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Management- Introduction

Management- Introduction. By:- Ranjana Singh Assistant Professor of Mgmt UWSL. Evolution of Management Concept. Adam Smith :- In his book of “The Wealth of the Nations (1776) he suggested Division of Labour ” Classical Approaches:-

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Management- Introduction

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  1. Management- Introduction By:- Ranjana Singh Assistant Professor of Mgmt UWSL

  2. Evolution of Management Concept • Adam Smith :- In his book of “The Wealth of the Nations (1776) he suggested Division of Labour” • Classical Approaches:- 1. Scientific Management- (F.W.Taylor; H.L Gantt, Frank Gilberth, Lillian Gilberth) 2. Theory of Bureaucracy-Max Weber 3. Administrative Management- Henri Fayol • Neo-Classical Approaches:- 1. Hawthorne Studies and Human Relations Movement 2. Behavioral Approach

  3. Evolution of Management Concept • Modern Approach:- 1. Quantitative Management (Mathematical Techniques) 2. Systems Approach 3. Contingency Approach

  4. Frederick W Taylor (1856-1915) • F.W Taylor- Founder of Scientific Management Movement. • Four principles to increase efficiency in the workplace:- 1. Determine one best way to do the job 2. Select the best persons for the job 3. Train the best person on most efficient method of perform inperforming the task. 4. Provide sufficient monetary incentives

  5. Criticism to Scientific Management • Emphasizes only on muscular tasks at floor level and neglects the areas of problem solving & decision-making, which are of key importance at other managerial levels. • Only Economic incentives are not enough to motivate workers for increased production. • Time and motion study is not entirely scientific. • Tends to create monotony(because of doing the same task every time) and confusion(because of getting orders from multiple foremen) in work culture.

  6. Fayols 14 Management Principles • Division of Labor • Authority and Responsibility • Discipline • Unity of Command • Unity of direction • Centralization • Subordination of individual interests to the general interests • Remuneration • Scalar chain • Order • Equity • Stability of tenure of personnel • Initiative • Esprit de corps

  7. Criticism to Fayol’s Administrative Principles • Division of labor creates dissatisfaction among the employees because each individual carries out his assigned part as something apart from the overall purpose of the organization as a whole. • Simons criticism on contradictory principles like Division of Labour (Principle of Specialization) and Unity of Command. • Principles are mere work of case studies and hardly empirically proven. E.g. Dale found considerable variation in span of control of Chief Executive as against 6 given by Urwick.

  8. Continued… • These principles are often stated as unconditional statements of what ought to be done in all circumstances when what is needed are conditional principles of management. E.g. as per study conducted by Burns & Stalker, in Authority & Responsibility can’t be explicit in technologically turbulent environment. • These principles are based on the assumption that organizations are closed systems.

  9. Max Weber’s Theory of Bureaucracy • Max Weber, a German sociologist is known as Father of Bureaucracy. • Identified 3 basic types of administration prevailing business and government organizations:- 1. Leader oriented 2. Tradition oriented 3. Bureaucratic

  10. Theory of Bureaucracy-Features • There is insistence on following Standard rules. • There is Systematic Division of Work. • Principle of Hierarchy is followed. • It is necessary for the individual to have knowledge and training in the application of rules. • Administrative Acts, Decisions and Rules are Recorded in Writing. • There is Rational Personnel Administration.

  11. Limitations of Bureaucracy • Overconformity to rules • Buck-passing • Trained incapacity • Displacement of goals (E.g. Development of “Professional Automation” in the organizational culture) • No real right of appeal • Neglect of informal groups • Rigid structure • Inability to satisfy the needs of mature individuals

  12. Neo-Classical Approacha) Human Relations Movement • Basically based on the Hawthorne Experiments conducted by Prof. Elton Mayo • At Western Electric Company, Illinois from 1927 to 1932. • Study was conducted in following four parts:- • Illumination Experiments • Relay Assembly Test Room • Interviewing Programme • Bank Wiring Test Room.

  13. Limitations of Human Relations Movement • As much incomplete as the Scientific Management and Administrative Management Approaches. • For organizations to satisfy everybody in the system is not possible. • Over-emphasizes the importance of symbolic rewards and underplays the role of material rewards. • Provides an unrealistic picture about informal groups. • This approach is in fact production oriented and not employee-oriented as it claim to be. • This approach is based on a wrong assumption that satisfied workers are more productive. • This approach makes an unrealistic demand on superior to give up his power.

  14. Outline:- • Definition of Management • Characteristics of Management • Objectives of Management • Significance of Management • Functions of Management • Process of Management • Levels of Management • Managers Role

  15. Definitions:- • Production or efficiency oriented:- “Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way” ~ Taylor • People-oriented:- “Art of getting things done through people”. ~ Mary Follett “Management is the art of getting things done through and with people in formally organized groups”. ~ Harold Koontz • Function-Oriented:- “To manage is to forecast and to plan, to organize, to command, to co-ordinate and to control”. ~ Henri Fayol • Decision-oriented:- “Management is simply the process of decision making and control over the action of human beings for the expressed purpose of attaining pre-determined goals.” ~ Stanley Vance

  16. Characteristics of Management:- • Management is an integrating process • Management is a universal process • Management is a group activity • Management is goal oriented • Management is a dynamic process • Management is a social process • Management is intangible • Management is art, science and profession • Management is irreplaceable • Management is based on certain principles • Management is multi-disciplinary

  17. Objectives of Management:- • Two levels management objectives are:- 1. Micro level – The Enterprise Level • Maximum result with minimum inputs • Ensuring maximum prosperity for both – Employers and Employees 2. Macro level – The Society Level • To contribute to economic growth • To Ensure high standard of living • To generate employment opportunities • To maintain healthy industrial relations • To convert challenges into opportunities

  18. Nature of ManagementSource: Robert Kreitner, Management, Houghton Mifflin, Boston, 2007

  19. Importance/Significance of Management:- • Optimum utilization of resources • Leadership and motivation • Initiative and innovation • Minimizes wastage • Industrial peace • Builds competitive strength • Improves Standard of Living • Growth, Expansion and Diversification • Social Consciousness

  20. Functional Areas of Management:- • Production Management / Operations Management • Marketing Management • Human Resource Management • Financial Management • Administrative Management • Other Functions

  21. Levels of Management:-

  22. Top management’s role • NaveenJindal acquired control over the ailing Raigarh plant of the Jindal group when his father, Om PrakashJindal, arranged an amicable four-way split of his business empire between his four sons in 1998. • NaveenJindal's remarkable turnaround of the Raigarh sponge iron mill through a backward integration strategy led JSPL to cheaply acquire access to valuable raw materials such as coal and iron ore at a time when competitors were paying much less attention to these inputs. • This strategy insulated JSPL from price volatility in commodity markets, thus bringing down production costs and boosting profitability.

  23. Upper /Top Management:- 1. Set Objectives 2. Scan Environment 3. Plan and make decisions • Middle Management 1. Report to top management 2. Oversee first line managers 3. Receive general strategies/policies from top managers 4. Translate the strategies into specific goals for first line mgrs • Lower Management/First-line Managers 1. Directly Responsible for the Production of Goods/Services 2. Ensures the work team meet performance objectives 3. Need strong technical expertise for day to day operations.

  24. The Role of Managers. By Prof Henry Mintberg

  25. Liaison in Management

  26. Changes influencing Management • Global warming and Environmentalism • Internet and e-business • Technological change • Changing workforce demographic change • Ethical awakening and social innovation • Globalization and Intense competition • Restructuring of Organizational Structure

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