Introduction to

Management
What is management?
• According to Harold Koontz,
‘Management is an art of getting things
done through and with the people in
formally organized groups. It is an art
of creating an environment in which
people can perform and individuals
can co-operate towards attainment of
group goals.’
Who Are Managers?

• Managers
• Individuals in an organization who
direct the activities of others.
• Hired by the organization.
Where Managers work?
Organization
• A systematic arrangement of people brought
together to accomplish some specific
purpose; applies to all organizations.
• Where managers work (manage).
Common Characteristics of Organizations
– Distinct purpose and goals
– People
– Systematic structure
Features of Management
• Management is Goal-Oriented
• Management integrates Human,
Physical and Financial Resources
• Management is Continuous
• Management is all Pervasive
• Management is a Group Activity
Objectives of Management
• Getting Maximum Results with
Minimum Efforts.
• Increasing the Efficiency of factors of
Production.
• Maximum Prosperity for Employer &
Employees.
• Human betterment.
Importance Of Management
• It helps in Achieving Group Goals.
• Optimum Utilization of Resources.
• Reduces Costs.
• Establishes Sound Organization.
• Establishes Equilibrium.
• Essentials for Prosperity of Society
Is Management an art or a
science?
• A number of debates have taken
place over the nature of
management being an art or a
science. Lets take a look on:
• How management is a science?
• How management is an art?
Management as a Science
• Science is a systematic body of knowledge
pertaining to a specific field of study that
contains general facts which explains a
phenomenon. It establishes cause and effect
relationship between two or more variables
and underlines the principles governing their
relationship.
• Principles of Science are:
• Universally acceptance principles
• Experimentation & Observation
• Cause & Effect Relationship
• Test of Validity & Predictability
Management as an art
• Art implies application of knowledge & skill
to trying about desired results. An art may be
defined as personalized application of
general theoretical principles for achieving
best possible results.
• Characteristics of an art are:
• Practical Knowledge
• Personal Skill
• Creativity
• Perfection through practice
• Goal-Oriented
Management both as a
Science and an art
• Management is both an art and a science. The above
mentioned points clearly reveals that management
combines features of both science as well as art. It is
considered as a science because it has an organized
body of knowledge which contains certain universal truth.
It is called an art because managing requires certain skills
which are personal possessions of managers. Science
provides the knowledge & art deals with the application of
knowledge and skills.
• A manager to be successful in his profession must
acquire the knowledge of science & the art of applying it.
Therefore management is a judicious blend of science as
well as an art because it proves the principles and the way
these principles are applied is a matter of art.
Management as a Profession
• A profession may be defined as an occupation
that requires specialized knowledge and
intensive academic preparations to which
entry is regulated by a representative body.
The essentials of a profession are:
• Specialized Knowledge
• Formal Education & Training
• Social Obligations
• Code of Conduct
• Representative Association
Functions of Management
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”.
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”.
Staf fing
• 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
o staffing is to put right man on right
job.
Directing
• It is that part of managerial function
which actuates the organizational
methods to work efficiently for
achievement of organizational
purposes. It is considered life-spark of
the enterprise which sets it in motion
the action of people because planning,
organizing and staffing are the mere
preparations for doing the work.
Controlling
• It implies measurement of accomplishment
against the standards and correction of
deviation if any to ensure achievement of
organizational goals. 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”.
Evolution of Management
Scientif ic Management
• Timeline: 1911
• By: Frederick W. Taylor
• About: Its main objective was improving
economic efficiency, especially labor
productivity. It was one of the earliest
attempts to apply science to the engineering
of processes and to management.
 Principles of Scientif ic
Management

Science, not the Rule of Thumb

Harmony, Not Discord

Mental Revolution

Cooperation, not Individualism

Development of Every Person to his Greatest
Efficiency
Scientif ic Management
• Criticisms:
• While scientific management principles improved
productivity and had a substantial impact on
industry, they also increased the monotony of work.
• The core job dimensions of skill variety, autonomy,
and feedback all were missing from the picture of
scientific management.
Administrative Management
• Timeline: 1916
• By: Henri Fayol
• About: Fayol's work was one of the first
comprehensive statements of a general
theory of management. He proposed that
there were Six primary functions of
management and 14 principles of
management.
Administrative Management
• 14 Principles of Management:
• Division of work. Work should be divided among individuals
and groups to ensure that effort and attention are focused
on special portions of the task. Fayol presented work
specialization as the best way to use the human resources
of the organization.
• Authority. Managers must be able to give orders. Authority
gives them this right. Note that responsibility arises
wherever authority is exercised.
• Discipline. Employees must obey and respect the rules that
govern the organization. Good discipline is the result of
effective leadership, a clear understanding between
management and workers regarding the organization's rules,
and the judicious use of penalties for infractions of the rules.
Administrative Management
• Unity of command. Every employee should receive orders
from only one superior.
• Unity of direction. Each group of organizational activities
that have the same objective should be directed by one
manager using one plan.
• Subordination of individual interests to the general
interest. The interests of any one employee or group of
employees should not take precedence over the interests
of the organization as a whole.
• Remuneration. Workers must be paid a fair wage for their
services.
Administrative Management
• Centralization. Centralization refers to the degree to
which subordinates are involved in decision making.
Whether decision making is centralized (to management)
or decentralized (to subordinates) is a question of proper
proportion. The task is to find the optimum degree of
centralization for each situation.
• Scalar chain. The line of authority from top management
to the lowest ranks represents the scalar chain.
Communications should follow this chain. However, if
following the chain creates delays, cross-
communications can be allowed if agreed to by all parties
and superiors are kept informed.
• Order. People and materials should be in the right place at
the right time.
Administrative Management
• Equity. Managers should be kind and fair to their
subordinates.
• Stability of tenure of personnel. High employee turnover
is inefficient. Management should provide orderly
personnel planning and ensure that replacements are
available to fill vacancies.
• Initiative. Employees who are allowed to originate and
carry out plans will exert high levels of effort.
• Esprit de corps. Promoting team spirit will build harmony
and unity within the organization.
Administrative Management
• Criticisms:
• Lack of Importance to Informal Organization
• Concepts Borrowed From Military Science
Bureaucratic Management
• Timeline:
• By: Max Webber
• About: According to Weber, the need for bureaucratization
in the ancient empire state arises from the maintenance
of armies, public finances and most importantly power
and politics.
Bureaucratic Management
• Principles:
1. Division of Labor: This principle involves breaking down tasks
into specialized roles, allowing employees to focus on specific
functions. This specialization increases efficiency and expertise.
2. Hierarchy: Organizations are structured in a clear chain of
command. Each level has defined authority, facilitating decision-
making and accountability. It ensures that everyone knows their
roles and responsibilities.
3. Rules and Rationality: Bureaucracies operate based on
established rules and procedures, which are designed to guide
decision-making and behavior. This rational approach promotes
consistency and predictability within the organization.
4. Impersonality: Interactions in a bureaucracy are conducted
without favoritism or personal biases. This ensures that all
employees are treated equally and that decisions are made
based on objective criteria.
5. Impartiality: Decisions are made based on objective criteria
rather than personal feelings or relationships. This promotes
fairness and transparency within the organization.
These principles aim to create a well-organized, efficient, and fair
workplace, though they can also lead to rigidity and resistance to
Human Relations Approach
• Timeline: 1920 to 1930
• By: Elton Mayo
• About: This approach recognized worker’s needs, feeling,
attitudes, values and desires are extremely important.
Mayo proved that through the ‘HAWTHORNE
EXPERIMENTS’ conducted between 1924 to 1933 in the
Hawthorne Plant of Western Electric Company, USA.
• The Experiments were Conducted in four phases:
• Phase 1: Illumination Experiments
• Phase 2: Relay Assembly Test Group
• Phase 3: Interviewing Programme
• Phase 4: The Bank Wiring Observation Room Experiments
Human Relations Approach
• Phase 1: Illumination Experiments
• The experiment was conducted to know the impact
of illumination on productivity.
• There were 2 groups used The Test Group and The
Control Group, both groups made Telephone relays.
• The light of the Test Group varied systematically
where as it remained constant for the Control
Group.
• At times, the light was as bright as the sun and at
times as dull as the moon.
• It was found that illumination had little or no
impact on the productivity of the group.
Human Relations Approach
• Phase 2: Relay Assembly Test Group
• A small group of workers were placed in a
separate room and a number of variables
were altered over time.
• The variables wages, rest periods of varying
length, the workdays and work week were
shortened.
• The people of the group took initiative to
make changes.
• The performance though increased initially
but the increase was very erratic to be
conclusive.
Human Relations Approach
• Phase 3: Interviewing Program
• Initiated a 3 year long Interviewing
Program from 1928 covering 21,000
employees of the company.
• The reason was to find out the causes of
productivity.
• The emphasis was on human relation
instead of working conditions.
• This phase of the experiment proved to be
useless as no fruitful results could be
derived.
Human Relations Approach
• Phase 4: The Bank Wiring Observation Room
Experiment.
• 14 male workers were formed into a work group
and observed for 7 months in a bank wiring room.
• The employees were to be paid bonus on the
basis of both individual and group efforts.
• The expectation was that the highly efficient
workers would put pressure on others for
increased productivity and increased bonus.
• The results came to be different and the group
had formed a mechanism to save themselves.
• Work Group Norms, Beliefs and Sentiments has a
greater impact in influencing individual behavior
that did the monetary incentives offered by the
management.
Human Relations Approach
• Importance:
• Led to Democratic style of management.
• The researchers recognized the
significance of management style led to its
growth.
• Humanized the employees.
• Attention was paid to teaching
Management skills instead of Technical
Skills.
• Led to Interest in Groups and Group
Dynamics instead of just studying
Individuals.
• Workers can be motivated by Non-
Financial Rewards also.
Contingency Approach
• Timeline: 1960’s
• By: Developed from the works of Fred Fielder.
• About: A contingency approach to
management is based on the theory that
management effectiveness is contingent - or
dependent - upon the interplay between the
application of management behaviors and
specific situations. In other words, the way
you manage should change depending upon
the circumstances.