M & E Unit - 1

UNIT - 1
MANAGEMENT:

7 Hours

1.1 Introduction;
1.1.1

Meaning

1.1.2

Nature

1.1.3

Characteristics of Management

1.2.1 Scope of management

1.2.2 Functional areas of management
1.3 Management as a science, art of profession
1.4 Management & Administration
1.5 Roles of Management
1.6 Levels of Management
1.7 Development of Management Thought early management approaches Modern
management approaches.

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1.1 Introduction
1.1.1 Definitions & Meaning of Management:

Management is the art of getting things done through people.

Management as a process Consisting of planning, organizing, actuating (directing) and

controlling, performed to determine and accomplish the objectives by use of people and
resources.

According to Koontz, Management is the process of designing and maintaining an environment

in which individuals, working together in groups, accomplish efficiently selected aims".

Frederick W. Taylor defines management as the art of knowing what you want to do and then
seeing it done. In the best and cheapest wayby securing maximum use of men and
machines."

Terry defines that "Management is the distinct process consisting of planning, organizing,
actuating and controlling, utilizing in both science and art, and followed in order to accomplish
predetermined objectives.

According to Lawrence Appley "Management is the accomplishment of results through the

efforts of people"

Peter Drucker view Management as a multipurpose organ that manages a business and manages
managers and manages workers and work"

1.1.2 Nature of Management

Management is intangible : Management is intangible, i.e. it can be felt in the form of results and not
see. E.g. when we are not able to produce the desired quantity, we say it is the result of poor
management.
Existence of Objectives: The existence of objectives is a basic criterion of every human organization.
The organizational objectives are the desired state of affairs which an organization attempts to realize.
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This realization of objectives is sought through the coordinated efforts of the people constituting an
organization.
Decision-making: Management process involves decision making at all levels. Decision-making
describes the process by which a course of action is selected as the way to deal with a specific problem.
If there is only one alternative, the question of decision making does not arise. The quality of alternatives
which a manger selects determines the organizations performance, and the future of the organization.
Relationship among resources: The essence of management is integration of various organizational
resources. Resources include money, machine, materials, and people. Management is concerned with the
proper utilization of human resources which, in turn, utilize other resources.
Working with and through people: Management involves working with people and getting
organizational objectives achieved through them. Working through people is interpreted in terms of
assigning activities to subordinates.

1.1.3 Characteristics of management:

Management is defined by various authors. They have emphasized different aspects of mgt. An analysis
of

various

definitions

reveals

the

following

characteristics

of

mgt.

1. Management is a group activity: - Management is an essential part of group activity. As no individual

can satisfy all his desires himself, he units with his fellow- being and works in an organized group to
achieve what he cannot achieve individually.
2. Management is goal-oriented: - Management aims to achieve economic and social objective. It exists
to achieve some definite goals or objectives. Group efforts in management are always directed toward
the achievement of some pre-determined goals.
3. Management is a factor of production: - Just as land, labor and capital are factor of production and are
essential for the production of goods and services.
4. Management is universal in character: - Management is applicable in all types of organization.
Whenever there is human activity, there is management. The basic principle of management are
universal application and can be applied in all organization whenever they are business, social, religious,
cultural, sport, educational, politics or military.
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5. Management is needed at all levels of the organization: - Another important feature of management is
that it is needed at all levels of the organization, e.g. top level, middle level and supervisory level. The
only difference is of the nature of task and the scope of authority.
6. Management is a distinct process: - Management is a distinct process performed to determine and
accomplish started objective by the use of human beings and other resources. It is different from the
activities technique and procedures.
7. Management is a social process: - Management is getting thing through others. This involves dealing
with people. The efforts of the human beings have to be directed, co-ordinate and regulated by
management in order to achieve the desired results.
8. Management is a system
of authority: - Since management is a process of directing men to perform a task, authority to accomplish
the work from others is implied in the every concept of management. Management cannot perform in the
absence of authority.
9. Management is a dynamic function: - Management is a dynamic function and it has to be performed
continuously. It is constantly engaged in the molding of the enterprise in an over charging business
environment.
10. Management is an art as well as a science: - Management is a science because it has developed
certain principle which is of universal application. But the result of management depend upon the
personnel skills of managers and in this sense management is an art.
11. Management is a profession: - In the present days, management is recognized as a profession. It has a
systematic and specialized body of knowledge.

1.2.1 Scope of Management

The scope of Management is to Reorganize, restructure and bring other major changes in the
organization. When a business reaches a new stage in its development, it might to change the way it is
organized. For example, as you come to the end of the start-up phase and focus on developing the
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business, you may need to create a formal structure so that the business is better positioned to achieve its
objectives.
In a start-up, staff numbers tend to be limited so employees take on multiple roles. As the business
and workload grows, it makes sense for employees to focus on what they do best. Many entrepreneurs
choose to bring aboard professional finance and sales and marketing personnel, for example. Introducing
a solid organizational structure will help you stay in the driving seat while your business expands. This
guide examines why businesses decide to restructure and considers the implications of such change. It
offers advice on how planning, training and communication can ease the process.

1.2.2 Various functional areas of management:

[Management Functions or The Process of Management]
Planning

Planning is considered as primary functions of management.

Planning is the function that determines in advance what should be done.

It is look ahead and preparing for the future.

It is a process of deciding the business objectives and charting out the method of attaining those
objectives. In other words, it is the determination of what is to be done, how and where is to be
done, who is to do it and how results are to be evaluated.

Planning is done not only for the organization as a whole but for every division, department or
sub-unit of the organization.

Thus, planning is a function which is performed by managers at all levels top, middle and
supervisory.

Plans made by top level managers have wider scope with a focus on whole organization and
covers larger period. On other hand, plans made by lower level management are related to their
own department and covers shorter periods.

Organizing

Organization achieves objectives by using physical and human resources.

When people work in groups, everyone in the group should know what he or she is expected to
achieve and with what resources.

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Thus organizing involves in establishing authority responsibility relationship among the people
working in groups.

Organizing function involves

Determination of objectives.
Determination of activities needed to be performed to achieve the objectives.
Grouping of activities.
Assigning definite responsibility to each individual.
Delegating the required authority.
Providing required physical facilities and resources.

Staffing

Staffing function involves manning or providing human resources for various positions of the
organizations.

In staffing, the manager attempts to find the right person for each job.

Staffing include human resource planning, selection and training.

Directing

This function can be called by various names leading, directing, motivating, actuating
and so on

Directing is the process of directing the human resources to perform the necessary tasks (work)
as per the plans.

This involve three important components

Communicating:

Managers are responsible for communicating their employees about the technical
knowledge, job instructions, rules and procedures and other informations.

It should be two-way process and managers must encourage responsive feedback.

Developing good communication skills is very important for effective

functioning.

Motivating

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It is the act of stimulating the people so that give their best to the organization.

It ensures that people work with interest and involvement.

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Only motivated employees can accomplish right quantity and right quality of work
in right time, which is the key success of organization.

Leading

It is the process of influencing the people so that they contribute to the

organization and group goals.

Every managers must be role model and good leader.

Controlling

It is a process of determining actual performance and comparing it with predetermined plans in

order to find any deviations, so that timely corrective are taken.

Planning and controlling are closely related functions each other.

Controlling functions involves

Establishing standards of performance.
Measuring actual performance and comparing with standards.
Determining any deviations.
Taking appropriate corrective actions.

1.3 Management as a science, art and Profession

Management as an Art:
Meaning of Art:

It is the practical way of doing specific things.

Art involves the practical application of personal skills and knowledge to achieve concrete
results.

Art is a personalized process and every artist has his own style.

Main elements of art are

Personal skills

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Practical know-how

Result-orientation

Creativity

Constant practice aimed perfection

Management is an art because of the following facts.

Management process involves the use of practical knowledge and personal skill.
Management seeks to achieve concrete practical results
Management is creative
Management is a personalized process
Management as a Science:
Meaning of science:

Science is a systematized body of knowledge pertaining to a particular field of inquiry.

It contains principles and theories developed through continuous observation, experimentation

and research.

The principles must be evolved on the basis of constant enquiry and examination to test their
validity.

The principles have universal applicability

The organized body of knowledge can be taught and learnt in the classroom.

Management is a science because it contains all the essentials of science.

Principles and theories are now available in the area of management

Principles of management have been developed and formulated on the basis of observation,
research, analysis and experimentation as in the case of principles of other sciences.

Like other science, management principles are also based on cause-effect relationship. They
indicate that same cause and similar circumstances will produce same effect.

Management knowledge can be systematically transferred from one manager to another.

But management is a social science like economics since it involves the study of human
behavior.

Management is both science and art:

The science of management is like medicine which is learnt in an institution but perfected only
through practice in the clinics.
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Hence management may be learnt in the class room but practice is required to make its successful
use.
We can say that management is both an art and a science hence it contains general principles and
also requires certain personal skills to achieve the desired results.
Management as a Profession

In modern era, management has become a profession and organizations are developing
professional managers who can contribute to their growth.

To consider Management as a profession, let us look into the characteristic features of a

profession.
Existence of organized and systematic body of knowledge.
Formulated method of acquiring the knowledge skills.
Existence of an ethical code of conduct to regulate the behavior of the members of the
profession.
Chartering fee based on service provided.
A concern for social responsibility.

If we look into above features, in any profession like a doctor, layer etc all the above features can
be observed. But management satisfies only few of them. But slowly management is also
acquiring many of these features and is turning into profession.

1.4 Distinction between Administration and Management:

Even though managers and administrators have basic responsibilities for achieving the organization goals, they
differ each other in their basic functions, skills required etc.

Points of

Administration

Management

Nature

It is a determinative or thinking function

It is an executive or doing function

Scope

It is concerned with the determination of It

Dimension

Level

is

concerned

with

the

major objectives and policies

implementation of policies

It is mainly a top-level function

It is largely a middle and lower level

function

Influence

Administrative

decisions

are

influenced Managerial decisions are influenced

mainly by public opinion and other outside

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forces
M

the organizations

n Planning and control are the main functions Directing and organizing are the main

functions

involved in it

functions involved in it

Skills required

Conceptual and human skills

Technical and human skills

Usage

Largely used in government and public sector

Used mainly in business organizations

1.5 Roles of Management

Henry Mintzberg, contemporary management thinker has done research on various roles performed by a
manager. His research identified that managers perform 10 different highly interrelated roles during
various times to varying degrees. He classified 10 roles into three board categories

Interpersonal roles: Managers have to work with many people in the organization.

Informational roles: Mangers handle enormous amount of information and information is vital
for decision making.

Decisional roles: Decisional roles involve around making choices among the available
alternatives.

Role

Description

Related activities

Interpersonal
Figure Head

Symbolic Head: need to perform number Greeting visitors, Represent company or

of routine duties

community events, Welcome new staff,

ceremonial duties, signing documents.

Leader

Role to motivate, influence, and direct All activities of managers involve handling
subordinates, staffing, training

Liaison

subordinates.

Connecting people outside and maintaining Acknowledge mail, coordinating, external

network of contacts like buyers, suppliers, board work.
strategic partners

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Informational
Monitor

Scan environment and receive wide variety Handling mails, contact, reading periodicals
of information from internal and external and reviewing competitive, technological, and
sources

to

understand

organizational regulatory markets, reviewing reports etc

environment.
Disseminator

Transmitting information to subordinates

Inform staff about company related matters,

handling meetings, sending circular.

Spokesperson

Deliver information to specific person to Holding board meetings, press release, stake
individuals and groups outside

holder meetings.

Decisional
Entrepreneur

Search for new opportunities, projects, Strategy making, New product launch, entry
methods, products etc

into new markets etc..

D i s t u r b a n c e Addressing unanticipated problems

Handling

issue

like

excess

inventory,

handler

production breakdown, strikes, resignations

and taking corrective actions..

R e s o u r c e Allocating organizational resources like Budget allocation, decisions like who should
allocator

money, materials..etc

Negotiation

Representing organization

get what
for

negotiations

various Union-management

negotiations,

negotiations, purchase negotiations...

Managerial Roles
To meet the many demands of performing their functions, managers assume multiple roles. A role is an
organized set of behaviors. Henry Mintzberg has identified ten roles common to the work of all managers.
The ten roles are divided into three groups:
I.

Interpersonal

II. Informational
III. Decisional
The performance of managerial roles and the requirements of these roles can be played at different times
by the same manager and to different degrees depending on the level and function of management. The ten roles
are described individually, but they form an integrated whole.
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I. Interpersonal roles
The interpersonal roles link all managerial work together. The three interpersonal roles are primarily
concerned with interpersonal relationships.

Figurehead role:
The manager represents the organization in all matters of formality. The top level manager represents the
company legally and socially to those outside of the organization. The supervisor represents the work
group to higher management and higher management to the work group.

Liaison role:
The manger interacts with peers and people outside the organization. The top level manager uses the
liaison role to gain favors and information, while the supervisor uses it to maintain the routine flow of
work.

The leader role:

It defines the relationships between the manger and employees.

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II. Informational roles
The informational roles ensure that information is provided. The three informational roles are primarily
concerned with the information aspects of managerial work.

Monitor role:
The manager receives and collects information about the operation of an enterprise.

Disseminator Role:
The manager transmits special information into the organization. The top level manager receives and
transmits more information from people outside the organization than the supervisor.

Spokesperson Role:
The manager disseminates the organization's information into its environment. Thus, the top level
manager is seen as an industry expert, while the supervisor is seen as a unit or departmental expert.

III. Decisional roles

The decisional roles make significant use of the information and there are four decisional roles.

Entrepreneur role:
The manager initiates change, new projects; identify new ideas, delegate idea responsibility to others.

Disturbance handler role:

The manager deals with threats to the organization. The manager takes corrective action during disputes
or crises; resolve conflicts among subordinates; adapt to environmental crisis.

Resource allocator role:

Who gets resources; schedule, budget set priorities and chooses where the organization will apply its
efforts.

Negotiator role:
The manager negotiates on behalf of the organization. The top level manager makes the decisions about
the organization as a whole, while the supervisor makes decisions about his or her particular work unit.

1.6 Levels of Management:

The three levels of management found in any organization are top, middle, and lower managerial
level management. The extent to which managers perform the functions of management - planning,
organizing, directing, and controlling - varies by level in the management hierarchy.
Top Level Management:

The major functions of top level management is planning and organizing.

The top management determines the mission and sets the goals for the organization.

Its primary function is long-range planning.

Top management is accountable for the overall management of the organization.

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Middle Level management:

The middle level management implements the top management goals.

Monitors and controls the operating performance

Train, motivate and develop the supervisory level.

Also coordinate the functions of various departments.

Lower level or supervisory management:

Supervisors are managers whose major functions emphasize directing and controlling the work
of employees in order to achieve the team goals.

They are the only level of management managing non-managers.

Thus, most of the supervisor's time is allocated to the functions of directing and controlling.

They maintain discipline and good human relations among the workers.

Managerial Skills:
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The job of a manager has become highly challenging and hence they require several skills in order to be very
successful. Skills required for any manager are classified under three different heads as given below.
1. Technical skills:

Technical skills refer to the ability and knowledge in using the equipment, techniques and procedure
involved in performing specific tasks.

These skills require specialized knowledge and proficiency in the mechanics of a particular.

2. Human skills:

Human skills refer to the ability of a manager to work effectively with other people both as individual
and as members of a group.

Human skills are concerned with understanding of people.

These are required to win cooperation of others and to build effective work teams.

3. Conceptual skills:

Conceptual skills involve the ability to see the whole organization and the interrelationships between its
parts.

These skills refer to the ability to visualize the entire picture or to consider a situation in its totality.

These skills help the managers to analyze the environment and to identify the opportunities.

Developme
nt

of

managemen
t thought:
From

an

almost unrecognized position nearly two centuries ago, management has risen today to central activity of
our age and economy- a powerful and innovative force on which our society depends for material
support and national well- being.
During the last 100 years, management has become a more scientific discipline with certain standardized
principles and practices. The evolution of management thought during this period can be studied in 3
parts as under:1. Early classical approaches
a. Scientific management [ F W Taylor Contribution]
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b. Administrative management [Henry Fayol]

c. Bureaucracy
2. Neo-classical approach
a. Human relations movement
b. Behavioral approach
3. Modern approach
a. Quantitative approach
b. Systems approach
c. Contingency approach

1. Early classical approaches

a) Scientific Management

(1890-1940)

Meaning
Frederick Winslow Taylor is born in 1856 to a wealthy Quaker family in Philadelphia. In 1874 he
becomes an apprentice patternmaker and machinist at Enterprise Hydraulics Works, gaining shop-floor
expertise. In 1878 he takes up an unskilled job at Midvale Steel Works where he does his first
experiments. In 1881 he gains a master degree in mechanical engineering. In 1890 he is appointed to
general manager of Manufacturing Investment Company (MIC). It is important to understand that the
circumstances during the life of Taylor were quite different from those today: there had been a series of
depressions and production methods at the time were very inefficient. Also there was a need to employ
many immigrants into the US, to raise the living standards and to meet rising demands for goods of
every sort. All of this influences Taylor when he publishes
Definitions of Scientific Management
The main definitions of scientific management are as follows:

According to Fredrick Winslow Taylor, "Scientific management means knowing exactly what
you want men to do and seeing that they do it in the best and the cheapest way."

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According to Harlow Person, "Scientific management characterizes that form of organization and
procedure in purposive collective effort which rests on principles or laws derived by the process
of scientific investigation and analysis, instead of tradition or on policies determined empirically
and casually by the process of trial and error."

According to Jones, "Scientific management is a body of rules, together with their appropriate
expression in physical and administrative mechanism and specialized executives, to be operated
in coordination as a system for the achievement of a new strictness in the control and process of
production."

According to Lioyd, Dodd and zynch, In broad outline "Scientific management seeks to get the
maximum from methods, men materials machines and money and it controls the works of
production from the location and layout of the worker to the final distribution of the product."

According to Peter F. Drucker, " Scientific management is the organized study of work, the
analysis of work into its simplest element and the systematic improvement of the workers".

Primary Principles of scientific management as evolved by F.W. Taylor:

Or
Contribution of F W Taylor to the Scientific Management
1. Time and Motion study
He felt that, it is important for management to understand how much work can be
expected from every employee on scientific basis.
He stated time and motion study, under which each motion of job was to be timed with
the help of stop watch and shorter and fewer motions were to be developed.
2. Differential Payment System
He linked incentive with production.
This motivates employees to produce more and earn more.
Employees get more payment, if they produce more and get less, if they produce less.
3. Drastic Reorganization of Supervision
He suggested two new concepts: (i) Separation of planning & Doing (ii) Functional
foremanship.
The work should be planned by foreman and not by worker.
There should be as many foremen, these foremen should give orders to the worker on
his specialty.
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4. Scientific Recruitment and Training

He suggested, management should develop and train every worker to bring out his best
faculties and to enable him to do a higher, more interesting and more profitable class of
work than he has done in the past.
5. Intimate Friendly Cooperation between the Management and Workers
A complete mental revolution on the part of management and labour was required.
He believed that management and labour had a common interest in increasing
productivity.

Limitations / Drawbacks of Scientific Management

Taylors Scientific management emphasizes only on muscular tasks.
Neglects the areas of problem-solving and decision making..
He belief that economic incentives are strong enough to motivate workers for
increased production is wrong. But man has many other needs also, such as security
needs, social needs or egoistic needs.
His time motion study is not entirely scientific. No two individuals can be expected to
work in the same way at the same rhythm, with the same attention and the same
learning speed.
Separation of planning and doing and the greater specialization inherent in the
system.
Scientific management could not develop rapidly because, advances in methods and
better tools and machines eliminated some workers.

b)

Administrati

ve Management [Henry Fayol's Principles]

Henri Fayol, the father of the school of Systematic Management, realised that organisations
were becoming more complex and required their managers to work more professionally. His motivation
was to create a theoretical foundation for an educational program for managers who lacked formal
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training in those days. Basing his work on his experience as a successful managing director of a mining
company, he developed generic 'Principles of Management' to help organisations achieve optimum
performance working toward their goals.
Fayol described fourteen Principles of Management with the understanding that his list was
neither exhaustive, nor universally applicable:
1. Division of labour (Division of work)

means dividing the work into smaller and smaller activities, which results repetitive jobs
leading specialization.

Fayol applied division of work to all kind of work, managerial and technical, and advocated
that it results increase in productivity with better quality and output. optimum performance.

2. Establishment of authority

Authority means right to command or right to give orders.

Responsibility means obligation to perform task.

Fayol says that authority and responsibility must go hand in hand. Authority without
responsibility and responsibility without authority is meaningless. This is the basic function of
organizing function.

3. Enforcement of discipline

Descipline means respecting agreement, obedience of rules.

Fayol says that discipline is absolutely necessary for smooth running of an organization.

4. Unity of command

An employee should receive orders from one supervisor only.

Dual command generates tension, confusion and conflict, and results diluted responsibility
and blurred communication.

5. Unity of direction

The organizations should have a single plan of action to guide managers and workers.

Each group activity with same objectives must have one head and one plan.

6. Subordination of individual interest to general interest.

In a business concern, an individual is always interested in maximizing his own satisfaction

through more money, recognition, status, etc..

This is very often against the general interest which lies in maximizing production.

Hence they need to subordinate the individual interest to general interest.

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7. Fair remuneration for all

Remuneration means wages paid to employees for their services.

Workers must be paid a fair wage for their work.

It should be based on general business conditions, cost of living, productivity.

Fair remuneration increases workers efficiency and morale. It makes good relationship
between employees and management.

8. Centralisation

This term refers to the degree to which subordinates are involved in decision making and
degree to which authority is delegated to lower levels.

Fayol says that degree centralization and decentralization should be decided on the basis of
individual circumstances.

9. Scalar chain

Line of authority from top level management to lowest ranks is called scalar chain.

As per this principle, the communications should pass through the proper channels of
authority along the scalar chain.

Authority should not be broken and departed needlessly. If so it should be concerned with
particular authority.

10.

Order

People and material must be at the right place.

He says that A place for everyone and everything in the organization and they should be at
the respective places.

11.

Equity

and

fairness

All the employees must be equally treated and managers must be kind and fair to their
subordinates.

Equity results from a combination of kindness and justices.

Employees expect management to equally just to everybody. It requires managers to be free

from all prejudices, personal likes or dislikes.

Equity ensures healthy industrial relations between management and labour which is essential
for the successful working of the organization.

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12.

Stability of jobs

and positions

In order to motivate workers to do more and better work, it is necessary that they should be
assured security of job by the management.

If they have fear of insecurity of job, their morale will be low and they cannot give more and
better work.

13.

Development

of

individual initiative

Initiative means freedom to think out and execute a plan.

The subordinates must be encouraged to take initiative and employees who are allowed to take
initiative will exert higher levels of effort.

Innovation which is the hallmark of technological process, is possible only where the
employees are encouraged to take initiatives.

14.

Esprit de Corps

This means unity is strength and promoting team spirit will build harmony and unity within
the organization.

Only when all the personnel pull together as a team, there is scope for realizing the objectives
of the concern.

Limitations of administrative management

Management functions are not confined to business enterprises alone but are applicable to all the
organizations.

It is the body of knowledge, it is not culture bound, but is transferable from one environment another
environment

These principles are based on few case studies only and have not been tested empirically.

These principles are often stated as unconditional statements of what ought to be done in all the
circumstances when what is needed are conditional principles of management.

These principles results into formation of mechanistic organization structures which are insensitive
to employees.

These principles are based on the assumptions that the organizations are closed systems.

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c)

Bureaucratic

Management Theory(1930-1950) [Max Weber]

Bureaucracy has an informal usage, as in "there's too much bureaucracy where I work." This informal
usage describes a set of characteristics or attributes such as "red tape" or "inflexibility" that frustrate
people who deal with or who work for organizations they perceive as "bureaucratic."
Weber noted six major principles.
1.

formal

hierarchical structure

Each level controls the level below and is controlled by the level above.

A formal hierarchy is the basis of central planning and centralized decision making.

2.

Management

by

rules

Controlling by rules allows decisions made at high levels to be executed consistently by all
lower levels.

3.

Organization

by

functional specialty

Work is to be done by specialists, and people are organized into units based on the type of work
they do or skills they have.

4.

An "up-focused"

or "in-focused" mission

If the mission is described as "up-focused," then the organization's purpose is to serve the
stockholders, the board, or whatever agency empowered it.

If the mission is to serve the organization itself, and those within it, e.g., to produce high profits,
to gain market share, or to produce a cash stream, then the mission is described as "in-focused."

5.

P u r p o s e l y

impersonal

The idea is to treat all employees equally and customers equally, and not be influenced by
individual differences.

6.

Employment

based on technical qualifications

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Dr. Hemanth .K. P. Training & Placement Officer

M & E Unit - 1

People are selected on the basis of their credentials and merit, are paid according to their
position in the hierarchy.

Limitations of Bureaucracy
1. Over conformity to rules

stick to the rule fallow only the letter of the law without going into its spirit.

2. Buck-passing
3. Trained incapacity
4. Displacement of goals

2.

Neo classical

approach
a)

H u m a n

Relations Approach to Management

The Hawthrone plant of Western Electric in Cicero, Illinois, US was studied in 1924. Issues
related to physical illumination and worker efficiency were the focus. Elton Mayo from Harvard
University analyzed and reviewed the observation. Behavioral science and human relation thinking
started the new management movement. Psychological factors and human needs were considered as the
issues that determined why people worked. The issues related to social factors and informal group were
given due importance in management.
Some results were:

Whenever changes in working conditions were made, both good and bad, output increased.

In every department, the supervisor played a different role.

A number of employees expressed a dislike for close, coordinated supervision.

b)

Behavioral

approach

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Dr. Hemanth .K. P. Training & Placement Officer

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In human resource management, analysis of employees' actions to identify behavior patterns

that (for a specific job or function) separate an effective employee from a less effective or
non-performing employee.

Organisations people in 2 ways

Interpersonal Behaviour Approach -Individual Psychology

Group Behaviour Approach -Organisation Behaviour.

Features

Draws heavily from psychology & sociology.

Understand human relations.

Emphasis on greater productivity through motivation & good human relations

Motivation, leadership, participative management & group dynamics are core of this approach.

Uses

Demonstrates how management can be effective by applying knowledge of organisation behaviour.

Contributors
Maslow, Herzberg, Vroom, Mc Cleland, Argyris, Likert, Lewin, Mc Gregor, etc.

Limitations

Treating management as equivalent to human behaviour.

Talks about organisation & organisation behavior in vague terms.

3.

M o d e r n

approach
a) Quantitative approach

It can be used to improve managers ability to deal with human resources issues.

KNSIT Bangalore

Dr. Hemanth .K. P. Training & Placement Officer

M & E Unit - 1

Sophisticated staffing models can be used to map the flow of people into and out of an
Organization.

If the employees are always ready to accept changes. Managers can increase the productivity
by modifying the Quantitative system approach.

Management-logical entity
Actions-Mathematical symbols, Relationships and measurable data.
Features

Problem solving mechanism with the help of mathematical tools and techniques.

Problems Expressed in mathematical symbols.

Variables in management quantified.

Scope -Decision making, system analysis & some aspect of human behavior.

Tools -Operations research, simulation etc.

Contributors

Newman, Russell Ackoff, Charles Hitch, etc.

Uses

Provided Exactness in management discipline.

Limitations

Not a separate school

Technique in decision making.

b)

S Y S T E M S

APPROACH
Organizations are open systems that constantly interact with the external environment:
A set of interrelated and interdependent parts arranged in a manner that produces a unified whole
Inputs

transformation process

(Resources and information)

outputs

feedback

(Products, services, information)

Basic Types of Systems

1. Closed systems: Are not influenced by and do not interact with their environment (all system
input and output is internal)
2. Open systems: Dynamically interact to their environments by taking in inputs and transforming
them into outputs that are distributed into their environments.
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The key concepts of System Approach

1.

A system is a set of interdependent parts (Task, Structure, People and Technology)

2.

Central to the systems approach is the concept of holism means Whole system cannot be
accurately perceived without understanding all its parts.

3.

A system can be either open or closed

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Dr. Hemanth .K. P. Training & Placement Officer

M & E Unit - 1

Systems can be as follows:

Achieve established goals
An enterprise

External parts

Man-Made system

Achieve interplay with its environment

Internal parts

Manager integrates his available facilities with goal achievement

Uses

Limitations

Quick Perception

Complicated

Better Planning

Expensive

c)

Contingency

approach/ situational approach.

Appropriate management approach depends on situational factors faced by an organization.

In developing management concepts the environment within which the concepts are to be applied
has to be considered.

The contingency approach advocates a leadership behavior that should be adaptive to

accommodate different situations.

The contingency theory is based on situation analysis.

Organizations are individually different, face different situations (contingency variables), and
require different ways of managing:
Environment

Technology

Individual

Environment are of types

a) Internal environment
Structure, Processes, Technology,

b) External Environment
Social, Economic, Political etc.

Features

Appropriateness of a management technique depends on situation.

It is more flexible, although draw heavily from other approaches.

Allows managers to apply principles from those approaches selectively and appropriately.

Examples of contingency variables:

Organization size, task complexity, environmental uncertainty, individual differences
KNSIT Bangalore

Dr. Hemanth .K. P. Training & Placement Officer

M & E Unit - 1

KNSIT Bangalore

Dr. Hemanth .K. P. Training & Placement Officer

M & E Unit - 1

OTHER IMPORTANT NOTES OF 1st UNIT

Maslow's hierarchy of needs
1. Biological and Physiological needs - air, food, drink, shelter, warmth, sex, sleep, etc.
2. Safety needs - protection from elements, security, order, law, limits, stability, etc.
3. Belongingness and Love needs - work group, family, affection, relationships, etc.
4. Esteem needs - self-esteem, achievement, mastery, independence, status, dominance, prestige,
managerial responsibility, etc.
5. Self-Actualization needs - realizing personal potential, self-fulfillment, seeking personal growth and
peak experiences.

KNSIT Bangalore

Dr. Hemanth .K. P. Training & Placement Officer

M & E Unit - 1

PRINCIPLES OF MANAGEMENT
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Dr. Hemanth .K. P. Training & Placement Officer

M & E Unit - 1

KNSIT Bangalore

Dr. Hemanth .K. P. Training & Placement Officer

M & E Unit - 1
Management viewed as a Transformation Process of the Enterprise Deviations as Feed

****END OF THE 1st UNIT****

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Dr. Hemanth .K. P. Training & Placement Officer