The pyramids of Egypt

The great wall of China

We cannot do todays job with yesterdays methods and be in business tomorrow --- Nelson Jackson

A Group of Donkeys lead by a lion can defeat a group of lions lead by a donkey ---Socrates

Definition of Management: Its Nature and Purpose

Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.

DEFINITIONS OF MANAGEMENT

1.

F. W. Taylor: Management is the art of knowing exactly what you want (the men) to do, and then seeing that it is done in the best and the cheapest way.

2. Peter. F. Drucker: Management is a multipurpose organ that manages business, manages managers, and manages workers and work. 3. Louis Allen: Management is what a manager does. 4. Koontz and weihrich: management is the process of designing and maintaining an environment in which individuals, working together in a group, efficiently accomplish selected goals. 5. Finally, the term can be defined as: Management is a process of planning, organizing, staffing, directing, and controlling human efforts to achieve organisational objectives effectively.

MANAGEMENT IS AN ART OR SCIENCE

Managing: Science or Art?

Managing as practice is an art; the organized knowledge underlying the practice may be referred to as a science.

MANAGEMENT AS ART OR SCIENCE

Management as An Art: Art can be defined as: An art means practical know-how or skills in getting the desired result with less efforts, less cost, and less time. Since all main conditions of an art are satisfied with management, the conclusion is that management is an art.

MANAGEMENT AS A SCIENCE: Science can be defined as: A science is a fact-based, critically tested systematized body of knowledge pertaining to a specific field. The knowledge is accumulated through study, experience and experimentation. The scientific knowledge produces impersonal results, and it can be empirically tested and universally applied. The conclusion is that management is not an exact science like chemistry, mathematics, biology, or physics.
Conclusion: Management is both a science and an art. Finally, we can say that management is the artful science a science with an art.

NATURE OR CHARACTERISTICS OF MANAGEMENT

1. Management is a Process 2. Abstract Phenomenon 3. Goal-oriented 4. Decision-making 5. Working with and Through People 6. Factor of Production 7. Integrated Activity 8. As Art and a Science 9. Management as a Profession 10.Management as a Universal Activity 11.Multidisciplinary Subject

Management is a Process

A process consists of a series of interrelated activities or steps to be followed in a sequence and it always restarts with the first step.

Abstract Phenomenon

Management cannot be seen or touched like a physical object. It is invisible/intangible knowledge. The knowledge consists of concepts, functions, principles etc. and is used to obtain the desired results.

Goal-oriented

The primary task of management is achievement of goals. The goals can be defined as the end expected results that can be actualized in the future. If one has nothing to achieve, there is no need of management.

Decision-making

Every function of management consist of a set of decisions. Success of an org depends on the quality of decisions taken by its managers.

Working with and Through People

A manager makes the people in an org to work. He himself doesn't perform the actual work but is responsible for leading, motivating, directing and controlling the efforts of people to get the desired results.

Factor of Production

It is the managers job to see the factors of production are organised and coordinated in an optimum manner to get maximum possible results.

Integrated activity

Management integrates the activities and functions of various groups and departments. Integration is necessary to ensure that all people, groups, and departments work consciously and actively for the same purpose. If they are not integrated the effort get neutralized, and consequently fail to achieve the objectives.

As art and a science

Management is both as art and a science. An art concerns with practical use of managerial knowledge and a science concerns with systematic development of knowledge.

As a profession

A profession is specialized knowledge which is based on intensive study, experience and observation, and is used to serve others for fees. Management is considered an emerging profession moving towards professional status.

Management as a universal activity

Management is universal with reference to fundamentals- concepts, processes, principles, and functions. But it is not considered universal in practice.

Multi-disciplinary subject

Management has enriched its knowledge by borrowing concepts, principles, and theories from disciplines like economics, marketing, sociology, psychology, etc. Management is a combination of all these subjects or disciplines.

Other characteristics
It is a system of authority It is a field of study or a discipline It is a multipurpose organ It follows a dynamic approach It is essentially a leadership activity It is an organised activity It is a relationship among resources It is a social system It is what a manager does, but not what a manager is It is a group of functions, and not a group of people

The Functions of Management

The five managerial functions around which managerial knowledge are organized: planning, organizing, staffing, directing, controlling.

MANAGEMENT PROCESS OR FUNCTIONS OF MANAGEMENT

1.Planning (including forecasting and decision-making) 2.Organizing (including delegating) 3.Staffing (including manpower planning, recruitment and selection, training and development, etc.) 4.Directing (including motivation, leadership, communication, and supervision) Also called coordination because coordination is the result of direction

5.Controlling (including budgeting and reporting)

Levels in management
Top level management
Board of directors Chairman Chief executive

Middle level management

Departmental heads Divisional heads Sectional officers

Lower level management

Senior supervisors Functional supervisors Frontline supervisors

Functions of top level management

Analyze and evaluate the business environment and determine the firms response to it Determine the objectives Formulate policies, rules, procedures, budget. Decide the structure of the org Deal with financial and technological issues Integrate the efforts of departmental heads Motivate emp and boost their morale Build and maintain healthy public relations, and represent the unit to the outside world ( stake holders/public) Guide , supervise, review and control middle level executives Strategic decisions such as contracts, mergers, acquisitions.

Functions of middle level management

Carry out operations according to the plan formulated by top level Make arrangement for necessary resources and facilities for the department Coordinate and control efforts of people working in their department Serve the link b/w the top and operating level Recruit , select and train the supervisory personnel Motivate emp working at lower level Collect and analyze necessary information and prepare report for top mgmt.

Functions of lower level management

Implement operational plans to carry out day- to day activities effectively. Deal with recruitment and training of workers Communicate problems with higher authorities and seek for suitable soln. Report the performance of workers to higher authority Manage necessary materials and facilitate for workers Create and maintain healthy work climate Maintain discipline and order at work place Supervise and control activities of workers/salesmen

Main Purpose of the Managers Job

To achieve and exceed the Assigned objective by ensuring that each and every member of the team achieves and / or surpasses his / her respective objective.

A Good Manager has..

the capability to get people of ordinary ability to perform in an extraordinary manner!

5 Differences
Worker Works alone Does the work Like a player in the team Is lead and Managed Responsibility: Single Manager Works with others Develops people/customers Like a coach and a counsel; Pitches in as player when needed. Is the Leader/Manager according to the condition Responsibility : Various

Key Responsibilities
Ensuring achievement of assigned Teams and individual team members objectives Decision Making Ensuring his objectives achievement covering up deficit of anyone in his team. Focus on Brands / New Products Distribution Channel Management Timely Reporting and Feedback Developing Team Members Market Development Market Intelligence Strong Customer Focus Planning, Monitoring & Controlling Appraising &Reviewing Necessary course corrections

A Good Manager will..

always succeed in getting more output and better results from his team members and they will deliver this willingly!

Managers : Ineffective v/s Effective

Ineffective Manager Appeaser Bully Caddy Despondent Excavator Favoritism Gutter Inspector Hindsight Effective Manager Advisor Benefactor Cheer Leader Decisive Example Setter Fair Generous Honest

Managers : Ineffective v/s Effective

Insecure Jealous Know-all Loner Manipulator Nag Opinionated Pillion Rider Quashes new ideas Innovator Judicious Knowledge Resource Leader Motivator Negotiator Open minded Perseverant Quality Conscious

Managers : Ineffective v/s Effective

Reactive Subjective Trumpet Blower Unfair Vengeful Whiner Excuse Master Yesterdays hero Receptive Strategist Transparent Understanding Vibrant Winners Mind Set Experimenter Youthful

Managerial roles
Todays managers, irrespective of the nature of job or place in hierarchy in the org perform more or less similar functions such as planning, organizing, staffing, directing and controlling to achieve org goals. Performing functions indicates managerial role. Henry mintzberg has identified ten roles in 3 sets of functions that a manager has to perform, They are:
3 interpersonal roles 3 informational roles 4 decision roles

The Managerial Roles Approach (Mintzberg)

Interpersonal Roles
Figurehead Leader Liaison

Informational Roles
Monitor Disseminator Spokesperson

Decisional Roles
Entrepreneur Disturbance handler Resource Allocator Negotiator

Interpersonal Roles
Figure head
A manager performs duties of legal or ceremonial nature, such as welcoming visitors, giving testimonials to emp and performing other similar roles.

Leader
A manager provides a dynamic leadership to his subordinates by guiding, instructing and motivating them and maintaining healthy relationships with them.

Liaison
Performance of any org depends on the relationship among its different departments and branches. In this role, manager establishes horizontal contacts among various departments and their activities.

Informational Roles
Monitor
Manager receives and analyzes info from i/o the org and transmit the same to appropriate people

Disseminator
He disseminates the info by mail, phone, meeting and other suitable media.

Spokesperson
He acts as a representative of the org to transmit the info to outside world. He plays the role of a spokesperson with trade unions, media, govt officials, and others.

Decisional Roles
Entrepreneur
A manager assumes the role of an entrepreneur when he initiates changes in the org to bring about innovation and improvement in the existing methods or tech. He acts as a troubleshooter and provides speedy soln in a crisis. In case of an accident, breakdown of machines, dispute or conflict among emp, strike, lockout, loss of valuable customers, failure of contracts etc. He has to decide on the allocation of the resources in such a way that every individual or dept gets adequate resources. He is often required to negotiate with parties within and outside the org to arrive at an amicable and profitable settlement. He negotiates with subordinate for better commitment for loyalty, with peers for coordination and integration, with workers and trade unions for work related conditions, with govt facilities, with other parties for extending necessary support.

Disturbance handler

Resource Allocator

Negotiator

Managerial Functions at Different Organizational Levels

All managers carry out managerial functions, but the time spent for each function may differ.

Fig. 1-1 Time Spent in Carrying Out Managerial Functions

Managerial Skills and the Organizational Hierarchy

The four skills required of administrators: Technical skills Human skills Conceptual skills Design skills

Fig. 1-2 Skills and Management Levels

Essential managerial skills

Cultural flexibility Communication skills HRD skills Creativity Self management for learning Managing time and stress Motivating and influencing others Team building Rational decision making Creative problem solving Competitiveness and control skills Managing conflict Delegating

How old is the practice of management?

The practices are as old as human civilization But study and research started about 100 years ago
Bureaucracy Classical school of thought Scientific management Administrative theory

The Evolution of Management Thought & Patterns of Management Analysis

Frederick Taylor and Scientific Management Fayol, the Father of Modern Operational Management Theory Elton Mayo and F. Roethlisberger and the Hawthorne Studies Recent Contributors to Management Thought, including Peter Drucker

Bureaucracy by Max Weber Max Weber (18641920) German sociologist

Characteristics of bureaucracy

Jobs are divided into specialized tasks Standardized process-rigorous rules Well defined hierarchy Life long employment Career progression based on qualifications Centralized power

Scientific Management
Frederick Winslow Taylor(1856-1915) 1878- joined as worker at Midvale steel works. Graduated in science and engineering through evening study 1898- joined Bethlehem steel company as Engineer

Taylor's Principles of Scientific Management

1. Replacing rules of thumb with science (organized knowledge) 2. Obtaining harmony in group action, rather than discord 3. Achieving cooperation of human beings, rather than chaotic individualism 4. Working for maximum output, rather than restricted output 5. Developing all workers to the fullest extent possible for their own and their company's highest prosperity

Scientific Management

Studied the work processes and introduced

One best way to do the job Differential wages linked to productivity Careful selection and training of workers Division of labour and distribution of work between management and workers Harmonious relationships between management and workers Specialization and division of labour Time and motion study Overall objective- efficiency of the labour

Limitations of scientific management

Impersonal approach Emphasis only on material needs Monotonous and boring jobs Exploitation device Anti democratic Harsh and difficult to perform

Administrative theory by Henry Fayol

Henry Fayol(18411925) French mining engineer

Administrative theory

Industrial activities are classified into six categories

Technical Commercial Financial Accounting Security Managerial

Administrative theory 14 PRINCIPLES OF ADMINISTRATIVE THEORY

Division of work: specialization increases output Authority: managers should have right to give orders and own responsibility Discipline: employees must follow the rules Unity of command: every employee should receive orders from only one boss Unity of direction: there should be single plan of action to guide workers Subordination of individual interests to the general interests Remuneration: workers must be paid a fair wages for their work Centralization: major decisions should be taken at the top level Scalar chain: Authority should run from top to bottom in proper channel Order: there should be a place for everything and every thing should be in its place Equity: managers should be kind and fair to their workers Stability of the tenure: workers must have job stability Initiative: employees should be allowed to use creativity and take initiatives Esprit de corps: promoting team work for productivity

Neo classical theory-Human relations

Elton Mayo (18801949) Harvard University

Elton Mayo and F. Roethlisberger and the Hawthorne Studies.

In general, the improvement in productivity was due to such social factors as morale, satisfactory interrelationships between members of a work group (a "sense of belonging"), and effective managementa kind of managing that would understand human behavior, especially group behavior, and serve it through such interpersonal skills as motivating, counseling, leading, and communicating.

Human relations theory

Phase-1-Illumination experiments (in 1924)

At the Hawthorne plant of western electric company Increasing the light at work place did increase productivity but control group also produced more Even when lighting reduced; productivity went up on a moon light day.

Human relations theory

Relay assembly test: phase II (in 1925)

The experimental group of employees were given freedom to fix work schedules Six breaks of five minutes per shift were allowed Work day and week were shortened Work was simplified Financial incentives for increased production Friendly supervision These kinds of special attention and treatment enhanced productivity ( i.e. Hawthorne Effect)

Human relations theory

Interviewing programme: phase III (in 1928)

Interviewed 21000 employees to find the reasons for increased productivity Informal work groups and their productivity norms were recognized as the main causes for productivity.

Human relations theory

The group norms were Dont turn out too much work Dont turn out too little work Dont tell supervisors anything that would harm a colleague Dont be too officious-rather follow group norms. Ultimate finding of all experiments PEOPLE ARE NOT MERELY THE ECONOMIC BEINGS RATHER THEY ARE SOCIAL BEINGS

Peter Drucker
The greatest management thinker of 20th Century His major contribution to management is Management by Objectives MBO Jointly setting objectives by the managers and employees Periodical evaluation of performance Provide feedback to the employee Reward according to the results.

Contingency or situational approach

Managerial practice depends on circumstances ( contingency or situation). Contingency theory recognizes the influence of given soln on org behavior patterns. Situational factors:
Organization size Routineness of task technology Environmental uncertainty Individual differences

Need for contingency approach for management

Cultural differences Customer diversity Emp diversity Legal regulations Technology Org structure environment

Systems Approach to Management

Systems concepts have broad applicability. Systems have boundaries, but they also interact with the external environment; that means org are open systems. The enterprise receives inputs, transforms them and exports the outputs to the environment.

Input output model

Reengineering the system

Inputs

Transformation process

outputs

External environment

Fig. 1-6 Systems Approach to Management

Total quality management approach

Focuses on providing dependable, satisfying products and services that are fit for use as well as conforming to quality requirements. The general concepts are continuous improvement, attention to details, team work and quality education.

Learning organizations
Learning org are org where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning to see the whole world together. - Peter Senge Peter Senge explains the five disciplines of learning org they are:
Systems thinking Personal mastery Mental models Shared vision Team learning

1.Systems Thinking 5.Team Learning The Learning Organization Focus 3.Mental 4.Shared Models Vision 2.Personal Mastery

A Learning Organization
SYSTEMS THINKING: Integrating all the functions in an organization into a cohesive structure.

PERSONAL MASTERY: Personal and professional development that is in sync with the organizations goals.

MENTAL MODELS: Internalized frameworks and generalizations of how an organization works and responds to its environment.

SHARED VISION: Developing commitment using shared pictures of the future; Everyone working for a common, agreed upon future.

TEAM LEARNING: People working as teams and therefore learning as teams.

Benefits of learning org

To workers:
Motivate workers Can become more creative and innovative Knowledge sharing Interdependency increases Social interaction improves

Organizational benefits:
Traditional practices are broken Improvement in customer relations Can adapt to changes effectively in terms of technology , market improvement and facing competitors. Org pools up with expertise and knowledge and helps in problem solving.

Social responsibility of managers

It refers to such decisions and activities of a manager which provide for the welfare of the society as a whole along with the earning of profit for the firm. Manager has to function to discharge social responsibility.

Social responsibility

The objective concern of business firm for the welfare of the society and it involves following by the management of such policies, making of such decisions or following of such lines of action which are desirable in terms of objectives and values of our society.

The theme of social responsibility is that:

A business firm should not ignore the welfare of the society. Policies and decisions of the business enterprise, should focus on values of society. Earning profit by honoring values of society and finally assist the promotions of welfare of the society.

Social responsibility
Meaning Conscious effort to operate in a manner that creates a win-win situation for all stake holders. Who are the stake holders in a business Investors Customers Suppliers Employees The government The community Business competitors

What does the stake holders want?

Investor-profit Employees-better salary and service conditions State-taxes + legal compliance Customer best goods and services at competitive price Supplier- better and dependable treatment Competitor- Healthy competition Community- accommodative policies/practices Weaker section- providing opportunity for growth

Levels of social responsibility From worst to best Social obstruction Social obligation Social reaction Social involvement

Levels of social responsibility

Social obstruction

Deliberately perform unethical or illegal business practices.

Levels of social responsibility

Social obligation

Meeting only the minimum legal requirements

Levels of social responsibility

Social reaction

Responding positively to social requests

Levels of social responsibility

Social involvement

Voluntary initiate socially responsible acts

End of Module 1 Thank You