MANAGEMENT THEORY AND PRACTICE Summary of session-1 date: 04-07-2013 Any organization around the world generally faces

four main issues which are as follows: How to plan- get things done? How to organize-effective and efficient? How to lead and motivate? How to control? MANAGEMENT DEFINITION: There are many definitions for management but the best definition is as follows: The art of getting things done by others effectively and efficiently We have also discussed many examples relating to management and also the loss suffered by companies due to their inefficient management. The examples are as follows: Mc Neil Motrin (pain killer): failed in controlling part. But by the time of recognizing, the product was already dispatched which lead them to purchase their own product with huge amount. Ford Figo: a technical problem which leads them to get back all the sold cars for the fixation

at a huge cost (1.6m$ approximately). FedEx tie-up with Boeing for an efficient delivery etc

Summary of session-2 date: 08-07-2013 In this class we discussed about the nature of management. We discussed the nature of management by linking its features with many examples such as maruthi suzuki, kfc etc. The nature of management can be described with the following features. 1.Universal: for any organized activity irrespective of size and type, management is necessary. Management is not only limited to large organizations or big companies it is universal. Any organized activity involving more than one person requires management. It can be a family, sport team, army etc requires management. Hence we can say that management is pervasive in nature. 2.Purposeful: management is a purposeful activity. It works to achieve some predetermined goals or objectives.

3.Unifying in nature: management is not a subject of its own. It is dynamic in nature and it is a combination of sociology, psychology, economics, anthropology etc. management doesnt have any standard formulas like physics and chemistry which gives a result that is predetermined. The application of management is different in different fields. 4.Continuous: management is continuous in nature. As long as the organization is in existence management follows like a shadow. As mentioned earlier it is dynamic in nature. 5.Creative: this feature can be explained with KFC in vizag. There is only one kfc restaurant in vizag which is having a huge demand. The place is overcrowded on almost all weekends and has a decent crowd in week days. The management of kfc doesnt want to start a separate branch for managing the crowd. They have come up with a home delivery idea which catered the needs of software employees which in turn increased their sales, able to manage the crowd and most importantly satisfying more requirement than before. Hence here the idea home delivery is creative which helped them to overcome their problems. 6.Professional: not only qualified professionals

have the ability to manage. No matter with the qualification of the individual it depends completely on his intellectuality, problem solving capacity and a perfect time management. Best example for this feature is BILL GATES who is known for one of the best managers. 7.Intangible: we cant touch or see management. It is invisible. It largely depends on the individual who delivers or performs it. 8.Social cause: management is done by people, through people and for people. Human factor is most important element in management. By studying above all the points we can say that management is an art and science as well. There are some theories in management and also many scientists have given many definitions which are being practiced and studied till now. Hence we can say management is a science. since we are following those theories for training etc. But this is not a subjects limited to books. This knowledge should be applied practically which means an art. Hence management is both art and science.

Summary of session-3 date: 11-07-2013 Functions and principles of management along with case study of veerendra pandey. Generally management is defined as planning, organizing, leading and controlling of organizational activities. Explaining each function in detail: Planning: bridging the gap between where we are and where we want to be in future. Planning is the basic function of any organization to achieve goal. The other functions organizing, leading and controlling follow planning. The other three functions come in to play once the planning is done. Organizing: it is the second function of management. Management must organize all its resources in order to implement the course of action it determined in the planning process. Through the process of getting organized, management will determine the internal organizational structure as well as allocate necessary resources. Leading: The third function of management is directing. The leaders should have the capability to direct their groups or subordinates in achieving the organizational goals. So they should have the capacity to influence the people under them. This influence can be gained through motivation, communication. Controlling: the fourth function of management

which checks whether the planned objectives are met or not. These four functions were discussed along with veerendra pandey case analysis, where pandey is a successful engineer but he could not convert in to a successful manager.

Summary of session-4 date: 15-07-2013 Evolution of management: Generally we all feel that management has come in to existence around 150 years back but that is wrong completely. All the way it started in 4000-4500 BC with the Sumerians. The Ubaidians were the first civilizing force in Sumer, draining the marshes for agriculture, developing trade, and establishing industries, including weaving, leatherwork, metalwork, masonry, and pottery. Hence we can say that management has started from that point of time. And coming forward we also heard the story of Khufu who played a master role in the construction of his pyramid. Hence we can say that management is being followed long back. Scientific management: Father of scientific management is Fredrick w Taylor (1856-1915)

Short story about scientific management Actually Scientific management theory arose in part from the need to increase productivity. In the United States especially, skilled labour was in short supply at the beginning of the twentieth century. The only way to expand the productivity was to raise the efficiency of workers. Hence scientific management came in to existence. About Taylor: Taylor was a person who was settled as a CEO from an employee. It is only his thinking and thought process which helped him to reach that position. Taylor was considered as father of scientific management. Taylor initiated a concept called fair day job.

Fair day job says that: If an employee contributes more to the organization then he will have more earnings. Contribute in the sense work contribution or the effort he puts in. and also the more the employee works or contribute the more he gain knowledge. He also broke job in to components and designed the quickest and best method of performing each components. In this way he established. FW Taylor has said four principles: Every employee should understand the element

of science of a job. Identify the skills, training and allow developing and finally increasing the efficiency of employees. There should be cooperation between the owner and employee. Division of responsibility. Gantt chart: Henry L. Gantt (1861-1919) Henry Gantt worked along with Taylor found some back draws in Taylor initiatives which lead him to initiate his own incentive system. Abandoning the differential rate system as having too little motivational impact Gantt came up with new idea. Every worker who finished days assigned work load win 50 percent bonus. Then he added a second motivation the supervisor would earn a bonus for each worker who reached the daily standard. A chart would record every workers progress In case the workers contribution fall below the standard he is paid lesser

Summary of session-5 date: 18-07-2013 Different schools of management thoughts (continuation to previous class) So we saw about the scientific management in detail now let us see the contributions that are made by scientific management. The main contributions are: Increase in the productivity (i.e.) the rate of production has increased due to the incentives systems which motivated the employee to perform much faster. As the productivity raises the profits of the organization also rises. Hence scientific management has also contributed to the growth of profits. But there are also some limitations and they are as follows: We can say scientific management is more employee oriented. The theory says that employee is the root for the success of the organization. Hence the limitations will be as follows More work leads employee to become frustrated, pressure. Since the employee works faster there are chances of mistakes or accidents.

Classical Organization Theory School: Henry Fayol is the founder of Classical Organization Theory School. Fayol's work was one of the first comprehensive statements of a general theory of management. He proposed that there were six primary functions of management and 14 principles of management. Functions of management 1. to forecast and plan 2. to organize 3. to command or direct 4. to coordinate 5. to develop output 6. to control 14 Principles of management: 1. Division of work: Work should be divided among individuals according to their skills and talents. Division of work helps to get better productivity than the traditional method of production. 2. Authority: authority is the right to give orders for employees by the employer. But the employer who holds authority also holds responsibility for his group performance.

3. Discipline: Employees must obey and respect the rules that govern the organization. Good discipline is the result of effective leadership and a clear understanding between superior and subordinate. 4. Unity of command: One boss, one command. 5. Unity of direction. Each group of organisational activities that have the same objective should be directed by one manager using one plan. 6. Subordination of individual interests to the organization interest: simply management by objective concept 7. Remuneration: Workers must be paid a fair wage for their services and also a strong motivation for employees for their productivity. 8. Centralisation. Centralisation refers to the degree to which subordinates are involved in decision making. 9. Scalar chain. The line of authority from top management to the lowest ranks represents the scalar chain. The flow of commands should be in this direction. 10. Order: having resources at right place and at right time. 11. Equity: Managers should be kind and fair to their subordinates. No kind of discriminations.

12. Stability of staff: employee turnover is a huge minus for organization. So organization must have a proper plan so that they can substitute the employees in time if there is a turnover. 13. Initiative 14. Esprit de corps: Simply, team work makes unity and builds good relations in organization.

Bureaucratic School: Max Weber Weber stated that; The employees of the organization must be hired basing on their qualification. The employees in an organization should be promoted based on their progress, work, and merit. The authority in an organization should flow from top to bottom level without any disturbances. (Chain of command) Managers separate from owners. Work should be divided among individuals according to their skills and talents.(division of work) All members in organization are subjected to

similar rules and procedures. (Impartial application of rules and procedures) Behavioural school: Elton Mayo This theory states that: It is the manager responsibility to see that the organization is free from conflicts (i.e.) the relationship in the organizations are conflict free. Satisfying the psychological needs of employee should be the basic concern for the organization. Abraham Maslow said that satisfaction of lower needs gives rise to new needs which are superior to the satisfied needs. Douglas MC Gregor explained about theory x and theory Y people where theory-x people are assumed to be lazy and they avoid work and on the other hand theory-y people are ambitious, self motivated and exercise self control. Systems theory: It views organization in an integrated way. Employees in the organization work together for achieving a common goal. Chester Barnard views formal organization as a system of coordinating the activities of two or more person able to communicate, willing to contribute and efforts to accomplish a common task.

The above definition resembles the management by objectives. Herbert Simon model for decision making Intelligence---design---choice---implementation (in vertical order) Contingency theory: Contingency theory Contingency approach is most applied in the activities of motivating, leading and structuring the organization It is a class of behavioural theory that claims that there is no best way to organize a corporation, to lead a company, or to make decisions. They suggested that previous theories such as Weber's bureaucracy and Taylor's scientific management had failed because they neglected that management style and organizational structure were influenced by various aspects of the environment such as: Technology Supplier, distributor Government