UNIT I

INTRODUCTION TO MANAGEMENT

What is Management?

CONCEPT OF MANAGEMENT

The term management is used in three alternative ways: 1. Management as a discipline 2. Management as a group of people 3. Management as a process

Management defined

Management is the art of getting things done through and with people in formally organized groups - Harold Koontz To manage is to forecast and plan, to organize, to command, to coordinate and control - Henry Fayol

Management is concerned with the systematic organization of economic resources and its task to make these resources productive - Peter F Drucker

Nature of Management

Nature of Management
Multidisciplinary Dynamic Nature of Principles Relative, not Absolute Principles Management: Science or Art Management as Profession Universality of Management

IMPORTANCE OF MANAGEMENT

Effective Utilization of Resources Development of Resources To incorporate Innovations Integrating various Interest Groups Stability in the Society Handling Difficulties Economy and Efficiency

FUNCTIONS OF MANAGEMENT
WRITERS
Henry Fayol Luther Gulick Lyndall Urwick

FUNCTIONS

Ralph Davis E.F.L Brech Koontz and ODonnell

Planning, Organizing, Commanding, Coordinating, Controlling. POSDCORB Planning, Organizing, Commanding, Coordinating, Communicating, forecasting, investigating. Planning, Organizing, Controlling Planning, Organizing, Motivating, Coordinating, controlling Planning, Organizing, staffing, leading, controlling.

FUNCTIONS OF MANAGEMENT

TAYLORS SCIENTIFIC MANAGEMENT

Scientific Management concept was introduced by Frederick Winslow Taylor in USA in the beginning of 20th century.
Scientific Management is concerned with knowing exactly what you want men to do and then see in that they do it in the best and cheapest way.

ELEMENTS AND TOOLS OF SCIENTIFIC MANAGEMENT

1. 2. 3. 4. 5. 6. 7. 8.

Separation of Planning and Doing. Functional Foremanship. Job Analysis. Standardization. Scientific Selection and Training of Workers. Financial Incentives. Economy. Mental Revolution.

Separation of Planning and Doing

Functional Foremanship

Job Analysis

Standardization.

Scientific Selection and Training of Workers

Financial Incentives.

Economy &Mental Revolution

PRINCIPLES OF SCIENTIFIC MANAGEMENT

1. 2. 3. 4. 5.

Replacing Rule of Thumb with Science Harmony in Group Action Co-operation Maximum Output Development of Workers

Harmony in Group Action

Co-operation

Maximum Output

FAYOLS PRINCIPLES OF MANAGEMENT

1. 2. 3. 4. 5. 6. 7. Division of Work Authority and Responsibility Discipline Unity of Command Unity of Direction Subordination of Individual to General Interest Remuneration of Personnel

FAYOLS PRINCIPLES OF MANAGEMENT

(contd.)

8. Centralization 9. Scalar Chain 10. Order 11. Equity 12. Stability of Tenure 13. Initiative 14. Esprit de Corps

MAYOS HAWTHORNE EXPERIMENTS

The Hawthorne plant of Generic Electric Company, Chicago, was manufacturing telephone system bell.

It employed about 30,000 employees at the time of experiments. A team was constituted led by Elton Mayo (Psychologist) to investigate the causes of dissatisfaction among the employees.

FOUR PHASES OF HAWTHORNE EXPERIMENTS

1. Illumination Experiments (1924-27) 2. Relay Assembly test room experiments (1927-28) 3. Mass interviewing programme (1928-30) 4. Bank Wiring Observation Room Experiments (1931-32)

IMPLICATIONS OF HAWTHORNE EXPERIMENTS

1. 2. 3. 4. 5. 6.

Social Factors in Output Group Influence Conflicts Leadership Supervision Communication

CRITICISMS
The Hawthorne researchers did not give sufficient attention to the attitudes that people bring with them to the work place. The Hawthorne plant was not a typical plant because it was a thoroughly unpleasant place to work. They assume acceptance of managements goals and look on the worker as someone to be manipulated by management.

MASLOWS THEORY OF HUMAN NEEDS

The behavior of an individual at a particular moment is usually determined by his strongest need.

MASLOWS THEORY OF HUMAN NEEDS

MASLOWS THEORY OF HUMAN NEEDS

Basic Human Needs Food Air

Water
Clothing

Physiological Needs

Safety and Security

Protection
Stability Pain Avoidance

Routine/Order

Safety Needs

Love and Belonging Affection Acceptance Inclusion

Social Needs

Esteem Self-Respect Self-Esteem

Esteem Needs

Respected by Others

Self-Actualization

Achieve full potential Fulfillment

Summary

Self-Actualization

Esteem

Belonging

Safety
Physiological

Mc GREGORS THEORY X AND THEORY Y

The managements action of motivating human beings in the organization, according to Mc Gregor, involves certain assumptions, generalizations and hypotheses relating to human behavior and human nature. Mc Gregor has characterized these assumptions in two opposite points, Theory X and Theory Y.

THEORY X
In this theory, McGregor has certain assumptions about human behavior as follows: 1. Management is responsible for organizing the elements of productive enterprises money, materials, equipment, people in the interest of economic ends. 2. With respect to people, this is a process of directing their efforts, motivating them, controlling their actions, modifying their behavior to fit the needs of the organization

THEORY X

(contd..)

3. Without this active intervention by management, people would be passive even resistant to organizational needs. 4. The average man is by nature indolent he works as little as possible 5. He lacks ambition, dislikes responsibility, prefers to be led.

THEORY X

(contd..)

6. He is inherently self-centered, indifferent to organizational needs. 7. He is, by nature, resistant to change.

8. He is gullible, not very bright, the ready dupe of charlatan and the demagogue.

THEORY Y
The assumptions of Theory Y are described by McGregor in the following words
1. Work is as natural as play or rest. 2. Man will exercise self-direction and self-control in the service of objectives to which he is committed. 3. Commitment to objectives is a function of the reward associated with their achievement.

THEORY Y

(contd..)

4. The average human being learns under proper conditions not only to accept, but to seek responsibility. 5. The capacity to exercise a relatively high degree of imagination, ingenuity and creativity in the solution of organizational problems is widely, not narrowly, distributed in the population.

6. The intellectual potentialities of the average human being is only partially utilized.

HERZBERGS TWO FACTOR THEORY OF MOTIVATION

Need priority, to a great extent, characterizes the types of behavior. In this connection, a research study was conducted by Frederick Herzberg and associates of Case-Western Reserve University.

HERZBERGS TWO FACTOR THEORY OF MOTIVATION (contd..) His findings are that there are some job conditions which operate primarily to dissatisfy employees when the conditions are absent, however, their presence does not motivate them in a strong way. Another set of job conditions operates primarily to build strong motivation and high job satisfaction, but their absence rarely proves strongly dissatisfying.

HERZBERGS TWO FACTOR THEORY OF MOTIVATION (contd..)

The Two Factors are

1. Hygiene Factors
2. Motivational Factors

SYSTEMS APPROACH TO MANAGEMENT

The basic idea of Systems approach is that any object must rely on a method of analysis involving simultaneous variations of mutually dependent variables.

The boundary of a system classifies it into two parts: 1. Closed System 2. Open System

FEATURES OF MANAGEMENT AS A SYSTEM

1. 2. 3. 4. 5. 6. 7. 8. Management as a social system Management as open system Adaptive Dynamic Probabilistic Multilevel and Multidimensional Multivariable An integrated Approach

LIMITATIONS OF SYSTEMS APPROACH

Systems approach suffers from two limitations:

1. Abstract Approach
2. Lack of Universality

LEADERSHIP STYLES

Leaders can be differentiated into good or bad based on the styles they adopt or how they choose to influence their followers. They are: 1. Autocratic 2. Democratic or Participative 3. Free Rein or Laissez faire

SOCIAL RESPONSIBILITIES OF MANAGEMENT

Responsibility towards owners

Responsibility towards employees

Responsibility towards consumers Responsibility towards the Governments

Responsibility towards the community and society