BMS 501

Module 1

Concept of Management

Management is a process of planning, decision making, organizing, leading, motivation and controlling
the human resources, financial, physical, and information resources of an organization to reach its goals
efficiently and effectively. To manage, it is needed to forecast and plan; to organize, to command, to
coordinate and to control are the key aspects of Media management according to Fayol. Management
is a process of planning organizing, directing and controlling available resources of an organization in
order to achieve the set goals of the organization.

Threefold Concept of Management

To understand the definition of management and its nature, a threefold concept of management
for emplacing a broader scope for the viewpoint of management. The threefold concept of
management often refers to the three core functions that are essential for effective management
across various organizations. These functions are planning, organizing, and controlling.

Planning: This is the process of defining organizational goals, establishing strategies to

achieve those goals, and developing plans to integrate and coordinate activities. Effective
planning involves forecasting future conditions, setting objectives, and determining the best
course of action to achieve desired outcomes. For instance, in a media company, planning
might include developing a content strategy, scheduling production timelines, and allocating
resources for marketing campaigns.

Organizing: This function involves arranging resources and tasks in a structured manner to
implement the plans developed. Organizing requires creating a framework of roles,
responsibilities, and authority within the organization. It includes designing organizational
structures, delegating tasks, and ensuring that resources (such as personnel, technology, and
finances) are effectively utilized. For example, a media firm may organize its departments into
production, distribution, and marketing teams, each with specific roles and responsibilities.

Controlling: This is the process of monitoring and evaluating performance to ensure that
organizational goals are being met. Controlling involves setting performance standards,
measuring actual performance, and taking corrective actions when necessary. In a media
context, controlling could involve tracking the success of content against viewership metrics,
ensuring budgets are adhered to, and adjusting strategies based on performance reviews to
optimize outcomes.

Together, these three functions form a comprehensive approach to management, ensuring that
organizations are effectively planning for the future, organizing their resources and tasks
efficiently, and maintaining control over their operations to achieve success.

McGregor’s Theory X and Theory Y

The idea that a manager’s attitude has an impact on employee motivation was originally
proposed by Douglas McGregor, a management professor at the Massachusetts Institute of
Technology during the 1950s and 1960s. In his 1960 book, The Human Side of Enterprise,
McGregor proposed two theories by which managers perceive and address employee
motivation. He referred to these opposing motivational methods as Theory X and Theory Y
management. Each assumes that the manager’s role is to organize resources, including people,
to best benefit the company. However, beyond this commonality, the attitudes and
assumptions they embody are quite different.

Theory X

According to McGregor, Theory X management assumes the following:

 Work is inherently distasteful to most people, and they will attempt to avoid work
whenever possible.

 Most people are not ambitious, have little desire for responsibility, and prefer to be
directed.

 Most people have little aptitude for creativity in solving organizational problems.

 Motivation occurs only at the physiological and security levels of Maslow’s hierarchy
of needs.

 Most people are self-centred. As a result, they must be closely controlled and often
coerced to achieve organizational objectives.

 Most people resist change.

  Most people are gullible and unintelligent.

Essentially, Theory X assumes that the primary source of employee motivation is monetary,
with security as a strong second. Under Theory X, one can take a hard or soft approach to
getting results.

The hard approach to motivation relies on coercion, implicit threats, micromanagement, and
tight controls— essentially an environment of command and control. The soft approach,
however, is to be permissive and seek harmony in the hopes that, in return, employees will
cooperate when asked. However, neither of these extremes is optimal. The hard approach
results in hostility, purposely low output, and extreme union demands. The soft approach
results in a growing desire for greater reward in exchange for diminished work output.

It might seem that the optimal approach to human resource management would lie somewhere
between these extremes. However, McGregor asserts that neither approach is appropriate, since
the basic assumptions of Theory X are incorrect.

Drawing on Maslow’s hierarchy of needs, McGregor argues that a need, once satisfied, no
longer motivates. The company uses monetary rewards and benefits to satisfy employees’
lower-level needs. Once those needs have been satisfied, the motivation disappears. Theory
X management hinders the satisfaction of higher-level needs because it doesn’t acknowledge
that those needs are relevant in the workplace. As a result, the only way that employees can
attempt to meet higher-level needs at work is to seek more compensation, so, predictably, they
focus on monetary rewards. While money may not be the most effective way to self-fulfilment,
it may be the only way available. People will use work to satisfy their lower needs and seek to
satisfy their higher needs during their leisure time. However, employees can be most productive
when their work goals align with their higher-level needs.

McGregor makes the point that a command-and-control environment is not effective because
it relies on lower needs for motivation, but in modern society those needs are mostly satisfied
and thus are no longer motivating. In this situation, one would expect employees to dislike their
work, avoid responsibility, have no interest in organizational goals, resist change, etc.—
creating, in effect, a self-fulfilling prophecy. To McGregor, a steady supply of motivation
seemed more likely to occur under Theory Y management.
Theory Y

The higher-level needs of esteem and self-actualization are ongoing needs that, for most
people, are never completely satisfied. As such, it is these higher-level needs through which
employees can best be motivated.

In strong contrast to Theory X, Theory Y management makes the following assumptions:

 Work can be as natural as play if the conditions are favourable.

 People will be self-directed and creative to meet their work and organizational objectives
if they are committed to them.

 People will be committed to their quality and productivity objectives if rewards are in
place that address higher needs such as self-fulfilment.

 The capacity for creativity spreads throughout organizations.

 Most people can handle responsibility because creativity and ingenuity are common in
the population.

 Under these conditions, people will seek responsibility.

Under these assumptions, there is an opportunity to align personal goals with organizational
goals by using the employee’s own need for fulfillment as the motivator. McGregor stressed
that Theory Y management does not imply a soft approach.

McGregor recognized that some people may not have reached the level of maturity assumed
by Theory Y and may initially need tighter controls that can be relaxed as the employee
develops.

If Theory Y holds true, an organization can apply the following principles of scientific
management to improve employee motivation:

 Decentralization and delegation: If firms decentralize control and reduce the number
of levels of management, managers will have more subordinates and consequently
need to delegate some responsibility and decision making to them.
 Job enlargement: Broadening the scope of an employee’s job adds variety and
opportunities to satisfy ego needs.
  Participative management: Consulting employees in the decision-making process taps
their creative capacity and provides them with some control over their work
environment.
 Performance appraisals: Having the employee set objectives and participate in the
process of self-evaluation increases engagement and dedication.

If properly implemented, such an environment can increase and continually fuel motivation as
employees work to satisfy their higher-level personal needs through their jobs.

Ouchi’s Theory Z

Theory Z stresses the need to help workers become generalists, rather than specialists. It views
job rotations and continual training as a means of increasing employees’ knowledge of the
company and its processes while building a variety of skills and abilities. Since workers are
given much more time to receive training, rotate through jobs, and master the intricacies of the
company’s operations, promotions tend to be slower. The rationale for the drawn-out time
frame is that it helps develop a more dedicated, loyal, and permanent workforce, which benefits
the company; the employees, meanwhile, have the opportunity to fully develop their careers at
one company. When employees rise to a higher level of management, it is expected that they
will use Theory Z to “bring up,” train, and develop other employees in a similar fashion.

Ouchi’s Theory Z makes certain assumptions about workers. One assumption is that they seek
to build cooperative and intimate working relationships with their co-workers. In other words,
employees have a strong desire for affiliation. Another assumption is that workers expect
reciprocity and support from the company. According to Theory Z, people want to maintain a
work-life balance, and they value a working environment in which things like family, culture,
and traditions are considered to be just as important as the work itself. Under Theory Z
management, not only do workers have a sense of cohesion with their fellow workers, they also
develop a sense of order, discipline, and a moral obligation to work hard. Finally, Theory Z
assumes that given the right management support, workers can be trusted to do their jobs to
their utmost ability and look after for their own and others’ well-being.

Theory Z also makes assumptions about company culture. If a company wants to realize
the benefits described above, it need to have the following:
  A strong company philosophy and culture: The company philosophy and culture need
to be understood and embodied by all employees, and employees need to believe in the
work they’re doing.
 Long-term staff development and employment: The organization and management
team need to have measures and programs in place to develop employees. Employment
is usually long-term, and promotion is steady and measured. This leads to loyalty from
team members.
 Consensus in decisions: Employees are encouraged and expected to take part in
organizational decisions.
 Generalist employees: Because employees have a greater responsibility in making
decisions and understand all aspects of the organization, they ought to be generalists.
However, employees are still expected to have specialized career responsibilities.
 Concern for the happiness and well-being of workers: The organization shows
sincere concern for the health and happiness of its employees and their families. It
takes measures and creates programs to help foster this happiness and well-being.
 Informal control with formalized measures: Employees are empowered to perform
tasks the way they see fit, and management is quite hands-off. However, there should be
formalized measures in place to assess work quality and performance.
 Individual responsibility: The organization recognizes the individual contributions but
always within the context of the team as a whole.

Theory Z is not the last word on management, however, as it does have its limitations. It can
be difficult for organizations and employees to make life-time employment commitments.
Also, participative decision-making may not always be feasible or successful due to the nature
of the work or the willingness of the workers. Slow promotions, group decision-making, and
life-time employment may not be a good fit with companies operating in cultural, social, and
economic environments where those work practices are not the norm.

Fayol’s Principles of Management

Henry Fayol, also known as the Father of Modern Management Theory, gave a new perception
on the concept of management. He introduced a general theory that can be applied to all levels
of management and every department. He envisioned maximising managerial efficiency.
Today, Fayol’s theory is practised by the management to organise and regulate the internal
activities of an organisation.

The fourteen principles of management created by Henri Fayol are explained below.

1. Division of Work

Henri believed that segregating work in the workforce amongst the workers will enhance the
quality of the product. Similarly, he also concluded that the division of work improves the
productivity, efficiency, accuracy and speed of the workers. This principle is appropriate for
both the managerial as well as a technical work level.

2. Authority and Responsibility

These are the two key aspects of management. Authority facilitates the management to work
efficiently, and responsibility makes them responsible for the work done under their guidance
or leadership.

3. Discipline

Without discipline, nothing can be accomplished. It is the core value for any project or any
management. Good performance and sensible interrelation make the management job easy and
comprehensive. Employees’ good behaviour also helps them smoothly build and progress in
their professional careers.

4. Unity of Command

This means an employee should have only one boss and follow his command. If an employee
has to follow more than one boss, there begins a conflict of interest and can create confusion.

5. Unity of Direction

Whoever is engaged in the same activity should have a unified goal. This means all the people
working in a company should have one goal and motive which will make the work easier and
achieve the set goal easily.

6. Subordination of Individual Interest

This indicates a company should work unitedly towards the interest of a company rather than
personal interest. Be subordinate to the purposes of an organisation. This refers to the whole
chain of command in a company.

7. Remuneration

This plays an important role in motivating the workers of a company. Remuneration can be
monetary or non-monetary. Ideally, it should be according to an individual’s efforts they have
put forth.

8. Centralization

In any company, the management or any authority responsible for the decision-making process
should be neutral. However, this depends on the size of an organisation. Henri Fayol stressed
on the point that there should be a balance between the hierarchy and division of power.

9. Scalar Chain

Fayol, on this principle, highlights that the hierarchy steps should be from the top to the lowest.
This is necessary so that every employee knows their immediate senior also they should be
able to contact any, if needed.

10. Order

A company should maintain a well-defined work order to have a favourable work culture. The
positive atmosphere in the workplace will boost more positive productivity.

11. Equity

All employees should be treated equally and respectfully. It’s the responsibility of a manager
that no employees face discrimination.

12. Stability

An employee delivers the best if they feel secure in their job. It is the duty of the management
to offer job security to their employees.

13. Initiative
The management should support and encourage the employees to take initiatives in an
organisation. It will help them to increase their motivation and morale.

14. Esprit de Corps

It is the responsibility of the management to motivate their employees and be supportive of

each other regularly. Developing trust and mutual understanding will lead to a positive outcome
and work environment.

The 14 Principles of Management the pillars of any organisation. They are integral for
prediction, planning, decision-making, process management, control and coordination.

Product

In media management, the term "product" encompasses the various types of content and
services that a media company creates, develops, and delivers to its audience. This includes:

Content: This is the core of the media product and can range from television shows, movies,
and radio broadcasts to news articles, digital media, and online videos. The quality, genre, and
format of the content are tailored to meet audience preferences and market demands.

Media Services: Beyond content, products can also include subscription services, advertising
solutions, and distribution platforms. For instance, a streaming service like Netflix not only
offers movies and TV shows but also provides a subscription model and user experience design
that are integral to its product offering.

Brand and Experience: The product in media management also includes the brand identity
and the overall experience provided to the consumer. This involves branding strategies, user
interface design, and customer service, all of which contribute to how the media product is
perceived and engaged with by the audience.

Effectively managing media products involves overseeing the entire lifecycle from creation
and curation to marketing, distribution, and ongoing audience engagement. This holistic
approach ensures that the media products not only attract and retain audiences but also align
with the company's strategic objectives and market positioning.

Organization
"Organization" refers to the structured framework and operational dynamics that enable a
media company to effectively produce, manage, and distribute its content and services. This
encompasses several key aspects:

Structural Framework: This includes the hierarchical arrangement of departments and roles
within the media organization. It typically consists of various divisions such as content creation
(e.g., production, editorial), distribution (e.g., broadcasting, digital platforms), marketing,
sales, and administration. The organizational structure dictates how tasks and responsibilities
are allocated, how communication flows, and how decisions are made.

Management Practices: This involves the systems and processes used to oversee the daily
operations of the media company. Effective media management requires clear strategic
planning, project management, resource allocation, and performance evaluation. Management
practices ensure that teams work cohesively toward common goals, optimize workflows, and
respond to market changes.

Operational Dynamics: This refers to the interactions and processes that drive the production
and distribution of media products. It includes the coordination between different departments,
the integration of technology and systems, and the implementation of strategies to enhance
efficiency and innovation. For instance, a media company may implement cross-functional
teams to collaborate on content creation and marketing efforts, ensuring that all aspects of the
media product align with audience expectations and business objectives.

Organization is about creating an effective structure and management system that supports the
creation, distribution, and promotion of media content, while also enabling the company to
adapt to industry trends and consumer demands.

Integration

Integration in media refers to the process by which a media company consolidates and
coordinates various aspects of its operations to streamline production, distribution, and
consumption of content. Integration can occur at multiple levels and is often categorized into
two main types: vertical integration and horizontal integration.

Vertical Integration: This involves a media company controlling multiple stages of its value
chain, from content creation to distribution and exhibition. For instance, a company like Disney
exemplifies vertical integration by owning not only content production studios (e.g., Walt
Disney Pictures) but also distribution channels (e.g., ABC Television Network) and exhibition
platforms (e.g., Disney+ streaming service). Vertical integration allows a company to manage
costs, optimize content delivery, and enhance overall efficiency by overseeing every aspect of
the content lifecycle.

Horizontal Integration: This refers to the expansion of a media company by acquiring or

merging with other companies at the same stage of the value chain. For example, a media
conglomerate might acquire other television networks, digital media platforms, or content
producers to increase its market share and diversify its offerings. An example is Comcast’s
acquisition of NBCUniversal, which expanded its reach in television, film, and theme parks.
Horizontal integration helps companies gain competitive advantage, access new markets, and
achieve economies of scale.

Integration in media enhances a company's ability to control its operations, reduce costs,
improve content quality, and better serve its audience by providing a cohesive and unified
media experience. It also positions companies to adapt to industry changes and leverage
synergies across different segments of the media landscape. Integration involves the strategic
coordination and consolidation of various operational and functional areas within a media
company to create a more cohesive and efficient organization. This integration can be observed
at multiple levels and serves several purposes:

Operational Integration: This refers to the alignment and coordination of different

departments and processes within a media company. For example, integrating content creation
with distribution and marketing departments ensures that media products are developed with a
clear understanding of audience preferences and distribution channels. This approach
streamlines workflows, reduces duplication of efforts, and improves the overall efficiency of
operations. A company might use integrated digital platforms to manage content creation,
scheduling, and analytics, allowing for a more unified approach to content management and
audience engagement.

Strategic Integration: Involves aligning various strategic initiatives and business units to
support the company's overall goals and objectives. For example, a media firm might integrate
its digital and traditional media strategies to create a seamless cross-platform experience for
audiences. This could involve synchronizing content releases across television, online
streaming, and social media to maximize reach and engagement. Strategic integration helps
ensure that all parts of the organization work towards common goals, enhances market
positioning, and leverages synergies across different business units.

Technological Integration: This focuses on the use of technology to unify different aspects of
media management. It includes the integration of software systems, data analytics tools, and
digital platforms that support content production, distribution, and audience interaction. For
instance, integrating customer relationship management (CRM) systems with content
management systems (CMS) can provide a comprehensive view of audience preferences and
behaviours, enabling more targeted content delivery and marketing strategies. Technological
integration enhances operational efficiency, data accuracy, and the ability to adapt to changing
market conditions.

Merger

In the media industry, a merger refers to the process where two or more media companies
combine their resources, operations, and assets to form a single, unified entity. This strategic
move aims to achieve various business objectives, such as enhancing market presence,
expanding content offerings, and increasing operational efficiency.

Strategic Advantages: Mergers in media often aim to create synergies that improve
competitive positioning and market share. For example, when Comcast merged with
NBCUniversal, it combined Comcast’s extensive cable and broadband infrastructure with
NBCUniversal’s content production and broadcasting capabilities. This merger allowed the
new entity to offer a broader range of content and services, leverage cross-platform synergies,
and strengthen its market position against competitors. Mergers can also provide access to new
markets and audiences, thereby expanding a company's reach and influence in the media
landscape.

Operational Efficiency: By merging, media companies can streamline operations and reduce
redundancies. Consolidating resources, technology, and talent enables more efficient content
production, distribution, and management. For instance, a merger might lead to the
consolidation of production facilities, shared technological infrastructure, and unified
marketing strategies. This can result in cost savings, improved economies of scale, and a more
efficient allocation of resources, ultimately benefiting the merged entity’s bottom line.
Content Diversification and Innovation: Mergers allow media companies to diversify their
content offerings and explore new formats and platforms. For example, the merger of
WarnerMedia and AT&T brought together WarnerMedia’s extensive content library with
AT&T’s telecommunications infrastructure. This integration enabled the development of new
digital products and services, such as the HBO Max streaming platform, which leverages
WarnerMedia’s content to attract subscribers. Mergers can also foster innovation by combining
creative expertise and technological capabilities, leading to new content formats and
distribution methods.

Mergers in the media industry are strategic manoeuvres designed to enhance competitive
advantage, operational efficiency, and content diversity, while adapting to the evolving media
landscape and consumer demands.

Acquisition

In the media industry, an acquisition involves one media company purchasing another company
to gain control over its assets, content, or market position. This strategic move can offer several
benefits and objectives:

Market Expansion: Acquisitions can help a media company enter new markets or increase its
audience reach. For instance, when Amazon acquired MGM, it gained access to MGM’s
extensive film and television library, which bolstered Amazon Prime Video's content offerings
and expanded its market presence in the streaming industry. Acquisitions allow companies to
quickly scale their operations and tap into new demographics or geographic regions.

Content and Talent Acquisition: By acquiring another media company, a firm can enhance
its content portfolio and bring in new talent. For example, Disney’s acquisition of Lucasfilm
not only added iconic franchises like Star Wars to its portfolio but also brought in the expertise
and creative talent associated with the Lucasfilm brand. This helps the acquiring company
diversify its content offerings and leverage existing intellectual properties for new revenue
opportunities.

Strategic Synergies and Efficiency: Acquisitions can lead to operational synergies, such as
cost savings and increased efficiency. When a media company acquires a competitor or a
complementary business, it often integrates operations to streamline processes and eliminate
redundancies. For example, the acquisition of a digital media firm by a traditional broadcaster
might lead to the integration of digital technology and expertise, enhancing overall operational
efficiency and innovation.

Acquisitions in the media sector are aimed at strengthening market position, expanding content
offerings, and achieving operational efficiencies, thereby enhancing the strategic capabilities
and competitive edge of the acquiring company.