PERSPECTIVE

MANAGEMENT
-VAIBHAVI A OAK
1-INTRODUCTION TO
MANAGEMENT & ITS
EVOLUTION
 NATURE OF
MANAGEMENT
3
 ACCORDING TO PETER F.
DRUCKER, THE EMERGENCE OF
MANAGEMENT AS AN
ESSENTIAL, A DISTINCT AND
LEADING SOCIAL INSTITUTION IS
A PIVOTAL EVENT IN SOCIAL
4
MANAGEMENT IS AN ART
IT IS IN THE SENSE OF
POSSESSING MANAGING
SKILL BY AN INDIVIDUAL
5
MANAGEMENT IS SCIENCE TOO
IT INVOLVES DEVELOPING
CERTAIN PERSPECTIVE OR LAWS
APPLICABLE IN A PLACE
WHERE A GROUP OF ACTIVITIES
ARE COORDINATED 6
ACCORDING TO RALPH C.
DAVIS, MANAGEMENT IS
THE FUNCTION OF
EXECUTIVE LEADERSHIP
EVERYWHERE 7
APPLICATION OF MANAGEMENT
INTO ACTION IN YOUR LIFE AS
WELL AS ON YOUR WORKPLACE
EVERY DAY AND CORRELATING
THESE PERSPECTIVE WITH YOUR
PERSONAL LIFE SITUATIONS IS
CALLED INTERNALIZATION8
MANAGEMENT INVOLVES A SET OF
PROCESSES THAT COME INTO PLAY
WHENEVER WE WANT TO ACHIEVE
SOMETHING:
THAT IS, OUR PRESET GOAL BY
THINKING PROCESS AND UTILIZING
THE INPUTS SUCH AS MAN, MACHINE,
MATERIALS, MONEY ETC. IN A
COORDINATED FASHION 9
 WHILE DOING THIS, DUE TO LACK OF
SYSTEMATIC APPROACH, MANY TIMES, WE ARE
IN A CHAOTIC SITUATION

10
MANAGEMENT IS THE ART
OF GETTING THINGS DONE
BY A GROUP OF PEOPLE
WITH THE EFFECTIVE
UTILIZATION
OF AVAILABLE RESOURCES
11
MANAGEMENT IS THE GROUP OF
ACTIVITIES, WHICH DRAFTS PLANS,
•PREPARES POLICIES, AND
•ARRANGES MEN, MONEY, MACHINES
AND MATERIALS
•REQUIRED TO ACHIEVE THE 12

OBJECTIVES
 MANAGEMENT IS THE
ACTIVITY OF MAN WHO
STRUGGLES FOR BETTER
LIVING IN THE COMPLEX AND
COMPETITIVE WORLD 13
 MANAGEMENT IS AN
ORGANIZED EFFORT OF
PEOPLE WHOSE PURPOSE IS
TO ACHIEVE THE
OBJECTIVES AND GOALS OF
AN ORGANIZATION 14
F.W.TAYLOR

15
ACCORDING TO F.W.TAYLOR,
MANAGEMENT IS THE ART
OF KNOWING WHAT YOU
WANT TO DO, AND THEN
SEEING THAT IT IS DONE IN
THE BEST AND THE
CHEAPEST WAY 16
HENRY FAYOL

17
 ACCORDING TO HENRY
FAYOL, TO MANAGE IS TO
FORECAST AND TO PLAN, TO
ORGANIZE, TO COMMAND,
TO COORDINATE AND TO
CONTROL
18
MANAGEMENT IS:
OPTIMUM UTILIZATION OF
AVAILABLE RESOURCES IN
ORDER TO ATTAIN
CERTAIN PRE-SET
GOALS/OBJECTIVES 19
OPTIMUM UTILIZATION
MEANS:
BEST POSSIBLE
UTILIZATION UNDER
GIVEN CIRCUMSTANCES 20
 MANAGEMENT AS A
“PROCESS”
MCFARLAND DEFINES
MANAGEMENT AS
“A PROCESS BY WHICH MANAGERS
CREATE, DIRECT, MAINTAIN AND
OPERATE PURPOSIVE 21

ORGANIZATION THROUGH:
 THE TERM PROCESS
EMPHASIZES THE
DYNAMIC
OR ONGOING NATURE OF
MANAGEMENT, AN
22

ACTIVITY OVER VARYING

 THE DYNAMIC NATURE
IMPLIES THAT CHANGE IS
REALITY OF
ORGANIZATIONAL LIFE23
 BUSINESSES FAIL AND
BECOME BANKRUPT
BECAUSE MANAGERS FAIL IN
THEIR ATTEMPT TO COPE
WITH THE CHANGE 24
 MANAGEMENT AS
“COORDINATION”
DONALLY, GIBSON AND IVANCEVICH
ALSO SUPPORT THE VIEW OF
MANAGEMENT AS A PROCESS
BUT THEIR STRESS IN MORE ON
CO-ORDINATION.
25
 MANAGEMENT AS A “FUNCTION”
DUNN, STEPHENS AND KELLY SAY THAT:
“MANAGEMENT IS A ROLE WHICH
INCLUDES A SET OF DUTIES,
RESPONSIBILITIES, AND RELATIONSHIPS-
INVOLVED IN WORK ORGANIZATIONS”.
THESE DUTIES AND RESPONSIBILITIES
CONSTITUTE THE FUNCTION A MANAGER
PERFORMS 26
MANAGEMENT IS GETTING
THINGS DONE THROUGH
OTHER PEOPLE.

EFFICIENT MANAGEMENT IS
THE LIFEBOAT OF ANY
27

DEVELOPED BUSINESS
THERE ARE FIVE M’S IN THE
BUSINESS, WHICH CAN BE
CALLED AS THE RESOURCES
OF THE BUSINESS:
1. MAN:
AVAILABILITY OF QUALIFIED, TRAINED,
SKILLED, EXPERIENCED AND
COMPETENT PEOPLE IS THE MOST 28

IMPORTANT FACTOR IN ANY

THERE ARE FIVE M’S IN THE
BUSINESS, WHICH CAN BE
CALLED AS THE RESOURCES
OF THE BUSINESS:
2. MACHINES
AVAILABILITY OF CAPABLE MACHINES
AND EQUIPMENT IS A MUST TO DO THE
29

THINGS IN THE BEST AND THE

 THERE ARE FIVE M’S IN THE
BUSINESS, WHICH CAN BE
CALLED AS THE RESOURCES OF
THE BUSINESS:
3. MATERIALS:
QUALITY, QUANTITY, AVAILABILITY,
COST/MARKET PRICE AND
TRANSPORTATION OF RAW MATERIALS,30

SEMI-FINISHED GOODS AND FINISHED

 THERE ARE FIVE M’S IN THE
BUSINESS, WHICH CAN BE
CALLED AS THE RESOURCES OF
THE BUSINESS:
4. MONEY:
AVAILABILITY OF FUNDS FOR RUNNING
THE BUSINESS IS EXTREMELY IMPORTANT
PARTICULARLY FOR PROCURING CAPITAL
31

GOODS, RAW MATERIALS, TOOLS AND

 THERE ARE FIVE M’S IN THE
BUSINESS, WHICH CAN BE
CALLED AS THE RESOURCES OF
THE BUSINESS:
5. METHODS:
IF WE HAVE TO DO THINGS IN THE BEST
AND CHEAPEST WAY, IT IS ALSO
IMPORTANT HOW THE THINGS ARE 32

PROCESSED. THAT IS, BY WHICH METHOD

 METHODS FORM THE
COMPETITIVE EDGE:
•THE PROPER METHOD WILL
ENSURE REQUIRED QUALITY,
QUANTITY AND IN-TIME
DELIVERY IT WILL ENSURE THE
ACCOMPLISHMENT OF 33

MANAGEMENT OBJECTIVES
 MANAGEMENT IS AN
ESSENTIAL ACTIVITY OF ALL
ORGANIZATIONAL LEVELS
LOWER, MIDDLE AND
UPPER LEVEL
 
34
 MANAGEMENT APPLIES TO:
•SMALL AND LARGE ORGANIZATIONS
•PROFIT AND NONPROFIT
ORGANIZATIONS
•MANUFACTURING ORGANIZATIONS
•SERVICE RENDERING ORGANIZATIONS
35
 IF YOU ARE A PERSON WHO IS:
•CAPABLE OF UNDERTAKING THE TASKS
AND FUNCTIONS OF MANAGING AT ANY
LEVEL, IN ANY KIND OF ENTERPRISE;
YOU HAVE LEADERSHIP QUALITIES; AND
YOU HAVE QUALITIES OF AN
ADMINISTRATOR;
YOU WILL BECOME A GOOD MANAGER
36
A GOOD MANAGER IS EXPECTED TO
HAVE ABILITY OF FOUR SKILLS AS
GIVEN BELOW:  
•TECHNICAL SKILLS
•HUMAN SKILLS
•CONCEPT SKILLS
•ABILITY TO SOLVE PROBLEMS
37
• ANY ENDEAVOR STARTS
WITH END PURPOSE, I.E.
“GOAL”
• WHEN GOAL IS SET, STEPS
TOWARDS GOAL ALSO
BECOME CLEAR .
• ONE CAN BECOME 38
HOWEVER, THE GOALS
MUST BE
S-M-A-R-T
--------------------------------
SPECIFIC:
WE SHOULD BE SPECIFIC IN OUR 39
 HOWEVER, THE GOALS
MUST BE
S-M-A-R-T
--------------------------------
MEASURABLE:
THE GOAL MUST BE MEASURABLE. 40

E.G., I WANT TO SECURE 95% MARKS.

HOWEVER, THE GOALS MUST
BE
S-M-A-R-T
----------------------------
ACHIEVABLE
OUR RESOURCES ARE LIMITED. WE
41

NEED TO PLAN AROUND THE

HOWEVER, THE GOALS
MUST BE
S-M-A-R-T :
--------------------------------
REALISTIC:
THE GOAL MUST BE REALISTIC.
42
 HOWEVER, THE GOALS
MUST BE
S-M-A-R-T
-------------------------
TIME BOUND:
YOUR GOAL SHOULD HAVE A TIME 43
F.W.TAYLOR-
THE FATHER
OF SCIENTIFIC
MANAGEMENT.

44
 IMPORTANCE OF LEARNING SCIENTIFIC
MANAGEMENT LED BY THE WORK OF
F.W.TAYLOR

•IT IS SYSTEMATIC APPROACH OF

ACHIEVING GOALS THROUGH CHECKS
AND CONTROLS.
•IT FACILITATES FOCUSED, BALANCED
45

APPROACH IN RUNNING BUSINESSES.

 IMPORTANCE OF LEARNING SCIENTIFIC
MANAGEMENT LED BY THE WORK OF
F.W.TAYLOR
•THE INDIVIDUAL THINKING AND PROBLEM
SOLVING PROCESSES ARE ENHANCED.
•IT FACILITATES CONVERSION OF CHAOS
INTO CLARITY.
•ON THE PERSONAL FRONT, IT REDUCES
46

STRESS AND PROMOTES SELF-GROWTH.

 SCIENTIFIC MANAGEMENT CONSISTS OF A
CERTAIN PHILOSOPHY OF:
•SCIENTIFIC SELECTION AND TRAINING OF
RIGHT WORKERS FOR THE RIGHT JOB
•PROVIDING ADEQUATE WORKING
CONDITIONS SUCH AS LIGHTING,
VENTILATION, DRINKING WATER, CANTEEN,
SANITATION, REST ROOMS, REST PERIODS.
47
 SCIENTIFIC MANAGEMENT CONSISTS OF A
CERTAIN PHILOSOPHY OF:

PROVIDING A SYSTEM OF MONETARY

INCENTIVES TO EFFICIENT WORKERS.
ASSUMPTION OF RESPONSIBILITIES BY
MANAGERS AND SUPERVISORS.

48
F.W.TAYLOR DEFINED SCIENTIFIC MANAGEMENT AS:

“SUBSTITUTION OF
EXACT SCIENTIFIC INVESTIGATIONS
AND KNOWLEDGE
FOR OLD JUDGMENT OR OPINION
IN ALL MATTERS OF WORK DONE”.
49
 F.W.TAYLOR FIRMLY BELIEVED THAT
OBJECTIVE OF MANAGEMENT SHOULD BE:
•MAXIMUM PROSPERITY FOR THE EMPLOYER:
LOWER COSTS AND HIGH RETURNS
•MAXIMUM PROSPERITY FOR EACH
EMPLOYEE: FAIR AS WELL AS HIGHER WAGES

50
 PERSPECTIVE OF SCIENTIFIC
MANAGEMENT:
A. SCIENCE-NOT RULE OF THUMB
• REPLACEMENT OF OLD METHOD BY
DOING WORK SCIENTIFICALLY
• FAIR WORK TO EACH WORKER
• STANDARDIZATION IN WORK
• DIFFERENTIAL PIECE RATE OF
PAYMENT SYSTEM
51
 PERSPECTIVE OF SCIENTIFIC
MANAGEMENT:
B. HARMONY IN GROUP ACTION
• PEACE AND FRIENDSHIP
• DISSATISFACTION TO BE
AVOIDED
52
 PERSPECTIVE OF SCIENTIFIC
MANAGEMENT:
C. COOPERATION BETWEEN
MANAGEMENT AND WORKERS AND
VICE VERSA
D. MAXIMUM OUTPUT
• BY DIVISION OF WORK
• BY ASSUMPTION OF 53

RESPONSIBILITY JOINTLY BY
 PERSPECTIVE OF SCIENTIFIC
MANAGEMENT:
E. IMPROVEMENT OF WORKERS
• SCIENTIFIC SELECTION OF
WORKERS: FINDING OUT
PHYSICAL, EDUCATIONAL AND
PSYCHOLOGICAL REQUIREMENTS
OF EACH JOB AND FIND SUITABLE
PERSONS FOR EACH JOB 54

• WORKERS ARE PROVIDED WITH

 HENRI FAYOL
– FATHER OF
MODERN
MANAGEMEN
T THEORY
55
HENRI FAYOL CLASSIFIED ALL THE BUSINESS
ACTIVITIES INTO SIX FUNCTIONS:
1.TECHNICAL ACTIVITIES RELATING TO
PRODUCTION
2.COMMERCIAL ACTIVITIES RELATING TO
PURCHASE OF BASIC RAW MATERIALS AND
OTHER RESOURCES, SELLING OF PRODUCTS
AND EXCHANGE
3. FINANCIAL ACTIVITIES RELATING TO
56

IDENTIFICATION AND UTILIZATION OF

 HENRI FAYOL CLASSIFIED ALL THE BUSINESS
ACTIVITIES INTO SIX FUNCTIONS:
4. SECURITY ACTIVITIES RELATING TO THE STEPS
TAKEN TO PROTECT THE PROPERTY OF
ENTERPRISE AND PERSONS.
5. ACCOUNTING ACTIVITIES RELATING TO THE
RECORDING AND MAINTAINING ACCOUNTS, STOCK
TAKING, AND PREPARATION OF COST SHEETS,
BALANCE SHEETS AND STATISTICAL DATA
6. MANAGERIAL ACTIVITIES RELATING TO
PLANNING, ORGANIZING, COMMANDING,
COORDINATING AND CONTROLLING 57

.
58
59
 14 PRINCIPLES OF
MANAGEMENT BY HENRI FAYOL:
•1.DIVISION OF WORK
•2.AUTHORITY AND RESPONSIBILITY
•3. DISCIPLINE
•4.UNITY OF COMMAND
•5. UNITY OF DIRECTION
60
• 14 PRINCIPLES OF MANAGEMENT BY
HENRI FAYOL:
• 6. SUBORDINATION OF INDIVIDUAL
INTEREST TO GROUP INTEREST
• 7. REMUNERATION- OF PERSONNEL
• 8. CENTRALIZATION- OR
DECENTRALIZATION OF AUTHORITY
• 9. SCALAR CHAIN
61
 14 PRINCIPLES OF MANAGEMENT
BY HENRI FAYOL:
•10. ORDER- THE PRINCIPLE OF RIGHT
PLACE FOR EVERYTHING AND FOR
EVERYONE
•11. EQUITY - COMBINATION OF
FAIRNESS, KINDNESS AND JUSTICE
•12. STABILITY OF TENURE OF 62

PERSONNEL: SECURITY OF JOB

• 14 PRINCIPLES OF MANAGEMENT BY
HENRI FAYOL:
• 13. INITIATIVE - ALL THE EMPLOYEES OF
THE ORGANIZATION ARE PUT TOGETHER AS A
TEAM IN ORDER TO ACHIEVE THE OBJECTIVES
OF THE ORGANIZATION. THE MANAGEMENT
SHOULD NOT FOLLOW THE POLICY OF DIVIDE
AND RULE.
• 14. ESPRIT DE CORPS
63
PETER F.DRUCKER

64
 DRUCKER COINED THE TERM
“KNOWLEDGE WORKER" AND
LATER IN HIS LIFE CONSIDERED
KNOWLEDGE WORKER
PRODUCTIVITY TO BE THE NEXT
FRONTIER OF MANAGEMENT 65
 CONTRIBUTIONS OF PETER
F.DRUCKER:

NATURE OF MANAGEMENT:
•NO BUREAUCRATIC MANAGEMENT
•EMPHASIZED MANAGEMENT WITH
CREATIVE AND INNOVATIVE 66

CHARACTERISTICS
 CONTRIBUTIONS OF PETER F. DRUCKER:

•BASIC OBJECTIVE OF MANAGEMENT :

INNOVATION. (DEVELOPMENT OF NEW IDEAS,
COMBINATION OF OLD AND NEW IDEAS,
ADAPTION OF IDEAS FROM OTHER FIELDS, TO
ENCOURAGE OTHERS TO CARRY OUT
INNOVATION)
•HE TREATED MANAGEMENT AS A DISCIPLINE
67

AS WELL AS A PROFESSION.
 CONTRIBUTIONS OF PETER F.
DRUCKER:

A MANAGER HAS TO DETERMINE THE

OBJECTIVES AND ACTIVITIES, AND IS
CONCERNED WITH THE DIRECTION
AND CONTROLLING OF THE
ACTIVITIES, TO MAKE CONTRIBUTIONS
FOR THE SPECIFIC PURPOSE AND 68

MISSION OF THE INSTITUTION

 CONTRIBUTIONS OF PETER
F.DRUCKER:
ORGANIZATION STRUCTURE:
AN EFFECTIVE ORGANIZATION
STRUCTURE IS FRAMED IN SUCH A WAY
THAT IT ENABLES SMOOTH
PERFORMANCE. IT CONTAINS MINIMUM
NUMBER OF MANAGERIAL LEVELS. IT
PROVIDES A CHANCE TO TEST THE 69

ABILITY OF YOUNG PEOPLE WHO ARE

 CONTRIBUTIONS OF PETER
F.DRUCKER:
CENTRALIZED CONTROL WITH A
STRUCTURE OF
DECENTRALIZATION:
SIMILAR TO THE FEDERAL STRUCTURE OF
GOVERNMENT, THE TOP MANAGEMENT HAS
MORE POWERS THAN VARIOUS
DEPARTMENTS. BUT THE DECISIONS
70
REGARDING THE DEPARTMENTS HAVE TO
 CONTRIBUTIONS OF PETER
F.DRUCKER:
MANAGEMENT BY OBJECTIVES: (MBO)

DRUCKER INTRODUCED THIS CONCEPT

IN 1954. METHOD OF PLANNING,
SETTING STANDARDS, PERFORMANCE
APPRAISAL AND MOTIVATION ARE THE
COMPONENTS OF MBO. IT GIVES
IMPORTANCE TO SELF CONTROL71

RATHER THAN CONTROL MADE BY

 CONTRIBUTIONS OF PETER
F.DRUCKER:
•DRUCKER VISUALIZED RAPID CHANGES IN
SOCIETY DUE TO RAPID TECHNOLOGICAL
DEVELOPMENT.
•HE REALIZED IMPACT OF SUCH CHANGES ON
HUMAN LIFE. HE STRESSED THAT HUMAN BEINGS
SHOULD DEVELOP AN ATTITUDE TO FACE THE
CHANGES BY DEVELOPING DYNAMIC
ORGANIZATIONS, BY ABSORBING RAPID CHANGES.
72
 GEORGE ELTON MAYO

•HE WAS THE FIRST PERSON TO LOOK INTO THE

MATTER OF HUMAN RELATIONS EMPHASIZING THE
IMPORTANCE OF DESIRES, ATTITUDES, AND FEELING
OF THE WORKERS.
•HE ALONG WITH HIS COLLEAGUES CONDUCTED
HAWTHORNE EXPERIMENTS, AN IMPORTANT
LANDMARK IN THE HISTORY OF THE HUMAN73
RELATIONS MOVEMENT.
 HAWTHORNE EXPERIMENTS
HAWTHORNE EXPERIMENTS WERE CONDUCTED AT THE
HAWTHORNE PLANT OF THE WESTERN ELECTRIC COMPANY IN
CHICAGO FROM 1924-1932, BY ELTON MAYO AND HIS
COLLEAGUES AND WERE PUBLISHED IN SIX VOLUMES VIZ.:
•THE HUMAN PROBLEMS OF INDUSTRIAL CIVILIZATION
•THE SOCIAL PROBLEMS OF INDUSTRIAL CIVILIZATION
•THE INDUSTRIAL WORKER
•LEADERSHIP IN A FREE SOCIETY
•MANAGEMENT AND WORKER 74

•MANAGEMENT AND MORALE

 ELTON MAYO AND HIS COLLEAGUES
CONDUCTED RESEARCHES IN FOUR
PHASES:
•1. ILLUMINATION EXPERIMENTS
•2. RELAY ASSEMBLY TEST ROOM
EXPERIMENT
•3. MASS INTERVIEWING PROGRAM
75

•4. BANK WIRING OBSERVATION ROOM

FINDINGS OF HAWTHORNE EXPERIMENTS:
1. SOCIAL UNIT:
A FACTORY IS NOT ONLY A TECHNO-ECONOMIC UNIT, BUT ALSO A SOCIAL
UNIT. MEN ARE SOCIAL BEINGS. THIS SOCIAL CHARACTERISTIC AT WORK
PLAYS AN IMPORTANT ROLE IN MOTIVATING PEOPLE. THE OUTPUT
INCREASED IN RELAY ROOM DUE TO EFFECTIVELY FUNCTIONING OF A
SOCIAL GROUP WITH A WARM RELATIONSHIP WITH ITS SUPERVISORS.
2. GROUP INFLUENCE:
THE WORKERS IN A GROUP DEVELOP A COMMON PSYCHOLOGICAL BOND
UNITING THEM AS GROUP IN THE FORM OF INFORMAL ORGANISATION. THEIR
BEHAVIOUR IS INFLUENCED BY THESE GROUPS. PRESSURE OF A GROUP,
RATHER THAN MANAGEMENT DEMANDS, FREQUENTLY HAS THE STRONGEST
INFLUENCE ON HOW PRODUCTIVE WORKERS WOULD BE.
3. GROUP BEHAVIOUR:
MANAGEMENT MUST UNDERSTAND THAT A TYPICAL GROUP BEHAVIOUR76 CAN

DOMINATE OR EVEN SUPERSEDE INDIVIDUAL PROPENSITIES.

 FINDINGS OF HAWTHORNE
4. MOTIVATION:
EXPERIMENTS:
HUMAN AND SOCIAL MOTIVATION CAN PLAY EVEN A
GREATER ROLE THAN MERE MONITORY INCENTIVES IN
MOVING OR MOTIVATING AND MANAGING EMPLOYEE
GROUP.
5. SUPERVISION:
THE STYLE OF SUPERVISION AFFECTS WORKER’S ATTITUDE
TO WORK AND HIS PRODUCTIVITY. A SUPERVISOR WHO IS
FRIENDLY WITH HIS WORKERS AND TAKES INTEREST IN
THEIR SOCIAL PROBLEMS CAN GET CO-OPERATION AND
BETTER RESULTS FROM THE SUBORDINATES.
6. WORKING CONDITIONS:
PRODUCTIVITY INCREASES AS A RESULT OF IMPROVED
WORKING CONDITIONS IN THE ORGANISATION.
77
 FINDINGS OF HAWTHORNE
7.EXPERIMENTS:
EMPLOYEE MORALE:
MAYO POINTED OUT THAT WORKERS WERE NOT SIMPLY
COGS, IN THE MACHINERY, INSTEAD THE EMPLOYEE MORALE
(BOTH INDIVIDUAL AND IN GROUPS) CAN HAVE PROFOUND
EFFECTS ON PRODUCTIVITY.
8. COMMUNICATION:
EXPERIMENTS HAVE SHOWN THAT THE OUTPUT INCREASES
WHEN WORKERS ARE EXPLAINED THE LOGIC BEHIND
VARIOUS DECISIONS AND THEIR PARTICIPATION IN DECISION
MAKING BRINGS BETTER RESULTS.
9. BALANCED APPROACH:
THE PROBLEMS OF WORKERS COULD NOT BE SOLVED BY
TAKING ONE FACTOR I.E. MANAGEMENT COULD NOT ACHIEVE
THE RESULTS BY EMPHASIZING ONE ASPECT. ALL THE THINGS
SHOULD BE DISCUSSED AND DECISION BE TAKEN FOR
IMPROVING THE WHOLE SITUATION. A BALANCED APPROACH 78
TO THE WHOLE SITUATION CAN SHOW BETTER RESULTS.
 IMPORTANCE OF MANAGEMENT:

•MANAGEMENT MEETS THE CHALLENGE

OF CHANGE
•ACCOMPLISHMENT OF GROUP GOALS
•EFFECTIVE UTILIZATION OF
RESOURCES 80

•
 IMPORTANCE OF MANAGEMENT:
•RESOURCE DEVELOPMENT
•SOUND ORGANIZATIONAL STRUCTURE
•MANAGEMENT DIRECTS THE
ORGANIZATION
•IT INTEGRATES VARIOUS INTERESTS
81
 IMPORTANCE OF MANAGEMENT:
•IT STABILIZES THE FLUCTUATIONS
•IT INNOVATES
•COORDINATION AND TEAM SPIRIT
•TACKLING AND SOLVING PROBLEMS
•MANAGEMENT IS A TOOL FOR
PERSONALITY DEVELOPMENT 82
 PLANNING ORGANIZING STAFFING

CONTROLLING DIRECTING

MOTIVATING COORDINATING

7 PROCESS OF
SCIENTIFIC
MANAGEMENT
 PLANNING
•PLANNING IS THE PRIMARY
FUNCTION OF MANAGEMENT.
•PLANNING REFERS TO DECIDING
IN ADVANCE WHAT WILL BE
DONE IN NEAR FUTURE.84
 IN THE BUSINESS WORLD, THE
ORGANIZATION HAS TO ACHIEVE THE
OBJECTIVES AND GOALS.
IN ORDER TO ACHIEVE THESE OBJECTIVES
AND GOALS THE ORGANIZATION PLANS:
•WHAT IS TO BE DONE
•WHEN IT IS TO BE DONE
85

•HOW IT IS TO BE DONE
 ORGANIZING

IT CAN BE DEFINED AS ARRANGING THE

WORK, PROCESSES, AUTHORITY,
RESOURCES AND EMPLOYEES IN RIGHT
ORDER, SO THAT ALL THE
ORGANIZATIONAL ACTIVITIES CAN
86

TAKE PLACE IN A DEFINED AND

 • AFTER PLANNING IS COMPLETED,
WE HAVE TO BRING ALL THE
RESOURCES TOGETHER IN A CERTAIN
FORMAT, WHICH MAKES EASY FOR
US TO TAKE ACTIONS.
• AS DETAILED EARLIER, THERE ARE
FOUR RESOURCES VIZ. MEN,
MACHINES, MATERIAL AND MONEY
WHICH HAVE TO BE BROUGHT87
 STAFFING:

•STAFFING IS THE IMPORTANT FUNCTION OF

MANAGEMENT THAT INVOLVES EMPLOYING THE
RIGHT NUMBER OF PEOPLE AT THE RIGHT PLACE
WITH RIGHT SKILLS AND ABILITIES.
•IT ALSO INVOLVES TRAINING AND DEVELOPMENT
OF THE PEOPLE SO THAT ORGANIZATIONAL
OBJECTIVES AND GOALS CAN BE ACHIEVED88

SUCCESSFULLY.
IT COMPRISES THE ACTIVITIES OF
SELECTION AND PLACEMENT OF
COMPETENT PERSONNEL.
IN ADDITION TO SELECTION, TRAINING,
DEVELOPMENT OF PERSONNEL, IT ALSO
COMPRISES OF PROMOTION OF BEST
PERSONS, RETIREMENT OF OLD PERSONS,
PERFORMANCE APPRAISAL OF ALL THE
89
PERSONNEL, AND ADEQUATE
 DIRECTING

•DIRECTION INCLUDES GUIDANCE,

SUPERVISION, AND MOTIVATION OF
EMPLOYEES.
•DIRECTING INVOLVES INFLUENCING,
ENCOURAGING, COUNSELING, MENTORING,
AND GUIDING THE EMPLOYEES TO WORK
TOWARDS THE ACCOMPLISHMENT OF 90

ORGANIZATIONAL OBJECTIVES AND GOALS.

 • COMMUNICATION AND
COORDINATION
• ARE THE TWO IMPORTANT ELEMENTS.
COMMUNICATION REFERS TO VERBAL OR
NON-VERBAL INTERACTION BETWEEN
THE MANAGERS AND SUBORDINATES.
• ON THE OTHER HAND, COORDINATION IS
DEFINED AS AN ACT OF ENABLING
DIFFERENT INDIVIDUALS TO WORK91

TOGETHER FOR A COMMON GOAL.

 • DIRECTING IS A PROCESS OF TOP DOWN
APPROACH.
• IT IS A VERTICAL PROCESS IN WHICH
ORDERS COME FROM TOP FOR THE
SUBORDINATES TO FOLLOW.
• COORDINATING IS A HORIZONTAL
FUNCTION.
• IT CREATES LINKAGES BETWEEN DIFFERENT
VERTICALS.
92
 MOTIVATING

•THE WORKERS EXPECT FAVORABLE

CLIMATE CONDITIONS TO WORK, FAIR
TREATMENT, MONETARY AND NON-
MONETARY INCENTIVES, EFFECTIVE
COMMUNICATION AND GENTLEMAN
APPROACH.
93
 • THE OBJECTIVES AND GOALS ARE
ACHIEVED BY MOTIVATION.
• MOTIVATION INCLUDES INCREASING
THE SPEED OF PERFORMANCE OF A
WORK AND DEVELOPING A
WILLINGNESS ON THE PART OF
WORKERS.
• THIS IS DONE BY A RESOURCEFUL
LEADER. 94
CONTROLLING:
IT CAN BE DEFINED AS A FUNCTION
THROUGH WHICH THE ACTUAL AND DESIRED
OUTPUT IS MEASURED.
IF THE ACTUAL OUTPUT DIFFERS FROM
THE DESIRED OUTPUT, THE DEVIATIONS ARE
ALTOGETHER REMOVED OR MINIMIZED.
CONTROLLING:
THE MAIN STEPS IN CONTROLLING
FUNCTION:
ESTABLISHING PERFORMANCE
STANDARDS
MEASURING ACTUAL PERFORMANCE
DETERMINING THE GAP BETWEEN
SET STANDARDS AND ACHIEVED
PERFORMANCE
TAKING CORRECTIVE MEASURES
 2
VISION & MISSION
 VISION STATEMENT

IS WRITTEN BY LOOKING AHEAD INTO THE

FUTURE.
•IT AIMS AT HIGHER ACHIEVABLE
THINGS.
•IT IS BASED ON WHAT THE
ORGANIZATION SHOULD STRIVE FOR 99

AND ACHIEVE IN ANOTHER FIVE TO TEN

THIS ACTS AS A POWERFUL TOOL,
A GUIDING STAR.
WHEN PERSONALIZED AND TRULY
OWNED, VISION PROVIDES THE
INCENTIVE-THE DRIVE TOWARDS
FULFILLMENT.

100
 IT CREATES COMMITMENT,
MOTIVATION AND THE DRIVE
FOR INITIATING THE MISSION,
OBJECTIVES, PROJECTS AND
TASKS NECESSARY TO REALIZE
THE VISION. 101
IT SHOULD BE UNDERSTOOD THAT
VISION IS A PORTRAYAL OF WHAT
LIFE COULD BE FIVE TO TEN
YEARS FROM NOW.
VISION IS THE RESULT OF DREAMS IN
ACTION.
102
TIME IS ALLOWED FOR DREAMING
AND BRAINSTORMING ALONG
WITH CATEGORIZING RANDOM
THOUGHTS TO ENSURE A
COMPREHENSIVE AND REALISTIC
VISION.
103
• THE VISION STATEMENT GIVES DIRECTION TO THE
ORGANIZATION.
• HAVING A VISION PAVES WAY FOR THE SUCCESS OF
THE ORGANIZATION.
• BETWEEN THE DREAM AND THE VISION, THE
ORGANIZATION HAS TO CLIMB A LADDER OF
ACTION PLANS SUCH AS EXPERTISE, CREATIVITY,
EMPOWERMENT, INVOLVEMENT AND VALUES.
• A VISION IN EACH OF THESE SUB LEVELS WILL
HELP THE ORGANIZATION TO REACH THE GOAL
FASTER. 104
 GENERAL GUIDELINES FOR A
VISION STATEMENT:
•INVOLVE AS MANY EMPLOYEES AS
POSSIBLE IN THE FORMULATION OF
VISION STATEMENT.
•AFFINITY DIAGRAM AND
BRAINSTORMING SHOULD BE USED IN
THE FORMULATION OF THE VISION 105

STATEMENT.
 GENERAL GUIDELINES FOR A
VISION STATEMENT:
•THE VISION SHOULD PROJECT THE GROWTH
AND DEVELOPMENT.
•IT SHOULD BE SHORT AND REALISTIC.
•THE VALUE SYSTEM TO BE PROJECTED IN
THE STATEMENT.
•HOW YOU INTEND TO ACHIEVE THE
FORESIGHTED VISION SHOULD BE 106

HIGHLIGHTED.
Vision statement should be:

VISION STATEMENT ProgressiveSHOULD BE:

Futuristic
FUTURISTIC
PROGRESSIVE
  
Creative VISION Simple

Enthusiastic Unique

107
VISION STATEMENT OF TATA MOTORS LIMITED

TO BE A WORLD CLASS CORPORATE

CONSTANTLY FURTHERING THE
INTEREST OF ALL ITS STAKEHOLDERS.

108
 MISSION STATEMENTS

IF THE VISION IS “WHAT” OF LIFE, THEN THE

MISSION IS “WHY” AND “HOW”.
IT IDENTIFIES THE ROLES AND ACTIVITIES TO
WHICH AN INDIVIDUAL IS COMMITTED AND
PROVIDES THE OVERALL DIRECTION FOR
ACHIEVING THE VISION.
IT IS A ROAD MAP FOR ACHIEVING THE109
 • MISSION FOCUSES ON WHAT YOU
WANT TO BE AND WHAT YOU WANT
TO DO- CONTRIBUTIONS AND
ACHIEVEMENTS.
• MISSION FOCUSES ON THE VALUES
AND PERSPECTIVE UPON WHICH
BEING AND DOING ARE BASED.
110
 GENERAL GUIDELINES FOR MISSION
STATEMENTS:

•THESE STATEMENTS SHOULD CLEARLY

INDICATE THE IMPORTANT ROLES AND
METHODOLOGIES FOLLOWED FOR
FULFILLING THE VISION.
•TECHNIQUES AND TOOLS SUCH AS AFFINITY
DIAGRAM, BRAINSTORMING, FISHBONE 111

DIAGRAM, AND SURVEYS SHOULD BE USED.

• TESLA
• MISSION STATEMENT: TO CREATE THE MOST COMPELLING
CAR COMPANY OF THE 21ST CENTURY BY DRIVING THE
WORLD’S TRANSITION TO ELECTRIC VEHICLES.
• VISION STATEMENT: TO ACCELERATE THE WORLD’S
TRANSITION TO SUSTAINABLE ENERGY.
• IKEA
• MISSION STATEMENT: OFFER A WIDE RANGE OF WELL-
DESIGNED, FUNCTIONAL HOME FURNISHING PRODUCTS AT
PRICES SO LOW THAT AS MANY PEOPLE AS POSSIBLE WILL
BE ABLE TO AFFORD THEM.
• VISION STATEMENT: TO CREATE A BETTER EVERYDAY LIFE
FOR THE MANY PEOPLE.
• JSW
• MISSION STATEMENT – SUPPORTING INDIA'S GROWTH IN
STEEL DOMAIN WITH SPEED & INNOVATION
• VISION STATEMENT – GLOBAL RECOGNITION FOR QUALITY
& EFFICIENCY WHILE NURTURING NATURE & SOCIETY
• DISNEY
• MISSION STATEMENT - “USING OUR PORTFOLIO OF BRANDS TO
DIFFERENTIATE OUR CONTENT, SERVICES AND CONSUMER
PRODUCTS, WE SEEK TO DEVELOP THE MOST CREATIVE,
INNOVATIVE AND PROFITABLE ENTERTAINMENT EXPERIENCES
AND RELATED PRODUCTS IN THE WORLD.”
• VISION STATEMENT - “TO BE ONE OF THE WORLD’S LEADING
PRODUCERS AND PROVIDERS OF ENTERTAINMENT AND
INFORMATION.
 OBJECTIVES:
EVERY DEPARTMENT SHOULD HAVE WELL DEFINED
OBJECTIVES.
THIS WILL BE BASED ON WHY THE DEPARTMENT EXISTS AND
WHAT ARE ITS BROAD EXPECTED OUTCOMES.

116
 GOAL SETTING:

•TO FULFILL THE OBJECTIVES, IT IS NECESSARY

THAT THE OBJECTIVES ARE SPLIT INTO SPECIFICS.
•THE CRITERIA MAY BE FUNCTIONALITY, ACTION
ETC.
•THESE GOALS ARE FOR TEAMS OF PEOPLE
INVOLVED.

117
 THE GOALS MUST BE S-M-A-R-T : 

•SPECIFIC: WE SHOULD BE SPECIFIC IN OUR

GOAL.
•MEASURABLE: THE GOAL MUST BE
MEASURABLE.
•ATTAINABLE: THE GOAL MUST BE
ACHIEVABLE.
118
•REALISTIC: THE GOAL MUST BE REALISTIC.
 • GOALS ARE FOR A TEAM OF PEOPLE
INVOLVED AND MAY BE LONG TERM IN
NATURE.
• BUT THESE SHOULD BE MADE INTO A FEW
SHORT TERM AND PERSON SPECIFIC
TARGETS.
• TARGETS MAKE INDIVIDUALS MORE
COMFORTABLE WITH WHAT HE HAS TO DO,
AND WITHIN WHAT TIME FRAME HE HAS TO
ACCOMPLISH THE SAME. 119
 ACTION PLANS:
DETAILED ACTION PLANS HAVE TO BE
LAID DOWN NEXT.
THIS WILL ASSIST INDIVIDUALS IN
ACHIEVING THE TARGETS.

120
process to achieve the targets.

VISION

MISSION STATEMENTS
1 2 3 4 5 6

Dept 1 Dept 2 Dept 3 Dept 4

Objectives Objectives Objectives Objectives

1 2 3 1 2 3 1 2 3 1 2 3

GOALS GOALS GOALS GOALS

TARGETS TARGETS TARGETS TARGETS 121

ACTION PLANs ACTION PLANs ACTION PLANs ACTION PLANs