INTRODUCTION TO MANAGEMENT

WHAT WE NEED TO KNOW? The evolution of management thought and the pattern of Management Analysis Is Management a Science or Art? Management and Society: The external environment, Social Responsibility and Ethics Global and Comparative Management-The Basis of Global Management.

THE EVOLUTION OF MANAGEMENT THOUGHT

Broadly Divided into 4 stages Pre-scientific Management Period Classical Theory Scientific Management Administrative Management Bureaucratic Model Neo-classical Theory or Behaviour Approach Modern Theory or System Approach

EVOLUTION OF MANAGEMENT THOUGHT PRE-SCIENTIFIC MANAGEMENT PERIOD Contributions made by -Roman Catholic -Military Organizations -Writers like Charles Babbage, James Watt etc. CLASSICAL THEORY Scientific Mgt Administrative Mgt theory Bureaucratic Model NEO-CLASSICAL THEORY - Hawthorne Experiment MODERN THEORY System Approach Contingency Approach

2. Administrative Management Theory The study of how to create an organizational structure that leads to high efficiency and effectiveness

MAX WEBER’S ADMINISTRATIVE THEORY

Max Weber (1864-1920) German Sociologist Came up with bureaucratic model He developed the principles of bureaucracy as a formal system of organization. He designed the model to ensure efficiency and effectiveness. It is the most important mean of controlling over human beings.

Weber’s Principles of Bureaucracy Hierarchy of authority: Authority can be exercised effectively when positions are arranged hierarchically, so employees know whom to report to and who reports to them. Division of Labour: There should be a division of labour based upon competence and functional specialization.

Weber’s Principles of Bureaucracy cont.. Impersonality: People should occupy positions because of their performance, not because of their social standing or personal contacts. Specified system of task and responsibility: The extent of each position’s formal authority and task responsibilities and it’s relationship to other positions should be clearly specified.

Weber’s Principles of Bureaucracy cont.. Written rules of conduct: Should create a well defined system of rules, Standard Operating Procedures (SOPs), norms so that they can effectively control behaviour.

Advantage of Weber’s Model No confliction among job duties Promotion is based on experience and merits. Employees are bound to follow rules and management process becomes easy. Division of labour helps workers in becoming experts.

Disadvantages of Weber’s model System suffers from too much of paper work Human factor is neglected due to excessive emphasis on rules Employees don’t develop belongingness to the organization. Employees resist to change.

3. Behavioural Management Theory The study of how managers should personally behave to motivate employees and encourage them to perform at high levels and be committed to the achievement of organizational goals. It was concerned that the scientific and administrative theory of management ignored the human side of the organization.

Features of Behavioural Management Theory An organization is more than a formal structure. It is a system of interpersonal and intergroup relationships. Management must understand human behaviour. Higher motivation and productivity can be obtained through good human relations which can be developed through Good leadership Effective Communication Employee Participation

Behavioural Management Theory or Theory X and Theory Y It is given by Douglas McGregor He proposed the two different sets of assumptions about workers. He said in his book “The Human Side of Enterprise” that People can be managed in two ways.

Theory X Assumptions The average worker is lazy, dislikes work and will do as little as possible and tries to escape it whenever possible. Managers must closely supervise and control through reward and punishment. Many employees rank job security on top, and they have little or no ambition. Employees generally dislikes responsibilities An average employee needs formal direction.

Theory Y Assumptions Workers are not lazy, want to do a good job. They view work as natural and enjoyable. Employees are committed to objectives and exercise self-control and self direction for their attainment. If the job is rewarding and satisfying, then it will result in employees’ loyalty and commitment to organization. They can learn and seek responsibility. All people are capable of making creative and innovative decisions.

4. Management Science Theory An approach that focuses on the use of quantitative techniques to help managers make minimum use of organizational resources to produce goods and services. The management science theory includes Quantitative Management: Linear-nonlinear programming, modelling, simulation, queuing theory, chaos theory. Operations Management: Techniques used to analyze any aspect of the organization’s production system. Total Quality Management: Focuses on analyzing input, conversion and output activities to increase product quality. Management Information System (MIS): Provides information vital for effective decision making.

5. Organization Environment Theory The set of forces and conditions that operate beyond and organization’s boundaries but affect a manager’s ability to acquire and utilize resources

Organization Environment Theory cont.. THE OPEN SYSTEM VIEW A system that takes resources for its external environment and transforms them into goods and services that are then sent back to that environment where they are bought by the customers.

Organization Environment Theory cont.. THE CLOSED SYSTEM VIEW A self contained system that is not affected by changes in its external environment.

IS MANAGEMENT SCIENCE, ARTS?

What do you mean Management Is the process of using what you have { RESOURCES }, to do what you want to do …. {GOALS} George R Terry - "Management is a distinct process consisting of planning, organising, actuating and controlling performed to determine and accomplish the objectives by the use of people and resources".

Resource People Money Time Work Procedures Energy Materials Equipment

Goals Profit Levels or Maximum cost levels Maintenance or growth of financial strength Quality standards Guest employee & management concerns Professional obligations Societal concerns

IS management an art or science or profession? ART: Because it depends on the skills, aptitude & creativity of the manager SCIENCE: Because there is considerable knowledge in the field of management with basic principles for guidance of basic activities. Profession: A body of specialized knowledge and recognized educational process of acquiring it, a std of qualification governing admission to the profession, a std conduct governing practitioners with clients, colleagues and the public.

The Management process Planning Organizing Coordinating Staffing Directing Controlling Evaluating Revision in plans Changes in procedures

ADMINISTRATION ? MANAGEMENT ? ORGANIZATION ?

Administration: Concerned with laying down of corporate policy, obtaining finance, production & distribution. Management: Concerned with actual execution of policies within limits set by administration. Organization: Combines the work in such a way with individuals/groups that duties formed provide best possible application of available effort

Supervisory Management Levels of Management Top Management Middle Management Supervisory Management Non Management Employees

Board of directors CEO Administrative Functional Top Execs ExecssM Middle Level Execs First_Line Suupervisors First Line Supervisors Management

Traits of a manager Best Traits Worst Traits Fair/just in decisions Trusting/trusted at the same time Caring & analytical in thought Empowering & capable/responsible Always punctual Worst Traits Dishonest Shows favouritism Lazy Unorganized

Skills of a manager …….. Human Resource Skills Technical Skills Conceptual Skills

Conceptual Human resource Board of directors CEO Functional Top Execs Middle Level Execs First Line Supervisors Technical

Characteristics of Management Mgt aims at reaping high results in economic terms. Management also implies skills and expertise in getting things done through people. Management is a process Mgt is a universal activity-applicable in all field Mgt is science, art, profession It is an endeavour to achieve pre-determined objective. It is a group activity It is a system of authority It involves decision making It implies good leadership It is dynamic and not static It draws ideas and concepts from various disciplines It is goal oriented

Scope of Management Management is considered as a continuing activity made up of basic management functions like planning, organizing, staffing, directing and controlling. It covers the following areas HRM, Mktg Mgt, Production mgt, Materials Mgt, Purchasing Mgt, office management.

Management and Society: The external environment, Social Responsibility and Ethics

Organizational External Environment