as the Father of scientific management and is one of the early thinkers credited with greatest impact on the early development of management. His famous work entitled “ The principles of Scientific Management” was published in 1911.

• The fundamental principles that Taylor saw underlying the scientific approach to management are as follows:

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Management Philosophy through the Ages –Major Influencing Factors

• Scientific management, also called Taylorism,[1] was a theory of management that analyzed and synthesized workflows. Its main objective was improving economic efficiency, especially labor productivity. It was one of the earliest attempts to apply science to the engineering of processes and to management. Its development began with Frederick Winslow Taylor in the 1880s and 1890s within the manufacturing industries. Its peak of influence came in the 1910s; by the 1920s, it was still influential but had begun an era of competition and syncretism with opposing or complementary ideas. Although scientific management as a distinct theory or school of thought was obsolete by the 1930s, most of its themes are still important parts of industrial engineering and management today. These include analysis; synthesis; logic; rationality; empiricism; work ethic; efficiency and elimination of waste; standardization of best practices; disdain for tradition preserved merely for its own sake or merely to protect the social status of particular workers with particular skill sets; the transformation of craft production into mass production; and knowledge transfer between workers and from workers into tools, processes, and documentation.

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Management Philosophy through the Ages –Major Influencing Factors

• Scientific management is a variation on the theme of economic efficiency; it is a late 19th and early 20th century instance of the larger recurring theme in human life of increasing efficiency, decreasing waste, and using empirical methods to decide what matters, rather than uncritically accepting pre-existing ideas of what matters. Thus it is a chapter in a larger narrative that includes many ideas and fields, from the folk wisdom of thrift to a profusion of applied-science successors, including time and motion study, the Efficiency Movement (which was the broader cultural echo of scientific management's impact on business managers specifically), Fordism, operations management, operations research, industrial engineering, manufacturing engineering, logistics, business process management, business process reengineering, lean manufacturing, and Six Sigma. There is a fluid continuum linking scientific management by that name with the later fields, and there is often no mutual exclusiveness when discussing the details of any one of these topics.

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Management Philosophy through the Ages –Major Influencing Factors

• Perhaps the real father of modern management theory is French industrialist Henri Fayol who recognized a wide spread need for principles and management teaching. Consequently, he recognized fourteen such principles noting that they are flexible not absolute and must be used regardless of changing conditions.

• According to Gilberts (Frank and Lillian Gilberth) who studied and conducted motion and fatigue study, it raised worker’s morale not only because of their obvious physical benefits but also because it demonstrated management’s concern for the workers and when you care it does show and it does translate into better performance and results both from the employers as well as the employees.

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Fayol’s 14 Principles of Management

1. • Division of work

2. • Authority and responsibility

3. • Discipline

4. • Unity of command

5. • Unity of direction

6. • Subordination of individual interest to general interest

7. • Remuneration

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Management Philosophy through the Ages

• 8. • Centralization

9. • Scalar chain

10. • Order

11. • Equity

12. • Stability of tenure of personnel

13. • Initiative

14. • Espirit de corps

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Contributions of Scientific Management

1.

• Taylor’s work made us aware that the tools and physical movements involved in a task can be made more efficient and rational.

2.• The stress which the scientific management placed on scientific selection of

workers has made us recognize that without ability and training a person cannot be expected to do his job properly.

3.

• The importance that scientific management gave to work design encouraged managers to seek that “one best way” of doing a job.

4.

• Thus it not only developed a rational approach to solving organization problems but also contributed a great deal to the professionalization of management.

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Limitations of Scientific Management

1.

• No man is entirely an “economic man” and has other needs that dictates and motivates his behavior namely security, social or egoistic need.

2.• Taylor’s time and motion study is not accepted as completely scientific. Since

there is no such thing as one best way of doing things because no two individuals can be expected to work in the same rhythm with the same attention and learning speed

3.• Separation of planning and doing resulted in reduced need for skill and monotony

of work along with increased overhead cost sand confusion as a result of taking orders from 7-8 bosses

4.

• Advances in methods and better tools and machines eliminated some workers, who found it difficult to get other jobs. This caused resentment among them.

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Contributions of Administrative Management

1.• There is a clear line of authority from the top management down to the lowest

employee2.

• The authority and responsibility of each employee is clearly communicated and in writing

3.

• Each individual should perform one function only

4.

• The span of control of manager never exceeds six

4.

• Authority is delegated but not responsibility

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Limitations of administrative management

1.• It leads to the formation of small work groups with norms and goals often at odds

with those of management where the individual does not care to know how his job fits into the entire picture.

2.

• It results in the dissatisfaction of the workers because it does not provide them the opportunity to use all their abilities

3.• It results in an increase in the overhead cost because more the specialization

develops at one level, the greater becomes the need for coordination at very high level

4.• For many of Fayol’s principles one can find an equally plausible and acceptable

contradictory principle and there is nothing in Fayol’s writings to indicate which is the proper one to apply.

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Limitations of Administrative Management (cont’d)

1.

• A business organization is not merely a techno economic system but is also a social system. Hence it is as important for it to provide social satisfaction to the workers as to produce goods.

2.

• There is no correlation between improved working conditions and high production.

3.

• A worker’s production norm is set and enforced by his group and not by the time and month in study done by any industrial engineer. Those who deviate from the group norm are penalized by their co workers

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Limitations of Administrative Management (cont’d)

1.

• A worker does not work for money only. Non financial rewards (such as the affection and respect of his co-workers) also significantly affect his behavior and largely limit the effect of economic incentive plan.

2.

• Employee-centered democratic and participative style of supervisory leadership is more effective than task centered leadership.

3.

• The informal group and not the individual is the dominant unit of analysis in organizations.

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Important features of Bureaucratic Administration

1. • There is insistence on following standard rules

2. • There is systematic division of work

3. • Principle of hierarchy is followed

4. • There is necessary for the individual to have knowledge of and training in the application of rules

5. • Administrative acts, decisions and rules are recorded in writing

6. • There is rational personnel administration

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Limitations of Bureaucratic Administration

1. • Over conformity to rules

2. • Buck passing

3. • Categorization of queries

4. • Displacement of goals

5. • No real right to appeal

6. • Neglect of informal groups

7. • Rigid structure

8. • Inability to satisfy the needs of mature individuals

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Contributions and Limitations of Bureaucracy

• Bureaucracy can be viewed as the logical extension of management when it becomes impossible for one person to fulfill all management functions. The concept has enabled most modern large scale organizations which require functionally specialized staff to train and control the people with heterogeneous backgrounds and to delegate specific responsibilities and functions to them

• Bureaucracy has come under a lot of criticism. Important dysfunctional consequences of bureaucracy are as follows:

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Limitations of Neoclassical Approaches

1.• It is a swing in the opposite direction and is as much incomplete as the scientific

management and administrative management approaches. Taylor and Fayol ignored the human variables , the human relations writers critically ignored other variables.

2.• The implicit belief of this approach that an organization can be turned into one

big happy family where it is always possible to find a solution which satisfies everybody is not correct.

3.• It overemphasizes the importance of symbolic rewards and underplays the role of

material rewards hence they generally fail to achieve their objective of higher production.

4.• This approach provides an unrealistic picture about informal groups by

describing them as a major source of satisfaction for industrial workers. They only make the worker’s day pleasant and not his task which continues to be repetitive, monotonous and uncreative.

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Limitations of Neoclassical Approaches

1.• This approach is in fact production oriented and not employee oriented as it

claims to be. Many of its techniques trick workers into a false sense of happiness but there is no improvement in their well being.

2.• The leisurely process of decision making of this approach cannot work during an

emergency. When decisions are to be made quickly, when secrecy is important, work is reduced to a routine or when subordinates do not particularly care to be consulted, this approach may not work.

3.• This approach makes an unrealistic demand on the superior. It wants him to give

up his desire for power when it is one of the main reasons people become managers.

4.• This approach is based upon on a wrong assumption that satisfied workers are

more productive workers and attempts to increase output by improving working conditions and the human relations skills of a manger generally do not result in the dramatic changes in productivity.

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Quantitative Approach or the Modern Approach to Management

• Also referred to as Management science approach• It gained momentum during the second world war, where interdisciplinary group

of scientists who were engaged for this purpose known as operation research (OR) teams worked at analyzing operations and carrying out applied scientific research and this technique was later used in solving problems in the industry.

• Today OR works by calling in a mixed team of specialists from relevant disciplines who analyze the problem and propose a course of action to the management.

• The team constructs a mathematical model to simulate the problem and the model shows in symbolic terms all the relevant factors that bear on the problem and how they are interrelated.

• Each variables (like increasing the cost of raw materials) and analyzing the different equations of the model, the team determines the effect of each change and variables and presents the management with a rational base for making a decision.

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Quantitative Approach or the Modern Approach to Management

• The focus is on decision making through quantitative tools and techniques for making objectively rational decisions.

• This objective rationality implies an ability and willingness to follow a reasoned, unemotional, orderly and scientific approach in relating means with ends and in visualizing the totality of the decision environment .

• The keynote of this approach is precision and perfection which is achieved by expressing relationships and facts n quantitative terms and facilitates disciplined thinking while defining management problems and establishing relationships among the variables involved.

• This approach has been widely used in planning and control activities where problems can be precisely identified and defined in quantitative terms. But its use is still uncommon in such areas as organizing, staffing and leading the organization where the problems are more human than technical in nature.

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Factors governing the span of management

1. • Ability of the manager

2. • Ability of the employees

3. • Technical challenges and the technology itself

4. • Type of work

5.• Management organization model selected i.e.,

tall or flat organization6. • Levels of management

7.• Well defined authority, responsibility and lines

of accountability8.

• Information and control system and its sophistication

9. • Economic considerations

10. • Geographic location

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Factors governing span of management1.

• Determining and setting up objectives and goals for the organization

2. • Creating different departments

3.• Identifying which departments will be key

players4. • Grouping activities into departments

5.• Determining levels at which various types of

decisions are to be made6. • Determining span of management

7.• Determining and assigning lines and levels of

accountability8. • Setting up a coordination mechanism

9. • Addressing problems and contingencies

10. • Realization of objectives and goals

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Process Of Management or Management Functions

Planning

Organizing

DirectingControlling

Executing

Implementing

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Time Spent in Management Functions and Organizational Hierarchy

Visionary

Intellectualizing

Designing Solutions

Blueprinting

Executing

Implementing

Top Management

First Level Supervisors

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Time Spent in Administrative and Managerial Functions at Different Levels

Board of Directors

President

General Manager

Works Manager

Foreman

Administration

Management

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The Systems approach to the Management Process

• Input-Output Model

Transformation Process

OutputsInputs

External environment

Reenergizing the System

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Operational Approach to Management Process

A. Comparitive Social Systems B. Group BehaviourC. Interpersonal Behaviour D. 7-S FrameworkE. Total Quality Management F. Empirical and Managerial RolesG. Contigency Theory H. Management ScienceH. Rational Choice and Decisions I. ReengineeringJ. Applied Systems Theory K. Sociotechnical Systems

A

B

C

D

E

FG

H

I

J

KL

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Operational Approach to Management Process (cont’d)

SociologyPsychology

•Cooperative social systems•Group behavior•Interpersonal behavior•7-S Framework•Total Quality Management

Systems Theory

•Sociotechnical Systems•Applied systems theory•Reengineering

Decision Theory

•Rational choice and decisions•Contingency theory

Clinical Experience

•Distilled managing experience and analysis of managerial roles (empirical and managerial roles

Mathematics

•Management Science

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Process of Organizing for SMEs1.

• Setting up and coordination of objectives and goals

2. • Creating different departments

3.• Identifying which departments will be key

players4. • Grouping activities into departments

5.• Determining levels at which various types of

decisions are to be made6. • Determining span of management

7.• Determining and assigning lines and levels of

accountability8. • Setting up a coordination mechanism

9. • Addressing problems and contingencies

10. • Realization of objectives and goals

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Nature of Problems and Decision Making in an Organization

Unstructured

Structured

Non Programmed Decisions

Programmed Decisions

Highest Level

Lowest Level

Organizational Levels Nature of Decision Making

Nature Of Problems

Org Hierarchy

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Line and staff organization of a typical manufacturing company

ProcessInputs Output

Desired values of outputs

(standards)

SimplefeedbackFeed forward

InformationCorrective Action

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Management – Hierarchy of Organizational Plans

Objectives

Strategies

Single –Use Plans(Programmes and

Budgets)

Standing Plans (Policies, Procedures, Methods and Rules)

For Non-Repetitive Activities

For Repetitive Activities

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Hierarchy of Objectives and Organization Hierarchy

Sociao Economic Purpose

Mission

Overall Objectives of the

Organization

More

Specific Overall

Objectives (e.g. in key

result areas)

Division Objectives

Depart

ment

and Unit Objectives

Individual Objectives

(Performance

, Personal

Development Objectives

)

Board of Directors

Top Level Managers

Middle Level Managers

Lower Level Managers

Bottom Up Approach

Top Down Approach

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Planning And Its Categories

Nature of Planning

Forms of PlanningStrategic Planning

Tac-tical Planning

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Planning Process

Intellectual Process

Decision Making Process

Continuous

Process

Blueprinting

Process

All Pervasive Function

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Planning - Objective

Characteristic of Objectives

Multiple in Number

Tangible or Intangible

Have a Priority

Often Arranged in Hierarchy

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Principles of OrganizingObjectives

Specialization

Span of control

Exception

Scalar principle

Unity of command

Delegation

Responsibility

Authority

Efficiency

Simplicity

Flexibility

Balance

Unity of direction

Personal ability

Acceptability

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Close Relationship of Planning with Controlling

Planning

Controlling:comparingplans with

results

Corrective action

Implementation of

Plans

No undesirable deviations form plans

New Plans

Undesirable deviation

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Feedback Loop of Management Control

Desired Performance

Actual Performance

Measurement of Actual

Performance

Comparative Analysis

Implementat-ion of

Corrections

Program of Corrective

Action

Analysis of Causes of Deviations

Identification of Deviations

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Managerial Control – Steps in Control Process

1. • Establishing standards

2. • Measuring and comparing actual results against standards

3. • Taking corrective action

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To Uncover Deviations – Major events which pull an organization off target

1. • Change

2. • Complexity

3. • Mistakes

4. • Delegation

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Types of Control Methods – and its comparison

1. • Past oriented controls

2. • Future oriented controls

Input

Past oriented Control

Future Oriented Control

Process Output

FeedbackFeed forward

Information

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Human Factors and Motivation – Maslow’s Hierarchy of Needs

Need for self actualization

Esteem needs

Affiliation or acceptance needs

Security or safety needs

Psychological needs

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Objective Setting for Motivation

Implementation

Control and Appraisal

Setting Objectives

Planning Actions

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Path goal approach to leadership effectiveness

Characteristics of subordinates

Leader behavior

Functions of the leader

Work environment

Motivated subordinates

Effectiveorganization

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The Continuum of Decision Making Behavior

Economic Man Model

Administrative Man Model

Social Man Model

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Correlates of Job Satisfaction – Environmental Effects

• Occupational Level1.• Job content2.

• Interaction and the work group5.• 6.

• Considerate leadership3.• Pay and promotional opportunities4.

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Correlates of Job Satisfaction - Personal Variables

•Age1.•Educational level2.

•Recognition5.•Company prestige6.•Autonomy 7.•Fair evaluation of work8.•Working hours9.

10.

•Sex3.•Ease of commuting to work4.

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Roles Of A Manager

INTERPERSONAL ROLES

Interpersonal Roles :– Figurehead, Leader, Liaison

INFOR

MA

TIONAL ROLES

Informational Roles :– Monitor, Disseminator, Spokesman

DE

CISIONAL ROLES

Decisional Roles :– Entrepreneur,Disturbance Handler, Resource Allocator, Negotiator

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Essential Skill Sets of a Manager

BEING A VISIONARY LEADING CONCEPT

UALIZING

ORGANIZING

EXECUTING

DESIGNING SOL’N

PLANNING

BLUEPRINTING (NAVIGATIONA

L SKILLS)STAFFING

CONTROLLING

RESOLVING HUMAN & TECHNOLOGY

PROBLEMS

IMPLEMENTING

BEING A VISIONARY LEADING CONCEPT

UALIZING

ORGANIZING

IMPLEMENTING

DESIGNING SOL’N

PLANNING

BLUEPRINTING (NAVIGATIONA

L SKILLS)STAFFING

CONTROLLING

RESOLVING HUMAN & TECHNOLOGY

PROBLEMS

EXECUTING

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Managerial Skills and Organization Hierarchy

Visionary Skills

Leadership skills

Conceptualizing Skills

Planning, Strategizing

Blueprinting, Navigational Skills

Designing Solutions Skills

Execution Skills

Controlling

Skills to Resolve Human and Technology Related Problems

Organizing Skills

Staffing Skills

Implementation Skills

Top Management

Lower Level Management

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Leadership

1 •Power and Understanding People

2 •Inspiring Followers

3 •Style as a leader

4 •Relationship with the boss

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Charismatic Leadership

1. • Self Confident

2. • Having strong convictions

3. • Articulating a vision

4. • Are able to initiate changes

5. • Communicating high expectations

6. • Having a need to influence followers and supporting them

7. • Demonstrating enthusiasm and excitement

8. • Are in touch with reality

9. • External factors such as environmental situations affecting leadership

10. • Internal factors such as the characteristics of the followers

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Bases for Selecting from among Alternative Courses of Action – Decision Making Process

How to select among alternatives

Reliance on the Past Choice Made

Research and Analysis

Experimentation

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Flow Diagram of the Rational Decision Making Process

-Recognizing Problems-Deciding priorities

Diagnosing the

problems

Developing

alternating solutions

Measuring and

comparing consequen

ces

Decision implementation and follow up

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Difference between Authority and Power

AuthorityIt is the institutionalized right of a superior to command and compel his subordinates to perform a certain act

It rests in the chair or the position. With the change in position, the authority of the individual also changes.

It can be delegated to a subordinate by his superior.

Power

It is the ability of a person to influence other person to perform an act

It rests in the individual. Hence even when his position has changed his power remains with him

It cannot be delegated. A manager who is a very able decision-maker cannot hand over his ability to his assistant

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Difference between Authority and Power

AuthorityIt is mostly well-defined, conspicuous and finite.(i.e.,

commensurate with responsibility).

It is what exists in the eyes of the law. It is a de jure concept. It is mostly nominal. Many organizational

figure heads who are administrators in name only and are regarded as reigning without ruling.

It serves as a basis of formal organization.

Power

It is undefined, inconspicuous and infinite and its location cannot be known form the formal

organization chart.

It Is what exists as a fact. It is a de facto concept. Some people in organizations exercise significant power far beyond the accepted borders of their

authority. They are the real wire pullers behind the figureheads.

It serves as a basis of informal organization.

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Advantages of group decision

1. •Increased acceptance by those affected

2. •Easier coordination

3. •Easier communication

4. •More information processed

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Requisites for the success of Empowerment

1. • There should be strong ideological commitment of the head of the organization

2. • The web of relationships should be increasingly horizontal

3.• The scheme should be designed after

identifying employees real needs and with their participation

4.• There should be transparency, openness,

trust and greater error tolerance in administering the scheme

5. • There should be enhanced communication

6. • There should be variable rewards with some group component

7. • There should be 360 degree feedback to get a complete picture of employee’s performance

8. • There should be periodical evaluation of the scheme

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Conclusion

Thank You!!!!Thank You!!!!