Management Art or Science???

Management as an Art: Justification : Both are creative. Both are Innovative. Based on 3 factors: judgement, feeling, intuition. Both attempts to achieve well defined objectives. Both involves the use of skills, knowledge and intelligence. Based on Individual Approach and Style.

Management as a Science: Justification : It adopts Scientific method for decision-making. Physical Science and Management both has Universal Application. For both Social science and Management Identical results may not be available. Approaches to Management

The Classical Approach. The Behavioral Approach. The Quantitative Approach. The Classical Approach: Features of Classical Approach: Focuses on Job Content. Division of Labour. Standardization. Specialization Simplification. Physiological needs of workers.

Branches are:

Scientific, Administrative and Bureaucratic. A) Scientific Management Frederick Winslow Taylor (1856-1915) Time and Motion Study. Differential Payment. Scientific Selection and Training. Cordial Relationship between Management &Workers Reorganization of supervision.

B)Administrative Principles Henry Fayol (1841-1925) Henry Fayols FOURTEEN Principles of Management : Division of Work Subordination of individual interest to general interest Authority and Responsibility. Initiative. Stability of Tenure. Discipline. Unity of Command. Unity of Direction. Centralization. Remuneration. Scalar Chain. Order. Equity. Esprit de Corps (Team Spirit)

C) Bureaucratic Organization Max Weber (1864-1920)

Feature of Bureaucratic Organization:

Clear Division of Labour. Hierarchy of Authority.

Well defined Procedures. Selection and Promotion based upon technical competence and excellence.

Interpersonal Relations based on positions and not on Personality.

Legal Power and Authority

The Behavioral Approach/ Human Relations Approach 1) Elton Mayo and Hawthorne Experiment: Some of their major findings were: Employees behaviour is influenced by mental attitude. The workers develop a common psychological bond. Human and Social motivation plays a great role than financial incentives. A group behaviour can dominate group preferences. When workers are given special attention their productivity increases.

2.

Abraham Maslows Need Hierarchy Theory :

The basic human needs as identified are : 1. Physiological needs. Actualization needs. 3. McGregors Theory X and Theory Y Theory X Traditional Assumptions About People 1.Dislikes work 2.Forced to achieve organization objective Theory Y Emerging Viewpoint About People 1. Learns to work naturally 2.Excise self direction and self- control 2.Security/ safety needs. 3.Social Needs. 4.Esteem needs. 5.Self-

3. Wants security of job 4. Avoids responsibility 5. Lacks Creativity 6. Dont use their intellectual potentialities

3. Satisfaction of ego 4. Seeks Responsibility 5. Uses Creativity 6. Partially use their intellectual potentialities

4.

Herzbergs Two Factor Theory of Motivation Hygiene Factors Company policies and administration. Supervision Working conditions. Interpersonal relations with superior and other subordinates. Salary. Job security. Status. Personal life

Motivating Factors Achievement Recognition Opportunity for growth and development. Responsibility

Opportunity for growth and development

The Quantitative Approach Popularly known as Operations Research (OR) techniques.This techniques help the management to improve their decisions by: Increasing the number of alternatives. Fastens Decision Making. Optimizing BALANCE. Linear Programming, Simultaneous

Evaluates Risks and Results

Equation, Inventory Modeling, Regression Analyses, Game Theory are few areas using Quantitative approach.

PLANNING
EXAMPLE :Ajay wanted to be a cricketer, but he was admitted in mamanement college by his father. After his graduation he and his father started unending search for a job, but no worthwhile job was forthcoming. He was advised by his father to take up a job at the call center at an attractive package. After two years he does introspection and holds himself guilty due to his messy life. Definition : KOONTZ and O'Donnell : Planning involves selecting enterprise objectives, departmental goals, Programmes, and determining the ways of reaching them. Planning, thus, provides a rational approach to pre-selected objectives. Philip Kotler : Planning is deciding in the present what to do in future. It is the process whereby companies reconcile their resources with their objectives and opportunities. Steps in PLANNING :-

Setting Goals to be achieved

Establishing certain assumptions about feature

Deciding the planning period/Time factor

Developing plans by all levels of management based on selected plan

Evaluating and selecting course of action

Finding alternative course of action

Measuring and controlling the progress

Planning involves : Determination of objectives and goals of the organization, and laying down specific targets. Appraisal of current conditions of resources. Collection of relevant data. Prediction of future development. Evolving alternative course of action. Weighting the merits and demits of each course. Working out the details of the selected course of action.

Essentials/ Components of a Good Business Plan : Simplicity. Unity of Purpose and Direction.

Clear Objective. Suitability. Flexibility.> Continuity.

Communication Comprehensive and Complete. Participation Full utilization of resource and opportunities.

Coordination

Advantages & Disadvantages :ADVANTAGES 1. Quick Achievement of Objective. 2. Bring Unity of Purpose and Direction. 3. Ensures full Utilization of Resources. 4. Avoids inconsistency in efforts. 5. Raises Competitiveness. DISADVANTAGES 1. It is very expensive and time consuming. 2. It make organizational structure more rigid. 3. It make delays in the process of decision-making. 4. It can not ensure certainty of future performance. 5. It is determined only on the basis of assumption, if the assumptions are not accurate, planning may not be a success. 6. Raises managerial efficiency. 7. Avoids Hasty decisions and Actions. 8. Ensure effective control on the organization. 6. It give only approximate results.

9. Acts as insurance against uncertainty. 10. Facilitates managerial function.

Forms:Points 1. Goals Strategic Planning It decides allocation of Resources to achieve business goals. 2. Levels 3. Period 4. Base It is done at higher level of management It is a long term It is based on long term forecasts and is more uncertain 5. Details It is not involve with day-to-day operations and hence it has minimum details. Tactical Planning It decides the detailed use of resources to achieve business goals It is done at lower level of management It is short term. It is based on past performance and is less uncertain. It is involve with dayto-day operations and hence it has more details.

Types of Planning :-

MISSION

OBJECTIVE

STRATEGIES

Single use Plans (Programmes and Budgets)

Standing Plans (Policies, Procedures, Method, and Rules)

For Non-Repetitive Activities

For Repetitive Activities

(A) STANDING PLANS (PERMANENT PLAN) : Mission : The basic purpose of the existence of the business is called the Mission. Objective: Objectives are the goals or the end results towards which all management activities are directed. It should be specific and set for different periods.

 They are the basic purpose of an enterprise. Strategies: A Corporate Strategy is a plan , that takes into account the environmental opportunities and threats and the organization strengths and weaknesses and provides an optimal match between the firm and the environment. It involves two important activities: a) Environmental Appraisal.

b) Corporate Appraisal a) Environmental Appraisal: i. ii. iii. iv. v. Political and Legal Factors. Economics Factors. Economics Factors. Competitive Factors. Social and Cultural Factor. b) Corporate Appraisal: i. ii. iii. Outstanding Leadership. Excellent Product Design. Low Cost Manufacturing Skill.

Policies: Policies are the broad guidelines to action.

 They are the basic statement serving as guides to the thinking and action of subordinates in repetitive situation. They are the first major step in converting the objectives into workable propositions. Procedures: Procedures provide a manner in which a particular work has to be done. They also provide a sequence of steps to be followed in execution of plan. These chronological series of steps to be followed in the execution of a plan.

Difference between Policy and Procedures POLICIES 1.General guides to both thinking & action. 2.Help in fulfilling the objectives of the Enterprise. 3.Polies are broad and allow for some Discretion. 4.Policies are establishes without any analysis. 3.Procedures are specific and lay down the sequence of definite acts. 4.Procedures are established a after thorough study and analysis. 2.Show the way to implement policies. PROCEDURES 1.General guide lines for action only.

Rules: A rule is a guide to action.

 It is nature of decision made by the management regarding what is to be done and what is not to be done in a given situation. 9. Standards: i. ii. A Standard is a measure of the level of achievement desired. It helps in comparing accomplishment with desired results.

(B) SINGLE-USE PLANS Programmes: Programmes are set of goals, policies, procedures, rules and other components require to carry out a course of action. A Project may be called a specific Programme. Budgets: a. A Budget is a basic plan or statement defining the anticipated cost of attaining an objective. b. It is considered both as a Planning and a Controlling device.

c. It is an appraisal of the expenses expected against the income anticipated for a particular future period of time.

Management By Objectives (MBO) Non-satisfactory results by the Classical Theory of Concept introduced by Peter Drucker. Focuses on accomplishment of well defined objective rather than on task and activities. It is a result-oriented process, informing employees about expectation of management as regards to their performance. It involves: Management.

a) Identification of organizational, divisional, departmental, group and individual objectives b) Formulation of effective managerial strategies, policies and procedures and c) Measurement of performance in terms and objectives. Definition of MBO George Odiorne, MBO is a process whereby superior and subordinate managers of an organization jointly define its common goals, define each individuals major area of responsibility in terms of results expected of him and use these measures as guides for operating the unit and assessing the contribution of each of its members.

Objectives of MBO To Identify Problems and Opportunities in Business. To Convert Identified opportunities into clear goals. To Set up a system to convert these goals into achievement. To Review the organization in the light of the objectives. To establish the objectives of each job and unit. To clarify the policies and systems to accomplish the objectives. To set up a review system. Features of MBO 1. Superior- Subordinate participation. 2. 3. 4. 5. Joint Setting. Joint Decision on Methodology. Makes way to attain maximum results. Support from Superior.

MBO PROCESS Steps of MBO: 1. Defining the job.

2. 3. 4. 5. 6.

Setting objectives. Developing action plan. Conducting Periodic Review. Performance Appraisal. Achievement of Objective.

Diagrammatical Representation
Organizational Purpose. Managerial Philosophies. Organizational Resources and Constraints. Environmental opportunities and constraints. Defining the job

Setting Objectives

Developing action plan

Conducting Periodic Review

Feedback

Performance Appraisal

Achievement of Objective

Suggestions for Improving Effectiveness of MBO I. Support from all.

II. III. IV. V. VI.

Acceptance by managers. Training of managers. Organizational commitments. Allocate adequate time and Resources. Uninterrupted information feedback

Benefits of MBO 1. The need for planning will be recognized. 2. 3. 4. 5. It provides for objectives and accountability for It encourages participative management. It helps in job enrichment. It provides for a good feedback system. performance.

DECISION-MAKING
To decide means to come to some definite conclusion for follow-up action. Decisions are made to achieve goals through suitable follow-up actions. Decision-Making is a Process by which selection of a course of action is take. Definition The Oxford Dictionary defines the term decision-making as the action of carrying out or carrying into effect.

 According to Haynes and Massie, A decision is a course of action which is consciously chosen for achieving a desired results. Importance/Advantages 1. It sets the ball rolling. 2. 3. 4. 5. Types Personal vs. Organizational Decisions a) Personal decisions pertain to the manager as an individual rather than to the manager as an individual rather than to organization. b) Organizational Decisions are those that managers make in their official capacity. Strategic vs. Operational decision. 1. Strategic decisions tend to influence the long - range plans. It involve the entire organization and not a single department. 2. Operational decisions are concern with the day-to-day operations of the enterprise. They deal with short-term plans. It facilitates the entire management process. it is a continuous management function. It is essential to face new problems and challenges. It is a delight and Responsible job.

Problem-Solving vs. Opportunity Decision. i. ii. Problem solving decisions are made to solve existing or anticipated problem. Opportunity decision is a positive action that takes advantage of potential growth or higher profits. Structured vs. Unstructured Decision. a) Structured decisions are programmed and includes policies, procedures, methods and rules. b) Unstructured decisions are non-programmed decisions and are relatively free from limitations imposed by prior decision. Crisis vs. research Decisions. a) A crisis decision is made under pressure and is characterized by surprise, stress, limited time and danger to high priority goals. b) A research decision does not involve any urgency and executives can take time to arrive at any decision. Initiative vs. Referred decision. a) Ambitious and aggressive managers make Initiative decisions. b) Managers who are timid and self-sitters play safe and prefer to remain inactive until a decision is Referred to them.