INTRODUCTION
Organization: A group of people working together in a structured and coordinated
fashion to achieve a set of goals (profit, discovery of knowledge, social satisfaction).
Management:
Knowing exactly what you want (workers) to do, and then seeing that they
do it in the best and cheapest way. (Frederick Taylor)
Management is essentially an act of getting things done through the efforts
of other people. (L. Appley)
Management is what a manager does. ( L. A. Allen)
Management: 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
Basic Purpose of Management
EFFICIENTLY
Using resources wisely and
in a cost-effective way
(Example: Toyota produces high quality product at relatively low costs is efficient)
And
EFFECTIVELY
Making the right decisions and
successfully implementing them
(Example: Toyota Produces stylish and designed cars that inspire
consumer confidence)
Management in Organization
Planning
and decision Organizing
making
Inputs from the environment
• Human resources Goals attained
• Financial resources • Efficiently
• Physical resources • Effectively
• Information resources
Controlling Leading
Manager
Manager is someone whose primary responsibility is to carry out the management
process.
The Management Process
Planning and Organizing
Decision Making
Setting theorganiza- Determining
tion ’s goals and best to
deciding how best activities
to achieve them resource
Controlling Leading
Monitoring Motivating
and of the
ongoing to work in the
to facilitate interests of
attainmen organizatio
Planning: setting an organization’s goals and deciding how best to achieve them.
Decision making: part of the planning process that involves selecting a course of
action from a set of alternatives
Setting an organization’s goals and selecting a course of action from a set
of alternatives. Decision making is the part of planning.
Serving as guides for future activities
Helps managers know how to allocate their time and resources
Organizing: grouping activities and resources in a logical fashion
Determining how activities and resources are grouped.
Job design, departmentalization, authority, line and staff role
Leading: the set of processes used to get members of the organization to work
together to further the interest of the organization.
Understanding basic individual and interpersonal process
Controlling: Monitoring organizational progress toward goal attainment.
setting standard, evaluating performance and making corrections in case of
deviations
Kinds of Managers by Level and Area
Levels of Management
Top managers
Middle managers
First-line managers
Marketin Financ Operation Othe
Human Administratio
Areas of management
M t
Kinds of Managers by level
Top Managers
The relatively small group of executives who manage the organization’s
overall goals, strategy, and operating policies.
Middle Managers
Largest group of managers in organizations who are primarily responsible
for implementing the policies and plans of top managers. They supervise
and coordinate the activities of lower-level managers.
First-Line Managers
Managers who supervise and coordinate the activities of operating
employees.
Kinds of Managers by Areas
Marketing Managers
Work in areas related to getting consumers and clients to buy the
organization’s products or services.
Financial Managers
Deal primarily with an organization’s financial resources. (accounting,
investment, cash management)
Operations Managers
Concerned with creating and managing the systems that create
organization’s products and services. (production control, inventory,
quality, plan layout site selection
Human Resource Managers
Involved in human resource planning, recruiting and selection, training
and development, designing compensation and benefit systems,
formulating performance appraisal systems.
Administrative Managers
Generalists who are familiar with all functional areas of management and
who are not associated with any particular management specialty.
Other Kinds of Managers
Specialized managerial positions directly related to the needs of the
organization.
Basic Managerial Roles (REF: Henry Mintzberg)
Interpersonal Roles
Figurehead (Visitor to dinner, Ribbon cutting)
Leader (Hiring, training, encouraging employee)
Liaison (coordinating between people, groups, or organisation)
Informational Roles
Monitor (Scanning industry reports)
Disseminator (transmitting information)
Spokesperson (out side the unit or org)
Decisional Roles
Entrepreneur (Developing new idea)
Disturbance handler (Resolving conflict)
Resource allocator (Distribution of resources)
Negotiator (Supplier and labor union)
Managerial Skills
Technical Skills
Interpersonal Skills
Conceptual Skills
Diagnostic Skills
Management Skill Mixes at Different levels of Org.
Scope of Management
Profit Seeking
Large Business
Small and Start-up business
International Management
Not for Profit
Government Org
Educational Org
Healthcare Facilities
Management in Non-traditional Setting
Perspectives of Management
Classical Perspective
Scientific Management
Administrative Management
Behavioral Perspective
Quantitative Management Perspective
Management science
Operations management
The Systems Approach
The Contingency Approach
Classical Management Perspective
Scientific Management (Frederick Taylor,1856–1915)
Concerned with improving the performance of individual workers (i.e.,
efficiency).
Grew out of the industrial revolution’s labour shortage at the beginning of
the twentieth century.
Replaced old methods of how to do work with scientifically-based work
methods to eliminate “soldiering,”
Believed in selecting, training, teaching, and developing workers.
Used time studies of jobs, piece-work pay systems to control and motivate
employees.
Treat people mechanistically
1 2 3 4
Supervise employees
Develop a science Scientifically select Continue to plan
to make sure they
for each element of employees and then follow the prescribed the work, but use
the job to replace old train them to do the job methods for performing workers to get the
rule-of-thumb methods as described in step 1 work done
their jobs
Administrative Management
A theory that focuses on
managing the total organization.
Henri Fayol (1841 -1925) was the pioneer
Identification of the specific management functions planning, organizing,
leading, and controlling.
Also introduced 14 principles of management
• Division of labour
• Authority
• Discipline
• Unity of Command
• Unity of Direction
• Subordination of individuals to the common good
• Remuneration
• Centralization
• Scalar Chain
• Order
• Equity
• Stability
• Initiative
• Esprit de corps
• [details: table 2.1]
Behavioral Perspective
Emphasizes individual attitudes and behaviors, and group processes
Elton Mayo one of the pioneers was popular for the Hawthorne study
Resulted in human relations movement i.e. the workers respond to the social
context of the workforce
Consequence was the development of field like Organizational behavior,
industrial psychology
Provided important insights into motivation, group dynamics, and other
interpersonal processes in organization
Quantitative Management Perspective
Applies quantitative techniques to management
Two branches of this approach are
Management science
Operations Management
Management science focuses on the development of mathematical models
Operations management concerns with helping the org. more efficiently produce
its products or services
Cannot predict or fully explain human behavior in org.
The Systems & The Contingency Approaches
Systems Approach
Considers the management of org. as a system consisting of variety of
dynamic elements.
Assumes an input – transformation - output – feedback process in
management
Contingency Approach
Suggests that appropriate managerial behavior in a given situation depends
on or is contingent on, a wide variety of elements
