POM- UNIT-1 Overview of Management.ppt

INTRODUCTION TO
MANAGEMENT AND
ORGANIZATIONS

INTRODUCTION
 It is the process of planning, organising, staffing,directing,co-
ordinating and controlling the activities of business enterprises.
 Managers are generally responsible for a group of
individualperformance.
 Managers are coordinating their work activities to achieve their
goals

Organization
Two or more people who work together in a structured
way to achieve a specific goal or set of goals.
Goals
The purpose toward which an effort is directed.
Organizations often have more than one goals, goals are
fundamental elements of organization.
The Role of Management
To guide the organizations towards goal accomplishment

Management
It defined as different ways:
 KOONTZ & WEIHRICH define theManagement is the
process of designing and maintaining an environment in
which individuals working together in groups, efficiently
accomplish selected aims.
 F.W TAYLOR define the management is the art of
knowing what is to be done and seeing that it is done in
the best possible manner

Organizational Performance
Efficiency Effectiveness
A measure of how well or how
productively resources are used to
achieve a goal
A measure of the appropriateness of
the goals an organization is pursuing
and the degree to which they are
achieved.
It is defined as the output to input
ratio and focuses on getting the
maximum output with minimum
resources.
It constantly measures if the actual
output meets the desired output.
efficiency is all about focusing on the
process
effectiveness focuses on achieving the
‘end’ goal.
efficiency is about doing things right, it
demands documentation and
repetition of the same steps. Doing the
same thing again and again in the same
manner will certainly discourage
innovation.
effectiveness encourages innovation as
it demands people to think, the
different ways they can meet the
desired goal.
Organizations have to be both effective and efficient in order to be
successful.

Nature of management
1. Management is multidisciplinary in nature
 It draws ideas and concepts from various disciplines
(economics, statistics, mathematics etc)
2.Management is a continuous process.
3.Management is a universal activity
 It applicable to political, social, religious & educational
institutions
4.Management is a science as well as art
 It is a art because of defined principles of management
5.Management is dynamic and not stable
 It has to adopt itself according to social changes

Nature of management
6.Management is a profession
 It involve specialized training and is governed by ethical
code arising out of its social obligation
7.Management is a group activity
 It concerned with group efforts and not individual
efforts
8.Management aims at obtaining wealthy results
 Rational utilization of available resources to maximize
the profit is the economic function of a manager

9.Management implies skill and experience in getting
things done through people
 Job done through people. Profitable return, Cooperation
10.Management is a system of authority
 Management formalises a standard set of rules and
procedures to be followed by the subordinates and
ensures their compliance with the rules and regulations
11.Management is intangible
 It cannot seen by eyes. It is evidenced only by the quality
of the organisation and the results
12.Management implies good leadership
 A manager must have the ability to lead and get the
desired course of action from the subordinates

Scope of management
1) Functional areas of management
I. Financial management – forecasting, cost control,
budgetary control, financial planning etc.,
II. Human resource management – recruitment,
training, transfers, promotions, retirement,
termination, remuneration, labour welfare etc.,
III. Marketing management – marketing of goods, sales
promotion, advertisement and publicity, channel of
distribution etc.,
IV. Production management – production planning,
quality control and inspection, production techniques
etc.,

Cont.,
V. Material management – purchase of material, issue of
material, storage of materials, maintenance of records
etc.,
VI. Purchasing management – inviting quotations,
placing order, entering in to contract etc.,
VII. Maintenance management – proper care and
maintenance of buildings, plants, machinery etc.,
VIII. Office management – office layout, office staffing &
equipment of the office

Cont.,
2) Subject matter of management
 Planning, organizing, staffing, directing and
controlling
3) Management is an inter disciplinary approach
 Study of commerce, economics, sociology, psychology
etc.,
4) Principles of management – universal applications
5) Management is an agent of change
 The techniques of management can be improved by
proper R &D
6) The essentials of management
 Scientific method, human relations and quantitative
techniques.

Five Functions of Management
STAFFING

Planning involves tasks
that must be performed to
attain organizational goals,
outlining how the tasks
must be performed, and
indicating when they
should be performed.

1.Planning
 Determining organizational goals and means to
reach them
 Managers plan for three reasons
1. Establish an overall direction for the organization’s
future
2. Identify and commit resources to achieving goals
3. Decide which tasks must be done to reach those goals

Organizing means
assigning the planned tasks
to various individuals or
groups within the
organization and creating a
mechanism to put plans
into action.

2. Organising
 Process of deciding where decisions will be made,
who will perform what jobs and tasks, and who will
report to whom in the company
 Includes creating departments and job descriptions

3. STAFFING
 Process involve the selection of candidates for
 Positions , fixing salary
 Training
 Developing them for effective organisation

Leading (Influencing) means
guiding the activities of the
organization members in
appropriate directions.
Objective is to improve
productivity.

4. Leading or Directing
 Getting others to perform the
necessary tasks by motivating
them to achieve the
organization’s goals
 Crucial element in all
functions

Steps involved in controlling
1. Gather information that measures recent
performance
2. Compare present performance to pre-established
standards
3. Determine modifications to meet pre-established
standards
Controlling is the Process by which a person, group, or
organization consciously monitors performance and takes
corrective action

Difference between administration and
management
Administration Management
 It is higher level function
 It refers to the owners of the
organisation
 It is concerned with decision
making
 It act through the
management
 Administration lays down
broad policies and principles
for guidance
 It is lower level function
 It refers to the employees
 It is concerned with
execution of decision
 It act through the
organisation
 Management executes these
policies into practice

Management is Science or Art
•Management comprises both the features of science and art.
• From the above pointers, we can clearly say that management is a
science and an art both.
•It is considered a science as it has an organized body of knowledge
comprising various universal truths. Management requires a specific
skill set that needs the personal possession of managers, which is
why it is also an art.
•Science gives knowledge, while art is the application of that
knowledge and skills.

Levels of Management
Top Level
Management
Middle Level
Management
Low level or Supervisory
Management
Non Management Employees

Management Levels and Functional Areas

Top level management
 President, Managing Director, Chief operating officer,
chief executive officer or chairman of the board
 The main function of top management are
 To formulate goals and policy
 To formulate budgets
 To appoint top executive
 To provide overall direction and leadership of the
company
 To decide the distribution of profits etc.,

Middle level management
 Department head, project leader, plant manager or
division manager
 The main function of middle level manager are:
 To monitor and control the operating performance of
the sub units
 To train, motivate and develop supervisory level
 Implement changes or strategies generated by top
manager
 To coordinate among themselves so as to integrate the
various activities of a department

Lower level or supervisory management
 They are directly responsible for the work of operating
employees.
 The main function of lower level of management :
 To train and develop the efficiency of the workers
 To assign jobs to workers
 To give order and instructions
 To maintain discipline and good human relations among
workers
 To report feedback information about workers

What Is a Manager’s Responsibility?
 Manager
 The individual responsible for achieving
organizational objectives through efficient and
effective utilization of resources.
 The Manager’s Resources
 Human, financial, physical, and informational
 Performance
 Means of evaluating how effectively and efficiently
managers use resources to achieve objectives.

Role of manager
 Interpersonal roles
 Informational roles
 Decision roles

1-32
Interpersonal Roles
Roles that managers assume to provide direction and
supervision to both employees and the organization as a
whole.
 Figurehead— performing ceremonial and symbolic
duties, such as greeting visitors and signing legal
documents.
 Leader— Motivate, training, counsel and communicating
with subordinate.
 Liaison—linking and coordinating the activities of people
and groups both inside and outside the organization.

1-33
Informational Roles
Roles involve receiving, collecting and disseminating
information.
 Monitor—analyzing information from both the internal
and external environment.
 Disseminator—transmitting information to influence the
attitudes and behavior of employees.
 Spokesperson—using information to positively influence
the way people in and out of the organization respond to it.

1-34
Decisional Roles
Roles associated with making choices.
 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 between other managers,
unions, customers, or shareholders.

Types of Managers
 General Managers
 Supervise the activities of several departments.
 Functional Managers
 Supervise the activities of related tasks.
 Common functional areas:
 Marketing/Sales/Product Development
 Operations/Production/Services Delivery
 Finance/Accounting
 Human Resources/personnel management
 Infrastructure (IT, Real Estate, Legal)
 Project Managers
 Coordinate employees across several functional departments to
accomplish a specific task.

1-36
Managerial Skills
 Conceptual skills
 The ability to analyze and diagnose a situation and
distinguish between cause and effect. This skill also
called as design and problem solving skill.
 Human skills
 It is mainly concerned with understanding of people.
 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.

Importance of Management
1. Techinical skills :
Techinical Skills and skills that reflect both an
understanding in engineering etc, So thar managers
are dealing with employes in organisation
2. Human skills :
It invloves understanding the people
3. Conceptrual skills :
It is dealing with Design and problem solving skill

Evolution of Management Thought
Pre-scientific or
pre classical
management
period
Classical theory
1. Scientific
management
2. Administrative
management
3. Bureaucratic
Model
Neo-classical
Theory or
Behavior Theory
Modern approach
1. System
approach
2. Contingency
approach

Pre-scientific or pre classical
management period
1.Robert owen (1771-1858)
2.Charles Babbage (1792-1871)
3. Henry Robinson Towne (1844-1924)

1.Robert owen (1771-1858)
 He is owner of a group of textile mills in Scotland.
 He is the promoter of co-operative and trade union
movement in England.
 He believed that the worker performance in industry
was influenced by the working condition and
treatment of workers.
 He introduced new ideas of human relation, such as
shorter working hours, housing facilities, training of
workers in hygiene, education of their children,
provision of canteen etc.,
 He came to be regarded as the father of personal
management.

Charles Babbage (1792-1871)
 He is father of modern computing.
 He was a professor of Mathematics at Cambridge
university.
 He found that manufacturers made a little use of
science and mathematics.
 He advocated the use of accurate observation,
measurement and precise knowledge for taking
business decisions.
 His idea anticipated the concept of profit sharing to
improve the productivity

3. Henry Robinson Towne (1844-1924)
 He was the president of famous lock manufacturing
company “Yale and Town”
 He advised the combination of engineer and
economist as industrial managers.
 in addition to some skill as accountant, is essential for
successful management of industrial workers.

Classical Management Perspective
 This theory developed during the industrial revolution
when new problem related to the factory system.
 Manager s were unsure of how to train employees or
deal with increased labour dissatisfaction
Scientific management theory
Administrative management theory
Bureaucratic management theory

Scientific Management
Concerned with improving the performance of individual
workers (i.e., efficiency).
Grew out of the industrial revolution’s labor shortage at the
beginning of the twentieth century.
The major contributors are
Frederick W.Taylor
Henry Gnatt
Frank Gilbreths and Lillian Gillbreths

Frederick W.Taylor
 He was the father of scientific management, served
with Bethlehem steel plant.
 He tried to analyses the causes of low efficiency
 He pioneered the time and motion study where by
Work task is broken into its various motion, is
improved by eliminating unnecessary motions

Frederick W.Taylor approach was based
on four basic principles:
 Study each part of the task scientifically and develop
the best method to perform it.
 Carefully select workers and train them
 Co-operate fully with the workers to ensure they use
the proper method
 Divide work and responsibility

Elements of scientific management
 Planning the task
 Supervisor should do the planning
 Workers only concentrate on doing the work
 Scientific task and rate setting (work study)
 Method study, motion study, time study, fatigue study
and rate setting
 Scientific selection and training
 Workers should be selected scientifically by a central personnel
department
 A worker should be physically and technically most suitable for
the selected post
 After selection worker should be given proper training which
makes them more efficient and effective

 Standardization
 Standards must be maintained in respect of the
equipments and tools, materials, period of work, amount
of work, working condition, cost of production etc.,
 Specialization
 Route clerk, Instruction card clerk, time and cost clerk,
shop disciplinarian, Gang boss, speed boss, repair boss
and Inspector
 Financial incentives
 It can motivate the workers to put up their maximum
efforts
 Wages should be based on individual performance

 Economy
 Scientific management enhances profit and economy
 It can be achieved by making the resources more
productive as well as eliminating the wastages
 Mental revolution
 Scientific management is based on cooperation
between management and workers
 Cooperation enhances the effective managerial
activities

Henry Gantt (1861-1919)
 He developed Gantt chart, a bar graph that measures
planned and completed work along each stage of
production
 His interest include a unique pay incentive system and
the social responsibility.
 unique pay incentive system was aimed at providing
extra wages for extra work besides guarantee of
minimum wages

Frank Gilbreths and Lillian Gillbreths
 In frank’s early career as an apprentice bricklayer
 He was interested in standardization and method
study
 He noticed that some workers were slow and
inefficient, while others were more productive.
 He isolated the basic movements necessary to do the
job and eliminated unnecessary motions.
 Workers using these movements raised their output
from 1000 to 2700 per day.

Administrative Management
 Scientific management focused on the productivity of
individuals.
 Administrative Management theory concentrate on
developing organizational structure that leads to high
efficiency and effectiveness.
 Henry fayol is French mining engineer, identified 14
principles based on his experience
 He is also called as father of modern theory of
general and industrial management.

Administrative management theory
Henri Fayol (1841-1925)
Fourteen principles:
 Division of work
 Authority and responsibility
 Discipline
 Unity of command
 Unity of direction
 Subordination of the
individual interest to the
general interest
 Remuneration
 Centralization
 Scalar chain
 Order
 Equity
 Stability
 Initiative
 Espirit de corps
(team spirit)

Bureaucratic management theory
 Max Weber (1864–1920)
 His theory of bureaucracy is based on a rational set of
guidelines for structuring organizations.
 Three types of authority
1. Traditional –Subordinate obedience based upon
custom or tradition (e.g., Kings, queens, chiefs)
2. Charismatic – subordinate obedient based on special
personal qualities (e.g. Gandhi, N.S.C.Bose, Martin
Luther king)
3. Rational –legal- subordinate obedient based upon the
position held by superior (Executive, supervisor etc.,)

Bureaucratic management theory
based on following characteristics
 A well defined hierarchy
 Division of labour and specialization
 System of written rules and regulation
 Impersonal relationships between mangers and
employees
 Selection and evaluation system
 Records

Human relation approcah or
Behavioural management
Theory
 This theory pointed out the role of psychology and
sociology in understanding of individual and group
behavior in an organization
 The contributors are
 Mary Parker Follett
 Elton mayo
 Hawthorne studies
 Abraham Maslow

 Elements of behavioral
 The individual – it allows labour to participate in
decision making and problem solving primarily increase
productivity
 Work group – it recognizes the vital effect of group
psychology and behavior on motivation on productivity
 Participate management - focuses its attention on the
worker and its employee oriented

Mary Parker Follett (1868-1933)
 She felt that mangers needed to coordinate and
harmonize group effort rather than force and compel
them.
 She identified the principle of ‘power with’ rather than
‘power over’
 Finding a solution to a conflict that would satisfy both
parties.

Hawthorne studies
 One series of studies was conducted from 1924 to 1932
at the western Electric company in chicago.
1. Illumination experiments
2. Relay assembly test room experiments
3. Bank wiring test room experiments
4. Mass interview programme

Physical Needs
Need for Security
Need for Social Relations
Need for Self Esteem
Self-Actualization
Maslow’s Hierarchy of
Needs

Comparing Theories
Classical
Behavioral
Management
Science
Systems
Theory
Attempts to develop the best way to manage in all organizations by
focusing on the jobs and structure of the firm.
Attempts to develop a single best way to manage in all
organizations by focusing on people and making them productive.
Recommends using math (computers) to aid in problem solving
and decision making.
Manages by focusing on the organization as a whole and the
interrelationship of its departments, rather than on individual
parts.
Sociotechnical
Theory
Recommends focusing on the integration of people and
technology.
Contingency
Theory
Recommends using the theory or the combination of theories that
best meets the given situation.

Organization and environmental factors
Internal environmental factors
 Suppliers
 Customers
 competitors

Organization and environmental factors
External environmental factors
 Technology
 Economic conditions
 Political factors
 Socio cultural factors

Trends and challenges of
management in global scenario
1. Workforce diversity
2. Changing employee expectation
3. International environmental
4. Building organizational capabilities
5. Job design and organizational structure
6. Changing psycho-social system
7. Technological advance
8. Management of human relations
9. Change in legal environment
10. Expanding globalization

POM- UNIT-1 Overview of Management.ppt

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