WHAT IS MANAGEMENT ? MANAGEMNT IS ART & SCIENCE OF PROCURING, CONTROLLING & UTILIZING ALL FINANCIAL & NON-FINANCIAL RESOURCES FOR ACHIVING THE BEST & MOST ECONOMICAL RESULTS.

FUNCTIONS OF MANAGEMENT PLANNING ORGANIZING STAFFING DIRECTING CONTROLLING

BRANCHES OF MANAGEMENT FINANCIAL MANAGEMENT MARKETING MANAGEMENT MATERIAL MANAGEMENT QUALITY MANAGEMENT Production Management HumanResource MANAGEMENT

What is Business? A business is an association of persons for achieving certain objectives. It is a rational coordination of a number of people for achieving a common well defined goal. Though it is believed that capitalistic view of business is to earn profit and maximize wealth, but it has got certain obligation towards the well being of society and nation in which it operates.

Business Environment : External Environment Sociological Dimension Economic Dimensions Task Environment Organizational Internal Environment Suppliers Owners Culture Competitors Political Dimensions Board of Director Employee International Dimensions Regulators Customers Technological Dimensions

Different Schools of Management Thought : Scientific Mgmt Administrative Theory Theory of bureaucracy Human Relation Theory ( Elton Mayo )

FEATURES OF SCIENTIFIC MANAGEMENT F.W. Taylor is known as the “father of scientific management”. It’s implies the application of science to the management of a business concern. It also teaches the application of scientific investigation for solving problems of industrial management. FEATURES OF SCIENTIFIC MANAGEMENT 1. Replacing rules of thumb by organized scientific management so that for performing each task could be determined. 2. The scientific selection of workers so that each worker would be given responsibilities for task or job for which he/she is most suited. 3. Ensuring co-operation through incentives and provide work environment that reinforces optimal work results in a scientific manner. 4. Divide responsibility for managing and for working and device scientific education and training programs.

Objective of Scientific Management 1. Increase productivity. 2. Reduce the cost of production. 3. Improve the quality of the production. 4. Efficient use of resources. 5. Motivation. 6. Right replacement. 7. Allowing incentives.

Administrative Theory (Henry Fayol) Fayol divide the activities of the org into: 1. Technical (production) 2. Commercial (buying ,selling & exchange) 3. Financial (Optimum use capital & resources) 4. Security (protection to property & person) 5. Accounting 6. Managerial (Planning, organizing, leading & controlling)

Fayol’s Principles of Management 1. DIVISION OF LABOUR: Specialization leads to increase in efficiency of the work performed. 2. AUTHORITY & RESPONSIBILITY : It is formal authority gives to manager the right to command. 3. DISCIPLINE : Members in the organization need to respect the rules & agreement that govern the organization. 4. UNITY OF COMMAND : Each employee must receive instructions from only one person. 5. SUBORDINATE OF INDIVISUALIZED INTEREST TO GENERAL INTEREST: The interest of one employee or group of employee should remain towards a common direction. 6. UNITY OF DIRECTION : All the operations within an organization that have same objective should be directed by one manager.

CONTINUED…. 7. REMUNARATION : Compensation for should be fair to both employee & employers. 8. CENTRALIZATION : Centralization of authority. 9. SCALAR CHAIN : The scalar chain is the chain of supervisors ranging from ultimate authority to lowest levels. This should not be deviated. 10. ORDER : Everything should be in the right place. 11. EQUITY : Managers should treat all his subordinates equally. 12. STABILITY OF STAFF : A high employee turnover rate required to efficient functioning of the organization. 13. INITIATIVE : It involves giving freedom to the employees to execute their plan. 14. ESPIRIT DECORPS : Promoting team spirit give the organization a source of unity.

HUMAN RELATION THEORY (ELTON MAYO) Elton Mayo applied first time the psychological approach or relational approach in 19th century. Based on finding of the Mayo brought out few behavioral principles which summarized below: 1. An organization is not merely a formal structure but a live and dynamic social system. 2. A sense of participation and a feeling of being a member of a team was greater motivating force than improvement of physical working condition. 3. Efficiency of the workers was largely regulated by his mental condition and his attitude to his work and to his colleagues and superiors.

CONTINUED……. 4. A common psychological bond that exists among the member of the group influences the conduct of the group. 5.Emotions including prejudices play a major role in shaping employees behavior. 6. Group behavior overrides individual inclination and characteristics.

BUREAUCRATIC MODEL Max Weber a German scientist developed this model of the organization as a rational way of structuring a complex organization. In this model he said that many people performing a large variety of tasks in an organization must follow established rules and regulation in order to ensure the uniformity and rationality of its output. Thus bureaucratic model defined an ideal system where position and tasks are clearly defined. Division of labour was precise and clear.

BEHAVIORAL MANAGEMENT MODEL Theory X and Theory Y(Douglas Mcgregors) ASSUMPTION THEORY ‘X’ : 1. People do not like work and try to avoid it. 2. People do not like to work, so managers have to control, direct , coerce and threaten employees to get them to work towards organizational goals. 3. People prefer to be directed, to avoid responsibilities and to want security, they have little ambition.

CONTINUED…… THEORY Y : 1. People do not naturally dislike work, work is the natural part of their life. 2. People are internally motivated to reach objectives to which they are committed. 3. People are committed to the goals to the degree that they receive personal rewards when they reach their objectives. 4. People will both seek and accept responsibilities under favorable conditions. 5. People have the capacity to be innovative in solving organizational problems. 6. People are bright, but under most organizational conditions their potentials under utilized.

THANK YOU