INTRODUCTION TO

MANAGEMENT
 Definition of Management
• “Management is the process of designing and
maintaining of an environment in which
individuals working together in groups efficiently
accomplish selected aims”.
Koontz and weihrich

• “Management is the art of knowing what you

want to do and then seeing that it is done in the
best and cheapest way.” F.W.Taylor
 Characteristics
• Management is a distinct process.
• Management is an organized activity
• Management aims at the accomplishment of predetermined
objectives.
• Management is both a science and an art.
• Management is a group activity
• Management principles are universal in nature
• Management integrates human and other resources.
 Takeaway 3: Managers
Levels of management
– Board of directors make sure the organization is
run right
– Top managers are responsible for performance of
an organization as a whole or for one of its major
parts
– Middle managers oversee large departments or
divisions
– Team leaders supervise non-managerial workers
Management levels in a typical business and
non-profit organizations
 Management --- Science or an Art
What is science?
The following characteristics are essential for a
subject to be recognized as a science.
o The existence of a systematic body of knowledge
with array of principles.
o Based on scientific enquiry.
o Principle should be verifiable.
o Reliable basis for predicting future events.
• Management as a discipline fulfills the science criterion. The
application of these principles helps any practicing manager to
achieve the desired goals. Management is a dynamic subject in that it
has heavily from economic, psychology, sociology, mathematics and
engineering. Management is multi disciplinary in nature.

• Science classified in to two types. There are exact science and inexact
science. Exact science where the results are accurate. In the case of
management it is an inexact science.

• Management is inexact science because

• Every organizations human resources are different attitudes,
aspirations and perceptions. So standard results may not be
obtained.
• Readymade and standard solutions cannot be obtained.
• Management is complex and unpredictable.
• Every organization decisions are influenced by the environment. The
environment is so complexes and unexpected changes.
 What is an art?
Art means application of skill in finding a desired
result. Art is the way of doing things skillfully.

Management is an art because of the following

facts.
• Management process involves the use of
practical knowledge and personal skills.
• Management is creative.
• Application of practical knowledge and certain
skills helps to achieve concrete results.
Management is both – science and an art:
• Management is a science because it contains
general principles. It is also and art because it
requires certain personal skills to achieve
desired results.
 Is Management a Profession?
According to McFarland, following are the characteristics
of profession:
1. Existence of an organised and systematic knowledge.
2. Formalized methods of acquiring training and
experience
3. Existence of an association with professionalization as
its goal.
4. Existence of an ethical code to regulate the behaviour
of the members of the profession.
5. Charging of fees based on service , but with due regard
for the priority of service over the desire for monetary
reward.
MANAGEMENT AND ADMINISTRATION
1. Administration is above management:

• Administration is concerned with decision -making and policy

formulation, while management is concerned with the
execution of what has been laid down by the administrators.

2. Administration is a part of management:

• Administration is the part of management which is concerned

with the installation and carrying out of the procedure by
which the programme is laid down and communicated and the
progress of activities is resulted and checked against plans.
This breech concerns administration as part of management.
3. Administration and management are the same:
Management is used for higher level functions
like plans, organizing, directions and controlling in
a business organization where as administration
is used for the same set of functions in
government organizations.
F.W. Taylor’s scientific Management
• Fredrick Winslow Taylor is called “father of
scientific management.” He joined as a labour
at Midvale steel company in U.S.A at 1878.He
became chief engineer in the year 1884 in the
same company. He published papers on “price
rate system” and shop management. He
published a book on “the principles of
scientific management” in 1911.
 Principles of scientific management
Taylor conducted various experiments at the work place to find out
how human beings could be made more efficient by standardization
the work. The following are the features of scientific management.
1 .Separation of planning and doing:
• Taylor suggests the separation of planning from actual doing.
• Taylor says that supervisor should be done the planning.
• The workers only concentrate on doing the work.

2. Functional foremanship:
• Taylor developed a theory called functional foremanship based on
specialization of functions.
• In this system eight foreman were involved to direct and control
the activities of the workers.
3 .Job analysis:
Every job that requires minimum movements and less cost and least
time is the best way of doing the job. This can be determined by
motion, time and fatigue study.
(a)Time study:
The movement, which takes minimum time, is the best one. This
helps in firms the fair work for a period.
(b) Motion study:
Taylor suggested that eliminating wasteful movements and
performing only necessary movements.
(c)Fatigue study:
Employees are both physical as well as mental fatigue easily. Fatigue
study indicates the amount and frequency of rest required in
completing the job. Taylor suggests a fair day‟s work requiring
certain movements and periods to complete it.
4. Standardization:
Standards must be maintained in respect a instruments
and tools, period of work, amount of work, working
conditions, cost of production etc. Normally these
standards will be fixed in advance on the basis of various
experiments.

5. Scientific selection and training:

• Taylor has suggested that workers should be selected
on scientifically.
• A worker should be physically and technically most
suitable.
• After selection should be given on the training of
workers which makes them more efficient and effective.
6. Financial incentives:
• Financial incentives can motivate the workers to put in their maximum efforts.
• According to this scheme a worker who completes the normal work gets
wages at higher rate.
• Who does not complete gets at a lower rate.
• Taylor has suggested that wages should be based on individual performance
and not on the position which he occupies.

7. Economy:
• Scientific management enhances profit and economy.
• The economy and profit can be achieved by making the resources more
productive as well as by eliminating the wastages.

8. Mental Revolution:
• Scientific management is based on co-operation between management and
workers.
• Co-operation enhances the effective managerial activities.
• Mutual conflict should be replaced by mutual co-operation which is beneficial
to both.
 Henry Fayol’s Contribution
• Henry Fayol, a French industrialist concentrated on that administrative aspect
of scientific management.
• His contributions and concentrated in his famous book ” The general and
industrial administration”.
• Fayol‟s famous book into two parts. The first is concerned with the theory of
administration in which Fayol divided the total industrial activities into six
categories which are given below:
1. Technical (Production, Manufacture)
2. Commercial (Buying, Selling, Exchange)
3. Financial (Search for and optimum use of capital)
4. Security (Protection of property and person)
5. Accounting (Balance sheets, Cost statistics)
6. Management (Planning, Organizing, Coordinating, Directing, Controlling)
The second is concerned with the fourteen principles of management .They
are
1. Division of work.
2. Authority and Responsibility.
3. Discipline
4. Unity of Command.
5. Unity of Direction.
6. Subordination of individual interest to general interest.
7. Remuneration of personnel.
8. Centralization.
9. Scalar chain.
10. Order.
11. Equity.
12. Stability of tenure of personnel.
13. Initiative
14. Esprit decorps.
 Max Weber’s Bureaucratic Theory
• Bureaucratic Theory was developed by a German
Sociologist and political economist Max Weber(1864-1920).

• According to him, bureaucracy is the most efficient form

of organization. The organization has a well defined line
of authority. It has clear rules and regulations which are
strictly followed.

• Bureaucracy refers to a specialized system and process of

maintaining uniformity or authority within an
organization.
Principles of Bureaucratic theory
• Administrative class
• Authority hierarchy
• Division of work
• Formal rules and regulations
• Impersonal relationships
• Official record
 Criticism of Bureaucratic Organization

• Bureaucratic organization is criticized because of

the following reasons :-
• Bureaucratic organization is a very rigid type of
organization.
• It does not give importance to human relations.
It is suitable for government organizations.
• It is also suitable for organizations where change
is very slow.
• Too much emphasis on rules and regulations.
The rules and regulations are rigid and inflexible.
• There will be unnecessary delay in decision-
making due to formalities and rules.
• Bureaucracy involves a lot of paper work. This
results in lot of wastage of time, effort and
money.
 NEO- CLASSICAL APPROACHES
• These approaches are called neo-classical because they do not
reject the classical concepts but only try to refine and improve
them.
A.THE HUMAN RELATIONS MOVEMENT:
• The real inspiration for the movement, however, came from the
Hawthorne experiments which were done by Prof. Elto Mayo” and
his colleagues at the Western Electric Company‟s plant in Cicero.
Illinois from 1927 to 1932. The plant employed 29,000 workers to
manufacture telephone parts and equipment. We briefly describe
these experiments in the following four parts:
• Illumination Experiments.
• Relay Assembly Test Room.
• Interviewing Programme.
• Bank Wiring Test Room.
 ILLUMINATION EXPERIMENTS
• In this phase, the popular belief that productivity is
correlated with illumination was tested. Experiments
were done on a group of workers. Their productivity was
measured at various levels of illumination. But the
results were erratic. Puzzled with this phenomenon,
researchers, improved their methodology. 2 groups of
workers, in different buildings are take. One group called
the control group worked under constant level of
illumination and the other group called the test group
worked under changing levels of illumination. The post-
test productivity of the two groups was then compared
and it was found that illumination affected production
only marginally.
 RELAY ASSEMBLY TEST ROOM
• In this phase, the object of the study was broadened. It now aimed at knowing
not only the impact of illumination on production but also of such other factors
as length of the working day, rest pauses , their frequency and duration and
other physical conditions. A group of six women workers, who were friendly to
each other, was selected for this experiment. These women workers, were told
about the experiment and were made to work in a very informal atmosphere
with a supervisor- researcher in a separate room. The superviser-researcher
acted as their friend, philosopher and guide. During the study , several
variations were made in the working conditions to find which combinations of
conditions was most ideal for production . Surprisingly, the researchers found
that the production of the group had no relation with working conditions. It
went on increasing and stabilized at a high level even when all the
improvements were taken away . The following factors are identified for the
constant performance,
• The incentive system was changed so that each girl’s extra pay was based on
the other five rather than output of larger group. The productivity increased as
compared to before.
• Two 5min rests- one in morning session and other in evening session- were
introduced which were increased to 10min. The productivity increases.
 INTERVIEWING PROGRAMME

• In this phase, they wanted to know as to what were the

basic factors responsible for human behavior at work.
For this purpose they interviewed more than 20,000
workers. At first, direct questions were asked relating to
the type of supervision, working conditions, living
conditions and so on. But since the replies were
guarded, the technique was changed to Non-directive
type of interviewing. In which workers were free to talk.
This study revealed that the workers‟ social relations
inside the organisation influence their attitudes and
behaviors.
 BANK WIRING OBSERVATION ROOM

• This phase involved an in-depth observation of 14

men making terminal banks of telephone wiring
assemblies, to determine the effect of informal
group norms and formal economic incentives on
productivity. It was found that the group evolved
its own production norms for each individual
worker, which were much lower than those set by
the management. Workers would produce that
much and no more, thereby defeating the
incentive system.
 B. BEHAVIOURAL APPROACH
• This approach is an improved and a more mature version of the human relations
approach to management.
• Douglas McGregor, Abraham Maslow, kurt Lewin, Chester Barnard, Mary Parker
Follett, George Homans, Rensis Likert, Argyris, and Warren Bennis 18 are some of
the foremost behavioral scientists contributed to the development of the
behavioral approach to management.
• These people prefer more flexible organisation structures and jobs built around
the capabilities and aptitudes of average employees to participative and group
decision-making.
• Encouraging the process of self-direction and control .
• It organisations as groups of individuals with certain goals.
• The democratic-participative style is desirable, motivation is complex man.
• This model suggests that different people react differently to the same situation
or react the same way to different situations. No two people are exactly alike,
and the manager should tailor his attempts to influence people according to their
individual needs.
• Conflict is inevitable and sometimes is even desirable.
 III. MODERN APPROACH
A. QUANTITATIVE APPROACH
• This approach is also called the management science
approach. It gained momentum during the Second
World War . The interdisciplinary groups of scientists
who were engaged for this purpose were known as
Operations Research (OR) teams. In later years, when
the war ended, people made use of this technique in
solving problems of industry also. A mixed team of
specialists form relevant disciplines is called in to
analyses the problem a course of action to the
management. The OR team presents the management
with a rational base for making a decision.
B. SYSTEM APPROACH
• Like a human organism an organisation is a system. In an organisation also
people, tasks and the management are interdependent.
SYSTEM CONCEPTS:
• System theory was first applied in the fields of science and engineering.
• “A system is essentially a set or assemblage of things interconnected or
independent, so as to form a complex unity”.
SUBSYSTEM:
• While an organisation as a whole is a system, the various components or parts
within it are called the subsystem. Thus a department is a subsystem of the
organisation.
CLOSED SYSTEM
• A system that does not interact with its environment A closed system has fixed
boundaries, its operation is relatively independent of the environment outside
the system.
OPEN SYSTEM
• A system that interacts with its environment. Thus an open system is one
which constantly comes into contact with the environment.
Features:
1. An organisation is a system consisting of four sub-systems namely
task, structure, people and environment.
2. The subsystems of the organisation system are interconnected
and interdependent.
3. An organization is an open adaptive system which continously
interacts with its environment.
4. It is the responsibility of management to regulate and modify the
system so as to optimise performance.
5. An organization is more than the aggregate of various parts. This
is called ‘synergy’.
 Contingency Approach
• It is a systematic approach to determine package of
management technique, approaches and practices
which are appropriate in specific situation.
• This approach states that managers instead of applying
principles and practices of management uniformly to
every situation irrespective of the nature of the
situation, they should study, analyze and diagnose the
situation in terms of its variables and other
characteristics, understand situational requirements
and then preparing package of management principle
and techniques to deal with it effectively.
Features:
1. It is situation oriented urging upon the managers to study,
analyze and diagnose the situation.
2. After the analysis of the situation, the managers are expected
to prepare inventories of management theory, principles,
techniques and concepts.
3. To tackle the situation efficiently the validity and applicability
of management tools and techniques is to be examined.
4. The environment of an organization is ever changing.
5. Management style and practice should match the
requirements of the situation.
6. Success in management depends upon the ability to cope
with environmental demands.