INTRODUCTION

MANAGEMENT- Management is an
essential part of any goal oriented
activity.
Management is an art of getting things
done by the people and through the people
in order to achieve common goals more
efficiently and effectively..
Management is the process of planning and
organizing the resources and activities of a
business to achieve specific goals in the
most effective and efficient manner possible
 Traditional Definition
 “Management is the art of
getting things done by others”.
Criticism of traditional view :
1) It give the impression of the
manipulative character of the
practice of management.
2) The employees are merely
treated as means for getting
results.
3) The need and aspiration of the
workers have been ignored. The
workers are supposed to work like
machine.
 Modern definition
-EFFECTIVE UTILISATION OF RESOURCES.

 “Management is the process of working with and

through others to effectively achieve organisational
objectives by effectively utilizing the LIMITED
RESOURCES in the changing environment.

 Process- the term process in the definition means the

primary functions or the activities to get things done.
 Effectiveness
 Efficiency
 Organisational objectives
Nature and characteristics of
management
1. Management is goal oriented-
2. Management is continuous process
3. Management is coordinative force
4. Management is intangible force
5. Management is a part of Group efforts
6) Management accomplishes results
through the cooperation of others
7) Management balances effectiveness and
efficiency
8) Management is a dynamic discipline.
9) Management is pervasive.
Objectives of Management
1. Maximum result with minimum efforts
2. Higher efficiency
3. Satisfaction with customer
4. Better workforce
5. Relation with supplier
6. Better working condition
7. Contribution to national goals
Importance of Management
1. Accomplishment of goals
2. Effective utilization of resources
3. Sound organisation
4. Providing vision and foresight
5. Harmony in work
6. Help the employees in achieving personal
objectives.
7. Development of society and nation.
Management: Skills, levels
Functions
Management is the process of effective
utilisation of human and other resources for
the accomplishment of organisational
objectives.
FUNCTIONS OF PROFESSIONAL MANAGERS
1. PLANNING
2. ORGANISING
3. STAFFING
4. DIRECTING AND LEADING
5. CONTROLLING
PLANNING
 It is the basic function of management. It
deals with chalking out a future course
of action & deciding in advance the
most appropriate course of actions for
achievement of pre-determined goals.
 According to KOONTZ, “Planning is
deciding in advance - what to do, when to
do & how to do. It bridges the gap from
where we are & where we want to be”. A
plan is a future course of actions. It is an
exercise in problem solving & decision
making.
 ORGANISING
 It is the process of bringing together physical, financial
and human resources and developing productive
relationship amongst them for achievement of
organizational goals.
 According to Henry Fayol, “To organize a business is to
provide it with everything useful or its functioning i.e.
raw material, tools, capital and personnel’s”. To organize
a business involves determining & providing human and
non-human resources to the organizational structure.
Organizing as a process involves:
1. Identification of activities.
2. Classification of grouping of activities.
3. Assignment of duties.
4. Delegation of authority and creation of responsibility.
5. Coordinating authority and responsibility relationships.
 STAFFING
 The main purpose of staffing is to put right man/woman on
right job i.e. square pegs in square holes and round pegs in
round holes. According to Kootz & O’Donell, “Managerial
function of staffing involves manning the organization
structure through proper and effective selection, appraisal &
development of personnel to fill the roles designed un the
structure”. Staffing involves:
1. Manpower Planning (estimating man power in terms of
searching, choose the person and giving the right place).
2. Recruitment, Selection & Placement.
3. Training & Development.
4. Remuneration.
5. Performance Appraisal.
6. Promotions & Transfer.
DIRECTING AND LEADING
Direction is that inter-personnel aspect of
management which deals directly with
influencing, guiding, supervising,
motivating sub-ordinate for the
achievement of organizational goals.
Direction has following elements:
1. Supervision
2. Motivation
3. Leadership
4. Communication
 CONTROLLING
According to Theo Haimann, “Controlling is
the process of checking whether or not
proper progress is being made towards the
objectives and goals and acting if
necessary, to correct any deviation”.
1. Establishment of standard performance.
2. Measurement of actual performance.
3. Comparison of actual performance with
the standards and finding out deviation if
any.
4. Corrective action.
LEVELS OF MANAGEMENT
 The term “Levels of Management’ refers
to a line of demarcation between
various managerial positions in an
organization. The number of levels in
management increases when the size of
the business and work force increases and
vice versa. The level of management
determines a chain of command, the
amount of authority & status enjoyed
by any managerial position.
 Top Level of Management

It consists of board of directors, chief executive or managing

director. The top management is the ultimate source of
authority and it manages goals and policies for an enterprise. It
devotes more time on planning and coordinating functions.
The role of the top management can be summarized as follows –

1. Top management lays down the objectives and broad

policies of the enterprise.

2. It issues necessary instructions for preparation of

department budgets, procedures, schedules etc.

3. It prepares strategic plans & policies for the enterprise.

4. It appoints the executive for middle level i.e.

departmental managers.

5. It controls & coordinates the activities of all the

departments.

6. It is also responsible for maintaining a contact with the

Middle Level of Management
The branch managers and departmental managers constitute middle
level. They are responsible to the top management for the functioning
of their department. They devote more time to organizational and
directional functions. In small organization, there is only one layer of
middle level of management but in big enterprises, there may be senior
and junior middle level management. Their role can be emphasized as -
1. They execute the plans of the organization in accordance with the
policies and directives of the top management.
2. They make plans for the sub-units of the organization.
3. They participate in employment & training of lower level management.
4. They interpret and explain policies from top level management to lower
level.
5. They are responsible for coordinating the activities within the division or
department.
6. It also sends important reports and other important data to top level
management.
7. They evaluate performance of junior managers.
8. They are also responsible for inspiring lower level managers towards
better performance.
 Lower Level of Management
Lower level is also known as supervisory / operative level of
management. It consists of supervisors, foreman, section officers,
superintendent etc. According to R.C. Davis, “Supervisory
management refers to those executives whose work has to be largely
with personal oversight and direction of operative employees”. In
other words, they are concerned with direction and controlling
function of management. Their activities include -
1. Assigning of jobs and tasks to various workers.
2. They guide and instruct workers for day to day activities.
3. They are responsible for the quality as well as quantity of
production.
4. They are also entrusted with the responsibility of maintaining good
relation in the organization.
5. They communicate workers problems, suggestions, and
recommendatory appeals etc to the higher level and higher level
goals and objectives to the workers.
6. They help to solve the grievances of the workers.
7. They supervise & guide the sub-ordinates.
8. They are responsible for providing training to the workers.
9. They arrange necessary materials, machines, tools etc for getting
the things done.
 MANAGERIAL SKILLS
1. TECHNICAL SKILLS
2. HUMAN SKILLS
3. CONCEPTUAL SKILLS(Interrelatedness
between different part of organisation)
4. ANALYTICAL SKILLS (Problem solving and
decision making)
5. ADMINISTRATIVE SKILLS
EVOLUTION OF MANAGEMENT
THOUGHTS
Evolution of Management -Classical School
of Management thought; Scientific
Management, Principles and Techniques
Evolution of Management -Classical School
of Management thought; F.W. Taylor’s work
Max Weber’s theory and Human relations
approach ( Hawthorne studies)
Behavioural approach and Systems
Approach
System Approach, Contingency approach
 Classical theory
 They emphasis on the planning of work, the technical
requirement of the organisation, principles of
management, and the assumption of rational and
logical requirement.
CRITICISM OF CLASSICAL THEORY
1. NARROW VIEW OF ORGANISATION
2. ASSUMPTION OF CLOSED SYSTEM
3. COMMODITY APPROACH
4. ECONOMIC MOTIVE AS MAIN MOTIVATOR
5. EXCESSIVE EMPHASIS ON RULES AND REGULATION
 SCIENTIFIC MANAGEMENT
APPROACH
Principles of Scientific Management by
Taylor:
1. F.W. Taylor or Fredrick
Winslow Taylor, also known as
the ‘Father of scientific
management’ proved with his
practical theories that a scientific
method can be implemented to
management.
2. Taylor gave much concentration
on the supervisory level of
management and performance of
managers and workers at an
operational level.
 HE EMPHASIS ON FOLLOWING PRINCIPLES
1. Science, not the Rule of Thumb
2. Harmony, Not Discord
3. Mental Revolution
4. Cooperation, not Individualism
5. Development of Every Person to his Greatest
Efficiency

CRITICISM
1. CONFINED
2. EXPLOIT LABOUR
3. ECONOMIC RATIONAL BEING
BUREAUCRACY(MAX WEBER
THEORY)
His primary contribution includes his theory
of authority structure and his description of
org. based on the nature of authority
relations within them.

According to him there are 3 types of

authority

a. Rational legal authority

b. Traditional authority
c. Charismatic authority
FEATURES:

1. Division of work
2. Hierarchy of positions
3. Rules and regulations
4. Impersonal conduct
5. Staffing
6. Technical competence
7. Official records
 MANAGEMENT PROCESS OR ADMINISTRATIVE MANAGEMENT
APPROACH
 Henri fayol defined management in terms of certain functions and then
laid down 14 principles of management which according to him have
universal applicability.
 1. Division of Work-
 Henri believed that segregating work in the workforce amongst the
worker will enhance the quality of the product. Similarly, he also
concluded that the division of work improves the productivity,
efficiency, accuracy and speed of the workers. This principle is
appropriate for both the managerial as well as a technical work level.
 2. Authority and Responsibility-
 These are the two key aspects of management. Authority facilitates the
management to work efficiently, and responsibility makes them
responsible for the work done under their guidance or leadership.
 3. Discipline-
 Without discipline, nothing can be accomplished. It is the core value for
any project or any management. Good performance and sensible
interrelation make the management job easy and comprehensive.
Employees good behaviour also helps them smoothly build and
progress in their professional careers.
 4. Unity of Command-
 This means an employee should have only one boss and follow
his command. If an employee has to follow more than one boss,
there begins a conflict of interest and can create confusion.
 5. Unity of Direction-
 Whoever is engaged in the same activity should have a unified
goal. This means all the person working in a company should
have one goal and motive which will make the work easier and
achieve the set goal easily.
 6. Subordination of Individual Interest-
 This indicates a company should work unitedly towards the
interest of a company rather than personal interest. Be
subordinate to the purposes of an organization. This refers to the
whole chain of command in a company.
 7. Remuneration-
 This plays an important role in motivating the workers of a
company. Remuneration can be monetary or non-monetary.
However, it should be according to an individual’s efforts they
have made.
 8. Centralization-
 In any company, the management or any authority responsible
for the decision-making process should be neutral. However,
this depends on the size of an organization. Henri Fayol
stressed on the point that there should be a balance between
the hierarchy and division of power.
 9. Scalar Chain-
 Fayol on this principle highlights that the hierarchy steps should
be from the top to the lowest. This is necessary so that every
employee knows their immediate senior also they should be
able to contact any, if needed.
 10. Order-
 A company should maintain a well-defined work order to have a
favourable work culture. The positive atmosphere in the
workplace will boost more positive productivity.
 11. Equity-
 All employees should be treated equally and respectfully. It’s
the responsibility of a manager that no employees face
discrimination.
 12. Stability-
 An employee delivers the best if they feel secure in
their job. It is the duty of the management to offer job
security to their employees.
 13. Initiative-
 The management should support and encourage the
employees to take initiatives in an organization. It will
help them to increase their interest and make then
worth.
 14. Esprit de Corps-
 It is the responsibility of the management to motivate
their employees and be supportive of each other
regularly. Developing trust and mutual understanding
will lead to a positive outcome and work environment.
NEO CLASSICAL THEORY
A) HUMAN RELATION
APPROACH
The human relations
approach is also known
as New Classical approach.
Elton Mayo termed it Clinical
approach. It attempts to
explain the informal relations
among employers and
employees are concerned with
moral and psychological
rather than legal aspects of an
organization.
Factor affecting human
relations
HAWTHRONE STUDIES
CONTRIBUTION OF HUMAN
RELATION APPROACH
 SOCIAL SYSTEM
SOCIAL ENVIRONMENT
INFORMAL ORGANISATION
GROUP DYNAMICS
INFORMAL LEADER
COMMUNICATION
NON ECONOMIC REWARD
CONFLICTS
CRITICISM OF HUMAN RELATION APPROACH

OVER EMPHASIS ON GROUP

OVER STREACHING OF HUMAN RELATIONS
LIMITED FOCUS ON WORK
NEGATIVE VIEW OF CONFLICTS B/W ORG
AND INDIVIDUAL GOALS
SYSTEM APPROACH
By a systems approach to management is
meant the study of a firm in its totality
so that the men and material
resources of the firm can be organized
to realize the firm's overall objectives
as efficiently as possible.
FEATURES
OPEN SYSTEM
ADAPTIVE SYSTEM
INTERDEPDENT SUB SYSTEM
WHOLE ORGANISATION
SYNERGY
MULTI DISCIPLINARY
CONTIGENCY APPROACH
A contingency approach to management
is based on the theory that
management effectiveness is
contingent, or dependent, upon the
interplay between the application of
management behaviors and specific
situations. In other words, the way you
manage should change depending on the
circumstances. One size does not fit all.
MANAGEMENT BY OBJECTIVE(MBO)
FEATURES OF OBJECTIVE
1. MAJOR AND DERIVATIVE OBJECTIVE
2. TIME DIMENSION OF OBJECTIVES
3. HIERARCHY OF OBJECTIVE
4. NETWORK OF OBJECTIVE
STEPS IN MBO
 DEFINING OVERALL
CORPORATE OBJECTIVES
 SETTING
DEPARTMENTAL GOALS
 SETTING OF TARGET
FOR INDIVIDUALS
 ESTABLISHING CHECK
POINTS
 REVIEW OF
PERFORMANCE
 EMPLOYEE
COUNSELLING
DIFFICULTIES IN MBO
 HESITATION TO CHANGES
 LACK OF PREPARATION
 IMPOSITION OF GOALS
 NON QUANTIFABLE TARGETS
 UNNECESSARY PAPERWORK
 LENGHTY PROCESS

HOW TO MAKE MBO EFFECTIVE

 TOP LEVEL COMMITMENT

 TRAINING OF MANAGERS
 CLARITY OF PURPOSE
 ENCOURAGEMENT OF PARTICIPATION
 OVER ALL INTEGRATION
Business Process Reengineering (BPR)

Your company is making great progress.

You’re meeting goals easily, but the way
you meet goals is where the problem is.
Business processes play an important role
in driving goals, but they are not as
efficient as you’d like them to be.
Making changes to the process gets more
and more difficult as your business grows
because of habits and investments in old
methods. But in reality, you cannot improve
processes without making changes.
Processes have to be reengineered
carefully since experiments and mistakes
Five steps of business process reengineering (BPR

1. Map the current state of your business

processes
2. Analyze them and find any process gaps
or disconnects
3. Look for improvement opportunities and
validate them
4. Design a cutting-edge future-state
process map
5. Implement future state changes and be
mindful of dependencies
The problem with BPR is that the larger you
are, the more expensive it is to implement.
A startup, five months after launch, might
undergo a pivot including business process
reengineering that only has minimal costs
to execute.
However, once an organization grows, it
will have a harder and more expensive time
to completely reengineer its processes. But
they are also the ones who are forced to
change due to competition and unexpected
marketplace shifts.