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Documente Cultură
UNIT - 1
MANAGEMENT:
7 Hours
1.1 Introduction;
1.1.1
Meaning
1.1.2
Nature
1.1.3
Characteristics of Management
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1.1 Introduction
1.1.1 Definitions & Meaning of Management:
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.
Peter Drucker view Management as a multipurpose organ that manages a business and manages
managers and manages workers and work"
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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.
various
definitions
reveals
the
following
characteristics
of
mgt.
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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.
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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.
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
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.
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.
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.
Managers are responsible for communicating their employees about the technical
knowledge, job instructions, rules and procedures and other informations.
Motivating
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It is the act of stimulating the people so that give their best to the organization.
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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
Controlling
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.
Personal skills
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Practical know-how
Result-orientation
Creativity
The principles must be evolved on the basis of constant enquiry and examination to test their
validity.
The organized body of knowledge can be taught and learnt in the classroom.
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.
But management is a social science like economics since it involves the study of human
behavior.
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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.
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.
Points of
Administration
Management
Nature
Scope
Dimension
Level
is
concerned
with
the
implementation of policies
Influence
Administrative
decisions
are
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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
Usage
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
Leader
Role to motivate, influence, and direct All activities of managers involve handling
subordinates, staffing, training
Liaison
subordinates.
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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
environment.
Disseminator
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
Handling
issue
like
excess
inventory,
handler
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,
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.
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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.
Entrepreneur role:
The manager initiates change, new projects; identify new ideas, delegate idea responsibility to others.
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.
The top management determines the mission and sets the goals for the organization.
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Supervisors are managers whose major functions emphasize directing and controlling the work
of employees in order to achieve the team goals.
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.
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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(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".
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b)
Administrati
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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
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
Fayol says that discipline is absolutely necessary for smooth running of an organization.
4. Unity of command
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.
This is very often against the general interest which lies in maximizing production.
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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
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 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
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.
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
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
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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
Whenever changes in working conditions were made, both good and bad, output increased.
b)
Behavioral
approach
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Features
Motivation, leadership, participative management & group dynamics are core of this approach.
Uses
Contributors
Maslow, Herzberg, Vroom, Mc Cleland, Argyris, Likert, Lewin, Mc Gregor, etc.
Limitations
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.
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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.
Scope -Decision making, system analysis & some aspect of human behavior.
Contributors
Uses
Limitations
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
outputs
feedback
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2.
Central to the systems approach is the concept of holism means Whole system cannot be
accurately perceived without understanding all its parts.
3.
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External parts
Man-Made system
Internal parts
Uses
Limitations
Quick Perception
Complicated
Better Planning
Expensive
c)
Contingency
In developing management concepts the environment within which the concepts are to be applied
has to be considered.
Organizations are individually different, face different situations (contingency variables), and
require different ways of managing:
Environment
Technology
Individual
b) External Environment
Social, Economic, Political etc.
Features
Allows managers to apply principles from those approaches selectively and appropriately.
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PRINCIPLES OF MANAGEMENT
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Management viewed as a Transformation Process of the Enterprise Deviations as Feed
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