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Introduction to management

Every organization - business, political, cultural or social has goals to achieve.

It is, therefore, necessary that steps should be taken to ensure that the goals are achieved as efficiently as possible.

People who are responsible for taking these steps are known as managers, and their functions taken together may be called management.

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Management defined

Management can be defined as the process of reaching organizational goals by working with and through people and other organizational resources.

Management has the following characteristics.

It is a process.
It concentrates on reaching organizational goals.
It reaches these goals by working with and through people and other organizational resources.

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Significance of Management

It helps in achieving group goals – Management creates team-work and coordination in the group.

Optimum utilization of resources – They provide training and guidance to employees so that they can make the best use of the available resources.

Minimizes cost – It gets maximum results through minimum input by proper planning and getting maximum output.

Survival and growth – It takes steps in advance to meet the challenges of changing environment.

Development of the nation – Efficient management leads to better economical production which helps in turn to increase the welfare of people.

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Characteristic of Management

Management is intangible – Management function cannot be physically seen but its presence can be felt.

Management is goal oriented

Management is universal

Management is needed at all levels

Management is an ongoing process Management is dynamic – Management is a dynamic and growth oriented function.

Management is a group activity

Management is a system of authority

Management is multi-disciplinary

Management is a composite process

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Management – Science or Art

Art – Art is skilful application of knowledge which entirely depends on the inherent capacity of a person which comes from within a person and is learned from practice and experience. In this sense, management is certainly an art.

Science – Science may be described as a systematized body of knowledge, based on proper findings and exact principles and is capable of verification. In this sense, management is a science.

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Levels of managers

Top level management – Top management consists of board of directors, managing directors, chief executives, general managers, etc.

Middle level management – Middle management consists of departmental heads, branch managers, etc.

Lower level management – Supervisory level consists of supervisors, superintendents, inspectors, etc.

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Skill required by Managers

Technical skills – Technical skill refers to ability to use equipment, methods and techniques involved in performing specific tasks.

Conceptual skills – Conceptual skill is the ability to recognize the different functions of business and ability to guide the organizational efforts to achieve the goal of the enterprise.

Human relational skills – The ability of a manager to work with, understand, and motivate people in the organization is known as human relational skill or interpersonal skills. Human relational skills include motivating skills and leadership skills.

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Categories of managers

The common way of differentiating between managers is to classify them into two brad categories viz., functional managers and general managers.

Functional managers – This group of mangers is responsible for given functional area of the organization. Some of the major functional areas are :-

Marketing managers
Financial manager
Production manager
Human Resource Manager
Operational managers, etc.

General Managers – General Managers manage a complete unit, such as a company, a subsidiary or an independent operating division

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Internal and external environment of management

Internal environment – The internal environment constitutes everything inside the firm that might affect the ability of managers to pursue certain actions or strategies.

External environment – The external environment constitutes everything outside a firm that might affect the ability of the enterprise to attain its goals.

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Functions of management

The functions of management describe managers' jobs or activities.

The managerial activities, grouped into : -

Planning
Organizing
Staffing
Leading
Controlling and
Coordinating

These functions are carried out by all managers, but the practices and methods must be adapted to the particular tasks, enterprises, and situation.

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Planning function

Planning is the process of establishing goals and suitable course of action to achieve those goals.

The plans should consist of goals, policies (guidelines for decision making), procedures (details of actions), rules (a rule is a plan that lays down a required course of actions with regard to a situation) methods, budgets, strategies and programmes.

Planning is necessary for proper utilization of resources (men, materials, machines, time and money) to achieve the objectives of the enterprise.

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Organizing function

Organizing is a process of grouping the various activities to be done and assigning duties and responsibilities to people in groups or departments.

The process of organizing involves identifying and grouping of activities to be performed, defining and delegating authority, casting responsibility and establishing relationships to enable people to work together effectively in accomplishing organizational objectives.

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Staffing function

Staffing involves manning the organization structure through proper and effective selection, appraisal and development of the employees to fill the roles assigned to the employers/workforce.

The objectives of staffing is to ensure that right type of people have been recruited for different positions.

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Leading function

Leading essentially involves activities like communicating with and motivating the employees.

By effectively leading, managers look to secure the best and willing cooperation of individuals and groups to achieve the organizational goals.

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Controlling function

Controlling can be defined as a process of setting standards, measuring actual performance, and taking corrective actions.

Controlling is a continuous process which measures the progress of operations and making sure that things are proceeding in the right direction as planned.

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Coordinating function

Coordination can be defined as a process of harmonizing the different functions of the different departments of the enterprise (such as production, sales, etc.)

Coordinating also involves harmonizing the individual goals of the subordinates with the goals of the organization, regulate their activities and regulate their communications.

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Management theories

Management theories (schools of management thought) are theoretical frameworks for the study of management.

Management theories are classified under :-

Classical management approach (1880-1930) – It contains of mainly three theories, namely,

Scientific management approach,
Administrative management approach and
Bureaucracy management approach

Neo-classical management approach (1930-1950) – Two branches contributed to the behavioral approach viz.,

Human relation movement
Behavioral approach

Modern management approach (1950-onword) – Important modern management approaches are: -

Contingency management theory
Systems approach
Theory Z approach and
Management science approach.

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Scientific Management

Scientific management is the result of applying scientific knowledge and scientific methods to the various aspects of management and various problems that arise from them.

The scientific management approach provides managers with a scientific basis for solving problems and making decisions.

Scientific management grew from the works of five people , viz., F. W. Taylor, Henry Gantt, Harrington Emerson, Frank and Lillian Gilberth.

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Contributions of F.W. Taylor towards scientific management

Frederick W. Taylor is known as the ‘father of scientific management’.

In Taylor’s view, if a work is analyzed scientifically it will be possible to find one best way to do it.

The techniques which Taylor regarded as its essential elements of scientific management are : -

Scientific task and rate-setting – Work study includes the following.

Methods study – Systematic recording and critical examination of ways of doing work to develop effective methods and reducing cost.

Motion study – Study of the movements in performing an operation with the purpose of eliminating useless motions.

Time study – To determine the proper time for performing the operation.

Fatigue study

Rate-setting – Differential piece wage system was suggested to obtain the best performance from the workers.

Planning the task – Plan the production thoroughly so that there is no bottle neck and the work goes on systematically.

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Contributions of F.W. Taylor towards scientific management

Selection and training – – Workers must be chosen on scientific basis considering their education, experience, skills, physical strength, etc.

Standardization – Scientific management aims at providing for a pre-determined standard for everything.

Standard product
Standard material
Standard tools and equipment –
Standardized working conditions

Specialization – Taylor advocated functional foremanship for achieving specialization. This technique was developed to improve the quality of work as single supervisor may not be an expert in all the aspects of the work. Therefore, workers are to be supervised by several specialists (foremen).

Mental revolution – – The technique of mental revolution involves a change in the attitude of workers and management towards each other.

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Contributions of Gantt

Henry.L.Gantt worked under Taylor and was his close associate.

Major contributions of Gantt are :-

He improved upon Taylor’s differential piece rate system and brought out his task and bonus plan.

Gantt’s task and bonus plan was so structured that the worker received a day’s wage even if he doesn’t complete the task. But if he completed the task in less than the prescribed time, he received a bonus.

Gantt developed the daily balance chart, now known as Gantt’s chart. The chart shows the work progress against time.

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Contributions of Gantt

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Principles of scientific management

Analyze work scientifically – To develop the best way of doing a job replacing the practice of old rule of thumb which is, depending on the practice of workers.

Divide work and responsibility so that management is responsible for planning work methods using scientific principles and workers are responsible for work.

Select workers best suited to perform the specific tasks.

Provide guidelines for worker performance – Train and develop each workman in the most efficient method for doing job.

Achieve support and cooperation from workman by arranging conditions, services, guidance and by giving them greater economic rewards

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Benefits of scientific management

Benefits of division of labour – The work is simplified and is carried out in most economical and efficient manner.

Reduction in the cost of production

Better quality products

Provision of better working conditions – Scientific management provides a proper atmosphere of work to the workers.

Proper methods of selection and training of workers – Right type of man is selected for the right type of job.

Increased wages for efficient workers.

Lesser production time

Better utilization of resources

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Administrative management

Administrative theory focused on the total organization.

The most notable contributor was Henry Fayol.

Fayol’s work was concerned with the higher levels of the organization.

Henry Fayol strongly felt that managers should be guided by certain principles and he developed the principles of management.

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Henri Fayol’s principles of management

Division of labour – Division of work based on skills and interest of the workers.

Authority and responsibility – Authority without responsibility leads to irresponsible behavior whereas responsibility without authority makes the person ineffective.

Discipline – Discipline encourages employees to behave sensibly at work.

Unity of command – Employees should receive orders and instructions from one boss or supervisor only.

Unity of direction – There should be one plan and one head for each group of activities having the same objective.

Remuneration – Remuneration should be fair and provide satisfaction.

Degree of centralization – Centralization implies the concentration of decision making authority at the top management. According to Fayol, degree of centralization or decentralization depends on factors like size of business, experience of superiors, dependability and ability of subordinates, etc.

Equity of treatment – Manager should have fairness in treatment for all his subordinates.

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Henri Fayol’s principles of management

Stability – Stable workforce is an asset to the enterprise, because unnecessary labour is costly.

Initiative – Superiors should plan and encourage subordinates for the success of business.

Order – There should be proper, systematic and orderly arrangement of physical and social factors, such as land, raw materials, tools and equipments and employees respectively.

Scalar chain – There should be an unbroken line of authority and command at all levels from highest level (General Manager) to lowest ranks (workers).

Subordination of individual to general interest – The interests of one person should not take priority over the interests of the organization as a whole.

Espirit de corps – This principle emphasizes the need for team work among employees and shows the importance of communication in obtaining good team work.

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Bureaucracy management approach

'Bureau', is a French word meaning desk, or by extension, an office; thus, 'Bureaucracy' is rule through a desk or office, that is, a form of organization built on the preparation and dispatch of written documents.

Bureaucratic theory was developed by a German sociologist and political economist Max Weber (1864-1920).

The organization has a well-defined line of authority.

It has clear rules and regulations which are strictly followed. Often, public service with a large number of offices and employees like postal services are cited as examples of bureaucratic organizations.

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Neo-classical management theories

Neo-classical approach focused on the factors that affect human behavior at work.

Particularly, two branches contributed to the behavioral approach viz.,

Human relation movement and

Behavioral approach.

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Human relation movement

Elton Mayo is considered as the father of the human relations movement.

The human relations movement grew from the Hawthorne studies.

The Hawthorne Studies (or experiments) were conducted from 1927 to 1932 at the Western Electric Hawthorne Works in Chicago, where Harvard Business School Professor Elton Mayo examined productivity and work conditions.

The studies grew out of preliminary experiments at the plant from 1924 to 1927 on the effect of light on productivity.

Researchers were frustrated to discover that increasing light increased output, but reducing light also increased output.

They found, in general, that the improvement in productivity was due to social factors as morale, satisfactory interrelationships between members of a work group (a sense of belonging), and effective management.

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Behavioral approach

Behavioral approach focused mainly on psychological needs as a means of achieving economic goals.

Among the best-known contributors who helped behavioral approach were Abraham Maslow and Douglas McGregor.

Abraham Maslow is well renowned for proposing the Hierarchy of Needs Theory in 1943 in his paper ‘A theory of human motivation’.

Douglas McGregor advanced two beliefs for managers about human behavior - Theory X and Theory Y.

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Maslow’s needs hierarchy theory

This theory is based on the assumption that there is a hierarchy of five needs within each individual. These five needs are as follows.

Psychological needs – Psychological needs are the basic needs such as hunger, thirst and the need for shelter.

Safety needs – Safety needs include physical, environmental and emotional safety and protection.

Love needs or Belonging needs (social needs) – Social needs are the needs of the workers to belong and accepted by various groups.

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Maslow’s needs hierarchy theory

Esteem and status needs – Esteem needs to have competence, achievement, recognition, power, status, attention and admiration, etc. .

Self actualization and fulfillment needs – These needs include the needs of the worker to get opportunities, to have situations to fulfill his potential, etc.

According to the theory, once a given level is satisfied, a worker will be no longer motivated. The next higher level of need is to be activated in order to motivate the worker.

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Theory X and Theory Y

Theory X and Theory Y describe two very different attitudes toward workforce motivation.

McGregor argued that most managers behave in accordance with Theory X. But he maintained that Theory Y is more appropriate and effective as a guide for managerial action.

Theory X	Theory Y
Theory X assumes human beings to be inherently distasteful towards work.	Theory Y assumes that for human beings, work is natural as play.
Theory X assumes that people do not have ambitions and try to avoid responsibilities.	Theory Y assumes that people have ambitions and are eager to take up responsibilities in jobs.
People have little capacity creativity.	Theory Y assumes that creativity is widely distributed.
Lack self-motivation.	People are self-directed.
Managers are result oriented.	Managers are welfare oriented.

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Modern management theories

Important modern management approaches are : -

Contingency management theory,

Systems approach,

Theory Z approach and

Management science approach.

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Contingency management theory

The contingency approach (situational approach) stresses the absence of a single best way to manage and emphasizes the need for managerial strategies based on all relevant facts.

Each manager’s situation must be viewed separately, a wide range of external and internal factors must be considered and then the focus should be on the action that best fits the given situation.

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System approaches to Management

Systems theory is an approach based on the concept that organizations can be visualized as systems.

Every system has four major components/elements viz., inputs, transformation processes, outputs and feedback.

A system can either be open or closed. An organization that interacts little with its external environment (outside environment) and therefore receives little feedback from it is called a closed system. An open system, in contrast, interacts continually with its environment.

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Theory Z

William Quichi made a comparative study of American and Japanese management practices and he developed Theory Z .

Theory Z offers a hybrid management style which is a combination of American management style and a Japanese management style.

American organization	Japanese organization
Short-term employment.	Lifetime employment.
Individual decision making.	Collective decision making.
Individual responsibility.	Collective responsibility.
Rapid evaluation and promotion.	Slow evaluation and promotion.
Explicit control mechanisms.	Implicit control mechanisms.
Specialized career paths.	Non-specialized career paths.
Segmented concern for employee as an employee.	Holistic concern for employee as a person employee.

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Management science

The management science approach also known as quantitative approach.

This approach gained momentum during the 2^nd World War during which operations research teams were engaged to seek solutions to many complex problems of war.

These teams constructed mathematical models to simulate real life problems.

The quantitative approach to management makes use of scientific tools of several disciplines.

Tools such as linear programming, queuing theory, simulation models, CPM (Critical Path Method), PERT (Programme Evaluation Review Technique), inventory control and quality control tools were extensively used in this approach.

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Discussions

Give a brief account of the significance of the systems approach to the study of management.
Discuss the advantages and Limitations of system approach.
List four important interpersonal skills to be possessed by a manager.
Differentiate between management and administration.
Explain the various levels of management.
Discuss the nature and scope of management.
Explain the objectives and importance of management.
Describe the skills of a good manager.
Discuss the professionalization of management.
Define and describe the nature and goals of management. What are the functions of manager in your opinion? Explain.
Enumerate the various roles performed by managers as a part of their profession.
Distinguish between administration and management.
Is management a science or an art? Substantiate your response.
Define management.
Why management is called an art and science?
In the context of a car manufacturing firm, describe any four elements of the external environment.
Explanation about need for management.
Write any two points favour of management as a science and as an art.
List and elaborate five important roles of a manager.
List any four forces of the external environment.
Why the management of the organizations of the new era differ from old ones?
What are the different levels of management? (3) (April, 2022)
What is scientific management? (3)(April, 2022)
Explain the systems approach to management with a block diagram. (10) (April, 2022)
How are changes in the external environment compensated in the systems approach? (4)(April, 2022)
Explain Task and Responsibilities of a professional Manager. (8)(April, 2022)
Explain the importance of management in an organisation. (6)(April, 2022)