MANAGEMENT STUDIES�Module-1�Unit-1 �Introduction to Management

Dr. SUBBARAYUDU THUNGA

Associate Professor

Department of Management Studies

VFSTR Deemed to be University

SYLLABUS

• UNIT-I: Introduction to Management: Concepts of Management and Organization – Nature, Importance and Functions – Evolution of Management Thought: Taylor’s Scientific Management, Fayol’s Principles, Administrative Theory, Mayo’s Experiments. Theories of Motivation: Maslow and Herzberg. Leadership Styles. Corporate Social Responsibility from Indian Perspectives.
• UNIT-II: Operations Management: Plant Location Principles, Plant Layout Types, Productivity Measures, Project Management – Planning, Scheduling and Controlling, Inventory Control Techniques – EOQ, ABC Analysis, Stores and Purchase Management.
• UNIT-III: Human Resources Management (HRM): Concepts and Functions of HRM – Manpower Planning – Recruitment & Selection – Training & Development – Wage & Salary Administration – Promotion, Transfer and Separation – Performance Appraisal – Grievance Handling – Welfare Measures – Job Evaluation and Merit Rating, Ancient Gurukul systems, mentorship models, values-based leadership
• UNIT-IV: Marketing Management: Evolution and Functions – Selling vs. Marketing – 4Ps & 7Ps of Marketing – Product Mix & Life Cycle – Price Mix & Pricing Methods – Place Mix & Channels – Promotion Mix Tools – Packaging & Process in Marketing.
• Emerging Trends in Management: Digital Transformation in Business – Role of AI in business, Remote & Hybrid Work Models, Digital Marketing Innovations, FinTech & Digital Payments, E-Commerce & Social Commerce.

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COURSE OUTCOMES

Meaning

• Management is the art of getting things done through people -- Harold Koontz
• Management is a distinct process of Planning, Organizing, directing, coordinating and controlling to determine and accomplish the objectives by the use of people and resources-- George R. Terry

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��NATURE OF MANAGEMENT�

Some authors regard management as science because there are well tested and experimented principles of management, some authors describe management as an art because more practice is required in management and some authors consider that management is profession.

How Management is a Science?

Elements in Science: Theories, Methods and Practice

How Management is an Art?

Elements in Art: Practical Knowledge, Personal skills and Creativity

How Management is a Profession?

Elements in Profession: Ethical code, Service motive, Presence of professional associations

Example: All India Management Association (AIMA)

�IMPORTANCE OF MANAGEMENT�

��LEVELS OF MANAGEMENT�

��FUNCTIONS OF MANAGEMENT�

• Planning: Being aware of opportunities, Establishing the objectives, Identify alternatives, Evaluating alternatives, Selecting the best alternatives, Formulating supporting plans, Number zing plans by budgeting
• Organizing: Identifying the activities for achieving the objective, Assigning the activities to employees, Delegation of authority and fixing responsibility, Establishing relationships for various activities.
• Staffing: Man power planning, Recruitment, Selection, Training and development, Performance appraisal and Transfer, Promotion, termination and lay off of employees.
• Directing/ Leading: Communication, Motivation and Leadership
• Co-coordinating: Establishing the relationship among organization members towards goals achievements.
• Controlling: Determination of Standards for measuring work performance, Measurement of actual performance, Comparing actual performance with the standard, Finding variance between the actual and standard performance and Taking corrective action to ensure attainment of objectives.

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FUNCTIONS OF MANAGEMENT

� THEORIES OF MANAGEMENT ��TAYLOR’S SCIENTIFIC MANAGEMENT �

• F.W Taylor is the father of scientific management. He carried out many experiments to find out the best way to work, over a period of more than two decades.
• Concept of Scientific Management: Scientific management based on careful observation, objective analysis and innovative outlook. In other words scientific management is the art of knowing exactly what is to be done the best way so doing it.

Principles of scientific Management

• Science to replace the rule of thumb: This principle says that we should not Use routine with old techniques of doing work, we should be constantly experimenting to develop new techniques which make the work much simpler, easier and quicker.
• Harmony in Groups Actions: There should be complete harmony between the managers (Management) and the workers. Organization should create such atmosphere.

Example: In Japanese companies’ paternalistic style of management is in practice. There is a complete openness between management and workers. If at all the workers go for a strike they wear a black badge but work more than normal working hours to gain the sympathy of management.  

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Principles of scientific Management Cont..�

• Cooperation, Not Individualism: According to this principle, all the activities done by different people must be carried on with a spirit of mutual cooperation. Competition should be replaced by Cooperation.
• Maximum Output: The management & workers should try to achieve maximum output. This will prove highly beneficial & useful to workers, management & society at large.
• Development of Workers: According to this principle, the efficiency of each and every person should be taken care of right from his selection. Training should be made. It should also be taken care that each individual should be allotted work according to his ability and interest. Such a caring attitude would create a sense of enthusiasm among the employees and a feeling of belongingness too.

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��HENRY FAYOL’S PRINCIPLES OF MANAGEMENT�

1. Division of Work: Specialization of tasks improves efficiency and productivity.
2. Authority and Responsibility: Authority and responsibility must go together for effective management.
3. Discipline: Obedience to rules and regulations ensures smooth organizational functioning.
4. Unity of Command: Each employee should receive orders from only one superior.
5. Unity of Direction: Activities with the same objective should have one head and one plan.
6. Subordination of Individual Interest to General Interest: Organizational interest must prevail over individual interest.
7. Remuneration: Employees should receive fair and just compensation for their work.
8. Centralization: There should be a proper balance between centralization and decentralization of authority.
9. Scalar Chain: A clear chain of command should exist from top to bottom in the organization.
10. Order: There should be a right person in the right place with proper arrangement of resources.
11. Equity: Management should treat employees with fairness, justice, and kindness.
12. Stability of Tenure: Job security reduces employee turnover and improves organizational performance.
13. Initiative: Employees should be encouraged to take initiative in planning and execution.
14. Esprit de Corps: Team spirit and unity strengthen the organization.

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��ELTON MAYO HAWTHORNE EXPERIMENTS�

Elton mayo is generally recognized as the father of human relations approach. The Elton mayo and his team members have conducted experiments in Hawthorne plant of Western Electric Company USA from 1924 to 1933.

• Phase 1. Illumination (Brightining) experiments (1924-27):
• This experiment was conducted to study the relationship between lighting (illumination) and worker productivity.
• When light intensity was increased, output increased. Surprisingly, even when illumination was reduced to normal levels, productivity still increased.
• Result: Productivity was not mainly influenced by physical factors like lighting. Instead, psychological and social factors played a significant role in improving worker performance.
• Phase 2. Relay assembly test group (1927-28):
• This experiment was conducted to examine how the working conditions affects the productivity, working conditions includes employee salaries, working hours, leisure time, work environment etc.
• A small group of six girls worked in a friendly and informal atmosphere under close supervision.
• Productivity and morale increased during the experiment.
• Result: Human and social factors (motivation, morale, group relations, supervision) have a stronger influence on productivity than physical working conditions.

Elton mayo Hawthorne experiments Cont…

• Phase 3. Interviewing programme (1928-30) :
• A three-year interviewing programme was conducted.
• More than 21,000 employees were interviewed.
• Result: The study confirmed that employees’ attitudes, emotions, and social relationships strongly influence productivity. Workers perform better when they feel heard, valued, and understood.
• Phase 4. The bank wiring observation room experiment (1931-32) :
• A group of 14 male workers (wiremen, soldermen, inspectors) was formed.
• A group incentive (bonus) scheme was introduced to increase output.
• It was expected that higher financial incentives would increase production.
• However, workers informally fixed their own standard level of output.
• Group members pressured anyone who tried to produce more than the agreed level.
• Result: Informal groups strongly influence individual behaviour. Social pressure can restrict productivity, even when financial incentives are attractive.

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���MOTIVATION-MASLOW’S THEORY OF HUMAN NEEDS��

According to Maslow employees have five types of needs, When the needs of employees are identified and satisfied, they will be happy and show improvement in performance.

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��HERZBERG’S TWO FACTOR THEORY OF MOTIVATION�

Herzberg developed a two-factor theory of motivation. He classified employee needs into two categories

1. Hygiene factor (Dissatisfiers)
2. Motivators

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��Comparison of Maslow theory with Herzberg theory �

��LEADERSHIP STYLES �

Concept of leadership: Leadership is the ability to work towards objectives enthusiastically.

Leadership styles

• Autocratic Leadership Style: Here, leaders command the followers and expects compliance from them for all the instructions given. They lead by his ability to withhold or give rewards or punishments. Here, no suggestions from the subordinates is entertained and an almost top down approach is seen.
• Democratic/Participative Leadership Style: Here leaders consult subordinates and involve them in decision making. They encourage discussion with the group leaders in two-way communication. They listen to followers, try to facilitate decision making.
• Free –Rein/Laissez –Faire Leadership Style: Free rein leadership are also called as laissez faire leadership. These leaders exercise little authority and give maximum freedom to subordinates while making decisions. It is a bottom-up approach. Suggestions from the followers are encouraged and rewarded. They give high degree of independence to the subordinates in their operations. The free –rein leader gives total freedom to the subordinates to set their own goals and also the means of achieving them.

Leadership styles

�CORPORATE SOCIAL RESPONSIBILITIY�

Corporate Social Responsibility (CSR) refers to the efforts made by companies to improve society and protect the environment. Although it is generally a voluntary activity, under Section 135 of the Companies Act, 2013, CSR is compulsory for certain companies. These provisions apply to any company that meets any one of the specified conditions in the previous financial year.

• Net worth of rupees five hundred crore or more
• Turnover  of rupees one thousand crore or more
• A net profit of rupees five crore or more

The provisions apply must spend 2% of their average net profit (last 3 years) on CSR.

Types of CSR

• Environmental Responsibility: Actions that promote sustainability and protect natural resources. Example: Reducing pollution, Conserving energy and encouraging recycling.
• Ethical/Human Rights responsibility: Fair operational policies, equal opportunities for all employees and respect human rights in every aspects of business.
• Philanthropic responsibility: Donating to an environmental or social cause. Example: Donations, Wellbeing of others or society, Welfare programs that improves people's lives.
• Economic responsibility: Adopting business practices that benefits both business and society. Example: Using sustainable packaging, Supporting local suppliers.

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Social Responsibility