What is Management ?

1. What is Management ? “The planning, organizing, leading, and controlling of human and other resources to achieve organizationalgoals effectively and efficiently” “Management is a set of activities directed at an organization’s resources with the aim of achieving organizational goals in an efficient and effective manner”

2. What is Management ? Approaches to Management • Process approach • Quantitative approach • System approach • Contingency approach • Human relation approach • Behavioral approach

3. What is Management ? Approaches to Management • Up to the 20th century (premodern era) • Adam smith’s contribution to the field of management • Industrial revolution’s influence on management practices • In the early 20th century • Scientific management • General administrative theory • The human resources approach • The quantitative approach • From the later 20th century to the present • The process approach • The systems approach • The contingency approach

4. What is Management ? Approaches to Management Universal Approach / Process Approach / Administrative Approach • Universal Process Approach – Henry Fayol • Fayol published Administration Industrielle et Générale in 1916. • Fayol divided the manager’s job into five functions • Developed 14 universal principles of management. • Assumes all organizations require the same rational management process and core management process remains the same regardless of the purpose of the organization, therefore, the management process can be reduce to a set of separate functions and related principles.

5. What is Management ? Approaches to Management Universal Approach / Process Approach / Administrative Approach Henri Fayol’s Five Universal Functions (also called processes ) of Management • Planning • Organizing • Command • Coordination • Control

6. What is Management ? Approaches to Management Universal Approach / Process Approach / Administrative Approach Fayol’s 14 Principles of Management • Division of Work • Authority • Discipline • Unity of Command • Unity of Direction • Subordination of Individual Interests to the General Interest • Remuneration • Centralization • 9. Scalar Chain • 10. Order • 11. Equity • 12. Stability of Tenure of Personnel • 13. Initiative • 14. Esprit de corps

7. What is Management ? Approaches to Management Universal Approach / Process Approach / Administrative Approach Division of work: Specialization allows the individual to build up experience, and to continuously improve his skills. Thereby he can be more productive. Authority: The right to issue commands, along with which must go the balanced responsibility for its function. Discipline: Employees must obey, but this is two-sided: employees will only obey orders if management play their part by providing good leadership.

8. What is Management ? Approaches to Management Universal Approach / Process Approach / Administrative Approach Unity of Command: Each worker should have only one boss with no other conflicting lines of command. Unity of Direction: People engaged in the same kind of activities must have the same objectives in a single plan. This is essential to ensure unity and coordination in the enterprise. Unity of command does not exist without unity of direction but does not necessarily flows from it. Subordination of individual interest: Management must see that the goals of the firms are always paramount.

9. What is Management ? Approaches to Management Universal Approach / Process Approach / Administrative Approach Remuneration: Payment is an important motivator although by analyzing a number of possibilities, Fayol points out that there is no such thing as a perfect system Centralisation: This is a matter of degree depending on the condition of the business and the quality of its personnel. Scalar chain-Line of authority: A hierarchy is necessary for unity of direction. But lateral communication is also fundamental, as long as superiors know that such communication is taking place. Scalar chain refers to the number of levels in the hierarchy from the ultimate authority to the lowest level in the organization. It should not be over-stretched and consist of too-many levels

10. What is Management ? Approaches to Management Universal Approach / Process Approach / Administrative Approach Order : Both material order and social order are necessary. The former minimizes lost time and useless handling of materials. The latter is achieved through organization and selection. Equity: In running a business a ‘combination of kindliness and justice’ is needed. Treating employees well is important to achieve equity. Stability of tenure of personnel: Employees work better if job security and career progress are assured to them. An insecure tenure and a high rate of employee turnover will affect the organization adversely.

11. What is Management ? Approaches to Management Universal Approach / Process Approach / Administrative Approach Initiative : Allowing all personnel to show their initiative in some way is a source of strength for the organization. Even though it may well involve a sacrifice of ‘personal vanity’ on the part of many managers. Esprit de corps: Management must foster the morale of its employees. He further suggests that: “real talent is needed to coordinate effort, encourage keenness, use each person’s abilities, and reward each one’s merit without arousing possible jealousies and disturbing harmonious relations.”

12. What is Management ? Approaches to Management Universal Approach / Process Approach / Administrative Approach • Universal Process Approach – Bureaucracy - Max Weber • Weber developed a theory of authority structures and described organizational activity on the basis of authority relations. • He described an ideal type of organization that he called a bureaucracy, characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships.

13. What is Management ? Approaches to Management Universal Approach / Process Approach / Administrative Approach Universal Process Approach – Bureaucracy - Max Weber Grounds of legitimate authority Charismatic leadership: Leader has special power within him which lead to centralized decision making and less delegation of authority. such phenomena leads to sometimes irrational Traditional or patriarchal leadership: In this kind of phenomena authority is due to inheritance as like family business. bureaucracy: under this phenomena organization is divided into functional units then authority is given to carry the functions which leads to bureaucracy under which leadership comes from a legal channel

14. What is Management ? Approaches to Management Universal Approach / Process Approach / Administrative Approach Universal Process Approach – Bureaucracy - Max Weber • Principles of bureaucracy • Hierarchy • Division of Labor • Impersonal nature • Professional nature of employment • Rationality • Uniformity • Technical competence • Stability

15. What is Management ? Approaches to Management Universal Approach / Process Approach / Administrative Approach Universal Process Approach – Bureaucracy - Max Weber Hierarchy: Under this concept each lower office is under the control and supervision of the higher officer. Division of labor: Bureaucracy requires high degree of specialization of labor which requires employment on the basis of ability not loyalty with someone. Impersonal nature: Bureaucracy requires the organization to follow a formal pattern and standing operating procedures to perform a job keeping an impersonal environment in organization Professional nature of employment: Bureaucracy requires the organization engage skilled individuals and give them rewards, authority and promotion according to their position

16. What is Management ? Approaches to Management Universal Approach / Process Approach / Administrative Approach Universal Process Approach – Bureaucracy - Max Weber Rationality: Bureaucracy requires the organization to classify the organizational areas according to functions rationally. Within each function then authority and performance measures are defined Uniformity: Bureaucracy requires uniform performance and reward throughout all units Technical competence: Bureaucracy requires engagement of specialist Stability: Bureaucracy requires individuals to remain for longer periods based on performance

17. What is Management ? Approaches to Management Quantitative /Scientific Approach • Started in late 1800’s and early 1900’s. Frederic Taylor was the founder of scientific management • The quantitative approach to management, sometimes referred to as operations research (OR) or management science. It includes applications of statistics, optimization models, information models, and computer simulations, linear programming, and so on, which can be used to solve management problems. • Scientific management: “that kind of management which conducts a business or affairs by standards established by facts or truths gained through systematic observation, experiment, or reasoning.”

18. What is Management ? Approaches to Management Quantitative /Scientific Approach • Describes the production-oriented area of management dedicated to improving efficiency, cutting waste, and improving quality. • Covers the technical and quantitative approaches to management : • Management science • Operations research • Production management • Operations management • Frederick W. Taylor’s Scientific Management found: • Standardization of work practices and methods reduce waste and increase productivity • Time and task study of workers’ efforts to maximize productivity and output. • Systematic selection and training of workers to increase efficiency and productivity. • Differential pay incentives based on established work standards.

19. What is Management ? Approaches to Management Quantitative /Scientific Approach • Frank and Lillian Gilbreth: • Refined time and motion study methods for use in work simplification. • Henry L. Gant: • Refined production control and cost control techniques. • Developed the Gantt chart for work-scheduling of projects. • Early advocate of the importance of the human factor and the importance of customer service over profits. • Walter A. Shewhart • Introduced the concept of statistical quality control.

20. What is Management ? Approaches to Management Quantitative /Scientific Approach Taylor’s four principles of scientific management The development of true science of work: Develop a scientific way for each element of an individual’s work. The scientific selection and progressive development of workmen: Scientifically select and then train, teach, and develop the worker in order to get the best results. The bringing together of the science and the scientifically selected and trained men: This require the identification and application of technique to use the trained manpower for generating the maximum out put with minimum input to get maximum productivity The constant and intimate cooperation between the workers: The relation between the employer /manager and workers is the most important part. This requires to divide work and responsibility almost equally between managers and workers. Managers take over all work for which it is better fitted than the workers.

21. What is Management ? Approaches to Management System Approach • Chester I. Barnard’s presented the Early Systems Perspective (Book Fcts. Of Executive) • A collection of parts that operate interdependently to achieve a common purpose. • The system approach defines a system as a set of interrelated and interdependent parts arranged in a manner that produces a unified whole. Societies are systems and so, too, are computers, automobiles, organizations, and animal and human bodies. • Defined principle elements in an organization as • willingness to serve. • common purpose. • communication.

22. What is Management ? Approaches to Management System Approach • Levels of systems • Each system is a subsystem of the system above it. • Identification of systems at various levels helps translate abstract systems theory into more concrete terms. • Closed system • A self-sufficient entity. • It the system which is isolated and no environmental influence can effect it and it does not effect any thing in environment Shut off from its environment

23. Input Transformation Output Feedback - stakeholders What is Management ? Approaches to Management System Approach • Open system • Something that depends on its surrounding environment for survival. • An organization is a system that interacts with and depends upon its environment. • Organization’s stakeholders: any group that is affected by organizational decisions and policies. The manager’s job is to coordinate all stakeholders to achieve the organization’s goals. • Organizational survival often depends on successful interactions with the external environment.

24. Input Transformation Output Feedback - stakeholders What is Management ? Approaches to Management System Approach • Open system • Stakeholders • suppliers • Employees • Investor • Customers • Society • Lenders • Outputs • Goods and services • Money • Information • Environmental effects • Social • Inputs • Material • Labor • Money • 7information • Tangible assets

25. What is Management ? Approaches to Management System Approach • Open system • Every system as subs systems which interact with each and differentiated on the basis of: • Boundary spanning: those systems which direct interact with systems • Other systems can indirectly deal • Function • Space • Time • People • Formality • Automation

26. What is Management ? Approaches to Management Contingency approach • Contingency approach is an effort to determine through research which managerial practices and techniques are appropriate in what situation. • Contingency approach is similar to systems approach except management scholars realized it is impossible to understand everything in system so they propose to just study major contingencies of system. • A research effort to determine which managerial practices and techniques are appropriate in specific situations. • Different situations require different managerial responses. • Can deal with intercultural feelings in which custom and habits cannot be taken for granted.

27. What is Management ? Approaches to Management Contingency approach • Contingency Characteristics • An open-system perspective • How subsystems combine to interact with outside systems. • A practical research orientation • Translating research findings into tools and situational refinements for more effective management. • A multivariate approach • Many variables collectively account for variations in performance. • Requirements of contingency approach • Identification and handling of particular situation • Responsiveness to changing variables in environment

28. What is Management ? Approaches to Management Human Relations approach • The approach focuses in on organized activity that is related to how people behave as individuals and work groups. (soc, psch, soc-psy, mgmt) • Human Relations Movement - developed to make working better for workers - less destructive, more motivating, and more satisfying • The Threat of Unionization : The Wagner Act of 1935 legalized union-management collective bargaining, promoting the growth of unions and union avoidance by firms. • The Hawthorne Studies (1924) :The study’s results that productivity was strongly affected by workers’ attitudes turned management toward the humanistic and realistic viewpoint of the “social man” model. • Elton Mayo: Believed emotional factors were more important determinants of productive efficiency than were physical and logical factors. • Mary Parker Follett: Advocated that managers become aware of how complex each employee is and how to motivate employees to cooperate rather than to demand performance from them.

29. What is Management ? Approaches to Management Human Relations approach

30. What is Management ? Approaches to Management Behavioural approach to management • Traditional approach – Human relations • Economic security • Working conditions • Monetary rewards • Contemporary approach - Behavioral approach • Researching human behaviours • Managing people in light of behaviours • Increasing emphasis on use of human skills in addition to conceptual and technical skills

31. What is Management ? Approaches to Management Behavioural approach to management • Attempts to provide specific necessary background skills needed to make managers of today and tomorrow as effective with the conceptual and humans dimension of management as they been in past with technical or functional dimensions • Emphasis is on developing the ability to understand, alter, lead, and control the behavior of other individuals and groups.

32. What is organizational behavior ? Study of human behavior in organization setting Organizational behaviour attempts to provide background and skills to deal with human dimension of management Understanding, prediction and management of human behaviour in organization setting (Luthans) “The study of individual behavior and group dynamics in organizations” (Luthans)

33. What is organizational behavior ? Theoretical frameworks and organizational behavior model Cognitive framework • Cognition is a logical thinking that creates “expectancy” that a particular event will lead to a particular consequence • Based on expectancy an individual behaves in a certain manner on happening of certain event • Therefore behavior is explained through cognition and this makes cognitive framework the part of organizational behavior e.g. how managers makes decision and behave

34. What is organizational behavior ? Theoretical frameworks and organizational behavior model Behaviouristic framework • Behaviouristicapproach is environmental based and take input from environment • The approach is based on observation • Stimulus response phenomena i.e. a stimulus generates a response is the basics of this approach also called as classical school • Skinner (father of operant conditioning school) explained that stimulus response helps to explain the physical reflexes but there exits operant conditioning • Operant conditioning stands that consequences of response infect explains the most behaviors as compared to stimuli. It means expected results of some input directs an individual to behave in certain way instead of expected reaction in response to an action • Therefore is behavior is function of its consequences

35. What is organizational behavior ? Theoretical frameworks and organizational behavior model Social learning framework • Social learning approach is a behavioral approach but combination of cognitive and Behavioural framework. • According to Bandura, behavior can be best explained in terms of continues reciprocal interaction among cognitive, behavioral and environmental determinants • According to Bandura, personality is shaped by an interaction among cognitive factors, behaviors and environmental factors. This interaction is termed reciprocal determinism.

36. What is organizational behavior ? Theoretical frameworks and organizational behavior model Social learning framework – Organizational behaviour model • Cognitive approach – understanding the human behavior • Behavioural approach – predicting and managing human behavior • Cognitive approach – internal factors • Behavioral approach – external factor

37. Questions ?

38. Thank You