MANAGEMENT

UNIT-1

Prof. Garima Mathur

What are Management,
Administration, and Leadership?
Management involves setting goals and then working
with people to achieve them.
Administration is the process of managing the
details. This includes planning, organizing, and
controlling resources.
Leadership is the process of influencing people to
accomplish desired objectives. This involves high-level
strategy and motivating and guiding people to achieve
results.
Definition of Management
Management :
On expanding : Manage – men – tactfully
Manage – Men – technology
Manage – men – as team
Manage – competencies
Manage – objectives (MBO)
Manage – men and things

MANAGEMENT IS A FUNCTION OF :
M = f(RESULTS, FEEDBACK, RESULTS……)
Definition of “Management”
By Koontz and Weihrich
“Management is the process of designing and
maintaining an environment in which individuals
working together in groups, efficiently accomplish
selected aims.”

• Peter F. Drucker-Father of Modern Management

Management is an organ, organs can be described and
defined only through their functions.
Nature of Management
1) Management is Goal-Oriented: Management is a
purposeful activity. It is a tool which helps use of human
& physical resources to fulfill the pre-determined goals.
2) Management integrates Human, Physical and
Financial Resources: Management integrates human
efforts to other resources. It brings harmony among the
human, physical and financial resources.
3) Management is Continuous: Management is an ongoing
process. It is concerned with identifying the problem and
taking appropriate steps to solve it.
Contd…
4) Management is all Pervasive: Management is required
in all types of organizations as it helps and directs various
efforts towards a definite purpose.

5) Management is a Group Activity: Management is very

much less concerned with individual’s efforts. It is more
concerned with groups.
Importance of MANAGEMENT
(i) Achievement of group goals
(ii) Optimum utilization of resources
(iii) Minimization of cost
(iv) Survival and growth
(v) Generation of employment
(vi) Development of the nation
Management is…
A1) Management—a science- Science is a systematic body of
knowledge pertaining to a specific field of study that contains
general facts which explains a phenomenon.

Science is characterized by following main features:

1.Universally accepted principles – Scientific principles represents
basic truth about a particular field of enquiry , applied in all
situations, at all time & at all places.
Management also contains some fundamental principles which can be
applied universally like the Principle of Unity of Command i.e.
one man, one boss. This principle is applicable to all type of
organization - business or non business.
2. Experimentation & Observation – Scientific principles are
derived through scientific investigation & researching i.e. they
are based on logic. E.g. It is observed that fair remuneration to
personnel helps in creating a satisfied work force.
3. Cause & Effect Relationship - Principles of science lay down
cause and effect relationship between various variables. E.g.
when metals are heated, they are expanded. The cause is
heating & result is expansion.
The same is true for management, therefore it also establishes
cause and effect relationship. E.g. Lack of parity (balance)
between authority & responsibility will lead to
ineffectiveness.
4. Test of Validity & Predictability - Validity of scientific
principles can be tested at any time or any number of times
i.e. they stand the test of time without variation.
Principles of management can also be tested for validity.
E.g. Principle of unity of command can be tested by
comparing two persons - one having single boss and one
having 2 bosses. The performance of 1st person will be
better than 2nd.
The main reason for the inexactness of science of
management is that it deals with human beings and it is
very difficult to predict their behavior accurately. Since
it is a social process, it is a flexible social science & that is
why its theories and principles may produce different results
at different times and therefore it is a behavioral science.
Ernest Dale has called it as a Soft Science.
A- 2) Management—an art- Art implies application of
knowledge & skill to try about desired results.
An art may be defined as personalized application of general
principles for achieving best possible results. Art has the
following characters –
1. Practical Knowledge- Every art requires practical knowledge
therefore learning of theory is not sufficient.
A manager can never be successful just by obtaining degree or
diploma in management; he must have also know how to apply
various principles in real situations by functioning in capacity
of manager.
2. Personal Skill- Although theoretical base may be
same for every artist, but each one has his own style
and approach towards his job. That is why the level
of success and quality of performance differs from
one person to another.
Eg.- Every manager has his own way of managing
things based on his knowledge, experience and
personality, that is why some managers are known
as good managers whereas others as bad.
3. Creativity- Every artist has an element of creativity
in line which requires combination of intelligence &
imagination.
Management is also creative in nature like any other
art. It combines human and non-human resources in
useful way so as to achieve desired results.
4. Perfection through practice- Practice makes a man
perfect. Every artist becomes more and more proficient
through constant practice.
Similarly managers learn through an art of trial and
error initially but application of management principles
over the years makes them perfect in managing.
5. Goal-Oriented- Every art is result oriented as it
seeks to achieve concrete results. In the same manner,
management is also directed towards accomplishment
of pre-determined goals through various resources.

Thus, we can say that management is an art of highest

order because it deals with molding the attitude and
behavior of people at work towards desired goals.
B) Management—a profession :

A profession may be defined as an occupation that

requires specialized knowledge and intensive academic
preparations to which entry is regulated by a
representative body. The essentials of a profession are:

Specialized Knowledge
Formal Education & Training
Code of Conduct
Representative Association
DISTINCTION BETWEEN MANAGEMENT
AND ADMINISTRATION
The management experts like Elbourne, Urwick and
Mary Follett regarded ‘administration’ and
‘management’ as synonymous and use them
interchangeably in their works. But, Schuze and
Sheldon found distinction between these two
concepts. According to them the distinction is
important.
Oliver Sheldon in his work “The Philosophy of
Management” defines ‘Administration as a function
is concerned with the determination of the corporate
policy, the coordination of finance, production and
distribution, the settlement of the compass (i.e.,
structure) of the organization, under the ultimate
control of the executive.’
On the other hand, ‘Management is concerned with
the execution of the policy, within the limits setup by
administration and the employment of the
organization for the particular objects before it.
 Thus Sheldon declares administration as a
thinking process and management as doing
process.
Points of Administration Management
distinction
Nature determinative or thinking executive or doing
function function
Type of work It is concerned with the It is concerned with the
determination of major implementation of
objectives and policies policies

Levels of authority Top Level Management Middle and Lower level

management
Influence Administrative decisions are Managerial decisions are
influenced mainly by public influenced by objectives
opinion and policies of the
and other outside forces org.

Direction of Human Not directly concerned with Directly concerned with

Efforts human efforts human efforts in
execution of plan

Main Functions Planning & Control Directing & Organizing

Skills Required Conceptual & human Technical & Human
Illustrations Vice Chancellor, Governor , General Manager, Branch
CEO etc.. Manager etc..
MANAGEMENT PROCESS
Management is the process of planning, organizing,
leading and controlling.

All managers despite of different aptitude and skills

engage more into interrelated activities to attain the
desired goal.
The Functions of Management

Managers

Planning Organizing Staffing Directing

Controlling
Activities to Resources and The Employees’
achieve the activities to organization activities The
organization's achieve the with toward organization’s
organization’s qualified achievement activities
objectives
objectives people of objectives to keep it
on course
LEVELS OF MANAGEMENT

&

MANAGERIAL SKILLS

CONTD..
 CONCEPTUAL SKILLS

Top level H
U
M
A TE

N CH
Middle level
S NI

K CAL

ILL SKI
First line
Supervisor S LLS
level/entry
level

Robert L Katz – Managerial skills

MANAGERIAL ROLES (By Henry Mintzberg)
He has categorized managerial roles into three groups:

1. Interpersonal roles
2. Informational roles
3. Decisional roles

Description of each of the roles……

1.Interpersonal Roles
A manager serves as a
 figurehead – a symbol;
 leader, ie., hires, trains, encourages, fires,
remunerates, judges; and
 liaison between outside contacts and the
organization.
2. Informational roles
A manager serves as a
 monitor by gathering information;
 disseminator of information
 spokesperson of the organization
3. Decisional Roles
A manager serves as an :
Entrepreneur - An initiator
Innovator
Problem discoverer
Designer of improvement projects
As a disturbance handler of unexpected situations
As a resource allocator and
As a negotiator
ALL THE THREE ROLES PUT TOGETHER IS
CALLED AS:
MANAGERIAL WORK ACTIVITY APPROACH

In all, managers perform 10 different roles, which are highly

interrelated.
EVOLUTION OF MANAGEMENT
Management thought is an evolutionary concept. It’s as old
as human civilization when people started living in groups.
EARLY CONTRIBUTORS
The first known management ideas were recorded in 3000-
4000 B.C. One Pyramid built by Egyptian ruler required
work to be done by 100,000 men for over twenty years in
2900 B.C. It covered 13 acres of land and measured 481
meters in height. The stone slabs had to be moved
thousands of kilometres of distance. Such monumental
work could not be completed without adherence to
principles of sound management.
Contd…
1. Charles Babbage (1792–1871)
 Known as the patron saint of operations research and
management science.
Babbage’s scientific inventions included a mechanical
calculator (his "difference engine"), a versatile computer
(his "analytical engine"), and a punch-card machine.

Babbage is considered the originator of the concepts

behind the present day computer.
Contd…
Babbage most successful book, On the Economy of Machinery
and Manufacturers, described the tools and machinery used in
English factories.

It discussed the economic principles of manufacturing, and

analyzed the operations; the skills used and suggested for
improved practices. He developed a method of observing
manufacturing that is the same approach utilized today by
operations analysts and consultants analyzing manufacturing
operations.

Babbage believed in the benefits of division of labor and was an

advocate of profit sharing.
2.Frank Gilbreth (1868–1924) and
Lillian Gilbreth (1878–1972)
Husband and wife team that brought many significant contributions
to scientific management.

Frank began working at age of seventeen as an apprentice bricklayer,

and later became a chief superintendent and independent contractor.

Franks early work parallel to Taylors and, in later years, Frank

formed his own management consulting company, which was closely
associated with scientific management methods.

Frank Gilbreth published a series of books describing the best way of

laying bricks, handling materials, training apprentices, and
improving methods while lowering costs and paying higher wages.
 In 1907, Frank Gilbreth met Frederick Taylor and soon became one of Taylors
most devoted advocates. Frank turned his attention away from construction, and
extended his interest in motion study (similar to Taylors time study) to the
general field of management.

 In order to supplement the human eye, Gilbreth used motion picture cameras,
lights, and clocks calibrated in fractions of minutes to create "micromotion"
study. Gilbreth also developed a list of seventeen basic motions he called
"therbligs" (Gilbreth spelled backwards) to help analyze any worker
movement.

 Unfortunately, the partnership of Frank and Lillian came to an end in 1924 when
Frank died of a heart attack.

 Lillian continued their work through motion study seminars and consulting,
later becoming a professor of management at Purdue University (1935–1948).

 Dr. Lillian Gilbreth, known as the first lady of management, played an important
role in Franks research and made many contributions of her own. Lillian pursued a
degree in psychology, and in addition to her marriage and family of twelve, she
assisted Frank with his work.
Lillians thesis-turned- book, The Psychology of
Management, is one of the earliest contributions to
understanding the human side of management.

Dr. Gilbreths work illustrated concern for the worker and

attempted to show how scientific management would
benefit the individual worker, as well as the organization.

Lillian wrote about reduction of worker fatigue, how to

retool for disabled veteran workers returning to the
workplace, and how to apply principles of scientific
management to the home.
 3. HENRY L. GANTT (1861–1919) worked with Taylor
at the Midvale Steel Company and was considered a
Taylor disciple. He was a management consultant and
engineer

Gantt felt the foreman should teach the workers to be

industrious and cooperative which, in turn, would
facilitate the acquisition of all other knowledge.

Henry Laurence Gantt devised the Gantt chart in the

1910’s. using horizontal bars to plan and control
work.

Similar to Taylor, Gantt called for the scientific study

Major Approaches to Management

1. SCIENTIFIC MANAGEMENT:

The most important contributor in this field was Frederick W.

Taylor who is known as the “father of scientific
management”.

Using his principles of scientific management, Taylor was able

to define the “one best way” for doing each job.
Principles of Management
1. SCIENTIFIC MANAGEMENT:

The most important contributor in this field was Frederick W.

Taylor who is known as the “father of scientific
management”.

Using his principles of scientific management, Taylor was able

to define the “one best way” for doing each job.
Contd…
 1. Abolishing ‘Rule of Thumb’
 2. Hiring best qualified workers (Scientific Selection & Training)
 3. Harmony, Not discord
 4. Cooperation not Individualism

 Functional Formanship
 Work study
 Standardization & simplification of work
 Designed incentive systems based on output (differential piece rate
system)
 Mental Revolution
Functional Foremanship
 Taylor advocated functional foremanship for achieving ultimate
specification.

 This technique was developed to improve the quality of work as single

supervisor may not be an expert in all the aspects of the work.

 Therefore workers are to be supervised by specialist foreman.

 The scheme of functional foremanship is an extension of principle of

specialization at the supervisory level.

 Taylor advocated appointment of 8 foramen, 4 at the planning level &

other 4 at implementation level.
Contd...
 The names & function of these specialist foremen are:

 Instruction card clerk concerned with tagging down of instructions

according to which workers are required to perform their job
 Time & cost clerk is concerned with setting a time table for doing a job &
specifying the material and labor cost involved in it.
 Route clerk determines the route through which raw materials has to be
passed.
 Shop Disciplinarians are concerned with making rules and regulations to
ensure discipline in the organization.
 Gang boss makes the arrangement of workers, machines, tools, workers etc.
 Speed boss concerned with maintaining the speed and to remove delays in
the production process.
 Repair boss concerned with maintenance of machine, tools and equipments.
 Inspector is concerned with maintaining the quality of product.
Standardization
It implies the physical attitude of products should be such
that it meets the requirements & needs of customers.
Taylor advocated that tools & equipments as well as working
conditions should be standardized to achieve standard
output from workers.
Standardization is a means of achieving economics of
production.
It seems to ensure -
 The line of product is restricted to predetermined type, form,
design, size, weight, quality. Etc
 There is manufacture of identical parts and components.
 Quality & standards have been maintained.
 Standard of performance are established for workers at all levels.
 It is a technique which enables the manager to ascertain
Time Study

standard time taken for performing a specified job.

Every job or every part of it is studied in detail.
This technique is based on the study of an average worker
having reasonable skill and ability.
Average worker is selected and assigned the job and then with
the help of a stop watch, time is ascertained for performing that
particular job.
Taylor maintained that Fair day’s work should be determined
through observations, experiment and analysis by keeping in
view an average worker.

Standard Time × Working Hours = Fair Day’s Work

Motion Study
 In this study, movement of body and limbs required to perform a job
are closely observed.

 In other words, it refers to the study of movement of an operator on

machine involved in a particular task.

 The purpose of motion study is to eliminate useless motions and

determine the bet way of doing the job.

 By undertaking motion study an attempt is made to know whether some

elements of a job can be eliminated combined or their sequence can be
changed to achieve necessary rhythm.

 Motion study increases the efficiency and productivity of workers by

cutting down all wasteful motions.
Differential Piece Wage Plan
This wage payment is based on efficiency of worker.
The efficient workers are paid more wages than inefficient
one.
On the other hand, those workers who produce less than
standard no. of pieces are paid wages at lower rate than
prevailing rate i.e. worker is penalized for his inefficiency.
This system is a source of incentive to workers who improve
their efficiency in order to get more wages.
It also encourages inefficient workers to improve their
performance and achieve their standards.
It leads to mass production which minimizes cost and
maximizes profits
2. CLASSICAL ORGANIZATION
/ADMINISTRATIVE THEORY
Came up to find guidelines for managing the
complex organization.

Henry Fayol is hailed as the founder of classical

management school( 1841-1925). Because he was
the first to systematize the management practice.

Before Fayol, the believe was ‘ manager are born ,

not made’.
Henry Fayol
He was a French mining engineer
The nineteen-year old engineer started at the mining
company in 1841.
By 1900 the company was one of the largest producers
of iron and steel in France.
Fayol became managing director in 1888.
He held MD position over 30 years until 1918.
In 1916 he published his experience in the book
General and industrial administration
14 Principles of Management -HENRY FAYOL
1. Division of work
2. Authority & Responsibility
3. Discipline
4. Unity of command (one boss---subordinate)
5. Unity of Direction (one head and one plan)
6. Subordination of Individual Interests to General
Interest
7.Remuneration of Personnel (Pay by Results;
motivational – ESOPS, etc)
8.Centralization (optimization between centralization
and decentralization; as the human body – brain is the
centralized organ)
9. Scalar Chain – This is “the chain of superiors” ranging from the
ultimate authority to the lowest ranks. THE ORGANOGRAM

10. Order: Right man in the right place; competency specific; man
should fit the job and not the other way round.

11.Equity

12.Stability of tenure of personnel – Retention of talent;

13.Initiative – encourage initiative among subordinates

14.Esprit-de-Corps: UNION IS STRENGTH; team work; cohesiveness

among the members
Bureaucratic Theory
Max Weber (German Sociologist) – Any goal oriented
organization need a carefully controlled regulation of
its activity.

He developed a theory of Bureaucratic management

marked by a clear division of labor, fixed hierarchy
of authority, clearly defined regulations with
emphasis on technical competence (Taylor) and
performance evaluations.
Contd…
Talked about theory of Authority Structure:

3 types-

1. Charismatic authority
2. Traditional Authority (fixed by custom)
3. Rational- Legal Authority = Bureaucracy
Mary Parker Follet
Built the basic framework of Classical School. She
induced the power of group, where individuals
combine their diverse talents into something bigger.
It led to the development of behavioral and
management science schools.

In all, Management is the art of getting things done

through others.
Chester I. BARNARD
Like Follet, he too introduced few elements that laid
the foundation for other schools.
He specified a principle by which people can work in
stable and mutually beneficial relationships with
organization over time.
Eg.- To meet personal goal within the confines of org. ,
people come together in informal groups called
cliques; org. should use these groups effectively.
Universality of these informal groups was a major
contribution to management thought.
Zone of indifference (Area of acceptance)- Acc. To
Barnard and Simon, employee accept orders and
activities that fall under familiar range of
responsibility, and it helps in smooth functioning of
organization.

He also emphasized on role of individual worker as ‘

basic strategic factor in organization.’ and even
promoted team work.
3) THE BEHAVIORAL SCHOOL
i.e. Organization is people.

Earlier theory did not achieve sufficient production

efficiency and workplace harmony, so to meet the
manager’s frustration further, a group of management
scholars trained in sociology, psychology and related
fields came together, used their diverse knowledge to
effectively manage people in organization.
Human Relation Movement: Human relation is the
way manager interact with the employees. This
stimulates better work at place.
Hawthorne Studies (1924- 1933) Conducted at
Western Electric Company (Hawthorne plant) near
Chicago. By Elton Mayo.
First experiment: Test groups subjected to deliberate
changes in lighting. Control group with no change.
Productivity increased with increase in lighting and
vice-versa. But over a course of time, control group too
increased their productivity. i.e. Something beside
lighting was working.
New set of Experiment: Small group of workers
were placed in a separate room with varying
elements( wages increased, rest periods as per
convenience, sympathetic supervisors, a say in
changes etc..). Performance increased over time.

Concluded that employees will work harder if

they believe that management is concern called
it as Hawthorne effect.

Abraham Maslow & Oliver Sheldon also

emphasized on the behavioral management.
Social Responsibilities of Management
Keith Davis, “Social responsibilities refer to the
businessman’s decisions and actions taken to reason at least
partially beyond the firm’s direct economic or technical
interest”.
In other words businesses should consider the social
implications of their decisions.
A survey conducted on the matter revealed “Corporate social
responsibility is seriously considering the impact of the
company’s actions on society”. In a broad sense, business
owes a lot to the various groups such as customers,
employees, shareholders, government and the community at
large in which it exists.
ETHICS IN MANAGEMENT
Ethics and ethical behavior are the essential parts of
healthy management. From a management perspective,
behaving ethically is an integral part of long - term career
success. Wide access to information and more business
opportunities than in the past makes ethics a need in
modern business world.
CONTD..
From the point of view of the internal customer, ethical
behaviour improves the atmosphere at work and helps
motivate the employees, sets a good example to the
employees, and evokes a sense of pride for the company
and improves its image in the eyes of the employees.

From the point of view of external customer, ethical

behaviour improves the public image of the company
and adds to the overall development of ethical
behaviour in the organization.
The four levels of organizational ethics
Social disregard: the company shows carelessness for the
consequences of its actions.
Social obligation: the company does not wish to extend
its activity any further than just meeting its legal
responsibilities.
Social responsiveness: the company adjusts its policies
according to the social conditions, demands and pressures.
Social responsibility: the company decides to concentrate
on its long-term goals for the benefit of society in general.