1. Chapter 2 Management Process

2. What is Management? Management is Key Function of any organization.
It is nothing but getting the things done by the other people with the help of optimum resources to achieve the desired goals.

3. Resources are organizational assets
Managers
The people responsible for supervising the use of an organization’s resources to meet its goals.
Resources are organizational assets
People Skills
Knowledge Information
Raw materials Machinery
Financial capital

4. What is Management?
Management is concerned with preparing, organizing and directing human efforts towards achievement of the aims.
Management includes ability to plan, organise and supervise the business activities and it involves leadership and administrative skills.

5. What is management? Management is not only a science, but also an art.
As the management involves handling of human beings, it is an art, and because the process of management has a scientific base, it is considered as a science.

6. Evolution of Management
Progress, development and changes in the concept of management is termed as Evolution of Management.
Management is there from historical period.
Man started his developments by managing his difficulties.
Since last 30,000 years human being is applying management skills.

7. Evolution of Management
Ancient Egyptian, Greek, Roman, Chinese writers have mentioned the term management in various aspects.
In last, 10,000 years human erected monuments in many parts of the world.
Eg. Pyramids of Egypt, Great Wall of china, Forts in India are extra ordinary management.
It shows great skill of ancient mankind in the management of creation and production.

8. Evolution of Management
Later on Military and naval leaders have display spectacular feats of organization and management.
During 20th century management came academically.
In, 1881, first Business Management School was started.

9. Evolution of Management Theory

10. Job Specialization and the Division of Labor
Adam Smith (18th century economist)
Observed that firms manufactured pins in one of two different ways:
- Craft-style- each worker did all steps.
- Production-each worker specialized in one step.

11. Job Specialization and the Division of Labor
Adam Smith (18th century economist)
Realized that job specialization resulted in much higher efficiency and productivity
Breaking down the total job allowed for the division of labor in which workers became very skilled at their specific tasks.

12. F.W. Taylor and Scientific Management
Before Taylor( ), business was managed by Rule of Thumb and common sense. He Found inefficiency all around.
To improve efficiency Taylor suggested-
Separate Planning from work.
Organize workshop on the basis of functional specialization
Carefully select workers and train them.
Find new ways for jobs to be performed .
Standardize tools and equipment's.
Establish fair levels of performance and pay a premium for higher performance.

13. Henry Fayol ( )
He published his book in “General and Industrial Administration” in 1895.
According to Fayol, there are six main groups of operations in any business :
Technical
Commercial
Financial,
Security
Accounting, and
Administration.

14. Definition's of Management
F.W. Taylor- ” Management is an art of knowing what to do, when to do in best and cheapest way.”
Henry Fayol- “ To forecast and plan, to organise, to command, to coordinate and to control is called management.”
Mary Parker – “It is getting things done by others.”
Drucker- ”The systematic organisation of economic resources”.

15. Levels of Management

16. Top Management Also called as Strategical management.
It is represented by
Board of Directors (BOD)
Chief Executive Officer (CEO)
Chairman/ President
Managing Directors (MD)
General Managers (GM)
They are handling overall Functions.

17. Top Management Functions of Top Level Management
To do overall strategic work.
To determine and finalise aims/ goals.
To define vision of work.
To workout long term plans.
Top management is the highest authority of the organization.
Responsible for overall developments in an organization.

18. Middle Management Also called tactical level of managers.
It is represented by
Factory Manager
Heads of Department
Plant Manager
Senior Managers.
They are Accountable for the work done by juniors.

19. Middle Management To plan the executive strategies.
To plan medium scale policies.
To transmit ideas of Top level management to lower level management.
To help Top management in strategic decisions.
To guide Lower Management in operation work.

20. Lower Management Also called as operational level managers.
It represents-
Shift in-charges
Senior supervisors
Junior Managers
Trainee Engineers.
Foreman
They have direct responsibility of machinery and materials.

21. Lower Management Functions-
To supervise the operations.
To plan and execute daily work schedules.
To solve bottleneck problems & difficult situations of workers.
To keep daily records.
Skilled workers, operators are working below them.

22. Scientific Management by F.W. Taylor
F.W. Taylor is Known as the Father of Scientific Management.
Taylor is known for his systematic development of management techniques.
Taylor developed four principles of management: Research, Standardization, control, cooperation.

23. Scientific Management
Defined by Frederick Taylor in the late 1800’s
Wanted to replace “rule of thumb”
To reduce the time a worker spent on each task by optimizing the way the task was done.

24. Four Principles of Scientific Management
Research- Study the ways jobs are performed now and determine new ways to do them.
Gather detailed time and motion information.
Try different methods to see which is best.

25. Four Principles of Scientific Management
2) Standardization- Codify the new methods into rules.
Teach to all workers the new method.

26. Four Principles of Scientific Management
Control- Select workers whose skills match the rules.
Cooperation- Establish fair levels of performance and pay a premium for higher performance.
Workers should benefit from higher output

27. Scientific Vs Traditional Management
Scientific Management
Traditional Management
It prefers Scientific approach for selection, training and placement of employees.
It practices recruitment and allotment of work directly to employees.
Works on research and experimentation
It works on trial and Errors
Productivity is more
Productivity is less
Efforts to reduce the waste
Efforts to produce more w/o caring waste
Quality of work is assured
Not Assured

28. Fayol’s Principles of Management
Division of Labor: allows for job specialization.
jobs can have too much specialization leading to poor quality and worker dissatisfaction.
Authority and Responsibility
both formal and informal authority resulting from special expertise.
Unity of Command
Employees should have only one boss.

29. Fayol’s Principles of Management
Line of Authority
A clear chain of command from top to bottom of the firm.
Centralization
The degree to which authority rests at the top of the organization.
Unity of Direction
A single plan of action to guide the organization.

30. Fayol’s Principles of Management
Equity - The provision of justice and the fair and impartial treatment of all employees.
Order - The arrangement of employees where they will be of the most value to the organization and to provide career opportunities.
Initiative - The fostering of creativity and innovation by encouraging employees to act on their own.

31. Fayol’s Principles of Management
Discipline
Obedient, applied, respectful employees are necessary for the organization to function.
Remuneration of Personnel
An equitable uniform payment system that motivates contributes to organizational success.

32. Fayol’s Principles of Management
Stability of Tenure of Personnel
Long-term employment is important for the development of skills that improve the organization’s performance.
Subordination of Individual Interest to the Common Interest
The interest of the organization takes precedence over that of the individual employee.

33. Fayol’s Principles of Management
Esprit de corps
Comradeship, shared enthusiasm foster devotion to the common cause (organization).