Introduction to

Management
 Management
Definitions
The attainment of organizational goals in an effective and efficient manner
through planning, organizing, directing and controlling organizational
resources.

Management is the art of getting things done through and with the people in
formally organized groups. – Harold Koontz

Management is the process of planning, organizing, leading and controlling

the efforts of organization members and of using all other organizational
resources to achieve stated organizational goals. – Henri Fayol

Management is a multi-purpose organ that manages business and manages

managers and manages workers and work. - Peter F. Drucker
 Management is
Management is Management is
intangible in
goal-oriented universal
nature

Management is
Management is Management is
a system
social process group activity
Characteristics of authority

Management Management is
Management is Management is
a science as well
an activity dynamic
as an art

Management is
multidisciplinary
 Managerial
Roles,
Functions and
Skills
 Roles by
Mintzberg
Focuses on how managers
perform their work???
 Divided into three different roles
focusing on working pattern of
Interperson manager wherein they interact with
other people/ working with other
al Roles people
 Who is a
figurehead??
You might have seen Mr. Modi had come to vadodara to attend a rally or
meet of Divyang / Specially able people. He was a figurehead at that time.
When he went to Nawaz Sharif’s Son’s wedding

He might attend the common wealth games or Olympics if hosted by India

and give inspirational speech to the sportsmen and women.
On a less grand scale, if you are a department head giving a motivational
speech at a quarterly sales meeting, you are acting as a figurehead.
Examples; greeting visiting dignitaries, attending an employee's wedding,
taking an important customer to lunch.
A figurehead also provides inspiration by sharing the mission and vision of
the organization and symbolizing authority.
A. P. J. Abdul Kalam Indira Gandhi Mother Teresa
Leader Role
• While 'leader' is a generic term and the most widely
examined of the ten roles, Mintzberg specifically
defines the leader managerial role as the act of
directing goals and evaluating employee
performance.
• Mentoring, training, and motivating employees are
all leadership activities. If you were to develop a new
employee orientation program, you would be acting
as a leader.
 • Managers must communicate with internal and external
contacts. You need to be able to network effectively on
behalf of your organization.
• Maintains a self-developed network of outside contacts and
informers who provide favours and information.

• You’ll be the key person who builds relationships with

department representatives, vendors and clients.
Liaison Role • This means representing your department in meetings, but
it also means reaching out to others individually, greeting
visiting clients or taking them on tours of the facilities or
out to dinner.
• You’ll put your fabulous communication and relationship
management skills to work in this important interpersonal
role.
 Divided into three
Informational different
Roles communication-
based roles
Monitor
Seeks and receives a wide variety of special information (much of it current) to
develop a thorough understanding of the organization and environment; emerges
as the nerve centre of internal and external information for the organization.

Tracking changes in the field that your organization works in, as well as changes on
your team that might be signs of trouble down the road.

Things are never static in business, so the successful manager is one who will
constantly monitor the situation around them and make quick changes as
necessary.
 Disseminator
Transmits information received from outsiders or from
other subordinates to members of the organization.

Some information is factual; some

involves interpretation and integration
of diverse value positions of organizational influences.

Disseminating what is of value, and how, is a critical

informational role.
 Transmits information (plans,
policies, results, etc.) within and
outside of the organization;
serves as an expert on the
organization's industry.

Spokesperson
 Decisional
Roles
Four action-based roles for
making and implementing decisions
 Entrepreneur
• Searches the organization and its
environment and initiates
improvement projects to bring about
change; supervises design of certain
projects as well.
• Innovation
• New ideas
• Creative thinking
Reed Hastings Ratan Tata Elon Musk
01 02 03
Steve Jobs of Apple Computers Managers wearing the Entrepreneurs drive process
created an innovative culture entrepreneurial hat are chief improvements, creatively
where new versions of existing change makers in their area of spark new ideas, solve
products were revised and responsibility, whether it is problems and make innovation
improved upon even as avid throughout the entire happen.
customers lined up around the organization or in one
corner for the product launch. department.
Disturbance
Handler
 Resource Allocator

Resources can include budget

Allocates the organization's that has been made available
resources; makes or approves for a project, raw materials,
of all significant employees, and more.
organizational decisions.
 Represents the organization
Negotiator at major negotiations.
Managerial Functions
MANAGERIAL SKILLS
Principles of Management
 To increase efficiency

To crystallize the nature of management

Why
management
principles? To improve research in management

To attain social goals

 • Principles of management are general
guidelines, which can be used for
conduct in workplaces under certain
situations. It also helps managers to
take and implement thoughtful
What are the decisions.
Principles of • The following are the main importance
of the Principles of Management:
Management?
• Improves Understanding.
• Direction for Training of Managers.
• Role of Management
 INTRODUCTION TO
MANAGEMENT THEORIES
 Basic Management
thoughts/approaches
• Classical Approach
• Behavioral Approach
• Modern Approach
Classical Approach Means….???

• Classical approach is the oldest formal school of thought which began around
1900 and continued into the 1920s.
• Its mainly concerned with the increasing the efficiency of workers and
organizations based on management practices, which were an outcome of
careful observation.
• Classical approach mainly looks for the universal principles of operation in the
striving for economic efficiency.
• Classical approach includes scientific, administrative & bureaucratic
management.
Classical Approach Means….???

Employees have only

“Classical approach of
economical and physical
management professes the
needs and that the social
body of management
needs & need for job
thought based on the
satisfaction either does not
belief that
exist or are unimportant.
Branches of Classical Theory

Bureaucracy

Classical Scientific
School Management

Administrative
Theory
Birth of Bureaucracy

• During 1800’s, European Organization were managed on a personal,

family-like basis.

• Employees loyal towards a single individual.

• Resources used to realize individual desires.

• Weber envisioned Organization would be managed on an impersonal,

rational basis. This form of Organization is known as Bureaucracy.
 Division of
Managers labour
Management
subject to rules & ownership is
& procedures separate

The Ideal
Bureaucracy
Positions Decisions
organised in recorded in
hierarchy writing
Selection based on
technical
qualification
 SCIENTIFIC
MANAGEMENT
FEDRICK WINSLOW
TAYLOR(1856-1915)
Father of Scientific
Management

“One best way for doing the job”

 Scientific management was a theory of
management that analyzes and
synthesizes workflows, with the
objective of improving labor
productivity
Definition
Management of a business, industry,
or economy, according to principles of
efficiency derived from experiments in
methods of work and production,
especially from time-and-motion
studies- (mass noun)
In 1898, Taylor joined Bethlehem Steel.

Taylor was a Mechanical Engineer who sought to

improve industrial efficiency.

Working in the steel industry, Taylor had observed

the phenomenon of workers' purposely operating
well below their capacity, that is, soldiering. He
attributed soldiering to three causes:
The almost universally held belief among workers that if
they became more productive, fewer of them would be
needed and jobs would be eliminated.

Employees take great care never to work at a good pace for

fear that this faster pace would become the new standard.
If employees are paid by the quantity they produce, they
fear that management will decrease their per-unit pay if
the quantity increases.
Workers waste much of their effort by relying on rule-of-
thumb methods rather than on optimal work methods
that can be determined by scientific study of the task.
 Taylor insisted that management itself would have to
change and further, that the manner of change could be
determined only by scientific study.

Hence, term ‘Scientific Management’ evolved.

Taylor suggested that decisions based on rules of thumb

and tradition be replaced with precise procedures
developed after careful study of individual situations
The following are examples of some of the time-and-
motion studies that were performed by Taylor.
1.Pig Iron

If workers were moving 12 1/2 tons By first conducting experiments to

of pig iron per day and they could determine the amount of resting
be incentivized to try to move 47 that was necessary, the worker's
1/2 tons per day, left to their own manager could determine the
wits they probably would become optimal timing of lifting and resting
exhausted after a few hours and fail so that the worker could move the
to reach their goal. 47 1/2 tons per day without tiring.
 While these 1/8 were not
extraordinary people who were highly
Not all workers were physically prized by society, their physical
capable of moving 47 1/2 tons per capabilities were well-suited to
day; perhaps only 1/8 of the pig iron moving pig iron. This example
handlers were capable of doing so. suggests that workers should be
selected according to how well they
are suited for a particular job.
2.The Science of Shoveling

The theory focused on reducing unproductive movements in the workplace to minimize time
wastage and heighten productivity.

Taylor ran time studies to determine that the optimal weight that a worker should lift in a shovel
was 21 pounds. As a result, he directed the organization to provide all the workers with the same
size shovel. He also provided pay incentives for workers who could shovel more coal.

The firm provided the workers with optimal shovels. Before scientific management, workers used
shovels and rarely had the optimal one for the job. The result was a three to four-fold increase in
productivity and workers were rewarded with pay increases. Taylor realized that the operation at
the company would be more efficient if workers had better shovels.
The main things Taylor noticed for inefficiency

The lack of standard

tools or techniques

There is no match
between skill and job

No motivation from the

management
 Taylor's 4
Principles of
Scientific
Management
Replace rule-of-thumb work methods with methods based on a scientific study of the
tasks.

Scientifically select, train, and develop each worker rather than passively leaving them to
train themselves.

Cooperate with the workers to ensure that the scientifically developed methods are being
followed.

Divide work nearly equally between managers and workers, so that the managers apply
scientific management principles to planning the work and the workers actually perform
the tasks.
Criticism

Did not appreciate the 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 for suggestions
Followers of Taylor

FRANK B GILBRETH
& LILLIAN M
GILBRETH
Frank B Gilbreth (1868-1924)
pioneered time and motion study and
arrived at many of his management
techniques independently of Taylor .

He stressed efficiency and was known

for his quest for “one best way” to do
work.

His work had great impact on medical

surgery by drastically reducing the time
patients spent on operating table.

He invented a device – ‘MICRO

CHRONOMETER’ in order to record
workers movement and the amount of
time spend to do a job
Experiments

Gilbreth performed experiments that focused on specific motions, such as

bricklaying experiments that resulted in a dramatic decrease in the number of
motions required to lay bricks. The husband-and-wife Gilbreth team used
motion picture technology to study the motions of the workers in some of
their experiments.
 Time & Motion Studies
Taylor & Gilbreth argued that even the most basic, mindless tasks could
be planned in a way that dramatically would increase productivity, and
that scientific management of the work was more effective than the
"initiative and incentive" method of motivating workers.

To scientifically determine the optimal way to perform a job, Taylor

performed experiments that he called time studies, (also known as
time and motion studies).

He use stop watches to measure the workers efficiency

 Implementation

Frederick Taylor’s scientific management techniques were

expanded by automaker Henry Ford

Replaced workers with machines for heavy lifting and moving

Applied to total car assembly, Improving efficiency and reducing

worker-hours required to produce a model T ford to less than two
Drawbacks of Scientific Management
While scientific management principles improved
productivity and had a substantial impact on industry, they
also increased the monotony of work
While in many cases the new ways of working were accepted
by the workers, in some cases they were not.

The use of stopwatches often was a protested issue and led

to a strike at one factory where "Taylorism" was being tested.

Complaints that Taylorism was dehumanizing led to an

investigation by the United States Congress.
Administrative Theory

Henri Fayol(1841-1925)

Father of modern management theory

• French mining engineer and a management theorist.
• Started as an engineer at a mining company and became Director in
1888.
• Viewed management as a profession that can be trained and developed.
• First one to analyze the functions of management.
 Made three major contributions to the theory
of Management:

Cont.. (A) A clear distinction b/w technical &

managerial skills
(B) Identified functions constituting the
management process
(C) Developed principles of management.
Activities of an industrial enterprise can be
grouped in to six categories: technical,
commercial, financial, security, accounting &
managerial.
(B) Fayol described management as a scientific process built up of five
immutable elements:
Planning, Organizing, Commanding, Coordinating, Controlling
model's image
 Functions of
Management
1. Planning –process of activities required
to meet a goal.
2. Organizing – making orderly determination &
arrangement of a task.
3. Commanding(Directing) – involves guiding,
supervising, motivating & leading people for
attainment of the time-oriented tasks.
4. Coordinating- bringing together the elements
5. Controlling- having control over all of the
aspects that contribute to meeting the goal.
Henry Fayol’s 14 Principles of Management

Unity of Unity of
Division of work Authority Discipline
command direction

Subordination
of individual
Remuneration Centralization Scalar chain Order
interest to the
general interest

Stability and
Equity tenure of Initiative Esprit de crops
personnel
Neo-Classical Theory of
Management (Human
Relation Theory)
 HAWTHORNE EXPERIMENT
Conducted between 1924-1932
Conducted at WESTERN ELECTRIC COMPANY, Chicago, USA
Conducted by,
Elton Mayo
White Head
Roethlisberger
 INTRODUCTION

The Hawthorne studies were conducted to find out the role of

human resource in increasing the production of an organization.

Importance of man behind the machine , recognized the

importance of individual as well as group performance.

The Hawthorne studies included the following experiments..

• Illumination Experiment
• Relay Assembly Test Experiments
• Plant Interview Group
• Bank Wiring Observation Group
Western Electric Company

Gray and Barton, a telephone industry supply company founded

in 1869 by Elisha Gray and Enos Barton

In 1872, the company changed its name to the Western Electric

Manufacturing Company

In 1881, when the annual sales had already grown to nearly $1

million, the firm was purchased by the American Bell Telephone
Company, it was renamed the Western Electric Company and
became Bells manufacturing arm
 Hawthorne Experiment
The Hawthorne experiment were first conducted in November 1924 at Western
Electric Company’s Hawthorne plant in Chicago
The initial tests were sponsored by The National Research Council (NRC) of the
National Academy of Sciences
In 1927, a research team from Harvard Business School was invited to join the
studies after the illumination test drew unanticipated results
A team of researchers led by George Elton Mayo from the Harvard Business
School carried out the studies
(General Electric originally contributed funding, but they withdrew after the first
trial was completed)
 Illumination Studies
Purpose of the study: TO STUDY THE EFFECT OF VARIOUS LIGHTING CONDITIONS ON THE WORKERS
PRODUCTIVITY. DIVIDED THE WORKERS INTO TWO GROUPS

The hypothesis was that with higher illumination, productivity would increase.

GROUP -1 :- LIGHTING CONDITION IMPROVED AND THE PRODUCTIVITY WENT UP .

GROUP-2 :- LIGHTING CONDITION REMAINED CONSTANT AND THE PRODUCTIVITY INCREASED.

Measured Light Intensity vs. Worker Output

Result :
• Rejected the hypothesis
• Higher worker productivity and satisfaction at all light levels
• Worker productivity was stopped with the light levels reached
moonlight intensity.
Conclusions:
• Light intensity has no conclusive effect on output
• Productivity has a psychological component
• Concept of “Hawthorne Effect” was created
 Relay Assembly Test Experiments

1927-1929

Experiments were conducted by Elton Mayo

Manipulated factors of production to measure effect on output:

• Pay Incentives (Each Girls pay was based on the other 5 in the group)
• Length of Work Day & Work Week (5pm, 4:30 pm, 4pm)
• Use of Rest Periods (Two 5 minutes break)
• Company Sponsored Meals (Morning Coffee & soup along with sandwich)
Results:
• Higher output and greater employee satisfaction

Conclusions:
• Positive effects even with negative influences – workers’
output will increase as a response to attention
• Strong social bonds were created within the test group.
• Workers are influenced by need for recognition, security and
sense of belonging
 Mass Interview Program

Conducted 21,000 interviews.

Objective was to explore information, which could be used

to improve supervisory training.

Initially used the method of Direct Questioning and changed

to Non Directive (talk freely with friendly atmosphere).
Results

• - Merely giving an opportunity to talk and express grievances would increase the morale.
• - Complaints were symptoms of deep-rooted disturbances. (After a lot of complaints nothing was
done about it, people are there to criticize and advise but to do nothing)
• -Workers are governed by experience obtained from both inside and outside the company.

The worker was satisfied/dissatisfied depending upon how he regarded his

social status in the company.

Social groups created big impact on work.

Production was restricted by workers regardless all financial incentives offered

as group pressure are on individual workers.
 Bank Wiring Observation Group
• 1931-1932 (14 male workers observed for 7 months)
• Payment mode changed to efficiency based plus a bonus based on average group effect
• So, under this system the individual’s pay was affected by the output of entire group and
by his own individual output
• It was expected that highly efficient workers would bring pressure to bear on less efficient
workers to increase output and thus take advantage of group incentive plan.
• But the expected results did not come about.
• Instead, the group established its own standard output, and this was enforced by various
methods of social pressure
• Output was not only restricted, but the individual workers were giving erroneous reports
• Group was operating well below its capability and was leveling output to protect itself.
 The Hawthorne Effect
During the Hawthorne study, when researchers adjusted an independent variable (Ex.
Subject, Food, Lighting, Incentives, Breaks), the variable that can be manipulated to measure
its impact on another dependent variable (Interest to Study, Hunger/Taste, Productivity),
productivity changed.

But, after a relatively short time, those productivity gains disappeared and output ended up
drifting back to the previous level.

The conclusion was that changes in the work environment could impact productivity, but
those productivity gains are only short-term.
 The Hawthorne Effect
Their answer became known as the Hawthorne effect and is the same principle
that leads most drivers to slow down when they see a cop.

Like the speeder reacting when seeing a cop, the participants of the Hawthorne
Works study changed their behavior because they were receiving attention, but
once that attention was gone, they reverted to their 'normal' behavior.

Like any good researcher would, those working with Hawthorne Works scratched
their heads and asked why.
Behavioral Science
Approach
Behavioral Scientists have made significant contributions to our understanding of individual motivation,
group behaviour and interpersonal relationships at work and the importance of work to human beings

This emphasizes the effective utilization of human resources in organization

Behavioral Science Approach is an extension of the Human Relations Approach.

Elton Mayo and his team used simple research methods.

However, researchers, like Abraham Maslow, Douglas McGregor, etc., used more complex research
methods. Thus are called "Behavioral scientists."
Abraham Maslow’s Need Theory
 MODERN
APPROACHES
 Quantitative Approach
• Management Science Approach • Production and
• It tries to increase decision Operations Management
effectiveness through the use of
sophisticated mathematical models • Mainly focuses on
and statistical methods. managing the production
• Primary focus on decision making and delivery of any
• Managerial choices in any situation organization’s products
depends on criteria such as costs,
revenue, return on investments, etc. and services
• Management Information System • Includes inventory
• It focuses on designing and management, production
implementing computer based planning, work
information systems for use by
management. Like SAPs and other ERP scheduling, quality
software. assurance, etc.
• System Approach
• John Dunlop’s System Approach • Contingency (Situational)
Approach
• System (A set of interrelated subparts)
• There is no single way of
• Sub system (Parts that make a whole solving problems
system)
• Synergy (Properly assembled parts which
• We can reach to the same
leads to Smooth functioning of system) goal/ target using different
methods
• Open (interacts with environment) and
closed (no interaction with environment) • Both analytical and
situational approach
• System boundary
• Flow in System (fund flow – revenue-
• Appropriate managerial
taxes-wages-investments) action depends on the
particular parameters of the
• Feedback (Remedial actions- related to situation
customer complaints)
 Social
Responsibilities
• Social responsibility is a sense of responsibility
to society and everything that accompanies it.
• In other words, “social responsibility” means
that management is responsible to its
shareholders and the entire community.
• In general, social responsibility is a decisive
feature of capitalism. Individuals and
customers trust that companies “do the right
thing” and lead the world to a better place.
 Social Responsibility: Recognition that
organizations significantly influence the
social system, which must be considered
and balanced in all organizational actions.

Social
Responsibilities Controversy

of Business

Economic Goals
 Stake-Holders of the Organization

As the outcome of the increasing

concern for the social responsibility of
management, it is now recognised that, These interested groups are directly or
besides taking care of the financial indirectly affected by the pursuit of
interest of owners, managers of business activities and they are the
business firms must also consider the stake-holders of the business
interest of various other groups such as enterprise.
employees, consumers, the
government, and the community.
 Responsibility towards
owners
Social
Responsibility towards
responsibilities employees
of management Responsibility towards
towards each of consumers

the interested Responsibility toward the

governments
groups
Responsibility toward the
community and society
Responsibility towards owners

The primary responsibility of

management is to assure a With the growth of business,
fair and reasonable rate of the shareholders can also
return on capital and fair expect appreciation in the
dividend to the shareholders value of their capital.
as investors and risk bearers.
Responsibility towards employees

Management responsibility The provision of welfare

towards employees relates to amenities like safety and
fair wages and salaries, a security of working conditions,
satisfactory work environment, medical facilities, housing,
labour management relations, canteen, leave and retirement
and employee welfare. benefits
 Responsibility towards consumers

Goods must be of
Consumers are often Management should
appropriate standard and
victims of unfair trade satisfy consumer needs
quality and be available
practices and unethical and protect consumer
in adequate, quantities at
conduct of business. interests.
reasonable prices.
 Responsibility toward the governments

As a part of their social

responsibility, management
Business activities must also
must lawfully conduct business
conform to the economic and
affairs, honestly pay all the
social policies of the
taxes and dues, and should not
government.
corrupt public officials for
selfish ends.
Responsibility towards the community and
society

Provisions for the employment of

handicapped persons, and weaker
sections of the community,
environmental protection, pollution
control, setting up industries in
backward areas, and providing relief
to the victims of natural calamities.
 Reasons Why Managers Have Social
Responsibilities

Organizational
Precautionary step Moral Obligation
Resources

Better
Efficient and
Organizational
Effective Personnel
Environment