Dr Zain Yusafzai

Management Science Practice & Theory

Chapter 1 (page3-35)

Management The art of getting things done through people Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims. Basic definition needs to be expanded All managers carryout managerial functions of planning, organizing, staffing, leading and controlling Management applies to all kinds of organizations and managers at all levels of organization t is concerned with productivity, which implies effectiveness and efficiency !ob of managers is to create surplus Functions of Management "oncepts, principles, theory and techni#ues of management are grouped into five functions $lanning, %rganizing, &taffing, 'eading and "ontrolling. (owever, managers must be responsive to external environment) *conomic, technological, social, ecological, political, and ethical
Managerial Skills & Organizational Hierarchy
$ll managers carry out managerial functions %ut the time spent for each function may !iffer

Time spent in carrying out managerial functions

Hi e ra r ch y
Top Mgmt #ontrolling
Or ga niz in g

Pla nnin g

Or g

First line super i sor

Top Management spends more tim e on planning & organizing First line managers spend more time in leading

Skills an! Organizational Hierarchy

Skills & management le els
'atz i!entifie! ( skills for a!ministrators De sign skill can %e a!!e!
#onceptual & Design Skills

Top Management

Mi!!le Management

Human Skills

Technical Skills

Super isors

Percentage of &o%

Skills Required by Manager +echnical, (uman, "onceptual, ,esign, and "ommunication &kills
Principles of Management Heinz eihrich! Harold "oontz! Mar# $% Cannice

"e a

Mi! le el manager

!in g

Dr Zain Yusafzai

Management Science Practice & Theory

Chapter 1 (page3-35)

Goals of Managers and Organizations Aim of managers is to create a surplus by establishing an environment in which people can accomplish group goals with least amount of time, money, materials and personal dissatisfaction. +o be successful in the -.st century companies must take advantage of + especially the internet and globalization roducti!ity" #ffecti!eness and #fficiency$ Another aim is to raise productivity roducti!ity% %utput//input ratio within a time period with due consideration for #uality. $roductivity can be improved by increasing outputs with same inputs, decreasing inputs 0 maintaining same outputs and increasing outputs 0 decreasing inputs to change ratio roducti!ity implies *ffectiveness 0 efficiency in individual 0 %rg performance *ffectiveness1 Achievement of ob2ectives and *fficiency1 Achievement of ob2ectives with least amount of resources 0 time Managing Science or &rt$ Managing as practice is an art. %rganized knowledge underlying the practice is science. &cience and art are complementary Management is &rt$ t is known how. t is doing things in the light of realities of a situation. *lements of art include $ersonal &kills, $ractical 3now 4 (ow, 5esult %rientation, "reativity. Analysis of management practices against elements of Arts suggests that as a practice management is art #lements of Science &cience is a systematized body of knowledge pertaining to a particular field. t contains principles and theories developed through continuous observation experimentation and research. $rinciples have universal application and they are verifiable and lead to predictable results. +he organized body of knowledge can be taught and learnt Management: 6hen reviewed against elements of science1 Management is doing things in the light of realities of a situation. Managers can work better by using organized knowledge Management is also a systematic body of knowledge t contains principles and theories developed over long periods of time after continuous observations, experimentations and research. +hese principles also have universal application and can be verified. +herefore management as knowledge is science and its application is Art. Evolution of Management Thought Scientific Management #ra '(p to )**+,
Principles of Management Heinz eihrich! Harold "oontz! Mar# $% Cannice

Dr Zain Yusafzai

Management Science Practice & Theory

Chapter 1 (page3-35)

+he art of management has ancient routes. +he moment people began to live and work together organization and management came into existence Modern management thought has developed through several stages -lassic &pproach ')*.+/)0.+, Approach was evolved in early part of -7th century. Many managers, to some extent, accept 0 practice even today. Main points of approach are1 $rinciples of management can be developed and implemented to make the organization effective Management principles have universal application with slight modification to suit various situations. Scientific Management &pproach$ ')0.+/)01+, 8redrick +aylor is the pioneer of &cientific Management Approach. (is principles of scientific management are1 ,evelop a true science for each element of a workers 2ob to replace the old rule of thumb method ,ivision of labor should be a part of each 2ob &cientific selection, training and development of workers should be done to improve the efficiency +here should be closed cooperation between management and workers 6orkers should work for maximum output in place of restricted output 2uman Relations approach "lassical approach 0 scientific approach failed to recognize importance of human element in Mgmt. $eople were treated in rational and mechanistic terms Ignoring their social & psychological needs (uman relation approach emphasizes that1 A worker is not purely rational economic being. (e has emotions and feelings Management is responsible to recognize and satisfy the social and psychological needs of workers in order to win their willing cooperation 6hen workers are satisfied 0 motivated productivity 0 efficiency would increase 3eha!ioral Science &pproach An extension of human relation approach) t focuses on study of attitude, behavior 0 performance of individual and groups in organization. Based on belief that work is primarily source of satisfaction 0 motivation) t is the responsibility of management to use potentials of people by crafting a healthy work environment, $hysical, social 0 psychological #!olution Of Management Thoughts Fredrick Taylor ')*14/)0)5 3

Principles of Management Heinz eihrich! Harold "oontz! Mar# $% Cannice

Dr Zain Yusafzai

Management Science Practice & Theory

Chapter 1 (page3-35)

(is primary concern was to increase productivity through efficiency and use of scientific methods. (is principles emphasized using science, creating group harmony 0 cooperation and achieving maximum output 0 development of worker rinciples 5eplacing rule of thumb with science %btaining harmony in group action, rather then discard. Achieving cooperation of human being, rather than chaos 6orking for maximum output rather than restricted output ,eveloping all workers to the possible extent the their own 0 companys highest prosperity 2enry Gantt ')*4)/)0)0, (e emphasized the need for understanding between the management and labor. (e stressed upon importance of teaching development and understanding of system on the part of both labor and manager Frank ')*4*/)056, 7 8illian 3ilbreth ')*9*/)095,$ 8rank is known primarily for his time 0 motion studies whereas 'illians focus was on human aspects of work and understanding of workers personalities and needs. 2enry Fayol ')*6)/)051$ According to him there are six industrial activities) +echnical 9$roduction:, "ommercial 9selling:, 8inancial, &ecurity, Accounting 9&tatistical data:, Managerial 8unction. (e is considered as father of modern management theory rinciples$ ,ivisions of work, Authority and responsibility, ,iscipline, ;nity of commands, ;nity of ,irections, &ubordinations of individual over general interest, 5emuneration, "entralization, &calar chain, %rder , *#uity, &tability of tenure, nitiative, *spirit de corps Mintzberg:s Managerial Roles ); <nterpersonal Figure Head$ &ymbolic head) obliged to perform a number of routine duties of a legal or social nature Leader: 5esponsible for motivation 0 activation of subordinates responsible for staffing, training 0 associated duties Liaison: Maintains self developed network of outside contacts and informers who provide favors and information 5; <nformational Monitor: &eeks 0 receives wide variety of special information 9much of it current: to develop thorough understanding of %rg 0 environment. *merges as nerve center of internal and external information about the organization Disseminator: +ransmits information received from outsiders or from other subordinates to members of organization ; &ome information is factual) some
Principles of Management Heinz eihrich! Harold "oontz! Mar# $% Cannice

Dr Zain Yusafzai

Management Science Practice & Theory

Chapter 1 (page3-35)

involves interpretation and integration of diverse value, positions of organization, influencers Spo esperson: +ransmits information to outsiders on organizations plans, policies, actions, results, etc. &erves as expert on organizations industry .; =ecisional Entrepreneur: &earches organization and its environment for opportunities and initiates improvement pro2ects to bring about change. &upervises design of pro2ects Distur!ance Handler: 5esponsible for corrective action when organization faces important, unexpected disturbance; "esource #llocator: 5esponsible for the allocation of organizational resources of all kinds. n effect, making or approval of all significant organizational decisions $egotiator: 5esponsible for representing the organization at ma2or negotiations. Systems &pproach to Management %rganized enterprise does not exist in the vacuum, t is dependent on the external environment. t receives inputs, transforms them and exports the out puts to the environment Reenergizing the System <nputs Transformati onal rocess #>ternal #n!ironment Output s

-omponents of System Inputs: (uman, "apital, +echnology %utput: $roduct, &ervices Environment: "onsumers, &uppliers, &tock (olders, <overnment, &ociety "eenergi&ing the system: 8ollowing become human inputs and profit reinvested1 &atisfaction and knowledge of employees, Buying of Machinery and *#uipment, "onstruction of Building Inputs and 'laimants Inputs: nputs are transformed through managerial functions of planning, organizing, staffing, leading 0 controlling

Principles of Management Heinz eihrich! Harold "oontz! Mar# $% Cannice

Dr Zain Yusafzai

Management Science Practice & Theory

Chapter 1 (page3-35)

Inputs and 'laimants: nputs from external environment may include people, capital 0 managerial skills. n addition various groups of people make demands on the enterprise The Managerial Transformation (rocess: t is the task of managers to transform inputs in an effective and efficient manner into outputs. +his is done through managerial functions of planning, organizing, and staffing etc. E)ternal *aria!les$ *ffective managers regularly scan external environment they may not have power to change external environment. +hey have no alternative but to respond to it %utputs: Managers secure and utilize inputs to the enterprise and +ransform them through managerial function with due consideration for external variables into outputs "eenergi&ing the system: n the systems model of operational management some of the outputs become inputs again. +hus satisfaction or new knowledge or skills of employees become important human inputs *ven profits are reinvested in the form of "ash, *#uipment, and Building 0 Machinery The 'ommunication System: "ommunication is essential to all phases of managerial process for two reasons. 8irst, it integrates managerial functions. &econd, it links enterprise with external environment where many of claimants are.

#ommunication )ntegration *+ternal *n ironment

Planning

Staffing

#ontrolling

Functions of Management (lanning:

Principles of Management Heinz eihrich! Harold "oontz! Mar# $% Cannice

Dr Zain Yusafzai

Management Science Practice & Theory

Chapter 1 (page3-35)

+he process of setting organizational goals and deciding in advance the action taken to achieve these goals nvolves &electing missions, %b2ectives 0 Actions to achieve them All conditions like available resource, environment, alternatives, +ime are carefully analyzed before making decision about future course of action from amongst alternatives

%rgani&ing: +he process of assembling and coordinating human, financial, and physical and other resources needed to achieve the organizational goals... *stablishing an intentional structure of roles for people to fill in an organization $eople working in an %rg must have a role to play. 5ole may be big or small but due importance and recognition must be given to it. 8or better management of an organization, it is essential to place the right man for the right 2ob; Staffing: +he process of filling all positions 0 keeping them filled. t involves 5ecruiting, &electing, $lacing, $romoting, "ompensating 0 +raining employees Leading: $rocess of stimulating people to high performance t involves directing, Motivating 0 "ommunicating to employees to influence them to achieve organizational goals 'ontrolling: *valuating and correcting individual performance to ensure that events conform to plans. t is important to monitor progress of events. f ob2ectives are not being achieved and $erformance is not up to the mark, remedial measures must be taken. ,eviation from ob2ectives, short comings 0 other observations must be given due consideration. All causes be evaluated 0 resolved as re#uired 'oordination "omplete harmony must be achieved among individual efforts towards accomplishment of group goals

Principles of Management Heinz eihrich! Harold "oontz! Mar# $% Cannice