Introduction to

Management

MODULE 1
Definition and Concept of Management
• Management is the attainment of organizational goals in an effective and
efficient manner through planning, organizing, staffing, directing and
controlling organizational resources.

• Louis E Boone & David L Kurtz- The use of people and other resources to
accomplish objectives.

• Mary Parker Follet- the act of getting things done through people.

• Frederick Taylor defines Management as the art of knowing what you

want to do in the best and cheapest way.
Features/Characteristics of Management

1. Intellectual process
2. Management aims at the accomplishment of predetermined objectives.
3. Management is both a science and an art.
4. Management is a group activity
5. Management principles are universal in nature
6. Management integrates human and other resources.
7. Intangible in nature.
8. Balances effectiveness and efficiency
9. Dynamic process
 Functions of Management
According to George & Jerry, “There are four fundamental functions of management i.e.
planning, organizing, actuating and controlling”.

According to Henry Fayol, “To manage is to forecast and plan, to organize, to command,
& to control”.

Whereas Luther Gullick has given a keyword ’POSDCORB’ where P stands for Planning, O
for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for reporting & B for
Budgeting.

But the most widely accepted are functions of management given by KOONTZ and
O’DONNEL i.e. Planning, Organizing, Staffing, Directing and Controlling.
 FUNCTIONS OF MANAGEMENT
1. Planning
2. Organizing
3. Staffing
4. Directing
5. Controlling
6. Coordination
7. Reporting
8. Budgeting
MANGERIAL SKILLS AND COMPETENCY
 Management School Thoughts

Evolution of
Management Thought

CLASSICAL NEO-CLASSICAL MODERN

EARLY MANAGEMENT ERA MANAGEMENT ERA MANAGEMENT ERA
CONTRIBUTORS (1880-1920s) (1920S-1940S) (1940S- TILL DATE)
(Pre Scientific Era)
Scientific Quantitative
Management Human Approach
(FW Taylor) Relations
Approach
Administrative (Elton Mayo) Systems
Management Approach
(Henry Fayol) Behavioural
Science
Bureaucratic Approach Contingency
Management
Approach
(Max Weber)
 PRE SCIENTIFIC MANAGEMENT ERA
Contributor Pioneering

Robert Owen (1771-1858) He is considered to be the pioneer of the

human resource management process. He
advocated the necessity of concern for the
welfare of workers.

Charles Babbage (1792-1871) As an inventor and a management scientist,

he built the practical mechanical
calculator, which is considered to be the
basis of the modern computer.

Andrew Ure and Charles Duplin They emphasizes the necessity of

(1778-1857) management education, which further
paved the way to professionalize
management functions.

Henry Robinson Towne(1844-1924) He emphasized the significance of skills in

running a business.
 CLASSICAL MANAGEMENT ERA (1880s-1920s)
⚫ It signifies beginning of systematic study of organisations and management practices.

⚫ 3 main streams of Management thinking under CME are-

1. Scientific Management (F Taylor)

2. Administrative Management (Henry Fayol)

3. Bureaucratic Management (Max Weber)

SCIENTIFIC MANAGEMENT
Emphasises the use of scientific method in decision making tackling organisational
problems.

Main Contributors: FW Taylor, Carl Barth, frank and Moller Gilbretg, H.L. Gantt
etc.

Concept- SM is about knowing what you want men to do and see that they do it in most
efficient way.
 SCIENTIFIC MANAGEMENT BY TAYLOR
6
Fredrick Winslow Taylor ( March 20, 1856 - March 21, 1915) commonly
known as ’Father of Scientific Management’ started his career as an
operator and rose to the position of chief engineer. He conducted various
experiments during this process which forms the basis of scientific management.
It implies application of scientific principles for studying & identifying
management problems.

According to Taylor, “Scientific Management is an art of knowing exactly

what you want your men to do and seeing that they do it in the best and
cheapest way”. In Taylors view, if a work is analysed scientifically it will be
possible to find one best way to do it.

Hence scientific management is a thoughtful, organized, dual approach towards the

job of management against hit or miss or Rule of Thumb.
PRINCIPLES OF SCIENTIFIC MANAGEMENT
7
8
FUNCTIONAL FOREMANSHIP
Administrative theory of Management: Henry Fayol

● Henri Fayol (1841–1925) was a French mining engineer, industrialist,

and management theorist who is widely regarded as one of the
pioneers of modern management theory.

● He is best known for his contributions to the development of the

administrative management theory, which focuses on the principles
and functions of management within organizations.

● Fayol's work has had a lasting impact on management practices and is

still studied and applied in various organizations today.
 Fayol's most notable contributions include:
● Administrative Management Theory: Fayol's work emphasized the
importance of administrative tasks and functions in managing
organizations effectively. He stressed the need for clear hierarchical
structures, effective communication, and proper division of labor.

● 14 Principles of Management: As mentioned earlier, Fayol outlined 14

principles of management that are designed to guide managers in their
decision-making and organizational activities. These principles are
considered foundational concepts in the field of management.

● Five Functions of Management: Fayol identified five essential functions

of management that he believed were common to all organizations:
planning, organizing, commanding, coordinating, and controlling. These
functions form the basis for many contemporary management
frameworks.
Henry Fayol’s 14 Principles of Management

1. Division of Work: Employees should be assigned specific tasks based on

their expertise. Specialization increases efficiency and improves
productivity.
2. Authority and Responsibility: Managers should have the authority to
give orders, but they must also take responsibility for the outcomes.Clear
authority-responsibility relationships help maintain accountability.
3. Discipline: Employees should follow established rules and regulations.
Discipline ensures a smoothly functioning organization and fosters respect
for authority.
4. Unity of Command: Each employee should receive orders from only one
manager to avoid confusion and conflicting instructions.
5. Unity of Direction: All activities related to a specific objective should be
directed under one plan to achieve coherence and consistency.
6. Subordination of Individual Interest to the General Interest: The
organization's goals should take precedence over personal goals to ensure
the collective success.
Henry Fayol’s 14 Principles of Management

7. Remuneration: Compensation should be fair, motivating employees to

perform their best.
8. Centralization: The level of decision-making authority should be
appropriately centralized or decentralized based on the organization's needs.
9. Scalar Chain: Communication and authority should flow through a clear
hierarchical chain of command.
10. Order: Both materials and personnel should be organized for maximum
efficiency.
11. Equity: Employees should be treated with fairness and justice to maintain
a positive work environment.
12. Stability and Tenure: Reducing employee turnover improves efficiency
and morale. Long-term employment benefits both employees and the
organization.
13. Initiative: Employees should be encouraged to take initiative and exercise
creativity within their roles.
14. Esprit de Corps: Team spirit and unity among employees foster a positive
work atmosphere and enhance overall performance.
 BUREAUCRATIC MANAGEMENT(MAX WEBER)

• Max Weber (1864–1920), a German sociologist, developed the concept of

bureaucratic management.
• Bureaucracy refers to an idealized organizational structure characterized by
clearly defined roles, formalized procedures, and hierarchical authority.
• Bureaucratic principles have been applied in government agencies, large
corporations, and other complex organizations.
 BUREAUCRATIC MANAGEMENT(MAX WEBER)
• A formal hierarchical structure – In a bureaucratic organization, each level controls the level
below it. Also, the level above it controls it. A formal hierarchy is the basis of central planning
and centralized decision-making.
• Rules-based Management – The organization uses rules to exert control. Therefore, the lower
levels seamlessly execute the decisions made at higher levels.
• Functional Specialty organization – Specialists do the work. Also, the organization divides
employees into units based on the type of work they do or the skills they possess.
• Up-focused or In-focused Mission – If the mission of the organization is to serve the
stockholders, board, or any other agency that empowered it, then it is up-focused. On the other
hand, if the mission is to serve the organization itself and those within it (like generating profits,
etc.), then it is in-focused.
• Impersonal – Bureaucratic organizations treat all employees equally. They also treat all
customers equally and do not allow individual differences to influence them.
• Employment-based on Technical Qualifications – Selection as well as the promotion of
employees is based on technical qualifications and skills.
BUREAUCRATIC MANAGEMENT CHALLENGES
● The rules are inflexible and rigid. Further, there is too much emphasis on these rules
and regulations.
● Informal groups do not receive any importance. In current times, informal groups
play a huge role in most business organizations.
● Typically, bureaucracy involves a lot of paperwork which leads to a waste of time,
money, and also effort.
● The rules and formalities lead to an unnecessary delay in the decision-making process.
● While Government organizations can benefit from a bureaucratic structure, business
organization need quick decision-making and flexibility in procedures. Therefore, it is
not suitable for the latter.
● While the technical qualifications of the employee is an important aspect of his
promotion, a bureaucratic organization does not consider the employee’s
commitment and dedication.
 NEO-CLASSICAL MANAGEMENT ERA
1. HUMAN RELATIONS APPROACH

Contributors- Elton Mayo and his group of researchers.

1927-1932, Harvard business school, Hawthorne works of western electric

company, Chicago.

Hawthorne study comprised of

a. Illumination Experiments- No relation between factory lighting and

productivity.

b. Relay assembly test room experiments- No strong correlation between change

in rest time and productivity.

c. Mass interview programme- Talk about informal group.

d. Bank wiring room experiments- Existence of strong informal group.

 1. Illumination Experiments:

● Ill umination experiments were undertaken to find out how varying levels of illumination (amount of
light at the workplace, a physical factor) affected the productivity. The hypothesis was that with higher
illumination, productivity will increase. In the first series of experiments, a group of workers was
chosen and placed in two separate groups. One group was exposed to varying intensities of
illumination.
● Since this group was subjected to experimental changes, it was termed as experimental group.
Another group, called as control group, continued to work under constant intensities of illumination.
The researchers found that as they increased the illumination in the experimental group, both groups
increased production. When the intensity of illumination decreased, the production continued to
increase in both the groups.
● The production in the experimental group decreased only when the illumination was decreased to the
level of moonlight. The decrease was due to light falling much below the normal level.

Thus, it was concluded that illumination did not have any effect on productivity but something else was
interfering with the productivity. At that time, it was concluded that human factor was important in
determining productivity but which aspect was affecting, it was not sure. Therefore, another phase of
experiments was undertaken.
 2. Relay Assembly Test Room Experiments:

● This phase aimed at knowing not only the impact of illumination on production but also other
factors like length of the working day, rest hours, and other physical conditions. In this experiment,
a small homogeneous work-group of six girls was constituted. These girls were friendly to each
other and were asked to work in a very informal atmosphere under the supervision of a researcher.
● Productivity and morale increased considerably during the period of the experiment. Productivity
went on increasing and stabilized at a high level even when all the improvements were taken away
and the pre-test conditions were reintroduced.

The researchers concluded that socio-psychological factors such as feeling of being important,
recognition, attention, participation, cohesive work-group, and non-directive supervision held the
key for higher productivity.
3. Mass Interviewing Programme:

● The objective of this programme was to make a systematic study of the employees attitudes which
would reveal the meaning which their “working situation” has for them.

● The researchers interviewed a large number of workers with regard to their opinions on work, working
conditions and supervision. Initially, a direct approach was used whereby interviews asked questions
considered important by managers and researchers. The researchers observed that the replies of the
workmen were guarded. Therefore, this approach was replaced by an indirect technique, where the
interviewer simply listened to what the workmen had to say.

The findings confirmed the importance of social factors at work in the total work environment.
4. Bank Wiring Observation Room Experiment:

● These experiments were conducted to find out the impact of small groups on the individuals. In this
experiment, a group of 14 male workers were formed into a small work group. The men were
engaged in the assembly of terminal banks for the use in telephone exchanges.
● The work involved attaching wire with switches for certain equipment used in telephone exchanges.
Hourly wage for each worker was fixed on the basis of average output of each worker. Bonus as also
payable on the basis of group effort.
● It was expected that highly efficient workers would bring pressure on less efficient workers to
increase output and take advantage of group incentive plan. However, the strategy did not work and
workers established their own standard of output and this was enforced vigorously by various
methods of social pressure. The workers cited various reasons for this behaviour viz. fear of
unemployment, fear of increase in output, desire to protect slow workers etc.

The Hawthorne experiments clearly showed that a man at work is motivated by more than the
satisfaction of economic needs. Management should recognise that people are essentially social beings
and not merely economic beings. As a social being, they are members of a group and the management
should try to understand group attitudes and group psychology.
 BEHAVIOURAL SCIENCE APPROACH

• The behavioral approach, also known as the behavioral science approach,

focuses on studying human behavior within organization's and aims to
establish scientifically verifiable propositions for understanding this
behavior.

• It heavily draws concepts from psychology and sociology to analyze

various aspects of organizational behavior.

• The core elements of the behavioral science approach include motivation,

leadership, communication, group dynamics, and participative management.
These aspects are considered crucial in understanding and managing
human behavior within organizations.
 BEHAVIOURAL SCIENCE APPROACH
1.An organization is a socio-technical system: This recognizes that organisations
consist of both social (human) and technical (tools, processes) elements that interact
and influence behaviour.
2.Interpersonal and group behaviour is influenced by a wide range of factors: The
behaviour of individuals and groups in an organisation is affected by numerous factors,
including social, psychological, and organisational aspects.
3.Fusion between organizational goals and needs: There should be a harmonious
alignment between the goals and needs of individuals and the organisation for optimal
performance and effectiveness.
4.Differences in attitudes, perceptions, and values: Employees possess different
attitudes, perceptions, and values that influence their behaviour and performance
within the organisation.
5.Inevitability and desirability of conflict: Some degree of conflict is seen as inevitable
and even beneficial in organisations, as it can lead to improved decision-making and

innovation.
 MODERN MANAGEMENT ERA
1. QUANTITATIVE MANAGEMENT

Also known as Management Science or Operations Research.

Focuses on application of scientific tools providing a quantitative base for

decision making to managers.

Quantitative management utilises the techniques given by following

disciplines-

A. Management Science- Critical path method (CPM), Probability, Sampling

theory etc.

B. Operations management- Production activities and logistic related. E.g-

Statistical quality control, Production planning, Replacement of machinery etc.

C. Management Information System (MIS)- Use of computer to process raw

information suitable for decision making.
 2. SYSTEMS MANAGEMENT
• It says that most units within an organization interact with each other and therefore
dependent on each other.

TRANSFORMATION
INPUT OUTPUT
PROCESS
Employees work

Management Product and

Raw Material
Human resource activities Services
Technology Financial Result
Information Technology and
Capital Operations Human Result
method
 3. Contingency Management
• Believes that Management is dependent on environment.

• Managers under this approach won’t prescribe a standard solution rather will ask
questions- Which method will be most appropriate under given situation?

• It uses the synthesis of classic, neo classical and system approach as per
requirement.

• Contributors- Mary Parker Follett, Fiedler’s Contingency model, House Path goal
theory etc.
Modern Management Approach Peter Drucker's Dimensions of Management

Peter Drucker is considered the father of modern management, and his work has had a
significant impact on management theory and practice. Drucker's dimensions of
management provide a comprehensive framework for understanding the various aspects
of management.
1. Managing oneself: This involves developing self-awareness, identifying one's strengths
and weaknesses, and setting personal goals.
2. Managing others: This involves creating a work environment that fosters collaboration
and teamwork, delegating responsibilities, and providing feedback and support to
employees.
3. Managing information: This involves collecting and analyzing data, staying informed
about industry trends and best practices, and using technology to streamline
operations.
4. Managing change: This involves being proactive in identifying and addressing potential
challenges and opportunities, adapting to changing market conditions, and promoting
a culture of innovation and continuous improvement.
5. Managing the social impact: This involves considering the impact of the organization
on society and the environment, promoting corporate social responsibility, and
engaging with stakeholders.
 Indian ethos in management
• The Indian ethos in management concept refers to the principles and values
that guide management practices in India, which are deeply rooted in the
country's ancient cultural and spiritual traditions.

• This concept is based on the idea that management is not just about
maximizing profits or achieving targets, but also about achieving a sense of
harmony and balance in the workplace and in society at large.
 Key elements of Indian ethos in management
1. Holistic approach: Indian management philosophy emphasizes a holistic
approach to management that considers the impact of business decisions on
all stakeholders, including employees, customers, society, and the
environment.
2. Values-driven: Indian ethos in management is driven by a set of core values,
such as integrity, compassion, and respect for others, which guide
decision-making and behavior.
3. Self-awareness: Indian management emphasizes the importance of
self-awareness and self-development, recognizing that the success of the
organization is closely linked to the personal growth and development of its
employees.
4. Collaboration: Indian management values collaboration and teamwork,
encouraging employees to work together to achieve common goals.
5. Spirituality: Indian management is influenced by the country's spiritual
traditions, which emphasize the importance of inner growth,
self-transformation, and a sense of purpose beyond material success.
 Significance of Indian ethos in management
• The significance of Indian ethos in management lies in its potential to create a
more sustainable and ethical approach to business that benefits all
stakeholders.

• By placing values such as social responsibility, environmental sustainability,

and employee well-being at the center of management practices, Indian ethos
in management can help to create a more balanced and harmonious
workplace that is aligned with the needs of society and the planet.

• This can lead to long-term success for organizations and a more prosperous
and equitable society overall.