Unit 1 - MPOB fsgytsaddkindscssaszxaddsd

● Introduction: Management Concept: Nature & Scope -Functions of Management
Levels of Management – Evolution of Management thought –––- Planning – Steps in
Planning Process – Management By Objective (MBO) & MBW (Management by
wandering) – Types of Plans - Characteristics of a sound Plan- Techniques and
Processes of Decision Making.

Management Definitions
● According to FW Taylor:
“Management is the art of knowing exactly what you want to do
and then seeing that they do it in the best and the cheapest way.”
● According to Henry Fayol:
“To manage is to forecast & plan, to organise, to command, to
coordinate and control.”

Management Definitions
● 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 can
cooperate towards attainment of group goals.”

Nature of Management
1. Management is Goal-Oriented
2. Management integrates Human, Physical and Financial Resources
3. Management is Continuous
4. Management is all Pervasive
5. Management is a Group Activity
6. Management is universal

Nature of Management
7. Management is an Integrative Force
8. Management is a Social Process
9. Management is multidisciplinary
10.Management is Intangible
11.Management is an Art as well as Science

14 Principles of Management by Henry Fayol
1. Division of Work
2. Authority and Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of Individual Interests to the General Interest
7. Remuneration

14 Principles of Management by Henry Fayol
8. Centralization
9. Scalar Chain
10. Order
11. Equity
12. Stability of Tenure of Personnel
13. Initiative
14. Esprit de Corps

Scope of Management
Subject Matter Management/ Activity
Oriented
Functional Areas of Management
● Planning
● Marketing Management
● Organizing
● Production Management
● Directing
● Office Management
● Coordinating
● Personnel Management
● Controlling
● Financial Management

Planning
According to Koontz & O'Donnell,
“Planning is deciding in advance what to do, how to do and who is to do it.
Planning bridges the gap between where we are to, where we want to go. It
makes possible things to occur which would not otherwise occur.”

Characteristics of a Sound Planning
1. Planning is goal-oriented.
2. Planning is looking ahead.
3. Planning is an intellectual process.
4. Planning involves choice & decision making.
5. Planning is the primary function of management / Primacy of Planning.

6. Planning is a Continuous Process.
7. Planning is all Pervasive.
8. Planning is designed for efficiency.
9. Planning is Flexible.
Characteristics of a Sound Planning

Steps in Planning Process
1. Establishment of objectives
2. Establishment of Planning Premises
3. Choice of alternative course of action
4. Formulation of derivative plans
5. Securing Cooperation
6. Follow up/Appraisal of plans

Management by Objective (MBO)
Management by Objectives (MBO) is a strategic approach to enhance the
performance of an organization. It is a process where the goals of the
organization are defined and conveyed by the management to the members of
the organization with the intention to achieve each objective.

MBWA
Management by wandering around(MBWA) is a management approach that
emphasizes the practice of managers regularly leaving their offices to
interact with employees and gain firsthand knowledge of what is happening
within their organization. This approach was popularized by Tom Peters and
Robert H. Waterman in their book "In Search of Excellence.”

Characteristics of MBWA
1. Direct Interaction
2. Visibility and Accessibility
3. Real-Time Problem Solving
4. Employee Engagement
5. Informal Feedback
6. Organizational Learning

Decision Making
Decision-making can be defined as the process of selecting a right and
effective course of action from two or more alternatives for the purpose of
achieving a desired result. Decision-making is the essence of management.
The entire managerial process is based on decisions. Decisions are needed
both for tackling the problems as well as for taking maximum advantages of
the opportunities available. Correct decisions reduce complexities and
uncertainties.

Definition of Decision Making
Joseph L. Massie –
A decision is a course of action consciously chosen from the relevant
alternative for the purpose of achieving desired goals.

Characteristics of Decision Making
1. Decision making based on rational thinking.
2. It is a process of selecting the best alternative from the
available alternatives.
3. Decision making is aimed to achieve organization goals.
4. A decision may be positive or negative. It may direct others to
do or not to do.
5. Decision making involves certain commitments like policies,

Steps in Decision Making Process
1. Identification of the problem.
2. Information gathering
3. Principles for judging the alternatives
4. Brainstorm and analyse the different choices
5. Evaluation of alternatives
6. Select the best alternative
7. Execute the decision
8. Evaluate the results

Techniques of Decision Making
1. Brainstorming
2. Nominal Group Technique
3. SWOT analysis
4. Delphi Technique

Scientific Management
★ Frederick Winslow Taylor well-known as the founder of scientific management was the first to
recognize and emphasis the need for adopting a scientific approach to the task of managing
an enterprise.
★ He tried to diagnose the causes of low efficiency in industry and came to the conclusion that
much of waste and inefficiency is due to the lack of order and system in the methods of
management.
★ He found that the management was usually ignorant of the amount of work that could be
done by a worker in a day as also the best method of doing the job. As a result, it remained
largely at the mercy of the workers who deliberately shrieked work.

Principles of Scientific Management
● Development of Science for each element of work
● Scientific selection, placement and training of workers
● Division of Labour
● Standardization of methods, procedures, tools and equipment
● Use of time and motion study
● Differential wage system
● Cooperation between labour and management
● Principle of Management by Exception

Administrative Management
● Administrative Management Theory focuses on how management and workers are
organized within a business to allow for the completion of task. It posits that the
effective organization of management would ultimately have an effect on the
productivity of operational-level workers.
● Henry Fayol, a French mining engineer and management theorist, is best known for
his administrative management theory. Fayol's work is considered a significant part
of the evolution of management thought, particularly during the classical
management era. His ideas were influential in shaping the way organizations are
managed and structured.

Administrative Management
Activities of an organisation
1. Financial
2. Accounting
3. Technical
4. Commercial
5. Managerial
6. Security

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

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

Bureaucratic Model
● Bureaucratic management, as formulated by the German sociologist
Max Weber in the early 20th century, is a theory that outlines an
ideal type of organization characterized by a formalized structure,
clear hierarchy, and well-defined rules and procedures.
● Bureaucracy in business is a hierarchical organization or a company
that operates by a set of predetermined rules.

● Formal Hierarchy
● Division of Labor
● Formal Rules and Procedures
● Impersonality
● Record Keeping
● Merit-Based Employment
● Specialization and Expertise
● Formal Communication Channels
Characteristics of Bureaucratic Model

Neo-Classical Approach
Neoclassical theory (also referred to as human relations of thoughts) was
introduced based on classical theory.The basic assumption of this theory is
that the physiological and social aspects of a worker as an individual and his
workgroup ought to be focused on. In classical theory, the organization
emphasized order, structure, economic factors, formal organization, and
objective rationality. Whereas neo-classical theory emphasized social factors
and emotions at work.

Behavioural Science Approach
1. Maslow’s Hierarchy Theory of Needs
2. Douglas McGregor's Theory X and Theory Y
3. Herzberg's two factor theory

In 1960, Douglas McGregor formulated Theory X and Theory Y
suggesting two aspects of human behavior at work, or in other
words, two different views of individuals (employees): one of which
is negative, called as Theory X and the other is positive, so called
as Theory Y. According to McGregor, the perception of managers
on the nature of individuals is based on various assumptions.
2. Douglas McGregor's theory

1)An average employee intrinsically does not like work and tries
to escape it whenever possible.
2)Since the employee does not want to work, he must be
persuaded, compelled, or warned with punishment so as to
achieve organizational goals.
3)A close supervision is required on part of managers.
4)The managers adopt a more dictatorial style.
5)Many employees rank job security on top
Assumptions of Theory X

1) Some employees consider work as natural as play or rest.
2) These employees are capable of directing and controlling performance
on their own
3) They are much committed to the objectives of the organization
4) Higher rewards make these employees more committed to
organization.
5) Given an opportunity they not only accept responsibility but also look
for opportunities to outperform others.
6) Most of them highly imaginative, creative and display ingenuity in
handling organizational issues.
Assumptions of Theory Y

Maslow’s theory has been modified by Herzberg and he called in two-factors theory
of motivation.
First Factor theory :
● First group of needs are such things as company policy and administration,
supervision, working conditions, interpersonal relations, salary, status, job
security and personal life. Herzberg called these factors as dissatisfiers and not
motivators,
● By this he means their presence or existence does not motivate in the sense of
yielding satisfaction, but their absence would result in dissatisfaction.
● These are also referred to as hygiene factors.
3. Herzberg's Two-factors Theory

Second Factor theory :
● Second group are the satisfiers. They are motivators, which are
related to Job content.
● He included the factors of achievement, recognition, challenge
work, advancement and growth in the job.
● He says that their presence will yield feelings of satisfactory or no
satisfaction, but not dissatisfaction.
3. Herzberg's Two-factors Theory

Contingency Approach
The contingency approach to management, also known as the
situational approach, holds that there is no single, textbook rule for
the best way to manage an organization. In each company’s case, the
“best” approach will be contingent upon the company’s internal and
external needs.

Features of Contingency Approach
1. Situational Focus
2. Fit the Situation
3. Environmental Adaptation
4. No Universal Best Way

Unit 1 - MPOB fsgytsaddkindscssaszxaddsd

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Unit 1 - MPOB fsgytsaddkindscssaszxaddsd