Lecture Hours:50

B.E. in Computer Science and Business System

Visvesvaraya Technological University Belagavi-590018
firozkhan@vtu.ac.in

Module#1
SUBJECT BCB501

FUNDAMENTALS OF
MANAGEMENT
-Dr.Firozkhan
Faculty of Management Studies
VTU, Belagavi
 CONTENTS

• Background

• Pedagogy

• Faculty Introduction
• Fundamentals of Management

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 BACKGROUND
This subject intends:
• Understand the role of the company in the society and the different
business cultures.
• Understand how companies are organized and managed from a
business concept to ongoing
• operations with the support of strategic planning, formulation of
objectives and management control.
• Explore to the development of organizations and maintain
competitive advantage.
• Examination nature (SEE): Theory

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 PEDAGOGY
• 50 hrs. lecture of multiple modules

• Use of Video/Animation to explain functioning of various

concepts.

• collaborative (Group Learning) Learning in the class.

• Problem Based-Learning (PBL), which fosters Analytical

skills, develop design.

• Hands on experience with practical demonstration

• Student participation in discussion forum in the class is out

most importance

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 COURSE OUTLINE

Lecture
Lecture Lecture Name
Hours
#1 Introduction to Management 10

#2 Planning and Decision Making 10

#3 Organizing 10

#4 Leading, Motivation and controlling 10

#5 Organization Behaviour 10

Total Hours 50

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 FACULTY INTRODUCTION
• Assistant Professor (Ad hoc), VTU-Belagavi
• BBA, MBA and PhD (Full Time)
• Research, Industry & Teaching
• Worked in Levis, Classic Polo, GFGC, VTU
• Published Journals & Book, Received Awards, Presented
national and international papers in conferences
• Working on Book Writing

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 MODULE 1: INTRODUCTION TO
MANAGEMENT

• Introduction to Management : Definition, Nature

and Scope, Functions, Managerial Roles, Levels of
Management, Managerial Skills, Challenges of
Management
• Evolution of Management- Classical Approach-
Scientific and Administrative Management
• The Behavioral approach; The Quantitative
approach; The Systems Approach; Contingency
Approach.

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 Introduction To Management
Concept of Management The study of a discipline should
start with its definition delineating properly its contents and
characteristics, defining its scope and boundary, and
prescribing the objectives for which it stands From this point
of view, we can proceed further only when we define
management.

The term management is used in three contexts:

1. As a discipline
2. As a group of people
3. As a process

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 Introduction To Management
Management as a Discipline:
Discipline refers to a field of study having well-defined
concepts and principles. When we refer to
management as a discipline, we include in it the various
relevant concepts and principles, the knowledge of
which aids in managing. From this point of view
management can be treated either as an art or
science, the two basic and broad disciplines. However,
since management prescribes various principles and
how these principles can be applied in managing an
organization, it has the orientation of both, science and
art.

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 Introduction To Management
• Management as a Group of People: Management as a group
of people refers to those persons who perform the functions
relevant for managing organizations. For example, when you
say "Management of ABC & Company does not take
adequate care of its employees" , you are referring, to
management as a group of people of ABC & Company. Thus,
management is simply defined a 'Management is what
managers do'. However, this approach of defining
management is no adequate because it does not spell out
the types of activities that managers undertake.
• Management is a process: Process is a systematic method of
handling, activities. Thus, management is defined as follows:
Management is the process of getting things done with the
aim of achieving organizational objectives. Thus, all those
activities which meet this criterion are managerial activities.

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 Definitions of Management
1. According to George R. Terry, "Management is a
distinct process consisting of planning, organizing,
actuating and controlling, performed to determine and
accomplish stated objectives by the use of human
beings and other resources".
2. According to Peter Drucker, "Management is a multi-
purpose organ that manages business and manages
managers and manages workers and work".
3. According to Henry Fayol, "To manage is to forecast
and to plan, to organize, to command, to coordinate
and to control".
4. According to Mary Parker Fallett, "Management is the
art of getting things done through people".
5. According to Harold Koontz, "Management is the art of
getting things done through and with people in formally
organized groups‖.
Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan
 Introduction To Management
Features of management are as follows:
1. Group Activity: Management is a group activity because
it comes into existence only in a group which has two
categories of people: those who manage (known as
managers) and those who are managed (known as
operatives). Because of group activity, people are
placed in superior-subordinate relationships. A superior
directs his subordinates to perform specified activities to
achieve group's objectives while subordinates perform
those activities.
2. Goal-oriented Process: Management is a goal-oriented
process. A goal is a result or a set of end results which is to
be achieved by the management process. For example,
business organizations adopt management processes to
produce desirable products, to earn profit, and to
discharge social responsibility.
Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan
 Introduction To Management
Features Of Management Are As Follows Continuous:
3. Continuous Process: Management is a continuous
process. In a continuous process, there is no apparent
beginning or end of a particular activity. Elements of
management process (known as management functions)
- planning, organizing, staffing, directing, and controlling -
can be separated from each other but a manager may
perform all these functions in a single day but not
necessarily in the sequence presented above.
4. Integrating Force: Management works as an integrating
force. An integrating force is one that keeps various
related elements together and in proper form just like
cement keeps various building materials like bricks, sand,
steel, etc. together as a building. In an organization,
management integrates various resources - human,
physical and financial-to achieve organizational
objectives.
Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan
 Introduction To Management
Features Of Management Are As Follows Continuous:
5. Intangible Force: Management is an intangible force
which cannot be touched or seen but it can be inferred
by the way in which an organization works. The quality of
management a an intangible force is perceived by
analyzing how the organization is achieving its objectives
6. Universal: Management is universal. This feature of
management has two implications First, management is
relevant in all types of organizations: business or non-
business public or private, small or large. Second,
management is relevant throughout the world USA, Russia,
India, etc. However, management practices may differ
from country to country because of differences in their
cultures

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 Introduction To Management
PURPOSE OF MANAGEMENT:
Purpose of management is to achieve the following types of
objectives in an organization:
1. Organizational Objectives: Since an organization is a
purposive creation, it has certain objectives.
These objectives are defined in three forms: survival, profit,
and growth. (a) Survival Objective, (b) Profit Objective &
(c) Growth Objective
2. Individual Objectives: Individual objectives emerge
because individuals join it to satisfy their needs.
3. Social Objectives: An organization is an organ of the
society. Therefore, it has social objectives which can be
achieved by putting emphasis on (a) quality products at
fair prices, (b) fair dealings with suppliers, dealers.

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 Nature of Management
It including a field of study, specifies what exactly it is'. This is
true for management too.

 Multidisciplinary
 Management as both Science and Art
 Management as a Profession

1. Multidisciplinary: This implies that, although management

has been developed as a separate discipline, it draws
knowledge and concepts from various disciplines:
economics, psychology, sociology, political science,
anthropology, ecology, statistics, operations research,
history. The integration of knowledge of various disciplines

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 Nature of Management
2.Management as both Science and Art: Management is
both science (though not like pure science) and art. It
implies that a person, willing to become an effective
manager, has to learn principles of management just like
a would-be scientist does and to practice those
principles on continuous basis to get perfection just like
an artist does.
3. Management as a Profession: Management has been
regarded as a profession by many, while many have
suggested that it has not achieved the status of a
profession. It imparted to people aiming to be a
manager

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 Nature of Management
2.Management as both Science and Art: Management is
both science (though not like pure science) and art. It
implies that a person, willing to become an effective
manager, has to learn principles of management just like
a would-be scientist does and to practice those
principles on continuous basis to get perfection just like
an artist does.
3. Management as a Profession: Management has been
regarded as a profession by many, while many have
suggested that it has not achieved the status of a
profession. It imparted to people aiming to be a
manager

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 Functions of management

include all those activities which managers perform in an

organization to achieve its objectives. These functions
are
Planning: It involves determination of future course of action
to achieve the desired results. This involves deciding why
an action, what action, how to take action and when to
take action. Through these decisions, planning provides
base for other management functions. Thus, planning
aims at bridging the gap between present state of affairs
and desired future state of affairs.
Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan
 Functions of management cont..
Organizing: It is the process of dividing work into convenient
tasks, grouping such tasks in the form of positions, grouping of
various positions into departments, assigning tasks to various
positions, and delegating authority to these positions so that
the work is performed as planned. Organizing function
contributes to the efficiency of the organization by ensuring
that all necessary activities are performed by the relevant
persons.
Staffing: involves manning various organizational positions created
by organizing process. It involves identification of positions to
be filled, recruitment and selection, placement of employees
at relevant positions, training, employee mobility, performance
appraisal, and compensation. There is a controversy about
whether staffing is a function of management to be
performed by every manager or it is a function of Human
Resource (HR) department which performs major functions
included in staffing

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 Functions of management cont..
Directing: It is the process of instructing, guiding, motivating, and
leading people in the organization to achieve its objectives.
When people are available in the organization through
staffing process, they must know what they are expected to
do. This is done by superiors through directing. Initially, they
communicate their subordinates what to do and how to do.
Afterwards, there is continuous process of directing in the form
of motivating subordinates and leading them for better
performance. Controlling. After performance results are
available, controlling comes in picture.
Controlling: It comes in picture. Controlling involves identification
of performance results, comparing these with standards set,
identifying deviation between the two, and taking necessary
corrective action if the deviation is beyond the acceptance
level.

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 Management Roles
According to Mintzberg, there are three broad categories of roles
that a manager performs in an organization: interpersonal
roles, informational roles, and decisional roles

Image Source: https://www.simplinotes.com

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 Management Roles cont..
 INTERPERSONAL ROLES
 INFORMATIONAL ROLES
 DECISIONAL ROLES
INTERPERSONAL ROLES:
1. Figurehead Role : Greeting the visitors, attending social
functions involving employees, and handing out merit
certificates and other awards to outstanding employees.
2. Leader Role: Manager involves leading his subordinates
and motivating them for willing and enthusiastic
contribution.
3. Liaison Role: Liaison role of a manager serves as a
connecting link between his organization and outsiders or
between his unit and other units of the organization.

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 Management Roles cont..
INFORMATIONAL ROLES :

1. Monitor Role: Monitor role of a manager is to constantly

collect information about those factors which affect his
activities. Such factors may be within the organization
and outside it.
2. Disseminator Role: Disseminator role of a manager
involves sharing of information with his subordinates who
may otherwise not be in a position to collect it.
3. Spokesperson: In the role of spokesperson, a manager
represents his organization while interacting with outsiders
- customers, financiers, suppliers, government, and other
agencies of the society

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 Management Roles cont..
DECISIONAL ROLES:
1. Entrepreneur: A manager assumes certain risk which is
involved in terms of outcomes of an action because
these are affected by a variety of external factors.
2. Disturbance Handler: As a disturbance handler, a
manager is required to contain those forces and events
which tend to disturb the organizational equilibrium and
normal functioning.
3. Resource Allocator: As a resource allocator, a manager
allocates organizational resources of various types to
different organizational units.
4. Negotiator: As a negotiator, a manager negotiates with
various interest groups in the organization - shareholders,
employees, and outsiders.

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 Management Roles cont..
RECONCILING MANAGEMENT FUNCTIONS AND ROLES

Image Sources: https://edukedar.com

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 Levels of Management
In an organization, people are arranged in a hierarchy.
Hierarchy denotes putting people in superior-subordinate
relationships. These relationships denote levels of
management in an organization.

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 Levels of Management Cont..
Top management consists of Board of Directors, Chairman of Board
of Directors (simply called Chairman), and Chief Executive. In
some organizations, the positions of Chairman and Chief
Executive are assigned to one person, for example, Mukesh
Ambani is Chairman and Managing Director (CEO) of Reliance
Industries Limited.
1. Formulation of long-term organizational objectives.
2. Formulation of long-term overall plans.
3. Formulating strategies for the organization as a whole
4. Formulation of broad policies
5. Prescribing overall organization structure.
6. Appointment of key managers in the organization.
7. Providing guidance and direction to departmental heads.
8. Allocating resources to different business units
9. Coordinating the operations of different departments
10. Reviewing and controlling overall organizational performance.
11. Keeping liaison with various external agencies like shareholders
Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan
 Levels of Management Cont..
Middle Management: lies in between top management and
supervisory management. Sometimes, middle management is put
into three categories - upper, middle, and lower middle
management - because of large number of superior-subordinate
The main functions of middle management are as follows
1. Formulating tactical plans for short term based on overall long-
term plans of the organization for implementing long-term plans,
strategies, and policies formulated by top management.
2. Allocating resources - human as well as non-human - to different
sections and activities of the department.
3. Recruiting supervisory personnel.
4. Providing guidance and direction to supervisory management.
5. Coordinating functions of various sections of the department.
6. Developing supervisory personnel through training.
7. Reviewing and controlling departmental functioning.

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 Levels of Management Cont..
Supervisory Management : Supervisory management, also known as
lower or operational management, lies at the bottom of the
management hierarchy. It deals directly with operatives
(employees who are engaged in handling business operations). A
supervisor acts as a link between management and operatives.
The main functions of supervisory management are as follows:
1. Formulating day-to-day plans for carrying out business operations.
2. Providing resources required by operatives.
3. Providing safe and congenial working conditions.
4. Supervising and guiding operatives.
5. Providing training to operatives.
6. Maintaining good industrial relations.
7. Conveying grievances of operatives upward.
8. Reviewing and controlling performance of operatives.

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 MANAGEMENT SKILLS
In order to perform various management functions, managers
must have certain skills. Skills refer to practical ability or
expertness required in an action or doing something. Robert
Katz has put various management skills into three broad
categories: technical skills, human skills, and conceptual
skills. This classification of management skills is more popular
Technical Skills: Refer to knowledge and proficiency in
processes, procedures, methods, and techniques which are
used in doing a work. These skills are hard skills and are
easily visible in a person. Technical skills are developed by
accountants, engineers, managers, and other persons
through the actual practice by doing things. For manages,
technical skills are required for effective performance of the
following managerial jobs:
1. Managers are required to maintain workflow in the organization
2. Managers are required to maintain order in the work system

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 MANAGEMENT SKILLS cont..
Human Skills : Human skills, also known as human relations
skills or administrative skills, are the ability of a person to
work with others on a person-to-person basis and to build
cooperative group relations to achieve group objectives
and, consequently, organizational objectives. Human skills
are required in managers for effective performance of the
following managerial jobs:
1. Managers interact with others on one-to-one basis:
2. Managers communicate frequently with others - within the
organization and outside it
3. Managers influence behaviour of subordinates to get
intended results
4. For getting better results, managers must motivate their
subordinates so that they put their utmost efforts.
5. Organizational conflicts are natural phenomena
Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan
 MANAGEMENT SKILLS Cont..
• Conceptual Skills
• Conceptual skills, also known as general management
skills, are related to concepts and mental perception -
conceptual framework intended to develop new ideas,
products, etc. Conceptual skills refer to the ability to see the
whole picture to recognize significant elements in a situation
and to understand the relationship among these elements.
Conceptual skills are required for effective performance of
the following managerial jobs:
• 1. Managers, particularly at higher levels, are required to
make strategic decisions
• 2. Managers are required to build models like model
showing how different business activities will contribute to
revenue generation, model for predicting environmental
variables, etc.

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 MANAGEMENT SKILLS Cont..
• Top Management Skills
Chief Executives require fourteen skills. Accordingly, a chief
executive thinks globally, anticipates opportunities, creates a
shared vision, develops and empowers people, appreciates
cultural diversity, builds teamwork and partnership, embraces
changes, shows technological savvy, encourages constructive
challenge, ensures customer Satisfaction, achieves a competitive
advantage, demonstrates personal mastery, shares leadership,
and lives the values.
• Middle Management Skills
In middle management group, there may be managers at
different levels placed between the top management and
supervisors. Usually, they are concerned with a particular
functional area of the organization. There is a tendency of
faster movement of this group of managers.
middle management require human relations skill,
leadership skill, motivating skill, and integrative skill..
Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan
 MANAGEMENT SKILLS Cont..
• Supervisory Management Skills
Supervisors may also be classified into front-line,
intermediate, and senior. Since they are directly concerned
with operatives where the actual operations of the
organization take place, supervisors should possess skills
which help them to get things done by operatives. Every
supervisor in the organization should have sound technical
knowledge of his field to provide proper instructions and
guidance to operatives, interpersonal skill to develop
cohesive operative-management relations, accuracy in
work, motivational skill for creating proper work
environment, and communication skill for interacting with
higher management.

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 CHALLENGES OF MANAGEMENT
• Managers have to perform their functions in the
organization. The systems approach of managing suggests
that an organization, being a subsystem of broader societal
system, has to work within the framework provided by the
society and its various constituents. These constituents in
combined form are known as environment of the
organization. Since environment has very significant impact
on working of organizations, managers have to understand
environment for effective working of their organization but
affect organizational working. Based on the type of impact
that the environment has on organizations, it is classified into
two parts:
1. General environment
2. Specific environment

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 CHALLENGES OF MANAGEMENT
• . General Environment
General environment, also known as societal environment,
consists of those factors which affect all the organizations in
a given society homogeneously. Effect of general
environment on organizations is indirect as it just sets forth
the framework for working of the organizations. Factors of
general environment are economic, social, technological,
political, and legal.
• Specific Environment
Specific environment, also known as task or direct impact
environment, consists of those factors that affect organizations
directly and immediately. Factors of specific environment are
investors, customers, competitors, and suppliers. Environment
provides both the opportunities and threats. In order to know
whether there is an opportunity or threat, we have to look at
the nature of environment in terms of its complexity and
variability.
Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan
 CHALLENGES OF MANAGEMENT
• Environmental Complexity
Environmental complexity refers to the degree of
heterogeneity and range of activities which are relevant to an
organization's operations. Thus, if an organization's
environment has large number of activities with high
heterogeneity, environment becomes complex. The
heterogeneity relates to the variety of activities in the
environment affecting the organization. Organizations dealing
with non-complex environment have one advantage in the
sense that there are fewer critically important information
categories necessary for decision making. As against this,
organizations working in complex environment have to
process a large variety of information.

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 CHALLENGES OF MANAGEMENT
• Environmental variability
Environmental variability refers to rate of change in
environment. Environment, being dynamic, changes over the
period of time, but it is the rate of change which is a matter of
concern. There can be low or high change rate.
Environmental variability depends on
• The frequency of change in relevant activities
• The degree of change in these activities
• The degree of irregularity in the overall patterns of change

Image Sources: L.M. Prasad (2022), Principles and Practice of Management, Sultan Chand & Son 10(71).
Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan
 CHALLENGES FOR MANAGERS IN
TWENTY-FIRST CENTURY
• Responding to Globalization
• Globalization Challenges
 Cultural Diversity
 Multicultural Workforces
 Language Diversity
 Economic Diversity
• Global Managerial Competencies
• Integrating Mergers and Acquisitions
• Managing Workforce Diversity
• Improving Customer services
• Working in Networked Organization
• Improving People’s Skills
• Enhancing Employee Well-Being at Workplace
Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan
 EVOLUTION OF MANAGEMENT
• Management practice is as old as human civilization when
people started living together in groups. early contributions
which were relevant for management also came from
people related with public administration.
• Initially, came from people discharging managerial
responsibilities or closely related to business operations.
these contributions were not systematic
• Over the period of time, growing competition and
complexity of managing large business organizations
provided stimulate for developing systematic management
concepts and principles.
• This phenomenon attracted the attention of a wide variety
of intellectuals - economists, sociologists, psychologists,
anthropologists, mathematicians, and management
practitioners.

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 EVOLUTION OF MANAGEMENT
• This led to the emergence of a variety of orientations and
approaches in management; some making clear
demarcation from others; some overlapping others.
Similarly, a particular approach did not really start with the
end of the previous one so far as time period was
concerned. Table presents list of approaches to
management
CLASSICAL APPROACHES:
 Scientific management
 Administrative management
NEOCLASSICAL APPROACHES:
 Behavioural approach
CONTEMPORARY APPROACHES:
 Quantitative approach
 Systems approach
 Contingency approach
Table Sources: L.M. Prasad (2022), Principles and Practice of Management, Sultan Chand & Son 10(34)
Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan
 MANAGEMENT PERRSPECTIVE
OVER TIME

Table Sources: L.M. Prasad (2022), Principles and Practice of Management, Sultan Chand & Son 10(34)
Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan
 CLASSICAL APPROACHES:
SCIENTIFIC MANAGEMENT
Taylor's Scientific Management:-
The concept of scientific management was introduced by
Frederick Winslow Taylor (1856-1915) in USA in the beginning
of 20th century.
Scientific management is concerned with knowing exactly
what you want men to do and then see in that they do it in
the best and cheapest way.
Since Taylor has put the emphasis on solving managerial
problems in a scientific way. Taylor has suggested principles
of scientific management, techniques of scientific
management, and mental revolution.
Taylor has suggested mental revolution.

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 SCIENTIFIC MANAGEMENT Cont..
Principles of scientific management are as follows:
• Science, Not Rule of Thumb: Scientific method involves
investigation of traditional work methods through work study
and unifying the best practices and developing a standard
method which would be followed throughout the
organization.
• Harmony, Not Discord: This principle involves maintaining
harmony between management and workers in place of
discord (conflict) between them. Both should realize that
they require each other.
• Cooperation, Not Individualism: This principle involves
cooperation between management! and workers instead
of individualism
• Development of Each and Every Person: There should be
scientific selection of workers and work assigned to them
should suit their physical, mental, intellectual capabilities
Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan
 CLASSICAL APPROACHES:
ADMINISTRATIVE MANAGEMENT
FAYOL'S ADMINISTRATIVE MANAGEMENT
father of modern operational management theory is the
French industrialist Henry Fayol. His contributions are generally
termed as operational management or administrative
management. Fayol looked at the problems of managing an
organization from top management point of view. He has
used the term administration' instead of 'management. Fayol
has divided his approach of studying management into three
parts:
(i) Managerial qualities and training
(ii) General principles of management
(iii) Elements of management

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 ADMINISTRATIVE MANAGEMENT
1) Managerial Qualities and Training:
Fayol was the first person to identify the qualities required in a
manager. According to him, there are six types of qualities
that a manager requires:
(i) Physical (health, energy, and address)
(ii) Mental (ability to understand and learn, judgment, mental
vigor, and capability)
(iii) Moral (energy, firmness, initiative, loyalty, tact, and dignity)
(iv) Educational (general acquaintance with matters not
belonging exclusively to the function performed
(v) Technical (peculiar to the function being performed), and
(vi) Experience (arising from the work). Fayol has observed
that the most important ability for a worker is technical; the
relative importance of managerial ability increases as one
goes up the scalar chain, with insight becoming the most
important ability for top level executives.
Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan
 ADMINISTRATIVE MANAGEMENT
2) General Principles of Management :
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 Employees
8. Centralization and Decentralization
9. Scalar Chain
10. Order
11. Stability of Personnel
12. Initiative
13. Esprit de Corps
Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan
 ADMINISTRATIVE MANAGEMENT
3) Elements of management:
Same as factions of management

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 NEOCLASSICAL APPROACHES
Neoclassical approaches are human relations approach,
social system approach, decision theory approach,
and behavioural approach. This approach, (also
known as human behaviour, leadership, behavioural
science or human resource approach), integrates the
existing and newly-developed theories and methods of
the relevant behavioural sciences for the study of
human behavior in organizations.
1) BEHAVIOURAL APPROACH
Among the many individual and social psychologists who
have contributed to behavioural approach are
Maslow (need hierarchy), Herzberg (motivation-
hygiene theory and job enrichment), McGregor
(theory X and theory Y).

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 BEHAVIOURAL APPROACH
Maslow (need hierarchy)

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Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan
 BEHAVIOURAL APPROACH
McGregor (theory X and theory Y)

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Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 BEHAVIOURAL APPROACH
1. People do not dislike work. If they have been helped to
establish objectives, they will want to achieve them. In
fact, job itself is a source of motivation and satisfaction
to employees.
2. Most people can exercise a greater deal of self-
direction, self-control, and creativity than are required
in their current job. Therefore, there remains untapped
potential among them.
3. The manager's basic job is to use the untapped human
potential in the service of the organization.
4. The manager should create a healthy environment
wherein all subordinates can contribute to the best of
their capacity. The environment should provide a
healthy, safe, comfortable, and convenient place to
work.

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 BEHAVIOURAL APPROACH Cont..
5. The manager should provide environment for self-
direction by subordinates and they must be
encouraged to participate fully in all important
matters.
6. Operating efficiency can be improved by expanding
subordinates' influence, self-direction, and self-control.
7. Work satisfaction may improve as a 'by-product' of
subordinates making full use of their potential.

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 CONTEMPORARY APPROACHES
Contemporary approaches to management (also known
as modern approaches to management) provide a
framework of management practices based on more
recent trends, such as globalization, McKinsey's 7-S
approach, excellence models, productivity and
quality issues, etc.
Main features of contemporary approaches are:
(1) Belonging to or occurring in the same period of time,
(2) Existing or occurring at the present time,
(3) Conforming to modern or current ideas and styles
(4) Having approximately the same age.
There are three contemporary approaches to
management: quantitative approach, systems
approach, and contingency approach.

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 CONTEMPORARY APPROACHES
McKinsey's 7-S approach:

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Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan
 QUANTITATIVE APPROACH
Quantitative approach (also known as management
science approach, mathematical, or operations research
approach) visualizes management as a logical entity.
1. Management is regarded as the problem-solving
mechanism with the help of mathematical tools and
techniques.
2. Management problems can be described in terms of
mathematical symbols and data. Thus, every managerial
activity can be quantified.
3. This approach covers decision making, systems analysis,
and some aspects of human behaviour approach.
4. Operations research, mathematical tools, and
quantitative techniques are the base methodologies to
solve managerial problems. Management science
approach is a fast developing one in analyzing and
understanding management
Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan
 SYSTEMS APPROACH
Systems approach has attracted the maximum attention of
thinkers in management particularly in the present era. It
is an integrating approach which considers management
in its totality based on empirical data. The basic idea of
systems approach is that an organization must rely on a
method of analysis involving simultaneous variations of
mutually dependent variables. This happens when
systems approach is applied in management.
 Open Systems

 Closed Systems

 Subsystems

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 SYSTEMS APPROACH

Sources: Daft R.L (2008) Management Thomson South –western Mason USA

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 SYSTEMS APPROACH
OPEN SYSTEMS:
• An open system is one that continuously interacts with its
environment for taking inputs and giving outputs. It has
the following characteristics:
1. Importation of Energy: An open system takes energy -
various types of inputs - from the environment
2. Throughput: An open system converts the inputs into some
kind of outputs
3. Outputs: An open system exports some outputs to the
environment
4. System as Cycles of Events: The pattern of activities -
inflow of inputs, throughput, and outflow of outputs - has
a cyclic character.
5. Negative Entropy: Entropy is the law of nature which
suggests that all organized forms move towards
disorganization and demise (Very difficult to maintain)
Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan
 SYSTEMS APPROACH
6. Feedback Mechanism: An open system has feedback
mechanism through which it imports information from the
environment to evaluate effectiveness of its working.
7. Steady State: The importation of energy from the
environment to maintain negative entropy has some
consistency in energy exchange so that the system has
steady state.
8. Differentiation: An open system moves in the direction of
differentiation. Therefore, old pattern of working may be
replaced by new pattern which may be specialized and
more effective.
9. Integration and Coordination: As differentiation progresses,
the system must provide some mechanisms for integrating
and coordinating various parts. In the case of an
organization.
10. Equifinality: This principle suggests that a system can reach
the same final state from differing initial conditions and by a
variety of paths
Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan
 SYSTEMS APPROACH
Closed System:
As against an open system, a closed system does not
interact with is environment. Such a system has the
following characteristics:
1. A closed system has no interaction with outside
environment. Therefore, no outside system imposes on it
for taking inputs or giving outputs.
2. A closed system is self-contained and self-maintaining
because of lack of outside interaction. As a result,
managing such a system is less complex.
3. A closed system is generally mechanical in nature, for
example, an automatic mechanical watch. Therefore,
once it is set, it continues to work.
4. A closed system is like a close loop and lacks feedback
mechanism. Therefore, it is subject to entropic process.
Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan
 SYSTEMS APPROACH
Subsystems :
A subsystem is a part of a system having its own objectives,
processes, roles, structure, and norms of conduct. Every
system has subsystems which are interrelated to constitute
the system as entity. The various subsystems of an
organization constitute the mutually dependent parts. For
example, each unit/department of the organization is a
subsystem.
Carzo and Yanouzas have identified three subsystems:
technical subsystem, social subsystem, and power
subsystem. However, in these managerial subsystem
should also be added subsystems, so that managerial
aspect is given due emphasis
1. Technical Subsystem
2. Social Subsystem
3. Power Subsystem
4. Managerial Subsystem
Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan
 CONTINGENCY APPROACH
Contingency approach (also known as situational
approach) is an important addition to the
contemporary approaches to management,
contingency approach suggests what should be done
in response to an event in the environment'.
Contingency approach has the following features:
1. Management action is contingent on certain action
outside the system or subsystem as the case may be.
2. Organizational action should be based on the
behaviour of action outside the system so that
organization is integrated with the environment.
3. Organization-environment relationship is specific in
case of each organization. Therefore, no action can
be universal; it varies from situation to situation.

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan

 THANK YOU

Faculty of Management Studies, VTU, Belagavi -Dr.Firozkhan