Introduction to Management: Concepts of Management and

organization- nature, importance and Functions of Management,

Taylor’s Scientific Management Theory, Fayol’s Principles of
Management, Mayo’s Hawthorne Experiments, Maslow’s Theory
of Human Needs, Douglas McGregor’s Theory X and Theory Y,
Herzberg’s Two-Factor Theory of Motivation, Systems
Approach to Management, Leadership Styles, Social
responsibilities of Management
 INTRODUCTION
Management is what managers do.
M
A --- The Manager
N
A
G --- Knowledge
E
M
E --- The People
N
T --- Technology/Techniques/Tactics
 MANAGEMENT
DEFINITIONS:

“Management is the art of getting things done through and with people in
formally organized groups”
--- Koontz
“Management is the art of getting things done through and with people”
--- Mary Parker
“Management is the art of knowing what you want to do and then seeing
that it is done in the best and cheapest way” -
-- F.W. Taylor
“Management is the accomplishment of results through the efforts of
other people”
--- Lawrence
“Management is to manage is to forecast and plan, to organize, to
command, to coordinate and control”.
-- Henry Fayol (1916)
 Nature of Management
Multidisciplinary
Dynamic nature of Principles
Relative, Not absolute Principles
Management: Science or Art
Management as profession
Universality of management
Management is a Situational in Nature
 Importance of Management
Management has been important to the daily lives of people and
to the organisations. The importance of management may be
traces with the following.
Effective utilisation of Resources
Development of Resources
It ensures continuity in the organization
Integrating various interest groups
Stability in the society
 Functions of Management
Writers Management Functions
Henry Fayol Planning, Organizing, Commanding, Coordinating, Controlling

Luther Gullick POSDCORD- Planning, Organising, Staffing, Directing,

Coordinating, Reporting, Directing

R. Davis Planning , Organising, Controlling

E.F.L. Breech Planning, Organising, Motivating, Coordinating, Controlling

Koontz Planning, Organising, Staffing, Leading, Controlling

Functions of Management
 Managerial Skills & Managerial Levels
Technical Skills
Human Skills
Conceptual Skills
Design Skills

Top level / Administrative level

Middle level / Executory
Low level / Supervisory /
Operative / First-line managers
The scientific management period hold prominently two
greatest exponents of classical theories. They are

F.W.Taylor (1856-1915)
Henry Fayol (1841-1925)and

TAYLOR & SCIENTIFIC MANAGEMENT

Introduced by Frederick Winslow Taylor in USA in the

beginning of 20th century.
He is Father of Scientific Management
“Scientific management is concerned with art of knowing
exactly what you want to do and then see in that they do it in the
best and cheapest way”
Tools:
Separation of planning & doing
Functional Foremanship
Job Analysis
Standardization
Scientific selection and training of workers
Financial Incentives
Economy
Mental Revolution

Principles of Scientific Management

Replacing rule of thumb with science
Harmony in group action
Co-operation
Maximum output
Development of workers
Tools:
Functional Foremanship

Work Shop Manager

Planning In charge Production In charge

Route inspector Maintenance

Gang Boss
Route Time and Instruction Disciplinarian Boss Foreman
Clerk Cost Clerk Card clerk

workers
Criticism of Scientific Management:
The theory of Scientific Management was heavily criticised by the
employers, the workers, and psychologists. Employers criticised the
process of scientific approach as costly and unworkable
It ignores the functional areas of management such as marketing,
finance and so on
Individual creativity is ignored by favouring one best way Workers
is reduced to a cog in the machines.
Mobility among workers gets restricted because of narrow
specialisation
Workers are not involved in the planning part of the job which was
controlled by the management.
“Management is to manage is to forecast and plan, to organize,
to command, to coordinate and control”.

Qualities of a manager
General principles of management
Elements of management

Qualities of a manager
(1841-1925)
Physical ( Health, Vigor and Health )
Mental ( Ability to understand and learn, judgment , mental vigor and capability)
Moral ( energy, firmness, initiative, loyalty, tact etc.,)
Educational
Technical ( peculiar to the function being performed )
Experience

Father of Administrative Management

 General principles of management
Division of work
Authority and Responsibility
Discipline
Unity of Command
Unity of Direction
Subordination of individual interest to general interest
Remuneration
Centralization
Scalar Chain
Order
Equity
Stability
Initiative
Esprit de corps

Elements of management
Planning, Organizing, Commanding, Coordinating, Controlling
A team of four members
Elton mayo,
White head,
Roethlisberger and
William Dickson

They conducted various researches in four phases with each phase

attempting to answer the question raised at the previous phase.
The phases are ---
Illumination experiments (1924-27)
Relay assembly test room experiments (1927-28)
Mass Interviewing Programme (1928-1930)
Bank wiring observation room experiments (1931-32)
Conclusions
Individual workers must be seen as members of a group
The sense of belongingness and effective management were the
two secrets unfolded by the Hawthorne experiments.
Informal or personal groups influenced the behaviour of
workers on the job
To seek workers cooperation, the management should be aware
of their social needs and cater to them
Maslow's hierarchy of needs is a theory in psychology proposed
by Abraham Maslow in his 1943 paper "A Theory of Human
Motivation". Maslow subsequently extended the idea to
include his observations of humans' innate curiosity
Conclusion:
Maslow suggest that the various levels are interdependent and overlapping,
each higher level need emerging before the lower level need has been
completely satisfied. Since one need does not disappear when another
emerges, all needs tend to be partially satisfied in each area.
Frederick Irving Herzberg born in Massachusetts was an
American psychologist who became one of the most
influential names in business management. He is most
famous for introducing job enrichment and the Motivator-
Hygiene theory

Frederick Hertzberg conducted a structured interview

programme to analyse the experience and feelings of 200
engineers and accountants in nine different companies in
Pittsburg area, U.S.A during the structured interview, they were
asked to describe a few previous job experiences in which they
felt ‘exceptionally good’ or exceptionally bad about jobs.
Douglas Mc Gregor in his books “The Human Side of the
Enterprise” has pointed out two sharply opposite concepts of
Management Styles for the Motivation of Human Behaviour.
There are two sets of assumptions about human nature:
Theory X and Theory Y
Theory X presents an essentially negative view of people
Theory Y offers a positive view
The central idea of this approach is that any object depends
on a method of analysis involving simultaneous variations of
mutually dependent variables. Systems are a set or
assemblage of various interdependent and inter related
variables. i.e. sub-systems, so as to form a complex unity

Kast and Rosenweig defines,

“A system is an organised or complex whole: an assemblage
or combination of things or parts forming a complex unitary
whole”.
This is the most interesting area in the management.
Effective management lies in good leadership qualities
exhibited by the manager. Leadership is the process of
influencing the behaviour of other to work willingly an
enthusiastically for achieving predetermined goals
Definitions:
“Leadership is the process of influencing and supporting others
to work enthusiastically toward achieving objectives”.
– Barnard Key.

“Leadership is the ability to influence a group towards the

achievement of goals”
– Stephon. P. Robins

“Leadership is interpersonal influence exercised in a situation

and directed through communication process, towards the
attainment of a specified goal or goals”.
– Tennenbaum.
Transformation Leader Transactional Leader
1.Independent 1.Clarification giving
2.Inspirational 2. Counseling
3.Achievement 3. Passive
4.Initiative 4. Directing
5.Change oriented 5.Task Oriented
6.Proactive 6.Practical
7.Influencing
 Leader injects team spirit, confidence, ambition etc. into the
minds of followers
Leader is a representative of subordinates
Leader is a counselor, mediator, mentor etc to the followers
Leader uses power for the best interests of the followers
Leader strives hard for leadership effectiveness
Leader seeks willing co-operation of the subordinates/
followers
Leader furnishes a good working climate etc
Autocratic (or) Authoritarian leaders
Participative (or) Democratic leaders
Free rein (or) Laiser faire leaders
Advantages:-
1. It provides strong motivation and reward to a manager exercising
this style.
2. It permits very quick decisions as most of the decisions are taken by
a single person.
3. Strict discipline will be maintained.
4. Less competent subordinates also have scope to work in the
organisation under his leadership style.

Disadvantages:-
1. People in the organisation dislike it specially when it is strict and the
motivational style is negative.
2. Employees lack motivation frustration, low morale and conflict
develops in the organisation.
3. There is more dependence and less individuality in the organisation
 It is also called as democratic, consultative or idiographic
leadership style
In this style the manager decentralizes his decision-making
process.
Instead of taking unilateral decision he emphasizes
consultation and participation of his subordinates.

Advantages:-
Employees are highly motivated.
The productivity of employees is very high.
Subordinates share the responsibility with the superior and try
to safeguard them also.
Disadvantages:-
Complex nature of organisation requires as through understanding
of its Problems which lower-level employees may not be able to do.
Some people in the organisation want minimum interaction with
their superior.
Some leaders may use this style as a way of avoiding responsibility.
 A free-rein leader does not lead, but leaves the group entirely to
itself as shown in the following figure.

manager once determines policy, programmes, and limitations for

action and the entire process is left to subordinates group members
perform everything and the manager usually maintains contacts
with outside persons to bring the information and materials which
the group needs
Social responsibilities came in the 1930’s when the view was
advanced and accepted that managers of large companies must
make decision which maintain an equitable balance among the
shareholders, employees, customer, suppliers & general public.
Definition:
“It is a serious consideration, by the corporate sector, of the impact
of, its actions, on society”.
-----Koontz
“This is a principle teaching that rich people have to feel obliged to
come down to help the down trodden, depressed people of the
society” ----- Jame A Stoner

“Investment on social responsibility & Welfare of the masses is a

guarantee for the long0run business survival itself ”
-----Smt. Indira Gandhi
 Towards Consumers
Towards Share Holders
Towards Employees
Towards Trade Unions
Towards Government

Arguments in favour of Social Responsibility:

Give & Take
Better Environment Society
Reduced State interventions
Authority and Responsibility
A special place for Business
Arguments not in favour of Social Responsibility:
Primary Task
Costly
Unfavourable to the Foreign Trade
Not right Man
No Formal Accountability

Progress in India:
L&T:
It spends nearly Rs.5 crores annually on social projects.
It takes up programmes like: Family Planning, Camps to checkup
Tuber Culosis, Dairy and Poultry development in and around.
Tata Steel:
This company is a pioneer company as far as S.R. is concerned
Deeply involved in environmental conservation activities, education,
vocational training and health care for the under privileged etc.