Industrial to Management
What Is Management?
What Is Management?
• F.W. Taylor (1911), the father of scientific
management: 'Management is the art of
knowing what you want to do ... in the best
and cheapest way.'
What Is Management?
• Peter Drucker (1954), who attempted to
narrow the debate: 'It is a multipurpose organ
that manages a business and manages
managers and manages workers and work.'
What Is Management?
• Harold Koontz (1961): 'Management is the art
of getting things done through and with
people in formally organized groups. It is the
art of creating the environment in which
people can perform and individuals could
cooperate towards attaining of group goals. It
is the art of removing blocks to such
performance, a way of optimizing efficiency in
reaching goals.'
What Is Management?
• George R. Terry (1977): 'Management is a
distinct process consisting of planning,
organizing, actuating, and controlling,
performed to determine and accomplish the
objectives by the use of people and
resources.'
What Is Management?
• Management is a set of activities (including
planning and decision making, organizing,
leading, and controlling) that direct at an
organization’s resources (human, financial,
physical, and information) with the aim of
achieving organizational goals in an efficient
and effective manner.
What Is Management?
• Management is optimization of constraining resources
to achieve some intended goals.
• 'Resources' is a broad term and it encompasses
everything that we require as inputs, including
knowledge and information inputs.
• Resources are not available in abundance.
• There always exist resource constraints.
• Every organization tries to achieve its charted goals
and objectives through efficient management and
proper allocation of scarce resources.
Management Cont…
Characteristics of Management
1. Management is an organized activity.
2. Management is aligned with organizational objectives.
3. Management optimizes constraining resources.
4. Management works with and through people.
5. Management is decision making.
6. Management is a science as well as an art.
7. Management is universal and intangible.
8. Management is an inter-disciplinary approach.
9. Management is a social process.
10. Management is a strategic function.
11. Management is a profession.
Different Dimensions of Management
• Productivity orientation
– concerned with increased productivity
• Human relations orientation
– emphasize on relationships among people
• Decision-making orientation
– focus on decision making as the primary function of
management
• Leadership orientation
– highlights leadership as the essence of management
• Process orientation
Efficiency and Effectiveness
• Efficiency
– By efficient, we mean using resources wisely and
in a cost effective way
• Effectiveness
– By effective, we mean making the right decisions
and successfully implementing them.
Decision Situations
• Efficient but not effective
• Effective but not efficient
• Both efficient and effective
• Neither efficient nor effective
The Management Process / Functions
Planning
• Planning is deciding in advance what is to be
done.
• It is the future course of action
Types of Plans
Organizational Level
i. Corporate
ii. Divisional
iii. Functional
Time Period Focus
iv. Long range i. Strategic
v. Medium range ii. Operational
vi. Short range iii. Tactical
Types of Planning
Decision-making
• Decision-making is the act of choosing one
alternative from among a set of alternatives.
Decision-making Steps/Process
• Recognizing and defining the nature of a
decision situation,
• Identifying alternatives,
• Evaluating alternatives,
• Choosing the "best" alternative,
• Putting it to practice and
• Follow up.
Organizing
• Organizing means determining how activities
and resources are to be grouped.
• The basic elements of organizing include
– job design,
– departmentalization,
– authority relationships,
– span of control, and
– line and staff roles.
Leading
• Leading means the set of processes used to get
members of the organization to work together to
further the interests of the organization.
• Leading involves a number of different activities
and processes such as,
– motivating employees,
– leader's efforts to influence others,
– managing interpersonal relations and communication,
– managing work groups and teams
Controlling
• Controlling means monitoring organizational
progress toward goal attainment.
• It includes a series of activities such as
– determining standard,
– measurement of actual performance,
– identifying deviation if any, and
– taking corrective actions if any deviation is found.
Kinds of Managers
Top Managers
• Small group of executives who manage
the overall organization, the strategic
level.
• Titles: president, vice president, chief
executive officer (CEO)
• Their functions and responsibilities are
diverse and varied including making
strategy, policies & plans and so on.
• They determine the fate of the
organization.
• They represent the organization with
other organizations, government
representatives, and foreign countries
and so on.
Middle Managers
• The largest group that implements the
strategies developed at the top and
coordinates and supervise the activities of the
first line managers.
• The titles include operations managers,
divisional head, regional managers etc.
First-Line Managers
• Supervise and coordinate the activities of
operating employees.
The fundamental management skills
1. Technical Skills: Necessary to accomplish or
understand the specific kind of work being
done.
– These skills are especially important for first line
managers.
Management skills cont…
2. Interpersonal Skills: The ability to
communicate with, understand, and motivate
both individuals and groups.
– Be able to get along with: Subordinates, Peers,
and those at higher levels.
Management skills cont…
3. Conceptual Skills: A manager’s ability to think
in the abstract. The mental capacity to:
– Understand organizational goals and its
environment.
– How the organization is structured.
– Viewing the organization as system.
Management skills cont…
4. Diagnostic Skills: Skills that enable a manager
to visualize the most appropriate response to
a situation.
5. Communication Skills: A manager’s abilities
both to
– effectively convey ideas and information to others
and
– effectively receive ideas and information from
others
Management skills cont…
6. Decision-making Skills: A manager’s ability to
– correctly recognize and define problems and
opportunities and
– select an appropriate course of action to solve
problems and capitalize on opportunities.
7. Time-management Skills: The manager’s ability
to
– prioritize work,
– to work efficiently, and
– to delegate appropriately.
Principles of Administrative Management
• Henri Fayol (29 July 1841 – 19 November
1925) was a French mining engineer, mining
executive, author and director of mines who
developed a general theory of business
administration that is often called Fayolism.
• He is widely acknowledged as a founder of
modern management method.
Principles of Administrative Mgt Cont…
• 1. Division of labor
– It is the principle of job specialization, where each job is
broken down into small parts and then assigns the
responsibility to the competent person.
– It will enhance the employee's expertise about the
particular job.
• 2. Authority and accountability
– It clearly defines the rights and responsibility of manager.
– It defines the area of action, initiative and responsibility
of each manager.
Principles of Administrative Mgt Cont…
• 3. Discipline
– Members in an organization need to respect the
rules and agreements that govern the
organization. To Fayol, discipline will result from
– good leadership at all level of organization,
– fair agreements, and
– judiciously enforced penalties for infractions.
Principles of Administrative Mgt Cont…
• 4. Unity of command
– It is the safeguard against
dualism of control.
– Each employee must receive his
or her instructions about a
particular operation from only
one person.
– Fayol believed that if an
employee was responsible to
more than one superior, conflict
in instruction and confusion of
authority would result.
Principles of Administrative Mgt Cont…
• 5. Unity of direction
– Those operations within an organization that have the
same objectives should be directed by only one manager.
– For example, the personnel department in a company
should not have two directors each with a different
hiring policy.
• 6. Superiority of general interest over individual
interests
– In any undertakings the interests of employees should
not take precedence over the interests of the
organization.
Principles of Administrative Mgt Cont…
• 7. Remuneration
– Adequate remuneration secures a committed work force
and sustains employee's interest and participation.
– Compensation for work done should be fair to both
employees and employer.
• 8. Centralization
– Decreasing the role of subordinates in decision making is
centralization; increasing their role is decentralization.
– Fayol believed that manager should retain final
responsibility but they also need to give their subordinates
enough authority to do their jobs properly.
Principles of Administrative Mgt Cont…
• 9. Scalar chain
– Scalar chain is the principle of the observance of
the chain of command, which discourages level
jumping unless and until serious situation occurs.
• 10. Order
– Materials and people should be in the right place
at the right time.
– In particular people should be in the jobs best
suited for them.
Principles of Administrative Mgt Cont…
• 11. Equity
– Equity is the law of the social world, which alone
secures loyalty of employees and their cooperation.
– Manager should be both friendly and fair to their
subordinates.
• 12. Stability and security
– It is a basic motivation for attention to work, interest
and sustained efforts of the employees.
– To Fayol a high employee turnover rate is not good for
efficient functioning of an organization.
Principles of Administrative Mgt Cont…
• 13. Initiative
– Subordinates should be given freedom to imagine
and carry out their plans even some mistakes
result.
• 14. Esprit de corps
– It means cooperation and fellow feeling.
– It means everybody helps everybody else in a
close spirit of teamwork.
Principles of Scientific Management
• Frederick Winslow Taylor (March 20, 1856 – March 21, 1915) was an
American mechanical engineer who sought to improve industrial efficiency
• He was one of the first management consultants.
• Taylor was one of the intellectual leaders of the Efficiency Movement and
his ideas, broadly conceived, were highly influential in the Progressive
Era (1890s–1920s).
• In 1911, Taylor summed up his efficiency techniques in his book The
Principles of Scientific Management which, in 2001, Fellows of
the Academy of Management voted the most influential management book
of the twentieth century.
• His pioneering work in applying engineering principles to the work done on
the factory floor was instrumental in the creation and development of the
branch of engineering that is now known as industrial engineering.
• Taylor is known as the father of scientific management
Principles of Scientific Management Cont…
• 1. Science instead of rule of thumb
– Develop a science for each element of a worker’s job that replaces
rule of thumb.
– Use scientific method rather than intuition and experience to
determine the work methods and tools.
– Ensure that each motion or movement of workers is the most
efficient possible.
– Lay down standard time, standard methods, tools and working
conditions for each task.
• 2. Functional specialization
– Functional specialization should be a part of every job.
– Every worker should be a specialist in what he did and should know
his job well.
Principles of Scientific Management Cont…
• 3. Selection and Development
– Scientific selection, training and development of
workers.
– Tests should be used to identify the right person for each
job.
– A worker should be given job for which he is most
suitable.
• 4. Planning and scheduling
– Planning and scheduling of the work to ensure
availability of materials and other resources at the right
place, right time, and in proper condition.
Principles of Scientific Management Cont…
• 5. Standard time and method
– Standards with respect to methods and time for each task should
be established.
– Workers movements and the time needed to complete every
movement should be scientifically studied.
– Jobs should be redesigned incorporating highly efficient motions
with specific time required for each step in a task.
• 6. Wage incentives
– Wage incentives should be an integral part of each job.
– Workers should be paid a bonus if they complete the task before
the standard time.
– Different wage rates should be paid for different jobs.
Principles of Scientific Management Cont…
• 7. Co-operation
– Close co-operation between management and workers to
accomplish work in accordance with scientific method.
– Management can secure higher profits only when workers perform
their jobs with maximum efficiency.
– Similarly, workers can expect higher wages only when management
adopts an enlightened attitude toward them.
– Instead of fighting on sharing the gains of productivity, the two
sides should work together to maximize productivity so that each
can get a larger share.
– Both stand to gain by maximizing output.
– There should be a mental change in both parties from conflict to
cooperation.
Principles of Scientific Management Cont…
• 8. Division of responsibility
– A more equal division of responsibility between
management and workers.
– Planning should be separated from doing.
– Planning will be the responsibility of management
and doing will be the responsibility of workers.
