BASIC

CONCEPTS of
MANAGEMENT

Aline Aprille Capuchino-Mendez

Introduction

Management is an important
The management adapts the
element in every
organization to its
organization. It is the element
environment and shapes the
that coordinates currents
organization to make it more
organizational activities and
suitable to the organization.
plans for the future.
Definition

– “Management is the art of “knowing what you

want to do” and then seeing that it is done in
the best and cheapest way.
……F.W.Taylor
– Management as a process “consisting of
planning, organizing, actuating and controlling,
performed to determine and accomplish the
objective by the use of people and resources.”
……George R. Terry
In this definition

Planning means Plan in advance.

Organizing means coordination between human
resources and material resources.
Actuating means motivation and giving direction
to subordinate.
Controlling means to ensure about
implementation of plan without deviation.
Thus this definition tells that management is act
of achieving the organization objectives.
MANAGEMENT FUNCTIONS OR
THE PROCESS OF MANAGEMENT

Planning, Organizing, Leading & Controlling (Newman & Summer)

Planning, Organizing, Commanding, Coordinating and

Controlling (Henri Fayol)

‘POSDCORB’: Planning, Organizing, Staffing, Directing,

Coordinating, Reporting & Budgeting (Luther Gulick)

Decision Making, Organizing, Staffing, Planning, Controlling,

Communicating & Directing (Warren Haynes & Joseph Massie)

Planning, Organizing, staffing, directing & Controlling (Koontz

O’Donnell)
Functions of Management

Planning:- It is a process of deciding the

business objectives and charting out the plan/
This function expected to be carried out
method for achieving the same. This includes
throughout the organization. It should be
determination of what is to be done, how, and
performed by the manager at all levels.
where it is to be done, who will do it and how
result are to be evaluated.
Organizing

According to Allen, the organizing refers to To organize a business is to provide it with Once objectives are established, manager
“ the structured which results from everything useful to its functioning i.e. has to develop plan to achieve them with
identifying and grouping the work, personnel, raw materials, machineries, help of human resources as well as
defining and delegating responsibility and capital etc. material resources.
authority and establishing relationships.”
Directing

– Directing involves communication, leadership

and motivation.
Communication is the process of passing the
information and understanding it from one
person to other person.
Leadership is the function whereby the person or
manager guides and influences the work of his
subordinates.
Motivation is to motivate the employee to give
their best to the organization.
 2. Measuring current
1. Establishing
performance and
standards of
comparing it against the
performance.
established standard. Controlling

3. Taking corrective Control compels the

action that does not events to confirm to
meet the standard. plans.
Innovation and Representation

– These are also two important additional

managerial functions.
– Innovation means crating new ideas which
may either result in the development of new
products or finding new uses for older ones. It
is necessary to grow better.
– The manger has to represent himself for the
organization. A manger must win support
effectively from different groups (either
internal or external).
IMPORTANCE OF MANGEMENT

Management is essential Management is the

Management is critical
in all organized effort, be dynamic, life giving
element in the critical
it business activity or any element in every
growth of the country.
other activity. organization.
LOWER LEVEL (FIRST LINE): FOREMEN & WHITE
COLLAR SUPERVISOR

MIDDLE MANAGEMENT: SALES MANAGERS,

PERSONNEL MANAGERS, OTHER DEPARTMENTAL
HEADS LEVELS OF
MANAGEMENT

TOP MANAGEMENT: COMPANY PRESIDENTS,

EXECUTIVES, VICE PRESIDENTS
 MANAGERIAL SKILLS

Top Conceptual
Management Skills

Middle Human
Management Relation Skill

Supervisory Technical
Level Skills
 The need to study management
arose with the industrial revolution
in Europe (more specifically,
England).

The industrial revolution and the Evolution of

systematic study of management
are the result of a remarkable Management
confluence of ideas and events.
Thought
Management and organizations are
products of their historical and
social times and places.
SCIENTIFIC MANAGEMENT
THEORY

Taylor based his management

Frederick W. Taylor, Henry L. system on production-line time
Gantt, and Frank and Lillian studies. Using time study as his
Gilbreth devised the body of base, he broke each job down into
principles known as scientific its components and designed the
management theory. quickest and best methods of
performing each component.
 He also encouraged
employers to pay more
productive workers at a
This system is called Gantt originated a
higher rate than others,
Differential Rate charting system for
using a "scientifically
System production scheduling.
correct" rate that would
benefit both company
and worker.
 Frank B. and Lillian M. Gilbreth
Every worker's progress was rated collaborated on fatigue and motion
publicly and recorded on individual studies and focused on ways of
bar charts,--in black on days the promoting the individual worker's
worker made the standard, in red welfare. To them, the ultimate aim of
when he or she fell below it. Going scientific management was to help
beyond this. workers reach their full potential as
human beings.
The modem assembly line pours out finished products
faster than Taylor could ever have imagined. This
production "miracle" is the gift of scientific
management. CONTRIBUTIONS
OF SCIENTIFIC
MANAGEMENT
THEORY

In addition, its efficiency techniques have been applied

to many tasks in non-industrial organizations, ranging
from fast-food service to the training of surgeons.
Taylor's system clearly meant that time was of the
essence. His critics objected to the "speed up"
conditions that placed undue pressures on
employees to perform at faster and faster levels. LIMITATIONS
OF SCIENTIFIC
MANAGEMENT
The emphasis on productivity—and, by extension, THEORY
profitability—led some managers to exploit both
workers and customers. This condition created
mistrust / suspicious relationship between labour
and supervisor or management.
Classical organization theory concerned about
the need to find guidelines for managing
complex organizations such as factories.

Henri Fayol is the founder of the classical CLASSICAL

management theory. ORGANIZATION
THEORY
Fayol believed that sound management practice
falls into certain patters that can be identified
and analyzed.

Fayol was interested in the Total Organization

and focused on management, which he felt had
been the most neglected of business operations.
Fayol’s 14 Principles of
Management

Division of Labor Authority Discipline Unity of Command Unity of Direction

Subordination of
Individual Interest
Remuneration Centralization The Hierarchy Order
to the Common
Good

Equity Stability of Staff Initiative Espirit de Corps

Contribution of Classical
Management Theory
– Before Fayol, it was generally believed that "managers are
born, not made."
– Fayol however, said that management was a skill like any
other--one that could be taught once its underlying
principles were understood.
– It identified key management processes, functions and
skills.
– It focused attention on management as a valid subject of
scientific study.
– It lead foundation for latter developments in management
theory.
Limitations of Classical Theory

– This theory is more applicable for stable and

simple organizations than today’s complex and
dynamic organizations.
– This theory treats employees as a elements
rather than resources.
– The procedure governed by this theory may
not be applicable in certain situation.
 This theory puts more emphasis on
individual’s attitudes, behaviours and on the
group processes. In this approach of
management human factor remain central
focus.

Behavioural
This approach can be studied into two phases Management
a. Human Relation Movement b. Behavioural
Science Approach Theory
Neo Classical
Theory
Major contributors to this approach were
Elton Mayo, Abraham Maslow and Dugulas
Mcgregor
Human Relation Movement

When "employee management"

Human relations is frequently used as stimulates more and better work, the
a general term to describe the ways in organization has effective human
which managers interact with their relations; when morale and efficiency
employees. deteriorate, its human relations are
said to be ineffective.

The human relations movement arose This approach aims at providing high
from early attempts to systematically degree of satisfaction and motivation
discover the social and psychological through improved working conditions,
factors that would create effective style of supervision and sense of
human relations. security.
Contribution of Human Relation
Movement

This movement thrown light on, an There is no correlation between improved The informal group and not the individual
employee doesn’t work always for money working conditions and high production. is the dominant unit of analysis in
only. Non financial rewards also organizations.
significantly affects the beheviour of the
employee.
Limitation of the Human
Relations Movement
– This approach over-emphasizes on symbolic rewards and
underplays the role of material rewards.
– This approach gives more importance to informal groups by
describing them as a major sources of satisfaction for
individual workers.
– This approach is based on the assumption that satisfied
workers are more productive workers. Attempts to increase
output by improving working conditions and the human
relation skills of manager.
Behavioral Science Approach

Douglas Mcgregor,
Abraham Maslow, Kurt
Lewin, Chester Barnard,
This approach
This approach is an Merry Follett etc. are
recognizes the practical
improved version of the some of the foremost
and situational
human relations behaviourial scientists
constraints on human
approach to who made significant
rationality for making
management. contributions to the
optimal decisions.
development of the
behaviourial approach
to the management.
 To behevioural
scientists, the
realistic model of
It recognizes that
conflict is inevitable
Contd…
human motivation The organization
and even
is complex man. It considered as a
sometimes
suggest that groups of
desirable and
different people individuals with
should be faced
react differently to certain goals.
with understanding
same situation or
and determination.
react same way to
different situations.
It provides important insights into
motivation, leadership, group dynamics and
other interpersonal process in
organizations.

Contribution
This theory challenged the view that of Behavioural
employees are tools instead employees are
valuable resources. Management
Theory

Focused managerial attention on employee

related process.
Many bevioural concept couldn’t be
applied in organizational processes
because of manager reluctance.

Limitations of
The complex human nature cann’t Behavioural
be predicted. Management
Theory
The findings of behviuoral science
often could not be communicated to
the practicing manager in an
understandable manner.
System Approach

This approach is aimed at identifying the nature of relationship

among various components of the organization which is considered
as larger system.
Chester Barnard, George Homans, Herbert Simon etc. are the
contributors in System Approach.

This approach gives managers a way of looking at the organization as

a whole and as a part of the larger, external environment.
Contd…

– Systems theory tells us that the activity of any

segment of an organization affects, in varying
degrees, the activity of every other segment.
– It calls attention to the dynamic and interrelated
nature of organizations and the management
task.
– It provides a framework within which we can
plan actions and anticipate both immediate and
far-reaching consequences while allowing us to
understand unanticipated consequences as they
develop.
Key concepts of System Approach

Central to the System Approach is

the concept of “holism” – Means no
A system is a set of interdependent
part of the system can be accurately
parts – An organization is a system
analyzed and understood apart from
composed of four interdependent
whole system. Conversely the whole
parts i.e. task, structure, people and
system cannot be accurately
technology.
perceived without understanding all
its parts.
Contd…

1 2 3
Synergy – It means that as A system can be either open or Every system has a boundary -
separate departments within an closed – An open system interact Each system has a boundary that
organization cooperate and with its environment. A closed separates it from its
interact, they become more system is independent of the environment. In a closed system,
productive than if each were to environment. the system boundary is rigid; in
act in isolation. an open system, the boundary is
more flexible.
Contd…

Flow - A system has flows of information,

materials, and energy (including human Feedback - Feedback is the key to system
energy). These enter the system from the controls. As operations of the system
environment as inputs (raw materials, for proceed, information is fed back to the
example), undergo transformation appropriate people, and perhaps to a
processes within the system (operations computer, so that the work can be assessed
that alter them), and exit the system as and, if necessary, corrected.
outputs (goods and services).
Contribution of System Approach

– System theory calls attention to the dynamic and

interrelated nature of organizations and the
management task. Thus, it provides a framework
within which we can plan actions and anticipate
both immediate and far-reaching consequences
while allowing us to understand unanticipated
consequences as they develop.
– With a systems perspective, general managers
can more easily maintain a balance between the
needs of the various parts of the enterprise and
the needs and goals the whole firm.
Limitations of System Approach

According to some experts, The system Approach neither

system approach is purely offers any tools or technique for
theoretical, conceptual and analysis nor it recognizes the
abstract. It can can’t be applied differences which exists between
successfully to practical situation. the systems.
Contingency Approach

According to the contingency approach the manager's task is to Methods and techniques which are highly effective in one
Identify which technique will, in a particular situation, under situation may not work in other situations. Results differs with
particular circumstances, and at particular time, best situational difference.
contribute to the attainment of management goals.
Contribution of Contingency
Approach
– Contingency views are applicable in designing
organizational structure, in deciding the
degree of centralization and decentralization,
in planning information decision system, in
motivational and leadership approaches, in
establishing communication and control
systems, in resolving conflicts and managing
change, in employee development and
training programmes etc.
Limitation of Contingency
Approach
– It compromise between system approach and
situational factors.
– It is totally practical approach without support
of theoretical and conceptual frame work.
– Some time manager finds difficulties in
analyzing the situation and discovering
appropriate management technique in
absence of proper research and understanding
behaviour of the situation.