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Unit -1

Concept of Management

Definition of Management “Management is the art of getting things

done through and with people in formally organized groups”.

“Management is the process by which managers create, direct, maintain and operate purposive organizations through systematic, coordinated, cooperative human effort”.

Meaning of Management Management of IdeasManagement of Things Management of People

Concepts of Management

Management as an Economic Resource Management as a GroupManagement as a System of Authority Management as a Separate DisciplineManagement as a Process

Management is a social process Managements is an integrating process Managements is a continuous process

Management as an Activity Informational activities Decisional activities Interpersonal activities

Importance of Management Effective Utilization of ResourcesDevelopment of Resources To Incorporate InnovationsIntegrating Various Interest Groups Stability in the SocietyWorking for societyWorking for peopleFor overall growth & development

Characteristics of Management Management is a Universal ProcessManagement is Purposeful Management is CreativeManagement is an Integrative Force Management is a Group PhenomenonManagement is a Social ProcessManagement is MultidisciplinaryManagement is Continuous Process Management is Intangible Management is Both a Science and an Art

Management as Science

Science may be viewed in terms of its structure, its goals, and its methods. In terms of its structure, it is a number of scientific disciplines: physics, biology, psychology, economics, management and many others.

Management as ArtThe process of management does involve the

use of know-how and skills like any other art such as music, painting, sculpture, etc.

The process of management is directed to achieve certain concrete results as other fields of art do.

Management is creative like any other art.

Levels of Management

Board Chief

Executive

Departmental Divisional

Heads

Plant Superintendent Branch Managers

Foreman Supervisors

TopManageme

nt

Upper Middle

Management

Middle Manageme

nt

Operating Manageme

nt

Skills of management

Technical SkillHuman SkillConceptual Skill

Importance of management Growing size and complexity of businessIncreasing specialization of workCut throat competition in the marketGrowing unionization of labourSophisticated and capital intensive technology.Increasing complexity of business decisions Growing regulation of business by the Government Need for research and development Turbulent environment of business Need for reconciling the interests of various groups,

e.g, owners, workers, customers and the public Need for optimum utilization of scarce resources.

Managing in present completive environment Knowledge Skills to performance Environment awareness Competitiveness Vision

Taylor Scientific management

Separation of Planning and Doing Functional ForemanshipJob AnalysisStandardizationScientific Selection and Training of WorkersFinancial IncentivesEconomyMental Revolution

Principles of Scientific Management Replacing Rule of Thumb with ScienceHarmony in Group ActionCooperationMaximum OutputDevelopment of Workers

Fayol General Principles of management Division of WorkAuthority and ResponsibilityDisciplineUnity of Command Unity of Direction Subordination of Individual to General Interest Remuneration of Personnel Centralization Scalar Chain OrderEquityStability of Tenure of Personnel InitiativeEsprit de Corps

Bureaucratic management Traditional Authority Charismatic AuthorityRational-legal Authority

Features of bureaucracyA set of written rules and work proceduresSpecialization Hierarchy of AuthorityImpersonal RelationsTrained Personnel Organizational freedom

Behavioral approachThe 1920s was turning decade in the

development of management thought because the individualistic concern of the classical approach began to give way to ‘group philosophy’ and social attitudes.

Hawthorne experimentsThe test room study Relay Assembly Room StudyMass Interviewing ProgrammeBank wiring observation Room study

Implications of Hawthorne experiment Social Factors in OutputGroup Influence Conflict LeadershipSupervision Communication

Management science approachManagement is regarded as the problem-

solving mechanism with the help of mathematical tools and techniques.

Management problems cab be described in terms of mathematical symbols and data.

This approach covers decision-making, system analysis, and some aspects of human behaviour.

Operations research, mathematical tools, simulation, models, etc., are the basic methodologies to solve managerial problems.

Human behavior approachPeople do not dislike work. If they have been helped to

establish objectives, they will want to achieve them. Most people can exercise a great deal of self-direction,

self-control, and creativity than are required in their current job.

The manager’s basis job is to use the untapped human potential in the service of the organization.

The manager should create a healthy environment wherein all subordinates can contribute to the best of their capacity.

The manager should provide for self-direction by subordinates and they must be encouraged to participate fully in all important matters.

Operating efficiency cab be improved by expanding subordinate influence, self-direction, and self control.

Work satisfaction may improve as a ‘by-product’ of subordinates making full use of their potential.

Systems approachPerhaps systems approach has

attracted the maximum attention of thinkers in management particularly in the present era. Though this approach is of comparatively recent origin, starting late 1960, it has assumed considerable importance in analyzing the phenomena of management.

Contingency approachA review of the earlier schools of

management helps us to place the current approach to management in perspective. The performance results of the management process school’s universalist assumptions were generally disapproving.

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