1-management, science, theory, and practice

8/13/2019 1-Management, Science, Theory, And Practice

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Dr Zain Yusafzai Management Science Practice & Theory Chapter 1 (page3-35)

Goals of Managers and OrganizationsAim of managers is to create a surplus by establishing an environment inwhich people can accomplish group goals with least amount of time, money,materials and personal dissatisfaction. +o be successful in the -st centurycompanies must take advantage of + especially the internet and

globalization

roducti!ity" #ffecti!eness and #fficiency$ Another aim is to raiseproductivity

roducti!ity% %utput//input ratio within a time period with dueconsideration for #uality. $roductivity can be improved by increasingoutputs with same inputs, decreasing inputs 0 maintaining same outputsand increasing outputs 0 decreasing inputs to change ratioroducti!ity implies *ffectiveness 0 efficiency in individual 0 %rgperformance*ffectiveness1 Achievement of ob2ectives and

*fficiency1 Achievement of ob2ectives with least amount of resources 0 time

Managing Science or &rt$Managing as practice is an art. %rganized knowledge underlying the practiceis science. &cience and art are complementaryManagement is &rt$t is known how. t is doing things in the light of realities of a situation.*lements of art include $ersonal &kills, $ractical 3now 4 (ow, 5esult%rientation, "reativity. Analysis of management practices against elementsof Arts suggests that as a practice management is art#lements of Science

&cience is a systematized body of knowledge pertaining to a particular field.t contains principles and theories developed through continuous observationexperimentation and research. $rinciples have universal application and theyare verifiable and lead to predictable results. +he organized body ofknowledge can be taught and learnt

Management: 6hen reviewed against elements of science1

Management is doing things in the light of realities of a situation.

Managers can work better by using organized knowledge

Management is also a systematic body of knowledge

t contains principles and theories developed over long periods of timeafter continuous observations, experimentations and research.

+hese principles also have universal application and can be verified.

+herefore management as knowledge is science and its application is Art.

Evolution of Management Thought

Scientific Management #ra '(p to )**+,

Principles of ManagementHeinz eihrich! Harold "oontz! Mar# $% Cannice

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+he art of management has ancient routes. +he moment people began tolive and work together organization and management came into existenceModern management thought has developed through several stages

-lassic &pproach ')*.+/)0.+,Approach was evolved in early part of -7th century. Many managers, to

some extent, accept 0 practice even today. Main points of approach are1 $rinciples of management can be developed and implemented to make

the organization effective

Management principles have universal application with slight

modification to suit various situations.

Scientific Management &pproach$ ')0.+/)01+,8redrick +aylor is the pioneer of &cientific Management Approach. (isprinciples of scientific management are1

evelop a true science for each element of a workers 2ob to replacethe old rule of thumb method

ivision of labor should be a part of each 2ob

&cientific selection, training and development of workers should be

done to improve the efficiency

+here should be closed cooperation between management and

workers

6orkers should work for maximum output in place of restricted output

2uman Relations approach"lassical approach 0 scientific approach failed to recognize importance ofhuman element in Mgmt. $eople were treated in rational and mechanisticterms

Ignoring their social & psychological needs (uman relation approach emphasizes that1

A worker is not purely rational economic being. (e has emotions and

feelings

Management is responsible to recognize and satisfy the social andpsychological needs of workers in order to win their willing cooperation

6hen workers are satisfied 0 motivated productivity 0 efficiency

would increase

3eha!ioral Science &pproach

An extension of human relation approach) t focuses on study of attitude,behavior 0 performance of individual and groups in organization. Based onbelief that work is primarily source of satisfaction 0 motivation) t is theresponsibility of management to use potentials of people by crafting ahealthy work environment, $hysical, social 0 psychological

#!olution Of Management ThoughtsFredrick Taylor ')*14/)0)5


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(is primary concern was to increase productivity through efficiency and useof scientific methods. (is principles emphasized using science, creatinggroup harmony 0 cooperation and achieving maximum output 0development of workerrinciples

5eplacing rule of thumb with science

%btaining harmony in group action, rather then discard.

Achieving cooperation of human being, rather than chaos

6orking for maximum output rather than restricted output

eveloping all workers to the possible extent the their own 0 companys

highest prosperity2enry Gantt ')*4)/)0)0,(e emphasized the need for understanding between the management andlabor. (e stressed upon importance of teaching development andunderstanding of system on the part of both labor and managerFrank ')*4*/)056, 7 8illian 3ilbreth ')*9*/)095,$8rank is known primarily for his time 0 motion studies whereas 'illians

focus was on human aspects of work and understanding of workerspersonalities and needs.2enry Fayol ')*6)/)051$According to him there are six industrial activities) +echnical 9$roduction:,"ommercial 9selling:, 8inancial, &ecurity, Accounting 9&tatistical data:,Managerial 8unction. (e is considered as father of modern managementtheoryrinciples$ivisions of work, Authority and responsibility, iscipline, ;nity ofcommands, ;nity of irections, &ubordinations of individual over generalinterest, 5emuneration, "entralization, &calar chain, %rder , *#uity, &tabilityof tenure, nitiative, *spirit de corps

Mintzberg:s Managerial Roles

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involves interpretation and integration of diverse value, positions oforganization, influencersSpoesperson:+ransmits information to outsiders on organizations plans,policies, actions, results, etc. &erves as expert on organizations industry

.; =ecisionalEntrepreneur: &earches organization and its environment for opportunitiesand initiates improvement pro2ects to bring about change. &upervisesdesign of pro2ectsDistur!ance Handler:5esponsible for corrective action when organizationfaces important, unexpected disturbance;"esource #llocator: 5esponsible for the allocation of organizationalresources of all kinds. n effect, making or approval of all significantorganizational decisions$egotiator: 5esponsible for representing the organization at ma2ornegotiations.

Systems &pproach to Management

%rganized enterprise does not exist in the vacuum,

t is dependent on the external environment.

t receives inputs, transforms them and exports the out puts to theenvironment

-omponents of SystemInputs:(uman, "apital, +echnology%utput:$roduct, &ervicesEnvironment:"onsumers, &uppliers, &tock (olders,


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Inputs and 'laimants:nputs from external environment may includepeople, capital 0 managerial skills. n addition various groups of peoplemake demands on the enterprise

The Managerial Transformation (rocess:

t is the task of managers to transform inputs in an effective and efficientmanner into outputs. +his is done through managerial functions of planning,organizing, and staffing etc.E)ternal *aria!les$ *ffective managers regularly scan externalenvironment they may not have power to change external environment.+hey have no alternative but to respond to it%utputs: Managers secure and utilize inputs to the enterprise and+ransform them through managerial function with due consideration forexternal variables into outputs

"eenergiing the system:

n the systems model of operational management some of the outputsbecome inputs again. +hus satisfaction or new knowledge or skills ofemployees become important human inputs*ven profits are reinvested in the form of "ash, *#uipment, and Building 0Machinery

The 'ommunication System:"ommunication is essential to all phases of managerial process for tworeasons. 8irst, it integrates managerial functions. &econd, it linksenterprise with external environment where many of claimants are.

Functions of Management

(lanning:


#ommunication )ntegration

PlanningStaffing

#ontrolling

*+ternal *nironment

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+he process of setting organizational goals and deciding in advance theaction taken to achieve these goals

nvolves &electing missions, %b2ectives 0 Actions to achieve them

All conditions like available resource, environment, alternatives, +ime arecarefully analyzed before making decision about future course of action

from amongst alternatives

%rganiing:

+he process of assembling and coordinating human, financial, and

physical and other resources needed to achieve the organizational goals...

*stablishing an intentional structure of roles for people to fill in an

organization

$eople working in an %rg must have a role to play. 5ole may be big or

small but due importance and recognition must be given to it.

8or better management of an organization, it is essential to place the

right man for the right 2ob;

Staffing:

+he process of filling all positions 0 keeping them filled.

t involves 5ecruiting, &electing, $lacing, $romoting, "ompensating 0

+raining employees

Leading:

$rocess of stimulating people to high performance

t involves directing, Motivating 0 "ommunicating to employees to

influence them to achieve organizational goals

'ontrolling:*valuating and correcting individual performance to ensure that eventsconform to plans. t is important to monitor progress of events. f ob2ectivesare not being achieved and $erformance is not up to the mark, remedialmeasures must be taken. eviation from ob2ectives, short comings 0 otherobservations must be given due consideration. All causes be evaluated 0resolved as re#uired

'oordination"omplete harmony must be achieved among individual efforts towards

accomplishment of group goals


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1-management, science, theory, and practice

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