Fundamental of

Management For Engineers

th
For B. Tech. 5 Semester
rd
(3 Year) Packaging
Department Unit 1
 INTRODUCTION OF MANAGEMENT
• Management is essential for an organized life and necessary to run all types of management. Good
management is the backbone of successful organizations. Managing life means getting things done to achieve
life’ s objectives and managing an organization means getting things done with and through other people to
achieve its objectives.

• Management is a set of principles relating to the functions of planning, organizing, directing and controlling, and
the application of these principles in harnessing physical, financial, human, and informational resources
efficiently and effectively to achieve organizational goals.

• The concept of management is as old as the human race itself. Management in some form or another is an
integral part of living and is essential wherever human efforts are to be undertaken to achieve desired
objectives. The basic ingredients of management are always at play, whether we manage our lives or our
business.
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• For example, let us look at the managerial role of a simple housewife and how she uses the managerial ingredients
in managing the home.

• First, she appraises her household and its needs.

• She forecasts the needs of the household for a period of a week or a month or longer.

• She takes stock of her resources and any constraints on these resources.

• She plans and organizes her resources to obtain the maximum benefits out of these resources.

• She monitors and controls the household budget and expenses and other activities.

• In a large household, she divides the work among other members and coordinates their activities.

• She encourages and motivates them to do their best in completing their activities.

• She is always in search of improving, mention goals, resources, and in means to attain these goals. These ingredients,
generally, are the basic functions of management.
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• Even the recorded history shows the application of some current management techniques as far back
as 5000 BC. when the ancient Sumerians used written records in assisting governmental operations. The
Egyptian pyramids, built as early as 3000 BC., required the organized efforts of over 1,00,000 workers. It
would be natural to assume that all functions of modern management, namely, planning, organizing,
directing, and controlling played a significant role in the construction of these monuments. Similarly, the
early civilization of India bears witness to organized living.

• Management, as a system, is not only an essential element of an organized society but also an integral
part of life when we talk about managing our lives. Managing life is not much different from managing
an organization and this ‘ art’ of management has been with us from time immemorial. Just as a
well-managed life is much better organized, goal-oriented, and successful, ‘ good’ management of an
organization makes the difference between the success and the failure of the organization.
 DEFINITION OF MANAGEMENT
• Many management thinkers have defined management in their own ways. For example,

• Van Fleet and Peterson define management,

• Megginson, Mosley, and Pietri define management as

• Kreitner’ s definition of management:

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• According to ,

• According to ,
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• Management can be defined as a set of activities (including planning and decision making,
organizing, leading, and controlling) directed at an organization’ s resources (human, financial,
physical, and information), with the aim of achieving organizational goals in an efficient and
effective manner.
• Management can be defined as the process of administering and controlling the affairs of
the organization, irrespective of its nature, type, structure and size. It is an act of creating and
maintaining such a business environment wherein the members of the organization can work
together, and achieve business objectives efficiently and effectively.

• Management acts as a guide to a group of people working in the organization and coordinating their
efforts, towards the attainment of the common objective.
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• Management is the process of designing and maintaining an environment in which individuals
working together in groups to accomplish the selected aims efficiently and effectively. By efficient,
we mean using resources wisely, in a cost-effective way. By effective, we mean making the right
decisions and successfully implementing them. In general, successful organizations are both
efficient and effective. This definition of management explain that: As managers, people carry out
the managerial function of planning, organizing, staffing, leading and controlling. Management
applies all kind of organization at all organizational level. Managing is concerned with productivity
which implies the effectiveness and efficiency. Productivity can be defined as the output-input ratio
within a time framework with due consideration on quality. Productivity implies effectiveness and
efficiency. Effectiveness is achievement of objectives and efficiency is the achievement of ends
with the least amount of resources.
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• In other words, it is concerned with optimally using 5M’ s, i.e. men, machine, material, money and
methods and, this is possible only when there proper direction, coordination and integration of the
processes and activities, to achieve the desired results.

• Managers are responsible for using the organization’ s resources to help achieve its goals. A
manager is someone whose primary responsibility is to carry out the management process.
CHARACTERISTICS OF MANAGEMENT
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• Universal: All the organizations, whether it is profit-making or not, they require management, for
managing their activities. Hence it is universal in nature.

• Goal-Oriented: Every organization is set up with a predetermined objective and management helps in
reaching those goals timely, and smoothly.

• Continuous Process: It is an ongoing process which tends to persist as long as the organization exists. It is
required in every sphere of the organization whether it is production, human resource, finance or
marketing.

• Multi-dimensional: Management is not confined to the administration of people only, but it also manages
work, processes and operations, which makes it a multi-disciplinary activity. It is also grown as a field of
study taking help of so many other discipline such as engineering, anthropology, sociology and
psychology.
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• Group activity: An organization consists of various members who have different needs,
expectations and beliefs. Every person joins the organization with a different motive, but after
becoming a part of the organization they work for achieving the same goal. It requires supervision,
teamwork and coordination, and in this way, management comes into the picture.

• Dynamic function: An organization exists in a business environment that has various factors like
social, political, legal, technological and economic. A slight change in any of these factors will affect
the organization’ s growth and performance. So, to overcome these changes management
formulates strategies and implements them.

• Intangible force: Management can neither be seen nor touched but one can feel its existence, in the
way the organization functions.
OTHER CHARACTERISTICS

• Economic Resource: Management is one of the factors of production together with land, labour and
capital. Efficient management is the most critical input in the success of any organized group
activity as it is the force which assembles and integrates other factor of production. The other
factors of production do not by themselves ensure production. They require the catalyst of
management to produce goods and services required by the society.

• System of Authority: Management as a team of managers represents a system of authority, a

hierarchy of command and control. Managers at different levels possess varying degree of
authority. The authority enables the managers to perform their functions effectively.
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• Important Organ of Society: Society influences managerial action and managerial actions influence
society. Its manager’ s responsibility that they should also contribute towards the society by
organizing charity functions, sports competitions, a donation to NGO’ s, etc.

• Profession: Managers need to possess managerial knowledge and training and have to conform to
a recognized code of conduct and remain conscious of their social and human obligations.

• Social Science: All individuals that a manager deals with, have different levels of sensitivity,
understanding, and dynamism.

• Distinct Process: Management is a distinct process consisting of functions such as planning,

organizing, staffing, directing and controlling. The management process comprises a series of
actions or operations conducted towards an end.
 SCOPE OF MANAGEMENT
• Management is an all pervasive function since it is required in all types of organized endeavour. Thus, its
scope is very large. Although it is difficult to precisely define the scope of management, yet the
following areas are included in it:

• Subject Matter of Management: Planning, organizing, directing, coordinating and controlling are the
activities included in the subject matter of management.

• Functional Areas of Management: These Includes:

• Financial Management includes accounting, budgetary control, quality control, financial planning and
managing the overall finances of an organization.

• Personnel Management includes recruitment, training, transfer promotion, demotion, retirement,

termination, labor-welfare and social security industrial relations.
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• Purchasing management includes inviting tenders for raw materials, placing orders, entering into
contracts and materials control.

• Production Management includes production planning, production control techniques, quality control
and inspection and time and motion studies.

• Maintenance Management involves proper care and maintenance of the buildings, plants, and
machinery.

• Transport Management includes packing, warehousing and transportation by rail, road, and air.

• Distribution Management includes marketing, market research, price-determination, taking

market‑ risk and advertising, publicity and sales promotion.
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• Office Management includes activities to properly manage the layout, staffing, and equipment of
the office.

• Development Management involves experimentation and research of production techniques,

markets, etc.

• Management is an Inter-Disciplinary Approach: For the correct implementation of the management,

it is important to have knowledge of commerce, economics, sociology, psychology, and
mathematics.

• Universal Application: The principles of management can be applied to all types of organizations
irrespective of the nature of tasks that they perform.
PROCESS OF MANAGEMENT
• There is enough disagreement among management writers on the classification of managerial
functions. Newman and Summer recognise only four functions namely planning, organising, leading
and controlling. Henry Fayol identifies five functions of management viz., planning, organising,
commanding, coordinating and controlling. Luther Gulick states seven such function under the catch
word “ POSDCORB” which stands f or Planning, organising, staffing, directing, coordinating,
reporting, and budgeting. Koontz and O’ Donnell divide these functions into planning, organising,
staffing, directing, and controlling. For our purpose, we shall designate the following six as the
functions of a manager: planning, organising, staffing, directing, coordinating, and controlling.
PLANNING
• Planning is a basic managerial function. Planning helps in determining the course of action to be
followed for achieving various organizational objectives. It is a decision in advance, what to do when
to do, how to do and who will do a particular task. Planning is a process which involves thinking
before doing’ . Planning is concerned with the mental state of a manager. He thinks before
undertaking a work. Other functions of management such as organizing, staffing, directing,
coordinating and controlling are also undertaken after planning. Planning is deciding about the future
objectives and the course of action for their achievement in the present. Thus, it involves:
• Determination of Long and short range objectives

• Development of strategies and course of actions to be followed for the achievement of these objectives

• Formulation of policies, procedures and rules etc., for the implementation of strategies and plans
ORGANISING
• Organising involves the identification of activities required for the achievement of enterprise
objectives and implementation of plans, grouping of activities into jobs, assignment of these jobs
and activities to departments and individuals, delegation of responsibility and authority for
performance, and provision for vertical and horizontal coordination of activities. Organisation thus
involves the following sub-functions:
• Identification of activities required for the achievement of objectives and implementation of plans

• Grouping the activities so as to create self-contained jobs

• Assignment of jobs to employees

• Delegation of authority so as to enable them to perform and command resources needed for their performance

• Establishing a network of coordination relationships

STAFFING
Staffing is a continuous and vital function of management. After the objectives have been determined strategies,
policies, programs, procedures and rules formulated for their achievement of objectives next logical step in
management process is procure the suitable personnel for managing the jobs. Every manager in an organization
has to perform the staffing function in one form or the other, in order to get things done through others. But it is
decidedly a difficult managerial function as it concerns human beings whose behavior and actions cannot be
predicted, and that is why it has become a distinct and specialized branch of management. It comprises several
sub-functions:
• Manpower planning involving determination of the number and the kind of personnel required

• Recruitment for attracting adequate number of potential employees to seek jobs

• Selection of most suitable persons for the jobs

• Placement, Induction, and Orientation

• Transfer, Promotion, Termination and lay-off

• Training and development of employees

DIRECTING
Directing is the function of leading the employees to perform efficiently and contribute their optimum to
the achievement of organisational objectives. After planning, organizing and staffing, the manager has to
guide and supervise his subordinates. Job assigned to subordinate have to be explained and clarified, they
have to be provided guidance in job performance and they are motivated to contribute their optimum
performance with zeal and enthusiasm. The function of directing thus involves the following sub-functions:

• Leadership: A manager has to issue orders and instructions and guide and counsel his subordinates in
their work with a view to improve their performance and achieve enterprise objectives. Leadership is
‘ the process by which an executive or manager imaginatively directs/guides and influences the work
of others in choosing and attaining specified goals by mediating between the individual and organization
in such a manner that both will get maximum satisfaction’ .
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• Communication: Communication constitutes a very important function of management. It is said to be the
number one problem of management, today. It is an established fact that managers spend 75 to 90 per
cent of their working time in communicating with others. Communication is the means by which the
behavior of the subordinate is modified and change is effected in their actions. Communication is
essential at all levels of management for decision- making and planning. It increases managerial
capacity and facilitates control. It has been rightly said that good managers are good communicators and
poor managers are poor communicators.

• Motivation: The term motivation is derived from the word ‘ motive’ which means a need, or an emotion that
prompts an individual into action. Motivation is the psychological process of creating urge among the
subordinates to do certain things or behave in the desired manner. It is a very important function of
management. The importance of motivation can be realized from the fact that performance of a worker
depends upon his ability and the motivation.
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• Supervision: Supervision is another important element of directing function of management. After
issuing instructions, the manager or the supervisor has to see that the given instructions are carried
out. This is the aim of supervision. Supervision refers to the job of overseeing subordinates at work
to ensure maximum utilization of resources, to get the required and directed work done and to
correct the subordinates whenever they go wrong. Though supervision is performed at all levels of
management, the major responsibility for supervision lies with the first line of management. Sound
organizational set up, effective delegation, human approach, effective communication and
management by exception make supervision effective.
COORDINATION
• Coordination is the function of establishing such relationships among various parts of the organisation that they
all together pull in the direction of organisational objectives. It is the process of tying together all the
organisational decisions, operations, activities, and efforts so as to achieve unity of action for the
accomplishment of organisational objectives.

• Co-ordination is one of the most important functions of management. It is essential to channelize the activities
of various individuals in the organization for the achievement of common goals. Every department or section is
given a target to be achieved and they should concentrate only on their work and should not bother about the
work of other organs. It is left to the management to see that the work of different segments is going
according to pre-determined targets and corrective measures have to be taken if there is any deviation.
Co-ordination creates a team spirit and helps in achieving goals through collective efforts. It is the orderly
arrangement of group effort to provide unity of action in the pursuit of common objectives.
CONTROLLING
• Controlling can be defined as “ determining what is being accomplished, that is evaluating the
performance, if necessary, applying corrective measures so that the performance takes place
according to plans.” Control is essential for achieving objectives of an enterprise. The planning of
various activities does not ensure automatic implementation of policies. Control is the process
which enables management to get its policies implemented and take corrective actions if
performance is not according to the pre-determined standards. Controlling is the function of
ensuring that the divisional, departmental, sectional, and individual performances are consistent
with the predetermined objectives and goals. If planning is the beginning of the management
process, controlling may be said to be the final stage. If planning is looking ahead, controlling is
looking back. Control is not possible without planning and planning is meaningless without control.
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• Control is a line function and executives at various levels of management continuously assess the
performance of their subordinates. The main purpose of control is to see that the activity is
achieving the desired results. A control system, to be effective, must conform to the nature of
activity, report deviations promptly, reflect organization structure, assure corrective action and be
economical. The process of controlling involves the following steps:
• (i) Establishing standards of performance;
• (ii) Measuring actual performance;
• (iii) Comparing the actual performance with the standard;
• (iv) Finding variances or deviations, if any; and
• (v) Taking corrective action or measures.
MANAGERIAL ROLES
• Managerial roles are specific behaviors associated with the task of management. Managers adopt
these roles to accomplish the basic functions of management just discussed planning and
strategizing, organizing, controlling, and leading and developing employees.

• One of the earliest and most enduring descriptions of managerial roles comes from Henry
Mintzberg, who shadowed managers observing what they did during the day.

• Mintzberg developed a list of roles that he grouped into three categories: interpersonal roles,
informational roles, and decisional roles. Mintzberg emphasized that managing is an integrated
activity, so these roles are rarely distinct. Visiting clients, for instance, usually relates to two or
more roles simultaneously.
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• Interpersonal Roles: Interpersonal roles are roles that involve interacting with other people inside
and outside the organization. Management jobs are people-intensive: Research suggests that
managers spend somewhere between 66 and 80 percent of their time in the company of others. 20
Seldom do managers work alone for long periods without outside communication. As Linda Hill
noted, managers get things done through their network of interpersonal relationships. Mintzberg
identified three types of interpersonal roles: a figurehead role, a leader role, and a liaison role.

Figurehead: In this role every manger has to perform some duties of a ceremonial nature such as
greeting the touring dignitaries, attending the weddings of an employee, taking customer to lunch on
so on.
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Leader: As a leader every manager must motivate and encourage his employees. He must also try
to reconcile their individual needs with the goal of the organisation.

Liasion: In this role, every manager must cultivate contacts outside his vertical chain of command to
collect useful information for his organisation.

• Informational Roles: Informational roles are concerned with collecting, processing, and disseminating
information. Managers collect information from various sources both inside and outside the
organization, process that information, and distribute it to others who need it. Mintzberg found that
managers 40 percent of their time in these tasks. Mintzberg divided the information roles of
management into three types: monitor, disseminator, and spokesperson.
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Monitor: As monitor, the manger has to perpetually scan his environment for information, interrogate
his liaison contacts and his subordinates and receive unsolicited information as of much he collect
from the network of personal contacts developed by him.

Disseminator: In this role, the manager passes some of his privilege information directly to his
subordinate who could otherwise have no access of it.

Spokesman: In this role, the manager informs and satisfy various groups and people who influence his
organisation. He advice shareholder about financial performance, assure consumer groups that the
organisation is fulfilling its social responsibility and satisfy government that the organisation is abiding
by the law.
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• Decisional roles: Management guru Peter Drucker once wrote that whatever managers do, they do
through making decisions. The information collected through monitoring is directed toward
discovering problems or opportunities, weighing options, making decisions, and ensuring that those
decisions are put into action. Whereas interpersonal roles deal with people and informational roles
deal with knowledge, decisional roles deal with action. They translate the people and information
into processes with the purpose of moving the organization toward its strategic goals. Mintzberg
identified four decision roles: entrepreneur, disturbance handler, resource allocator, and negotiator.

Entrepreneur: In this role, the manager constantly looks out for new ideas and seeks to improve his
unit by adapting it to changing conditions in the environment.
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Disturbance Handler: In this role, the manger has to work like a fire fighter. He must seek solutions of
various unanticipated problems such as a strike may loom large a major customer may go bankrupt,
a supplier renege on his contract and so on.

Resource allocator: In this role, the manager must divide work and delegates authority among his
subordinates. He must decide who will get what.

Negotiator: The manger has to spend considerable time in negotiations. Thus, the chairman of a
company may negotiate with the union leaders a new strike issue, the foreman may negotiate with
the workers a grievance problem and so on.
LEVEL OF MANAGEMENT
• An enterprise may have different levels of management. It refers to a line of demarcation
between various managerial positions in an enterprise. The level of management depends upon its
size, technical facility and range of production. We generally, come across two broad levels of
management viz., Administrative management and operative management.

• The Administrative management is concerned with thinking function such as laying down policies,
planning and setting up of standards.

• Operative management is concerned with the doing functions such as implementation of policies
and directing the operations to attain the objectives of the enterprise.
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• But in actual practice, it is difficult to draw any clear cut demarcation between thinking function and
doing function. Because the fundamental managerial functions are performed by all the managers
irrespective of their levels or ranks.

• So the real significance levels is that they explain authority, relationship in an organisation.
Considering the hierarchy of authority and responsibility, the level of management divided in to
three level:

• Top Management – Making the policy

• Middle Management- Implement the policy and plans framed by top management

• Lower or operative management- Actual operations are responsibility of this level

TOP MANAGEMENT
• Top Management is ultimate source of authority and it lays down the goals, policies and plans for the
enterprise. It devotes more time on planning and coordinating functions. It is accountable to the owners of the
business of the overall management. It is accountable to the owner of the business of the overall
management. It is also known as policy making group responsible for the overall direction and success of all
company activities. The important function of top management are:

• To establish the objective and goals of the organisation

• To make policies and frame plans to attained the objective laid

• To setup an organisational framework to conduct the operations as per plans

• To assemble the resources of money, men material, machines and methods to put the plan into action

• To exercise effective control of the operations

• To provide overall leadership to the enterprise

Middle Management
• The job of the middle management is to implement the policies and plans framed by the top management. It serves as an essential
link between the top management and lower level or operative management. They are responsible to the top management for their
functioning. They devote more time on the organisation and motivational functions of management. They provide guidance and
structure for a purposeful enterprise. Following functions are performed by middle management:
• To interpret the policies chalk out by top management

• To prepare the organisational setup in their own department for fulfilling the objectives implied in various business policies
• To recruit and select suitable operative and supervisory staff
• To assign activities, duties, and responsibilities for timely implementations of the plan

• To compile all instruction and issue them to supervisor under their control
• To motivate personnel to attain higher productivity and reward them accordingly
• To cooperate with the other department for ensuring a smooth functioning of the entire organisation

• To collect reports and information on performance in their departments

• To report to top management
• To make suitable recommendation to the top management for the better execution of plans and policies
Lower Management
It is placed at the bottom of the hierarchy of management and actual operations are the responsibility of this level. It consists
of foreman, supervisors, sales officers, accounts officer and so on. They are direct touch with the rank and file or workers.
Their authority and responsibility is limited. They pass on the instructions of the middle management to workers. They interpret
and divide the plans of management into short-range operating plans. They are also involved in process of decision making.
They allot various jobs to the workers, evaluate their performance and report to the middle level management. They are more
concerned with direction and control function of management. They devote more time in the supervision of the workers.
a． Assigning of jobs and tasks to various workers.
b．They guide and instruct workers for day to day activities.
c． They are responsible for the quality as well as quantity of production.
d．They are also entrusted with the responsibility of maintaining good relation in the organization.
e．They communicate workers problems, suggestions, and recommendatory appeals etc to the higher level and higher level goals and objectives to the workers.
f． They help to solve the grievances of the workers.
g． They supervise & guide the sub-ordinates.
h． They are responsible for providing training to the workers.
i． They arrange necessary materials, machines, tools etc for getting the things done.
j． They prepare periodical reports about the performance of the workers.
k．They ensure discipline in the enterprise.
l． They motivate workers.
m．They are the image builders of the enterprise because they are in direct contact with the workers
Managerial Skills
• Business owners are entrepreneurs until they become managers. When they become managers,
they will felt frustrated because then they will need to deal with new problems, managerial
problems. Management is not a simple task. It needs knowledge and experience. Because of that,
there is the existence of hierarchy, organizational structure, and possibilities for each organizational
member with adequate knowledge, experience, and skills to move from the bottom to the middle
and top level of the managerial pyramid.

• Simply, managerial skills are the knowledge and ability of the individuals in a managerial position to
fulfill some specific management activities or tasks. This knowledge and ability can be learned and
practiced. However, they also can be acquired through practical implementation of required
activities and tasks. Therefore, you can develop each skill through learning and practical
experience as a manager.
Types of Skills
• There are many definitions of skills that talk about talent. is something personal related to an
individual and shows a natural gift from nature about something inside that talented person. All persons
cannot be artists. Usually, artists are born with the gift of art, but despite their talent, they continue to
develop their talent to improve their art skills. When we talk about managerial skills, we talk about the
skills of a manager to maintain high efficiency in the way how his or her employees complete their
everyday working tasks. Because of that, managers will need skills that will help them to manage
people and technology to ensure an effective and efficient realization of their working duties. Robert
Katz identifies three types of skills that are essential for a successful management process:

• Technical skills

• Conceptual skills

• Human or interpersonal skills

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Technical Skills
As the name of these skills tells us, they give the manager’ s knowledge and ability to use different
techniques to achieve what they want to achieve. Technical skills are not related only for machines,
production tools or other equipment, but also they are skills that will be required to increase sales,
design different types of products and services, market the products and services, etc.

The technical skill is the manager’ s understanding of the nature of job that people under him have
to perform. It refers to a person knowledge and proficiency in any type of process or technique. In a
production department this would mean an understanding of the technicalities of the process of
production. Technical skills are most important for first-level managers. Whet it comes to the top
managers, these skills are not something with high significance level. As we go through a hierarchy
from the bottom to higher levels, the technical skills lose their importance.
Conceptual Skills
• Conceptual skills present knowledge or ability of a manager for more abstract thinking. That
means he can easily see the whole through analysis and diagnosis of different states. In such a
way they can predict the future of the business or department as a whole. The conceptual skills
refers to the ability of manager to take a broad and farsighted view of the organization and its
future, his ability to think in abstract, his ability to analyze the forces working in a situation, his
creative and innovative ability and his ability to assess the environment and changes taking place
in it. In short, it is ability to conceptualize the environment, the organization and his own job so that
he can set appropriate goals for his organization for himself and for his team. Conceptual skills are
vital for top managers, less critical for mid-level managers, and not required for first-level
managers. As we go from the bottom of the managerial hierarchy to the top, the importance of
these skills will rise.
Human or Interpersonal Skills
• Human or interpersonal management skills present a manager’ s knowledge and ability to work
with people. One of the most critical management tasks is to work with people. Without people,
there will not be a need for the existence of management and managers. These skills will enable
managers to become leaders and motivate employees for better accomplishments. Also, they will
help them to make more effective use of human potential in the company. Simply, they are the
essential skills for managers. Interpersonal management skills are essential for all hierarchical
levels in the company.
Challenges faced by Management
• PESTEL Approach for approaching challenges
• Globalisation
• Work Force Diversity
• Stimulating Innovation and Change
• Total Quality Management
• Empowerment and Teams
• Downsizing
• Contingent Worker
• Mind the Skill Gap
• High Staff turnover
• Creating Innovative team
• Employee engagement
• Knowledge loss and brain drain
• Achieving a stretch goal
• Bringing out the best in your employees
• Dealing with underperformance employee
• Dealing with outstanding employees
• Hiring the right people
Evolution of Management
The practice of management can be traced back thousands of years. The Egyptians used the
management functions of planning, organizing, and controlling when they constructed the pyramids.
Alexander the Great employed a staff organization to coordinate activities during his military campaigns.
The Roman Empire developed a well-defined organizational structure that greatly facilitated
communication and control. Socrates discussed management practices and concepts in 400 BC, Plato
described job specialization in 350 BC, and the Persian scientist and philosopher al-Farabi listed several
leadership traits in AD 900. In spite of this history, the serious study of management did not begin until the nineteenth
century. Two of its pioneers were Robert Owen and Charles Babbage. Owen (1771– 1858), a British industrialist and
reformer, was one of the first managers to recognize the importance of an organization’ s human resources and to
express concern for the personal welfare of his workers. Babbage (1792– 1871), an English mathematician, focused his
attention on efficiencies of production. He placed great faith in the division of labor and advocated the application of
mathematics to such problems as the efficient use of facilities and materials.
Classic Management Practices
There are different approaches or thoughts evolved about the management practices. They are categorized into
following parts:
• Classical Approach
• Behavioural Approach
• Quantitative Approach
• System Approach
• Contingency Approach
• IT Approach

Early in the twentieth century, the preliminary ideas and writings of these and other managers and theorists
converged with the emergence and evolution of large-scale businesses and management practices. This created
interest and focused attention on how businesses should be operated. The first important ideas to emerge are
now called the classical management perspective, which actually includes two different viewpoints:
• Scientific management
• Administrative management
Scientific Management
Productivity emerged as a serious business problem during the early years of the twentieth century.
Business was expanding and capital was readily available, but labor was in short supply. Hence,
managers began to search for ways to use existing labor more efficiently. In response to this need,
experts began to focus on ways to improve the performance of individual workers. Their work led to
the development of scientific management. Some of the earliest advocates of scientific management
included Frederick W. Taylor (1856– 1915), Frank Gilbreth (1868– 1924), and Lillian Gilbreth (1878–
1972). Taylor played the dominant role.

Frederick W. Taylor was one of the first management consultants and helped create scientific
management. Time-and-motion studies and performance-based pay systems were among the
innovations Taylor and his associates introduced. Mass production assembly line technologies also
benefited from Taylor’ s ideas and insights.
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One of Taylor’ s first jobs was as a foreman at the Midvale Steel Company in Philadelphia. There he observed what he

called soldiering - employees deliberately working at a pace slower than their capabilities. Taylor studied and timed

each element of the steel workers’ jobs. He determined what each worker should be producing, and then he

designed the most efficient way of doing each part of the overall task.

Next, he implemented a piece work pay system. Rather than paying all employees the same wage, he began

increasing the pay of each worker who met and exceeded the target level of output set for his or her job. After Taylor

left Midvale, he worked as a consultant for several companies, including Simonds Rolling Machine Company and

Bethlehem Steel. At Simonds he studied and redesigned jobs, introduced rest periods to reduce fatigue, and

implemented a piece work pay system. The results were higher quality and quantity of output, and improved morale.

At Bethlehem Steel, Taylor studied efficient ways of loading and unloading railcars and applied his conclusions with

equally impressive results. During these experiences, he formulated the basic ideas that he called
.
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Taylor did most of his work at the Midvale and Bethlehem Steel Companies in Pennsylvania. As a
mechanical engineer, he was continually shocked by workers' inefficiencies. Employees used vastly
different techniques to do the same job. They were inclined to "take it easy" on the job, and Taylor
believed that worker output was only about one-third of what was possible. Virtually no work
standards existed. Workers were placed in jobs with little or no concern for matching their abilities
and aptitudes with the tasks they were required to do. Managers and workers were in continual
conflict. He set out to correct the situation by applying the scientific method to shop floor jobs. He
spent more than two decades passionately pursuing the "one best way" for each job to be done.

Taylor's experiences at Midvale led him to define clear guidelines for improving production efficiency.
He argued that these four principles of management would result in prosperity for both workers and
managers.
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• Develop a science for each element of an individual's work, which will replace the old
rule-of-thumb method.

• Scientifically select and then train, teach, and develop the worker. (Previously, workers chose their
own work and trained themselves as best they could.)

• 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.

• Divide work and responsibility almost equally between management and workers. Management
takes over all work for which it is better fitted than the workers.
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Probably the best known example of Taylor's scientific management was the pig iron experiment.
Workers loaded "pigs" of iron (each weighing 92 pounds) onto rail cars. Their daily average output was
12.5 tons. However, Taylor believed that by scientifically analyzing the job to determine the "one best
way" to load pig iron, output could be increased to 47 or 48 tons per day. After scientifically trying
different combinations of procedures, techniques, and tools, Taylor succeeded in getting that level of
productivity. How? He put the right person on the job with the correct tools and equipment, had the
worker follow his instructions exactly, and motivated the worker with an economic incentive of a
significantly higher daily wage. Using similar approaches to other jobs, Taylor was able to define the
"one best way" for doing each job. Overall, Taylor achieved consistent productivity improvements in
the range of 200 percent or more. Through his groundbreaking studies of manual work using scientific
principles, Taylor became known as the "father" of scientific management. His ideas spread in the
United States and also in France, Germany, Russia, and Japan, and inspired others to study and
develop methods of scientific management. His most prominent followers were Frank and Lillian
Gilbreth.
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Frank and Lillian Gilbreth

A construction contractor by trade, Frank Gilbreth gave up his contracting career in 1912 to study scientific management after
hearing Taylor speak at a professional meeting. Frank and his wife Lillian, a psychologist, studied work to eliminate wasteful
hand-and-body motions. The Gilbreths also experimented with the design and use of the proper tools and equipment for
optimizing work performance.

Frank is probably best known for his experiments in bricklaying. By carefully analyzing the bricklayer's job, he reduced the
number of motions in laying exterior brick from 18 to about 5, and on laying interior brick the motions were reduced from 18 to 2.
Using Gilbreth's techniques, the bricklayer could be more productive and less fatigued at the end of the day.

The Gilbreths were among the first researchers to use motion pictures to study hand-and-body motions. They invented a
device called a micro chrono meter that recorded a worker's motions and the amount of time spent doing each motion. Wasted
motions missed by the naked eye could be identified and eliminated. The Gilbreths also devised a classification scheme to
label 17 basic hand motions (such as search, grasp, hold), which they called therbligs ( spelled backward with the
transposed). This scheme allowed the Gilbreths a more precise way of analyzing a worker's exact hand movements.
Administrative Management
Whereas scientific management deals with the jobs of individual employees, administrative management
focuses on managing the total organization. The primary contributors to administrative management were
Henri Fayol (1841– 1925), Lyndall Urwick (1891– 1983), and Max Weber (1864– 1920).

Henri Fayol was administrative management’ s most articulate spokesperson. A French industrialist,
Fayol was unknown to U.S. managers and scholars until his most important work,
, was translated into English in 1930. Drawing on his own managerial experience, he attempted
to systematize management practice to provide guidance and direction to other managers. Fayol was also
the first to identify the specific managerial functions of planning, organizing, leading, and controlling. He
believed that these functions accurately reflect the core of the management process. He also identified 14
principles of management— fundamental rules of management that could be applied to all organizations.
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Max Weber:

Weber was a German sociologist who studied organizational activity. Writing in the early 1900s, he
developed a theory of authority structures and relations.

Weber described an ideal type of organization he called a bureaucracy— a form of organization

characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and
impersonal relationships.

Weber recognized that this "ideal bureaucracy" didn't exist in reality. Instead he intended it as a basis
for theorizing about work and how work could be done in large groups.

His theory became the model structural design for many of today's large organizations.
Feature of Max Weber Theory
• Division of labour

• Jobs are broken down into simple, routine and well defined tasks

• Authority hagiarchy or position organized in a hierarchy with clear chain of command

• Career orientation or managers are career professionals not owner of the units they managed

• Formal selection or people select for job based on technical qualification

• Formal rules and regulation

• System of writing rules and standard operating procedures

• Impersonality or uniform application of rules and controls not according to personalities

The Behavioural Approach of Management
Early advocates of the classical management perspective viewed organizations and jobs from an
essentially mechanistic point of view; that is, they sought to conceptualize organizations as machines and
workers as cogs within those machines. Even though many early writers recognized the role of individuals,
their focus tended to be on how managers could control and standardize the behavior of their employees.
In contrast, the behavioral management perspective placed much more emphasis on individual attitudes,
behaviors, and group processes and recognized the importance of behavioral processes in the workplace.
As management research continued in the 20th century, questions began to come up regarding the
interactions and motivations of the individual within organizations. Management principles developed during
the classical period were simply not useful in dealing with many management situations and could not
explain the behavior of individual employees. In short, classical theory ignored employee motivation and
behavior. As a result, the behavioral school was a natural outgrowth of this revolutionary management
experiment.
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The behavioral management theory is often called the human relations movement because it addresses the human
dimension of work. Behavioral theorists believed that a better understanding of human behavior at work, such as
motivation, conflict, expectations, and group dynamics, improved productivity.

The behavioral management perspective was stimulated by many writers and theoretical movements. One of those
movements was industrial psychology, the practice of applying psychological concepts to industrial settings. Hugo
Munsterberg (1863– 1916), a noted German psychologist, is recognized as the father of industrial psychology. He
established a psychological laboratory at Harvard University in 1892, and his pioneering book,
, was translated into English in 1913. Munsterberg suggested that psychologists could make valuable
contributions to managers in the areas of employee selection and motivation. Another early advocate of the behavioral
approach to management was Mary Parker Follett (1868– 1933). Follett worked during the scientific management era
but quickly came to recognize the human element in the workplace. Indeed, her work clearly anticipated the behavioral
management perspective, and she appreciated the need to understand the role of human behavior in organizations.
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Some of the main behavioral researchers who made considerable contributions to the progression of
the are: Mary Parker Follett, Douglas McGregor, Kurt Lewin,
Chester Barnard, Abraham Maslow, George Romans, etc.

The behavioral approach has been divided into two branches:

the Human relations approach and

the behavioral science approach.

In the human relations approach managers should know why their subordinates behave as they do
and what psychological and social factors have an impact on them. Supporters of this approach make
an effort to show how the process and functions of management are influenced by differences in
individual behavior and the influence of groups in the office.
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The term human relations means the way in which managers connect to subordinates. Managers
face many difficulties because staff members usually do not stick to predetermined and balanced
patterns of behavior. Supporters of Human relations approach feel that management should
recognize employees need for recognition and social acceptance. Management should look upon the
work group as a positive force which can be used productively. Thus, managers must be competent
in human relations skills along with technical skills. The initial encouragement for the movement
came from the Hawthorne experiments:

1. Illumination experiments
2. Relay assembly test room
3. Interviewing programme
4. Bank wiring test room
Hawthorne Experiment
Without question, the most important contribution to the developing human relation field came
out of the Hawthorne Studies, a series of studies conducted at the Western Electric Company
Works in Cicero, Illinois. These studies, started in 1924 and continued through the early 1930s,
were initially designed by Western Electric industrial engineers as a scientific management
experiment. They wanted to examine the effect of various illumination levels on worker
productivity.

In 1927, the Western Electric engineers asked Harvard professor Elton Mayo and his associates
to join the study as consultants. Thus began a relationship that would last through 1932 and
encompass numerous experiments in the redesign of jobs, changes in workday and workweek
length, introduction of rest periods, and individual versus group wage plans.
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Some of the major phases of Hawthorne experiments are as follows: 1. Illumination Experiments 2. Relay
Assembly Test Room Experiments 3. Mass Interviewing Programme 4. Bank Wiring Observation Room
Experiment.

1. Experiments to determine the effects of changes in illumination on productivity, illumination experiments,

1924-27.

2. Experiments to determine the effects of changes in hours and other working conditions on productivity,
relay assembly test room experiments, 1927-28

3. Conducting plant-wide interviews to determine worker attitudes and sentiments, mass interviewing
programme, 1928-30; and

4. Determination and analysis of social organization at work, bank wiring observation room experiments,
1931-32.
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Illumination Experiments: Illumination experiments were undertaken to find out how varying levels of illumination
or amount of light at the workplace affected the productivity. The hypothesis was that with higher illumination,
productivity will increase. In the first series of experiments, a group of workers was chosen and placed in two
separate groups. One group was exposed to varying intensities of illumination. Since this group was subjected to
experimental changes, it was termed as experimental group. Another group, called as control group, continued to
work under constant intensities of illumination. The researchers found that as they increased the illumination in
the experimental group, both groups increased production. When the intensity of illumination decreased, the
production continued to increase in both the groups. The production in the experimental group decreased only
when the illumination was decreased to the level of moonlight. The decrease was due to light falling much below
the normal level. Thus, it was concluded that illumination did not have any effect on productivity but something
else was interfering with the productivity. At that time, it was concluded that human factor was important in
determining productivity but which aspect was affecting, it was not sure. Therefore, another phase of
experiments was undertaken.
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Relay Assemble Test Room Experiments: Relay assembly test room experiments were designed to
determine the effect of changes in various job conditions on group productivity as the illumination
experiments could not establish such relationship. For this purpose, the researchers set up a relay
assembly test room two girls were chosen. These girls were asked to choose for more girls as
co-workers. The work related to the assembly of telephone relays. Each relay consisted of a number
of parts which girls assembled into finished products. Output depended on the speed and continuity
with which girls worked. The experiments started with introducing numerous changes in sequence
with duration of each change ranging from four to twelve weeks. An observer was associated with
girls to supervise their work. Before each change was introduced, the girls were consulted. They
were given opportunity to express their viewpoints and concerns to the supervisor. In some cases,
they were allowed to take decisions on matters concerning them.
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Following were the changes and resultant outcomes:

1. The incentive system was changed so that each girl’ s extra pay was based on the other five rather than
output of larger group, say, 100 workers or so. The productivity increase as compared to before.

2. Two five- minute rests one in the morning session and other in evening session were introduced which were
increased to ten minutes. The productivity increased.

3. The rest period was reduced to five minutes but frequency was increased. The productivity decreased slightly
and the girls complained that frequent rest intervals affected the rhythm of the work.

4. The number of rest was reduced to two of ten minutes of each, but in the morning, coffee or soup was served
along with the sandwich and in the evening, snack was provided. The productivity increased.

5. Changes in working hours and workday were introduced, such as cutting an hour off the end of the day and
eliminating Saturday work. The girls were allowed to leave at 4.30 p.m. instead of usual 5.00 p.m. and later at
4.00 p.m. productivity increased.
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• As each change was introduced, absenteeism decreased, morale increased, and less supervision
was required. It was assumed that these positive factors were there because of the various
factors being adjusted and making them more positive.

• At this time, the researchers decided to revert back to original position, that is, no rest and other
benefits. Surprisingly, productivity increased further instead of going down. This development
caused a considerable amount of redirection in thinking and the result implied that productivity
increased not because of positive changes in physical factors but because of the change in girls’
attitudes towards work and their work group.

• They developed a feeling of stability and a sense of belongings. Since there was more freedom of
work, they developed a sense of responsibility and self-discipline. The relationship between
supervisor and workers became close and friendly.
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Mass Interviewing Programme: During the course of experiments, about 20,000 interviews were conducted
between 1928 and 1930 to determine employees’ attitudes towards company, supervision, insurance
plans, promotion and wages. Initially, these interviews were conducted by means of direct questioning such
as “ do you like your supervisor?” or “ is he in your opinion fair or does he have favorites?” etc. The
interview programme gave valuable insights about the human behaviour in the company.
1. A complaint is not necessarily an objective recital of facts; it is a symptom of personal disturbance the cause of which may
be deep seated.

2. Objects, persons or events are carriers of social meanings. They become related to employee satisfaction or dissatisfaction
only as the employee comes to view them from his personal situation.

3. The personal situation of the worker is a configuration, composed of a personal preference involving sentiments, desires and
interests of the person and the social reference constituting the person’ s social past and his present interpersonal relations.
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4. The position or status of worker in the company is a reference from which the worker assigns meaning and
value to the events, objects and features of his environment such as hours of work, wages, etc.

5. The social organisation of the company represents a system of values from which the worker derives
satisfaction or dissatisfaction according to the perception of his social status and the expected social rewards.

6. The social demands of the worker are influenced by social experience in groups both inside and outside the
work plant.

During the course of interviews, it was discovered that workers’ behaviour was being influenced by group
behaviour. However, this conclusion was not very satisfactory and, therefore, researches decided to conduct
another series of experiments. As such, the detailed study of a shop situation was started to find out the
behaviour of workers in small groups.
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Bank Wiring Observation Room Experiment: These experiments were conducted to find out the impact of small groups
on the individuals. In this experiment, a group of 14 male workers were formed into a small work group. The men were
engaged in the assembly of terminal banks for the use in telephone exchanges. The work involved attaching wire with
switches for certain equipment used in telephone exchanges. Hourly wage for each worker was fixed on the basis of
average output of each worker. Bonus as also payable on the basis of group effort. It was expected that highly efficient
workers would bring pressure on less efficient workers to increase output and take advantage of group incentive plan.
However, the strategy did not work and workers established their own standard of output and this was enforced
vigorously by various methods of social pressure. The workers cited various reasons for this behaviour viz. fear of
unemployment, fear of increase in output, desire to protect slow workers etc.

The Hawthorne experiments clearly showed that a man at work is motivated by more than the satisfaction of economic needs.
Management should recognize that people are essentially social beings and not merely economic beings. As a social being, they are
members of a group and the management should try to understand group attitudes and group psychology.
Maslow’ s Need Hierarchy Theory
Maslow (1943, 1954) stated that people are motivated to achieve certain needs and that some needs take
precedence over others. Our most basic need is for physical survival, and this will be the first thing that
motivates our behavior. Once that level is fulfilled the next level up is what motivates us, and so on.

1. Physiological needs - these are biological requirements for human survival, e.g. air, food, drink, shelter, clothing,
warmth, sex, sleep. If these needs are not satisfied the human body cannot function optimally. Maslow considered
physiological needs the most important as all the other needs become secondary until these needs are met.

2. Safety needs - Once an individual’ s physiological needs are satisfied, the needs for security and safety become salient.
People want to experience order, predictability and control in their lives. These needs can be fulfilled by the family and society
(e.g. police, schools, business and medical care). For example, emotional security, financial security (e.g. employment, social
welfare), law and order, freedom from fear, social stability, property, health and wellbeing (e.g. safety against accidents and
injury).
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3. Love and belongingness needs - after physiological and safety needs have been fulfilled, the third level of human needs is
social and involves feelings of belongingness. The need for interpersonal relationships motivates behavior Examples include
friendship, intimacy, trust, and acceptance, receiving and giving affection and love. Affiliating, being part of a group (family,
friends, work).

4. Esteem needs are the fourth level in Maslow’ s hierarchy - which Maslow classified into two categories: (i) esteem for
oneself (dignity, achievement, mastery, independence) and (ii) the desire for reputation or respect from others (e.g., status,
prestige). Maslow indicated that the need for respect or reputation is most important for children and adolescents and
precedes real self-esteem or dignity.

5. Self-actualization needs are the highest level in Maslow's hierarchy, and refer to the realization of a person's potential,
self-fulfillment, seeking personal growth and peak experiences. Maslow (1943) describes this level as the desire to accomplish
everything that one can, to become the most that one can be. Individuals may perceive or focus on this need very specifically.
For example, one individual may have a strong desire to become an ideal parent. In another, the desire may be expressed
economically, academically or athletically. For others, it may be expressed creatively, in paintings, pictures, or inventions.
Theory X and Y
The Theory X and Theory Y are the theories of motivation given by Douglas McGregor in 1960’ s. These theories are based on the premise that
management has to assemble all the factors of production, including human beings, to get the work done. McGregor believed that management
can use either of the needs to motivate his employees, as grouped under theory X and theory Y. But however, the theory Y yields better results
than the theory X.

Theory X: Theory X relies on the authoritarian style of management, where the managers are required to give instructions and keep a close
check on each employee. As it is assumed, the employees are not motivated, and they dislike working. This theory is based on the following
assumptions:

1. The employee is lazy and dislikes work.

2. He is not ambitious and dislikes responsibility and therefore prefers to be led.

3. The employee is self-centered and indifferent towards the organizational interest.

4. Management is responsible for assembling all the factors of production, Viz. Money, material, equipment, people.

5. The managers are required to control his employees, manage their efforts, motivate them, modify their behavior to comply with the
organizational needs.

6. The management must intervene to keep the employees working towards the economic ends. The employees must be persuaded, rewarded,
motivated, punished, controlled to get the work completed
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Theory Y: Theory Y relies on the participative style of management, where the managers assume
that the employees are self-directed and self- motivated to accomplish the organizational objectives.
Thus, here the management attempts to get the maximum output with least efforts on their part.
Following are the assumptions of Theory Y:
1. The average human being does not inherently dislike work, they are creative and self-motivated and likes to work with greater responsibilities.
2. Employees are self-directed and self-controlled and therefore the threat of punishment is not only the means for getting the desired results.
3. The extent to which an employee is committed to objectives is determined by the rewards associated with their achievement. The most
significant rewards in this context could be the satisfaction of the ego and the fulfillment of self-actualization needs.
4. The average human being is ambitious and is ready to take responsibilities. He likes to lead rather than to be led by others.
5. The employees exercise a relatively high degree of imagination and creativity in solving the complex organizational problems.

Thus, theory X and theory Y are two contrasting models that depict the set of assumptions a manager holds on his employees, which may or
may not coincide with their general way of behaving. Therefore, these theories are based on the attitude, not attributes.
Quantitative Approach to Management
• The quantitative approach involves the use of quantitative techniques to improve decision making. This approach has
also been labeled or .

• The third major school of management thought began to emerge during World War II. During the war, government
officials and scientists in England and the United States worked to help the military deploy its resources more
efficiently and effectively. These groups took some of the mathematical approaches to management developed
decades earlier by Taylor and Gantt and applied these approaches to logistical problems during the war. They
learned that problems regarding troop, equipment, and submarine deployment, for example, could all be solved
through mathematical analysis. After the war, companies such as DuPont and General Electric began to use the
same techniques for deploying employees, choosing plant locations, and planning warehouses. Basically, then, this
perspective is concerned with applying quantitative techniques to management. More specifically, the quantitative
management perspective focuses on decision making, cost-effectiveness, mathematical models, and the use of
computers. The two branches of the quantitative approach are management science and operations management.
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The quantitative approach was propounded by C. W Churchman and his colleagues around the year 1950. This approach is also
known by the name of Operational Research or Operational Analysis.
The classical approach lays stress upon the physical resources while the neo-classical approach gives importance to human
resources. Both these approaches are silent about some of the most serious problems usually faced by the managers.
The quantitative approach to management makes some suggestions to solve different problems facing the managers. It tells
the managers to solve their problems with the help of the mathematical and statistical formulas. Some special formulas have
been prepared to solve managerial problems.
(i) Theory of Probability,
(ii) Sampling Analysis,
(iii) Correlation / Regression Analysis,
(iv) Time Series Analysis,
(v) Ratio Analysis,
(vi) Variance Analysis,
(vii) Statistical Quality Control,
(viii) Linear Programming,
(ix) Game Theory,
(x) Network Analysis,
(xi) Break-Even Analysis,
(xii) Waiting Line or Queuing Theory,
System Approach to Management
• Systems approach to management developed after 1950. Many pioneers during as E.L Trist, AK Ria,
F.E. Kast, and R.A Johnsm have made significant contributions to this approach.

• This systems approach looks upon the management as a ‘ System’ of as an organized whole
make up of sub-systems integrated into a unity or orderly totality. The attention should be given so
overall effectiveness of the system rather than effectiveness of any sub-system if isolation. It
took where management process school left off in attempting to unify management theory. It
emphasizes the inter-relatedness and inter-dependence of all activities within an organisation. It is
based on system analysis. It attempts to identify the nature of relationships of various parts of the
system. A system is a set of inter-connected elements or component parts to achieve certain goals.
An organization is viewed by the modern authors as an open system. An organisation as a system
has five basic parts:
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1. Input,

2. Process,

3. Output,

4. Feedback and

5. Environment

Systems approach to management provides a conceptual basis as well as guidelines for establishing
a more efficient system for planning, organisation, directing and controlling. It forces the manager to
look upon his business as an open adaptive system. Information is an important part of the system
because an organisation must act and interact with its environment.
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Thinking of organizations as systems provides us with a variety of important viewpoints on organizations, such as
the concepts of open systems, subsystems, synergy, and entropy.

Open system are the system that interact with their environment whereas a close system do not
interact with their environment.

Sub systems- system within a broader system. example, the marketing, production, and finance functions
within Mattel are systems in their own right but are also subsystems within the overall organization. Because
they are interdependent, a change in one subsystem can affect other subsystems as well.

Synergy Two or more subsystems working together to produce more than the total of what they might produce
working alone.

Entropy is a normal process that leads to system decline when an organisation does not monitor feedback from
its environment and make appropriate adjustment it may fail.
Features of System Approach of Management
1. An organisation consists of many sub-systems.

2. All the sub-systems are mutually related to each other.

3. The sub-parts should be studied in their enter-relationships rather than in isolation from each other.

4. The organisation provides a boundary, which separates it from other systems. It determines which parts are internal and which parts are external.

5. The organisation is responsive to environmental effect. It is vulnerable is the changes in environment.

6. An organisation is a system consisting of many interrelated and interdependent parts or sub-systems. These elements are arranged orderly according to
some scheme such that the is more than the sum of the parts.

7. As a system an organisation draws inputs (energy. Information, materials, etc.). From its environment. It transforms these inputs and returns the output
back into the environment in the form of goods and services.

8. Every system is a part of a super system.

9. Organisation is an open system and it interacts with its environment. It is also a dynamic system ass the equilibrium in it is always changing.

10. Management is expected to regulate and adjust the system to secure better performance.

11. Management is multidisciplinary as it draws and integrates knowledge from various disciplines.
Contingency Perspectives
The contingency approach to management emerged from the real life experience of managers who
found that no single approach worked consistently in every situation. The basic idea of this approach
is that number management technique or theory is appropriate in all situations.

Contingency approach to management advocates that managerial actions and organisational design
must be appropriate to the given situation and a particular action is valid only under certain conditions.
There is no one best approach to management and it all depends on the situation. In other words,
managerial action is contingent upon external environment. There is no one best approach for all
situations. What a manager does depends upon a given situation and there is an active
inter-relationship between the variables in a situation and the managerial action. Contingency theory
attempts to analyse and understand these interrelationships with a view towards taking the specific
managerial actions necessary to deal with the issue.
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There are three major elements of the overall conceptual framework for contingency approach to
management; the environment, management concepts and techniques and the contingent
relationship between them.
Features of Contingency Approach to Management
1. Management is externally situational: the conditions of the situation will determine which techniques and
control system should be designed to fit the particular situation.
2. Management is entirely situational.
3. There is no best way of doing anything.
4. One needs to adapt himself to the circumstances.
5. It is a kind of “ if” “ then” approach.
6. It is a practically suited.
7. Management policies and procedures should respond to environment.
8. Managers should understand that there is no best way of managing. It dispels the universal validity of
principles.
IT Approach to Management
The current trend is that every manager embraces Information Technology (IT) solutions for delivering
quality services with improved administration. IT empowers everyone to perform effectively and
efficiently, for instance, retailers adopt new technologies, such as – the self-scanners; Indian Railways
adopt surge pricing wherein the railway tickets cost more when there is heavy demand – if the demand
is less, the tickets cost less.

Increasing volumes and value of e-transactions these days, is an indication of wide acceptance of IT in both
government and non-government circles including social sector. Automation is the current buzzword
everywhere whether the organisation is in the agriculture, manufacturing or service sector.

In other words, IT has become an integral part of our lives. Virtually there is no sector which is not
revolutionized by IT. IT is extensively deployed to develop IT applications, business solutions and devices.
The extent has been so widespread that one can switch on the air conditioner even while sitting at the
office.
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• Every organisation, irrespective of its size, today earmarks certain budget to embrace the new IT technologies so that they
can delight their customers with quality service. IT approach to management has directly triggered cost reduction and profit
maximisation besides increasing service efficiency.

• Social media, mobile technologies, analytics and cloud technologies (SMAC) are the leading technologies in IT space besides
artificial intelligence, big data analytics, machine learning, robotics, etc.

• IT approach to management has contributed to improvement in quality of life, shortening of transaction time, large number
of jobs in both software and hardware. IT approach is also known for loss of jobs, but, it is observed that new jobs and
software are created. This means that everyone must keep learning about new IT technologies on a continuing basis.

• Self-service kiosks in restaurants, airports, retail establishments, etc., facilitate the customer to complete the transactions
faster. Companies like Uber and Ola revolutionized the erstwhile overcrowded transport market through integration of
customers, channel partners (Auto/cab drivers are called channel partners) and other regulatory agencies through Global
Positioning System (GPS), one of the super formats of IT approach to Management.

• The IT approach to management delivers a unique experience to every stakeholder including customer, employee, team
leaders, management, owners, and general public and regulatory agencies.