management fundamentals introduction for engineers
- 1. Unit I Introduction to Management & Organization: Concepts of Management and organization- nature, importance Functions of Management Systems Approach to Management Taylor’s Scientific Management Theory Fayol’s Principles of Management Maslow’s theory of Hierarchy of Human Needs Douglas McGregor’s Theory X and Theory Y Hertzberg Two Factor Theory of Motivation Leadership Styles, Social responsibilities of Management Designing Organizational Structures Basic concepts related to Organization Departmentation and Decentralization, Types and Evaluation of mechanistic and organic structures of organization and suitability
- 2. Management Science • Management Science is concerned with developing and applying models and concepts that help to illuminate management issues and solve managerial problems. According to Peter. F. Drucker Management is concerned with the systematic organization of economic Resources and its task is to make these resources productive. “Management is knowing exactly what you want men to do and then seeing that they do it the best and cheapest ways”. -F.W.Taylor
- 3. Management vs. Administration BASIS FOR COMPARISON MANAGEMENT ADMINISTRATION Meaning An organized way of managing people and things of a business organization is called the Management The process of administering an organization by a group of people is known as the Administration. Authority Middle and Lower Level Top level Role Executive Decisive Concerned with Policy Implementation Policy Formulation Area of operation It works under administration. It has full control over the activities of the organization. Applicable to Profit making organizations, i.e. business organizations. Government offices, military, clubs, business enterprises, hospitals, religious and educational organizations Decides Who will do the work? And How What should be done? And
- 4. Contd.. BASIS FOR COMPARIS ON MANAGEMENT ADMINISTRATION Work Putting plans and policies into actions. Formulation of plans, framing policies and setting objectives Focus on Managing work Making best possible allocation of limited resources. Key person Manager Administrator Represents Employees, who work for remuneration Owners, who get a return on the capital invested by them. Function Executive and Governing Legislative and Determinative
- 5. Nature and Features 1. Management is a social process 2. It also denotes a ‘a body of people’ involved in decision making 3. It is inexact science 4. It is an art and also science 5. It is profession 6. It is inter-disciplinary 7. It is complex
- 6. Importance • It facilitates the achievements of goals through limited resources • It ensures smooth sailing in case of difficulties • It ensures continuing in the organization • It ensures economy and efficiency • It focus on group efforts • It is the key to the economic growth
- 7. Functions of Management P Planning O Organizing S Staffing D Directing Co Coordinating R Reporting B Budgeting
- 8. Systems Approach to Management systems approach to management is meant the study of a firm in its totality so that the men and material resources of the firm can be organized to realize the firm's overall objectives as efficiently as possible. Important features System approach considers the organisation as a dynamic and inter- related set of parts. It considers the impact of both near and distant future on organizational activities System approach integrates goals of different parts of the organisation (sub-systems or departments) with the organisation as a whole System approach enables organizations to frame policies that promote business objectives and social objectives.
- 9. Levels of Management 1. Top level / Administrative level 2. Middle level / Executory 3. Low level / Supervisory / Operative / First-line managers
- 10. F.W.Taylor Scientific management Father of Scientific Management – F.W Taylor Definition: Scientific management may be defined as the “Art of knowing exactly what is to be done and the best way of doing it”
- 11. Principles of Scientific Management • Development of Science for each part of men’s job (replacement of rule of thumb) • Scientific Selection, Training & Development of Workers • Co-operation between Management & workers or Harmony not discord • Division of Responsibility • Mental Revolution • Maximum Prosperity for Employer & Employees
- 12. Henry Fayol Principles Henry Fayol is called as father of Modern Management There are 14 Principles of Management described by Henry Fayol 1. Division of Work 2. Authority & Responsibility 3. Discipline 4. Unity of Command 5. Unity of Direction 6. Sub-Ordination of Individual Interest to General Interest 7. Remuneration 8. Centralization & De-Centralization
- 13. Contd.. 9. Scalar Chain 10. Order 11. Equity 12. Stability of Tenure 13. Initiative 14. Espirit De’ Corps
- 14. MOTIVATION THEORIES Maslow’s Hierarchy of Needs Theory
- 15. Douglas McGregor’s Theory X and Theory Y • According to McGregor, the perception of managers on the nature of individuals is based on various assumptions Theory X An average employee intrinsically does not like work and tries to escape it whenever possible. Since the employee does not want to work, he must be persuaded, compelled, or warned with punishment so as to achieve organizational goals. A close supervision is required on part of managers. The managers adopt a more dictatorial style. Many employees rank job security on top, and they have little or no aspiration/ ambition. Employees generally dislike responsibilities. Employees resist change. An average employee needs formal direction
- 16. Theory Y • Employees can perceive their job as relaxing and normal • Employees may not require only threat, external control and coercion to work, but they can use self- direction and self-control • If the job is rewarding and satisfying, then it will result in employees‟ loyalty and commitment to organization. • An average employee can learn to admit and recognize the responsibility. In fact, he can even learn to obtain responsibility. • The employees have skills and capabilities. Their logical capabilities should be fully utilized..
- 17. Hertzberg Two Factor Theory of Motivation Hygiene factors: Hygiene factors are also called as dissatisfiers or maintenance factors Hygiene factors are those job factors which are essential for existence of motivation at workplace Motivational factors • According to Herzberg, the hygiene factors cannot be regarded as motivators. The motivational factors yield positive satisfaction.
- 18. Leadership Styles • Leadership is a process by which an executive can direct, guide and influence the behavior and work of others towards accomplishment of specific goals in a given situation Leadership Styles • Autocratic leadership style • Democrative/Participative leadership style • Bureaucratic leadership style • The Laissez Faire Leadership Style
- 19. Social Responsibility of Management • Responsibility towards shareholders • Responsibility towards consumers • Responsibility towards employees • Responsibility towards creditors • Responsibility towards Government • Responsibility towards competitors • Responsibility towards public
- 20. Designing Organizational Structures • Organisation is the backbone of management because without an efficient organization no management can perform its functions smoothly. • Organisation is “the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority, and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives.” — Louis A. Allen
- 21. Type of organization: On the basis of authority relationships organization classified as follows 1. Line organization or Military organization or Scalar 2. Functional organization 3. Line and Staff organization 4. Project organization 5. Committee organization 6. Matrix organization
- 22. 1. Line organization Merits: Simplicity Discipline Coordination Effective Communication Economical Unity of Command Prompt Decisions Demerits Undue reliance Personal limitations Overload of work Dictatorial way Duplication of work Unsuitable for large concerns
- 24. Merits and Demerits Merits • Separation of work • Specialization • Narrow range with high depth • Ease in selection and training • Reduction in prime cost • Scope of growth and development of business Demerits Indiscipline Kills the initiative of workers Overlapping of authority Lack of co-ordination between functions
- 25. Line and Staff Organization “Line” means - Operating “Staff” means - Service
- 26. Merits • Planned specialization • Quality decisions • Less wastage • Training ground for personnel Demerits • Chances of Misinterpretation • Ineffective Staff in the absence of authority • Expensive • Loss of initiative by line executives
- 27. Project Organization Merits: 1. This calls for quick divisions 2. Organizing all functional 3. Proper coordination of work of different departments Demerits: 1. It tends to increase the problems of control for top management 2. It is special case of product organization 3. The organization may get disintegrated with increasing focus on departments
- 29. Merits: 1. It pools up the organizational resources in terms of knowledge skills and experiences. 2. It represents all interested groups and thus, facilitates group decision. 3. It yields good results if the committee are headed by taskmaster like chairman and time bound in terms of decision- making. 4. It minimizes the fear of too much authority vested in one person 5. It motivates all the concerned or effected groups to participate. Demerits: 1. Responsibility of decisions cannot be fixed on a particular person. 2. It calls for high degree of coordination. 3. It involved high cost in terms of time and money. Contd..
- 31. Merits: 1. It offers operational freedom and flexibility 2. It seeks to optimize the utilization of resources 3. It focuses on results 4. It maintains professional identity 5. It holds employees responsible for management of resources Demerits: 1. It calls for greater degree of coordination 2. It violates unity of command principle 3. It may be difficult to define authority and responsibility precisely 4. Employees may find it frustrating to work with two bosses Contd..
- 32. MODERN TRENDS IN ORGANISATIONAL STRUCTURE DESIGNS • Virtual Organisation • Cellular Organization • Boundary less Organization
- 33. Departmentation The process of dividing the work and then grouping them into units and submits or departments for the purpose of administration. Decentralization Decentralization is referred to as a form of an organisational structure where there is the delegation of authority by the top management to the middle and lower levels of management in an organisation.
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