Management by arun verma
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Managers coordinate the work of others to accomplish organizational goals. There are three levels of management: first-line managers oversee non-managers, middle managers oversee first-line managers, and top managers make organization-wide decisions. Managers work in organizations, which are social units that work toward common goals. The main functions of management are planning, organizing, leading, and controlling. Managers make decisions, allocate resources, and direct others. Effective management achieves goals efficiently and effectively.
Management by arun verma
- 1. Management 1
- 2. Who Are Managers? Manager Someone who works with and through other people by coordinating their work activities in order to accomplish organizational goals 2
- 3. Types of Managers First-line Managers Are at the lowest level of management and manage the work of nonmanagerial employees Middle Managers Manage the work of first-line managers Top Managers Are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization 3
- 4. Exhibit 1.1 Managerial Levels Top Managers Middle Managers First-Line Managers Nonmanagerial Employees 4
- 5. Where Managers Work Organization A consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals. 5
- 6. Definition of Management: Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims 6
- 7. Definitions of Effectiveness and Efficiency Productivity implies effectiveness and efficiency in individual and organizational performance Effectiveness is the achievement of objectives Efficiency is the achievement of the ends with the least amount of resources (men, money, material, machinery, time etc.) 7
- 8. Managerial Concerns Efficiency “Doing things right” Getting the most output for the least input Effectiveness “Doing the right things” Attaining organizational goals 8
- 9. What Managers Do Managerial Activities • Make decisions • Allocate resources • Direct activities of others to attain goals Managerial Activities • Make decisions • Allocate resources • Direct activities of others to attain goals Managers (or administrators) Individuals who achieve goals through other people. 9
- 10. What Do Managers Do? Functional Approach Planning Organizing Leading Controlling 10
- 11. Management Functions (cont’d) Planning A process that includes defining goals, establishing strategy, and developing plans to coordinate activities. 11
- 12. Management Functions (cont’d) Organizing Determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made. 12
- 13. Management Functions (cont’d) Leading A function that includes motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts. 13
- 14. Management Functions (cont’d) Controlling Monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations. 14
- 15. Management Functions Planning Defining goals, establishing strategy, and developing subplans to coordinate activities Lead to Organizing Determining what needs to be done, how it will be done, and who is to do it Leading Directing and motivating all involved parties and resolving conflicts Controlling Monitoring activities to ensure that they are accomplished as planned Achieving the organization’s stated purpose 15
- 16. What Do Managers Do? (cont’d Mintzberg’s Management Roles Approach Interpersonal roles Figurehead, leader, liaison Informational roles Monitor, disseminator, spokesperson Decisional roles Entrepreneur, disturbance handler, resource allocator, negotiator 16
- 18. Mintzberg’s Managerial Roles (cont’d) 18
- 19. Mintzberg’s Managerial Roles (cont’d) 19
- 20. What Do Managers Do? (cont’d) Skills Approach Technical skills Human skills Conceptual skills 20
- 21. Management Skills Technical skills The ability to apply specialized knowledge or expertise. Human skills The ability to work with, understand, and motivate other people, both individually and in groups. Conceptual Skills The mental ability to analyze and diagnose complex situations. 21
- 22. Exhibit 1.4 Skills Needed at Different Management Levels Top Managers Middle Managers Lower-level Managers Importance Conceptual Skills Human Skills Technical Skills 22
- 23. What Is An Organization? An Organization Defined A deliberate arrangement of people to accomplish some specific purpose Common Characteristics of Organizations Have a distinct purpose (goal) Are composed of people Have a deliberate structure 23
- 24. Exhibit 1.6 The Changing Organization Traditional Stable Inflexible Job-focused Work is defined by job positions Individual-oriented Permanent jobs Command-oriented Managers always make decisions Rule-oriented Relatively homogeneous workforce Workdays defined as 9 to 5 Hierarchial relationships Work at organizational facility during specific hours New Organization Dynamic Flexible Skills-focused Work is defined in terms of tasks to be done Team-oriented Temporary jobs Involvement-oriented Employees participate in decision making Customer-oriented Diverse workforce Workdays have no time boundaries Lateral and networked relationships Work anywhere, anytime 24
- 25. Management: Definition Acc to Harold Koontz: Management is the art of getting things done through & with an formally organized group Acc to Henry Fayol: To manage is to forecast & plan, to organize, to co-ordinate and to control PODSCCRB: - Planning, Organizing, Directing, Staffing, Controlling, Co-ordinating, Reporting & Budgeting 25
- 26. Features of Management Art as well as Science Management is an activity Management is a continuous process Management achieving pre-determined objectives Organized activities Management as a system Management is a discipline 26
- 27. Features of Management Management is a distinct entity Management aims at maximising profit Management is a purposeful activity Management is a profession Universal application Management is getting things done Management is needed at all levels 27
- 28. Importance of Management Management meet the challenge of change Accomplishment of group goals Effective utilization of resources Effective functioning of business Resource Development Sound organization Structure Management directs the organization Integrates various interests Stability 28
- 29. Importance of Management Innovation Co-ordination and team-spirit Tackling problems A tool for Personality Development 29
- 30. ORGANISATION THEORIES The theories are crafted in view of the basic production being Replaced my mass production, to organize technology- information-manpower interface for proper coordination of Activities of large number of people and increased efficiency. Major theories are: 1. Classical Theory 2. Neo-Classical Theory 3. Modern Theory 30
- 31. a) Scientific Management b) Administrative Management c) Theory of Bureaucracy 1. CLASSIC THEORIES 31
- 32. a) Scientific management Introduced by F.W. Taylor in USA in the beginning of 20th century. He is called as the Father of Scientific Management Focus on improving the efficiency of the workers. 32
- 33. Principles of Scientific Management Task fragmentation Scientific Analysis of the jobs being done to select the best method of doing the task Standardization of tools and methods for production Scientific selection through specialization Financial Incentives and rewards Training Demarcation of responsibilities between management and workers 33
- 34. Limitations of scientific mangement 34 Mechanical approach considering worker an adjunct to machines Narrow specialization due to fragmentation of jobs Routinization of jobs leading to boredom, short job cycles, lack of autonomy hence worker distress More of a “SYSTEMATIC” approach than being scientific “Command and control” system “conception and planning” being separated from “execution” Wages not being increased in proportion of production Required to perform consistently at high level of efficiency
- 35. B. Administrative Management Henry Fayol (1841-1925), a french industrialist Given : Elements of Management- Planning, Organizing, Commanding, Co-ordination & Control Qualities of Manager: Physical, Mental, Moral, General Education, Special Knowledge & Experience Categories of operations: technical, commercial, financial, security, accounting, management Principles of Management 35
- 36. Principles of Management 1. Division of labour 2. Authority 3. Discipline 4. Unity of command 5. Unity of direction 6. Subordination of individual interest to common good 7. Remuneration 8. Centralisation 9. The hierarchy 10. Order 11. Equity 12. Stability on staff 13. Initiative 14. Esprit de corps 36
- 37. Principles by Luther gullick and Lyndall Urwick; an extension to Fayol 37 Fitting people to the organization structure Recognizing one top executive as the source of authority Adhering to the unity of command Using special and general staff Departmentalizing by purpose, process, persons and place Considering appropriate spans of control Delegating and utilising the exception principle Marking responsibility commensurate with authority
- 38. 38
- 39. Limitations of Admin. Mgmt principles 39 Behavioral, cultural and social components ignored No emphasis on variations in human response towards management processes like planning, directing and controlling Rational approach towards human factor
- 40. C. Bureaucracy Given by Max Weber, a German sociologist. Known as father of Bureaucracy Proposed that bureaucracy provides most efficient framework for designing business, government, military and other complex organisations 40
- 41. Principles Of Bureaucracy Division of labor based on functional specialization, individual specialization, task allocation according to competence Well defined hierarchy of authority Rational legal authority (rank/position) Traditional authority (monarch) Charismatic authority (mass appeal/ special powers) A system of procedures to deal with work situations System of record keeping A system of promotion and selection for employment based on technical competence Rational decision making based on fairness, justice and equity Adherence to norms, code of conduct ; consistency of actions Rules covering rights and duties of positional incumbents 41
- 42. Limitations of bureaucracy 42 1. Goal displacement (procedure vs. result) 2. Inadequate communication 3. Lack of effective coordination 4. Lack of system for conflict management 5. Red tapism (rules not applied uniformly) 6. Outdated notion of authority 7. Lack of opportunity for personal growth 8. Lack of innovativeness 9. Inadequate appreciation of organizational dynamics 10. Change resistant 11. Suboptimal utilization of manpower
- 43. 2. Neo-Classical Theory The Human Relations approach Behavioral science contributions 43 2. NEO-CLASSIC THEORIES
- 44. a. The Human Relations Movement Illumination Experiments (hawthorne experiments) by elton mayo Resulted in cnclusion that change in social conditions , motivation and supervision and NOT the working conditions were factors responsible for increase in production Role of informal work group Production determined more by social factors than aptitute or physiological factors 44
- 45. Principles of human relations school “social capacity” rather than “physical capacity” Psychological needs are prime movers Individual behavior is affected by feelings Orgnisation to be viewed both as techno economic as well as social system Critical role of informal work groups Workers act/react as members of groups and not mere individuals Informal leadership more emergent than formal leadership Necessacity of 2 way communication Integration between goals of organisation and individuals Managers developing social and technical skills45
- 46. B. Behavioral science contribution Stress on developing organisation as COOPERATIVE SYSTEM Group dynamics playing an important role More stress on interpersonal relationships “personality” and “behavior” : external situation factors and psychic inner causes 46
- 47. Assumptions about people: McGregor’s theory Theory X Average human being is lazy and deslikes work People like to be directed and lack ambition People have little capacity for creativity Most people are indifferent to organisation goals Motivation is always relatedto physiological needs (food, shelter etc) Theory Y Work is natual as play if conditions are favourable Self direction and control to serve the objectives Commitment to objectives and satisfaction of egoes Proper conditions are necessasary, shortcomings are not inherited Potential partially utilised under present ind. system47
- 48. Motivation and Job satisfaction Maslow’s theory: identification of 5 basic needs: 1. Physiological needs: hunger, thirst etc. 2. Safety needs: protection against danger, threat, deprivation etc 3. Love needs: belonging to groups, friendship, affection 4. Esteem needs: self respect, respect for others, ego and status needs 5. Self fullfillment and self actualisation: self development, creativity, satisfaction, realising owns potential 48
- 49. Immaturity maturity continuum (chris rgyris) IMMATURITY CHARACTERISTICS Passivity Dependence Few ways of behaving Shallow interests Short time perspectives Subordinate position Lack of self awareness MATURITY CHARACTERISTICS Activity Responsible independence Diverse behavior Deep interests Long time perspectives Super ordinate positions Self awareness and control 49
- 50. Other features of neo classical theory Need of a DECENTRALISED STRUCTURE DEMOCRATIZATION and PARTICIPATION 50
- 51. Modern Theory A. Quantitative Approach (Mgmt. science theory) B. Systems Approach C. Contingency Approach 51 3. MODERN THEORIES
- 52. A. QUANTITATIVE APPROACH Emerged after world war 2 Operation research: mathematical model building and other applications of quantitative techniques to managerial problems Operations management: quantitative technique to solve manufacturing problems.e.g. forecasting, linear and non linear programming, scheduling, simulation, break even analysis, computer aided design (CAD), Computer automated manufacturing (CAM), total quality management (TQM) Information technology: internet, intranet, decision support systems (DSS) 52
- 54. 54
- 55. SYSTEMS approach (cont..) An extension of the humanistic perspective that describes organisations as open systems that are characterised by entropy, synergy and subsystem interdependance. Open system: which interacts with the environment to survive Closed system: does not interacts with the external environment Entropy: tendency of a system to run down and die Synergy: concept that the whole is greater than the sum of its parts Subsystems: parts of the system that depend upon one another for their functioning 55
- 56. Organizations as an open system System and sub system Holism : whole is greater than arithmetic mean of its parts Importation of energy Conversion process (JIT, kaizen, (continuous improvement) TQM) Export of energy (value added products, services) Cyclic nature of activities Negative entropy: resistance to perish Self regulatory mechanisms Internal elaborations (strategizing, elaborating activities) Integrate: unity of actions and coordination Equifinality (reaching same final state from different initial conditions by variety of ways)56
- 57. C. Contingency theory An extension of the humanistic perspective in which the succesful resolution of organizational problems is thought to depend upon manager’s identification of key variations in the situation at hand. Universalistic view: there is one best way (either be leadership style, bureaucratic structure) The same concept is applicable to every another organization Case view: Every situation is unique Determining new methods/solution for every new situation or problem 57 Case view Universalistic view CONTINGENCY VIEW Organization phenomenon exist in logical patterns; management devise and apply similar responses to common types of problems
- 58. QUERIES ??? 58