unit 1- basic concept of management

8/8/2019 Unit 1- Basic Concept of Management

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11UNIT

Principles and Practicesof

Session No :1


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Copyright McGraw-Hill. All rightsreserved.

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To know the basic concept of the management.. To know what is the importance of themanagement. To know which are the basic functions of themanagement

To know the thoughts and ideas of differentmanagement thinkers and their contribution to themodern business world.

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` Management is a critical element in the economic growthof a country

Four Factor of ProductionMenMaterial

MoneyMachine

` Management is dynamic ,life-giving element in everyorganization

It is the element that coordinates the current activities and plans for the future


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Figure 2. 1Source:

M anagement is the process of designing and maintaining the

environment in which individual work together in group, andefficiently and effectively accomplish the selected aim

-Basic definition

A rt of getting things done through people

- M ary Parker Follett.

Management is a process of Planning, Organizing,

actuating (directing) and controlling, performed todetermine and accomplish the objectives by the use of

people and resources -George R Terry.

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Management Thinkers/Philosophers` N ewman and Summer: Planning, organizing, leading and

controlling `

Henry Fayol: Planning, organizing, commanding, coordinating and controlling ` Luther Gilick : POSDCORB` Koontz and O'Donnell: Planning, organizing, staffing, directing

and controlling ` Earnest Dale: Innovation and Representation


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M ANAGE MEN T FU NC TIO NS OR TH E M ANAGE MEN T FU NC TIO NS OR TH E PRO CESS OF M ANAGE MEN TPRO CESS OF M ANAGE MEN T

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` Planning: determine what should be done?` It is the determination of what is to be done ,how and where is to be done and how results are to beevaluated?

` Organizing: organizing the FOP All the resources may be divided into HU M AN

organisation and M ATERIAL organisation.Staffing is the important function which involves

building the human organization Copyright McGraw-Hill. All rights

reserved.2

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` D irecting : actuating the people to accomplish the task.Sub-functions: Communication ,Leadership and M otivation` C ontrolling: to ensure that everything occurs in conformity

with the plans adopted, instructions issued and principlesestablished

` Innovation: Innovation is the key to success in the long-run.` Representation: represents the organisation to the outside

group who are having stakes in the organization


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M ANAGE MEN T FU NC TIO NS OR TH E M ANAGE MEN T FU NC TIO NS OR TH E PRO CESS OF M ANAGE MEN TPRO CESS OF M ANAGE MEN T

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TOP MANAGEMEN T

MIDDLE MANAGEMEN T

L OW ER MANAGEMEN T


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` S kill is the ability to translate the knowledge into action.

1.C

ONCE

PTU AL

SK

ILL

: deals with the idea This skill seems to have more importance as a manager moves up to thehigher position of responsibility.

2. T EC H N ICAL SK ILL : deals with things.

It refers to a persons knowledge and proficiency in any type of processor technique. This skill seems to be more important at the lower level of management.

3.HUM AN

SK

ILL

: deals with the human.It is ability to interact with the people at all levels


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` Management-as a S cience

1.Method of inquiry are systematic and empirical;2.Information can be ordered and analyzed; and3.Results are cumulative and communicable

The word S cience is used to denotes two types of systematicknowledge.

A ) N atural and Ex actB) Behavioral and Ine x act

Management is Behavioral science rather than thenatural science because results are not accurateand dependable as that of natural science.


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1700-1850- Industrial Revolution.

Concept of division of labor by Adam Smith.

Second half of the 19 th Century

Management as a separate field.

Separation of the business managementfrom their ownership

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Fredrick Winslow Tay lor Fredrick Winslow Tay lor-- fath er o f Scien tif icfath er o f Scien tif ic

Ma nag emen t.Ma nag emen t.1.1. Time a nd mo tion s tudyTime a nd mo tion s tudy

2.2. Diff eren tial pa ymen t sys temDiff eren tial pa ymen t sys tem

3.3. Dr a s tic reor ga niz at ion o f Supervision . Dr a s tic reor ga niz at ion o f Supervision . ( f unc tion al f orem a ns hip a nd sep a r at ion o f plannin g ( f unc tion al f orem a ns hip a nd sep a r at ion o f plannin g a nd doin g)a nd doin g)

4.4. Scien tif ic recrui tmen t a nd Tr a iningScien tif ic recrui tmen t a nd Tr a ining

5.5. C ooper at ion be tween m gt. a nd workers ( Men tal Cooper at ion be tween m gt. a nd workers ( Men tal Revo lution ) Revo lution )


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Henry Fayol- Father of Administrative Management14 principals of Administrative Management-

Division of Work

Authority and Responsibility

Discipline

Unity of Command

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` Subordin at ion o f Individu al interes t into gener alinteres t.

` Remuner at ion` Cen tr al izat ion`

Sc ala r Cha in` Order ( ri ght place f or every th ing)` Eq uity


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.` S ta bility o f Tenure o f Personne l

` Initiat ive

` Unity o f Direc tion

` Espiri t de Corps ( Te a m spiri t)


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EL TO N MAY O :HA WT H O RNE EX P ERIMEN T


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EL TO N MAY O 1880-1949


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` Elton M ayo: Hawthorne Experiment (1927-1932)

Cicero, Illinois (Chicogo,USA)Illumination Ex periments: E ffect of illumination on productivity-Relay A ssembly Test Room: to determine the effects of illumination on productivity, C onsider other factors L ike length of the working day, rest pauses, frequency ,duration and physicalconditions. A group of si x women worker. N o change in the

productivity. Importance of formal groups.Interviewing Programme: interviewed 20,000 workers, questions

were asked on supervision, working conditions, living conditions.S tudy reveals the workers social relations had an unmistakableinfluence on their attitude and behaviors.

Bank wiring Observation Room: to determine the effect of informal group norms and formal economic incentives on productivity.Human relation movement- People should understand people.


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MARY P ARKER F O LLE TT (1868MARY P ARKER F O LLE TT (1868--1933)1933)


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BE H AV IOR AL M ANAGE MEN TImproved and mature version of human relations

approach. The study of how managers should behave tomotivate employees and encourage them to performat high levels and be committed to the achievementof organizational goals.

Focuses on the way a manager should personally manage to motivate employees.


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M A RY P A R KE R FO LLE TT (1868-1933) An influential leader in early managerial theory Held a horizontal view of power and authority inorganizationsx

Suggested workers help in analyzing their jobs forimprovementsthe worker knows the best way toimprove the job.

x

If workers have relevant knowledge of the task,then they should control the task.


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DOU GLAS MCGREG O R DOU GLAS MCGREG O R


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Figure 2.3Source: 12


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` A n approach to management that uses rigorousquantitative techniques to ma x imize the use of organizational resource

` This approach is also called mgt.science approach. Tosolve the comple x problem after the second world war.

This interdisciplinary called Operation Research group.` This approach analysis the problem. C hanging the values

of variables.` This approach focus on decision making by disciplined

thinking to solve the mgt. problem.


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` C lassical approach- task and structure` Behavioral approach- People` Quantitative approach- methetical decision

making.` This approach provides manager to diagnose a problem and decide which tool or combination which is best to do the job.

` This system provides integrated approach tosolve management problems


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Thank You


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unit 1- basic concept of management

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