BLOCK 1

INTRODUCTION TO MANAGEMENT

Unit 1 Management: An Overview

Introduction
Management is essential where ever people work together in an organized manner.
It can be considered as an universal phenomenon. Hence there is not accepted
standard definition also for management. Management enables a country to
experience a substantial level of economic development,by bringing together the
factors of production.

Management Principles
Over the years a number of principles have been developed in management to aid
executive thinking and action.
Henry Fayol--14 principles of management--practical experience as a manager---was
accepted as complete and comprehensive.
Principles of objective---organisation must be coordinated in order to achieve the
overall objective (Koontz and O’Donnell).
Priniciples of coordination- unity of action through orderly arrangement of efforts
Principle of exception
Principle of participation
Principle of supportive relationship
So the principles drive behavior throughout the organization, no matter what the
management says.

Definition of Management
Mary Parker Follett:--Management is an art of getting things done through others.

According to Harold Koontz,-- “Management is an art of getting things done through

and with the people in formally organized groups.

According to George R Terry---“Management is a distinct process consisting of

planning, organizing actuating and controlling performed to determine and
accomplish the objectives by the use of people and resources”.

Peter Drucker:-- Management is a multipurpose organ that manage a business,

manages managers and manages workers and work.

Management can be defined as the process of planning , organizing, directing and

controlling work of organization members and of using all available organization’s
resources to reach stated organizational goal.

In simple terms, we may define management as a process concerned with effective

utilization of human and physical resources for attaining organizational and individual
goals through a facilitating environment.
Characteristics of Management
1. Management is a process which involves a series of functions and activities such
as planning , organising, controlling etc. By managers.
2. It is a goal oriented/ directed activity where accomplish goal is the primary
consideration of managers.
3. It is a continuous or never ending process.
4. Management involves decision making activity as it involves evaluation of
various activities and selecting the best alternative.
5. Management involves effective integration and utilization of both physical
and human resources towards the achievement of organisational goal.
6. Management is an extensive activity practiced at different levels ie, top,
middle and lower
7. It is universal in character as every form, size and nature of organization
requires management to manage its affairs.
8. Management is a dynamic activity performed continuously in organization.
Its activities need to change depending upon the trends and developments in its
environment.
9. Management is a group based activity. It is task oriented and team work has
been proven effective in organizations.
10. Management is situational in nature.

Objectives of Management
➢ To constantly attempt to accomplish the predetermined performance and
productivity goals of the firm.
➢ To develop the environment that facilitates the optimum use of physical and
human resources to achieve maximum output.
➢ To build a mutually beneficial and integrated relationship between employer and
employees for the effective functioning of the organization.
➢ Effective coordination and cooperation in resource mobilisation and gol
accomplishment.
➢ To provide stability and growth in operations of th organisation throug consistent
innovation and quality enhancement.
➢ T work continuously with integrated effort towards the betterment of the
organization, society and national as a whole by satisfying the organization’s
social responsibilities in an efficient and fair manner.
➢ Management is the catalyst that transforms the inputs of labour, capital, and raw
materials into productive outputs.
Others Importance are:-
1) Optimal Utilization of Resources
2) Achieving specific objectives-personal, organisational, social, economic
3) Improves Efficiency
4) Helps in Development of Society and Nation
5) Creates a Dynamic Organization
6) Brings Harmony in Work and good work culture
7) Adopt and adapt according to the changing environmental needs.

➢
Functions of Management
Newman and Summer(1965)--4 functions--Planning, Organising, Leading and
Controlling
Henry Fayol(1949):---5 functions---Planning Organising, Commanding Coordinating
and Controlling
Luther Gullick(1937):- 7 functions---POSDCORB---Planning, Organising, Staffing ,
Directing, Coordinating, Reporting and Budgeting.
Koontz and O’Donnell(1972)---5 functions- Planning, Organising, Staffing ,
Directing and Controlling
Ernest Dale(1973)--added 2 more functions along with P,O,S,D,C---Innovation and
Representation.

. For managerial purpose, the following five functions are very essential for managers. They
are planning, organizing, staffing, directing and controlling.

(i) Planning:- Planning is the function that determines in advance what should be done. It is
looking ahead and preparing for the future. It is a process of deciding the business objectives
and charting out the methods of attaining those objectives. In other words, it is the
determination of what is to be done, how and where it is to be done, who is to do it and how
results are to be evaluated.
Following are the sub functions of planning: forecasting, decision-making, strategic
formulation, policy-making, programming, scheduling, budgeting, problem solving,
innovation and research activities.

(ii) Organizing:- It refers to coordinate human resources with other resources such as
material, machine, money etc. According to Allen, this organization refers to the structure
which results from identifying and grouping work, defining and delegating responsibility and
authority, and establishing relationships.
The process of organizing involves the followings:
• Identifying the activities necessary to achieve the objectives.
• Grouping activities into various departments.
• Assigning duties or tasks to appropriate individuals.
• Delegating necessary authority to individuals and fixing responsibilities for results.
• Defining authority and responsibility relationship among individuals.

(iii) Staffing:- Staffing may also be considered an important function involved in building
the human organization. In staffing, the manager attempts to find the right person for each
job. Staffing involves the selection and training of future managers and a suitable system of
compensation.
Staffing function has the following sub functions. They are manpower planning, recruitment,
selection, training and development, placement, compensation, promotion, appraisal etc.

(iv) Directing:- After plans have been made and the organization has been established and
staffed, the next step is to move towards its defined objectives. This function can be called
Directing. Through this function the manager explains to his people what they have to do
and helps them do it to the best of their ability.
Directing thus involves three sub-functions. They are as follows • Communication,
Supervision • Leadership and • Motivation. •
(v) Controlling:- The manager must ensure that everything occurs in conformity with the
plans adopted, the instructions issued and the principles established.
Three elements are involved in the controlling function.
• Establishing standards of performance.
• Measuring current performance and comparing it against the established standards.
• Taking action to correct any performance that does not meet those standards.

Challenges in Management
⚫ Globalization
⚫ Technological advancement
⚫ Work force diversity
⚫ Innovation and creativity
⚫ Scientific forecasting
⚫ Strategic planning
⚫ Better corporate governance.
⚫ Quality and productivity
⚫ Dynamic environment
⚫ Ethics and social responsibility

Unit 2 Management and its Evolution

The evaluation of management can be categorized into different parts:

I. Pre-Scientific management period
II. Classical Era (1880-1930),
III. Neo-classical Era/ Behavioural Approach (1930-1950),
IV. Modern Management era (1950-onwards).

I. Pre-Scientific Era
Prof Babbage, a renowned professor in mathematics at Cambridge University
discovered that manufacturers were relying on guesswork and suggestions and urged
them to utilize mathematics and science to be more accurate and productive.(United
Kingdom (1729 – 1871))
Robert was regarded as the father of personnel management because of his approach
and focus on employee welfare. He introduced co-operation and trade unions.(United
Kingdom (1771 – 1858))

II. Classical Era (1880-1930),

Classical management theory: emerged from the Industrial Revolution and revolves
around maximizing efficiency and production.

The classical theory of management, which emerged during the 19th century’s
Industrial Revolution, is a management approach that prioritizes efficiency and
productivity in organizations.
It views employees as having primarily economic and physical needs while neglecting
their social needs and job satisfaction.
The theory emphasizes streamlined operations, specialization of labor, and centralized
decision-making under a clear hierarchical structure

Features& Objectives of Classical theories

⚫ Objectives
◼ Maximize productivity
◼ Streamline operations
◼ Achieve efficiency
◼ Centralize decision-making
◼ Specialize labor
◼ Increase profit
Features
⚫ Hierarchial structure-different levels --structure ensures smooth communication,
well-defined roles, and effective decision-making.
⚫ Specialisation in job-increase efficiency and productivity by preventing
multitasking and reducing time wasted on task switching
⚫ Incentives-workers are primarily driven by economic needs, and offering them
monetary rewards for increased productivity will boost their motivation to work
harder and be more efficient.
⚫ Autocratic Leadership--allows for quick decision-making without the need for
extensive consultations. The leader’s instructions are communicated downward to
the employees, ensuring a clear chain of command.

Classical Theories of Management

1. Scientific Management Approach
2. Administrative Mangement Approach
3. Bureaucratic Approach

1. Scientific Management Approach

Scientific Management Theory, also known as Taylorism, is a management approach
developed by Frederick W. Taylor (father of scientific management) with the aim of
enhancing economic efficiency and labor productivity-- employs scientific methods to
analyze work processes and optimize production.

Taylor’s core principles include selecting methods

⚫ Management must adopt scientific methods in Industry,
⚫ Specialisation should be practiced--assigning tasks based on worker aptitudes,
⚫ Scientific selection and training methods should be adopted
⚫ Standardization in task needed---dividing the workload effectively- standard time
for each task---task to be developed through work analysis
⚫ Differential piece rate system to be followed---wage incentives should be utilized.
⚫ By conducting time and motion studies, managers can identify the most efficient
ways to perform tasks and improve overall efficiency.
⚫ intimate friendly cooperation between the management and workers

Criticism of Scientific Management

Scientific management focused on the stakeholders in the process of
industrial management. Hence, it was criticized by the employers, workers
and leaders:
a. By insisting on one best way of doing a work, scientific management
ignored the creativity and innovation of the workers while on job.
b. In the name of increasing the productivity and improvement in the
standard of work, the workers were reduced to a cog in the machine.
c. Analysis of the task in the job led to work getting fragmented with
narrow specialization. The result was on the mechanical way of
conducting a particular task.
d. The management emphasized on the design and planning of the job,
ignored the worker and his experience, thus making it repetitive and
boring.
e. The over emphasized practice of the rule of thumb methods made the
workers feel insecure in the name of scientific standards given by the
management.

2. Henry Fayol’s Administrative Management Theory

Administrative Management Theory, developed by Henri Fayol, focuses on
organizing and managing an organization’s entire structure. It emphasizes formal
structures, clear roles, and efficient coordination to enhance productivity.
Fayol’s 14 principles of management helped to guide effective management practices.
The theory advocates five essential managerial functions: planning, organizing,
commanding, coordinating, and controlling.
Fayol’s principles continue to influence modern management practices worldwide.
However, the approach has limitations, neglecting human behavior and adaptability in
dynamic environments.
Fayol’s principles highlight top-level management’s role as a foundation for overall
productivity.

14 Principle of management by Henry Fayol

1. Division of labour:- Henri Fayol has stressed on the specialization of jobs. He recommended
that work of all kinds must be divided & subdivided and allotted to various persons according to their
expertise in a particular area.
2. Authority and Responsibility:- Authority & responsibility are co-existing. If authority is given
to a person, he should also be made responsible. In a same way, if anyone is made responsible for
any job, he should also have concerned authority.

3. Discipline:- Discipline means sincerity, obedience, respect of authority & observance of rules
and regulations of the enterprise”. This principle applies that subordinate should respect their
superiors and obey their order. It is an important requisite for smooth running of the enterprise.

4. Unity of command:- A sub-ordinate should receive orders and be accountable to one and only
one boss at a time. In other words, a sub-ordinate should not receive instructions from more than one
person
5. Unity of direction:- Fayol advocates one head one plan which means that there should be one
plan for a group of activities having similar objectives.

6. Subordination of individual interest to general interest:- An organization is much bigger

than the individual it constitutes therefore interest of the undertaking should prevail in all
circumstances.
7.Remuneration:- The quantum and method of remuneration to be paid to the workers should be
fair, reasonable, satisfactory & rewarding of the efforts.

8. Centralization:- Centralization means concentration of authority at the top level.

In other words, centralization is a situation in which top management retains most of the decision
making authority.

9. Scalar Chain:- Fayol defines scalar chain as ’The chain of superiors ranging from the ultimate
authority to the lowest”. Every orders, instructions, messages, requests, explanation etc. has to pass
through Scalar chain.

10. Order:- This principle is concerned with proper & systematic arrangement of things and people.
Arrangement of things is called material order and placement of people is called social order.

11. Equity:- It implies that managers should be fair and impartial while dealing with the
subordinates. They should give similar treatment to people of similar position. They should not
discriminate with respect to age, caste, sex, religion, relation etc.

12. Stability of tenure:- Fayol emphasized that employees should not be moved frequently from
one job position to another i.e. the period of service in a job should be fixed.

13. Initiative:- Workers should be encouraged to take initiative in the work assigned to them.
It means eagerness to initiate actions without being asked to do so.

14. Espirit de Corps:- It refers to team spirit i.e. harmony in the work groups and mutual
understanding among the members. Espirit De’ Corps inspires workers to work harder.

3. Max Weber’s Bureaucracy Theory

The Bureaucracy Theory of Management, introduced by Max Weber, emphasizes
efficient organizational structure and administration.

Features of Bureaucratic approach are:-

⚫ Tasks are divided into very specialised jobs.
⚫ A rigorous set of rules must be followed to ensure predictability and eliminate
uncertainty in task performance
⚫ A stable and well defined hierarchy of authority needed
⚫ Superiors must have impersonal attitude
⚫ Written rules for decisions and keeping of extensive files
⚫ Specified qualifications for individuals holding office.
⚫ Employment and promotion based on merit & technical competency
⚫ Life long employment.

Bureaucracy, as defined by Weber, is an organizational structure characterized by

rules, standardized processes, procedures, and requirements, as well as a clear and
meticulous division of labor, clear hierarchies and professional and almost impersonal
interactions between employees.

II.Neo-Classical Theories

Also called human relations and behavioural science approach.

Neo-Classical theory gave greater emphasis to man behind the machine and stressed
the importance of individual as well as group relationship in the plant or workplace.
Human Relations management theory originated between 1924 and 1932 during
experiments conducted at the Hawthorne plant of the Western Electric Company in
Cicero, Illinois.1

These studies were started by scholars from the Massachusetts Institute of

Technology (MIT), but Elton Mayo and Fritz J. Roethlisberger of the Harvard
Business School became involved in 1927 and eventually popularized the subject.
Neo-Classical approach may be analysed in three parts, namely
1. Hawthorne Experiment, 2. Human Relation Movement, 3 Behavioural Approach.

1.The Hawthorne experiment consists of four phases. These parts are briefly
described below:-
Phase-I---Illumination Experiment--When the intensity of light was increased, the
output also increased. The output showed an upward trend even when the illumination
was gradually brought down to the normal level.--other factors like length of the
working day, rest hours, and other physical conditions
Phase-II------Relay Assembly Test Room Experiment.
A small homogeneous work-group of six girls was constituted. These girls were
friendly to each other and were asked to work in a very informal atmosphere under
the supervision of a researcher. Productivity and morale increased considerably
during the period of the experiment. Productivity went on increasing and stabilized at
a high level even when all the improvements were taken away and the pre-test
conditions were reintroduced.
Phase-III--Interviewing Programme.-Initially, a direct approach was used whereby
interviews asked questions considered important by managers and researchers. The
researchers observed that the replies of the workmen were guarded. Therefore, this
approach was replaced by an indirect technique, where the interviewer simply listened
to what the workmen had to say. The findings confirmed the importance of social
factors at work in the total work environment.
Phase- IV--Bank Wiring Test Room Experiment.--The experiment was conducted
to study a group of workers under conditions which were as close as possible to
normal. This group comprised of 14 workers. After the experiment, the production
records of this group were compared with their earlier production records. It was
observed that the group evolved its own production norms for each individual worker,
which was made lower than those set by the management. Because of this, workers
would produce only that much, thereby defeating the incentive system. Those workers
who tried to produce more than the group norms were isolated, harassed or punished
by the group.
The findings of the study are:-
Each individual was restricting output.
The group had its own “unofficial” standards of performance.
Individual output remained fairly constant over a period of time.
Informal groups play an important role in the working of an organization.

2. Human relations Approach

The human relations approach, as its primary objective, seeks to examine and
analyses the impact of the human factor towards more effective management.
Some specific contributions of this approach are:
(i) An organization is a social system; with a culture of its own.
(ii) Informal groups have a serious impact on workers’ productivity.
(iii) There are conflicts between the organisation and the individuals.
(iv) Friendly supervision has a favourable influence on human efficiency at work.
(v) Free flow of communication, in the organisation makes for good human relations.

3. Behavioural approach

⚫ Behavioural approaches have been explained in the works of Ivan Pavlov,

Edward Lee Thorndike, John B. Watson and B.F. Skinner.
⚫ Instead of focusing on the internal conflicts in the form of thoughts and beliefs,
the focus of behaviourism approach is on observable or overt patterns which are
learnt from the environment.
⚫ Behavioural Psychology is a learning theory which is based on the notion that all
behaviours are an outcome of conditioning.
⚫ Because of the interaction with the environmental factors, behaviourists opine
that our actions or responses are governed by the environmental stimuli.
⚫ According to the Behaviourists, behaviour can be systematically studied and
analyzed, irrespective of the internal mental conditions like moods, emotions and
cognitions which are relatively too subjective.
⚫ Key stress of behaviourists is on conditioning. They believed that any individual
can be trained to handle any task irrespective of genetic traits or internal feelings
by way of effective conditioning.
III. Modern Management Theory
Modern management theory: followed on the heels of World War II and combines
mathematical principles with sociology to develop holistic approaches to management.

Modern Management Theory is a contemporary approach that views organizations as

dynamic systems influenced by both internal factors and the larger external
environment.
The modern theory recognizes that individuals are driven by various factors, such as
satisfaction and personal growth.
1. Decision Theory of Management
2. Management Science Theory
3. System Theory of Management

1. .Decision Theory of Management

Decision theory of management is a study of how decisions are made amid
uncertainty in the workplace. It uses tools like math, philosophy, and psychology to
understand the decision-making process. This theory aims to make rational choices
that bring the most value to the organization, enhancing effectiveness and efficiency.
Herbert Simon, Luther Gulick, and Lyndall Urwick are notable contributors.
The theory guides managers in logical decision-making, considering probabilities and
uncertain consequences. It emphasizes making informed choices under uncertain
conditions, benefiting organizations by improving decision-making processes.

2. Management Science Theory

Management Science Theory, also known as Operations Research or the Quantitative
Approach, is a problem-solving method that uses mathematical and statistical tools to
address complex business challenges.
 It involves optimizing processes, decision-making, and resource allocation.
This approach complements other management theories, empowering managers to
make informed decisions by crunching numbers and analyzing data.
Major contributors include George Dantzig, John von Neumann, and Tjalling
Koopmans.
While it enhances efficiency and planning, critics point out its potential overemphasis
on quantitative methods, unrealistic assumptions, and limited application in dynamic
environments.

3. System Theory of Management

The System Theory of Management sees organizations as interconnected systems
working towards common goals.
It shifts from viewing organizations as machines to a holistic approach.
Departments are interdependent, and changes in one can affect others. The system is
open, receiving inputs and producing outputs that impact the environment.
This approach assesses the organization’s overall effectiveness, emphasizing synergy
between subsystems.
Benefits include a broader perspective, better decision-making, problem-solving,
adaptability, and collaboration.
Critics find it abstract with vague guidelines and may not address specific issues
effectively.

Unit 3 Roles of Managers

Management Levels

Role of Managers
The Mintzberg managerial roles are categorized under three sections—interpersonal,
informational, and decisional. These three categories comprise 10 roles of a manager.
To be a good leader, you have to manage your teams by leveraging strengths,
resolving conflicts, and prioritizing tasks.
He divided them into three categories:
• Interpersonal Roles -Relating To A Manager’s Authority In An Organization
• Informational Roles -Involving Communicating Important Information and
Data
• Decisional Roles- Concerning Decision-Making, Negotiations and
Implementation.
Interpersonal Roles:

1. Figurehead
 As the Figurehead, a manager is responsible for official and social duties that reflect
their status and authority in the organization. It’s about building a strong
relationship with peers and subordinates. You can become a good role model by
being empathetic and compassionate.

2. Leader
The Leader inspires, encourages, and builds morale. Managers build lasting
relationships with team members by monitoring their performance and coaching
them when needed. Emotional intelligence can help you develop a trust-based
relationship with your team.

3. Liaison
A manager has to exchange information with various departments and teams as well
as with external stakeholders. Liaising with other organizations, competitors, and
government representatives is equally important for professional development.

Informational Roles:

1. Monitor
The Monitor is responsible for gathering intel for sustained competitive advantage.
To do that, a manager has to assess the market for changes and collect relevant data
that could impact the organization. These are stages in the process of strategic
management that helps an organization to survive the competition.

2. Disseminator
The Disseminator communicates useful and relevant information to team members
and subordinates. It’s important to invite feedback, ideas, and views from each
employee to keep an open channel of communication.

3. Spokesperson
Convey important information about the organization to external stakeholders. This
could be for PR purposes, addressing government policies, or dealing with suppliers.
You must have a clear idea of your company’s brand image to become a successful
spokesperson.

Decisional Roles:

1. Entrepreneur
Be prepared to take initiative as part of your managerial duties. Initiate projects and
address concerns with effective problem-solving skills. Icebreakers and team-
building activities will help you connect with your team.

2. Disturbance Handler
 The Disturbance Handler ensures that everything runs smoothly. Key
responsibilities include resolving conflicts with mentoring sessions, identifying
areas for improvement, and addressing gaps in teamwork.

3. Resource Allocator
The Resource Allocator is concerned with fund allocation, cutting costs, and
distributing resources across the organization. You have to apportion available
resources such as funding, human resources, and materials where needed.

4. Negotiator
A successful negotiation leads to a win-win outcome. A manager has to participate
in negotiations with team members and other stakeholders to reach a favorable
outcome for both parties. This role distinguishes you from other managers because
you have to consider your team’s best interests.
Henry Mintzberg’s managerial roles are useful to assess your strengths and
weaknesses as a manager. You can improve your managerial duties with practice and
experience.

Managerial Skills
⚫ Human/Interpersonal Skill The human or the interpersonal skills are the
skills that present the managers’ ability to interact, work or relate effectively with
people
⚫ Technical Skills Technical skills involve skills that give the managers the ability
and the knowledge to use a variety of techniques to achieve their objectives.
⚫ Decision Making skills Effective decision-making requires thoughtful
consideration without overthinking or becoming sidetracked by minor details.
⚫ Communication Skills A manager's ability to relate and communicate
effectively can unify and motivate a team.
⚫ Conceptual Skills The manager is able to see an entire concept, analyze and
diagnose a problem, and find creative solutions.

Characteristics of Good Manager

⚫ Understand the vision and communicating it.

⚫ Independent thinking and assuming responsibility.
⚫ Taking the right decisions at the right time
⚫ Demonstrating leadership and motivating the team
⚫ Must acquire sufficient knowledge.
⚫ Empathy.
⚫ Emotional balance
⚫ Capability to resolve conflicts and grievances

Changing Role of Manager in Current Situation

⚫ Managers as partners, coach, customers, investors
⚫ Life long learners
⚫ Create future leaders
⚫ Delegation
⚫ Innovation
⚫ Proactive attitude
⚫ Out of box thinking and working