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Not ReadcastedNote: You can always click on the Readcast butto n to share with your Scribd followers. ..Skip Comment.. Tweet0inShare. Comprehensive NotesAccording to the Syllabus of the University of Azad Jammu & Kashmir Composed & graphics by: Tariq Rajput & Majid Rajput MBA I Govt post gr aduate collage CONTACTS:+923335885711 - +923452227077 - 2 - OUTLINE 1: INTRODUCTION Define Management? Function of Managers Evolution of Management Scientific Managemento Fredrick Taylor o Henry L. Gantto Frank & L illian Gilberth Operational Managemento Henri Fayol Behavioral Scienceo Munster be rg System theoryo Chester Barnard Modern Management/Recent contribution to managem ent thougho Peter F. Drucker 1974o Edwardso Thomas Peters & Robert Waterman 1982 - 3 - Management definedPerceptive of Managers:There are many definitions of management but most perceptive managers areconvinced that it is an organized eff ort of people whose purpose is to achieve theobjectives and goals of an organiza tion. Of course, it is not that simple. To gain a better understanding of manage ment, lets review the ideas and views expressed byacademicians and practitioners. Management as a Process:McFardland defines management asA process by which managers create, direct,maintain and operate purposive organization through systematic, coordinated, co-operative human efforts.An important tern in this definition is Pr ocess. This term emphasis the dynamic or on going nature of management, an activi ty over varying span of time. The dynamicnature implies that change is reality o f organizational life.In managing organizations, managers create changes adopt o rganizations to changesand implement changes successfully in their organizations . Businesses fail and become bankrupt because managers fail in their attempt to cope with the change.Management ascoordination:Donally, Gibson and Ivancevich also support the view of management as a process but their stress in more on co-ordi nation. According to them,Management is a process by which individual and group e ffort is coordinated towards group goals.In order to achieve goals, coordination is essential and management involves securingand maintaining this coordination.T his coordination effort is also stressed in the definition of Koontz and ODonnell .According to them, Management is a process of designing and maintaining anenviro nment in which, individuals, working together in groups efficiently and effectiv ely accomplish group goals. - 5 -academicians would teach. Ultimately they came up with the fallowing def inition. Noindividual is identified with this definition.The definition reads;Man agement is guiding human and physical resources into a dynamic organizationunits that attain their objectives to the satisfaction of those served and with the h ighdegree of moral and sense of attainment on the part of those rendering the se rvices.What is Management?Introduction:Management is a vital aspect of the econom ic life of man, which is an organizedgroup activity. A central directing and con trolling agency is indispensable for a business concern. The productive resource s material, labour, capital etc. areentrusted to the organizing skill, administr ative ability and enterprising initiative of the management. Thus, management pr ovides leadership to a business enterprise.Without able managers and effective m anagerial leadership the resources of production remain merely resources and ne ver become production. Under competitiveeconomy and ever-changing environment th e quality and performance of managersdetermine both the survival as well as succ ess of any business enterprise.Management occupies such an important place in th e modern world that the welfareof the people and the destiny of the country are very much influenced by it.Definition:Management is the process of getting things done through the efforts of other peoplein order to achieve the predetermined o bjectives of organization.Management may also be define as:The process by which ex ecution of given purpose put into operation and supervise.A concise statement:The function of executive leadership anywhere.Another statement:Management may be def ined as A technique by which the purpose and objectives of particular human grou p are determined, defined, clarified and completed - 6 -From business Pont of view:Management is the art of securing maximum resu lts with the minimum of efforts soas to get maximum prosperity and happiness for

both employer and employee and give public the best possible service.Complete d efinition of management:Management is a distinct process consisting of planning, organizing, staffing,leading and controlling utilizing both in each science and art and followed in order toaccomplish predetermined objectives of the organizat ion.Entity identityManagement is a distinct process consisting of Planning Organi zing Staffing Leading ControllingApplied toEfforts of a group of people to utili ze effective available recoursesMan Money Material Method MachineIn order to ach ieve predetermined objectives of an organizationNecessity of Management:(1) Mana gement is an essential activity of all organizational level(Low, middle, and upp er level)(2) Management applies to:(i) Small and large Organizations.(ii) Profit and non profit Organization.(iii) Manufacturing Organization.(iv) Service rende ring Organization. - 7 -Manager:Manager is also known as leader and administrative, Manager is a person who under take the tasks and function of managing at any level, in any k ind of enterprise.Managerial Skills: There are four skills of managers are expec ted to have ability of:(1)Technical skills:Technical skills that reflect both an understanding of and a proficiency in aspecialized field. For example, a manage r may have technical skills in accounting,finance, engineering, manufacturing, o r computer science. Human Skills:Human skills are skills associated with manage rs ability to work well with others, both as a member of a group and as a leader who gets things done through other. Concept Skills:Conceptual skills related to the ability to visualize the organization as a whole,discern interrelationships among organizational parts, and understand how theorganization fits into the wid er context of the industry, community, and world.Conceptual skills, coupled with technical skills, human skills and knowledge base,are important ingredients in organizational performance. Design Skills:It is the ability to solve the proble ms in ways that will benefit the enterprise.Managers must be able to solve the p roblems. The Skills vary at different levels:Top management Concept and design S kills.Middle Human Skills.Supervisors Technical skills.Skills of management at di fferent levels. - 8 -The Function of Managers:There are five functions of managers:Planning, Organizing, Staffing, Leading, and Controlling.The functions of managers provide a useful structure for organizing managementknowledge.(1)Planning:Planning invo lves selecting missions and objectives and the action to achieve them itrequires decision making, that choosing future courses of action from amongalternatives. There are five types of planning:1. Missions and objectives.2. Strategies and p olices.3. Procedures and rules.4. Programs.5. Budgets.(2)OrganizingOrganizing is the part of managing that involves establishing an intentional structureof role s for people to fill in an organization. The purpose of an organization structur eis to creating an environment helpful for human performance. It is then managem enttools and not an end. Although the structure must define the task to be done, the rulesso established must also be designed in the light of the abilities and motivations of the people available designing an effective organization structu re is not an easymanagerial task.Many problems arises in making structures fit s ituations.(3)StaffingStaffing involves filling and keeping filled, the positions in the organization. This isdone by identifying the work force requirement inve ntorying the people available andrecruiting, selecting, placing, promoting, appr aising, planning the careers,compensating and training.(4)LeadingLeading is infl uence people so that they will contribute to organization and groupgoals. All ma nagers would agree that most problems arises from peoples desires and - 9 - problems , their behavior as individuals and in groups and that effecti ve managersalso need to be effective leaders.Leading involves motivation, leader ship styles and approaches and communications.(5)Controlling:Controlling is meas uring and correcting individuals and organizational performance.It involves meas uring performance against goals and plans, showing where thedeviations from stan dards exit and helping to correct them. In short controllingfacilitates the acco mplishment of plans.Controll activity generally relate to themeasurement of achi evement. Some means of controlling like the budget for expenses, inspection, rec ord of labors-hours lost, are generally familiar. Each showswhether plans are wo rking out.THE EVOLVATION OF MANAGEMENTThe origin of management can be traced bac

k to the days when man started living ingroups. History reveals that strong men organized the masses into groups accordingto their intelligence, physical and me ntal capabilities. Evidence of the use of the wellrecognized principles of manag ement is to be found in the organization of public lifein ancient Greece, the or ganization of the Roman Catholic Church and theorganization of military forces. Thus management in some form or the other has been practiced in the various part s of the world since the dawn of civilization. With the onset of Industrial Revo lution, however, the position underwent a radical change. Thestructure of indust ry became extremely complex. At this stage, the development of aformal theory of management became absolutely necessary. It was against this background that the pioneers of modern management thought laid the foundations of modern management theory and practice.Different Author says that history of management is differe nt Author contribute inmanagement. There are so many theories of management that why also called Jungleof management. - 10 -Different period of management:1. Scientific Management:(i)Fredrick Tay lor.(ii)Henry L.Gantt.(iii)Frank and Lillian Gilberth.2. Operational Management( i) Henri Fayol.3. Behavioral Science:(i) Munster berg.4. System Theory.(i) Chest er Barnard5. Modern Management /Recent contribution to management thoughts.(i) P eter F.Drucker 1974.(ii) Edwards.(iii) Thomas Peter & Robert Waterman.19821. Sci entific Management:F.W. Taylor and Henry Fayol are generally regarded as the fou nders of scientificmanagement and administrative management and both provided th e bases for scienceand art of management.Features of Scientific Management:1. It was closely associated with the industrial revolution and the rise of large-sca leenterprise.2.Classical organization and management theory is based on contribu tions from anumber of sources. They are scientific management, Administrative ma nagementtheory, bureaucratic model, and micro-economics and public administratio n.3.Management thought focused on job content division of labour, standardizatio n,simplification and specialization and scientific approach towards organization . - 11 -Taylor s Scientific Management (USA 1856-1915):Started as an apprentice machinist in Philadelphia, USA. He rose to be the chief engineer at the Midvale Engineering Works and later on served withthe Bethlehem Works where he experime nted with his ideas and madethe contribution to the management theory for which he is so wellknown. Frederick Winslow Taylor well-known as the founder of scient ific management was the first to recognize and emphasis theneed for adopting a s cientific approach to the task of managing an enterprise. He triedto diagnose th e causes of low efficiency in industry and came to the conclusion thatmuch of wa ste and inefficiency is due to the lack of order and system in the methodsof man agement. He found that the management was usually ignorant of the amount of work that could be done by a worker in a day as also the best method of doing the jo b.As a result, it remained largely at the mercy of the workers who deliberately shirkedwork. He therefore, suggested that those responsible for management shoul d adopt ascientific approach in their work, and make use of "scientific method" for achievinghigher efficiency. The scientific method consists essentially of ( a) Observation(b) Measurement(c) Experimentation and(d) Inference.He advocated a thorough planning of the job by the management and emphasized thenecessity of p erfect understanding and co-operation between the management and theworkers both for the enlargement of profits and the use of scientific investigation andknowl edge in industrial work. He summed up his approach in these words: Science, not r ule of thumb Harmony, not discord Co-operation, not individualism Maximum output, i n place of restricted output The development of each man to his greatest efficien cy and prosperity.Elements of Scientific Management: The techniques which Taylor regarded as itsessential elements or features may be classified as under: - 12 -1. Scientific Task and Rate-setting, work improvement, etc.2. Planning the Task.3. Vocational Selection and Training4. Standardization (of working cond itions, material equipment etc.)5. Specialization6. Mental Revolution.1. Scienti fic Task and Rate-Setting (work study):Work study may be defined as thesystemati c, objective and critical examination of all the factors governing theoperationa l efficiency of any specified activity in order to effect improvement.Work study includes.(a) Methods Study:The management should try to ensure that the plant i

s laid outin the best manner and is equipped with the best tools and machinery. The possibilities of eliminating or combining certain operations may be studied. (b) Motion Study:It is a study of the movement, of an operator (or even of amach ine) in performing an operation with the purpose of eliminating uselessmotions.( c)Time Study (work measurement):The basic purpose of time study is todetermine t he proper time for performing the operation. Such study may beconducted after th e motion study.Both time study and motion study help in determining the best met hod of doing a job and the standard time allowed for it.(d)Fatigue Study:If, a s tandard task is set without providing for measures toeliminate fatigue, it may e ither be beyond the workers or the workers may over strain themselves to attain it. It is necessary, therefore, to regulate the workinghours and provide for res t pauses at scientifically determined intervals.(e) Rate-setting:Taylor recommen ded the differential piece wage system, under which workers performing the stand ard task within prescribed time are paid amuch higher rate per unit than ineffic ient workers who are not able to come up tothe standard set.2. Planning the Task :Having set the task which an average worker must strive to perform to get wages at the higher piece-rate, necessary steps have to be taken to - 13 - plan the production thoroughly so that there is no bottle neck and the work goeson systematically.3. Selection and Training:Scientific Management requ ires a radical change in themethods and procedures of selecting workers. It is t herefore necessary to entrustthe task of selection to a central personnel depart ment. The procedure of selectionwill also have to be systematized. Proper attent ion has also to be devoted to thetraining of the workers in the correct methods of work.4. Standardization:Standardization may be introduced in respect of the f ollowing.(a)Tools and equipment:By standardization is meant the process of bring ingabout uniformity. The management must select and store standard tools andimpl ements which will be nearly the best or the best of their kind.(b) Speed:There i s usually an optimum speed for every machine. If it isexceeded, it is likely to result in damage to machinery.(c)Conditions of Work:To attain standard performan ce, the maintenance of standard conditions of ventilation, heating, cooling, hum idity, floor space, safetyetc., is very essential.(d) Materials:The efficiency o f a worker depends on the quality of materials andthe method of handling materia ls.5. Specialization:Scientific management will not be complete without theintro duction of specialization. Under this plan, the two functions of planning and doing are separated in the organization of the plant. The `functional foremen arespecialists who join their heads to give thought to the planning of the perfo rmanceof operations in the workshop. Taylor suggested eight functional foremen u nder his scheme of functional foremanship.(a)The Route Clerk:To lay down the seq uence of operations and instruct theworkers concerned about it.(b)The Instructio n Card Clerk:To prepare detailed instructions regardingdifferent aspects of work .(c)The Time and Cost Clerk:To send all information relating to their pay to the workers and to secure proper returns of work from them. - 14 -(d)The Shop Disciplinarian: To deal with cases of breach of discipline andabsenteeism.(e)The Gang Boss:To assemble and set up tools and machines and to teach theworkers to make all their personal motions in the quickest and best wa y.(f)The Speed Boss:To ensure that machines are run at their best speeds and pro per tools are used by the workers.(g)The Repair Boss:To ensure that each worker keeps his machine in good order and maintains cleanliness around him and his mac hines.(h)The Inspector:To show to the worker how to do the work.6. Mental Revolu tion:At present, industry is divided into two groups managementand labour. The m ajor problem between these two groups is the division of surplus.The management wants the maximum possible share of the surplus as profit; theworkers want, as l arge share in the form of wages. Taylor has in mind the enormousgain that arises from higher productivity. Such gains can be shared both by themanagement and wo rkers in the form of increased profits and increased wages.Benefits of Scientifi c Management: Taylor s ideas, research and recommendations brought into focus te chnological,human and organizational issues in industrial management.Benefits of Taylor s scientific management included wider scope for specialization,accurate planning, timely delivery, standardized methods, better quality, lesser costs,m inimum wastage of materials, time and energy and cordial relations betweenmanage

ment and workers. According to Gilbreths, the main benefits of scientificmanagem ent are "conservation and savings, making an adequate use of every one senergy o f any type that is expended". The benefits of scientific management are:-1. Repl acement of traditional rule of thumb method by scientific techniques.2. Proper s election and training of workers.3. Incentive wages to the workers for higher pr oduction.4. Elimination of wastes and rationalization of system of control.5. St andardization of tools, equipment, materials and work methods.6. Detailed instru ctions and constant guidance of the workers. - 15 -7. Establishment of harmonious relationship between the workers.8. Bett er utilization of various resources.9. Satisfaction of the needs of the customer s by providing higher quality products at lower prices.Criticism:1.Worker s Crit icism:(a) Speeding up of workers:Scientific Management is only a device to speed up theworkers without much regard for their health and well-being.(b) Loss of i ndividual worker s initiative:Scientific Management reduces workersto automatic machine by taking away from them the function of thinking.(c) Problem of monoton y:By separating the function of planning and thinkingfrom that of doing, Scienti fic Management reduces work to mere routine.(d) Reduction of Employment:Scientif ic Management creates unemployment andhits the workers hard.(e)Weakening of Trad e Unions:Under Scientific Management, the importantissues of wages and working c onditions are decided by the management throughscientific investigation and the trade unions may have little say in the matter.(f) Exploitation of workers:Scien tific Management improves productivity throughthe agency of workers and yet they are given a very small share of the benefit of such improvement.2. Employer s C riticism:(a) Heavy Investment:It requires too heavy an investment. The employer has tomeet the extra cost of the planning department though the foreman in thisd epartment do not work in the workshop and directly contribute towards higher pr oduction.(b) Loss due to re-organization:The introduction of Scientific Manageme ntrequires a virtual reorganization of the whole set-up of the industrial unit.W ork may have to be suspended to complete such re-organization.(c)Unsuitable for small scale firms:various measures like the establishment of aseparate personnel department and the conducting of time and motion studies aretoo expensive for a small or modest size industrial unit. - 16 -Henry Lawrence Gantt (USA, 1861 - 1819):H.L Gantt was born in 1861. He graduated from John HopkinsCollege. For some time, he worked as a draftsman in a n ironfoundry.In 1884, he qualified as a mechanical engineer at Stevens Institut e.In 1887, he joined the Midvale Steel Company. Soon, he became anassistant to F .W Taylor. He worked with Taylor from 1887 - 1919 at Midvale SteelCompany. He di d much consulting work on scientific selection of workers and thedevelopment of incentive bonus systems. He emphasized the need for developing amutuality of int erest between management and labour. Gantt made four importantcontributions to t he concepts of management:1. Gantt chart to compare actual to planned performanc e. Gantt chart was a dailychart which graphically presented the process of work by showing machineoperations, man hour performance, deliveries, effected and the work in arrears.This chart was intended to facilitate day-to-day production pla nning.2. Task-and-bonus plan for remunerating workers indicating a more humanita rianapproach. This plan was aimed at providing extra wages for extra work beside sguarantee of minimum wages. Under this system of wage payment, if a worker comp letes the work laid out for him, he is paid a definite bonus in addition to hisd aily minimum wages. On the other hand, if a worker does not complete his work,he is paid only his daily minimum wages. There was a provision for giving bonus to supervisors, if workers under him were able to earn such bonus by extra work.3. Psychology of employee relations indicating management responsibility to teachan d train workers. In his paper "Training Workmen in Habits of Industry andCoopera tion", Gantt pleaded for a policy of preaching and teaching workmen to dotheir w ork in the process evolved through pre-thinking of management.4. Gantt laid grea t emphasis on leadership. He considered management as leadershipfunction. He lai d stress on the importance of acceptable leadership as the primaryelement in the success of any business. - 17 -Gantt s contributions were more in the nature of refinements rather tha n fundamentalconcepts. They made scientific management more humanized and meanin

gful todevotees of Taylor.Frank (USA, 1867 - 1924) and Lillian (U.S.A, 1878 - 19 12):The ideas of Taylor were also strongly supported and developed by the famous husband and wife team of Frank and Lillian Gilbreth. They became interested in w asted motions in work. After meetingTaylor, they combined their ideas with Taylo r s to put scientificmanagement into effect. They made pioneering effort in thef ield of motion study and laid the entire foundation of our modern applications o f jobsimplification, meaningful work standards and incentive wage plans. Mrs. Gi lbrethhad a unique background in psychology and management and the couple coulde mbark on a quest for better work methods. Frank Gilbreth is regarded as the fath er of motion study. He is responsible for inculcating inthe minds of managers th e questioning frame of mind and the search for a better wayof doing things.Gilbr eth s contributions to management thought are quite considerable. His maincontri butions are:(a)The one best way of doing a job is the way which involves the few est motions performed in an accessible area and in the most comfortable position . The best waycan be found out by the elimination of inefficient and wasteful mo tions involved inthe work.(b)He emphasized that training should be given to work ers from the very beginningso that they may achieve competence as early as possi ble.(c)He suggested that each worker should be considered to occupy three positi ons - (i)the job he held before promotion to his present position, (ii) his pres ent position,and (iii) The next higher position. The part of a worker s time sho uld be spent inteaching the man below him and learning from the man above him. T his would helphim qualify for promotion and help to provide a successor to his c urrent job.(d)Frank and Lillian Gilberth also gave a thought to the welfare of t he individualswho work for the organization. - 18 -(e)Gilbreth also devised methods for avoiding wasteful and unproductivemo vements.He laid down how workers should stand, how his hands should move and so on.(2) Operational ManagementHenri Fayol: The Father of modern operational theor y. Perhaps the real father of modern management theory is the (French industrial ist)Henri Fayol. His acute observations on the Principles of generalmanagement f irst appeared in 1916 in French, under the littleadmistration industrielte in gen erale .This monograph, reprinted in French several times, was not translatedinto English until 1929. No English translation was made or published in the US until 1949.Industrial Activities:Fayol found that industrial activates could be divide d into six groups as shown infigure.1. Technical (Production)2. Commercial (buyi ng, Selling and exchanging).3. Financial (Search for, and optimum use of capital ).4. Security (Protection of property and persons).5. Accounting (including Stat istics).6. Managerial (Planning, organization, command, contribution and control ).Henri Fayol pointed out that these activities exist in every size of business. Fayolobserved that first five were well known and he devoted most of his book t o ananalysis of the sixth.ManagersActivitiesFinancialCommercialSecurityTechnical AccountingManagerial - 19 -Managerial Planning,Organization, Staffing, Leading, Control. Fayols activi ties in industrial undertaking:General Principles of Management:Fayol listed Fou rteen Principles based on experience. He noting thatPrinciples of management are flexible, not absolute and must be usable regard less of changing and special c onditions. Some kinds of Principles appeared to beindispensable in every underta king.1. Division of Work :-Fayol applies the principle to all kind of work, mana gement as well as technical.2. Authority and responsibility :Henri Fayol finds a uthority and responsibility to be related with the latter arisingfrom the former . He sees authority as a combination of official factors, managers position and p ersonal factors, Compounded of intelligence, experience, moralworth, past service s etc.3. Discipline : Fayol declares that discipline requires good superiors at all levels.4. Unity of Command: This means that employees should receive order f rom one superior only.5. Unity Of Direction: According to this principal, each g roup of activities with same objective musthave one head and one plan.6. Subordi nation of individuals to general interest:When the two are found to differ, mana gement must reconcile them.7. Remuneration:Remuneration and method of payment sh ould b fair and have maximum possiblesatisfaction to employees and employer.8. C entralization:Without using the term centralization of authority Fayol refers auth

oritydispersed or concentrated. - 20 -9. Scalar Chain:Fayol thinks of this as Chain of Superior from beigest to l ow ranks should beshort circuited.10. Order:Fayol classify this into material and s ocial order. This is essential principle inarrangement of things and people in an organization.11. Equity:Loyalty and devotion should be elected from personnel o n biases of kindlinessand justice, when dealing with subordinate.12. Stability o f tenure:In bad management, Fayol points out id dangers and costs.13. Initiative :Initiative is execution of a plan.14. Esprit decrops:This is the principle that in the union there is strength. This principle emphasis onwork, Unity of commun ication. In order to accomplishment of objective.Element of Management:Fayol sai d the element of management is its functions. Planning, Organizing,Staffing, Lea ding, and controlling. He point out that the principles of managementcan apply n ot only to business but also to practical, religious, military and other underst anding.