INTRODUCTION_TO_MANAGEMENT2.pptx

COURSE
• Overview of Management
• Definition of Management
• Functions of Management,
• Managerial Roles and responsibilities,
• System and Contingency Approach for
understanding organizations,
• Management Thought-Classical Perspective,
• Scientific Management,

PRINCIPLES AND PRACTICES OF
MANAGEMENT
PRINCIPLES AND PRACTICES
NURSING

• Administrative Management,
• Bureaucratic Management,
• Behavioral Perspective.
• Managerial processes, functions, skills and
rules in an organization.

Definition of Management
• 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 and can co-operate towards
attainment of group goals”.
• According to F.W. Taylor, “Management is an art
of knowing what to do, when to do and see that
it is done in the best and cheapest way”.

• Management is a purposive activity.
• It is something that directs group efforts
towards the attainment of certain pre –
determined goals.
• It is the process of working with and through
others to effectively achieve the goals of the
organization, by efficiently using limited
resources in the changing world.

• Management involves creating an internal
environment: -
• It is the management which puts into use the
various factors of production.
• lt is the responsibility of management to create
such conditions which are conducive to maximum
efforts so that people are able to perform their
task efficiently and effectively.
• It includes ensuring availability of raw materials,
determination of wages and salaries, formulation
of rules & regulations etc.

• Therefore, we can say that good management
includes both being effective and efficient.
• Being effective means doing the appropriate
task i.e, fitting the square pegs in square holes
and round pegs in round holes.
• Being efficient means doing the task correctly,
at least possible cost with minimum wastage
of resources.

Characteristics or Nature of
management
• Management is Goal-Oriented:
• The success of any management activity is
accessed by its achievement of the
predetermined goals or objective.
• Management is a purposeful activity.
• It is a tool which helps use of human & physical
resources to fulfill the pre-determined goals.
• For example, the goal of an enterprise is
maximum consumer satisfaction by producing
quality goods and at reasonable prices.

• This can be achieved by employing efficient persons
and making better use of scarce resources.
• Management integrates Human, Physical and
Financial Resources:
• In an organization, human beings work with non-
human resources like machines.
• Materials, financial assets, buildings etc.
• Management integrates human efforts to those
resources.
• It brings harmony among the human, physical and
financial resources.

• Management is Continuous:
• Management is an ongoing process.
• It involves continuous handling of problems and
issues.
• It is concerned with identifying the problem and
taking appropriate steps to solve it.
• For achieving this target various policies have to
be framed but this is not the end.
• For this policies have to be again framed.
• Hence this is an ongoing process.

• Management is all Pervasive:
• Management is required in all types of organizations
whether it is political, social, cultural or business
because it helps and directs various efforts towards a
definite purpose.
• Thus clubs, hospitals, political parties, colleges,
hospitals, business firms all require management.
• When ever more than one person is engaged in
working for a common goal, management is
necessary.

• Whether it is a small business firm which may be
engaged in trading or a large firm, management is
required everywhere irrespective of size or type
of activity.
• Management is a Group Activity:
• Management is very much less concerned with
individual’s efforts.
• It is more concerned with groups.
• It involves the use of group effort to achieve
predetermined goal of management.

• Organized Activities:
• Management is a process of organized activities.
• Groups of people cannot be involved in the
performance of activities without organized
activities.
• Management comes into existence where a
group of people are involved in achieving a
common objective.
• The organized activities may take a variety of
forms ranging from a tightly structured
organization to a loosely-knit organization.

• Existence of Objectives:
• The existence of objectives is a basic criterion
of every human organization.
• The organizational objectives are the desired
state of affairs which an organization attempts
to realize.
• This realization of objectives is sought through
the coordinated efforts of the people
constituting an organization.

• Decision-making:
• Management process involves decision making at
all levels.
• Decision-making describes the process by which a
course of action is selected as the way to deal
with a specific problem.
• If there is only one alternative, the question of
decision making does not arise.
• The quality of alternatives which a manger
selects determines the organization’s
performance, and the future of the organization.

• Relationship among resources:
• The essence of management is integration of
various organizational resources.
• Resources include money, machine, materials,
and people.
• Management is concerned with the proper
utilization of human resources which, in turn,
utilize other resources.

• Working with and through people:
• Management involves working with people
and getting organizational objectives achieved
through them.
• Working through people is interpreted in
terms of assigning activities to subordinates.

• Multidisciplinary:
• Management is multidisciplinary because it
includes knowledge/information from various
disciplines- economics, statistics, maths,
psychology, sociology, ecology, operations
research, history, etc.
• Management integrates the ideas and concepts
taken from these disciplines and presents newer
concepts which can be put into practice for
managing the organizations.

• Management is dynamic:
• Management has framed certain principles,
which are flexible in nature and change with
the changes in the environment in which an
organization exits.

• Relative, Not Absolute Principles:
Management principles are relative, not
absolute, and they should be applied
according to the need of the organization.
• A particular management principle has
different strengths in different conditions.
• Therefore, principles should be applied
according to the prevailing conditions.

Managerial Functions:
• Various management scholars studied
different organizations at different times; they
identified the functions of management in
their own ways.
• Henry Fayol, the father of functional or
administrative management remarked:
• “To manage is to forecast and plan, to
organize, to command, to coordinate and to
control”

• Thus, Fayol classified management functions
into five categories as follows:
• (i) to forecast and plan,
• (ii) to organize,
• (iii) to command or to give orders,
• (iv) to co-ordinate, and
• (v) to control

• Luther Gullick offered a list of administrative
functions under the catchword “PODSCORB”.
• Each alphabet of this keyword “PODSCORB”
stands for the following activities:
– P for Planning,
– O for Organization,
– D for Directing,
– S for Staffing,
– Co for Coordinating,
– R for Reporting, and
– B for Budgeting.

• According to Koontz and ‘O’ Donnell,
• “The most useful method of classifying
managerial activities is to group them around
the functions of planning, organizing, staffing,
directing, and controlling.
• “ They think that coordination is not a
separate function but is the essence of
management.

• Thus, for the sake of analysis of their
management process, we can classify the
management functions into the following
catories:

INTRODUCTION_TO_MANAGEMENT2.pptx

Planning
• It is the basic function of management.
• It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
• According to KOONTZ, “Planning is deciding in advance
– what to do, when to do & how to do.
• It bridges the gap from where we are & where we want
to be”.
• A plan is a future course of actions.
• It is an exercise in problem solving & decision making.

• Planning is determination of courses of action to
achieve desired goals.
• Thus, planning is a systematic thinking about
ways & means for accomplishment of pre-
determined goals.
• Planning is necessary to ensure proper utilization
of human & non-human resources.
• It is all pervasive, it is an intellectual activity and it
also helps in avoiding confusion, uncertainties,
risks, wastages etc.

• Planning is a process of seeking answer to
some of the following particular questions:
(i) What is to be done?
(ii) Why it is to be done?
(iii) How the work will be done?
(iv) Who will do the work?
(v) When the work will be done?
(vi) Where the work will be done?

• Planning pervades at all the levels of
organization.
• But the scope of planning is not the same at
each level of organization.
• Higher the level of organization, the broader
the scope of planning.
• Planning may be long term and short term.

Organizing
• It is the process of bringing together physical,
financial and human resources and developing
productive relationship amongst them for
achievement of organizational goals.
• According to Henry Fayol, “To organize a business
is to provide it with everything useful or its
functioning i.e. raw material, tools, capital and
personnel’s”.
• To organize a business involves determining &
providing human and non-human resources to
the organizational structure.

• Organizing as a process involves:
1. Identification of activities.
2. Classification of grouping of activities.
3. Assignment of duties.
4. Delegation of authority and creation of
responsibility.
5. Coordinating authority and responsibility
relationships.

Staffing
• It is the function of manning the organization
structure and keeping it manned.
• Staffing has assumed greater importance in
the recent years due to advancement of
technology, increase in size of business,
complexity of human behavior etc.
• The main purpose o staffing is to put right
man on right job i.e. square pegs in square
holes and round pegs in round holes.

• According to Kootz & O’Donell,
• “Managerial function of staffing involves
manning the organization structure through
proper and effective selection; appraisal &
development of personnel to fill the roles
designed the structure”.

• Staffing involves:
1. Manpower Planning (estimating man power in
terms of searching, choose the person and giving
the right place).
2. Recruitment, selection & placement.
3. Training & development.
4. Remuneration.
5. Performance appraisal.
6. Promotions & transfer.

Directing
• It is that part of managerial function which actuates
(activates) the organizational methods to work
efficiently for achievement of organizational purposes.
• It is considered life-spark of the enterprise which sets it
in motion the action of people because planning,
organizing and staffing are the mere preparations for
doing the work.
• Direction is that inert-personnel aspect of
management which deals directly with influencing,
guiding, supervising, motivating sub-ordinate for the
achievement of organizational goals.

• Direction has following elements:
1. Supervision
2. Motivation
3. Leadership
4. Communication
• Supervision- implies overseeing the work of
subordinates by their superiors.
• It is the act of watching & directing work &
workers.

• Motivation- means inspiring, stimulating or
encouraging the sub-ordinates with zeal to work.
– Positive, negative, monetary, non-monetary incentives
may be used for this purpose.
• Leadership- may be defined as a process by
which manager guides and influences the work of
subordinates in desired direction.
• Communications- is the process of passing
information, experience, opinion etc from one
person to another.
• It is a bridge of understanding.

Controlling
• It implies measurement of accomplishment
against the standards and correction of
deviation if any to ensure achievement of
organizational goals.
• The purpose of controlling is to ensure that
everything occurs in conformities with the
standards.
• An efficient system of control helps to predict
deviations before they actually occur.

• According to Theo Haimann, “Controlling is the
process of checking whether or not proper
progress is being made towards the objectives
and goals and acting if necessary, to correct any
deviation”.
• According to Koontz & O’Donell “Controlling is
the measurement & correction of performance
activities of subordinates in order to make sure
that the enterprise objectives and plans desired
to obtain them as being accomplished”.

• Therefore controlling has following steps:
a. Establishment of standard performance.
b. Measurement of actual performance.
c. Comparison of actual performance with the
standards and finding out deviation if any.
d. Corrective action.

Qualities of a Successful Manager.
• It is easy to find a bad manager, but much
harder to find a successful one.
• So what makes a manager successful?
• Here are the top ten qualities of a successful
manager:

• Demonstrates integrity - A manager should
walk the talk.
• The old saying, "Lead by example" is the first
quality that makes a manager a stand out.
• Deals honestly and diplomatically - A
manager, who owns their mistakes, deals
openly, and honestly with others, earns the
respect of those they are trying to lead.

• Demonstrates flexibility - A manager who is
responsive to the needs of the business AND
the needs of employees, is able to keep his
team on target and yet achieve the goals of
the business.
• Shows commitment and reliability - A
manager who delivers their promises shows
their team that they are reliable and promotes
trust.

• Listens effectively - A manager who 'seeks first to
understand, then to be understood' (Dr Steven
Covey) is a manager who will always have their
finger on the pulse of the business.
• A good negotiator - A manager who comes to the
table prepared to give a little that the outcome is
a positive one for everyone, will not only earn the
respect of his employees but be guaranteed of
the opportunity for further negotiations in the
future.

• A thorough planner - 'If you fail to plan, you plan
to fail.'
• This saying is especially true for managing.
• A manager is a coach to their team and the team
are looking to them for the game plan.
• Is fair - A manager who doesn't take sides, show
favoritism or victimize those they are supervising,
will earn their trust and in turn, will have more
personal power to influence their team for good.

• Knows how to have fun and has a good sense of
humor - A manager who is able to promote a safe
and happy work environment where appropriate
fun is embraced, will ensure the retention of staff.
• Seeks to understand their workers - A manager
who is able to accurately assess the skills, abilities
and personalities of their work team, will be able
to develop individual managers to maximize their
effectiveness and help them reach their potential,
whilst focusing their efforts on the goal.

• The term “Levels of Management’ refers to a
line of demarcation between various
managerial positions in an organization.
• The number of levels in management
increases when the size of the business and
work force increases and vice versa.
• The level of management determines a chain
of command, the amount of authority &
status enjoyed by any managerial position.

• The levels of management can be classified in
three broad categories: -
– Top level / Administrative level
– Middle level / Executory
– Low level / Supervisory / Operative / First-line
managers
• Managers at all these levels perform different
functions.
• The role of managers at all the three levels is
discussed below:

Top Level of Management
• It consists of board of directors, chief
executive or managing director.
• The top management is the ultimate source of
authority and it manages goals and policies for
an enterprise.
• It devotes more time on planning and
coordinating functions.

The role of the top management can
be summarized as follows –
• Top management lays down the objectives
and broad policies of the enterprise.
• It issues necessary instructions for preparation
of department budgets, procedures,
schedules etc.
• It prepares strategic plans & policies for the
enterprise.
• It appoints the executive for middle level i.e.
departmental managers.

• It controls & coordinates the activities of all
the departments.
• It is also responsible for maintaining a contact
with the outside world.
• It provides guidance and direction.
• The top management is also responsible
towards the shareholders for the performance
of the enterprise.

Middle Level of Management
• The branch managers and departmental
managers constitute middle level.
• They are responsible to the top management for
the functioning of their department.
• They devote more time to organizational and
directional functions.
• In small organization, there is only one layer of
middle level of management but in big
enterprises, there may be senior and junior
middle level management.

Their role can be emphasized as –
• They execute the plans of the organization
in accordance with the policies and
directives of the top management.
• They make plans for the sub-units of the
organization.
• They participate in employment & training
of lower level management.
• They interpret and explain policies from
top level management to lower level.

• They are responsible for coordinating the
activities within the division or department.
• It also sends important reports and other
important data to top level management.
• They evaluate performance of junior
managers.
• They are also responsible for inspiring lower
level managers towards better performance.

Lower Level of Management
• Lower level is also known as supervisory /
operative level of management.
• It consists of supervisors, foreman, section
officers, superintendent etc.
• According to R.C. Davis, “Supervisory
management refers to those executives whose
work has to be largely with personal oversight
and direction of operative employees”.
• In other words, they are concerned with direction
and controlling function of management.

Their activities include –
• Assigning of jobs and tasks to various workers.
• They guide and instruct workers for day to day
activities.
• They are responsible for the quality as well as
quantity of production.
• They are also entrusted with the responsibility of
maintaining good relation in the organization.
• They communicate workers problems,
suggestions, and recommendatory appeals etc to
the higher level and higher level goals and
objectives to the workers.

• They help to solve the grievances of the workers.
• They supervise & guide the sub-ordinates.
• They are responsible for providing training to the
workers.
• They arrange necessary materials, machines, tools
etc for getting the things done.
• They prepare periodical reports about the
performance of the workers.

• They ensure discipline in the enterprise.
• They motivate workers.
• They are the image builders of the enterprise
because they are in direct contact with the
workers.

It helps in Achieving Group Goals
• It arranges the factors of production, assembles and
organizes the resources, integrates the resources in
effective manner to achieve goals.
• It directs group efforts towards achievement of pre-
determined goals.
• By defining objective of organization clearly there
would be no wastage of time, money and effort.
• Management converts disorganized resources of men,
machines, money etc. into useful enterprise.
• These resources are coordinated, directed and
controlled in such a manner that enterprise work
towards attainment of goals.

Optimum Utilization of Resources –
• Management utilizes all the physical & human
resources productively.
• This leads to efficacy in management.
• Management provides maximum utilization of scarce
resources by selecting its best possible alternate use in
industry from out of various uses.
• It makes use of experts, professional and these services
leads to use of their skills, knowledge, and proper
utilization and avoids wastage.
• If employees and machines are producing its maximum
there is no under employment of any resources.

Reduces Costs –
• It gets maximum results through minimum
input by proper planning and by using
minimum input & getting maximum output.
• Management uses physical, human and
financial resources in such a manner which
results in best combination.
• This helps in cost reduction.

Establishes Sound Organization –
• No overlapping of efforts (smooth and coordinated
functions).
• To establish sound organizational structure is one of
the objective of management which is in tune with
objective of organization and for fulfillment of this, it
establishes effective authority & responsibility
relationship i.e. who is accountable to whom, who can
give instructions to whom, who are superiors & who
are subordinates.
• Management fills up various positions with right
persons, having right skills, training and qualification.
• All jobs should be cleared to everyone.

Establishes Equilibrium –
• It enables the organization to survive in changing
environment.
• It keeps in touch with the changing environment.
• With the change in external environment, the
initial co-ordination of organization must be
changed.
• So it adapts organization to changing demand of
market / changing needs of societies.
• It is responsible for growth and survival of
organization.

Essentials for Prosperity of Society –
• Efficient management leads to better economical
production which helps in turn to increase the welfare
of people.
• Good management makes a difficult task easier by
avoiding wastage of scarce resource.
• It improves standard of living.
• It increases the profit which is beneficial to business
and society will get maximum output at minimum cost
by creating employment opportunities which generate
income in hands.
• Organization comes with new products and researches
beneficial for society

Henry Mintzberg - Managerial
Roles

• A role is an organized set of behaviors.
• Henry Mintzberg has identified ten roles
common to the work of all managers.
• The ten roles are divided into three groups:
–interpersonal,
–informational, and
–decisional.

• The informational roles link all managerial
work together.
• The interpersonal roles ensure that
information is provided.
• The decisional roles make significant use of
the information.
• The ten roles are described individually, but
they form an integrated whole.

The three interpersonal roles are primarily
concerned with interpersonal relationships.
• Figurehead role, the manager represents the
organization in all matters of formality.
• The top level manager represents the
company legally and socially to those outside
of the organization.
• The supervisor represents the work group to
higher management and higher management
to the work group.

• Liaison role, the manger interacts with peers
and people outside the organization. The top
level manager uses the liaison role to gain favors
and information, while the supervisor uses it to
maintain the routine flow of work.
• Leader role defines the relationships between
the manger and employees.
• The direct relationships with people in the
interpersonal roles place the manager in a unique
position to get information.

The three informational roles are primarily concerned
with the information aspects of managerial work.
• Monitor role, the manager receives and
collects information.
• Disseminator, the manager transmits special
information into the organization.
• The top level manager receives and transmits
more information from people outside the
organization than the supervisor.

• Spokesperson, the manager disseminates the
organization's information into its
environment.
• Thus, the top level manager is seen as an
industry expert, while the supervisor is seen
as a unit or departmental expert.
• The unique access to information places the
manager at the center of organizational
decision making.

There are four decisional roles.
• Entrepreneur role, the manager initiates change.
• Disturbance handler role, the manger deals with
threats to the organization.
• Resource allocator role, the manager chooses
where the organization will expend its efforts.
• Negotiator role, the manager negotiates on
behalf of the organization. The top level manager
makes the decisions about the organization as a
whole, while the supervisor makes decisions
about his or her particular work unit.

• Management principles are statements of
fundamental truth.
• These principles serve as guidelines for decisions
and actions of managers.
• They are derived through observation and
analysis of events which managers have to face in
practice
• Fayol made his mark as an industrialist with the
French coal and iron combine of commentary
four chambault where he spent his entire
working life.

There are 14 Principles of Management
described by Henri Fayol
1. Division of Work -
• The specialization of the workforce according to
the skills a person, creating specific personal and
professional development within the labour force
and therefore increasing productivity; leads to
specialization which increases the efficiency of
labour.
• By separating a small part of work, the workers
speed and accuracy in its performance increases.
• This principle is applicable to both technical as
well as managerial work.

2. Authority and Responsibility-
• The issue of commands followed by responsibility
for their consequences.
• Authority means the right of a superior to give
order to his subordinates;
• Responsibility means obligation for performance.
• This principle suggests that there must be parity
between authority and responsibility.
• They are co-existent and go together, and are two
sides of the same coin.

3. Discipline-
• Discipline refers to obedience, proper conduct in
relation to others, respect of authority, etc.
• It is essential for the smooth functioning of all
organizations.
4. Unity of Command -
• This principle states that every subordinate
should receive orders and be accountable to one
and only one superior.

• If an employee receives orders from more
than one superior, it is likely to create
confusion and conflict.
• Unity of Command also makes it easier to fix
responsibility for mistakes.
5. Unity of Direction -
• All those working in the same line of activity
must understand and pursue the same
objectives.

• All related activities should be put under one
group, there should be one plan of action for
them, and they should be under the control of
one manager.
• It seeks to ensure unity of action, focusing of
efforts and coordination of strength.
6. Subordination of Individual Interest
• The management must put aside personal
considerations and put company objectives first.

• Therefore the interests of goals of the
organization must prevail over the personal
interests of individuals.
7. Remuneration -
• Workers must be paid sufficiently as this is a chief
motivation of employees and therefore greatly
influences productivity.
• The quantum and methods of remuneration
payable should be fair, reasonable and rewarding
of effort.

8. The Degree of Centralization -
• The amount of power wielded with the central
management depends on company size.
• Centralization implies the concentration of
decision making authority at the top
management.
• Sharing of authority with lower levels is called
decentralization.
• The organization should strive to achieve a
proper balance.

9. Scalar Chain -
• Scalar Chain refers to the chain of superiors
ranging from top management to the lowest
rank.
• The principle suggests that there should be a
clear line of authority from top to bottom
linking all managers at all levels.
• It is considered a chain of command.

• It involves a concept called a "gang plank"
using which a subordinate may contact a
superior or his superior in case of an
emergency, defying the hierarchy of control.
• However the immediate superiors must be
informed about the matter

10. Order -
• Social order ensures the fluid operation of a
company through authoritative procedure.
• Material order ensures safety and efficiency in
the workplace.
11. Equity -
• Employees must be treated kindly, and justice
must be enacted to ensure a just workplace.
• Managers should be fair and impartial when
dealing with employees.

12. Stability of Tenure of Personnel -
• The period of service should not be too short
and employees should not be moved from
positions frequently.
• An employee cannot render useful service if
he is removed before he becomes accustomed
to the work assigned to him.

13. Initiative -
• Using the initiative of employees can add
strength and new ideas to an organization.
• Initiative on the part of employees is a source
of strength for the organization because it
provides new and better ideas.
• Employees are likely to take greater interest in
the functioning of the organization.

14. Esprit de Corps -
• This refers to the need of managers to ensure
and develop morale in the workplace;
individually and communally.
• Team spirit helps develop an atmosphere of
mutual trust and

Fredrick Winslow - Scientific
Management.
• Fredrick Winslow Taylor commonly known as
’Father of Scientific Management’ started his
career as an operator and rose to the position
of chief engineer.
• He conducted various experiments during this
process which forms the basis of scientific
management.
• It implies application of scientific principles for
studying & identifying management problems.

• According to Taylor, “Scientific Management is
an art of knowing exactly what you want your
men to do and seeing that they do it in the
best and cheapest way”.
• In Taylors view, if a work is analysed
scientifically it will be possible to find one best
way to do it.

• Hence scientific management is a thoughtful,
organized, dual approach towards the job of
management against hit or miss or Rule of
Thumb.
• According to Drucker, “The cost of scientific
management is the organized study of work,
the analysis of work into simplest element &
systematic management of worker’s
performance of each element”.

The Principles of Scientific
Management.
1. Development of Science for each part of men’s
job (replacement of rule of thumb)
– Under scientific management, decisions are made on
the basis of facts and by the application of scientific
decisions.
2. Scientific Selection, Training & Development of
Workers
– There should be scientifically designed procedure for
the selection of workers.
– Workers should be selected & trained to make them
fit for the job.

3. Co-operation between Management & workers
or Harmony not discord
– Taylor believed in co-operation and not individualism.
– It is only through co-operation that the goals of the
enterprise can be achieved efficiently.
– There should be no conflict between managers &
workers.
– Taylor believed that interest of employer & employees
should be fully harmonized so as to secure mutually
understanding relations between them.

4. Division of Responsibility
• This principle determines the concrete nature of
roles to be played by different level of managers
& workers.
• The management should assume the
responsibility of planning the work whereas
workers should be concerned with execution of
task.
• Thus planning is to be separated from execution.

5. Mental Revolution
• The workers and managers should have a
complete change of outlook towards their mutual
relation and work effort.
• It requires that management should create
suitable working condition and solve all problems
scientifically.
• Similarly workers should attend their jobs with
utmost attention, devotion and carefulness.
• They should not waste the resources of
enterprise.

6. Maximum Prosperity for Employer & Employees
• The aim of scientific management is to see maximum
prosperity for employer and employees.
• It is important only when there is opportunity for
each worker to attain his highest efficiency.
• Maximum output & optimum utilization of resources
will bring higher profits for the employer & better
wages for the workers.
• There should be maximum output in place of
restricted output.

System Approach of Modern
Management Theory

• The past thirty years witnessed a “Knowledge
Explosion” in the field of managements.
• During this period management writer have been
primarily concerned with integrating the findings
of scientific management, principles of
management and human relations movements.
• Two integrating trends have developed throwing
adequate light on the dynamic nature of
management namely: -
• System Approach
• Contingency Approach

• These modern management theories considered
all elements of the whole organization as well as
components parts.
• The organization is viewed as adaptive systems
which must in order to survive adjust to
environmental changes.
• The organization and its environment are seen as
interdependent; each depends on the other for
resources from scientific management, human
relations.

SYSTEM APPROACH:
• A system in simple terms is a set of
interrelated parts.
• It’s a group of interrelated but separate
elements working towards a common
purpose.
• The arrangement of elements must be orderly,
there must be proper communication
facilitating interaction btwn elements and
finally the interaction should lead to achieve a
common goal.

• The organization transforms input into a
variety of outputs and offers the same to the
external environment in the form of products
good and services.
• Sale of the output provides the necessary
energy (feedback) to the system cycle.

• The system theory of management is
characterized by the following: -
• Dynamic: - Within the organization the process of
interaction between subsystems is dynamic.
• Adaptive: - An organization and its environment
are expected to rearrange their parts.
• Organization tries to cope with environment
changes through the “feed back” mechanism.

• An organization must produce output
acceptable to components in environment.
• Probabilistic: - Modern theory tends to
probabilistic. “Statement in modern theory
tends to be qualified with phrases such as
“may be”, in general” and usually” because
modern theory recognizes that few predictive
statement can be made with certainty.

• Multidisciplinary: - Modern theory of
management is enriched by contribution from
disciplines like sociology, psychology,
economics, anthropology, ecology
mathematics, operations research and so on.
• Descriptive: - Individual are free to select the
objectives and the methods to improve
organizational effectiveness.

• Multivariable: - There is no simple cause
effect phenomenon in organizational
activities.
• An event may be the product of many factors
that are in turn interrelated and
interdependent.

Contingency approach of
Management

• The contingency approach believes that it is
impossible to select one way of managing that
works best in all situations like promoted by
Taylor.
• Their approach is to identify the conditions of a
task (scientific management school), managerial
job (administrative management school) and
person (human relations school) as parts of a
complete management situation and attempt to
integrate them all into a solution which is most
appropriate for a specific circumstance.

• Contingency refers to the immediate
(contingent or touching) circumstances.
• The manager has to systematically try to
identify which technique or approach will be
the best solution for a problem which exists in
a particular circumstance or context.
• The contingency approach seeks to apply to
real life situations ideas drawn from various
schools of management thought.

• They claim that no one approach is universally
applicable and different problems and situations
require different approaches.
• Managers must try to find the approach that is
the best for them in a certain given situation, so
they can achieve their goals.
• It is important to note that the contingency
approach stresses the need for managers to
examine the relationship between the internal
and external environment of an organization.

• Critics of the contingency approach have
blamed it to lack theoretical foundation and
are basically intuitive.
• Managers today are advised to analyze a
situation and use ideas from the various
schools of thought to find an appropriate
combination of management techniques to
meet the needs of the situation

Max Weber- Bureaucratic
Management

Bureaucratic Management
• Max Weber contributed the theory of
bureaucracy to the management thought.
• Max Weber’s main contribution to
management is his theory of authority
structure and his description of organizations
based on the nature of authority relations
within them.

It was Weber’s contention that there are there types of
legitimate authority which run as follows:
• Rational legal authority- Obedience is owed to a
legally established position or rank within the hierarchy of
a business, military unit, government, and so on.
• Traditional authority- People obey a person because
he belongs to certain class or occupies a position
traditionally recognized as possessing authority, such as a
royal family.
• Charismatic authority- Obedience is based on the
followers’ belief that a person has some special power or
appeal.

Characteristics of Bureaucracy
A bureaucratic organization shows the following:
• Division of work- There is a high degree of division of
work at both the operative and administrative levels.
This leads to specialization of work
• Hierarchy of positions- There is a hierarchy of
authority in the organization.
• Each lower position is under the control of a higher
one. Thus, there is unity of command.
• Rules and regulations- The rules, regulations &
procedures are clearly laid down by the top
administration.

Benefits of Bureaucracy :
• Impersonal conduct- There is impersonality of
relationships among the organizational
members.
• The decisions are entirely guided by rules and
regulations and are totally impersonal.
• There is no room for emotions and sentiments
in this type of structure are also based on
technical qualifications and performance

• Staffing- The personal are employed by a
construal relationship between the employee and
employer.
• The employees get salary every month which is
based on the job they handle and also the length
of service.
• Technical competence- The bureaucrats are
neither elected nor inherited, but they are
appointed thorough selection.
Promotions in bureaucracies

• Official records: The decisions and activities of
the organization are formally recorded and
preserved safely for future reference.
• This is made possible by extensive filing
system.
• The filing system makes the organization
independent of individuals.
• The official records serve as the memory of
the organization.

Classical perspective of
Management by Classical School

• The Empirical School seeks to generalize the
nature of management based on the experience
of successful managers.
• The basic theme of this assumption is that if a
particular business operation is successful, or if a
particular problem was effectively tackled by
application of a particular strategy, then the
methods of strategies through which success was
achieved by the managers could be equally
effectively used by others in the case of similar
business situations in future.

Basic principles laid down by Classical
School
• The basic principles laid down by the Classical
School may be summed up as follows:
• Scalar chain*: It is the fore-runner of the
hierarchy principle under which authority
flows from the top to the bottom level
managerial positions.
• Unity of command*: It lays down that each
individual should only receive orders from one
hierarchical superior.

• Exception: It emphasizes, maximum
delegation of authority such that the superior
is required to intervene only is the case of
non-routine, exceptional tasks.
• Span of control* :- It advocates that each
superior should only have a manageable
number of subordinates to direct and control

• Specialization*: It emphasizes differentiation
of organizational activities based on
objectives, processes, location, clients, etc.
• Scientific method: It advocates the use of
experimental methods to develop sound
organizational and management methods.

Douglas Mcgregory –X and Y Theory

• Douglas McGregor (1906 - 1964) is one of the
forefathers of management theory.
• He was a social psychologist who became the
President of Antioch College.
• He later became a professor of management at
Massachusetts Institute of Technology (he was
succeeded by Warren Bennis).
• His book The Human Side of Enterprise (1960)
had a profound influence on the management
field, largely due to his Theory X and Theory Y.

• McGregor developed a philosophical view of
humankind with his Theory X and Theory Y in
1960.
• His work is based upon Maslow's Hierarchy of
Needs in that he grouped the hierarchy into
lower-order needs (Theory X) and higher-order
needs (Theory Y).
• He suggested that management could use either
set of needs to motivate employees, but better
results would be gained by the use of Theory Y,
rather than Theory X.

• These two opposing perceptions theorized
how people view human behavior at work and
organizational life:
• McGregor felt that organizations and their
managers followed one or the other
approach:

Theory X
Theory X assumptions; management's role is to coerce
and control employees.
• People have an inherent dislike for work and will avoid
it whenever possible.
• People must be coerced, controlled, directed, or
threatened with punishment in order to get them to
achieve the organizational objectives.
• People prefer to be directed, do not want
responsibility, and have little or no ambition.
• People seek security above all else.
In an organization with Theory X assumptions,
management's role is to coerce and control employees.

Theory Y
Theory Y assumptions; management's role is to
develop the potential in employees and help them
to release that potential towards common goals.
• Work is as natural as play and rest.
• People will exercise self-direction if they are
committed to the objectives (they are NOT lazy).
• Commitment to objectives is a function of the
rewards associated with their achievement.
• People learn to accept and seek responsibility.

• Creativity, ingenuity, and imagination are widely
distributed among the population.
• People are capable of using these abilities to solve an
organizational problem.
• People have potential.
In an organization with Theory Y assumptions,
management's role is to develop the potential in
employees and help them to release that potential
towards common goals.

Theory X is the view that traditional
management has taken towards the workforce.
A boss can be viewed as taking the theory X
approach, while a leader takes the theory Y
approach.

Abraham Maslow-Hierarchy of
needs

Abraham Maslow-Hierarchy of needs
• American psychologist, Abraham Maslow,
published A Theory of Human Motivation (1943)
in the Psychological Review Journal that theorized
his hierarchy of needs model.
• This motivational model put forth that a higher
need, such as self-actualization, is expressed only
after lower needs are first fulfilled.
• This was one of the first psychology research
projects that looked at mentally healthy human
beings, rather than the mentally ill.

• Maslow (1943) felt that human needs were arranged in
a hierarchical order that could be divided into two
major groups:
– basic needs and metaneeds (higher order needs):
• Basic Needs are:
– Physiological, such as food, water, and sleep; a
– Psychological, such as affection, security, and self-
esteem.
• These basic needs are also called “deficiency needs”
because if they are not met by an individual, then that
person will strive to make up the deficiency.

• Metaneeds or being needs (growth needs).
• These include justice, goodness, beauty, order,
unity, etc.
• Basic needs normally take priority over these
meta needs.
• For example, a person who lacks food or water
will normally not attend much to justice or
beauty needs.

• These needs are often listed in a hierarchical
order in the form of a pyramid to show that
the basic needs (bottom ones) must be met
before the higher order needs

• Self-actualization — know exactly who you
are, where you are going, and what you want
to accomplish. A state of well-being
• Esteem — feeling of moving up in world,
recognition, few doubts about self
• Belongingness and love — belong to a group,
close friends to confide with
• Safety — feel free from immediate danger
• Physiological — food, water, shelter, sex

• A need higher in the hierarchy will become a
motive of behavior as long as the needs below
it have been satisfied.
• Unsatisfied lower needs will normally
dominate unsatisfied higher, thus they must
normally be satisfied before the person can
rise up in the hierarchy.

• Knowing where a person is located on the
pyramid will aid you in determining effective
motivators.
• For example, motivating a middle-class person
who has met the first four levels with positive
feedback and encourage, such as a certificate, will
have a greater impact than using the same
motivator to affect a minimum wage person from
the ghetto who is desperately struggling to meet
the first couple of needs.

• It should be noted that almost no one stays in
one particular hierarchy for an extended period.
• We constantly strive to move up, while at the
same time various forces outside our control try
to push us down.
• Those on top get pushed down for short time
periods, e.g., death of a loved-one or an idea that
does not work; while those on the bottom get
pushed up, e.g., earn the education they need or
come across a small prize.

Expansion of the Pyramid
• Maslow theorized that the ultimate goal of life
is self-actualization, which is almost never
fully attained but rather is something we try
to always strive for.
• He later theorized that this level does not
stop; it goes on to self-transcendence, which
carries us to the spiritual level,
– e.g. Gandhi, Mother Theresa, Dalai Lama, or even
poets, such as Robert Frost.

• Maslow's self-transcendence level recognizes
the human need for ethics, creativity,
compassion and spirituality.
• Without this spiritual or transegoic sense, we
are simply become machines.

• Self-transcendence — a transegoic level that
emphasizes visionary intuition, altruism, and
unity consciousness.
• Transegoic means a higher, psychic, or spiritual
state of development.
• The trans is related to transcendence, while the
ego is based on Freud's work.
• We go from preEGOic levels to EGOic levels to
transEGOic.
• Ego equates with the personality.

APPLICATION
• Our goal as leaders therefore is to help people
obtain the skills, knowledge, and benefits that
will push them up the hierarchy.
• People who have their basic needs met
become much better workers as they are able
to concentrate on fulfilling their and the
organization's visions, rather than consistently
struggling to make ends meet.

Characteristics of Self-actualized
People
• People who have reached the state of self-
actualization normally display the following
characteristics:
– have better perceptions of reality and are
comfortable with it
– accept themselves and their own natures
– lack artificiality
– focus on problems outside themselves and are
concerned with basic issues and eternal questions

– like privacy and tend to be detached
– rely on their own development and continued
growth
– appreciate the basic pleasures of life (e.g. do not
take blessings for granted)
– have a deep feeling of kinship with others
– are deeply democratic and are not really aware of
differences
– have strong ethical and moral standards
– are original, inventive, less constricted and fresher
than others

Herzberg's Hygiene and
Motivational Factors

• Frederick Herzberg was considered one of the
most influential management consultants and
professors of the modern postwar era.
• He was considered both an icon and legend
among visionaries such as Abraham Maslow,
Peter Drucker, and Douglas McGregor

• Herzberg (1966) is best known for his list of
factors that are based on Maslow's Hierarchy
of Needs, except his version is more closely
related to the working environment

HERZBERG'S HYGIENE &
MOTIVATIONAL FACTORS
• Hygiene factors must be present in the job before
motivators can be used to stimulate a person.
• That is, you cannot use motivators until all the
hygiene factors are met.
• If the factor is not met, then it becomes a
Dissatisfier.
• Herzberg's needs are specifically job related and
reflect some of the distinct things that people
want from their work, as opposed to Maslow's
Hierarchy of Needs that reflect the needs in a
person's life.

Hygiene or Dissatisfiers:
• Working conditions
• Policies and administrative practices
• Salary and Benefits
• Supervision
• Status
• Job security
• Co-workers
• Personal life

Motivators or Satisfiers:
• Recognition
• Achievement
• Advancement
• Growth
• Responsibility
• Job challenge

• Herzberg coined the term job enrichment —
• the process of redesigning work in order to build
in motivators by increasing both the variety of
tasks that an employee performs and the control
over those tasks.
– It is associated with the design of jobs and is an
extension of job enlargement (an increase in the
number of tasks that an employee performs).
• Job Enlargement means that a variety of tasks are
performed to reduce boredom, rather than
overloading a person with too many tasks.

INTRODUCTION_TO_MANAGEMENT2.pptx

More Related Content

What's hot (20)

Similar to INTRODUCTION_TO_MANAGEMENT2.pptx (20)

Recently uploaded (20)

INTRODUCTION_TO_MANAGEMENT2.pptx