Unit a (1)
- 1. Management for Engineers Module-I By Neeti Saxena Assistant Professor 1
- 2. Questions for the Session Who Are Managers? • Explain how manager differ from non-managerial employees. • Discuss how to classify managers in organizations. What Is Management? • Define management. • Contrast efficiency and effectiveness. • Explain why efficiency and effectiveness are important to management. 2
- 3. Questions What Do Managers Do? • Describe the four functions of management. • Explain Mintzberg’s managerial roles. • Describe Katz’s three essential managerial skills and how the importance of these skills changes depending on managerial level. • Discuss the changes that are impacting managers’ jobs. • Explain why customer service and innovation are important to the manager’s job. 3
- 4. Questions What Is An Organization? • Describe the characteristics of an organization. • Explain how the concept of an organization is changing. Why Study Management? • Explain the universality of management concept. • Discuss why an understanding of management is important even if you don’t plan to be a manager. • Describe the rewards and challenges of being a manager. 4
- 5. What Is An Organization? An Organization Defined A deliberate arrangement of people to accomplish some specific purpose Common Characteristics of Organizations 5
- 7. Why Study Management ? 7
- 8. Managerial Skills at different levels 8 Managerial Skills Professor Robert L. Katz has popularized the concept of "Managerial Skills" Technical skills: Lower Level Human skills: Middle Level Conceptual skills: Top Level 5 more skills can be stated : 1. Design skills 2. Administrative skills 3. Decision Making skills 4. Communication skills 5. Leadership skills
- 9. Managerial Skills 9 Managerial Skills Professor Robert L. Katz has popularized the concept of "Managerial Skills" which was earlier developed by Henri Fayol. Technical skills Human skills Conceptual skills 5 more skills can be stated : 1. Design skills 2. Administrative skills 3. Decision Making skills 4. Communication skills 5. Leadership skills
- 10. What is Management ? The process of achieving the objectives of the business organization by bringing together human, physical, and financial resources in an optimum combination and making the best decision for the organization while taking into consideration its operating environment. 10
- 11. What is Management ? It is…. A Discipline - Accumulated body of knowledge that can be learned Human Activity - managing the most important asset of an organisation ie People Process – involving certain functions and activities. 11
- 12. Thus Management is …. Management is the Process of “getting things done through the efforts of others”,getting from where we are to where we want to be with the least expenditure of time,money and efforts. Coordinating individual and group efforts towards superordinate goals. 12
- 13. Who Are Managers? Manager Someone who works with and through other people by coordinating and integrating their work activities in order to accomplish organizational goals. Classification First-line Managers Are at the lowest level of management and manage the work of non-managerial 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. 13
- 14. Luther Gullick has given a keyword ’POSDCORB’ where P stands for Planning, O for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for reporting & B for Budgeting. But the most widely accepted are functions of management given by KOONTZ and O’DONNEL i.e. Planning, Organizing, Staffing, Directing and Controlling What do Managers Do ?
- 15. What do Managers Do ? Functional Approach Planning Defining goals, establishing strategies to achieve goals, developing plans to integrate and coordinate activities. Organizing Arranging work to accomplish organizational goals. Staffing Recruitment of right person for the right job. Directing Working with and through people to accomplish goals. Controlling Monitoring, comparing, and correcting the work. 15
- 17. What do Managers do ? Efficiency “Doing things right” Getting the most output for the least inputs Effectiveness “Doing the right things” Attaining organizational goals 17
- 18. Management Skills and Management Function Matrix 18
- 19. What Roles do Managers Play ? Management Roles Approach Interpersonal roles Figurehead, leader, liaison Informational roles Monitor, disseminator, spokesperson Decisional roles Disturbance handler, resource allocator, negotiator 19
- 20. Mintzberg’s 10 Managerial Roles INTERPERSONAL Figurehead Performs ceremonial and symbolic duties such as greeting visitors, signing legal documents Leader Direct and motivate subordinates, training, counseling, and communicating with subordinates Liaison Maintain information links both inside and outside organizaion; use mail, phone calls, meetings INFORMATIONAL Monitor Seek and receive information, scan periodicals and reports, maintain personal contacts Disseminator Forward information to other organization members; send memos and reports, make phone calls Spokesperson Transmit information to outsiders through speeches, reports, memos; represent departmental interests 20
- 21. Mintzberg’s 10 Managerial Roles DECISIONAL Entrepreneur Initiate improvement projects, identify new ideas, delegate idea responsibility to others Disturbance Handler Take corrective action during disputes or crises; resolve conflicts among subordinates; adapt to environmental crises Resource Allocator Decide who gets resources, scheduling, budgeting, setting priorities Negotiator Represent department during negotiation of union contracts, sales, purchases, budgets 21
- 22. How The Manager’s Job Is Changing The Increasing Importance of Customers Customers: the reason that organizations exist Managing customer relationships is the responsibility of all managers and employees. Consistent high quality customer service is essential for survival. Innovation Doing things differently, exploring new territory, and taking risks Managers should encourage employees to be aware of and act on opportunities for innovation. 22
- 23. Changes Impacting the Manager’s Job 23
- 24. Forces Influencing Organizations and Management Social Forces - values, needs, and standards of behavior Political Forces - influence of political and legal institutions on people & organizations Economic Forces - forces that affect the availability, production, & distribution of a society’s resources among competing users 24
- 25. Scientific Management 25 Fredrick Winslow Taylor – ( 1856-1915 )The “father” of scientific management. Published Principles of Scientific Management (1911) . The theory of scientific management •Using scientific methods to define the “one best way” for a job to be done. •Putting the right person on the job with the correct tools and equipment. •Having a standardized method of doing the job. •Providing an economic incentive to the worker.
- 26. Scientific Management 4 principles 1. Develop a science for each element of an individual’s work, which will replace the old rule-of-thumb method. 2. Scientifically select and then train, teach, and develop the worker. 3. Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed. 4. Divide work and responsibility almost equally between management and workers. 26
- 27. Scientific Management Employers to pay more productive workers higher rate than others. Using a “scientifically correct “rate that would benefit both the company and workers. Thus the workers were urged to surpass their previous performance standards to earn more pay Taylor called his plane the differential rate system. 27
- 28. Scientific Management Contributions Demonstrated the importance of compensation for performance. Initiated the careful study of tasks and jobs. Demonstrated the importance of personnel and their training. Criticisms Did not appreciate social context of work and higher needs of workers. Did not acknowledge variance among individuals. Tended to regard workers as uninformed and ignored their ideas 28
- 29. Limitations of Scientific Management Theory Although Taylor's method led to dramatic increase in productivity and higher pay in number of instance , Workers and unions began to oppose his approach because they feared that working harder or faster would exhaust whatever work was available Causing layoffs. Taylors system clearly meant that time was of the essence . – His critics objected to the speed up condition that placed undue pressure on employees to perform at faster and faster levels. – The emphasis on productivity and by extension profitability led some managers to exploit both the workers and customers. – As a result more workers joined unions and thus reinforced a pattern of suspicious and mistrust that shaded labor relations for decades. 29
- 30. 30 Administrative Principles Contributors: Henri Fayol, Mary Parker, and Chester I. Barnard Focus: Organization rather than the individual Described the management functions of planning, organizing, commanding, coordinating, and controlling
- 31. Administrative Principles Henry Fayol (1841-1925) : Divided the manager’s job into five functions: Planning, organizing, staffing, commanding, coordination, and control. Developed 14 universal principles of management. Fayol divided general and industrial management into following six groups 1. Technical activities (production, manufacture, adaptation). 2. Commercial activities (buying, selling and exchange). 3. Financial activities (search for and optimum use of capital). 4. Security activities (protection of property and persons). 5. Accounting activities (stock taking, balance sheet, cost, and statistics). 6. Managerial activities (planning, organising, command, coordination and control) 31
- 32. 32 Henri Fayol 1841-1925 Division of labor Authority Discipline Unity of command Unity of direction Subordination of individual interest Remuneration Centralization Scalar chain Order Equity Stability and tenure of staff Initiative Esprit de corps 14 General Principles of Management
- 33. Fayol’s Contribution He gave overall concepts of general management and suggested the basic functions of management. He recommended the selection and training of workers and managers. He also advocated the use of organisation charts. He suggested certain qualities of manager’s winch include physical, mental, moral, educational technical and experience. Fayol’s theory of management was the first complete theory of management as we understand today. It incorporated proven principles, elements, procedures and techniques based on his practical experience. Henry Fayol came to be recognised as the founder of modern management theory. 33
- 34. Elton Mayo and Hawthorne Studies Elton Mayo : Believed emotional factors were more important determinants of productive efficiency than were physical and logical factors. Conducted the Hawthorne Experiments : Demonstrated the importance of understanding how the feelings, thoughts, and behavior of work-group members and managers affect performance 34
- 35. Hawthorne Studies The Hawthorne studies were carried out by the Western Electric company at their Hawthorne plant in the 1920's. Ten year study 1924 - Chicago Research focus: Relation of quality and quantity of illumination to efficiency in industry Four Important Studies o Illumination study o Relay assembly test room study o Interviewing program o Bank wiring room observation study 35
- 36. The Hawthorne Studies Illumination Study (November 1924) Designed to test the effect of lighting intensity on worker productivity , Experiment indicated that Productivity increased when studies were on and slumped when the study got over as workers were motivated due to the interest shown by management . The mere practice of observing people’s behavior tends to alter their behavior and is called (Hawthorne Effect) This formed the basis of the Further Experiments done by Mayo . 36
- 37. Relay Assembly Test Room Study (1927-1932) Assembly of telephone relays (35 parts - 4 machine screws) Researchers spent five years measuring how different variables impacted the group's and individuals' productivity. Some of the variables were: • changing the pay rules so that the group was paid for overall group production, not individual production • giving two 5-minute breaks (after a discussion with them on the best length of time), and then changing to two 10-minute breaks (not their preference). Productivity increased, but when they received six 5-minute rests, they disliked it and reduced output. • providing food during the breaks • shortening the day by 30 minutes (output went up); shortening it more (output per hour went up, but overall output decreased); returning to the first condition (where output peaked). 37
- 38. Relay Room Experiment Production and satisfaction increased regardless of IV manipulation (payrate , break interval , meals , hours of work ) Workers’ increased production and satisfaction related to supervisory practices Human interrelationships are important contributing factors to worker productivity Bottom Line: Supervisory practices increase employee morale AND productivity • What Really Increased the Productivity? • choosing one's own coworkers, working as a group, being treated as special (as evidenced by working in a separate room), and having a sympathetic supervisor were the real reasons for the productivity increase 38
- 39. Relay Room Experiment Women in the Relay Assembly Test Room, ca. 1930 Western Electric Company Hawthorne Studies Collection © 2007 President and Fellows of Harvard College; all rights reserved. 39
- 40. Interviewing Program (1928-1930) Investigate connection between supervisory practices and employee morale The results proved that upward communication in an organisation creates a positive attitude in the work environment. The workers feel pleased that their ideas are being heard. 40
- 41. Bank Wiring Experiment The purpose of the next study was to find out how payment incentives would affect productivity. The surprising result was that productivity actually decreased, because the men were afraid that the company would lower the base rate and had a clear idea of a fair day’s work . Workers apparently had become suspicious that their productivity may have been boosted to justify firing some of the workers Done on group of fourteen men who put together telephone switching equipment. There was existence of informal groups or "cliques" within the formal groups. These cliques developed informal rules of behavior as well as mechanisms to enforce them. The cliques served to control group members and to manage bosses; when bosses asked questions, clique members gave the same responses, even if they were untrue. 41
- 42. Bank Wiring Experiment 42 What Really reduced the productivity ? Workers were more responsive to the social force of their peer groups than to the control and incentives of management. Conclusion: Social groups can influence production and individual work behavior. Informal organization constrains employee behavior within formal organizational structure
- 43. Implications of Hawthorne Studies Illumination Study (November 1924) The mere practice of observing people’s behavior tends to alter their behavior (Hawthorne Effect) Relay Assembly Test Room Study (1927-1932) Relationships between workers and their supervisors are powerful Human interrelationships / informal group increase the amount and quality of worker participation in decision making Interviewing Program (1928-1930) Demonstrated powerful influence of upward communication Workers were asked for opinions, told they mattered, and positive attitudes toward company increased Bank Wiring Room Observation Study (November 1931 - May 1932) Led future theorists to account for the existence of informal communication Taken together, these studies helped to document the powerful nature of social relations in the workplace and moved managers more toward the interpersonal aspects of organizing. 43
- 44. Important Aspects of the behavioral science approach Communication Employee development Leadership Employee motivation Organization as social system
- 45. ASSUMPTIONS OF BEHAVIORAL SCIENCE APPPROACH • Organisations are socio-technical systems. The management must integrate both the systems. • Work and interpersonal behaviour of people in the organisation is influenced by many factors. • Employees are motivated not only by physiological needs but also by social and psychological needs. • Different people have different perceptions, attitudes, needs and values. These differences must be found out and recognised by management. • In an organisation conflicts are unavoidable. • Personal goals and Organisational goals must be joined together.
- 46. 46 Management Science Perspective : MODERN THEORY ● Systems Theory ● Contingency Theory
- 47. Emerged after WW II Applied mathematics, statistics, and other quantitative techniques to managerial problems Operations Research – mathematical modeling Operations Management – specializes in physical production of goods or services Information Technology – reflected in management information systems 47 Why did modern theory emerge?
- 49. The meaning of SYSTEM Taken from a greek word which means to bring together or to combine. Father of systems approach: Ludvig von Bertalanffy. According to Ludvig Von Bertalanffy, “In order to understand an organized whole, we must know both the parts as well as relations between them.”
- 50. Classification OF SYSTEMS Open systems: an open system actively interacts with its environment. By interacting with other systems, it tries to establish exchange relationships. Close systems: It is self contained and isolated from the environment. It is a non adaptive system. It does not receive inputs from other systems and does not trade with the outside world.
- 51. ELEMENTS OF SYSTEMS MANAGEMENTThe systems management theory has had a significant effect on management science. A system is an interrelated set of elements functioning as a whole. It has subsystems which have synergy between them. Each subsystem has its defined boundaries. An organization as a system is composed of four elements: • Inputs — material or human resources • Transformation processes — technological and managerial processes • Outputs — products or services • Feedback — reactions from the environment
- 52. Open system view of an organization INPUTS • Raw material • Human resource • Capital • Technology • Information TRANSFORMATION PROCESS • Employees’ work activities • Management activities • Technology and operations methods OUTPUTS • Production and services • Financial results • Human results • Information SYSTEM FEEDBACK ENVIRONMENT
- 53. CONTRIBUTIONS OF THIS APPROACH TO MANAGEMENT Under systems approach, managers have a good view of the organisation. It gives importance to interdependence of the different parts of an organisation and its environment. It foretastes consequences and plans actions. Systems thinking warns managers against adopting piecemeal approach to the problem-solving.
- 55. Meaning of contingency view (Also known as situational view) It emphasizes that there is no best way to manage. It is an “it all depends” approach. The appropriate management actions and approaches depend on the situation. Managers with a contingency view use a flexible approach, draw on a variety of theories and experiences, and evaluate many options as they solve problems. It tries to identify the best technique that will be effective in a particular situation at a particular time. This attempts to integrate all the management approaches.
- 56. Features of contingency approachCONTINGENCY MANAGEMENT RECOGNIZES THAT THERE IS NO ONE BEST WAY TO MANAGE • In the contingency perspective, managers are faced with the task of determining which managerial approach is likely to be most effective in a given situation. • Contingency thinking avoids the classical “one best way” arguments and recognizes the need to understand situational differences and respond appropriately to them. • Contingency theory is a recognition of the extreme importance of individual manager performance in any given situation. • The contingency approach is highly dependent on the experience and judgment of the manager in a given organizational environment.
- 57. The Contingency Approach Contingency Approach Defined • Also sometimes called the situational approach. • There is no one universally applicable set of management principles (rules) by which to manage organizations. • Organizations are individually different, face different situations (contingency variables), and require different ways of managing. Popular Contingency Variables • Organization size • Routineness of task technology • Environmental uncertainty • Individual differences
- 58. 58 Contingency View of Management Successful resolution of organizational problems is thought to depend on managers’ identification of key variations in the situation at hand
- 59. RELATIONSHIP between systems and contingency approaches Contingency management school has emerged out of systems management school. The contingency theorists have accepted the basic tenets of system management school. They accept the basic features of organizational environment relationship and dynamic nature of organization. Since the system approach is too abstract to apply certain modifications can be made and then applied for managerial action. The systems approach may specify situations under which an organization can function, whereas, the contingency approach can specify the processes by which the organization may try to adapt its environment.
Editor's Notes
- #9: Technical skills Knowledge and proficiency in a specific field Human skills The ability to work well with other people Conceptual skills The ability to think and conceptualize about abstract and complex situations concerning the organization
- #10: Technical skills Knowledge and proficiency in a specific field Human skills The ability to work well with other people Conceptual skills The ability to think and conceptualize about abstract and complex situations concerning the organization
- #11: Management is a subject with principles , concepts and theories . People make the management of an organisation by engaging in various process : eg : Great Leaders , coo’s , Managers , executive body , employees etc managing People to achieve organisation’s objective. Functions in terms of Planning , Organising , Leading , Controlling in order to achieve the vision/mission . Career : Sequence of activities, jobs, organizations and challenges constitute a career .
- #12: Management is a subject with principles , concepts and theories . People make the management of an organisation by engaging in various process : eg : Great Leaders , coo’s , Managers , executive body , employees etc managing People to achieve organisation’s objective. Functions in terms of Planning , Organising , Leading , Controlling in order to achieve the vision/mission . Career : Sequence of activities, jobs, organizations and challenges constitute a career .
- #17: For doing these functions managers need Skills .
- #25: 24
- #30: Contributions Demonstrated the importance of compensation for performance. Initiated the careful study of tasks and jobs. Demonstrated the importance of personnel and their training. Criticisms Did not appreciate social context of work and higher needs of workers. Did not acknowledge variance among individuals. Tended to regard workers as uninformed and ignored their ideas
- #32: In America early focus was worker productivity; in France, the focus was organization and its administration by engineer Henri Fayol, director of Comambault, the French mining company. B. 1918, Industrial and General Administration - translated into English in 1930's to impact US management in Classical organization theory. C. "Fourteen principles” of organization identified general rules that successful organizations ought to follow: Division of work – work and tasks should be perform by people specialized in the work and similar tasks should be organized as a unit or department. Authority – delegated persons ought to have the right to give orders and expect that they be followed. Discipline – workers should be obedient and respectful of the organization Unity of command – employees should receive orders from only one person with authority Unity of direction – the organization and employees are dedicated to one plan of action or set of objectives. Subordination of individual interests to the general interest – organizational conflict should be limited by the dominance of one objective. Remuneration – although Fayol provides no guidance on pay, the organization must recognize the economic value of employees and that their economic interests are important. Centralization – whether an organization should be centralized or decentralized depends upon such factors as communications and the importance of who should make the decision. Scalar chain – authority in an organization moves in a continuous chain of command from top to bottom. Order – everything, people and resources, has a place that it belongs. Equity – fairness is important in management-employee relations Stability of tenure of personnel – turnover is disruptive; shared experience is important Initiative – Workers are exhorted to be productive and motivated. Esprit de corps – there is a need for harmony and unity within the organization
- #36: Mayo’s HAWTHORNE STUDIES
- #50: 1. It is a set of inter related parts which work together to achieve certain goals.
- #57: 1. For example, the approach used to manage a group of teenagers working in a fast‐food restaurant would be very different from the approach used to manage a medical research team trying to find a cure for a disease.
- #60: 1. They accept the basic features of organizational environment relationship and dynamic nature of organization.