HUT 310 – MANAGEMENT

FOR ENGINEERS
By
AKHIL SANKAR K,
Assistant Professor in ME
Module I – Introduction to
management theory
 Introduction to management
 Levels of managers and skill required
 Classical management theories
 neo-classical management theories
 modern management theories
 System approaches to Management,
 Task and Responsibilities of a professional Manager
 MANAGEMENT - Definition
 Art of getting things done through people ~ Mary Parker
Follet

 Management is the art of getting things done through

and with people in formally organized groups. ~ Harold
Koontz

 Management is the art of knowing what is to be done

and seeing that it is done in the best possible manner ~
F.W. Taylor
Management is a process consisting of planning,
organizing, actuating and controlling, performed to
determine and accomplish the objectives by the
use of people and resources. ~ George R Terry

Management is the process of designing and

maintaining an environment in which individuals,
working together in groups, efficiently accomplish
selected aims
IMPORTANCE

A critical element in the economic growth of a

country.

Brings together different resources (5M)

Essential in all organized efforts, be it a business

activity or any other activity.

Dynamic, life-giving element in every

organization.
Features of Management
As Managers, people carry out the managerial
functions of planning, organizing, staffing, leading
and controlling.
Management applies to any kind of organization.
It applies to managers at all organizational levels.
The aim of all managers is the same: to create a
surplus
Management is concerned with productivity; this
implies effectiveness and efficiency.
SCIENCE OR ART?
Science
 Its principles have universal applicability
 Social science ~ includes humans whose behavior is
incapable of exact prediction.

Art
 Creative power, skill in performance, practical
applicability and scope for judgement.
 Theoretical knowledge provides a basis for taking
decision, but success depends on application of skills
MANAGEMENT as an ART
 The function of art is to bring out change and accomplish
desired results.

Features of art  PRACTICAL

 Personal skill APPLICATION
 Practical knowledge  CREATIVE USE
 Result orientation  REGULAR PRACTICE
 Regular practice aimed at
perfection
 INDIVIDUAL
JUDGEMENT
 Creativity
MANAGEMENT as a SCIENCE
 Science refers to a systematized body of knowledge acquired
through observation, experimentation, research and analysis and is
verifiable through causal and effect relationships and has universal
applicability.

 SYSTEMATIC BODY OF KNOWLEDGE

 SCIENTIFIC METHOD
 CAUSE AND EFFECT RELATIONSHIP
 VALIDITY PRINCIPLES
 KNOWLEDGE TRANSFERABILITY
 Management as a PROFESSION

 PROFESSION refers to an
occupation requiring some
significant body of knowledge
that is formally acquired and
applied with high degree of
integrity and consistency in
accordance with the code of
conduct prescribed by apex
body in the service of a relevant
segment of the society.
 Administration vs Management
Administration Management

1. Nature
Determinative function Executive function

2. Scope
Concerned with determination of major objectives and Concerned with the implementation of policies
policies
3. Level
Top level function Middle and lower level function

4. Function
Concerned with planning and controlling function Directing and controlling are the major functions

5. Skills required
Requires conceptual and human skills. Requires technical and human skills

6. Person involved
Administrators are the owners of the concern Managers are paid employees of the concern

7. Influence
Decisions are influenced more by external factors Decisions are influenced by opinion, values and beliefs.
 Entrepreneur Manager

1.Motive
motive is to start venture by setting up an motive is to render service in an enterprise,
enterprise already set up by some one
2. Status
Owner of the business employee of the business
3. Risk bearing
assumes risks and uncertainty involved in to does not bear any risk involved in the
business enterprise
4.Rewards
gets salary for the services reners by him to
gets profit for bearing risks
enterprise
5.Innovation
executes the plans prepared by the
He is the innovator
entrepreneur.
6.Qualification

needs to possess qualities like high needs to possess distinct qualification in terms
acievement motive, foresight, risk bearing, of sound knowledge in management theory
originality in thinking as so on. He need not and practice in a given functional
possess any formal academic qualifications specialization.
Levels of Management/Types of
Management
Top Level Management
 comprises of Board of Directors, CEO, Managing Director, Company
Secretary and General Manager.
 The major functions include:
 Determining corporate plan for the whole organisation.
 Determining objectives for the organisation as a whole.
 Designing organisation structure.
 Formulating strategies.
 Co-ordinating the activities of various departments.
 Decisions on mergers, acquisitions etc.
 Appointment of the heads of functional departments and appointment ol key
executives.
 Investment decisions.
 Distribution of profit.
 Deciding on matters relating to expansion, modernisation, automation and
technology absorption etc.
 Middle-level Management
 consists of the heads of various departments in an organization.
 handle most of the executions and micro-management within an organization.
 Eg: Marketing Manager, Purchase Head, Sales Manager, Operations Manager,
Branch Manager etc.
 functions and responsibilities
 Communicate the policies and the mission set by top-level Management.
 Micro-manage the tasks performed by every member of the lower-level Management.
 responsible for all the coordination between teams.
 They are responsible for the performance of lower-level executives.
 Motivating and encouraging employees to work efficiently is a crucial responsibility.
 handles all the recruitments and allocations within a team.
 hire the employees and manage company resources for optimum use.
 Interpreting plans, policies, rules and regulations devised
by top management.
 Monitoring and controlling operating management.
 Training the operating manager.
 Putting in place rules and regulations to be followed by
operating managers.
Supervisory or Operating Management
or Lower Level
 foreman, sales officer, accounts officer, superintendent etc.
 The functions performed under this layer encompass:
 Getting the work executed by the operatives.
 Scheduling the work
 Giving detailed instructions to workers.
 Ensuring adherence to quality standards.
 Assigning work to workers on a daily basis.
 Transmitting workers grievances/challenges to upper level management.
 Maintaining team spirit among the workers.
 Managerial skills

1.Technical Skill
2.Human Relations Skill
3.Conceptual Skill
  Conceptual Skills:
Technical skills Human Skills:
 ability to integrate and
 ability to work with the  ability to work well with coordinate various activities.
resources, tools, other people both
techniques, procedures individually and in a  ability to think and to
etc. group. conceptualize about
abstract solutions.
 include knowledge of and  needed by managers at
proficiency in certain every level but top  helpful in decision-making.
specialized such as managers need them  more important as they make
engineering, computers, the most. up the organizational
finance or manufacturing. hierarchy.
1. Technical Skill 3. Conceptual Skill
2. Human Relations Skill
 Ability to grasp  Ability to develop a
things in quick time.  Motivating, counseling and holistic view about the
facilitating team building skill. organization.
 Specialized
knowledge and  Knowledge of
 Understanding the behaviour interdependence of work
proficiency in using
various methods, of the employees besides in the organization.
procedures and understanding knowledge, skill  Knowledge of impact of
techniques. and attitude of workers. interdependent work with
 Knowledge of one another.
sequence of  Knowledge of factors
 Analytical and decision
procedures to be influencing human behaviour making skills.
followed in a work. at work.
 Scanning environmental
 Ability to operate dynamics and unearthing
computer  Providing effective leadership.
opportunities latent
 expected from  Building team spirit among the therein and making SWOT
managers at the analysis
employees.
operating level.  Determining overall
 It is acquired  Maintaining rapport with objectives of an
through formal employees. organisation.
education.
Role of Manager
Qualities of a Manager

 Education
 Intelligence
 Leadership
 Training
 Technical Knowledge
 Maturity
 Positive Attitude
 Self-confidence
 Foresight
MANAGERIAL EFFECTIVENESS
 Manager’s performance can be measured in terms of two concepts:
efficiency and effectiveness.
 Efficiency is the ability of a manager to do something correctly, i.e., at the
lowest possible cost or cost acceptable to the competitive environment.
 Effectiveness, on the other hand, is the ability of a manager to do correct
things, i.e., achieve high levels of value.

 At the customer service counter at a local store or bank, being efficient

means using the fewest people possible at the counter. Being effective
though means minimizing the amount of time that customers need to wait
in line.
MANAGEMENT THEORIES

Classical management theories

Neo-classical management theories
Modern management theories
CLASSICAL MANAGEMENT THEORIES

1. SCIENTIFIC MANAGEMENT THEORIES

2. ADMINISTRATIVE MANAGEMENT THEORIES
3. BUREAUCRATIC MANAGEMENT THEORY
NEO CLASSICAL THEORIES

 BEHAVIOURAL MANAGEMENT THEORY – BERNHARD, MAYO

 HUMAN RELATIONS THEORY – FOLLET
 ASSIGNMENT 1 – CLASSICAL AND NEO
CLASSICAL MANAGEMENT THEORIES
CLASSICAL MANAGEMENT THEORIES
What to write?
 SCIENTIFIC MANAGEMENT THEORIES – F.W. TAYLOR
- General description about
 ADMINISTRATIVE MANAGEMENT THEORIES - FAYOL theories (features etc.)
 BUREAUCRATIC MANAGEMENT THEORY - WEBER - Principles and Contributions (if
any)
- Merits
NEO CLASSICAL THEORIES
- Demerits
 BEHAVIOURAL MANAGEMENT THEORY – BERNHARD,
MAYO
 HUMAN RELATIONS THEORY – FOLLET

Date of Notice: 29-04-2022

Submission Date: 31-05-2022 1pm
 Objectives of Management:

PERSONAL OR INDIVIDUAL
ORGANISATIONAL or SOCIAL OBJECTIVES OBJECTIVES
ECONOMIC OBJECTIVES
 Survival depends upon its  related to the growth of the
 Survival commitment towards society. employees working in an
 Profit organization.
 The organizations which care
for society enjoy long term  FINANCIAL NEEDS–Providing
 Growth
competitive salaries and
growth. perquisites.
 Using environment-friendly  SOCIAL NEEDS-Self-respect,
methods of production. peer recognition, respect for
colleagues.
 Producing quality products
at reasonable rates  HIGHER END NEEDS or SELF
DEVELOPMENT NEEDS.
 Employment generation in
society.
Objectives of Management:

Proper utilization of resources

Improving performance
Mobilizing best talent
Planning for future
Getting maximum results with minimum efforts
Increasing the efficiency of factors of production
 Human betterment & social justice
Minimise the element of risk:
CHARACTERISTICS OR FEATURES OF
MANAGEMENT
 Management is goal oriented process
 Management is Pervasive
 Management is Multidimensional (work, people, operations)
 Management is a continuous process
 Management is a group activity
 Management is a dynamic function
 Intangible
 Composite process
 Balancing effectiveness and efficiency
 TASKS AND RESPONSIBILITIES OF
PROFESSIONAL MANAGERS
 Envisioning Goals
 Managing Growth
 Improving and Maintaining Efficiency
 Innovation
 Looking out for the competition
 Leadership
 Change Management
 Choosing correct Information Technology
Modern Management Theories
 developed in early 1960's
 The distinctive qualities of modern organization
theory
conceptual analytical base
reliance on empirical research data
integrating nature.

 Quantitative approach
 Systems Approach
 Contingency Approach
 SYSTEM APPROACH TO MANAGEMENT
 (1960)

 Its early contributors - Ludwing Von Bertalanfty, Lawrence

J. Henderson, W.G. Scott etc.

 They viewed organisation as an organic and open system,

which is composed of interacting and interdependent
parts, called subsystems.

 A system is composed of related and dependent element

which when in interaction, forms a unitary whole.
Each sub-system may identified by certain
processes, roles, structures and norms o conduct.

Systems concepts have broad applicability. Systems

have boundaries, but they also interact with the
external environment; i.e., organizations are open
systems.
Features of Systems Approach:
 A system consists of interacting elements. It is set of
interrelated and inter-dependent parts arranged in a
manner that produces a unified whole.
 The various sub-systems should be studied in their inter-
relationships rather, than in isolation from each other.
 An organisational system has a boundary that determines
which parts are internal and which are external.
 A system does not exist in a vacuum. It receives
information, material and energy from other systems as
inputs. These inputs undergo a transformation process
within a system and leave the system as output to other
systems.
 An organisation is a dynamic system as it is responsive to its
environment. It is vulnerable to change in its environment.
 Reenergizing
the system

Transformation
Inputs Outputs
Process

External
environment
Inputs and Claimants
 Inputs from the external environment may include people, capital, and
managerial skills, as well as technical knowledge and skills.
 In addition, various groups of people make demands on the enterprise.

The Managerial Transformation Process

 It is the task of managers to transform the inputs, in an effective and
efficient manner, into outputs.
 One can focus on such diverse enterprise functions as finance production,
personnel, and marketing.
 The most comprehensive and useful approach for discussing the job of
managers is to use the managerial functions of planning, organizing,
staffing, leading, and controlling as a framework for organizing managerial
knowledge.
The Communication System
 Communication is essential to all phases of the managerial process for two
reasons;
 It integrates the managerial functions. It is through communication that one
determines whether events and performance conform to plans. Thus, it is
communication that makes managing possible.
 To link the enterprise with its external environment, where many of the
claimants are.

External Variables
 Managers may have little or no power to change the external environment,
they have no alternative but to respond to it.
 Eg: Technological, Economic, Social, Ethical and Political and legal.
Outputs
 It is the task of the managers to secure and utilise inputs to the enterprise, to
transform them through the managerial functions-with due consideration for
external variables into outputs.
 Eg: products, services, profits, satisfaction, and integration of the goals of
various claimants to the enterprise.

Reenergizing the system

 some of the outputs become inputs again.
 satisfaction and new knowledge or skill of employees become more
important human inputs.
 Similarly, profits, the surplus of income over costs, are reinvested in cash and
capital goods, such as machinery, equipment, buildings and inventory.
 Focus: overall effectiveness of the system rather than the effectiveness of the
sub-systems.

 The systems approach is considered both general and specialised systems.

 general systems approach to management is mainly concerned with formal

organisations and the concepts are relating to technique of sociology,
psychology and philosophy.

 specific management system includes the analysis of organisational structure,

information, planning and control mechanism and job design, etc.

 Systems theory is useful to management because it aims at achieving the

objectives and it views organisation as an open system.
Advantages
 The systems approach assists in studying the functions of complex
organisations and has been utilized as the base for the new kinds of
organisations like project management organisation.
 It is possible to bring out the inter-relations in various functions like planning,
organising, directing and controlling.
 This approach has an edge over the other approaches because it is very
close to reality.

Disadvantages
 This approach is called abstract and vague. It cannot be easily applied to
large and complex organisations.

 Moreover, it does not provide any tool and technique for managers.

 Can hardly be considered a new approach to management, as claimed by

some proponents of this approach.
 Contingency Approach
 A structure suitable for one unit may not be suitable for another.
 Opposed to one size fits for all formula approach.
 Contingency approach suggests an organisational design which suits a particular
unit.
 A structure will be suitable only if it is tailor made for an enterprise.
 The influence of both internal and external factors should be considered while
framing a suitable organisational structure.
 This approach suggests that needs, requirements, situations of a particular concern
should be considered while designing an organisational structure.
 The factors which influence an organisation may be describe as:
 Environment
 Technology
 Size of operations
 People.
Contingency approach with situational
emphasis and integration of environment into
management and practice seems more
appropriate in the contemporary context.

The efficacy of contingency approach depends

on capability of managers to understand a
given situation and choose appropriate
technique instead of situation itself.
 Quantitative approach
 uses statistics and mathematical techniques to solve complex problems.
 techniques like computer simulations or information models to assess performance.
 can help managers make objective decisions based on data and facts, rather than
personal opinions or feelings, that support the business.
 three branches:
 Management science:
 Management science focuses on the use of mathematical and statistical methods to form
effective business solutions and achieve goals.
 Eg: PERT), CPM)
 Operations management:
 managers implement practices that help make business and production processes more
efficient.
 Management Information System:
 A management information system (MIS) represents a database that organizes an organization's
data, and managers use this system to support informed decision-making.
THANK YOU…