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MODULE - 2 Introduction and Evolution of Management: Concept, Definition ,Skills, organization, Scientific Management, Fayols 14 Principles, Hawthorne Experiment, Systems Approach, Contingency Approach
MANAGEMENT as a PROCESS
Management is a process involving certain functions and activities that managers must perform. perform. Managers also use principles in managing which are generally accepted tenets that guide their thinking and action. action. This is what managers do. do.
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MANAGEMENT as a DISCIPLINE
Classifying Mgmt as a discipline implies that it is an accumulated body of knowledge that can be learned. learned. Thus Mgmt is a subject with principles, concepts and theories. theories.
MANAGEMENT as PEOPLE
It implies people who guide, direct, and thus manage organizations. organizations. The perspective of management as people refers to, and emphasizes the importance of the employees who managers work with and manage in accomplishing an organization's objectives. objectives.
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MANAGEMENT as a CAREER
People who devote their working lives to the process of management actually pursue management as career. career.
MANAGEMENT is a process undertaken by one or more persons to coordinate the activities of other persons to achieve results not attainable by any one person acting alone. alone.
Planning
Setting goals: goals: long-term goals, longintermediate goals, short-term goals shortDeveloping strategies: how to reach strategies: the goals? Determining resources: resources: capital & manpower Setting standards: target, e.g. save standards: 10 million INR. INR.
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Organizing
Allocating resources, assign tasks, establish procedures Preparing organization chart Recruiting, selecting, training & developing employees Matching the job with employees: employees: effectiveness & efficiency
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Directing/Leading
Guiding & motivating Giving assignments Explaining routines Clarifying policies Providing feedback
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Controlling
Establish standards Measuring results Monitoring performance Taking corrective action
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Levels of Management
Top management: management: responsible for overall performance & effectiveness, formulate strategies, set polices, CEO( Strategic Planning &Long-term goals) &LongMiddle management: management: implement strategies, policies, decision made by top management, Plant Manager, Division head( Tactical Planning, Intermediate goals)
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Levels of Management
Supervisory (first-level): (first-level): Working & supervising worker, interact with suppliers, Foreman, Section leader( Operational, Planning & Short-term goals) Short-
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Managerial Skills
Conceptual skills: mental ability to think & skills: see beyond the present situation, Top management Technical skills: skills: ability to use the knowledge, tools & techniques, help employees solve work-related problems workaccounting, engineering, sales, First-line Firstmanagement Human relations skills: able to understand skills: and interact with people, all level management
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Managerial Skills
DecisionDecision-making skills: ability to skills: define problems & selecting the best courses of action. action. Time management skills: skills: efficient and productive use of time
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Levels of Management
Strategic Planning & Long-term goals Top Managers Tactical Planning & Intermediate goals Middle Managers Operational Planning & Short-term goals
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First-line/Front-line Managers
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Machiavelli
An organization is more stable if members have the right to express their differences & resolve their conflicts within it. it. While one person can begin an organization, it is lasting when it is left in the care of many and when many desire to maintain it . A weak manager can follow a strong one, but not another weak one, and maintain authority. authority. A manager seeking to change an established organization, should retain at least a shadow of the ancient customs.
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Frederick W. Taylor (1856-1915) (1856Frederick W. Taylor rested his philosophy on four basic principles: principles:
The development of a true science of management, so that the best method for performing each task could be determined. determined. The scientific selection of workers, so that each worker would be given responsibility for the task for which he or she was best suited. suited. The scientific education and development of the worker. worker. Intimate, friendly cooperation between management and labour. labour.
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Henry L. Gantt (1861-1919) (1861He worked with Taylor but began to reconsider Taylor's incentive system as having too little motivational impact. impact. He came up with a new idea: every idea: worker who finished a day s assigned work load Would win a 50-cent bonus. 50bonus. Further, the supervisor would earn a bonus for each worker who reached the daily standard, plus an extra bonus if all the workers
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The Gilbreths: Frank B. & Lillian M. Gilbreth (1868-1924 & 1878-1972) (18681878They collaborated on fatigue and motion studies and focussed on ways of promoting the individual worker s welfare. welfare. To them, the ultimate aim of scientific mgmt was to help workers reach their full potential as human beings. beings. In their conception, motion & fatigue were intertwinedintertwined-every motion that was eliminated reduced fatigue. fatigue. They argued that motion study would raise worker morale because of its obvious physical benefits & because it demonstrated management s concern for the worker. worker.
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Henri Fayol (1841-1925) (1841He is generally hailed as the founder of the classical management school not because he was the first to investigate managerial behaviour, but because he was the first to systematize it. it.
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6. Subordination of individual interest to the common good. good. 7. Remuneration: Compensation for worm done Remuneration: should be fair to both employees and employers. employers. 8. Centralization: Centralization: decreasing the role of subordinates in decision making is centralization; centralization; increasing their role is decentralization. decentralization. He believed that managers should retain final responsibility but at the same time give the subordinates enough authority to do their jobs properly. The problem is to find properly. the proper degree of centralization in each case. case. 9. Hierarchy: The line of authority in an org. runs Hierarchy: org. in order of rank from top management to the lowest level of the enterprise. enterprise. 10. Order: Materials & people should be in the right Order: place at the right time. time. 35 BIMTECH FOUNDATION COURSE : POM
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11.Equity: 11.Equity: managers should be both friendly and fair to their subordinates. subordinates. 12.Stability 12.Stability of Staff: Staff: A high employee turnover rate undermines the efficient functioning of an org. org. 13.Initiative: 13.Initiative: Subordinates should be given the freedom to conceive and carry out their plans, even though some mistakes may result. result. 14.Esprit 14.Esprit de Corps: Promoting team Corps: spirit will give the org. a sense of org. unity. unity.
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Max Weber (1864-1920) (1864He developed a theory of bureaucratic management that stressed the need for a strictly defined hierarchy governed by clearly defined regulations & lines of authority. authority. He considered the ideal organization to be a bureaucracy whose activities & objectives were rationally thought out & whose divisions of labour were explicitly spelled out. out. We should be careful to apply our negative connotations of the word bureaucracy to the term as Weber used it. it. Weber sought to improve the performance of socially important organizations by making their operations predictable and productive. productive.
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Mary Parker Follett (1868-1933) (1868She introduced many new elements in the classical school in the area of human relations & organization structure. structure. She called management the art of getting things done through people . She was a great believer in the power of the group, where individuals could combine their diverse talents into something bigger. bigger. Her holistic model of control took into account not just individuals and groups, but the effects of environmental factors also. also.
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Chester I. Barnard (1886-1961) (1886According to him, people come together in formal organizations to achieve ends they cannot accomplish working alone. alone. An enterprise can operate efficiently & survive only when the organization s goals are kept in balance with the aims & needs of the individuals working for it. it. His recognition of the importance & universality of the informal organization was a major contribution to management thought. thought. He proposed concept of zone of indifference , i.e., what the employee would do without questioning the manager s authority. authority. The more activities that fell within this, the smoother & more cooperative an organization would be
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The Hawthorne experiments: experiments: The Human Relations movement grew out of a famous series of studies conducted at the Western Electric companys Hawthorne plant near Chicago from 1924 to 1933. 1933. These studies attempted to investigate the relationship between level of lightning in the workplace& worker productivity. productivity.
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Four Parts of Experiment Illumination Experiment Relay Assembly Test Room Interviewing Programme Bank Wiring test Room
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Inventing & Reinventing organizations: It organizations: advocates the ways to unleash the creative potential of their employees & themselves. themselves. For e.g., Peters concept of liberation management challenges the kind of rigid organization structures that inhibit people s creativity. creativity. Hammer & Champsy proposed reengineering the corporation , i.e. when an org. org. conducts a significant reassessment of what it is all about. about. Cultures & Multiculturalism: Multiculturalism: Various perspectives & values that people of different cultural backgrounds bring to their organizations are not only a fact of life but a significant source of contributions Quality: Quality:, TQM should be in every manager s vocabulary
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