what is management unit-1

8/6/2019 What is Management Unit-1

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What is Management?

Getting things done through and with the people.

Management is the development of people andnot the direction of thing. Management ispersonnel administration.

Lawrence A. Appley

Management is the process of decision makingand control over the actions of human being forachieving predetermined goals.

R. C. Davis


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POSDCORB, including planning,organizing, staffing, directing,coordinating, reporting and budgeting.

By Luther Gulick

Management is a social process as it

takes its inputs from and exports itsoutputs to society.


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Management is the social process of

planning, organizing, staffing, directing,

coordinating and controlling for thedetermination and achievement of

organizational objectives in a dynamic

environment.

By Koontz and ODonnel


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Management Functions

Planning

Predetermined course of action

Concern with what how and when ofperformance

Determination of long and short rangeobjectives

Development of strategies and action to befollowed for achievement of objectives.

Formulation of policies, procedures andrules for strategies and plans.


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Organizing: is basic process of combining andintegrating human, physical and financial

resources in productive interrelationship forachievement of objectives. It includes:

Identification of activities required for theachievement of objectives.

Implementation of plan.

Grouping of activities into job

Assign job and activities to department andindividuals.

Delegation of responsibility and authority.

Provision for vertical & horizontal coordination.



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Staffing

Manpower planning involves determination of

number and the kind of personnel required.

Recruitment for suitable employees.

Selection of most suitable persons.

Placement, induction and orientation.

Transfers, promotions, termination and layoff.

Training & development of employees.



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Directing: is the function of leading theemployees to perform efficiently and effectivelyand contribute their optimum to theachievement of organization objectives.

Job Assigned to subordinates have to beexplained and clarified.

Provide guidance whenever required

Supervise employees accordingly Motivation

Communication

Leadership



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Coordinating: Coordinating is the function ofestablishing such relationships amongvarious parts of the organization that they all

together pull in the direction of organizationobjectives.

According to Koontz and ODonnel it is anintegral part of all other functions.

Clear definition of authority-responsibilityrelationship

Unity of Command

Unity of Direction

Effective Communication



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Controlling: Controlling is the function of

ensuring that the divisional, departmental,

sectional and individual performance areconsistent with predetermined objectives and

goals. It includes:

Measurement of performance against goal.

Identification of deviation from the goals

Corrective Actions to rectify deviations.



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Principles of Management

Developed by Henri Fayol, the father ofmodern management.

According to him, activities of an enterprisecan be grouped in six categories, Technical(Production), Commercial (buying, selling andexchange), Financial (search for and optimumuse of capital), security (protection of property

and persons), accounting (including statistics)and ultimately Managerial. He developed theprinciples understanding management in allkind of organization.


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A

uthority and Responsibility arerelated

Authority flows from responsibility

Authority is official and personal

Official is derived from manager position in

organization hierarchy

Personal is combination of intelligence,

experience, moral worth and past services etc.

This aspect is relevant in India where

authority tends to be concentrated.


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Unity ofCommand

One employee should have one boss andreceive instructions from him only.

Unity ofDirection

There should be one head and one planfor a group of activities having the sameobjectives.

All related activities should be directed byone person.

Example: All marketing activities like productstrategy, advertising, sales promotion,distribution channel policy, product pricing etc.should be under the control of one Marketing

Manager and directed by an integrated plan.


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ScalarChain ofCommand

Chain of superiors and subordinates from top tobottom.

All are linked with each other in superior-subordinates relationships.

Fayol also says that, where necessary,

Gangplanks should be thrown to prevent thescalar chain of command from blocking thesmooth and efficient functioning of theorganization.

Division of Work It is the principle of specialization which applies toall kinds of work such as managerial andtechnical.

Change in work reduces the output.

Division of Work has its limits.


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Discipline

Member of organization perform theirfunctions and conduct according to rules,

norms and customs.

Discipline (Obedience, application, energy

and mark of respect) is absolutely essentialfor the smooth running of business.

Discipline is what leader make it.

Discipline can be maintained by:

Good superior at all levels

Agreements with the individual employee are

clear and fair as possible


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Subordination of Individual Interest

to General Interest

According to this principle the interest of

the organization is above the interests ofthe individual and the group.

It can be achieved only when manager set

the example of honesty, integrity,fairness

and justice. It also involve an attitude and a spirit of

sacrificing their own personal interest.


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Remuneration

Employee should be paid fairly and

equitably. Difference should be in terms of

quality of employee, application,

responsibility, working conditions and

difficulty to the job.

Profit Sharing plan particularly for

Managers.

He also suggested some non financialincentives like good working conditions,

housing etc. although these could be

afforded only by large scale organizations


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Centralization

Fayol believed centralization.

Fayol suggested that centralization anddecentralization is a question of proportion.

Small Firm Owner Manager give ordersdirectly to everyone whereas large firmworkers is separated from the CEOthrough long scalar chain, the decision

making authority has to be distributedamong various manager.

Decentralization with centralized control.


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Order

Right person on the right job and everythingin its proper place.

Order depends on precise knowledge ofhuman requirements and concernedresources and balance between these two.

Equity

Subordinates should be treated with justiceand kindliness.

It is the duty of CEO to encourage the senseof equity to all levels of scalar chain.

It also involves the devotion and loyaltytowards the organization.


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Stability of Tenure of Personnel

Managerial policy should provide a sense ofjob security.

Hiring & Firing depend on the policy not onthe whims of the superiors.

Under this policy those found unsuitableshould be removed and those foundcompetent should be promoted.

Initiative

It focus on the ability, attitude and

resourcefulness (act without prompting fromothers) of the individual.

Manager must create the environment whichencourages their subordinates to take

initiative and responsibility.


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Esprit de Corps Cohesiveness (Unity) and team spirit should be

encouraged among employees.

Environment should be created in the organization

which will induce people to contribute to each others

efforts in a way that efforts promotes the

achievement of the overall objectives of the

enterprise. Fayol warns against two enemies ofesprit de corps

i.e. a. divide and rule b. abuse of (neglect) written

communication.

It may benefit organization to divide its enemy but itwill surely be dangerous to divide ones own

workers.

Written communication, where necessary, should

always be supplemented by oral communication

because face-to-face contacts tend to promote


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Nature of Management

Management as a Science

Significant contribution was made by Fredrick W.Taylor in the field of Scientific management.

Scientific methods of analysis, observation andexperimentation were used to manage productionfunctions.

Mathematical Models can be used for decisionmaking.

Management possess a systematized body ofknowledge and uses scientific methods ofresearch.

Management is a social science and deals withthe behaviour of people in organization.


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Management as an Art

Applications to the solutions is Art.

Principles of Management are the guideline formanager.


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Management as a Profession According to McFarland a profession possess

the following characteristics: A body of principles, technical skills andspecialized knowledge.

Formalized methods of acquiring training andexperience.

Establishment of an organization withprofessionalism as its goals.

Formation of ethical codes for guidance ofconduct.

Charging the fees based on the nature of work.

Examples: Administrative Staff College of India,Institute of Management Development andResearch, All India Management Associationand University Department of Managementoffers a variety of short term managementtraining programs.


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The Scientific School of

Management It replaces the rule of thumb.

Observation, Experimentation, Analysis, Rationality

and Reasoning are the chief instruments fordeveloping managerial system.

The basic components of scientific management are:

Determination of Standards of Performance

Functional Foremanship

Responsibility of Management

Differential piecework system of wage payment

Mental Revolution

Frederick W. Taylor


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Determination of Standards of

Performance

Fixation of standards of performance on the basis

of amount of work done by an average worker.

Time and Motion should be studied which involve

analysis of all the operations and motion of each

process must be recorded with the help of

stopwatch. Standard of Performance are determined on the

basis of time taken on the performance of each

job together with the time taken for rest and

unnecessary delays.

Functional Foremanship

Taylor observed that in most of the organizations

each man customarily planned his work which

caused to reduce the efficiency and wastage of

time and money.


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He emphasized on separation of planning from

doing and functional foremanship. One person should responsible for planning and others for

executing the same.

Functional foreman planned various aspects of each

workers job and issued him instructions on their specialty.

If a worker performed a job involving 6-7 operations, he

would receive instructions from as many functional

specialists.

Taylor held that one type of man was needed to plan and

an entirely different type to execute the work.

For example planning function has shifted from workersand supervisors to functional specialists like industrial

engineers, quality control experts etc.

It increases the costs of managing but reduced the costs

of operations.


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Responsibilities of Management

Manager should accept responsibility of planning,Directing and organizing.

Management should analyze all operations and

develop scientific methods of operations.

Workers should be scientifically selected and

trained.

Management should cooperate with workers.

To ensure that work is done according to the

scientifically developed methods.

Differential piecework system of Wage

Payment

Motivate workman to attain the highest possible

level of efficiency.


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Give each worker the highest grade of work for which

his ability and physique fits him.

Expect each workman to produce the maximum

amount of work which a first class man can do.

Pay each workman who work at the best pace of a

first class man from thirty to hundred percent beyond

the average of his class.

Mental Revolution

It involves the complete mental revolution in the

attitudes of workers towards their work, managers

towards their supervisor and workers due to

determining work standards, differential piecework

system of wage payment.

With this exercise management and worker can

develop the cooperative attitude with each other.


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The Human Relations

School

Human Relations School was introduced byHawthorne in early 1930s.

It focus on motivation to work

Morale and productivity are related to socialrelations among the workers & supervisors.

Workers perceived themselves as a work group.

The group developed norms relating toproduction as well as personal conduct amongthemselves and with the supervisor.

Organization is a social system Focus on people - part of management

Manager can effectively manage people and getthings done with and through the people.

Hawthorne


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Manager should be effective leader and mostappropriate style of leadership i.e. democratic-

participative should be used. Satisfactory and fruitful human relations can be

attained through management theory

Employee participation in decision making resultedgreater job satisfaction and productivity

Individual behaviour

Communication

Team work : common agreement on goals

Employee motivation is based not only on the

satisfaction of physiological needs but also social andpsychological needs.

Managerial skills in human being can be developedthrough training.


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The Contingency Theory

School

Developed in 1970.

It shows the relationship between an organization

and its environments

Contingency approach is an approach wherebehaviour of one subunit is depend on its

environmental relationship to other units.

Contingency theory emphasizes that there is no

one best way to design organization.

Management is situational and managers should

design the organizations, define objectives and

formulate strategies, policies and plans according

to the situations.


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Management policy and practices, to be effective,must respond to change in environmental forces.

Management success significantly depends on itsability to cope with its environmental changes.

Manager should have adequate human relationskills to accommodate change and abilities to

manage transition as well as stabilize change. Management should use the contingency model indesigning organization, developing its informationand communication system, adopting effectiveleadership styles and formulate suitable objectives,

strategies, policy and practices. Contingency theory provides a method of analysis

as well as a way of integrating organization with itsenvironment.

what is management unit-1

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