2Definition ‘The art of getting things through others.’ - Mary Parker ‘The process undertaken by one or more persons to cordinate the activités of other persons to achieve results not attainable by one person acting alone.’- Ivancherich, Donelly & Gibson
3MeaningManagement consists of getting things done through others by directing their efforts in an integrated and co-ordinated manner in order to attain business objectives.It also involves securing men, money and machinary needed for achievement of business objectives.Consists of organasational activities that involve goal formation and accomplishment.
4Characteristics of Management Art as well as scienceManagement is an activityManagement is a continuous processAchieving pre determined objectivesOrganised ActivitiesManagement is disciplinePurposeful ActivityDecision Making ActivityAims at maximizing profit
5Distinct ActivityIt’s a ProfessionUniversal ApplicationDirection and ControlLeadership QualityDynamicNeeded at all levelsAs a careerAs a class or teamIt’s a System
6Principles of Management Henry Fayol started his career as a mining engineer 1860 in France. In 1866, he was appointed as a manager and remained in this position for 22 years. He then went on to become the GM of the company for the next 30 years. At the time of his retirement the company had become the biggest coal company in France.Before After
7Fayol’s Principles Management Division of Labour: Specialise & efficiencyAuthority: Give orders, get things done,obedienceDiscipline: Respect rules & regulationsUnity in CommandUnity in Direction: Directed by1 manager for 1 planSubordination of individual interest tocommon goal.Remunaration
8Order: Materials & people RT & RP Equality: Friendly & FairInitiative: Subordinatesshould be given freedom.The HierarchyCentralisationStability of staffEsprit de corps
9Emergence of Management Thought The Evolution of Management can beclassified into 3 stages:Classical Theory of ManagementBureaucracy Theory - Max WeberScientific Management - F.W. TaylorProcess Management – Henri FayolThis is also known as the structural theory of management.
10BureaucracyA system of carrying on the business of government by means of departments or bureaus, each under the control of a chief, government conducted on this system.In the 1930’s Max Weber, a German sociologist, described bureaucratic form as being the ideal way of governing an organization.Essential & Basic ElementsHierarchyDivision of WorkA system of RulesImpersonality of impersonal relationsStandardizationSelection and PromotionOnly legal power and Authority
11Scientific Management Robert Owen, Charles Babbage & Henry Robinson Towne were the forerunners of scientific Management.Robert Owen: The first person to pay attention to labour welfare. He suggested a change in the attitude of industrialists towards workers.Charles Babbage: A leading British Mathematician at Cambridge University He studied the working conditions of factories and observed that most of them work on the basis of estimation & imagination. They were traditional rather then scientific.The pioneering work:Differential Engine on the ‘Economy of machinary and manufacturers.’He said that methods of science and mathematics could be applied in the solution of factory problems.
12Fredrick Winslow Taylor: Popularly known as the father of scientific management. He made a systematic study of management and evolved a set of orderly principles to replace the trial & error methods that were in vogue.He observed that workers at the ‘Midvale Steel Factory’were not enthusiastic about work, instead of getting angry with them he sympathized.He joined ‘Bethleham Steel Factory’ where he firstintroduced scientific management, but there wasstrong opposition from his managers because of hisuncompromising nature which led to his termination.After leaving he wrote a books ‘ Shop Management’and Principles and Methods of Scientific Managementwere his pioneering works.
13Principles Of Scientific Management Time & Motion Study:Observing motions os workers in the work place.Identifying movements carried out at workElimination of unnecessary movementsObserving the time required for each movement-Stop watchDeveloping shorter & fewer motionsStandardising motion & time
14Differential Payment: Differential piece rate system Differential Payment: Differential piece rate system. Fixed the standard level of production, the ones who produced less received less.Group Harmony: Achieved through satisfying theneeds of group members.Cooperation between workers and ManagementManagement should understand workersWorkers should understand organisational requirements.Standardization: in tools, instruments, working hours,working conditions, quality of work, (COP)? etc,,
15Methods Study: Methodology and systematic movement of materials ensure fast movement of materials in the factory. Reduction on transportation time.Scientific selection and training: Scientific selection based on job analysis and using selection tests should be done. Providing training to all employees based on training needs, for organizational success.Seperation of planning from execution: Supervisors perform planning function whereas workers perform the execution.
16Administrative Theory Henri Fayol in 1916 put his observations on paper under the french title ‘ Administration Industriella et Generale’ and was later translated into english under the title ‘ General and Industrial Adminisration’This book contains two partsTheory of administrationDiscussion on training for administration.
17Fayol the activities could be divided in 6 groups : TechnicalCommercialFinancialSecurityAccounting &Managerial
18Henri Fayol felt the first five were well known as a result devoted most of his book to the sixth. Classified the managerial group into 6 sub-groupsForecastingPlanningOrganisingCoordinatingCommanding &ControllingHe stated the qualities required by managers were to be physical, menrtal, moral, educational and technical.He emphasized that as one goes higher up in the levels of management, administrative knowledge becomes more important than technical skills.
20Traditional View: It was eariler believed that the main puropose of business was profit maximization, it was believed that profit earned by business was exclusively for its shareholders and if the profits were used in a social need, money is used in a place that it was not intended to be used for.
21Mordern View: It is slowly being recognized that business is not an end but it is only means to an end, the end is ___.be is a worker, customer, or any that member of the society.It is believed that the establishment and development of a business are contributions of the society.Society allots land, provide facilities and develop and provide human resources. It is mainly because of the customers that a business functions.Thus business totally depends on the society and must do something in return for it.
22Responsibilities Towards Towards Consumers/CustomersTowards EmployeesTowards owners/shareholdersTowards Inter-businessesTowards the stateTowards the community
23Towards Consumers/Customers Meet needs of different classesReasonably priced, dependable qualityAfter sales serviceFair and wide distribution of goods and servicesPrevention on goods to be concentrated only with a few producers
24Towards Employees Participate in decisions relating to work life Right to fair wageParticipate in decisions relating to work lifeMembership of trade unionTo go on strikes
25Towards Owners/Shareholders A fair and reasonable return on capitalPolitical and economic security for investmentthrough a stable govt,good law and order, stabletax policies etc,,Knowledge about the working of the enterprise,periodical reports regarding functioningUnfair trade practices are legally prohibited
26Towards Inter-Business Healthy co-operative relationshipsResist unfair and unethical competition
27Towards the CommunityIn the field of Industry: Earn while you learn programmes, such programmes must be labour intensive in areas like carpentry, pottery, spinning, weaving etc,, so that increasing employment can be provided in rural areas. The business can help providing aids.In the field of AgricultureHousing Facilities: Expand loans andfinancial support
28Towards the CommunityTransportation: Development of cheap transportation anddistribution system and improved journey planning, improved procedures of granting licences etc,,Health and EducationIndustrail aid to education in urban areasSocial audit on factual assessment: Comprehensiveevaluation of the way company discharges its responsibilities
30“VALUING PEOPLE THE RIGHT WAY” What is Ethics?“VALUING PEOPLE THE RIGHT WAY”The set of moral principles or values that defines right and wrong for a person or group.
31Definition“A branch of philosophy dealing with values relating to human conduct with respect to the rightness or wrongness of certain action.”
32Business EthicsEthics in the society may not be the same in business, thats beacuse both opearte on different objectives.Business Ethics refers to the application of moral values and moral principles to business.Morals refer to generally accepted customs of conduct and proper living as per need of the society.We should understand that business basically is not an end to the economic activity.
33Need for Business Ethics Business ethics makes the business to realize the basic objective of any economic institutionNecessary to protect the interest of the society and to maximize human welfareConvince to respect competitorsTo respect customersImproves confidence of customers, employers, suppliers, bankers etc,,Discharges role towards the govt., etc..