Management

Foundation
MODULE I
 Content
Concept
Nature
 Scope and Functions of Management
 Levels of Management
 Evolution and Foundations of Management
Management Theories - Classical and Neo - Classical Theories, Systems
Approach to organization, Modern Organization Theory.
Organisation
Managing Workplace
 Universality of management
The universality of management is
the concept that all managers do the
same job regardless of the title, position,
or management level:
They all execute the five management
functions and work through and with
others to achieve organizational goals.
Concept
Management can be defined as the process of achieving
organizational goals through planning, organizing, leading, and
controlling the human, physical, financial, and information
resources of the organization in an effective and efficient manner.
What is management?
Meaning of Management: – Management is what a manager
does within the organization. All the activities whether related to
decision making or implementation of such decisions are performed
by the managers with the purpose of achieving common goals.
Definition of Management
Concept of management is defined as the process of getting things
done from others to achieve goals effectively and efficiently.
Goal
Goal-Oriented: – The main task of management is to achieve the goals
of the organisation. An organization has some goals, which are the
basic reason for its existence.
Goal: – It means what the organisation wants to achieve.
For example, Reliance Jio; It came up with a goal to capture whole
telecommunication industry and to get the highest market share.
Here, in the above-mentioned example, the work of management is to
achieve goals set by ‘Reliance Jio’ with effectiveness and efficiency.
The goal should be clear and simply stated to each member working
for the organization.
 MANAGEMENT
The Process Of Getting Things Done, Effectively And Efficiently, Through And With Other People
Efficiency
◦ Means Doing The Thing Correctly;
◦ Refers To The Relationship Between Inputs And Outputs
◦ Seeks To Minimize Resource Costs
◦ To Complete A Task With Minimum Cost.
◦ For Example: – ‘A’ Got A Task Of Construction Of The Flyover. The Estimated Target For The Same Is 1000 Crores And
‘A’ Completed The Construction Of Flyover In 900 Crores. In This Case, A Worked Efficiently.

Effectiveness
◦ Means Doing The Right Things
◦ Goal Attainment
◦ It Is Basically To Complete The Task On Time.
◦ For Example: – Keeping In Mind The Above Example, Suppose, ‘A’ Got Two Years’ Time
Period For The Construction Of Flyover. If ‘A’ Completes His Task Within The Span Of Two
Years. Here, In This Case, We Can Say A’s Management Is Effective
 DEFINITIONS OF
MANAGEMENT
The process of designing and maintaining an environment in which
individuals, working together in groups efficiently accomplish selected
aims
◦ Harold koontz and heinz weihrich

The act of getting things done through people

◦ Mary parker follet

A process by which managers create, direct maintain and operate

purposive organisations through systematic, coordinated, cooperative
human effort
◦ DALTON E mcfarland

The use of people and other resources to accomplish objectives

◦ Louis e boone and david l kurtz
 RESOURCES
◦ MONEY
◦ MEN
◦ MACHINERY
◦ MATERIAL
◦ INFORMATION
Scope of Management
Production Management

Marketing Management

Financial Management

Personnel Management
1.Production Management: a) Designing the product b) Location and layout of
plant and building c) Planning and Control of factory operations d) Operation
of purchase and storage of materials e) Inventory cost and Quality Control f)
Research and Development etc.
2.Marketing Management: a) marketing research to determine the needs and
expectation of consumers b) planning and developing suitable products c)
setting appropriate prices d) selecting the right channel of distribution, and
e) promotional activities like advertising and salesmanship to communicate
with the customers
3.Financial Management: a) Selecting the appropriate source of funds b)
Raising the required funds at the right time c) Administration of earnings d)
Estimating the volume of fund.
4.Personnel Management: a) manpower planning b) recruitments, c)
selection, d) training e) appraisal, f) promotions and transfers, g)
compensation, h) employee welfare services, and i) personnel records and
research, etc
 MANAGER
◦ Operatives
◦ People who work directly on a job or task and have no
responsibility for overseeing the work of others. •
◦ Managers
◦ Individuals in an organization who direct the activities of others.
Where do they work
◦ Organization
◦ A systematic arrangement of people brought together to
accomplish some specific purpose; applies to all organizations—for-
profit as well as not-for-profit organizations.
Management Functions
1.PLANNING
2.ORGANISING
3.STAFFING
4.DIRECTING
5.CO-ORDINATING
6.CONTROLLING
7.MOTIVATING
8.INNOVATION
9.DECISION MAKING
10. COMMUNICATION

POSDCORB
P-planning, O- organizing, S-staffing, D-directing, coordinating, R-reporting, B-
Budgeting.
 MANAGERIAL FUNCTIONS
PLANNING
ORGANISING
STAFFING
LEADING/Directing
CONTROLLING
 FUNCTIONS OF
MANAGEMENT
Planning
◦ Includes defining goals, establishing strategy, and developing plans to
coordinate activities •
Organizing
◦ Includes determining what tasks to be done, who is to do them, how the tasks
are to be grouped, who reports to whom, and where decisions are to be made
Staffing
◦ RECRUITING, EVALUATING THEIR SKILLS AND RETAINING RIGHT PERSONS TO
DO SPECIFIC jobs
Planning
 FUNCTIONS OF
MANAGEMENT
Leading
◦ Includes motivating employees
◦ Directing the activities of others
◦ Selecting the most effective communication channel
◦ Resolving conflicts

Controlling
◦ The process of monitoring performance
◦ Comparing it with goals
◦ Correcting any significant deviations
 MANAGERIAL FUNCTIONS
PLANNING

CONTROLLING ORGANIZING

LEADING STAFFING
LEVELS OF MANAGEMENT
TOP

MIDDLE MIDDLE

LOWER/FIRST LOWER/FIRST LOWER/FIRST

 Three Types of Management Theories

•Classical management theory: emerged from

the Industrial Revolution and revolves around
maximizing efficiency and production.
•Behavioral management theory: started in the
early 20th century and addresses the organization’s
human and social elements.
•Modern management theory: followed on the
heels of World War II and combines mathematical
principles with sociology to develop holistic
approaches to management.
What is Classical Management Theory?
Classical management theory refers to the earliest areas of
management research. It focuses on the rationality in decision-
making and the efficiency of the organization. The categories and
most renowned early contributors to classical management theory
are as follows:
F.W. Taylor is being called as the Father of scientific, management.
In 1878 he joined as a laborer at Midvale steel company in the USA.
From that position he progressed to become Chief Engineer in 1884.
He published papers on “piece rate system”, “the art of cutting metals” and “shop
management”.
He published a book on “The Principles of Management” in 1911.

F.W. Taylor discovered the application of method of science for solving industrial
problems.
 The main features of Taylor’s scientific management are:
a. Science and not rule of thumb.
b. Harmony and not discord.
c. Maximum output and not restricted output.
d. Specialization-Division of work between management and
workers.
e. Training and development of workers.
Frank Gilbreth (1868-1924) and Lillian Gilbreth (1878- 1972). The Gilbreths identified
18 basic hand motions by breaking down the task into its fundamental elements.
These elements are:
x. Inspect,
i. Search,
xi. Preposition,
ii. Find,
xii. Release load,
iii. Select,
xiii. Transport empty,
iv. Grasp,
xiv. Rest,
v. Transport loaded,
xv. Unavoidable delay,
vi. Position,
xvi. Avoidable delay,
vii. Assemble,
xvii. Plan, and
viii. Use,
xviii. Hold.
ix. Disassemble,
Administrative Approach to Management
The father of Administrative or Management Process Theory was Henri Fayol. In his
early text, Administration , he proposed several managerial functions as categories
for all managerial activities. The functions include:

• Planning
• Organizing
• Commanding
• Coordinating
• Controlling
This framework evolved into the highly-influential P-O-L-C (Plan, Organize, Lead,
Control) framework for management functions. The Coordinating functions
collapsed into Leadership.

Fayol also contributed to the understanding of managerial duties through his text,
Fayol's 14 Principles of Management.
1.HENRY FAYOL (1841-1925)
Henry Fayol was a French industrialist.
The observation of Henry Fayol on the principles of management
Henry Fayol concentrated on top management .It is known from his
book , “General & Industrial management”.
Henry 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 &
other resources, selling of products &exchange.
3.Financial activities relating to identification & utilization of available
funds .
4.Security activities relating to the steps taken to protect the property of
enterprise& persons.
5.Accounting activities relating to the recording & maintaining of
accounts, stock taking & preparation of cost sheets , balance sheets
&statistical data .
6.Managing activities relating to planning, organizing, commanding,
coordinating & controlling.
Weber explored the organizational structure and proposed
the concept of a Bureaucracy.
He saw an organization as a clearly defined structure with a
division of labor, clear hierarchy, detailed rules, and impersonal
relationships.
Managers served the function of facilitating the organization of the
bureaucracy and management of functions.
The basic characteristics of a bureaucratic organisation are
as follows:
(i) A division of labor based on functional specialization.
(ii) A well-defined hierarchy of authority.
(iii) A system of rules concerning the rights and duties of
positional appointees.
(iv) A system of procedures for dealing with work situations.
(v) Impersonality of interpersonal relations.
(vi) Selection and promotion of employees based on technical
Neo-Classical Theories
Neo classical Theory:Neo- classical Theory is built on the base of classical theory. It
modified, improved and extended the classical theory. Classical theory concentrated on job
content and management of physical resources whereas, neoclassical theory gave greater
emphasis to individual and group relationship in the workplace. The neo- classical theory
pointed out the role of psychology and sociology in the understanding of individual and
group behaviour in an organization.

George Elton Mayo (Australia, 1880 - 1949): Elton Mayo was born in Australia. He was
educated in Logic and Philosophy at St. Peter's College, Adelaide. He led a team of
researchers from Harvard University, which carried out investigation in human problems at
the Hawthorne Plant of Western Electrical Company at Chicago. They conducted some
experiments (known as Hawthorne Experiments) and investigated informal groupings,
informal relationships, patterns of communication, patterns of informal leadership etc. Elton
Mayo is generally recognized as the father of Human Relations School. Other prominent
contributors to this school include Roethlisberger, Dickson, Dewey, Lewinetc.
Behavioral Approach to Management
These process-driven theories that focused on the manager and the role of
management later gave way to a focus on understanding the individual within
the organization. That is, as work became less about manual labor and more
about knowledge and understanding, other theories besides task
accomplishment and managerial efficiency became relevant.

The behavior-based approach to management focused on the individual

worker, such as motivations, behaviors, social systems, etc. It incorporated
aspects of psychology, motivation, and sociology.
Morden Theories Of Management
Quantitative Approach
• Quantitative approach is the use of quantitative
techniques to improve decision making, evolved from
mathematical and statistical solutions.
• Quality Management is: Intense focus on the
customer, Concern for continual improvement,
Process focused, Improvement in the quality of
everything the organization does, Accurate
measurement, and Empowerment of employees.
• Total quality management (TQM) is:A philosophy of
management that is driven by continuous
improvement and responsiveness to customer needs
and expectations
Contemporary Approaches
Two contemporary management perspectives—systems and
contingency System:
A set of interrelated and interdependent parts arranged in a
manner that produces a unified whole Process closed
system:
Systems that are not influenced by and do not interact with
their environment.
Open system: Systems that interact with their environment
Contingency approach: A management approach that
recognizes organizations as different, which means they
face different situations (contingencies) and require
different ways of managing.
Importance of Customers to
the Manager’s Job

Importance of Innovation to
the Manager’s Job

Importance of Sustainability
to the Manager’s Job.
 MCQS – 5 Marks
1. Which of the following is a crucial aspect of
strategic planning?
a. It is a broad concept that consists of business and
corporate strategy
b. It is an overall concept that consists of strategy
formulation and implementation
c. It is a broad concept that consists of
environmental and internal analysis
d. It is a general concept that consists of business
inputs and outputs
2- Following is (are) characteristic(s) of
Management
(A) Management is universal
(B) Management is intangible
(C) Management if multi-disciplinary
(D) All of the above
3- Which of the following level of
management performs the function of
identifying the departmental objectives and
guiding the lower level towards the
achievement of these objectives?
(A) Top level Management
(B) Middle level Management
(C) Lower level Management
(D) All of the above
4- Staffing includes the functions of
(A) Development
(B) Placement
(C) Performance appraisal
(D) All of the above
5. Which of the following is true about managers within
an organization?
a. Management skills apply to managers at top levels in an
organization
b. Management skills apply to managers at all levels in an
organization
c. Management skills apply to managers at middle levels in an
organization
d. Management skills apply to managers at executive levels in
an organization
What was Mayo's management belief
after studying the workers at the
Hawthorne plant?
1.Financial incentives are very important for increasing
worker productivity.
2.The opportunity for promotion is very important for
increasing worker productivity.
3.Job satisfaction is very important for increasing worker
productivity.
4.High compensation is very important for increasing worker
productivity.
7.____________ is known as “the father of
scientific management.”

A. Fredrick W. Taylor
B. Henry Fayol
C. Robert Owen
D. None of these
 of managing as the art of
“knowing exactly what you want
men to do and then see that they
do it in the best and cheapest
way”
A. HENRY FAYOL
B. F.W. TAYLOR
C. MARY PARKER FOLLET
D. NONE OFTHESE
Everything which goes to increase the
importance of subordinates role is……………….
A. Decentralization
B. Centralization
C. Either a or b
D. None
…………..is highly suitable for large organizations having
large number of managerial personnel at different levels.

A. Centralization
B. Decentralization
C. Departmentalization
D. All of these
………….principle states that an employee
should receive orders form one superior only
A. Unity of direction
B. Unity of command
C. Esprit de corps
D. None
2 Marks Questions!
1. Define Organization.
2. Define Organization management.
3. Explain Management levels.
4. Mention the role of Managers.
5. What are the various functions of
Management?
6 Marks Questions!- Any One
1. Explain the various functions of management
with examples.
2. Describe in detail Evolution of Management
Theories
3. Explain the various approaches to
management.
Some Video Link for better
understanding
https://www.youtube.com/watch?v=q6LMjurECZM
https://www.youtube.com/watch?v=dTzSkz9yrWo

https://www.youtube.com/watch?v=o4XX90lqT6E
https://www.youtube.com/watch?v=fei2WVqEykM