What is management ?

There is no precise definition of management .management has

decision oriented definition, people oriented definition, function
oriented and production or efficiency oriented etc, But in general
,we define the management as follows

“management is the process involving planning, organizing,

staffing, directing and controlling human efforts to achieve stated
objectives in an organization”.
 Definitions
Harold Knoontz :”management is the art of getting
things done through and with an informally organized
group”
Joseph L Massie,” management is the process by
which co-operative groups directs actions towards
common goals.
Louis A. Alien :management is the planning
,organizing, co-ordination and control of the technical,
financial security and accounting activities
F.W.Taylor, ”management is the art of knowing what
you want to do and then seeing that is done in the best
and the cheapest way”.
 Nature of management
 Multi disciplinary: management draws freely
ideas and concepts from various disciplines as
psychology, sociology ,anthropology,
economics ,statistics etc
 Management integrates the ideas and concepts
taken from these disciplines and present newer
concepts which can be put in to practice for
managing the organization
Dynamic nature of principles: principle being
a fundamental truth which establishes cause
and effect relationship of a function. the
principles framed by the management are
flexible in nature and change with the change
in the environment in which an org functions
 Relative, not absolute principles: management
principles being relative not absolute, should
be applied according to the needs of the
organization in the light of prevailing
conditions. Thereby giving allowances for
different changing
Universality: management is a universal
phenomenon. however ,management principles
are not universally applicable but are to be
modified according to the needs of the
situation.

Management as a profession: profession is an occupation

for which specialized knowledge, skills, and training are
required and the use of these skills are not meant for self
satisfaction, but are used for larger interest of the society.
 Characteristics of management

 1.ORANISED ACTIVITIES
 2.EXISTENCE OF OBJECTIVES
 3.RELATIONSHIP AMONG RESOURCES
 4.WORKING WITH AND THROUGH
PEOPLE
 5.DECISION MAKING
 Different experts have classified functions of
management. According to George & Jerry, “
 There are four fundamental functions of
management i.e. planning, organizing,
actuating and controlling”. According to Henry
Fayol, “To manage is to forecast and plan, to
organize, to
 command, & to control”. Whereas Luther
Gullick has given a keyword ’POSDCORB’
where P stands for Planning, O for Organizing, S for
Staffing, D for Directing, Co for
Co-ordination, R for reporting & B for Budgeting.
But the most widely accepted are
functions of management given by KOONTZ and
O’DONNEL i.e. Planning,
Organizing, Staffing, Directing and Controlling.
MANAGEMENT FUNCTIONS
 planning
 It is the basic function of management. It deals with
chalking out a future course of
 action & deciding in advance the most appropriate
course of actions for Achievement of pre-determined
goals According to KOONTZ, “Planning is deciding
in advance – what to do, when to do & how to do It
bridges the gap from where we are & where we want
to be”. A plan is a future course of actions. It is an
exercise in problem solving & decision making.
Planning is determination of courses of action to
achieve desired goals
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
Planning is necessary to ensure proper utilization of
human & non-human resources. It is all pervasive, it is an
intellectual activity and it also helps in avoiding
confusion, uncertainties, risks, wastages etc.
 Organizing
It is the process of bringing together physical, financial and human
resources and developing productive relationship amongst them for
achievement of organizational goals.
According to Henry Fayol, “To organize a business is to provide it with
everything useful or its functioning i.e. raw material, tools, capital and
personnel’s”. To organize a business involves determining & providing
human and non-human resources to the organizational structure.
Organizing as a process involves:

1. Identification of activities.
2. Classification of grouping of activities.
3. Assignment of duties.
4. Delegation of authority and creation of responsibility.
5. Coordinating authority and responsibility
relationships.
 Staffing
It is the function of manning the organization structure and keeping it
manned. Staffing has assumed greater importance in the recent years due
to advancement of technology, increase in size of business, complexity
of human behavior etc. The main purpose of staffing is to put right man on
right job i.e. square pegs in square holes and round pegs in round holes.
According to Kootnz & O’Donell, “Managerial function of staffing involves
Manning the organization structure through proper and effective selection,
appraisal & development of personnel to fill the roles designed un the
structure”.
Staffing involves:
1.Manpower Planning (estimating man power in terms of
searching, choose the person and giving the right place).
2. Recruitment, selection & placement.
3. Training & development.
4. Remuneration.
5. Performance appraisal.
6. Promotions & transfer.
 Directing
It is that part of managerial function which actuates the organizational
methods to work efficiently for achievement of organizational purposes.
Direction is that inter-personnel aspect of management which deals
directly with influencing, guiding, supervising, motivating sub-ordinates
for the achievement of organizational goals. Direction has following
elements:

1. Supervision
2. Motivation
3. Leadership
4. Communication
 Controlling
The purpose of controlling is to ensure that everything occurs in
conformities with the standards. An efficient system of control helps to
predict deviations before they actually occur. According to Theo
Haimann, “Controlling is the process of checking whether or not proper
progress is being made towards the objectives and goals and acting if
necessary, to correct any deviation”. According to Koontz & O’Donell
“Controlling is the measurement & correction of performance activities of
subordinates in order to make sure that the enterprise objectives and
plans desired to obtain them as being accomplished”. Therefore
controlling has following steps:
1. Establishment of standard performance.
2.Measurement of actual performance.
3. Comparison of actual performance with the standards
and finding out deviation if any.
4.Corrective action.
 Who is a manger?
A part from the above functions he perform manager is the person who
manages, conducts, trains, manipulates, directs, deals, supervises,

organizes and controls resources, expenditures, an organization,
institution, a team, a household, etc.

A simple definition:
A manager has his cards dealt to him and he
must play them." - Miller Huggins
 What makes a good manager

Interpersonal relationship skill

Communication skill.
A good planner.
Decision Maker.
Leadership skill.
Appraiser.
 Functions of manager
Planning the work
Taking decisions
Delegating authority
Solving the problems
Co-ordination
Stimulating workers
Setting target
Guiding sub-ordinates
Arranging the facilities
Control the deviations
 Roles of a manager
 In 1960 Henry Mintzberg undertook a careful
study of five executives to determine what
these mangers do on their jobs .On the basics
of observation of these managers . Mintzberg
concluded that mangers perform 10 different
,highly interrelated roles under 3 following
heads
 Interpersonal roles
 Informational roles
 Decisions roles
 Interpersonal role

 Figurehead role: symbolic head; he is required

to perform a number of routine duties of a
legal or social nature
 Leader :responsible for motivating and
directing employees
 Liaison : maintains a network of outside
contacts who provide favors and information
 Informational role

 Monitor :receives wide variety of information

;serves as nerve center of internal and external
information of the organization
 Disseminator :transmits information received
from outsiders or from other employees to
members of the org
 Spokesperson: transmits information to
outsiders on organizations plans ,policies
,actions, and results
 Decisional roles
 Entrepreneur: searches org and its environment for
opportunities and initiates projects to bring about
change
 Disturbance handler :responsible for corrective
action when org faces important but unexpected
disturbances
 Resource allocator: makes or approves significant
org decisions
 Negotiator: responsible for representing the org at
major decisions

 Historical roots of management
Management knowledge is mainly based on 3
theories
Classical :bureaucracy, scientific management,
administrative management
Behavioral : Hawthorne experiment, theory X.
theory Y,
Modern approach: system theory, situational
/contingency theory
 Bureaucracy

 max Weber was a German social scientist .he

framed a rigid rules to eliminate managerial
inconsistencies which lead to in effectiveness
.so, he emphasized the strict adherence of rules
and regulations in an org There would make
an efficient form of org ..This type of org.. can
be termed as “Bureaucracy” This is the oldest
form of org .. Bureaucracy is based on the
principles of logic order and legitimate
authority.
 Weber's ideal bureaucracy features

 Job specifications: jobs are broken into simple

Routine, and well-defined tasks
Authority and hierarchy: positions are organized
in a hierarchy, each lower being is controlled
and supervised by a higher one.
Formal selection: all org members are to be
selected on the basics of technical qualification
demonstrated by training, education, and
formal examination
Formal rules and regulations: well defined rules and
regulations are laid down to govern the work behavior of
employees. The rules and regulations are framed to
ensure consistency in the performance of work.
Impersonal relations: rewards should be given on the
basis of efficiency. family relationships or any other
relationship should not influence presentation of awards.
Record keeping: every decisions and actions is taken
only after writing in numbers of documents and it is
preserved for future reference
 Scientific management
F.W Taylor is the father of scientific
management, according to him scientific
management consists of certain philosophy of
scientific selection and training of right
workers for right job, providing adequate
working conditions and also giving monetary
incentives for efficient workers
 Principles of scientific management

1. Science not rule of thumb

2. Harmony in group action
3. Co-operation
4. Maximum output
5. Improvement of workers
 Elements of scientific management
1. Separation of planning from planning
2. Scientific task setting
3. Work study: it refers to systematic critical assessment of efficiency
required to do the job. It varies from job to job
4. Motion study: a study relating to the movements of a machine
operator and his machine while performing the job is called motion
study
5. Time study: it refers to the act of measuring the time required to
perform a particular job
6. Fatigue study: a study relating to the fixing of the working hors with
rest period to enable the workers to recoup the energy lost while
performing the job
7. Rate setting :emphasizes upon fair wages to workers and
recommended differential piece rate wage system
8. Scientific selection and training: the workers should be selected
scientifically
9. Financial incentives: It can be a motivate the workers to shoe their
efficiency
10. Mental revolution: It refers to change in thinking both on the part of
the management and workers . The success of implementation of
scientific management system would be use less
 Administrative theory
 Henry fayol is said to be the father of management.
His contributions can be classified under 3 heads
 Classification of business activities
1.Technical activities
2. Commercial activities
3.Financial activities
4.Security activities
5.Accounting activities
6.Managerial activities
 Functions of management
 He identified 5 elements of functions as
management process
 Managing
 Organizing
 Co-ordination
 Commanding
 Controlling
 Henry fayol (1841-1925)
 14 Principles of management
• Division of labour :the more people specialize, the more
efficiently they can perform their work.
• Authority and responsibility: managers have the authority to
give the rules and to get things done.
• Discipline: members of an organization need to respect the
rules and agreements that govern it.
• Unity of command: Each employee must receive
instructions about a particular operation from only one
person to avoid conflicts and confusion.
• Unity of direction: managers should coordinate the efforts of
employee working on projects but only one manger should
be responsible for an employee’s behavior.
• Subordination of individual interest to group interest to the
common good: the interest of individual employee should
not take precedence over the interests of the organization.
•Remuneration of personnel: pay for work done should be fair to both the
employee and the employer.

•Centralization: managers should retain final responsibility but should also

give their subordinates enough authority to do their jobs properly.

•Scalar chain: A single, uninterrupted line of authority should run rank to

rank from top management to the lowest level position in the company.
•order: Materials and people should be at the right place at the right time, I
particular, people should be in the jobs or positions best suited to them.
•Equity: Managers should be both friendly and fair to their subordinates.
•Stability of tenure of pe88rsonnel: A high rate of employee turnover is not
efficient.
•Initiative: subordinates should be given the freedom to formulates and carry
on with their plans.
•Esprit de corps: promoting team spirit gives the organization a sense of
unity..
 Human relation approach
 Definition : In the words of Keith Davis
 “Human relations motivates people in organization in
order to develop teamwork which effectively fulfills
their needs and achieves organization goals”
 Objectives’
 Good human relations leads to effective human
resource management
 Establish a cordial relationship between management
and employees
 Good human relations reduces conflicts in org
 Human relation is essentially concerned with
motivating people to peak performance

 Hawthrone experiment

 This experiment conducted by Elton mayo and

his associates from 1924 to 1932 at hawthrone
plant of western electric to found out the
reasons for decrease in production
 Hawthorne experiment

 This experiment conducted by Elton mayo and

his associates from 1924 to 1932 at hawthrone
plant of western electric to found out the
reasons for decrease in production
 Phase 1. Illumination experiment
 Phase 2. relay assembly test group
 Phase 3. Interviewing programs
 Phase 4. The bank wiring observation room
experiment
 1.Experiments to determine the effects of changes in
illumination on productivity, illumination experiments, 1924-
27.
 2. Experiments to determine the effects of changes in hours
and other working conditions on productivity, relay assembly
test room experiments, 1927-28;
 3. Conducting plant-wide interviews to determine worker
attitudes and sentiments, mass interviewing programme, 1928-
30; and
 4. Determination and analysis of social organisation at work,
bank wiring observation room experiments, 1931-32.

 The Hawthorne studies' results encouraged researchers
to study human motivation and the managerial styles that lead
to more productivity. The Hawthorne Effect refers to the
tendency for people to behave differently when they know
they're being studied.
 The most important impact of the Hawthorne studies was
that it: changed the direction of research away from Taylor's
scientific management toward the study of human-based
management. In the Hawthorne studies, employees were
involved in the planning of the experiments.
 Theory x
 Prof .Douglas mc Gregor has introduced two
theories in his famous book, “The human side
of enterprise". they are called theory “X” and
theory “Y”.
 theory “X” is based on “papa knows the best".
in other words a manger has through
knowledge and excludes workers from
decision making. the worker should follow
whatever decision are taken by the manger.
Theory X has four assumptions held by mangers
1. Employees inherently dislike work and whenever possible will
attempt to avoid it
2. Since, employees dislike work they, must be coerced
,controlled, or threatened with punishment to achieve goals
3. Employees avoid responsibilities and seek formal direction
whenever possible.
4. Most workers place security above all other factors associated with
work and will display little ambition
 Theory “X”v/s theory “Y”
 Production Oriented  Employee oriented
 Autocratic  Democratic
 External control  Internal control
 Closer supervision  General supervision
 Managers are directive  Supportive
 Managers roles are  As same but motivates
directing, organizing ,and towards growth ,autonomy,
emphasis on control and reward
punishment  Human view people are self
 Human view people are directed and self controlled
lazy, lack of ambition if people are motivated
 Theory “Z” ( William ouchi)

 Theory z describes the major postulates of

Japanese management and how these practices
can be adopted with the environment of other
countries.
 Ouchi ,who has given theory Z has made a
comparative study of American and Japanese
management practices with the following
differences.
American /Japanese organization
 Short term employment  Life time employment
 Rapid advancement  Slow advancement
 Individual decision  Collective decision
making making
 Segmented concern for  Holistic concerns for
people employees
 Specialized careers  General career
 Individual responsibility  Group responsibility
 Modern approaches
1.System theory
2.Contigency /situational approach
 Social system
 A system is a assemblage of things connected or
interrelated so as to form a complex unit .
 what is open and closed system?
 Open system :all living organisms are open systems
 They interact with their environment ,they relate
exchange and communicate
 They import energy and export output with their
environment.
 They are dynamic and flexible as they are subject to
change by environmental forces
 They have feedback mechanism that helps them to
maintain equilibrium
 Features of management as social
system
 Management as social system
 Management as open system
 Adaptive
 Dynamic
 Multilevel and multi dimensional: it is applied
both to micro and macro level
 An integrated approach
 Multi disciplinary
 limitations
 Abstract approach : It is too abstract to be of
much use to practicing mangers, it only
indicates interrelation of parts but fails to spell
out among these.
 Lack of universality: As it is not applicable to
all organizations
 Contingency/situational approach
 This approach says that there cannot be a
particular management action or design which
will be appropriate for all situations. This
approach suggests that since organizations
interacts with the environment neither the
organization nor any of its subsystem is free to
take absolute actions.
 Implications of contingency
approach
 It is the sophisticated approach to understand the
increasing complexity of organizations .
 The approach is directed towards suggesting
organizational design and managerial actions most
appropriate to specific situations
 Management is entirely situational and there is
nothing like universal principles of management,
what managers do depends on the circumstances and
environment
 This approach suggests suitable alternatives for those
managerial actions which are generally contingent
upon external and internal environment such as
policies, strategy, decisions etc
 Parkinson's Law: “Work expands to fill the
time available.” ... Originally stated as “Work
expands so as to fill the time available for its
completion,” this law has wide implications
for project
 5 Ways to Use Parkinson's Law For Your
Advantage
 Cut large projects into small pieces and each
piece a deadline. ...
 Evaluate your schedule regularly. ...
 Track the amount of time activities take. ...
 Make a Time Budget. ...
 Find a good balance.
 The Peter Principle
 The Peter Principle states that "in a hierarchy every employee tends to rise
to his level of incompetence." In other words, employees who perform their
roles with competence are promoted into successively higher levels until
they reach a level at which they are no longer competent. There they
remain.
 For example, let's say you are a brilliant programmer. You spend your days
coding with amazing efficiency and prowess. After a couple of years,
you're promoted to lead programmer, and then promoted to team manager.
You may have no interest in managing other programmers, but it's the
reward for your competence. There you sit -- you have risen to a level of
incompetence. Your technical skills lie dormant while you fill your day
with one-on-one meetings, department strategy meetings, planning
meetings, budgets, and reports in which your not efficient .
 How to Overcome Peter’s Principle:How to
Overcome Peter’s Principle To overcome
Peter’s Principal, adequate skill training is to
be provided for the employee receiving a
promotion. It is to be ensured that the training
given is appropriate for the position to which
he/she has been promoted.