UNIT 1

INSTRUCTOR: DR. FEHMINA

KHALIQUE

Introduction Concepts, Objectives,

Nature Scope and Significance of
management Evolution of
management thought- Contribution
of Taylor, Weber and Fayol
management.
WHAT IS MANAGEMENT?

 According to Harold Koontz,

‘Management is an art of getting
things done through and with the
people in formally organized
groups. It is an art of creating an
environment in which people can
perform and individuals and can co-
operate towards attainment of
group goals.’
 DEFINITIONS

 According to George R. Terry, "Management is a distinct

process consisting of planning, organising, actuating and
controlling, performed to determine and accomplish stated
objectives by the use of human beings and other resources".
 According to Henry Fayol, "To manage is to forecast and to
plan, to organise, to command, to coordinate and to control".
 According to Peter Drucker, "Management is a multi-purpose
organ that manages business and manages managers and
manages workers and work".
 According to Harold Koontz, "Management is the art of getting
things done through and with people in formally organized
groups”.
 According to Mary Parker Follett, "Management is the art of
getting things done through people".
FEATURES OF MANAGEMENT

 Management is Goal-Oriented
 Management integrates
Human, Physical and Financial
Resources
 Management is Continuous
 Management is all Pervasive
 Management is a Group Activity
OBJECTIVES OF
MANAGEMENT
 Getting Maximum Results with
Minimum Efforts.
 Increasing the Efficiency of factors
of Production.
 Maximum Prosperity for Employer &
Employees.
 Human betterment.
IMPORTANCE OF
MANAGEMENT
 It helps in Achieving Group Goals.
 Optimum Utilization of Resources.
 Reduces Costs.
 Establishes Sound Organization.
 Establishes Equilibrium.
 Essentials for Prosperity of Society
FUNCTIONS/PROCESS OF
MANAGEMENT
PLANNING

 It is the basic function of management.

It deals with chalking out a future
course of action & deciding in advance
the most appropriate course of actions
for achievement of pre-determined
goals. According to KOONTZ,
“Planning is deciding in advance -
what to do, when to do & how to
do. It bridges the gap from where
we are & where we want to be”.
ORGANIZING

It is the process of bringing together

physical, financial and human resources
and developing productive relationship
amongst them for achievement of
organizational goals. According to
Henry Fayol, “To organize a business
is to provide it with everything
useful or its functioning i.e. raw
material, tools, capital and
personnel’s”.
STAFFING

 It is the function of manning the

organization structure and keeping it
manned. Staffing has assumed
greater importance in the recent
years due to advancement of
technology, increase in size of
business, complexity of human
behavior etc. The main purpose o
staffing is to put right man on right
job.
DIRECTING

 It is that part of managerial function

which actuates the organizational
methods to work efficiently for
achievement of organizational
purposes. It is considered life-spark
of the enterprise which sets it in
motion the action of people
because planning, organizing and
staffing are the mere preparations
for doing the work.
CONTROLLING

 It implies measurement of accomplishment

against the standards and correction of
deviation if any to ensure achievement of
organizational goals. The purpose of controlling
is to ensure that everything occurs in
conformities with the standards. An efficient
system of control helps to predict deviations
before they actually occur. According to Theo
Haimann, “Controlling is the process of
checking whether or not proper progress
is being made towards the objectives and
goals and acting if necessary, to correct
any deviation”.
WHO ARE MANAGERS?

 Managers
 Individuals in an organization who direct
the activities of others.
 Hired by the organization.
 Someone who coordinates and oversees
the work of other people so that
organizational goals can be accomplished.
 The people responsible for supervising
the use of an organization’s resources to
meet its goals
WHERE MANAGERS WORK?

Organization
 A systematic arrangement of people
brought together to accomplish some
specific purpose; applies to all
organizations.
 Where managers work (manage).
Common Characteristics of Organizations
– Distinct purpose and goals
– People
– Systematic structure
WHAT DO MANAGER’S DO :
MANAGERIAL ROLES
Interpersonal Informational Decisional

Figurehead
Figurehead Monitor
Monitor Entrepreneur
Entrepreneur

Leader
Leader Disseminator
Disseminator Disturbance
Disturbance
Handler
Handler
Liaison
Liaison Spokesperson
Spokesperson
Resource
Resource
Allocator
Allocator

Negotiator
Negotiator
 INTERPERSONAL ROLES

Roles that managers assume to provide direction

and supervision to both employees and the
organization as a whole.
 Figurehead—symbolizing the organization’s mission
and what it is seeking to achieve.
 Leader—training, counseling, and mentoring high
employee performance.
 Liaison—linking and coordinating the activities of
people and groups both inside and outside the
organization.
 INFORMATIONAL ROLES

 Informational Roles–obtaining and sharing

information
• Monitor Role: managers scan their
environment for information, actively contact
others for information.
• Disseminator Role: managers share the
information they have collected with their
subordinates and others in the company.
• Spokesperson: Managers shall be
responsible for providing information outside
to the concerned stakeholders.
 DECISIONAL ROLE

Roles associated with methods managers

use in planning strategy and utilizing
resources.
◦ Entrepreneur—deciding which new
projects or programs to initiate and to
invest resources in.
◦ Disturbance handler—managing an
unexpected event or crisis.
◦ Resource allocator—assigning resources
between functions and divisions, setting the
budgets of lower managers.
◦ Negotiator—reaching agreements
 LEVELS OF MANAGEMENT

Top Level Management CEO

COO
CIO

Middle Level Management

General Mgr
Plant Mgr
Regional Mgr

First-Line Office Manager

Management Shift Supervisor
Department Manager
Team Leader
TOP MANAGERS

Responsible
Responsible for…
for…

Creating
Creating aa context
context for
for change
change

Developing
Developing attitudes
attitudes of
of commitment
commitment
and
and ownership
ownership in
in employees
employees
Creating
Creating aa positive
positive organizational
organizational
culture
culture through
through language
language and
and action
action

Monitoring
Monitoring their
their business
business environments
environments
MIDDLE MANAGERS

Responsible
Responsible for…
for…

Setting
Setting objectives
objectives consistent
consistent with
with top
top
management
management goals,
goals, planning
planning strategies
strategies
Coordinating
Coordinating and
and linking
linking groups,
groups,
departments,
departments, and
and divisions
divisions
Monitoring
Monitoring and
and managing
managing the
the performance
performance
of
of subunits
subunits and
and managers
managers who
who report
report to
to them
them
Implementing
Implementing the
the changes
changes or
or strategies
strategies
generated
generated by
by top
top managers
managers
FIRST-LINE MANAGERS

Responsible
Responsible for…
for…

Managing
Managing the
the performance
performance of
of
entry-level
entry-level employees
employees

Teaching
Teaching entry-level
entry-level employees
employees
how
how to
to do
do their
their jobs
jobs

Making
Making schedules
schedules and
and operating
operating plans
plans based
based on
on
middle
middle management’s
management’s intermediate-range
intermediate-range plans
plans
 MANAGERIAL SKILLS

 Conceptual skills
 The ability to analyze and diagnose a situation
and distinguish between cause and effect.
 Human skills
 The ability to understand, alter, lead, and
control the behavior of other individuals and
groups.
 Technical skills
 Job-specific skills required to perform a
particular type of work or occupation at a high
level.
FUNDAMENTAL
MANAGEMENT SKILLS
 Management Skill Mixes at Different
Organizational Levels
Core skills and their use in the
different levels
Managerial levels
Lower Middle Top

Conceptual skills

Human skills

Technical skills
EVOLUTION OF
MANAGEMENT
EVOLUTION OF MANAGEMENT
THOUGHT

 The Classical Theory of Management (Classical Approach): It

includes the following three streams of thought: (i)
Bureaucracy, (ii) Scientific Management; and (iii)
Administrative Management

 The Neo-classical theory of Management: It includes the

following two streams: (i) Human Relations Approach and (ii)
Behavioral Sciences Approach.

 The Modern Theory of Management: It includes the following

three streams of thought: (i) Quantitative Approach to
Management (Operations Research); (ii) Systems Approach to
Management and (iii) Contingency Approach to Management.
SCIENTIFIC MANAGEMENT

 Timeline: 1911
 By: Frederick W. Taylor
 About: Its main objective was
improving economic efficiency,
especially labor productivity. It was one
of the earliest attempts to apply
science to the
engineering of processes and to
management.
1. Scientific task setting: F. W. Taylor suggested the
introduction of standard task which every worker is
expected to complete within one day (working hours)
the task is to be calculated through careful scientific
investigation.
 For this, work study (i.e. method study and work
measurement study) is essential. Taylor suggested
time study, motion study, fatigue study and rate-
setting for the introduction of scientific task.
 Time study is the art of observing and recording the
time required to do each detailed element in an
industrial operation.

FEATURES OF SCIENTIFIC MANAGEMENT

 Motion study refers to the study and analysis of the
movements of an operator while performing a job so
that attempts can be made to remove
useless/unwanted movements from the process.
 Both the studies together help in determining the best
method of performing a job and the standard time
allowed for it.
 This replaces the old rule-of-thumb knowledge of the
workers.
 The workload, the best method of performing the
same work and the time within which it must be
performed are suggested in this feature of scientific
management by Taylor.

FEATURES OF SCIENTIFIC MANAGEMENT

2. Planning the task: For performing the task by every
worker, Taylor suggested the need of planning the
production activity accurately. This idea of planning is
Taylor's gift to the science of management. Planning of
task gives answers to the following questions. What has
to be done, how it is to be done, where the work shall be
done and when the work shall be done.

FEATURES OF SCIENTIFIC MANAGEMENT

3. Scientific selection and training of workers:

 need of scientific selection of workers for the

plant/production activities. The procedure of selection must
be systematic so as to select the best and the most
suitable persons for different types of jobs.
 correct placement of workers is equally important.
 need of training of workers so as to raise their ability or
efficiency. Training is to be integrated with the promotion
policy.
 differential piece wage plan for compensation payment to
workers.
 importance of cordial relations between management and
workers.

FEATURES OF SCIENTIFIC MANAGEMENT

4. Standardization: Taylor suggested the importance
of standardization of tools and equipment, materials,
conditions of work and speed of machines. This brings
co-ordination in different activities and all workers will
be able to perform the task assigned easily. The workers
will have satisfactory working conditions for work due to
such standardization.

FEATURES OF SCIENTIFIC MANAGEMENT

5. Specialization: Taylor suggested specialization in
the administrative and organizational setup of the plant.
He suggested functional foremanship. Taylor
recommended eight functional foremen for different
activities and functions. The foremen suggested by him
are like route clerk, instruction card clerk, speed boss
etc. Such specialization is useful for raising efficiency of
the whole organisation.

FEATURES OF SCIENTIFIC MANAGEMENT

6. Mental revolution: The success of scientific
management rests basically on the attitude of
management and workers. They must give up their old
ideas and methods and must accept new scientific
methods. For this, mental revolution on the part of both
is essential. Cooperation from workers and management
for the introduction of scientific management depends
on this mental revolution.

FEATURES OF SCIENTIFIC MANAGEMENT

PRINCIPLES OF SCIENTIFIC
MANAGEMENT

 Replace rule-of-thumb work methods with methods

based on a scientific study of the tasks.
 Scientifically select, train, and develop each worker
rather than passively leaving them to train
themselves.
 Cooperate with the workers to ensure that the
scientifically develop methods are being followed.
 Divide work nearly equally between managers and
workers, so that the managers apply scientific
management principles to planning the work and the
workers actually perform the tasks.
CRITICISM FROM EMPLOYERS

1. Huge investment required: Heavy investment is

necessary for reorganization of preliminary
standardization of tools, machines and equipment
and conduct of time and motion studies and other
research activities for the introduction of scientific
management. Such investment may not be possible
in small and medium size enterprises.
2. Sudden change may disturb existing working
arrangements: Sudden change due to the
introduction of scientific management may paralyze
the existing arrangement of work and will bring the
entire Organisation in difficulties. There will be loss
due to reorganization, if scientific management is to
be introduced.
CRITICISM FROM EMPLOYERS

3. Unsuitable to small units: Small manufacturers

argue that the concept of scientific management is
not suitable to their units due to financial and other
difficulties.
4. Benefits after a long period: The benefit of
scientific management will be available only after a
long period and the business unit may come in
financial and other difficulties during the process of
introduction of new changes as suggested in the
scientific management.
5. Huge overhead expenses required:
Introduction of scientific management involves huge
overhead expenses which may erode profitability.
1. Heavy burden on workers: Workers feel that they will have to share
more burden of work as a result of introduction of scientific management.
They also fear that the benefits will he shared by the employer alone and that
they will be at a loss from all sides. Workers and their unions feel that it will
lead to their exploitation and they oppose scientific management on this
ground.
2. Reduces initiative among workers: Workers and trade unions argue
that scientific management will destroy their initiative and they will be
converted into machines in the production process with no freedom, initiative
and choice. Similarity, over-specialization (excessive specialization) will lead
to monotony and mental fatigue. Hence, they oppose Taylor's scientific
management.
3. Possibility of unemployment: Workers and their unions also feel that
scientific management will lead to unemployment and that workers will be
removed due to the use of labour-saving devices. This will lead to loss of
employment and income to workers. This is likely to make trade unions weak
and hence they oppose scientific management.

CRITICISM FROM EMPLOYEES

4. Exploitation of workers: Workers argue that they will be
exploited under scientific management as they will have to share
more burden of work without corresponding increase in the wage
rate. Trade unions also oppose to scientific management as it is likely
to put more burden of work on the workers without corresponding
monetary benefit.
5. Possible adverse effects on workers unity: Trade unions also
oppose scientific management as they fear that the unity among
workers will be adversely affected. Workers will be divided into
efficient and inefficient categories. In addition, different piece rate
plans will be introduced in place of uniform wage rate. As a result,
workers will be divided. Workers getting high salary will not be
interested in the union activities and this will make their union week
and ineffective. Even more unions and rival unions will be formed. In
brief, trade unions strongly criticize scientific management as it
breaks solidarity of workers

CRITICISM FROM EMPLOYEES

ADMINISTRATIVE
MANAGEMENT
 Timeline: 1916
 By: Henri Fayol
 About: Fayol's work was one of the first
comprehensive statements of a general
theory of management. He proposed
that there were Six primary functions of
management and 14 principles of
management.
FUNCTIONS OF
MANAGEMENT
Fayol is the first management thinker who provided the
conceptual framework of the functions of management in his
book “General and Industrial Management. The functions of
management according to Fayol are,

 Planning
 Organising
 Staffing
 Commanding
 Coordinating
 Controlling
 14 PRINCIPLES OF
 Division of work. Work should be divided among individuals and
groups to ensure that effort and attention are focused on special
MANAGEMENT:
portions of the task. Fayol presented work specialization as the
best way to use the human resources of the organization.
 Authority. Managers must be able to give orders. Authority gives
them this right. Note that responsibility arises wherever authority
is exercised.
 Discipline. Employees must obey and respect the rules that
govern the organization. Good discipline is the result of effective
leadership, a clear understanding between management and
workers regarding the organization's rules, and the judicious use of
penalties for infractions of the rules.
 Unity of command. Every employee should receive orders from
only one superior.
 Unity of direction. Each group of organizational activities that
have the same objective should be directed by one manager using
one plan.
 14 PRINCIPLES OF
 Subordination of individual interests to the general interest.
The interests of any one employee or group of employees should
MANAGEMENT:
not take precedence over the interests of the organization as a
whole.
 Remuneration. Workers must be paid a fair wage for their services.
 Centralization. Centralization refers to the degree to which
subordinates are involved in decision making. Whether decision
making is centralized (to management) or decentralized (to
subordinates) is a question of proper proportion. The task is to find
the optimum degree of centralization for each situation.
 Scalar chain. The line of authority from top management to the
lowest ranks represents the scalar chain. Communications should
follow this chain. However, if following the chain creates delays,
cross-communications can be allowed if agreed to by all parties and
superiors are kept informed.
 Order. People and materials should be in the right place at the right
time.
14 PRINCIPLES OF
MANAGEMENT:
 Equity. Managers should be kind and fair to their
subordinates.
 Stability of tenure of personnel. High employee
turnover is inefficient. Management should provide
orderly personnel planning and ensure that
replacements are available to fill vacancies.
 Initiative. Employees who are allowed to originate
and carry out plans will exert high levels of effort.
 Esprit de corps. Promoting team spirit will build
harmony and unity within the organization.
ADMINISTRATIVE
MANAGEMENT
 Criticisms:
 Management Oriented Theory
 Lack of Importance to Informal
Organization
 Concepts Borrowed From Military Science
 Mechanical Approach
BUREAUCRATIC
MANAGEMENT
 Timeline:
 By: Max Webber
 About: According to Weber, the need for
bureaucratization in the ancient empire state arises
from the maintenance of armies, public finances and
most importantly power and politics.
FEATURES OF BUREAUCRATIC
MANAGEMENT
 Administrative Class
 Hierarchy
 Division of Work
 Official Rules
 Impersonal relations
 Official Records
 (i) People are paid and are whole time employees,
1. ADMINISTRATIVE CLASS:
 (ii) They receive salary and other perquisites normally
based on their positions,
 (iii) Their tenure in the organisation is determined by
the rules and regulations of the organisation,
 (iv) They do not have any proprietary interest in the
organisation,
 (v) They are selected for the purpose of employment
based on their competence.
2. HIERARCHY:

 The basic feature of bureaucratic organisation is

that there is hierarchy of positions in the
organisation. Hierarchy is a system of ranking
various positions in descending scale from top to
bottom of the organisation. In bureaucratic
organisation, offices also follow the principle of
hierarchy that is each lower office is subject to
control and supervision by higher office.
 This hierarchy serves as lines of communication and
delegation of authority. It implies that
communication coming down or going up must pass
through each position.
3. DIVISION OF WORK:

 Work of the organisation is divided on the basis of

specialisation to take the advantages of division of
labour. Each office in the bureaucratic organisation has
specific sphere of competence.
 This involves:
 (i) a sphere of obligations to perform functions which
has been marked off as part of a systematic division of
labour;
 (ii) the provision of the incumbent with necessary
authority to carry out these functions; and
 (iii) the necessary means of compulsion are clearly
defined and their use is subject to definite conditions.
4. OFFICIAL RULES:

 A basic and most emphasised feature of

bureaucratic organisation is that administrative
process is continuous and governed by official
rules.
 Rules provide the benefits of stability, continuity,
and predictability and each official knows precisely
the outcome of his behaviour in a particular matter.
5. IMPERSONAL
RELATIONSHIPS:
 A notable feature of bureaucracy is that
relationships among individuals are governed
through the system of official authority and rules.
Official positions are free from personal
involvement, emotions and sentiments. Thus,
decisions are governed by rational factors rather
than personal factors.
6. OFFICIAL RECORD:

 Bureaucratic organisation is characterised by

maintenance of proper official records. The
decisions and activities of the organisation are
formally recorded and preserved for future
reference. This is made possible by extensive use of
filling system in the organisation. An official record
is almost regarded as encyclopedia of various
activities performed by the people in the
organisation.
 IMPORTANCE OF
1. The rules and procedures are decided for every work it leads
to, consistency in employee behaviour. Since employees are
BUREAUCRATIC MGT
bound to follow the rules etc., the management process
becomes easy.
2. The duties and responsibilities of each job are clearly defined
there is no question of overlapping or conflicting job duties.
3. The selection process and promotion procedures are based
on merit and expertise. It assists in putting right persons on
right jobs. There is optimum utilisation of human resources.
4. The division of labour assists workers in becoming experts in
their jobs. The performance of employees improves
considerably.
5. The enterprise does not suffer when some persons leave it. If
one person leaves then some other occupies that place and the
work does not suffer.
 DISADVANTAGES OF
1. This system suffers from too much of red tape and
paper work.
BUREAUCRATIC MGT
2. The employees do not develop belongingness to the
organisation.
3. The excessive reliance on rules and regulations and
adherence to these policies inhibit initiative and growth
of the employees. They are treated like machines and
not like individuals. There is neglect of human factor.
4. The employees become so used to the system, they
resist to any change and introduction of new techniques
of operations.
THANKS