MANAGEMENT

Introduction
Organizations have
variety of goals.

managem
ent
Manpower
Money
Materials
Machinery
Methods
Fig: Management
as a Unifying force
One of the most important human activities is
managing.
Since people began forming groups to
accomplish aims they could not achieve as
individuals. Thus managing became essential
to ensure the coordination of individual efforts.
Definitions
Management is the process of designing and
maintaining an environment in which
individuals, working together in groups,
efficiently accomplish selected aims.
It is the organizational process that includes
strategic planning, setting objectives, managing
resources, deploying the human and financial
assets needed to achieve objectives, and
measuring results.



Management characterizes the process of leading
and directing all or part of an organization,
often a business, through the deployment and
manipulation of resources (human, financial,
material, intellectual or intangible).
It is the activity of getting things done with the
aid of people and other resources.
There are many definitions of management,
because:
It is a vast subject
It is concerned with human beings
It is a young developing discipline.
Management consists of three primary activities:
1. Management establishes a plan. Road
map for what work is going to be done.
2. Management allocates resources to implement
the plan.
3. Management measures the results to see how
the end product compares with what was
originally envisioned.

Management as a Process
Management as a Group/Team
Management as a Discipline
Management as an Activity
Functions of Management
1. Planning.
2. Organizing.
3. Leading.
4. Controlling.


Planning: Involves selecting missions and
objectives as well as the actions to achieve
them.
Organizing: Process of assigning tasks,
allocating resources and coordinating work
activities.
Leading: Process of arousing enthusiasm &
inspiring efforts to achieve goals
Controlling: Measuring & correcting individual
& organizational performance to ensure that
events conform the plans.


Who is a manager?
A manager is someone who coordinates &
oversees the work of other people so that the
organizational goals can be accomplished.
Is a person who supports & is responsible for the
work of others.
Team Leader, Dept. Head, Project Manager, Dean,
President, administrator etc.

Levels of Managers


Top Managers

Middle Managers


First-Line
Managers

Nonmanagerial
Employees



Top
Management
Middle Management
Lower Management
Responsibilities of First-line Managers:
Plan meetings & work schedules.
Clarify goals & tasks, & gather ideas for improvement.
Appraise performance & counsel team members.
Recommend pay increases & new assignments.
Recruit, train & develop team to meet performance
goals.
Encourage high performance & teamwork.
Inform team members about organizational goals &
expectations.
Inform higher levels of team needs & accomplishments.
Coordinate with other teams & support the rest of the
organization.
Types of Managers
1. Line managers:
Directly contribute to the production of
the organizations basic goods &
services.
2. Staff managers:
Use technical expertise to advise &
support line workers.



3. Functional managers: Responsible for
one area of activity.
4. General managers: Are responsible for
complex multifunctional units.
5. An administrator: Is a manager in a
public or nonprofit organization.
President



Manager perso. Manufacturing Manager Pur. Manager Fin



Plant Manager I Plant Manager II


Perso- Finan- M/g Purch- Perso- Finan- M/g Purch-
-nnel -ce -asing -nnel -ce -asing

Staff , Line, Functional

Managerial Roles
Henry Mintzberg grouped the roles of managers
into three categories:


Interpersonal roles:
1.The figurehead:
Representing the organization in
formal matters & serving as a symbol.
2. Leader:
Responsible for motivation of
subordinates; leading, staffing,
training, directing.
3. Liaison:
Interacting with peers & people
outside the organization; developing
external links.

Informational roles:
1.Monitor:
Receiving & collecting wide variety of information;
Utilizing the channels of information.
2. Disseminator:
Transmitting information within the organization.
3. Spokesperson:
Transmitting information to people outside the
organization.

Decision roles:
1. Entrepreneur:
Introducing changes, initiating
improvement projects.
2. Disturbance handler:
Taking charge when the organization is
threatened.
3. Resource-allocator:
4. Negotiator:

Managerial Skills
Robert L. Katz identified three basic types
of skills:
1. Technical skills
2. Human skills
3. Conceptual skills
Technical skills:
Job-specific knowledge & techniques needed
to proficiently perform specific tasks.
Human skills:
Ability to understand, motivate & get along
with other people.
Conceptual skills:
Ability to visualize the organization as a whole.
It refers to the ability to see the big picture.
Managerial skills at various levels:

Top
Management

Middle
Management

Lower level
Management
Conceptual
skills
Human
Skills
Technical
skills
Other skills:
Communication skills
Effectiveness skills
Customer skills, multitasking, negotiating skill,
setting priorities & performance standards.
Interpersonal skills;
Coaching & mentoring skills, diversity skills,
networking within & outside the organization.
Key Personal Characteristics for
managerial success
1. Communication
2. Teamwork
3. Self-Management
4. Leadership
5. Critical Thinking
6. Professionalism


Evolution & Various Schools to
Management Thought
Management Past & Present
Classical
Management
Approaches
Scientific
management
Administrativ
e principles
Bureaucratic
organization
Behavioral
Management
Approaches
The Hawthorne
studies &
Human
Relations
Maslows
theory
McGregors
theory
Argyriss theory
Quantitative
Management
Approaches
Management
science
Applied
quantitative
analysis today
Modern
Management
Approaches
Organizations
as systems
Contingency
thinking
Continuing
Management
Themes
Quality &
Performance
excellence
Global
awareness
Learning
organizations
21
st
century
leadership
Classical Management Approaches
Assumption: People at work act in a rational manner
that is primarily driven by economic concerns.
Scientific management:
The Principles of Scientific Management(1911)
- The principal object of management should be to
secure maximum prosperity for the employer, coupled
with maximum prosperity for the employee.
- Time-study, motion study(Frank & Lillian Gilbreth)
Principles of scientific management:
Each task must be scientifically designed so
that it can replace the old rule-of-thumb
methods.
Workers must be scientifically selected, trained
& developed.
Bring the scientifically designed jobs &
workers together so that there will be a match
between them.
There must be division of labour & cooperation
between management & workers.
Contributions of F.W. Taylor
Father of Scientific Management.
It is an approach which
emphasizes the scientific study of
work in order to improve worker
efficiency.
Using the scientific method to determine the one
best way of doing the job.
Key concepts:
1. Scientific task planning:
Is the amount of work which an average
worker can perform during a day under
normal working conditions. The ultimate goal
is to see that work is done in a logical
sequence promoting maximum efficiency.
2. Time & motion studies:
Advocated with a view to isolate the wasteful
& unproductive motion of the job.

3. Standardization:
standards have to be set in advance for the task,
materials, work methods, quality, time & cost,
working conditions etc.
4. Differential piece rate system:
Wage incentives were developed in most
scientific management programmes to motivate
workers. Differential piece rate system based
on actual performance of the worker.
5. Functional foremanship:
In order to achieve better production control,
the factory is divided into several components
each in charge of a specialist:
Route clerk
Instruction card clerk
Cost & time clerk
Gang boss preparatory part of work
Speed boss
Repair boss
Inspector
Shop disciplinarian

Administrative Principles

An approach that focuses on principles that can
be used by managers to coordinate the internal
activities of organizations.
Management functions:
Planning
Organising
Commanding
Coordinating
Controlling


Henry Fayol classified business
operations into 6 major activities:
Technical (Production & maintenance)
Commercial (Buying & selling)
Financial (Use of capital)
Security (Protection of property & persons)
Accounting (Keeping financial records)
Managerial
14 Principles of Management:
Division of work
Authority & responsibility
Discipline
Unity of command
Unity of direction
Subordination of individual interests to the common interest
Remuneration
Order
Centralization
Scalar chain
Equity
Stability of tenure of personnel
I nitiative
Esprit de corps
Bureaucratic organization
Weber was concerned that people were in
positions of authority not because of their
job-related capabilities, but because of their
social standing Organizations largely
failed to reach their performance potential.
A bureaucracy is a rational & efficient form
of organization founded on logic, order &
legitimate authority.
Characteristics of Webers bureaucratic
organizations:
Clear division of labour
Clear hierarchy of authority
Formal rules & procedures
Impersonality
Careers based on merit
Disadvantages:
Excessive paperwork/red-tape
Slow in handling problems
Rigid
Resistance to change
Employee apathy
Behavioral Management Approaches
Human Resource
Approaches
_________________
Assumption:
People are social &
self-actualizing
Hawthore Studies
___________________
Elton Mayo
Theory X & Theory Y
___________________
Douglas McGregor
Theory of human
needs
___________________
Abraham Maslow
Personality &
Organization
___________________
Chris Argyris
The Hawthorne Studies & Human
Relations
Hawthorne effect: The tendency of persons
singled out for special attention to perform
as expected.
The human relations movement: Suggests
that managers using good human relations
will achieve productivity.


Contributions of Elton Mayo
Undertook the famous experiments
at the Hawthorne Plant of the Western
Electric company between 1927-1932.
Changing illumination for the test group,
modifying rest periods, shortening work days
& varying incentive pay systems did not seem
to explain changes in productivity.
He concluded that improvement in productivity
was due to social factors such as morale,
satisfactory interrelationship between members
of a group & effective management.
Maslows Theory of Human Needs
Need- It is a physiological or psychological
deficiency that a person wants to satisfy.
Underlying principles:
Deficit principle
Progression principle
McGregors Theory X & Theory Y
Argyriss theory of Adult Personality
The management practices found in
traditional & hierarchical organizations with
the needs & capabilities of mature adults.
Believes that managers who treat people
positively & as responsible adults will
achieve the highest productivity.
Expand job responsibilities, allow more task
variety, & adjust supervisory styles to allow
more participation & promote better human
relations.
Quantitative Management Approaches
Assumption: Mathematical techniques can be
used for better problem solving.
Supported & driven by computer technology &
software programs.
Management Science
Uses mathematical techniques to analyze &
solve management problems.
Mathematical forecasting
Inventory modeling
Linear programming
Queuing theory
Network models
Simulations
Modern Management Approaches
People are complex & variable
They have many varied needs that can change
over time.
Organizations & managers should respond
individual differences.
They recognize that no one model or theory
applies universally to all situations.
Organizations as Systems
Chester Barnard
A system is a collection of interrelated parts
working together for a purpose.
A subsystem is a smaller component of a larger
system.
An open-system interacts with its environment
& transform resource inputs into outputs.
High performance by organizations occurs only
when each subsystem both performs its tasks
well & works well in cooperation with others.
Contingency Thinking
Tries to match management practices with
situational demands.
No expectation that one can/should find the
one best way to manage in all circumstances.

Continuing Management Themes
Quality & Performance Excellence
Include quality as a core value
TQM
A value chain is the sequence of activities that
transforms raw materials into finished goods or
services.
Management commitment
8 attributes of performance excellence:
Bias toward action
Closeness to the customers
Autonomy & Entrepreneurship
Productivity through people
Hands-on & value-driven
Sticking to the knitting
Simple form & lean staff
Simultaneous loose-tight properties

Global Awareness
Challenge Continuing efforts of businesses
around the globe to transform themselves into
truly world-class operations.
Lessons from the success of Japanese industry
Ouchi Theory z Describes management
emphasizing long-term employment,
consensus, & team-work.


Learning Organizations
Organization that has developed the
capacity to continuously learn, adapt,
improve & change, using the lessons of experience.
The watchdogs of the day are innovation & change.
Core ingredients or techniques to create LO:
1. Mental models:
Everyone sets aside old ways of thinking.
2. Personal mastery:
Everyone becomes self-aware & open to others.

3. Systems thinking:
Everyone learns how the whole
organization works.
4. Shared vision:
Everyone understands & agrees to
a plan of action.
5. Team learning:
Everyone works together to
accomplish the plan.
21
st
Century Leadership
Characteristics of 21
st

Century executives:
1. Global strategist
2. Master of technology
3. Inspiring leader
4. Model of ethical
behavior
Social Responsibility
Corporate social responsibility is defined as an
obligation of an organization to act in ways that
serve both its own interests & interests of its
many external publics (stakeholders).
Two views of social responsibility:
1. The classical view.
2. The socioeconomic view.
The classical view:
Managements only social responsibility
is to maximize profits.
Proponent- Milton Friedman.
Managers primary responsibility is to operate
the business in the best interests of the
stockholders.
Arguments against:
Loss of profits, increased costs, dilution of
purpose, lack of skills.

The Socioeconomic view:
Managements social responsibility goes
beyond making profits to include protecting &
improving societys welfare.
Supported by Paul Samuelson.
Arguments for:
Long run profits, better
public image,
better environment, less need
for government regulation.

Evaluating CSP
Social audit
A popular model for evaluating CSP in a social
audit, includes 4 criteria, in increasing order of
socially responsible activity:
1. Is the organizations economic responsibility
met?
2. Is the organizations legal responsibility met?
3. Is the organizations ethical responsibility
met?
4. Is the organizations discretionary
responsibility met?




Some definitions:
1. Productivity = outputs (within time period,
Inputs quality considered)

2. Effectiveness:
Is a measure of task or goal accomplishment.
3. Efficiency:
Is a measure of the resource cost associated
with goal accomplishment. In other words,
achievements of the ends with the least
amount of results.