Introduction to Management-Concepts of Management

Unit I
Introduction to Management

Introduction
• Management is as old as man
• Management started when man started living in groups. It relates to
achieve certain objectives.
• Management begin in family, and after that it is expanded in tribes &
finally the scope was increased up to urbanization.

Concepts of Management
• Nature , Importance and Functions of Management
• Management is the administration of organizations, whether they are
a business, a nonprofit organization, or a government body through
business administration, nonprofit management, or the political
science sub-field of public administration respectively.
• It is the process of managing the resources of businesses,
governments, and other organizations.
• Today management basically concern with changes and challenges,

Management
• Management is an art of getting things done through others.
• Management principles are universal in nature.
• Management is dynamic not rigid.
• Management is necessary for all types of organization, such as public
sector, private sector, govt. department, hotel, hospital, hostels,
educational institutes, require management for several growth and
expansion.
• Management plays a key role in improving standard of living of the
people in the society through developing an ideal organizational
structure and making economic use of available resources.
• Managing is concerned with productivity, which implies effectiveness
and efficiency.

Definitions of Management
• 1) According to Taylor:- “Management is the art of knowing what you
want to do and then seeing that it is done in the best and cheapest
way.”
• 2) According to Lawrence:- “Management is the accomplishment of
results through the efforts of other people.”
• 3) According to Henry Fayol:- “To manage is to forecast and to plan, to
organize, to co-ordinate and to control.”

NATURE OF MANAGEMENT
• 1. Management is an activity
• 2. Management is a purposeful activity.
• 3. Management is concerned with the efforts of a group
• 4. Management applies economic principles.
• 5. Management involves decision making.
• 6. Management is getting things done through others.
• 7. Management is an integrating process.
• 8. Management co-ordinates all activities and resources.

IMPORTANCE OF MANAGEMENT
• 1.Management is goal oriented:-Management is concern with
achievement of specific goals. It is always directed towards
achievement of objectives. The success of management is measured
by the extent to which objectives are achieved.
• 2.Management is associated with group efforts:- The business comes
into existence with certain objectives which are to be achieved by a
group and not by one person alone.
• Management gets things done by, with and through the efforts of
group members.
• It co-ordinates the activities and actions of its members towards a
common goal

• 3.Management is intangible:- It is an unseen force, its presence can
be evidence by the result of its efforts up to date order but they
generally remain unnoticed, Where as mismanagement is quickly
noticed.
• 4.Management is an activity and not a person or group of person:-
Management is not people or not a certain class but it is the activity,
it is the process of planning, organizing, directing and controlling to
achieve the objectives of the organization.

• 5.Management is situational:- Management does not advice best way
of doing things. Effective management is always situational. A
manager has to apply principles, approaches and techniques of
management after taking into consideration the existing situations.
• 6.Management is universal:- Most of the principles and techniques of
management are universal in nature. They can be applied to
government organization, military, educational institutes, religious
institutes etc. They provide working guidelines which can be adopted
according to situations

• 7.Management is concern with people:- Since management involves
getting things done through others only human being performed this
activity with the help of planning and control. The man can not be
separated from the management.
• 8.Management is the combination of art, science and profession:-
Management makes use of science as well as art.
• It is science because it collects knowledge with the methods and data,
analyzes and measures it and decision is taken with the help of
experiment.
• Art means application of knowledge for solving various problems.
• In modern times there is separation of ownership and management,
so professional experts are appointed

FUNCTIONS OF MANAGEMENT
• Planning : It includes forecasting, formation of objectives, policies,
programmes, and budget. It is a function of determining the methods
or path of obtaining there objectives.
• It determines in advance what should be done, why should be done,
when, where, how should be done. This is done not only for
organization as a whole but also for every division, section and
department.
• Planning is thinking before doing.

• Organizing:- It includes departmentation, delegation of authority,
fixing of responsibility and establishment of relationship.
• It is a function of providing every thing useful to the business
organization.
• There are certain resources which are mobilize i.e. man, machine,
material, money, but still there are certain limitations on these
resources.
• A manager has to design and develop a structure of various relations.
This structure, results from identification and grouping work,
delegation of authority and responsibility and establishing
relationship.

• Staffing:- It includes man power planning, recruitment, selection,
placement and training.
• People are basically responsible for the progress of the organization.
• Right man should be employed for right job.
• It also involved training of personnel and proper remuneration.

• Directing:- It includes decision making, supervising, guidance etc.
• It reflects providing dynamic leadership. When the manager performs
these functions, he issues orders and instructions to supervisors.
• It also implies the creation of a favorable work, environment
motivation, managing managers, managing workers and managing
work environment

• Communication:- Communication provides the vital link in any
organization.
• Every successful manager has to develop an effective system of
communication.
• Communication means exchange of facts, ideas and information
between two or more person.
• It helps in building up high moral.

• Controlling:- It is a process of checking actual performance against
standard performance.
• If there is any difference or deviation then these differences should
be detected and necessary steps should be taken.
• It involves three elements:
• 1. Establishing standard of performance.
• 2. Measuring actual performance with establishment.
• 3. Finding out reasons for deviation.

The other functions of management
• Motivation:- In a well organization unforeseen problems are created.
It becomes necessary for the workers to have a leader, to whom they
can consult for the guidance.
• One must help the worker to solve their problems.
• The manager is the leader for them.
• So he should accept the problems, should appreciate the workers for
the work done by them.
• He has to act as a well motivation source for he workers.

• Decision Making:- It is the process in which a lot of actions are
involved and lot of alternatives are available.
• A manager has to choose right alternative for attainment of his goals.
• There are many decisions which include marketing decision, cost
price decision and capital investment decision.

• Forecasting:- Correct sales forecasting is essential for manufacturing
organization. This helps in production, by making available right
workers and right material at right place and at right time.
• It also helps manager for purchasing of raw materials, equipment's
and labours.
• Many times production is made in advance to meet future demands
and forecasting is essential because of short supply of raw material,
lack of proper control, to fix up sales targets and to meet future
financial needs.
• It also helps to give ideas about expansion of business; and for giving
training to the personnel of the organization.

Manager
• The manager of the organization is responsible for doing the following tasks:
• Creating goals and objectives for the organization.
• Creating schedules.
• For increasing the performance, productivity, and efficiency of developing such
strategies.
• Make sure to be compliant with the policies of the company and the regulations
of the industry.
• Mentoring the employees.
• Keep monitoring the budget, productivity level, and performance.
• Resolving the problems of customers.
• Giving training to the workers.

Taylor’s Scientific Management Theory
• Frederic Wilson Taylor was the first person who considered
management as a science.
• Scientific management is a part of early management approaches.
The chief contributor of scientific management is F. W. Taylor. He is
known as Father of Scientific Management (1856 to 1915) was born
in USA.
• He did most of his schooling in France & Germany. He couldn’t finish
his graduation & join Midvale Co. (Steel Work). He worked there for 6
years. In 1884 he raised to the position of Chief Engineers, as mean
while he obtained Masters degree in Physics, Mathematics &
Engineering.

Management is a social science due to the
following reasons:-
• Science is divided into two parts.
• 1. Physical science.
• 2. Social science.
• Management is a social science because it deals with human being
• 1. Systematic collection and processing of information:- Management
collects information either by observation or experiment and
practice.
• E.g. Marketing people collect information about expected sales on
the basis of observation, experiment and practice. The data is
collected. Then it is process and with the help of computer and
statistical tools and then the data is analyzed and decisions are taken.
• .

• 2. Output may change though the inputs are same:- In management
the output may change even when the input remains the same
because it deals with human being. Subordinates working under one
manager may give different result though resources are same
• 3. Principles of Management are universally accepted:-
• All successful organizations must follow established principles of
management, such as division of work, unity of command, authority
and responsibilities, discipline etc.
• So it is said that management is not only an art, a science or a
profession but combination of all.

Taylor’s Experiment when he was working
• In 1898, he joined Bethlehem Steel Co. where he did his experiment
to increase the loading capacity of each worker with regards to
material handling equipment.
• At first one worker was engaged in loading 12.5 tones of iron. But
with the help of time & motion study he proved that one man can
load 47.48 tones because of the change in the size of spade &
systematic arrangement of instruments. With the help of proper
planning organization can earn more profit.
• Initially the workers in that company are 500 to 600 because of this
the strength of workers reduce to 140 and profit increased by 78,000
dollars.

Definition:-
• Scientific management is concern with exactly knowing what you
want men to do & then see that they are doing in best & cheapest
way.
• Scientific management is also called Taylorism is a theory of
management that analyzes and synthesizes workflows, improving
labor productivity
• The core ideas of the theory were developed by F W Taylor , where
published in his monographs, "Shop Management”(1905) and “The
Principles of Management”(1911)

Taylor observed flaws while observations at
Factory.
• 1.Management lacked clear understanding of worker-management
responsibilities
• 2.Lack of effective slandered of work
• 3.Restricted output and failure to design jobs properly
• 4.Unscientific decisions by management
• 5.Lack of proper studies about division of work among departments.

Taylor’s Four principles of the scientific
management of work
• 1.Gathering of the traditional knowledge of the workman : record and
codify it
• 2.Scientific selection of the workman and his progressive
development
• 3.Brining together the trained workman and the scientific approach
• 4.Teamwork between management and workmen: sharing of a
division of the labor

F W Taylor identified 4 principles of Scientific
Management
• 1.Develop a science of work
• 2.Scientific selection and training
• 3.Educate workers and managers in the benefits of scientific
management
• 4.Specialization and collaboration between workers and managers

His framework for organization was
• Clear delineation of authority and responsibility
• Separation of planning and operation
• Incentive schemes for workers
• Management by exception
• Task specialization

Fayol’s Principles of Management
• The Father of Modern Management Theory
• His theory applied to all levels of management
• It is to organize and regulate the internal activities of organisation

Henri Fayol’s 14 Principles of Management
• 1 .Division of Work : Segregating the work in the workforce amongst
workers will enhance the quality of the product
• It improves-
• 1.Productivity,
• 2.Efficiency,
• 3.Accuracy and
• 4.Speed of the workers

• 2.Authority and Responsibility:
• Authority: Facilitates the management to work efficiently
• Responsibility: Makes management responsible for the work done
under the guidance of leadership
• 3.Desciplne:
• Employees good behavior of employees helps for organization and
self development

• 4.Unity of Command
• Employee should have one boss and follow his command.
• If more than one boss ,can create a confusion and conflict
• 5.Unity of Direction:
• All engaged in same activity should have unified goal
• All people working in the company should have one goal and
motivate which will make the work easier and achieve the set goal
easily

• 6.Subordination of Individual Interest:
• This indicates a company should work unitedly towards the interest of
a company rather than the personal interst.
• Be subordinate to the purposes of the organization.
• Whole chain of command in a company
• 7.Remuneration:
• Important role of motivation
• Remuneration can be monetary and non monetary
• With reference to the individual performance and efforts

• 8.Centralization :The decision making authority should be neutral for
decisions.
• Balance between hierarchy and division of power
• 9.Schalar Chain : Hierarchy steps from top to lowest
• Every employee understands whom to contact immediately
• 10.Order:Company should maintain a well defined work order to have
a favorable work culture. The positive atmosphere in the workplace
will boost more positive productivity

• 11.Equity:All employees should be treated equally and respectfully.it
is responsibility of manager that no employee face discrimination
• 12.Stabilty:An employee delivers the best if they secure in their job. It
is the of the management to offer job security to their employees
• 13.Initiative:The management should support and encourage
employees to take initiatives in an organization. It will help them to
increase their motivation and morale

• 14.Esprit de Crops:
• It is responsible of the management to motivate their employees and
be supportive of each other regularly.Developing trust and mutual
understand will lead to a positive outcome and work environment.

Difference between contribution of F. W. Taylor &
Henry Fayol. F. W. Taylor Henry Fayol
• 1) Place of origin:- F. W. Taylor belongs to U.S.A. Henry Fayol was a
French man.
• 2) Working Process:- The work of F.W. Taylor was related on operative
level, bottom level & & first line manager. Henry Fayol started his
theory from top level to lower level.
• 3) Importance given by them:- Taylor emphasis on work study,
motion study, time study & fatigue study, differential piece rate
(scientific management). Henry Fayol gave importance to the
activities of top level management i.e. controlling & planning.

• 4) Difference in approach: - Taylor stress on the efficiency of workers.
He considered production management as important factor in the
organization. Henry Fayol gave importance to principle of
management which can be applied universally.
• 5) Their contribution: - Taylor gave a scientific base to management.
Henry Fayol gave importance to management training.
• 6) System of wage payment: - Taylor advocated system of differential
piece rate system. Fayol did not mention anything about wage
payment.
• 7) Faith: - Taylor had faith in scientific management. Fayol had faith in
administrative

Social Responsibilities of Management
• Social responsibility is defined as the obligation and commitment of
managers to take steps for protecting and improving society’s welfare
along with protecting their own interest. The managers must have
social responsibility because of the following reasons:
• Organizational Resources - An organization has a diverse pool of
resources in form of men, money, competencies and functional
expertise. When an organization has these resources in hand, it is in
better position to work for societal goals.

• Precautionary measure - if an organization lingers on dealing with the
social issues now, it would land up putting out social fires so that no
time is left for realizing its goal of producing goods and services.
Practically, it is more cost-efficient to deal with the social issues
before they turn into disaster consuming a large part if managements
time.
• Moral Obligation - The acceptance of managers’ social responsibility
has been identified as a morally appropriate position. It is the moral
responsibility of the organization to assist solving or removing the
social problems

• Efficient and Effective Employees - Recruiting employees becomes easier
for socially responsible organization. Employees are attracted to contribute
for more socially responsible organizations. For instance - Tobacco
companies have difficulty recruiting employees with best skills and
competencies.
• Better Organizational Environment - The organization that is most
responsive to the betterment of social quality of life will consequently have
a better society in which it can perform its business operations.
• Employee hiring would be easier and employee would of a superior quality.
There would be low rate of employee turnover and absenteeism. Because
of all the social improvements, there will be low crime rate consequently
less money would be spent in form of taxes and for protection of land.
Thus, an improved society will create a better business environment.

Manager’s social responsibility is not free
from some criticisms
• High Social Overhead Cost - The cost on social responsibility is a social cost which
will not instantly benefit the organization. The cost of social responsibility can
lower the organizational efficiency and effect to compete in the corporate world.
• Cost to Society - The costs of social responsibility are transferred on to the
society and the society must bear with them.
• Lack of Social Skills and Competencies - The managers are best at managing
business matters but they may not have required skills for solving social issues.
• Profit Maximization - The main objective of many organizations is profit
maximization. In such a scenario the managers decisions are controlled by their
desire to maximize profits for the organizations shareholders while reasonably
following the law and social custom.

Top 10 companies in India for CSR and
Sustainability in 2022
• India is the only country in the world with a legislature on mandatory
CSR.
• The biggest corporations in the country are obligated to spend 2 per
cent of their net profits under Corporate Social Responsibility,
according to Company’s Act 2013.
• As part of our series of CSR rankings, here is a glimpse of the CSR of
the top 10 companies by market capitalization in India.

• 1. Reliance Industries Limited
• Reliance is India’s largest company by market capitalisation. It is a
significant global player in the integrated energy value chain and has
established a leadership position in the Retail and Digital Services
business in India.
• Reliance Industries Limited has been the top CSR spender in the
country for the last several years. The Company spent Rs. 1186 crores
on its CSR initiatives in FY2021-22, higher than what it was obligated
to spend as per the Company’s Act (Rs. 1112 crores).

• The main areas of focus of CSR of Reliance Industries include Rural
Transformation, Education, Disaster Response, Health, Sports for
Development, and Arts, Culture and Heritage.
• The company also extended its aid to the nation to combat the
spread of the COVID-19 pandemic.

• 2. Tata Consultancy Services Limited
• Tata Consultancy Services (TCS), an IT services, consulting, and
business solutions company that is part of the Tata Group, has been
assisting many of the biggest companies in the world with their
transformational journeys for more than 50 years.
• In FY2021-22, the company spent more on CSR than was required
(Rs. 716 crores), spending a total of Rs. 727 crores.
• .

• The primary focus areas are education, skilling, employment and
entrepreneurship, with a focus on bridging the opportunity gap for
people and communities
• In FY 2022, TCS estimates that its global community initiatives
reached more than 1.7 million beneficiaries, made possible by over
58,900 employees contributing over 700,000 hours of their
volunteering time to support local community initiatives.

• 3. HDFC Bank Limited
• HDFC Bank is India’s largest private sector bank by assets and the
world’s 10th largest bank by market capitalization as of April 2021. In
FY2021-22, although the bank was obligated to spend Rs. 733.86
crores, it spent Rs. 736.01 crores on its CSR initiatives.
• Initiatives in the areas of Education, Skill training and livelihood
enhancement, Health Care, Sports, Environmental Sustainability and
Rural Development.

• 4. ICICI Bank Limited
• ICICI Bank is a leading private-sector bank in India. It is the fourth
largest company in the country as per market capitalisation. In
FY2021-22, the bank spent Rs. 266.62 crores for its CSR initiatives,
more than it was obligated to spend (Rs. 259.61 crores).
• Initiatives could include tackling resource scarcity problems,
developing the value chain for agricultural products, providing skill
development in smart agricultural practices, and more.

• 5. Infosys Limited
• In India, Infosys Limited was a pioneer in the CSR movement. The
majority of its CSR projects have been carried out through the Infosys
Foundation, which was founded in 1996—long before CSR was
legislated in the country. In FY 2021-22, the company spent Rs.
344.91 crores for its CSR programmes. It was, however, obligated to
spend Rs. 396.70 crores.
• Initiatives, delivered through the Foundation, focus on assistance
with education, improving healthcare, addressing malnutrition and
hunger, destitute care and rehabilitation, rural development,
environmental sustainability and protection of national and historical
heritage and promotion of art and culture.

• 6. Hindustan Unilever Limited
• Hindustan Unilever Limited (HUL) is a consumer goods company
established in 1931. The company’s products are very popular in
Indian households, making it the sixth-largest company in the country
by market capitalisation. In FY2021-22, HUL was prescribed to spend
Rs. 184.43 crores on its CSR. However, it spent Rs. 157.58 crores on it.
• Programs is on areas such as water conservation, health and hygiene,
skill development, education, social advancement, gender equality,
empowerment of women, ensuring environmental sustainability and
rural development projects.

• 7. State Bank of India
• Since 1973, long before India’s government mandated CSR, the State
Bank of India has been actively engaged in CSR practices. Making a
significant and demonstrable difference in the lives of economically,
physically, and socially challenged communities across the nation is
the main goal of the Bank’s CSR philosophy. In FY 2021–22, the bank
invested Rs. 204.10 crores in CSR projects.
• Healthcare, education, livelihood, skill development, environment
protection of national heritage, and empowerment of women, youth,
and senior citizens, among other areas, are the focus of the Bank’s
CSR initiatives.

• 8. Housing Development Finance Corporation Limited
• Housing Development Finance Corporation Limited also known as
HDFC is a major player for housing finance in India. It also has a
presence in banking, life and general insurance, asset management,
venture capital and education loans. In FY 2021-22, the company
spent Rs. 194.03 crores on its CSR initiatives, more than the amount it
was obligated to spend, which stood at Rs. 190.53 crores.
• Environment, supporting persons with disability, community
development and livelihoods.

• 9. Adani Enterprises Limited
• Adani Enterprises Limited is the flagship entity of the Adani Group.
The company spent Rs. 12.87 crores on CSR in FY2021-22.
• Believes that everyone, regardless of who and where they are,
deserves equitable access to opportunities and a fair chance to a
better quality of life

• 10. Bharti Airtel Limited
• The company has contributed Rs. 16.43 crores for CSR. Bharti Airtel
conducts its CSR initiatives through Bharti Foundation. The company
believes that strengthening the education system is an essential
investment in our country’s future and has pledged to contribute
towards it.
• Aims to impact the lives of children and youth by proactively
implementing and supporting programs in primary, secondary, and
higher education as well as sanitation through its Satya Bharti School
Program

Motivation
• The word is derived from the Latin term motivus (“a moving cause”),
which suggests the activating properties of the processes involved
in psychological motivation.
• Motivation is an internal state that propels individuals to engage in
goal-directed behavior
• willingness to do something, or something
that causes such willingness:

Abraham Harold Maslow-
Maslow’s Theory of Hierarchy
American psychologist
Description
Abraham Harold
Maslow was an
American psychologist
who created Maslow's
hierarchy of needs, a
theory of psychological
health predicated on
fulfilling innate human
needs in priority,
culminating in self-
actualization
Born: 1 April
1908, Brooklyn, New
York, United States
Died: 8 June 1970 (age
62 years), Menlo Park,
California,

Maslow’s Need of Hierarchy
• Maslow was a psychology professor at Brandeis University, Brooklyn
College, New School for Social Research, and Columbia University.
• He stressed the importance of focusing on the positive qualities in
people, as opposed to treating them as a "bag of symptoms"

About Frederick Herzberg
• Frederick Irving Herzberg was an American psychologist who became
one of the most influential names in business management.
• He is most famous for introducing job enrichment and the Motivator-
Hygiene theory
• Born: 18 April 1923, Lynn, Massachusetts, United States
• Died: 19 January 2000 (age 76 years), University of Utah Hospital, Salt
Lake City, Utah, United States
• Books: Frederick Herzberg is recognized by his book The Motivation to
Work (1959) and by the Two Factor theory.

• Frederick Herzberg received his Ph.D. in psychology in 1950 and
studied at the City College.
• He was offered a fellowship to attend the Graduate School of Public
health at the University of Pittsburgh where he studied clinical and
abnormal psychology.
• His interest was in industrial mental health
• In 1959, Herzberg proposed his Two Factor theory. It was derived
from Maslow’s Hierarchy of Needs and states that human needs are
arranged in a series of levels in a hierarchy of importance which
causes motivation.

Herzberg Two Factors
• Herzberg's two-factor theory is a motivation theory that suggests that
satisfaction and dissatisfaction at work are influenced by
• Two sets of factors: hygiene factors and motivators
• Hygiene factors are basic job necessities, such as working conditions
and salary, that, if not met, can cause dissatisfaction.
• Motivators, such as recognition and achievement, drive job
satisfaction and motivation.
• The theory asserts that to improve job satisfaction and
motivation, managers must not only provide adequate hygiene
factors but also focus on Motivators

• Improvement of hygiene factors in the workplace by:
• Removing or improving poor business policies
• Show respect to all employees regardless of their position
• Offer higher or competitive salaries
• Implement effective and supportive supervision for all employees
• Improve working conditions
• Provide job security

• Implementation and improvement of motivation factors by
• The organization provides more growth and development
opportunities for its employees
• Recognition of employees achievements and hard work
• Giving employees more responsibilities than they can handle
• Assign employees to duties that they enjoy and that are fitted with
their skills and experiences
• Make work interesting and engaging so that employees are motivated
towards it

Advantages of Herzberg's two-
factor theory
Disadvantages of Herzberg's two
factor theory
•Direct focus on employees'
motivation
•Companies can solve problems
faced by employees
•Monetary factors are the
secondary focus
•External factors are not
considered
•Employee job satisfaction and
work efficiency are not directly
related
•Does not consider differences in
people's social and cultural
backgrounds

About Mc Gregor
• Douglas Murray McGregor (September 6, 1906 – October 1, 1964)
was an American management professor at the MIT Sloan School of
Management and president of Antioch College from 1948 to 1954.[1]
• He also taught at the Indian Institute of Management Calcutta.
• His 1960 book The Human Side of Enterprise had a profound influence
on education practices.

• Douglas McGregor’s (1960) Theory X and Theory Y challenged the
long-standing autocratic approach to leadership, offering several
important insights into motivating and leading more effectively
• MIT professor Douglas McGregor (1960) wrote The Human Side of
Enterprise, he split corporate thinking into two camps.
• His Theory X and Theory Y recognized the importance of influence in
managerial leadership

• Theory X
A more traditional, autocratic style of leadership, direction, and
control that assumes humans typically dislike work and must be
“coerced, controlled, directed, threatened with punishment to get
them to put forth adequate effort”
• Theory Y
Recognizes that as humans, under the proper conditions, we accept
and seek out responsibility and are ready and willing to engage our
imagination, ingenuity, and creativity. The modern workplace often
fails to create an environment that fully uses our potential.
•

Mc Gregor Theory X and Theory Y
• Theory X is based on the assumptions that employees don't really
want to work, lack ambition, only work to collect a paycheck, and
need constant supervision.
• Theory Y is based on the assumptions that employees want to work,
want to take responsibility, and do not need much supervision.

Two conflicting approaches
• Theory X assumes that people dislike work and must be coerced,
controlled, and directed toward organizational goals. Furthermore,
most people prefer to be treated this way, so they can avoid
responsibility.
• Theory Y—the integration of goals—emphasizes the average person’s
intrinsic interest in his work, his desire to be self-directing and to seek
responsibility, and his capacity to be creative in solving business
problems.

Diving Deep Into Theory X
• According to McGregor (1960), both Theory X and Theory Y are self-
fulfilling, which means that an organization’s management style
influences the behavior of its employees (Pearson, 2020).
• Theory X — the more traditional view of direction and control —
assumes that, where possible, humans avoid work and responsibility.
As such, they not only need but also want to be directed.

The following are three foundational
assumptions upon which theory X rests
• 1.Humans inherently dislike work and will avoid it whenever and
wherever they can.
• 2.“People must be coerced, controlled, directed, and threatened with
punishment to get them to put forth adequate effort toward the
attainment of organizational objectives” .
• 3.Workers wish to be directed, as they have limited ambition and
choose security over responsibility.

Taking a Closer Look at Theory Y
• In contrast to the autocratic approach of Theory X, Theory Y
encourages management to be more supportive of their employees
• Theory Y assumes that employees want to work and will engage their
imagination, determination, and creativity, as well as be self-directed
in pursuing their personal and organizational goals

As such, Y rests upon the following six
assumptions
• 1.Humans do not inherently dislike work; instead, it is natural, like play and
rest.
• 2.We characteristically engage in self-direction and self-control to reach our
goals, rather than needing external coercion and threat of punishment.
• 3.Ego satisfaction and self-fulfillment are, in themselves, rewarding.
• 4.We seek (rather than shirk) responsibility when the conditions are right.
• 5.Generally, humans display a “relatively high degree of imagination,
ingenuity, and creativity in seeking to solve an organizational problem”
• 6.Our modern working environment leaves a great deal of the average
person’s potential untapped.

Coca Cola Example
• The multinational beverage company Coca-Cola employs more than
700,000 individuals around the world. For many years, Coca-Cola (like
many other organizations of the time) practiced a Theory X approach to
leadership. Management was hierarchical, and decision-making was
centralized. The autocratic approach demanded that all employee work
had to be closely scrutinized, resulting in reduced productivity and falling
profits.
• Coca-Cola needed to change. So, to test leadership approaches, they
continued to use Theory X with its bottling investments division while
introducing the new approach (Theory Y) in its corporate group (Fotsch &
Case, 2017).
• The results were dramatic. They found that adopting Theory Y, engaging
employees more, and giving them ownership increased their performance
and boosted commercial success (Fotsch & Case, 2017).

Applying Theory X and Theory Y in
Management
• Theory X can be valuable for leadership in large organizations, mainly
where tasks are short, repetitive, clearly defined, and do not require
too much decision-making. Employee skills may be limited, but
actions can be clearly documented .
• On the other hand, smaller organizations (or larger ones with less
easily defined roles) can benefit from adopting Theory Y. Rules and
procedures remain more flexible. Staff members are encouraged to
take ownership of their work and rely on their discretion and
expertise .
• In truth, Theory X and Theory Y represent two extremes. Most
organizations will find a middle ground.

Leadership
• Leadership is the ability of a person or group to guide and influence
others to achieve a goal
• Leaders can be in organizations, societies, or teams, and their
leadership may be tied to their role or rank

Types of Leadership styles
• 1.Autocratic Leadership
• Also known as authoritarian leadership, this style involves leaders
who have absolute power and authority to make decisions and
supervise others without much input from others
• 2.Laissez-Faire Leadership
• This style involves a hands-off approach where leaders give others the
freedom to make decisions. This can promote creativity and initiative,
and increase self-motivation
• Transformational Leadership

• 3.Democratic Leadership-Participative Leadership
• The democratic leadership style consists of the leader sharing
decision-making abilities with group members by promoting the
interests of the group members and by practicing social equality.
• 4.Coaching Leadership
• Leader is someone who can quickly recognise their team members’
strengths, weaknesses and motivations to help each individual
improve. This type of leader often assists team members in setting
smart goals and then provides regular feedback with challenging
projects to promote growth.

• 5.Visionary Leadership
• Visionary leaders have a powerful ability to drive progress and usher
in periods of change by inspiring employees and earning trust for new
ideas. A visionary leader is also able to establish a strong
organizational bond
• 6.Bureaucratic Leadership
• Bureaucratic leaders are similar to autocratic leaders in that they
expect their team members to follow the rules and procedures
precisely as written.The bureaucratic leadership style focuses on fixed
duties within a hierarchy where each employee has a set list of
responsibilities and there is little need for collaboration and creativity.

• 7.Pacesetting Leadership
• The pacesetting leadership style is one of the most effective for
driving fast results. These leaders are primarily focused on
performance. They often set high standards and hold their team
members accountable for hitting their goals.
• 8.Servant Leadership:
• Servant leaders live by a people-first mindset and believe that when
team members feel personally and professionally fulfilled, they’re
more effective and more likely to produce great work regularly.
Because of their emphasis on employee satisfaction and
collaboration, they tend to achieve higher levels of respect.

• 9.Transactional Leadership
• A transactional leader is someone who is laser-focused on
performance similar to a pacesetter. Under this leadership style, the
manager establishes predetermined incentives usually in the form of
monetary reward for success and disciplinary action for failure.
• 10.Transformational Leadership
• The transformational leadership style is similar to the coach style in
that it focuses on clear communication, goal setting and employee
motivation. However, instead of placing majority of the energy into
each employee’s individual goals, the transformational leader is
driven by a commitment to the organization's objectives.
• 11.Situational Leadership

Planning-Definition and Types of Plan
• Definition: Planning is a management function that involves setting
objectives and determining a course of action to achieve those
objectives.
• Definition: Planning is the fundamental management function, which
involves deciding beforehand, what is to be done, when is it to be
done, how it is to be done and who is going to do it
• The planner identifies a desirable future and prepares a plan to
achieve that goal.
• Planning can help solve problems, facilitate action, and bridge the gap
between where an organization is and where it wants to be

• Planning is an essential step for managers at all levels. It involves
deciding in advance what to do, how to do it, when to do it, and who
should do it.
• The planning process often includes evaluating alternatives, selecting
the best one, and adopting and implementing it.
• The manager's experience and judgment play an important role in
selecting the best alternative

• Managerial function: Planning is a first and foremost managerial function
provides the base for other functions of the management, i.e. organizing,
staffing, directing and controlling, as they are performed within the
periphery of the plans made.
• Goal oriented: It focuses on defining the goals of the organization,
identifying alternative courses of action and deciding the appropriate
action plan, which is to be undertaken for reaching the goals.
• Pervasive: It is pervasive in the sense that it is present in all the segments
and is required at all the levels of the organization. Although the scope of
planning varies at different levels and departments.
• Continuous Process: Plans are made for a specific term, say for a month,
quarter, year and so on. Once that period is over, new plans are drawn,
considering the organization's present and future requirements and
conditions. Therefore, it is an ongoing process, as the plans are framed,
executed and followed by another plan.

• Intellectual Process: It is a mental exercise at it involves the
application of mind, to think, forecast, imagine intelligently and
innovate etc.
• Futuristic: It encompasses looking into the future, to analyze and
predict it so that the organization can face future challenges
effectively.
• Decision making: Decisions are made regarding the choice of
alternative courses of action that can be undertaken to reach the
goal. The alternative chosen should be best among all, with the least
number of the negative and highest number of positive outcomes

Types of Plans
• There are several types of plans in management
• 1.Tactical,
• 2.Operational,
• 3.Strategic,
• 4.Contingency,
• 5.Policy, and
• 6.Intermediate plans

• 1.Tactical Plan:
• Involves breaking down a long-term strategic plan into smaller, more
distinct short-term plans.
• 2.Operational planning
• Involves frontline managers developing specific action plans for
operational employees to advance the firm towards a large-scale
strategic goal

• 3.Strategic planning
• An essential part of management that involves making a specific plan
with goals and objectives that the company plans to meet in the
future.
• 4.Contingency planning
• Also known as a "Plan B", this is a strategic plan to tackle an
unfavorable event that may happen in the future. It's put in place to
reduce business risk, streamline recovery processes, and ensure a
smooth execution if the event happens

• 5.Policy
• Provides guidance to managers in decision-making through general
statements or understanding. Policies are standing plans that guide
management in managerial operations
• 6.Intermediate planning
• Involves plans that span the next one to five years. These plans help
business owners and managers evaluate specific parts of their business and
make decisions about how to boost production output or operating
profits.
•

Decision Making-Definition and Process
• Definition: Decision making is the process of choosing a course of
action to achieve organizational goals.
• It involves identifying problems, evaluating alternatives, and making
choices.
• Decision making is a critical part of management and can significantly
impact an organization's operations, finances, human resources, and
overall performance

7 Step Process of Decision Making

Introduction to Management-Concepts of Management

More Related Content

Similar to Introduction to Management-Concepts of Management (20)

Recently uploaded (20)

Introduction to Management-Concepts of Management