Emerging Concepts in

Management
Chapter 1: Introduction to Management and Management History
 Coverage
• Concept, Characteristics, and Types of Organizations

• Concept, Characteristics, and Functions of Management (Plus

Managers)

• Bird-Eye-View of the Historical Evolution of Management Thoughts

• Modern Theories/Approaches to Management

(Systems Theory, Contingency Theory & Evidence-Based Management)
 Organization – Simple Concept

• Managers work in organizations.

• It is a deliberate arrangement of people to accomplish some specific

purpose.

• Colleges, Banks, Hotels, Travel Agencies, Hospitals, Airlines,

Departmental Stores, Football Clubs, Government Offices, Google,
Facebook, etc.
 Organization – Broader Concept
• Organization is a process of identifying and grouping the work to be performed,
defining and delegating the responsibility and authority, and establishing the
relationships for the purpose of enabling people to work most effectively
together in accomplishing common objectives.

• Organization is the idea of putting things together in a logical order.

• An organization is a group of people who work together.

• Organizations exist because people working together can achieve more than a
person working alone.
 Organization – Static and Dynamic
We can also understand the Concept in the
following Two Types:
 
1. Static Concept

2. Dynamic Concept
 Static Concept
• Under static concept the term ‘organization’ is used as a structure, an
entity or a network of specified relationship.

• In this sense, organization is a group of people bound together in a

formal relationship to achieve common objectives.

• It lays emphasis on position and not on individuals.

 Dynamic Concept
• Under dynamic concept, the term ‘organization’ is used as a process of an on-
going activity.
• In this sense, organization is a process of organizing work, people and the
systems.
• It is concerned with the process of determining activities which may be
necessary for achieving an objective and arranging them in suitable groups so
as to be assigned to individuals.
• It considers organization as an open adoptive system and not as a closed
system.
• Dynamic concept lays emphasis on individuals and considers organization as a
continuous process.
 Organization Structure
• Organizational structure helps a company assign a hierarchy that
defines roles, responsibility, accountability and supervision.

• It's the plan that outlines who reports to whom and who is
responsible for what.

• It's usually recorded and shared as an organizational chart that

includes job titles and the reporting structure.
 Organizations - Characteristics

Three basic/common characteristics in simplistic terms:

1. Distinct Purpose

2. People

3. Distinct Structure
 Organizations - Characteristics
In Broader Terms:

1. Division of Work
2. Coordination
3. Common Objectives
4. Co-operative Relationships
5. Well-Defined Authority-Responsibility-Accountability Relationships
6. Communication
 Type of Organizations
• Size: Small – Large

• Motive: Profit – Not for Profit

• Changing Organizations: Traditional – Modern – Flat Organizations – As per Business

Environment.

• As per Organization Life Cycle: Simple, Functional, Divisional, SBUs, Matrix, etc.

• Why are organizations changing?

(Globalization, Technology (E-commerce), Sustainability Issues).
 Management - Concept
• Managers work in organizations and do Management.
• Simply, Management is what Managers DO.
• Broadly, Management is coordinating work activities so that they are
completed efficiently and effectively.
• Traditionally, Management is getting work done by others.
• But, now Managers do Management through and with others.
• The coordinating function distinguishes managerial and non
managerial work.
 Characteristics/Features of Management
1. Management is goal oriented process
2. Management is Pervasive (Can be applied to any type/size of
business/organization)
3. Management is Multidimensional (Work, People, Operation)
4. Management is a continuous process
5. Management is a group activity
6. Management is a dynamic function
7. Management is intangible
8. Management is a composite process (Planning, Organizing, Leading, Controlling)
9. Management is balancing effectiveness and efficiency
 Management – Function and Process
• Planning – Define goals, establish strategies, develop plans, & coordinate
activities.
• Organizing – What tasks are to be done, who is to do them, how these tasks are
to be grouped, who reports to whom, and who makes the decisions.
• Leading – Motivation, Influence, Communication, Dealing with diverse behavior.
• Controlling – Monitoring & Evaluate to ensure that work is going as it should be.

This will lead to achieving the organization’s stated purpose. This is also the
Management Process.
14 Basic Principles of Management by Henri Fayol
1. Division of Work
2. Balancing Authority and Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of Individual Interests to the General Interest.
7. Remuneration
8. Centralization
9. Scalar Chain of Command
10. Order
11. Equity
12. Stability of Tenure of Personnel
13. Initiative
14. Esprit De Corps (Team Spirit)
 Managers
• Someone who works with and through other people by coordinating
their work activities in order to accomplish organizational goals.

Managerial Levels:
• Top Managers
• Middle Managers
• First-Line Managers
• Non-managerial Employees
 Managerial Roles
• Interpersonal – Figurehead, Leader, Liaison
(Involves People)

• Informational – Monitor, Disseminator, Spokesperson

(Involves Information)

• Decisional – Entrepreneur, Disturbance Handler, Resource Handler,

Negotiator.
(Involves Making Choices)
 Managerial Competencies (Skills)
• Technical Skills – Knowledge of and proficiency in a specialized field. (LOWER LEVEL
MANAGERS)

• Human Skills – The ability to work well with other people individually and in a
group. (MIDDLE MANAGERS)

• Conceptual Skills – The ability to think and to conceptualize the abstract and
complex situation. (TOP MANAGERS)

• Other Skills – Communications, Effectiveness, Interpersonal Skills. (Refer to Book

for Details)
 Changing Jobs of Managers

1. Changing Technology (Digitization)

2. Increased Threats to Security

3. Increased Emphasis on Organizational and Managerial Ethics

4. Increased Competitiveness
 Changing Technology (Digitization)

• Shifting organizational boundaries

• Virtual workplaces
• More mobile workforce
• Flexible work arrangements
• Empowered employees
 Increased Threats to Security

• Risk Management
• Work life – personal life balance
• Restructured workplaces
• Discriminations concerns
• Globalization concerns
• Employee assistance
 Increased Emphasis on Organizational & Managerial
Ethics

• Redefined Values
• Rebuilding Trust
• Increased Accountability
 Increased Competitiveness

• Customer Service
• Innovation
• Globalization
• Efficiency / Productivity
 THRUST

• Importance of Customers to the Manager’s Job.

• Importance of Innovation to the Manager’s Job.

Bird’s Eye View of the Historical Evolution
of Management Thoughts
 Concepts

• Organized endeavors directed by people responsible for planning,

organizing, leading, and controlling activities have existed for
thousands of years.

• The Egyptian pyramids, the Great Wall of China, Singh Durbar, Various
temples in Kathmandu valley, are evidence of projects of tremendous
scope, employing thousands of people, were undertaken well before
modern times.
 Concepts

• The Wealth of Nations by Adam Smith in 1776 argued for the

economic advantages that organization and society would gain from
division of labor.

• The Industrial Revolution is the advent of machine power, mass

production, and efficient transportation.
 Classical Approach

• The Scientific Management theory describes the use of scientific

methods to determine the “one best way” for a job to be done.

• Important contributors to this theory are FW Taylor and Frank &

Lillian Gilbreth.
 Classical Approach

• The General Administrative Theories developed more general

theories of what managers do and what constituted good
management practice.

• Important contributors to this theory are Henri Fayol and Max Weber.
 Behavioral Approach
• Managers get things done by working with people.

• This explains why some writers have chosen to look at

management by focusing on organization’s human resources.

• The field of study concerned with the actions (behavior) of

people at work is called Organizational Behavior (OB).
 Behavioral Approach

• Much of what currently makes up the field of HR

Management, as well as contemporary views on motivation,
leadership, trust, team work, and conflict management, has
come out of this theory.

• Robert Owen, Hugo Munsterberg, Marry Parker Follett, and

Chester Bernard are early advocates of this approach.
 Quantitative Approach

• It is the use of quantitative techniques to improve decision making.

• This approach has also been called Operation Research or

Management Science.

• This evolved out of the development of mathematical and

statistical solutions to military problems during world war II.
 Quantitative Approach
• Important contributors to this approach are Robert
McNamara and Charles Tex Thornton.

• This approach involves applications of statistics, optimization

models, information models, and computer simulations to
management activities.
 Systems Approach

• During the 1960s, researchers began to analyze organizations

from a systems perspective, a concept taken from the
physical sciences.

• The concept of System, Closed System and Open System.

 Systems Approach

• The organization therefore is “Open” to its environment and

interacts with that environment.

• The systems researchers envisioned an organization as being

made up of “interdependent factors, including individuals,
groups, attitudes, motives, formal structure, interactions,
goals, status, and authority”.
 Contingency Approach

• An approach that says that organizations are different, face

different situations (contingencies), and require different
ways of managing.

• This is sometimes called situational approach.

 Contingency Approach –
Trends/Considerations/Issues

• Globalization
• Ethics
• Workforce Diversity
• Entrepreneurship
• e-Business
• Knowledge Management & Learning Organizations
• Quality Management
 Popular Contingency Variables

• Organizations Size
• Routineness of Task Technology
• Environmental Uncertainty
• Individual Differences
 Evidence-Based Management

• Evidence-based management is the practice of making managerial

and people-related decisions with the use of critical thinking and the
best available evidence.

• Evidence-based management is an emerging movement to explicitly

use the current, best evidence in management and decision-making.

• It is part of the larger movement towards evidence-based practices.

 Evidence Based Management - Value

• Evidence-Based Management is a framework organizations can use

to help them measure, manage, and increase the value they derive
from their product delivery.

• EBM focuses on improving outcomes, reducing risks, and optimizing

investments.
 Evidence Based Management - Advantages

• Evidence-based management reduces errors in judgments.

• An evidence-based approach to management reduces the potential

for irrational thinking, bias, or exhaustion to negatively
impact management decisions.