HUT 310

MANAGEMENT for engineers

Module 1 - INTRODUCTION TO
MANAGEMENT THEORY

Mr. Fazludheen Chemmala

Assistant Professor
Dept. of Mechanical Engineering
Eranad Knowledge City Technical Campus, Manjeri
fazludheen05@gmail.com
 MANAGEMENT

• “Management as a discipline has attracted the

attention of academicians and practitioners to a very
great extent.”

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
 IMPORTANCE OF
MANAGEMENT
• Management is a critical element in the economic
growth of the country.
• Management is essential in all organized efforts, be it
a business activity or any other activity.
• Management is the dynamic, life giving element in
every organization.

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
 MANAGEMENT
Definitions
• According to Mary Parker Follet, Management is the art of getting
things done through people.

• According to Harold Koontz, Management is the art of getting things

done through and with the people in formally organized groups.

• According to Dalton E McFarland, Management is defined for

conceptual, theoretical, and analytical purposes as that process by
which managers create, direct, maintain, and operate purposive
organization through systematic, coordinated, co-operative human
effort.

• According to George R Terry, Management consists of planning,

organizing, actuating and controlling, performed to determine and
accomplish the objectives by the use of people and resources.
Mr. Fazludheen Chemmala, AP-ME,
EKCTC, Manjeri
 Need For Management

• Society has large and complex institutions with many people

working together .
• The relationship between managers and managed has changed
as compared to the older master-servant relation ship making it
more complex
• People have greater expectations from their jobs.

“In order to make all these things function properly, people have been trying to
evolve some methods and techniques. Such attempts have given the birth of
management as a separate discipline”

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
 Management Functions
or
Process of Management

“Management process suggests that all the

managers in the organization should
perform certain functions to get things
done by others”

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
 Management Functions
1. Forecasting
2. Planning
3. Organizing
4. Staffing
5. Directing
6. Coordinating
7. Controlling
8. Decision making
Mr. Fazludheen Chemmala, AP-ME,
EKCTC, Manjeri
 Management Functions
• Forecasting : It is necessary preliminary to planning. Forecasting estimates
what should be done in future. Forecasting begins with sales forecast, and is
followed by production forecast and forecasts for costs finance, purchase,
profit/loss etc.
• Planning : It is the conscious determination of the future course of action to
achieve the desired results. What to achieve ? When to achieve ? How to
achieve ?. It includes determination of objectives, setting rules and procedures,
determining projects, setting policies and strategies, budgeting etc.
• Organizing : it is the process of dividing work in to convenient tasks or
duties, grouping of such duties in the form of positions, and grouping of
various positions in to departments and sections and delegating authority to
each position so that the work is carried out as planned.
• Staffing : Here the Managers/ HR department select, train, place, promote and
(retire) qualified people. It is a continuous process.

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
 Management Functions
• Directing: When people are available in the organization, they must know what
they are expected to do in the organization. Superior managers fulfill this
requirement by communicating to subordinates about their expected behavior.
Through directing the actual performance of a subordinate is guided towards
company objectives.
Directing includes,
1. Giving instructions to subordinates
2.Guiding the subordinates to do the work
3.Supervising the subordinates to make certain that the work done by them is as
per the plans established.
Directing involves the following functions,
a) Leadership
b) Communication
c) Motivation
d) Supervision
Mr. Fazludheen Chemmala, AP-ME,
EKCTC, Manjeri
 Management Functions
• Leadership : It is the quality of the behavior of a person by which he can
inspire confidence and trust in his subordinates, get maximum cooperation
from them and guide their activities in organized effort.
• Communication : Communication is the process by which ideas are
transmitted, received and understood by others for the purpose of achieving
desired results. Communication may be verbal or written.
• Motivation : Inspiring the subordinates to do a work or to achieve company
objectives effectively or efficiently.
• Supervision : Supervision is necessary in order to ensure,

• 1. That the work is going on as per the plan established

• 2. That the workers are doing as they were directed

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
 Management Functions
• Coordinating: Means achieving harmony of individual effort
towards the accomplishment of company objectives. Make plans
to regulate the activities and communication of subordinates on
the job. Informal relationships within the organization always
tend to facilitate coordination
• Controlling : Controlling involves identification of actual results,
comparison of actual results with expected results as set by
planning process , identification of deviation between the two, if
any and taking of corrective action so that actual results match
with expected results.
– 1.Set standards
– 2.Measure Job performance
– 3.Take corrective action
Mr. Fazludheen Chemmala, AP-ME,
EKCTC, Manjeri
 Management Functions

• Decision Making : It is the process by which a course of action

is consciously chosen from a available alternatives for the
purpose of achieving desired results.
• An out standing quality of a successful manager is his ability to
make sound and logical decisions.

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
MANAGERICAL ROLES

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
 MANAGERICAL ROLES
Managerial roles refer to managerial activities. This can be grouped in to three.
• Interpersonal Role
 The figure head role : perform ceremonial and social duties
 The Leader Role
 The Liaison Role : with outsiders
• Informational Role
 The recipient Role : receiving information about the operation of an
enterprise
 The disseminator Role : passing information to subordinates
 The spokesperson Role: transmitting information to outside
• Decision Role
 The entrepreneurial Role
 The disturbance – handler Role
 The resource allocator Role
 The negotiator Role
Mr. Fazludheen Chemmala, AP-ME,
EKCTC, Manjeri
LEVELS OF MANAGERS

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
 TO P-LEVELMANAG ER S
• Most people who enter the field of management aspire to
become top-level managers—managers at the top one or
two levels in an organization.
• Top-level managers are empowered to make major decisions
affecting the present and future of the firm.
• Only a top-level manager, for example, would have the
authority to purchase another company, initiate a new product
line, or hire hundreds of employees.
• Top-level managers are the people who give the organization
its general direction; they decide where it is going and how it
will get there.
• The terms executive and top-level manager can be used
interchangeably. Mr. Fazludheen Chemmala, AP-ME,
EKCTC, Manjeri
 MIDDLE -LEVELMANAGERS

• Middle-level managers are managers who are neither executives nor

first-level supervisors, but who serve as a link between the two groups.
• Middle-level managers conduct most of the coordination activities within
the firm, and they disseminate information to upper and lower levels.
• The jobs of middle-level managers vary substantially in terms of
responsibility and income. A branch manager in a large firm might be
responsible for over 100 workers. In contrast, a general supervisor in a
small manufacturing firm might have 20 people reporting to him or her.
• Other important tasks for many middle-level managers include helping the
company undertake profitable new ventures and finding creative ways to
reach goals.
• Quite often the middle-level manager conducts research on the Internet to
gather ideas for new ventures.

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
 FIR ST- LEVE LMANAG E R S

• Managers who supervise operatives are referred to as first-

level managers, first-line managers, or supervisors.
• Historically, first level managers were promoted from
production or clerical positions into supervisory positions.
Rarely did they have formal education beyond high school.
• A dramatic shift has taken place in recent years, however.
Many of today’s first level managers are career school
graduates who are familiar with modern management
techniques.
• The current emphasis on productivity and quality has elevated
the status of many supervisors.

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
SKILLS REQUIRED
MANAGERICAL
SKILLS

CONCEPTUAL
SKILLS

TECHNICAL
SKILLS

HUMAN
RELATIONS
SKILLS
Mr. Fazludheen Chemmala, AP-ME,
EKCTC, Manjeri
CONCEPTUAL SKILL

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
TECHNICAL SKILL

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
HUMAN RELATIONS SKILL

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
Mr. Fazludheen Chemmala, AP-ME,
EKCTC, Manjeri
EVOLUTION OF MANAGEMENT
THOUGHTS
• CLASSICAL MANAGEMENT
THEORIES

• NEO-CLASSICAL MANAGEMENT
THEORIES

• MODERN MANAGEMENT THEORIES

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
 CLASSICAL THEORIES

• F.W Taylor’s SCIENTIFIC MANAGEMENT

THEORY.

• Henry Fayol’s ADMINISTRATIVE

MANAGEMENT THEORY.

• Max Weber’s BUREAUCRACY THEORY.

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
 F.W Taylor’s SCIENTIFIC
MANAGEMENT THEORY
1. Time and Motion study.
2. Differential Payment.
3. Drastic Reorganization of supervision.
4. Scientific Recruitment and Training.
5. Intimate friendly cooperation between
management and workers.

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
 F.W Taylor’s SCIENTIFIC
MANAGEMENT THEORY
1. Science, not rule of thumb.
2. Harmony, not discord.
3. Cooperation, not individualism.
4. Maximum output, not restricted output.
5. Specialization, not generalization.
6. Scientific selection, training and development
of persons, not on personal judgment.

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
 Henry Fayol’s ADMINISTRATIVE
MANAGEMENT THEORY
1. Division of work.
2. Authority and Responsibility.
3. Discipline.
4. Unity of Command.
5. Unity of Direction.
6. Subordination of Individual Interest to General Interest.
7. Remuneration.
8. Centralization.
9. Scalar Chain.
10. Order.
11. Equity.
12. Stability of tenure of personnel.
13. Initiative.
14. Esprit de Corps. Mr. Fazludheen Chemmala, AP-ME,
EKCTC, Manjeri
Max Weber’s BUREAUCRACY THEORY

1. There is insistence in following standard rules.

2. There is a systematic division of work.
3. Principle of hierarchy is followed.
4. It is necessary for the individual to have
knowledge of and training in the application of
rules.
5. Administrative acts, decisions and rules are
recorded in writing.
6. There is rational personnel administration.

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
 NEO - CLASSICAL THEORIES
• HUMAN RELATION THEORY by Elton Mayo
OR BEHAVIOURAL MANAGEMENT
THEORY (Hawthorne Experiments)
– Illumination Experiments
– Relay Assembly test room
– Interviewing Programme
– Bank wiring test room

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
 NEO - CLASSICAL THEORIES
• BEHAVIOURAL SCIENCE THEORY or
MOTIVATIONAL THEORY
– Maslow’s Need Hierarchy Theory
– McGregor’s Theory X and Theory Y

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
Maslow’s Need Hierarchy Theory

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
Maslow’s Need Hierarchy Theory

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
 Maslow’s Need Hierarchy Theory
• Maslow 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).
Mr. Fazludheen Chemmala, AP-ME,
EKCTC, Manjeri
 Maslow’s Need Hierarchy Theory
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. Belongingness, refers to a human emotional need for interpersonal
relationships, affiliating, connectedness, and being part of a group.
Examples of belongingness needs include friendship, intimacy, trust, and
acceptance, receiving and giving affection, and love.

4. Esteem needs are the fourth level in Maslow’s hierarchy and include self-worth,
accomplishment and respect. Maslow classified esteem needs 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.

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
McGregor’s Theory X and Theory Y

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
McGregor’s Theory X and Theory Y
• THEORY X • THEORY Y
– Dislike their work. – Happy to work on their own
– Avoid responsibility and need initiative.
constant direction. – More involved in decision
– Have to be controlled, forced making.
and threatened to deliver – Self-motivated to complete
work. their tasks.
– Need to be supervised at – Enjoy taking ownership of
every step. their work.
– Have no incentive to work or – Seek and accept
ambition, and therefore need responsibility, and need little
to be enticed by rewards to direction.
achieve goals – View work as fulfilling and
challenging.
– Solve problems creatively and
imaginatively

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
 MODERN MANAGEMENT
THEORIES
• QUANTITATIVE APPROACH

• SYSTEMS APPROACH

• CONTINGENCY APPROACH

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
 MODERN MANAGEMENT
THEORIES
• QUANTITATIVE APPROACH
– Provides managers with a scientific basis for solving
problems and making decisions.
– It uses a wide array of mathematical and statistical
techniques.
– The primary strength of management science is that it
enables managers to solve problems that are so
complex they cannot be solved by common sense
alone.
– A weakness of management science is that the answers
it produces are often less precise than they appear.
Mr. Fazludheen Chemmala, AP-ME,
EKCTC, Manjeri
 MODERN MANAGEMENT
THEORIES
• SYSTEMS APPROACH
– The systems approach to management is more a
perspective for viewing problems than a school of thought.
– It is based on the concept that an organization is a system,
or an entity of interrelated parts.
– If you adjust one part of the system, other parts will be
affected automatically.
– The organization transforms inputs into outputs and
supplies them to the outside world. If these outputs are
perceived as valuable, the organization will survive and
prosper.
– The feedback loop indicates that acceptance of the outputs
by society gives the organization new inputs for
revitalization and expansion.
Mr. Fazludheen Chemmala, AP-ME,
EKCTC, Manjeri
MODERN MANAGEMENT
THEORIES

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
MODERN MANAGEMENT
THEORIES

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
 SYSTEMS APPROACH

ADVANTAGES DISADVANTAGES

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
 MODERN MANAGEMENT
THEORIES
• CONTINGENCY APPROACH
– Also known as SITUATIONAL APPROACH TO
MANAGMEMENT.
– The contingency approach to management emphasizes that there is no
one best way to manage people or work.
– A method that leads to high productivity or morale in one situation may
not achieve the same results in another.
– Common sense also contributes heavily to the contingency approach.
– Experienced managers know that not all people and situations respond
identically to identical situations.
– The strength of the contingency approach is that it encourages
managers to examine individual and situational differences before
deciding on a course of action. Its major problem is that it is often used
as an excuse for not acquiring formal knowledge about management.
Mr. Fazludheen Chemmala, AP-ME,
EKCTC, Manjeri
TASKS AND RESPONSIBILITIES OF
PROFESSIONAL MANAGERS
• A Professional manager is an invaluable asset to the firm. His
primary job is directing employees and coordinating various
activities of the firm. For this, he needs communication,
technical, conceptual and human skills.
– Envisioning Goals
– Managing Growth
– Improving and Maintaining Efficiency
– Innovation
– Looking out for the competition
– Leadership
– Change Management
– Choosing correct Information Technology

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
TASKS AND RESPONSIBILITIES OF
PROFESSIONAL MANAGERS
 Envisioning Goals
The first and most important task of any manager is providing a
direction to the organization. This entails mapping out their visions
and missions. This is one task the manager must not delegate, but
perform himself. Defining the company’s objectives helps unify the
employees and gets them working towards a common goal.
 Managing Growth
One of the main roles and responsibilities of the manager is to
manage the growth and ensure the survival of the firm. There are
both internal and external factors that are a threat to this growth
and survival of the firm. Internal factors (such as choosing the
right technology, hiring the correct people, etc.) are mostly in the
firm’s control. External factors (government
policy, economic conditions, etc.) pose a concern the manager
must deal with.

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
TASKS AND RESPONSIBILITIES OF
PROFESSIONAL MANAGERS
 Improving and Maintaining Efficiency
The manager has many roles and responsibilities regarding the
efficiency of the firm. Firstly he must ensure that the firm is efficient,
i.e. resources are not being wasted. And then this efficiency has to be
effectively maintained.
 Innovation
It is the task of the manager to be innovative in his job. He must find
new and creative solutions to the problems faced by the firm.
Innovation not only means having new ideas but also cultivating and
implementing them. This is one of the on-going jobs of a professional
manager.
 Looking out for the competition
A manager has to plan and prepare for the competition in the market.
He must never be caught unaware, he must prepare for new and/or
increased competition.

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri
TASKS AND RESPONSIBILITIES OF
PROFESSIONAL MANAGERS
 Leadership
The quality of the leadership usually dictates the future of a firm.
Hence the manager must also be a good leader. He should be able to
inspire and motivate people to work towards the goals of the company.
A leader leads from the front, and the manager must also possess
exceptional qualities and work ethic that his team members can learn
from.
 Change Management
In any company or organization, change is a given. The manager has to
be the agent of change in such cases. It is his roles and responsibilities
to ensure the process of change is smooth and uneventful for the
company.
 Choosing correct Information Technology
This is a problem that all managers of today’s era are facing. There are
so many choices available in the market for various IT processes.

Mr. Fazludheen Chemmala, AP-ME,

EKCTC, Manjeri