Nature of Management

And Its Process

Harshit Doshi
Chapter Outline
 Management – Concept
 Management Functions
 Management Theory
 Management Approaches
 Administration – Management
 Management as Science
 Management as Profession
 Innovation and the Manager
 Goals of Manager
Management - Concept

 A case of Harley Davidson

 Human Relation
 Definition
Management Function
 POSDCORB
1. Planning
2. Organizing
3. Staffing
4. Directing
5. Coordinating
6. Reporting
7. Budgeting
Management Theory

 Scientific Theory of Management

 Modern Management
 Behavioural Management
 System Approach
 Contingency Management
Scientific Theory of Management

 Frederick Taylor is often called the “father of

scientific management.
 Taylor believed that organizations should study
tasks and develop precise procedures.
 As an example, in 1898, Taylor calculated how much
iron from rail cars Bethlehem Steel plant workers
could be unloading if they were using the correct
movements, tools, and steps. The result was an
amazing 47.5 tons per day instead of the mere 12.5
tons each worker had been averaging.
Scientific Theory of Management

 Major principles of the scientific management

may be summarized as follows:
1. Division of work and responsibility between
Labour and management
2. Scientific determination of each element of a
man’s Job.
3. Scientific selection and training of workers
4. Absolute cooperation between Labour and
Management
5. Differential piece of wage payment.
Modern Management
 Henri Fayol, a French mining engineer, developed 14 principles of
management based on his management experiences.
 Division of work: Division of work and specialization produces more
and better work with the same effort.
 Authority and responsibility: Authority is the right to give orders
and the power to exact obedience. A manager has official authority
because of her position, as well as personal authority based on
individual personality, intelligence, and experience. Authority creates
responsibility.
 Discipline: Obedience and respect within an organization are
absolutely essential. Good discipline requires managers to apply
sanctions whenever violations become apparent.
Continue
 Unity of command: An employee should receive orders
from only one superior.
 Unity of direction: Organizational activities must have
one central authority and one plan of action.
 Subordination of individual interest to general
interest: The interests of one employee or group of
employees are subordinate to the interests and goals of the
organization.
 Remuneration of personnel: Salaries — the price of
services rendered by employees — should be fair and
provide satisfaction both to the employee and employer.
 Centralization: The objective of centralization is the best
utilization of personnel. The degree of centralization varies
according to the dynamics of each organization.
Continue
 Scalar chain: A chain of authority exists from the highest
organizational authority to the lowest ranks.
 Order: Organizational order for materials and personnel is essential.
The right materials and the right employees are necessary for each
organizational function and activity.
 Equity: In organizations, equity is a combination of kindliness and
justice. Both equity and equality of treatment should be considered
when dealing with employees.
 Initiative: Thinking out a plan and ensuring its success is an
extremely strong motivator. Zeal, energy, and initiative are desired at
all levels of the organizational ladder.
 Esprit de corps: Teamwork is fundamentally important to an
organization. Work teams and extensive face-to-face verbal
communication encourages teamwork.
Behavioural Management
 The behavioural management theory is often
called the human relations movement because it
addresses the human dimension of work.
 Behavioural theorists believed that a better
understanding of human behaviour at work, such as
motivation, conflict, expectations, and group
dynamics, improved productivity.
 Mayo, Maslow, McGregor, Levitt, Herzberg and
McClelland etc have laid the foundation of this
theory.
 Elton Mayo’s the Hawthorne Experience
Contingency School of
Management
 The contingency school of management can be summarized
as an “it all depends” approach.
 The appropriate management actions and approaches
depend on the situation. Contingency management
recognizes that there is no one best way to manage.
 In the contingency perspective, managers are faced with the
task of determining which managerial approach is likely to be
most effective in a given situation.
 For example, the approach used to manage a group of
teenagers working in a fast-food restaurant would be very
different from the approach used to manage a medical
research team trying to find a cure for a disease.
Systems management theory

 A system is an interrelated set of elements functioning as

a whole.
 An organization as a system is composed of four
elements:
1. Inputs — material or human resources
2. Transformation processes — technological and
managerial processes
3. Outputs — products or services
4. Feedback — reactions from the environment
 Managers recognize the various parts of the organization,
and, in particular, the interrelations of the parts.
System Terminology
 An organization that interacts little with its
external environment (outside environment) and
therefore receives little feedback from it is
called a closed system.
 An open system, in contrast, interacts
continually with its environment. Therefore, it is
well informed about changes within its
surroundings and its position relative to these
changes.
 Management is an Open System
Managerial Roles

 Interpersonal: This role involves

human interaction.
 Informational: This role involves the
sharing and analyzing of information.
 Decisional: This role involves decision
making.
Managerial Roles
Managerial Roles
Managerial Roles
School of Management

1. The Empirical Approach

2. The Interpersonal Approach
3. The Group behaviour Approach
4. The Decision Approach
5. The Mathematical Approach
6. The Operational Approach
Schools of Management
1. The Empirical Approach: Experience is the best
teacher.
2. The Interpersonal Behaviour Approach:
Management is by people and for people.
Behavioural scientist belong to this group.
3. The Group Behaviour Approach: Teamwork
4. The Decision Theory Approach: Decision
making is the core of Management.
5. The Mathematical Approach: Management is a
system of mathematical models and processes. OR
and analyst belong to this group.
6. The Operational Approach: Combination of all
approaches as per real life situation.
Administration and
Management
1. Administration is concerned with policy making
whereas management with implementation.
2. Function of Administration are legislative and
largely determinative while that of management
are executive and governing.
3. Administration is concerned with planning and
organizing, but motivating and controlling functions
are involved in management.
4. BOD is normally concerned with admin whereas
personnel below that level are in charge of
management.
Management – Science or
Art
 Science may be defined as a body of
knowledge systematized through
application of scientific method in any
department of enquiry.
 Management also have systematic base
like principles as planning, controlling,
direction etc.
 Management is still a growing science
and inter disciplinary science.
Management – Science or
Art
 Practical application is reflected in art.
 The process of management involves
use of knowledge and skills
 Management is personalized is sense
that every manager has its own
approach for solving the problem.
Management as
Profession
 A field is normally characterised as
Profession when following special
features are present in it:
1. Systematic body of knowledge
2. Need for learning and proper
organisation
3. Entry restricted on the basis of
examination or education and
4. Dominance of service motive.
 Thank
you