Unit 1 overview of management
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The document provides an overview of management principles including: - Defining management as the process of planning, organizing, leading, and controlling organizational resources to efficiently achieve goals. - Describing the four functions of management as planning, organizing, leading, and controlling. - Explaining the different levels of management as top-level, middle-level, and lower-level/supervisory management.
Unit 1 overview of management
- 3. Organization Two or more people who work together in a structured way to achieve a specific goal or set of goals. Goals The purpose toward which an effort is directed. Organizations often have more than one goals, goals are fundamental elements of organization. The Role of Management To guide the organizations towards goal accomplishment
- 4. Management Management is the process of designing and maintaining an environment in which individuals working together in groups, efficiently accomplish selected aims. The planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently
- 5. Resources include People Money Time Work Procedures Materials Equipment
- 6. Organizational Performance Efficiency Effectiveness A measure of how well or how productively resources are used to achieve a goal A measure of the appropriateness of the goals an organization is pursuing and the degree to which they are achieved. It is defined as the output to input ratio and focuses on getting the maximum output with minimum resources. It constantly measures if the actual output meets the desired output. efficiency is all about focusing on the process effectiveness focuses on achieving the ‘end’ goal. efficiency is about doing things right, it demands documentation and repetition of the same steps. Doing the same thing again and again in the same manner will certainly discourage innovation. effectiveness encourages innovation as it demands people to think, the different ways they can meet the desired goal. Organizations have to be both effective and efficient in order to be successful.
- 7. Components of Management Organisational activity – Management is a group activity Goal formation – management has some defined goals Organisational survival - manager has to use resources available to them efficiently for the survival of resources Implementation – polices and programmes are implemented by management
- 8. Nature of management Management is multidisciplinary in nature It draws ideas and concepts from various disciplines Management is a continuous process Management is a universal activity It applicable to political, social, religious & educational institutions Management is a science as well as art Management is dynamic and not stable It has to adopt itself according to social changes
- 9. Nature of management Management is a profession It involve specialized training and is governed by ethical code arising out of its social obligation Management is a group activity It concerned with group efforts and not individual efforts Management aims at obtaining wealthy results Rational utilization of available resources to maximize the profit is the economic function of a manager
- 10. Management implies skill and experience in getting things done through people Management is a system of authority Management formalises a standard set of rules and procedures to be followed by the subordinates and ensures their compliance with the rules and regulations Management is intangible It cannot seen by eyes. It is evidenced only by the quality of the organisation and the results Management implies good leadership A manager must have the ability to lead and get the desired course of action from the subordinates
- 11. Scope of management 1) Functional areas of management I. Financial management – forecasting, cost control, budgetary control, financial planning etc., II. Human resource management – recruitment, training, transfers, promotions, retirement, termination, remuneration, labour welfare etc., III. Marketing management – marketing of goods, sales promotion, advertisement and publicity, channel of distribution etc., IV. Production management – production planning, quality control and inspection, production techniques etc.,
- 12. Cont., V. Material management – purchase of material, issue of material, storage of materials, maintenance of records etc., VI. Purchasing management – inviting quotations, placing order, entering in to contract etc., VII. Maintenance management – proper care and maintenance of buildings, plants, machinery etc., VIII. Office management – office layout, office staffing & equipment of the office
- 13. Cont., 2) Subject matter of management Planning, organizing, staffing, directing and controlling 3) Management is an inter disciplinary approach Study of commerce, economics, sociology, psychology etc., 4) Principles of management – universal applications 5) Management is an agent of change The techniques of management can be improved by proper R &D 6) The essentials of management Scientific method, human relations and quantitative techniques.
- 14. Four Functions of Management
- 15. Planning involves tasks that must be performed to attain organizational goals, outlining how the tasks must be performed, and indicating when they should be performed.
- 16. 1.Planning Determining organizational goals and means to reach them Managers plan for three reasons 1. Establish an overall direction for the organization’s future 2. Identify and commit resources to achieving goals 3. Decide which tasks must be done to reach those goals
- 17. Organizing means assigning the planned tasks to various individuals or groups within the organization and creating a mechanism to put plans into action.
- 18. 2. Organising Process of deciding where decisions will be made, who will perform what jobs and tasks, and who will report to whom in the company Includes creating departments and job descriptions
- 19. Leading (Influencing) means guiding the activities of the organization members in appropriate directions. Objective is to improve productivity.
- 20. 3. Leading or Directing Getting others to perform the necessary tasks by motivating them to achieve the organization’s goals Crucial element in all functions
- 21. Steps involved in controlling 1. Gather information that measures recent performance 2. Compare present performance to pre-established standards 3. Determine modifications to meet pre-established standards Controlling is the Process by which a person, group, or organization consciously monitors performance and takes corrective action
- 22. Difference between administration and management Administration Management It is higher level function It refers to the owners of the organisation It is concerned with decision making It act through the management Administration lays down broad policies and principles for guidance It is lower level function It refers to the employees It is concerned with execution of decision It act through the organisation Management executes these policies into practice
- 23. Levels of Management Top Level Management Middle Level Management Low level or Supervisory Management Non Management Employees
- 24. Management Levels and Functional Areas
- 25. Top level management President, Managing Director, Chief operating officer, chief executive officer or chairman of the board The main function of top management are To formulate goals and policy To formulate budgets To appoint top executive To provide overall direction and leadership of the company To decide the distribution of profits etc.,
- 26. Middle level management Department head, project leader, plant manager or division manager The main function of middle level manager are: To monitor and control the operating performance of the sub units To train, motivate and develop supervisory level Implement changes or strategies generated by top manager To coordinate among themselves so as to integrate the various activities of a department
- 27. Lower level or supervisory management They are directly responsible for the work of operating employees. The main function of lower level of management : To train and develop the efficiency of the workers To assign jobs to workers To give order and instructions To maintain discipline and good human relations among workers To report feedback information about workers
- 28. What Is a Manager’s Responsibility? Manager The individual responsible for achieving organizational objectives through efficient and effective utilization of resources. The Manager’s Resources Human, financial, physical, and informational Performance Means of evaluating how effectively and efficiently managers use resources to achieve objectives.
- 29. Role of manager Interpersonal roles Informational roles Decision roles
- 30. 1-30 Interpersonal Roles Roles that managers assume to provide direction and supervision to both employees and the organization as a whole. Figurehead— performing ceremonial and symbolic duties, such as greeting visitors and signing legal documents. Leader— Motivate, training, counsel and communicating with subordinate. Liaison—linking and coordinating the activities of people and groups both inside and outside the organization.
- 31. 1-31 Informational Roles Roles involve receiving, collecting and disseminating information. Monitor—analyzing information from both the internal and external environment. Disseminator—transmitting information to influence the attitudes and behavior of employees. Spokesperson—using information to positively influence the way people in and out of the organization respond to it.
- 32. 1-32 Decisional Roles Roles associated with making choices. Entrepreneur—deciding which new projects or programs to initiate and to invest resources in. Disturbance handler—managing an unexpected event or crisis. Resource allocator—assigning resources between functions and divisions, setting the budgets of lower managers. Negotiator—reaching agreements between other managers, unions, customers, or shareholders.
- 33. Types of Managers General Managers Supervise the activities of several departments. Functional Managers Supervise the activities of related tasks. Common functional areas: Marketing/Sales/Product Development Operations/Production/Services Delivery Finance/Accounting Human Resources/personnel management Infrastructure (IT, Real Estate, Legal) Project Managers Coordinate employees across several functional departments to accomplish a specific task.
- 34. 1-34 Managerial Skills Conceptual skills The ability to analyze and diagnose a situation and distinguish between cause and effect. This skill also called as design and problem solving skill. Human skills It is mainly concerned with understanding of people. The ability to understand, alter, lead, and control the behavior of other individuals and groups. Technical skills Job-specific skills required to perform a particular type of work or occupation at a high level.
- 35. Management Level and Skills
- 36. Evolution of Management Thought Pre-scientific or pre classical management period Classical theory 1. Scientific management 2. Administrative management 3. Bureaucratic Model Neo-classical Theory or Behavior Theory Modern approach 1. System approach 2. Contingency approach
- 37. Pre-scientific or pre classical management period 1.Robert owen (1771-1858) 2.Charles Babbage (1792-1871) 3. Henry Robinson Towne (1844-1924)
- 38. 1.Robert owen (1771-1858) He is owner of a group of textile mills in Scotland. He is the promoter of co-operative and trade union movement in England. He believed that the worker performance in industry was influenced by the working condition and treatment of workers. He introduced new ideas of human relation, such as shorter working hours, housing facilities, training of workers in hygiene, education of their children, provision of canteen etc., He came to be regarded as the father of personal management.
- 39. Charles Babbage (1792-1871) He is father of modern computing. He was a professor of Mathematics at Cambridge university. He found that manufacturers made a little use of science and mathematics. He advocated the use of accurate observation, measurement and precise knowledge for taking business decisions. His idea anticipated the concept of profit sharing to improve the productivity
- 40. 3. Henry Robinson Towne (1844-1924) He was the president of famous lock manufacturing company “Yale and Town” He advised the combination of engineer and economist as industrial managers. in addition to some skill as accountant, is essential for successful management of industrial workers.
- 41. Classical Management Perspective This theory developed during the industrial revolution when new problem related to the factory system. Manager s were unsure of how to train employees or deal with increased labour dissatisfaction Scientific management theory Administrative management theory Bureaucratic management theory
- 42. Scientific Management Concerned with improving the performance of individual workers (i.e., efficiency). Grew out of the industrial revolution’s labor shortage at the beginning of the twentieth century. The major contributors are Frederick W.Taylor Henry Gnatt Frank Gilbreths and Lillian Gillbreths
- 43. Frederick W.Taylor He was the father of scientific management, served with Bethlehem steel plant. He tried to analyses the causes of low efficiency He pioneered the time and motion study where by Work task is broken into its various motion, is improved by eliminating unnecessary motions
- 44. Frederick W.Taylor approach was based on four basic principles: Study each part of the task scientifically and develop the best method to perform it. Carefully select workers and train them Co-operate fully with the workers to ensure they use the proper method Divide work and responsibility
- 45. Elements of scientific management Planning the task Supervisor should do the planning Workers only concentrate on doing the work Scientific task and rate setting (work study) Method study, motion study, time study, fatigue study and rate setting Scientific selection and training Workers should be selected scientifically by a central personnel department A worker should be physically and technically most suitable for the selected post After selection worker should be given proper training which makes them more efficient and effective
- 46. Standardization Standards must be maintained in respect of the equipments and tools, materials, period of work, amount of work, working condition, cost of production etc., Specialization Route clerk, Instruction card clerk, time and cost clerk, shop disciplinarian, Gang boss, speed boss, repair boss and Inspector Financial incentives It can motivate the workers to put up their maximum efforts Wages should be based on individual performance
- 47. Economy Scientific management enhances profit and economy It can be achieved by making the resources more productive as well as eliminating the wastages Mental revolution Scientific management is based on cooperation between management and workers Cooperation enhances the effective managerial activities
- 48. Henry Gantt (1861-1919) He developed Gantt chart, a bar graph that measures planned and completed work along each stage of production His interest include a unique pay incentive system and the social responsibility. unique pay incentive system was aimed at providing extra wages for extra work besides guarantee of minimum wages
- 49. Frank Gilbreths and Lillian Gillbreths In frank’s early career as an apprentice bricklayer He was interested in standardization and method study He noticed that some workers were slow and inefficient, while others were more productive. He isolated the basic movements necessary to do the job and eliminated unnecessary motions. Workers using these movements raised their output from 1000 to 2700 per day.
- 50. Administrative Management Scientific management focused on the productivity of individuals. Administrative Management theory concentrate on developing organizational structure that leads to high efficiency and effectiveness. Henry fayol is French mining engineer, identified 14 principles based on his experience He is also called as father of modern theory of general and industrial management.
- 51. Administrative management theory Henri Fayol (1841-1925) Fourteen principles: Division of work Authority and responsibility Discipline Unity of command Unity of direction Subordination of the individual interest to the general interest Remuneration Centralization Scalar chain Order Equity Stability Initiative Espirit de corps (team spirit)
- 52. Bureaucratic management theory Max Weber (1864–1920) His theory of bureaucracy is based on a rational set of guidelines for structuring organizations. Three types of authority 1. Traditional –Subordinate obedience based upon custom or tradition (e.g., Kings, queens, chiefs) 2. Charismatic – subordinate obedient based on special personal qualities (e.g. Gandhi, N.S.C.Bose, Martin Luther king) 3. Rational –legal- subordinate obedient based upon the position held by superior (Executive, supervisor etc.,)
- 53. Bureaucratic management theory based on following characteristics A well defined hierarchy Division of labour and specialization System of written rules and regulation Impersonal relationships between mangers and employees Selection and evaluation system Records
- 54. Neo-classical Theory or Behavior Theory This theory pointed out the role of psychology and sociology in understanding of individual and group behavior in an organization The contributors are Mary Parker Follett Elton mayo Hawthorne studies Abraham Maslow
- 55. Elements of behavioral The individual – it allows labour to participate in decision making and problem solving primarily increase productivity Work group – it recognizes the vital effect of group psychology and behavior on motivation on productivity Participate management - focuses its attention on the worker and its employee oriented
- 56. Mary Parker Follett (1868-1933) She felt that mangers needed to coordinate and harmonize group effort rather than force and compel them. She identified the principle of ‘power with’ rather than ‘power over’ Finding a solution to a conflict that would satisfy both parties.
- 57. Hawthorne studies One series of studies was conducted from 1924 to 1932 at the western Electric company in chicago. 1. Illumination experiments 2. Relay assembly test room experiments 3. Bank wiring test room experiments 4. Mass interview programme
- 58. Physical Needs Need for Security Need for Social Relations Need for Self Esteem Self-Actualization Maslow’s Hierarchy of Needs
- 59. Comparing Theories Classical Behavioral Management Science Systems Theory Attempts to develop the best way to manage in all organizations by focusing on the jobs and structure of the firm. Attempts to develop a single best way to manage in all organizations by focusing on people and making them productive. Recommends using math (computers) to aid in problem solving and decision making. Manages by focusing on the organization as a whole and the interrelationship of its departments, rather than on individual parts. Sociotechnical Theory Recommends focusing on the integration of people and technology. Contingency Theory Recommends using the theory or the combination of theories that best meets the given situation.
- 60. Organization and environmental factors Internal environmental factors Suppliers Customers competitors
- 61. Organization and environmental factors External environmental factors Technology Economic conditions Political factors Socio cultural factors
- 62. Trends and challenges of management in global scenario 1. Workforce diversity 2. Changing employee expectation 3. International environmental 4. Building organizational capabilities 5. Job design and organizational structure 6. Changing psycho-social system 7. Technological advance 8. Management of human relations 9. Change in legal environment 10. Expanding globalization