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What is management?

A common man considers, monitoring or supervising as


management.
While some use it with administration interchangeably.
Administration includes strategy making or overall/general
decision making.( strategy formulation only)

Management according to
Henry Fayol
Planning

Organizing

Leading

Resources(Organizational)
(People, processes ,equipment)

Controlling

Management functions
Planning
Bridging/filling the gap between current and desired state.
Organizing
Resource allocation
Leading
Directing and initiating the

planning/implementation

Management
functions(continued)
Monitoring
Supervising the rest of the functions and checking wether it is giving
the desired results, If not, then re-correcting the planning, organizing
and leading functions..

Theories of Management
Scientific Management Theory
General Administrative theories
Quantitative theories
Organizational behaviour theory
System theory
Contingency theory

Scientific Management
theory
Frederick Taylor(father of scientific management)
(A mechanical engineer in Pennsylvania)
developed four principles: (Based on first-line
managers)
1-Develop a separate technique for an individual
worker which will replace the old one.
2-Select the right person for the right job and then
train.
3-Encourage and promote co-ordination among
workers.
4-Divide work and responsibility equally among
managers and workers.

General Administrative
theories
(Based on general/ overall management)
(Henry fayol + Max webers theories)
Henry Fayol(MD at a French coal-mining firm)
MaxWeber( A german sociologist who proposed the idea of an ideal
organization called beauracratic organization.

Henry Fayols 14 principles of


management
1- Division of work
2-Authority
3-Descipline
4-Unity of command
5-Unity of direction
6-Subordination of individual
interests to general interests.
7-Remuneration
8-Centralization
9-Scalar chain
10-Order
11-Equity
12-Stability of tenure of personnel
13-Initiative
14-Esprit de corps(Team building for synchronization)

Webers beauractic
organization
Beauracracy
A form of organization characterized by division of
labor, a clearly defined hierarchy,detailed rules and
regulations and impersonal relationships.
1. A 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. Purposely 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
(There may also be protection from arbitrary dismissal.)

Quantitative approach
Use of statistical tools

Linear programming

Simulations

Critical path finding


(Post world war influx)

Organizational behavior
theory

Related with actions of people at work.

Theories of motivation, leadership and HRM.

Adocates(Robert owen, Hugo Musterberg, Mary parker, Follet


and chestard Bernard)

Hawthrone studies

started in 1924, studied the impact of light intensity on productivity.


Inclusion of Elton Mayo
Bottom line: Social norms, group standards as determinants of individual work
behavior.

System approach
Role of organization in a system.
System: Interrelated and inter dependant components
working for a common goal.

Closed and open systems

(Stakeholders in a closed/open systems)


Example: Restaurant

Contingency approach
Management should be studied , based on various
dependencies(contingencies) Basic contingencies are:
Globalization
Ethics
Workforce diversity
Entrepreneurship

Thanks

Questions?