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Presented by Dr.Daleep ParimooAssociate ProfessorSchool of Business Studies,Sharda University.

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IF RUNNING A BUSINESS were easy,everybody would be doing it.

Management Universality management is needed in all types and sizes of organizations, at all organizational levels, in all organizational work areas, and in all companies, no matter in what country they’re located.

All Organizational AreasManufacturing-MarketingHuman ResourcesAccounting InformationSystem….

All Sizes of OrganizationsSmall Large

Management is Needed in…..

All Types of Organizational Profit not-for Profit

All Organizational LevelsBottom Top

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MANAGEMENT IS ART OF GETTING THINGS DONE THROUGH PEOPLE

IN A SYSTEMATIC MANNER FOR ACHIEVING THE GOALS

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Management is a process of reaching organizational goals by working with and through people and other organizational resources.

It is the process of coordinating work activities so that they’re completed EFFECTIVELY AND EFFICIENTLY completing with and through people and other resources

Three main characteristics 1. It’s a process or series of continuing and related

activities 2. It involves and concentrated on reaching

organization goals 3. It reaches these goals by working with and

through people and other organizational resources . The process represents the ongoing functions or primary activities engaged by mangers

What is Management?

Definition of “Management”A set of management functions directed at the efficient

and effective utilization of resources in the pursuit of organization goals.”-By Griffin:

Management is the process of designing and maintaining an environment in which individuals working together in groups, efficiently accomplish selected aims.”- Koontz and Weihrich

Management is an organ, organs can be described and defined only through their functions-Peter F. Drucker

Management is a distinct process consisting of activities of planning, organizing, actuating, and controlling, performed to determine and accomplish stated objectives with the use of human beings and other resources.-Terry & Franklin

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MANAGEMENT IS MANAGING

People – TactfullyPeople – As teamPeople’s - SkillsPeople V/S TechnologyPeople V/S Objectives (MBO)

People V/S Resources

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MANAGEMENT THUS IS A FUNCTION OF : M = f(ir+ef), where ir stands for internal

resources & ef stands for external factors

MANAGING THE INTERNAL AND EXTERNAL ENVIRONS, THROUGH VARIOUS EFFECTIVE AND EFFICIENT PROCESSES, WITH THE OBJECTIVE OF ACHIEVING LAID DOWN EXPECTED RESULTS.

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Management : Manage – People – tactfully

Manage – People – technology Manage – People – as team Manage – competencies Manage – objectives (MBO) Manage – People and things (resources –

physical, inanimate) Manage – f ( RISKS, REWARDS)

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Definition of Management

Management…..Is based on a systematic body of knowledge-

laws, principles and conceptsThis knowledge is universalIf a manager has this fundamental knowledge

and knows how to apply it to a given situation, he should be able to perform the managerial functions efficiently and effectivelyManagement Practice is regarded as an art, but organized knowledge about management is a scienceTHUS MANAGEMENT IS BOTH AN ART AND SCIENCE

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When it comes to manage people, it is said that “people are enigmatic.”

Thus, Management is enigmatic.Harold Koontz described the present state of

management theory as a “jungle.”

There can be lots of ambiguity and there will be no recipe book

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Management

Management is a function of M = f(RESULTS, FEEDBACK,

RESULTS……)

Managing the internal and External Environs in the Bio-Ecosystems through various effective and efficient processes with the objective of achieving laid down expected results.

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Management

Management Function and Process » Planning » Organizing » Leading » Controlling

management process is the set of ongoing decisions and work activities in which managers engaged as they plan, organize, lead, and control .

Management Roles managers perform a lot of different but high interrelated roles

1. Management roles it’s the specific categories of managerial behavior

1. The interpersonal roles are roles that involves people (subordinates and persons outside the company) and other duties that are ceremonial and symbolic in nature

1. The informational roles Involves receiving collection, and disseminating information.

1. The decisional roles revolve around making choices and includes roles as businessman, disturbance handler, resource allotment, and negotiator.

Process of ManagementThe whole management process is actually an integration of the work activity (Mintzberg) and the management functions

MANAGEMENT FUNCTIONS :

Planning, Organization, Co-ordination, motivation, and control are Universal.

These functions are performed in all organizations – SMEs, Large, not-for-profit organizations, etc.

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DefinitionsPlanning : Management functions that

involves the process of defining goals, establishing strategies for achieving those goals and developing plans to integrate and coordinate activities

Organizing: management function that involves the process of determining what tasks are to be done, who is to do them, how the tasks have to be grouped, who reports to whom, and where decisions are to be made

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Leading : management functions that involves motivating subordinates, influencing individuals or teams as they work, selecting the most effective communicating channels or dealing with any with employee behavior issues

Controlling : Management functions that involving monitoring actual performance, compiling actual to standard, and taking action if necessary

Management process : The set of ongoing decisions and work activities in which managers engage as they plan, organize, lead and control.

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caseLearn management from your

motherRole of mother in traditional Indian householdResponsibilities Father – Salary earner Mother- Home maker

Running House hold Children’s Education Fulfilling Social obligations Much more

MANAGEMENT MANAGEMENT LESSONS FROM LESSONS FROM

MOTHERSMOTHERS

WHAT MATTERS MOST FOR A MOTHER……………….????????????????

WHAT IS THE ULTIMATE DREAM OF EVERY MOTHER……………..?????????

TO RUN THE HOUSE HOLD IN A VERY EFFECTIVE AND EFFICIENT MANNER, TO MEET THE SOCIAL OBLIGATIONS AND TO SEE THE WELFARE OF HER CHILDREN AND HER SPOUSE

Mothers wear many hats- Here are some leadership & management skills we learn from my moms:

* Moms wear many hats. Looking back, we can't believe all our moms did for us. She juggled countless responsibilities, wearing many hats. Leaders today require the same.

* You can't treat every kid the same. Seems like we should, but some kids just need a stern look and they're back in line. Others need more, shall I say, persuasion (that was me!). Mom was the original situational leader!

* Moms are still on the job even when they're tired. Moms don't really get to check out, generally speaking. They can be wiped out but are still on the job. There might be days I'm tired, but when we're leaders, we're paid to be there for the team.

With more thought I'm guessing we could all come up with more parallels between the invaluable roles of mom and leader.

HOW DOES SHE DO IT

TYPICALLY MOTHERS MIGHT NOT PREPARE BUDGETS, PLAN AND ORGANIZE , YET THEY APPLY ALL MANAGEMENT TECHNIQUES TO RUN THEIR HOUSE HOLD QUITE EFFECIENTLY THOUGH THEY HAVE NEVER GONE THROUGH THE MANAGEMENT TECHNIQUES.

THEY PRIORITIZE THE JOBS WHICH REQUIRE IMMEDIATE ATTENTION AND DEFER THE DECISIONS, WHICH ARE NOT GOING TO EFFECT THE RUNNING OF HOUSE-HOLD

MANAGEMENT IS ART OF GETTING THINGS DONE WITH LIMITED RESOURCES IN A GIVEN PERIOD OF TIMG THROUGH SYSTEMATIC PLANNING, ORGANIZING, CO-ORDINATION AND PROPER BUDGETING

you are aware the following are the functions of the management:

According to George & Jerry, “There are four fundamental functions of management i.e. planning, organizing, actuating and controlling”.

According to Henry Fayol, “To manage is to forecast and plan, to organize, to command, & to control”.

Luther Gullick has given a keyword ’POSDCORB’ where P stands for Planning, O for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for reporting & B for Budgeting.

But the most widely accepted are functions of management given by KOONTZ and O’DONNEL i.e. Planning, Organizing, Staffing, Directing and Controlling.

PlanningPlanningPlanningPlanning Definition

Planning is establishing an overall strategy for achieving the organization’s goals and developing a comprehensive set of plan to integrate and coordinate organizational work .It’s concerned with both ends (what’s to be done) and means (how it’s to be done) .

Planning Purposes1. Planning gives direction .2. Reduces the impact of change .3. Minimizes waste and redundancy .4. Sets the standards used in controlling .

Planning Process Steps1. State the organizational objectives .2. List alternative ways of reaching objectives .3. Develop premises how and which alternative to be based .4. Choose the best alternative for reaching objective .

5. Develop plans to pursue the chosen alternative .

Organizational Objectives or Goals (Planning’s Function)1. Organizational Objectives

targets toward which the open management system is directed. Properly developed organizational objectives reflect the purpose of the organization .

2. Organizational Purpose or Mission is what the organization exists to do, given a particular customer group and customer needs .

Organizational Objectives Areas 1. Market standing-Management :set objectives to clarify the relation with competitors .2. Innovation-Management :set objectives explain the ways to develop a new operation

methods.3. Productivity-Management : set objectives to show the production target levels .4. Physical and financial resources-Management : set objectives of the good using of

acquisition, and maintenance of capital and monetary resources .5. Profitability-Management : set objectives to specify the profit the company would like

to generate .6. Managerial performance and development-Management : set objectives that specify

rates and levels of managerial productivity and growth .7. Worker performance and attitude-Management : set objectives that specify worker

productivity rates as well as desirable attitudes for worker to possess .8. Public responsibility-Management : set objectives explain the company’s

responsibilities to its customers and society and shows the company’s seriousness to live up to those responsibility.

Goals Types1. Stated Goals

are official statements of what the company says, and what it wants its stakeholders to believe about the goals. They can be found in an organization’s charter, annual reports, or managers public statements.

2. Real Goals are goals that a company actually pursues-closely show what organizational members are doing .

Compare between Financial and Strategic Objectives

Financial Objectives Strategic Objectives

» Faster revenue growth» Faster earning growth » Higher profit margins » Higher return on invested capital » Stronger bond and credit » Bigger cash flows » Arising stock price » A more diversified revenue base » Stable earnings during recessionary periods

» A bigger market share » A higher more secure industry rank » Higher product quality » Lower costs relative to key competitors» More attractive product line » A stronger reputation with customers » Superior customer service » Recognition as leader to complete in international markets

Plans Types A. Plans according to Functions1. Strategic Plans

are plans that apply to the whole company ,establish the overall goals and seek to position the company in its environment terms

2. Operational Plans are plans that specify the details of how to achieve the overall goals

Compare between two Types Strategic plans covers the a longtime frame and broader of the

company , and also include the formulation of goals because operational plans define ways to achieve the goals . Operational plans covers the short time periods (monthly, weekly, and day to-day)

B. Plans according to Timeframe 1. Long-term Plans

plans with a time frame three years and more 2. Short-term Plans

one year or less3. Intermediate Plans

is any time in between long term and short terms plans

C. Plans Types according to Specificity 1. Specific Plans

are clearly defined . They have specifically stated objectives . There’s no uncertain and no problem with misunderstanding .

2. Directional Plans are flexible plans that set out general guidelines .

D. Plans Types according to Use Frequency 1. A single-use Plans

is a one-time plan specifically designed to meet the needs of a unique situation .

2. Standing Plans are plans provide direction for activities performed repeatedly, and include policies, rules ,and procedure .

Planning Tools and Techniques 1) Environment Assessing Techniques A. Environmental Scanning

is the screening a large amounts of information to anticipate and interpret changes in the environment .

Decision-MakingDecision-Making Definition

Decision is choice made between two or more available alternatives . Decision-Making is process of choosing the best alternative to reach objectives.

Decisions Types :1. Programmed Decision

are routine and repetitive, and the company develops specific ways to handle them .

Procedure It’s a series of interrelated sequential steps that manager can use for responding to a structured problem .

Rule It’s clear statement that tells manger what he can do . Rules used for facing a well-structured problem because they are simple to follow and ensure consistency stability . ex. Rules about lateness and absenteeism .

Policy put guidelines to limit manager’s thinking in specific direction . Different from rule, policy establish parameters for decision maker rather than specifically stating what should or should not to be done

2. Non-Programmed Decision are typically one-shot decision that are usually less structured than programmed decision .

The Decision-Making Process : the decision-making process include the steps for decision maker to arrive at this choice .The decision-making steps

1. Identifying an existing problem ¤ Orders issued by managers or supervisors .¤ Situations relayed to managers by their subordinates .¤ The normal activity of the managers themselves .

2. List alternative solution before searching for solutions managers should be aware of five limitations on the number of problem-solving alternatives available :

¤ Authority factors (manager’s superior may gave told the manager that may be a certain alternative is not feasible ) .

¤ Biological for human factors (human factors inside the company may be not fit for carry out certain alternatives ) .

¤ Physical factors (the physical facilities of the company may be not fit for certain alternatives ) .

¤ Technological factors (the level of company technology may be not fit for certain

¤ alternatives ) .¤ Economic factors (certain alternatives may be too costly for the company ) .

3. Selecting the most beneficial alternative the evaluation should consist of three steps

® first : decision maker should list the potential effects of each alternatives ® Second : they should assign a probability factor to each potential effects to

show how probable the effect occurrence would be if the alternative were carried out .

® Third : keeping company goals in mind, decision maker should compare each alternative’s expected effects and the respective probabilities of those effects .after completed this steps. Manager the most advantageous of alternative to the company .

4. Implementing the chosen alternative put the chosen alternative into action . Decision must be supported by appropriate action to have a chance of success .

5. Evaluating decision effectiveness decision makers must gather feedback to determine the implementing alternative effect on the identified problem . If the identified problem is not being solved, managers need to search out and implement some other alternative .

Decision-Making Conditions* Complete Certainty Condition

It’s the decision-making situation in which the decision maker knows exactly what the results of a carried out alternative will be .

* Complete Uncertainty Condition Used if the decision maker has no idea about the results of carried out alternative .

* Risk Condition It means the decision maker has only enough information to estimate about the implemented alternatives outcome .

The Decision-Making PervasivenessΘ Plan Θ Organize Θ Lead Θ Control

OrganizingOrganizing Definition

Organizing is the process of establishing orderly uses for all company’s resources. It’s also the process of creating a company’s structure . The challenge for managers is to design an organizational structure that allows employees to effectively and efficiently do their work .

Some Organizing Purposes ◙ Divides work into specific jobs and department .◙ Assign tasks and responsibilities associated with individual jobs .◙ Coordinate diverse organizational tasks .◙ Cluster jobs into units .◙ Establish relationships among individuals, groups, departments .◙ Establish formal lines of authority ◙ Allocates and deploys company all resources .

The Organizing Process 1. Reflect the company’s plan and objectives .2. Establish major tasks .3. Divides major tasks into subtasks .4. Allocate resources and directives for subtasks .5. Evaluate the result of implemented organizing strategy .

Step 2:Establish major tasks .

Step 1:Reflect on plans and objectives .

Step 3:Divides major tasks Into sub tasks .

Step 4 : Allocate resources and Directives for subtasks .

Step 5 :Evaluate results of Organizing strategy .

3. Chain Of Command

is the continues line of authority that extends form upper organizational levels to the lowest levels and clarifies who reports to whom .

¤ Authority : involves the rights inherent in a managerial position to tell people what to do and to expect them to do it .

¤ Responsibility : involves the obligation of employees to perform any assigned duties as managers coordinate and integrate the work of employees .

¤ Unity Of Command : it helps preserve the concept of a continuous line of authority . It states that a person should report to only one manager .

4. Span Of Control The contemporary view of span of control notices that many factors influence the appropriate number that a manager can efficiently and effectively manage .

¤ Employee tasks similarity .¤ Tasks complexity .¤ The degree of standardized procedure placing .¤ The company’s information system sophistication .¤ Company’s culture strength .¤ Manager preferred style .

5. Centralization and Decentralization Centralization Describes the degree to which decision-making concentrated at a single point in the company . If top managers make the company’s key decisions with little or no inputs from below then the organization is centralized

Decentralization Allows lower-level employees provide input or actually make decision .

Centralization and Decentralization FactorsMore Centralization

Environment is stable Lower level managers are not as capable or experienced at making

decisions as upper level managers . Lower-level managers do not want to have a say in decisions . Decisions are significant . Organization is facing a crisis or the risk of company failure . Company is large Effective implementation of company strategies depends on managers

retaining say over what happens .

More Decentralization Environment is complex, uncertain . Lower-level managers are capable and experienced at making

decision . Lower-level managers want a voice in decision . Decisions are relatively minor . Corporate culture is open to allowing managers to have a say in what

happens . Company is geographically dispersed . Effective implementation of company strategies depends on managers

having involvement and flexibility to make decision .

6. Formalization shows the degree to which jobs in company are standardized and the extent to which employee behavior is guided by rules and procedures .

InfluencingInfluencing Definition

Influencing is the process of guiding the activities of company members in appropriate directions .

Appropriate Directions Are those that lead to the attainment of management system objectives .

The Influencing Subsystem 1. Leading .2. Motivating .3. Considering groups .4. Communicating .

Inputs 1. People .2. Money .3. Raw materials .4. Machines .

Output appropriate organization members behavior

Considering groups

Leading Motivating

Processes Influencing Process

» Interpersonal Communication Types

1. Verbal Communication It’s the sharing of through words (written or spoken)

2. Nonverbal Communication It’s the sharing of information without using words to encode thoughts (gestures, vocal tones, and facial expressions)

» Organizational Communication Is the interpersonal communication within organization .Organizational communication directly relates to the goals, function, and human organizations structure .

» Formal Organizational Communication It follows the organization chart lines .

Leadership Leadership Definition

Leadership is the process of directing the behavior of others toward the accomplishment of some objective or objectives .

Leader Versus Manager leading is not like managing . But some managers are leaders and some leaders are mangers, leading and managing have not the same activities.Managing is much wider in range than leading and focuses on both non-behavioral and behavioral issues .Leading emphasizes mainly behavioral issues .

The Trait Approach to Leadership leadership shows the personal characteristics of an individual as the main determinates of how successful that individual could be as a leader.management writer agree that leadership ability can’t be explained by individual traits or inherited characteristics, they believe that individual can be trained to be good leaders .

Situational Approach to Leadership

It suggests that leadership style must be matched to the situation the leader faces.

Leader Decision-Making (Vroom – Yetton – jago) the VYJ theory is built on two premises

1. Organizational decision should be of high quality (should have beneficial impact on performance)

2. Subordinates should accept and be committed to organizational decisions that are made.Decision Style The VYJ model suggests that there’re five different decision styles or ways that leaders can make decision . These styles range from authority (the leader makes the decision) to consultative (the leaders makes the decision after interacting with the followers) to group-focused (the managers meets with the group and the group makes the decision .The VYJ model, is method for determining when a leader should use which decision style .

MotivationMotivation Definition

Motivation is the inner state makes everyone in company behaves in a way that ensures the accomplishment of some jobs .

Motivating Organization Members Strategies There’s seven strategies 1. Managerial communication . 2. Theory X – Theory Y .3. Job design .4. Behavior modification .5. Likert’s management system.6. Monetary incentives .7. Non – monetary incentives .

ControllingControlling

Definition Control is the process of monitoring activities to ensure that they are being accomplished as planned and correcting any significant deviations.

The Controlling Process Measuring performance . Comparing measured performance to standards . Taking corrective action .

1. Measuring Performance managers must measure correct organizational performance by establishing some unit of measure that gauges performance and observe the quantity of this unit as generated by the items whose performance is being measured.

2. Comparing Measured Performance to Standards after managers have taken a measure of organizational performance, the next step in controlling is to compare this measure with some standard.

A Standard

is a level of activity established to serve as a model for evaluation organizational performance .

3. Take Corrective Action after actual performance has been measured and compared with established performance standards, the next step in controlling process is to take corrective action if necessary .Corrective Action focuses on correcting organizational mistakes that are slowing the organizational performance.

Control Types 1. Pre-control or Feed forward Control

the control that takes place before work is performed is called per control or feed forward control . Managers using this type of control to create policies, procedures, and rules aimed at eliminating behavior that will cause desirable work result .

2. Concurrent Control Is control that takes place as work is being performed . It relate not only to employee performance, but also to such non human areas as equipment performance and department appearance.

3. Feedback Control is control that takes place after some unit of work has been performed. Control that concentrates on past organizational performance is called feedback control. Managers use this type of control to take corrective action by looking at organizational history over a specified time period . There’s two advantages over feed forward and concurrent control first feedback provides managers with meaningful information on how effective their planning effort was. second feedback control can enhance employee motivation.

Input Processes Output

Feed forward

Control

Anticipates Problems

Concurrent Control

Feedback

Control

Corrects Problems as theyHappen

Corrects Problems after they Occur

Qualities of Effective Control System

1. Accuracy an accurate control system is reliable and produces valid data.

2. Timelinessan effective control system must provide timely information .

3. Economy any system of control has to justify the benefits that it gives in relation to the costs it incurs .

4. Flexibility controls must be flexible enough to adjust to problems or to take advantage of new opportunities .

5. Understandability controls that cannot be understood have no value. A control system that is difficult to understand can cause unnecessary mistakes, frustrate employees, and be ignored .

6. Reasonable Criteriacontrol standards must be reasonable and attainable if they are too high or unreasonable, they no longer motivate.

7. Strategic Placement management can’t control everything that goes on in company . Even if it could the benefits couldn’t justify the costs . As a result , managers should place controls on factors that are strategic to the organization’s performance. Control should cover the critical activities, operations, and events within the organization.

8. Emphasis on the Exception because managers can’t control all activities, they should place their strategic control devices where those devices can call attention only to the exceptions .

9. Multiple Criteria if management controls by using a single measure such as unit profit, effort will be focused only on looking good on that standard. multiple measures of performance widen this narrow focus.

10. Corrective Action an effective control system not only indicates when a significant deviation from standard occurs but also suggests what action should be taken to correct the deviation .

Evolution of Management Thought

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Schools of Management ThoughtIt was during the 20th century that a

systematic study of management began

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4 schools of thought(by: Newman, Summer and Warren)

Productivity approachBehavioral approachRationalistic model approach, andInstitutional approach

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Hutchison’s classificationsClassical management theoryHuman behavior theoriesSocial and political systems approachesEcological systems approach andRational decision making concepts

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THE CONTRIBUTORS ON MANAGEMENT PRICIPLES…

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Charles Babbage (1792-1871)Benefits of division of laborUse of science and mathematicsEmphasis on cost reduction

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Henry R. TowneMain contribution is :“That he set the climate and atmosphere for

the later application of scientific methods. Of lesser importance was his plan of gain-sharing as a system of wage payment.”

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Henry Metcalfe (1847-1917)In 1885, his pioneering work:The Cost of Manufacturers and the

administration of Workshops, Public and Private

Theory of Management was based on system and control

He insisted that all authority should emanate from a given source, with a flow back to that source of detailed information concerning expenditures and accomplishments

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Henry Laurence Gantt (1816-1919)Educated from John Hopkins CollegeEngineer, as draughtsman and later Asst.

engineer His publications: Work, Wage and Profits

(1910); Industrial Leadership(1916); and Organizing for Work.(1919)

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Gantt’s Thoughts….Task and Bonus PlanDaily Balance Chart (Gantt Chart)Humanizing Science of ManagementImportant of LeadershipTraining of WorkersSocial Responsibility of Business(Also called as : Forerunner of modern

industrial democracy; also called as “apostle of industrial peace”)

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Harrington Emerson (1853-1931)- Popularizer of scientific management

Principles of Efficiency (12)1. Clearly define ideal 2. commonsense 3.

Competent Counsel 4. Discipline 5. Fair deal 6. Reliable, immediate, adequate and permanent records 7. Dispatching (production scheduling and control techniques) 8. Standards and schedules 9. Standardized conditions 10. Standardized Operations 11. Written standard practice instructions 12. Efficiency reward

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According to Ernest Dale, Emerson really advocated the elimination of waste:

a. Setting definite logical goals for all company operations and making managers down the line understand them so that they would not be seeking private goals of their own

b. Production planning and scheduling and the use of written standard practices

c. Better utilization of machine and man

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d. Cost Accountinge. Standards and specifications for materialsf. Standardization of parts and products as

far as possibleg. A rational approach to capital expendituresh. Better selection, placement, and fair

treatment of employees and a system of financial incentives as equitable as possible

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Frank Bunker Gilbreth (1868-1924) and Lillian Moller Gilbreth(1878-1972)

FBG: authored: Concrete Systems (1908); Field System (1908); Motion Study (1911); Power of Scientific Management (1912); Fatigue Study (1916); Applied Motion Study (1917, with Lillian Gilbreth); and Motion study for the Handicapped (1920)

The Father of Motion Study was a contemporary of Taylor and Gantt

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Lillian Moller Gilbreth:Professor of Management at Purdue University. Her famous works: The Psychology of Management (1914) and Quest for the Best Way (1924)

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Contributions by Frank GilbrethMotion studyTime StudyOne best wayTraining of personnelThree position plan of promotion (each worker

should be considered to occupy three positions: a. the job he held before promotion to his present position b. his present position and c. the next higher job

Part of his work, then would be teaching the man below him and learning from the man above him. In this way, he would qualify for promotion himself and help to provide a successor to his current job.

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Contributions of Lillian GilbrethIt should be noted that FBG was greatly assisted by

Lillian Gilbreth whom he married in 1904Both of them used motion picture films to analyze

and improve motion sequencesBoth developed the process of chart and the flow

diagram to record process and flow patterns used in a work situation

They emphasized written instructions to avoid confusion and misunderstanding (the white list card system)

The Gilbreths urged tha the POM and motion analysis could effectively be applied to huge untapped area of self-management. They started to search into the area of fatigue and its impact o health and productivity.

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Robert Owen (UK)-The father of personnel managementContributions:Improvement in Factory and domestic

conditions of his employeesSocial reforms (creating model community out

of his mills town; educational reforms)Owen said that his object was not to be a

“mere manager of cotton mills, but to introduce principles in the conduct of the people.”

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MODERN GURUS

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Fredrick Taylor

The credit of systematic study and practice of management goes to FWT, very well known as FATHER OF SCIENTIFIC MANAGEMENT

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Midvale experienceAt Midvale Steel Company, he found that

individual workers had their own notions about work and different workers performed the same task in different ways

He realized that greater output was possible on the part of the workers but most of them were engaged in what he called ‘systematic soldiering.’

The solution: the first task of management was to know what constituted a proper day’s work

He conducted time studies at Midvale Steel Company which proved of immense use to him

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Bethlehem Experiments – Pig-Iron Handling

Taylor was hired by the Bethlehem Steel Company to increase the output of one of the larger machine shops which had been a serious production bottleneck

Conclusion: Periodic rests enabled a worker to produce more than continuous work. By a systematic resting time and improved methods average productivity was raised from 12.5 tons to 47.5 tons per day.

Taylor began selecting workers and training them in handling pig-iron

The original crew was 75, this reduced dramaticallyThe earnings of the crew increased from USD1.15 to

USD 1.85 per man per day.

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Taylor’s prescription for Manager’s responsibilities Under four heads :a. They should develop a science for each element of man’s

work which replaces the old rule of thumb methodb. They should scientifically select and then train, teach and

develop the workmenc. They should heartily cooperate with the men so as to ensure

performance of work in accordance with the principles of the science which have been developed

d. There should be almost equal division of work and responsibility between management and workmen

Taylor, wanted that management should take the responsibility of planning, directing and organizing work.

HE DEEMED IT ESSENTIAL TO SEPARATE THE PLANNING OF WORK FROM ITS EXECUTION, SO THAT EACH INDIVIDUAL COULD WORK AT HIS BEST EFFICIENCY AND COULD BE COMPENSATED ACCORDINGLY.

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Taylor’s Management PrinciplesLarge, daily, defined taskStandard conditions – skill sets and tool

sets to be made available with authority along with clear cut objectives and expectations; this is called as ACCOUNTABILITY

High Pay for successLoss in case of failureSeparation of planning from doing – the

most valuable insights of TAYLORFunctional foremanship

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HENRY FAYOL- Father of Principles of Management

Division of laborAuthority and ResponsibilityDisciplineUnity of command (one boss---subordinate) Unity of Direction (one head and one plan)Subordination of Individual Interests to

General Interest (FIRM, FAST AND FAIR)

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Fayol’s Elements of Management

Fayol made a distinction between “General Principles of Management” and “elements of Management.”

The latter was regarded as functions of management. Dividing them into:

PLANNING, ORGANIZATION, COMMAND, COORDINATION AND CONTROL

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Planning Planning : most important and difficult managerial

function.Planning meant “looking ahead” and to foresee –

both to assess the future and make provision for itHe considered – unity, continuity, flexibility and

provision as the broad features of a good plan of action

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ORGANIZINGTo organize a business is to provide it with

everything useful to its functioning, raw materials, tools, capital, personnel.

Fayol concerned himself both with structure and process, listing 16 managerial duties and emphasizing the necessity for clear objectives, authority, decisions and task

COMMAND/DIRECTIONAfter the organization is formed, it is the mission of

command to set it going.For every manager, the object of command is to get the

optimum return from all employees of his unit in the interest of the whole concern

The art of command, according to Fayol, rests on certain personal qualities and knowledge of general principles of management

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COORDINATIONTo coordinate is to harmonize all the activities of a concern so as

to facilitate its working and its successAccording to him, in a well coordinated enterprise the following

facts are to be observed;1. Every dept works in harmony with the rest2. Divisions or sub-divisions in each dept are precisely

informed as to the share they must take in the commercial task and the reciprocal aid they are to afford one another

3. The working schedule of the various departments and sub-divisions thereof is constantly attuned to circumstances

CONTROL/MEASUREMENT AND FEEDBACK

According to Fayol, control consists in verifying whether everything occurs in conformity with the plan adopted, the instruction issued and the principles established

Its object is to point out weaknesses and errors in order to rectify them and prevent recurrence.

It operates on everything – resources (things), people and actions

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Key principles of Mgmt of FAYOL

Unity of commandUnity of directionResponsibility equal to authority

Scalar Chain79

MAX WEBER- THETHEORY OF AUTHORITY STRUCTURES

There are three factors involved in the understanding of any organization as under:

The laws and the traditional taboos of the society

Individual leadership (charisma) which is largely emotionalBureaucracy, i.e., The mass of administrators who carried out the laws and policies of the government

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Types of authority

Charismatic Authority – based on the personal magnetism of the leader

CHARISMA : PERSONAL QUALITY OR GIFT THAT ENABLES AN INDIVIDUAL TO IMPRESS AND INFLUENCE MANY OF HIS FELLOWS, A LEADER DOMINATES DECISION MAKING

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TRADITIONAL AUTHORITYIn this type of authority system – the leader

has authority by virtue of his status that he has inherited

The extent of his authority is fixed by customThe officials who carry out the orders are like

‘household staff’ of the master

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Rational-Legal authority = bureaucracy

This authority system dominates, and it is most efficient one

This system is characterized by rationality and legalityThe system is rational because the means are

expressly designed to achieve certain specific goalsThe org is like a well designed machine with a certain

function to perform, and every part of the machine contributes to the attainment of maximum performance of that function.

It is legal, because authority is exercised by means of a system of rules and procedures through the office which the individual occupies at a particular time

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BUREAUCRATIC FUNCTIONS ARERegular activities aimed at organizational

goals – so that they are distributed as fixed official duties

All activities follow the organizational principles of hierarchy

Operations receive equal treatment under a consistent systems of abstract rules

Officials operate as formalistic personalities without becoming emotionally involved.

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Lyndall Urwick – 6 setsPrinciple of InvestigationPrinciple of ObjectivePrinciple of OrganizationPrinciple of DirectionPrinciple of ExperimentPrinciple of Control(Urwick’s principles of management and

organization – source: A dictionary of Industrial Administration edited by John Lee )

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Urwick’s Principles of Organization

This was his main contributions to original thinking in regard to the framework of management

The principles were modified and published by AMAThese are :

Principle of Objective (purpose/mission/objectives and vision)

Principle of Specialization : the activities of every member of any organized group should be confined, as far as possible, to the performance of a single function

Principle of coordination: The purpose of organizing per se, as distinguished from the purpose of the undertaking, is to facilitate coordination and unity of effort.

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Principle of Authority: In every organization group, the supreme authority must rest somewhere. There should be a clear line of authority from the supreme authority to every individual in the group

Principle of Responsibility : The responsibility of the superior for the acts of his subordinate is absolute

Principle of Definition: The content of each position, the duties involved, the authority and responsibility contemplated and the relationships with other positions, should be clearly defined in writing, and published to all concerned

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Principle of Correspondence: in every position, the responsibility and the authority should correspond

Principle of Span of Control: No person should supervise more than five, or at the most six direct subordinates (reportees) whose work interlocks

Principle of Balance: The various units of an organization should be kept in balance

Principle of continuity : Reorganization is a continuous process, in every undertaking specific provision should be made for it.

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George Elton Mayo (1880-1949)

He has been called the founder of the “human relations school.”

He became famous on account of the Hawthorne experiments

These experiments had a significant impact on management thought, and considerably influenced the “human relations movement.”

Experiments conducted in the Hawthorne Plant of the Western Electric Company in Chicago – from 1927 to 1932.

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