Essentials Of Management

Essentials of
Management
Dr. P. Rajendran
Professor – Management Sciences
SNS College of Engineering
Coimbatore

Introduction
• Managing is one of the important
human activity.
• People usually forming groups to
accomplish aims which (aims) could
not achieve as individuals.
• So, managing has been essential to
ensure the co-ordination of individual
efforts.
• Managerial practices are very
essential to all persons in
organization.

Introduction - Contd…
MANAGE -
MEN T
ME N

Management
• Every business unit has objectives of
its own.
• These objectives can be achieved with
the co-operative efforts of several
personnel.
• The work of a number of persons are
properly coordinated to achieve the
objectives through the process of
management.
• Management is the art of getting the
things done by a group of people with
the effective utilisation of available
resources.

Management - Defined
• Henry Fayol – “to manage is to forecast
and plan, to organise, to compound, to
coordinatre and to control”.
• Donald J. Clough – “management is the
art and science of decision making”.
• F.W. Taylor – “management is the art of
knowing what you want to do and then
seeing that it is done in the best and
cheapest way”.
• R.M. Currie – “the organisation and
control of human activity are directed
towards specific ends”.

Management - Expanded
• Management is the process of designing and
maintaining an environment in which
individuals, working together in groups,
efficiently accomplish selected aims.
• This basic definition needs to expanded:
• As Managers, people carryout the managerial
functions of Planning, organising, staffing, leading
and controlling.
• Management applies any kind of organisation at any
organisational level.
• The aim of managers is same: to creat a Surplus.
• Managing is concerned with
• Productivity = Efficiency + Effectiveness

Productivity, Efficiency and
Effectiveness
• Productivity – The input-output
ratio within a time period with due
consideration for quality.
• Output/Input Ratio
• Efficiency -Rate of achievement
with least amount of resources.
• [Output/Input] X 100
• Effectiveness - Rate of
achievement of objectives
• By time, quantity and quality

Characteristics of Management
• Art as well as Science
• Art – Possessing of managing skill by a person.
• Science – Developing principles and laws where
group of activities are coordinated.
• Management is an activity – Effective
utilisation of resources (4M)
• Management is a Continuous Process –
POSD:CORC(B).
• Management is a Discipline
• Management aims at maximising profit
• Management is A Profession
• Universal application.

Functions of Management
• Planning – Deciding in advance:
achieving organisational Objectives.
• Organising – Distribution of work in
group-wise: More departments are
brought together.
• Staffing – selection and placement of
competent personnel: Placement of
right persons in the right jobs.
• Directing – Guidence, supervision and
motivation: total manner in which a
manager influences the action of his
subordinates.

Functions of
Management
• Coordinating – Summing up the resources
towards the accomplishment of goals.
• Motivating – increasing the speed of
performance: Developing a willingness on
the part of the workers.
• Controlling – Ensuring that goals are
achieved.
• Innovation
• Decision-Making
• Communication.

Role of a Manager
• Director – instructing
• Motivator – stimulating
• Human Being – treating equally and no
personal bias
• Guide – well aware of using equipments,
techniques and procedures
• Friend – forwarding voluntarily and
eliminating misunderstanding
• Planner – identifying requirements time-to-
time.
• Supervisor – executing performance
• Reporter – providing feed back information to
the top level management.

Managerial Functions at Different
Organisational Levels
Organisational Levels Functions of Management
Top Level P
O
Middle Level
L
Lower Level C

Managerial Skills at Different
Organisational Levels
• Levels of Management Skills
– T
– H
–
C&D

Eight characteristics of Excellent
Enterprises
Profitability is an important measure of company excellence. Thomas
Peters and Robert Waterman identified 43 companies that they regarded
as excellence which are found in their book, In Search of Excellence. In
choosing some of the firms, they considered factors such as; Growth of
assets and equity, Average return on total capital.
• Characteristics of Excellent Enterprises
• Oriented towards action
• Learned about the need of their customers,
• Promoted managerial autonomy and entrepreneurship
• Achieved productivity by paying close attention to the
needs of their people
• Driven by company’s philosophy often based on the
values of their leaders,
• Focused on the business they knew best,
• Had a simple organisational structure with a lean staff
and
• Centralized and decentralised depending on
appropriateness
(Ex :Decide on investment Centralisation/Effort on cost
control Decentralisation.

Evolution of Management Thought
• In managing, as in any other field, unless
practitioners are to learn by trial and error,
there is no place they can turn to, for
meaningful guidance other than the
accumulated knowledge underlying their
practice.
• Many different contributions of writers and
practitioners have resulted in different
approaches to management.
• These practitioners and management
reviewers have come up with principles
and divisions of management.
• Among the various experts of
management, FW Taylor, Henry fayol, Elton
Mayo and FJ.Roethlisberger are found as
pioneers of Management.

The Emergence of Management Thought
S.No Name Major Work and Year Major Contribution to Management
Scientific Management
1 F. W. Taylor
(Father of
Scientific
Management)
•Shop Management (1903)
•Principles of Sci. Mgt (1911)
Scientific Management – Increasing
productivity through greater efficiency by
application of Scientific method.
2 Henry L. Gantt Gantt Chart (1901) Harmonious Cooperation b/w labor and
Management, stressed the need for training
3 Frank & Lillian
Gilbreth
Frank is Known for time and
Motion Study, Lillian an industrial
psychologist focused on human
aspects of work (1900).
Understanding of worker’s personalities and
needs

S.No Name Major Work and Year Major Contribution to Management
Modern operational Management Theory
1 Henry Fayol
(Father of Operational
Management)
Administration Industrielle
et generale (1916)
Division of Industrial Activities - Technical,
commercial, financial, security, accounting
and managerial. Formulated 14 Principles
of Management.
Behavioural Sciences
1 Hugo Mintzberg (1912) Psychology in Industry
2 Walter Dill Scott Psychology in Promotional and
Personnel Management ((1901,
1911)
Application of Psychology in Advertising,
marketing, and personnel management
3 Vilfredo Pareto Father of Social Systems and
Approach (1896 – 1917)
Social Systems and Approach to
organization and Management.
4 Elton Mayo Hawthorne Plant Behavioural Studies at Hawthorne Plant of
Western Electric Company
5 F.J
Roethlisberger
Influence of Social attitudes
(1933)
Influence of Social attitudes and
relationships of work groups on
performance.
Systems Theory
1 Chester Barnard The Functions of the
Executive (1938)
Comprehensive social system as task of
Managers
2 Peter F Drucker
W. Edward Deming
General management
(1974)
Introduced QC in Japan
3 Thomas Peters &
Robert Waterman
Excellence of Companies
(1982)
Identified Characteristics of companies
they considered Excellent.

Fayol’s (1841-1925) 14 Principles of
Management
• Division of Work – Various functions – posd corb.
• Authority & Responsibility – right to give orders and power to
exact obedience.
• Discipline – obedience to authority and observance of rules of
service
• Unity of Command – receive instructions about a particular work
from one superior only.
• Unity of Direction – complete identitiy between individual and
organisational goals
• Subordination of Individual interest to general interest.
• Remuneration – fair wages and salary
• Centralisation – deciding on the degree of centralisation or
decentralisation of authority on the basis of
• the nature of the circumstances (functional/operational)
• Size of the undertaking (SML/MSME)
• The type of activities (Manufacturing/Product/Services)
• Nature of the organisational structure (Functional, line, staff, Matrix)
• Scalar Chain – hierarchy of authority from the highest executive
to lowest one for the purpose of communication.

Fayol’s 14 Principles of Management – Contd..,
• Scalar Chain
As per the principle, the orders or communications should pass through the
proper channel.
• Order – putting the things in order through competent HR and equipments.
• Equity – equality of fair treatment = Kindness + Justice. It requires
managers to be free from all prejudices, personal likes and dislikes.
• Stability of Tenure of personnel – assured security of job by the
management. If they have fear if insecurity of job, their morale will be low
and the cannot give more and better work.
• Initiative – freedom to think an execute the plan. Innovation is the hallmark
of technological process is possible where the employees are encouraged
to take initiative.
• Esprit de Corps – union is strength:
• creating team spirit among employees
• Harmony and unity among the employees are a great source of strength to the
undertaking.
• To attain EdC,
1. Motto of divide and rule should be avoided
2. Verbal communication should used for removing misunderstanding.
A
C
D
B
E
M
N
O
P

FW Taylor’s (1856 – 1915) Contribution as
Scientific Management
• Time and Motion Study – stop watch method:
unnecessary motion ate avoided: best way doing job was
found: replace the old-rule-of–thumb knowledge
• Differential Payment – incentives with production with
high piece rate.
• Drastic Reorganization of supervision – each worker to
plan his own work. The worker himself used to select his
tools.
• Scientific recruitment and Training – train every worker
to bring out his best performance and enabling them to
higher and profitable class of work.
• Intimate friendly cooperation b/w the management and
the worker – a complete mental revolution Vs quarrel
over poor profits / rich loss.

Elton Mayo and FJ Roethlisberger –
Hawthorne Studies
• EM & FJR undertook the famous experiments at the Hawthorne
Plant of the Western Electric Company between 1927 and 1932.
• To determine the effects of illumination and other conditions on
workers and their productivity.
• The experiment constrains are:
• Increasing or decreasing illumination
• Modifying rest period
• Shortening work days
• Varying incentive pay systems
all partly responsible for productivity
• Other findings are:
• Social factors as morale,
• Interrelationships
• Group behaviour
• Motivating, counselling
• Leading and communicating
Also playing important roll in determining productivity.

10 Managerial Roles(Activities) identified by
Mintzberg
(Prof. Henry Mintzberg – McGill University)
•The figure Role (performing ceremonial and social
duties as the organisation’s representative)
•The Leader Role (being able to lead all by living
as model)
•The Liaison Role (particularly with outsiders)
•The Recipient Role (receiving information about
the operation of an enterprise)
•The Disseminator Role (Passing and interpreting
information to subordinates)
•The spokesperson Role (transmitting information
to those outside the organisation)
•The Entrepreneurial Role
•The Disturbance-handler role
•The resource-allocator role
•The Negotiator Role (dealing with various persons
and groups of persons)
Interpersonal
Roles
Informational
Roles
Decision
Roles

Patterns or Approaches to Management
• Empirical or Case approach-Analysing an incident or event
• Managerial Roles approach-3IPR+4DR+3IR
• Contingency or situational approach
• Causes + contingency = Effect
• Mathematical or management Science Approach
• Statistics, Operations Research
• Decision Theory approach
• Process of DM
• Entire area of Business Activity
• Nature of Organisation Structure
• Information for Decisions
• Individual and Group DM
• Reengineering approach
• Fundamental rethinking process Analysis
• Radical Redesign
• Dramatic Reults

• Systems Approach
• POSD CORB
• Interacting with external Environment
• Socio Technical Systems approach
• Technical Skill given importance
• Emphasis only on BC and LL workforce
• Ignoring other managerial Knowledge
• Cooperative social systems approach
• Concerned with
• Interpersonal and
• Group Behavoural Aspects
• Cooperative group with a clear purpose
• Group behaviour approach
• Studying behaviour of group through
Sociology and Socio Psychology

• Interpersonal Behaviour
Approach
• Focus on
• Interpersonal Behaviour
• Human relations
• Motivation
• McKinsey’s 7s Framework
Orgn
Structure
Strategy
Skills
Shared Values
Systems
Staff
Style

• TQM Approach
• Satisfaction through Quality
Products and Services
• Management Process or
• Operational Approach
Summary of approaches above
Operational Approach
Integrates the approaches with Science and
theory as well as Practical

Essentials Of Management

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Essentials Of Management