Introduction to Management
Dr.Rashmi Badjatya Rawat
Introduction to Management
• Management is the act of getting people and
resources together to accomplish desired goals and
objectives.
• Management is the coordination and administration
of tasks to achieve a goal.
Dr.Rashmi Badjatya Rawat
Introduction to Management
• Management is a process • Management in
of planning, decision all business and
making, organizing, organizational activities
leading, motivation and is the act of getting
controlling the human
people together to
resources, financial,
physical, and information accomplish desired
resources of an goals and objectives
organization to reach its using available
goals efficiently and resources efficiently
effectively. and effectively. ...
Dr.Rashmi Badjatya Rawat
Definition of Management
• "Management is a multi- • Harold koontz
purpose organ that “Management is the art of
manages business and getting things done
through others and with
manages managers and
formally organised groups.”
manages workers and
• F.W. Taylor “Management
work."
is the art of knowing what
– This management
you want to do and then
definition was given
seeing that they do it in the
by Peter F. Drucker in his
best and the cheapest
book, The Practice
manner.”
of Management
Dr.Rashmi Badjatya Rawat
Definition of Management
• George R.Terry “Management is a distinct
process consisting of planning, organising,
actuating and controlling; utilising in each
both science and arts, and followed in order to
accomplish pre-determined objective.”
• Henri Fayol “Management is to forecast, to
plan, to organize, to command, to coordinate
and control activities of others.”
Dr.Rashmi Badjatya Rawat
Need for Management
• Management in all business and organizational activities is
the act of getting people together to accomplish desired
goals and objectives using available resources efficiently
and effectively.
• Since organizations can be viewed as systems,
management can also be defined as human action
(including design) to facilitate the production of useful
outcomes from a system.
• Therefore, management is needed in order to facilitate a
coordinated effort toward the accomplishment of the
organization’s goals.
Dr.Rashmi Badjatya Rawat
The Need for management
• Since most managers are responsible for more work than
one person can normally perform, a good manager
delegates and integrates his or her work (or the work of
others).
• A manager does this by acting as a clear channel of
communication within the business that he or she
serves.
• Good management is needed to inject motivation,
creativity, discipline, and enthusiasm into areas in which
they either don’t exist or they’re not necessarily wanted.
Dr.Rashmi Badjatya Rawat
Importance of Management
• It helps in Achieving Group Goals
• Optimum Utilization of Resources
• Reduces Costs
• Establishes Sound Organization
• Establishes Equilibrium
• Essential for Prosperity of Society
Dr.Rashmi Badjatya Rawat
MANAGEMENT FUNCTIONS
Dr.Rashmi Badjatya Rawat
Primary Functions of Management
Planning
Organizing
Staffing
Directing
Coordinating
Controlling
Dr.Rashmi Badjatya Rawat
FUNCTIONS OF MANAGEMENT
Dr.Rashmi Badjatya Rawat
Planning
Dr.Rashmi Badjatya Rawat
Planning
• Planning means defining performance goals
for the organization and determining what
actions and resources are needed to achieve
the goals.
• Through planning, management defines
what the future of the organization should
be and how to get there.
Dr.Rashmi Badjatya Rawat
Planning
• Planning is the most fundamental and most pervasive of all
management functions.
• Planning is concerned with what, how and when of a
performance.
• It is deciding in the present about the future objective and the
course of action for their achievement.
• It involves:
– determination of long-range objectives,
– development of Strategies and course of actions to be followed for the
achievement of these objective
– and formulation of policies procedures and rules etc for the
implementation of Strategies and plans
Dr.Rashmi Badjatya Rawat
Organizing
• Organizing involves
assigning authority and
responsibility to various
departments, allocating
resources across the
organization, and
defining how the
activities of groups and
individuals will be
coordinated.
Dr.Rashmi Badjatya Rawat
Organizing
• Organising is that the basic process of combining and
integrating human physical and financial resources and
productive interrelationships for the achievement of
enterprise objective
• Organizing thus involves the following sub Functions:
– Identification of activities required for achievement of objectives
and implementation of plans.
– Grouping of activities so as to create self contained jobs.
– Assignment of jobs to employees.
– Delegation of authority as to enable them to perform their jobs
and to commander resources needed for their performance.
– Establishment of a network of coordinating relationships
Dr.Rashmi Badjatya Rawat
Staffing
• Staffing is the process of
hiring eligible candidates in
the organization or company
for specific positions. In
management, the meaning
of staffing is an operation of
recruiting the employees by
evaluating their skills,
knowledge and then offering
them specific job roles
accordingly.
Dr.Rashmi Badjatya Rawat
Staffing
• After the objectives have been determined,
Strategies and policies and programmes and rules
formulated for their achievement, the next logical
step in the management process is to procure
suitable personnel for managing the jobs.
• The efficiency and effectiveness of an organisation
significantly depends on the quality of its
personnel thereby making staffing as an important
function of Management.
Dr.Rashmi Badjatya Rawat
Directing
• Directing is the function of leading the
employees to perform efficiently and
effectively and contribute their optimum to
the achievement of of organisational goal.
• Jobs assigned to subordinates have to be
explained and clarify they have to be
provided guidance in job performance and
supervised and they are to be motivated to
contribute their optimum performance
with zeal and enthusiasm.
• The function of directing thus involves the
following functions
– communication
– motivation and
– leadership
Dr.Rashmi Badjatya Rawat
Controlling
• Control is the function of ensuring that the Divisional,
departmental sectional and individual performances are
consistent with the pre-determined objectives and goals.
• Deviations from objectives and plans have to be identified and
investigated, and corrective action to be taken.
• Deviations from plans and objective provide feedback to
manager and all other management processes including
planning organising staffing directing and coordinating and are
continuously reviewed.
• Following some functions of controlling
– Measurement of performance against pre-determined goals
– Identification of deviation from these goals
– Corrective actions to rectify deviations
Dr.Rashmi Badjatya Rawat
ROLES AND RESPONSIBILITIES OF A
MANAGER
Dr.Rashmi Badjatya Rawat
Who is a Manager?
• The one who
Manages.
• A person
responsible for
controlling or
administering an
organization or
group of staff.
Dr.Rashmi Badjatya Rawat
Dr.Rashmi Badjatya Rawat
Dr.Rashmi Badjatya Rawat
Dr.Rashmi Badjatya Rawat
POSDCORB
Dr.Rashmi Badjatya Rawat
PRINCIPLES OF MANAGEMENT
BY HENRY FAYOL
Dr.Rashmi Badjatya Rawat
Principles of Management by Henri Fayol
• Henri Fayol is claimed to be the real father
of modern management. He was a
Frenchman born in 1841 and was working
as an engineer with a mining company.
• He improved the condition of the
company from virtual bankruptcy to high
success. From his practical experience, he
developed some techniques.
• He brought out some 14 basic management
principles, which he felt, could be used In
all management situations, irrespective of
the organizational framework.
Dr.Rashmi Badjatya Rawat
Dr.Rashmi Badjatya Rawat
Dr.Rashmi Badjatya Rawat
Division of Work
• Dividing the full work of the organization
among individuals and creating departments is
called the division of work.
• Division of work leads to specialization, and
specialization helps to increases efficiency and
efficiency which results in improvements in
the productivity and profitability of the
organization
Dr.Rashmi Badjatya Rawat
#2 Authority and Responsibility
• Authority means power take decision.
Responsibility means obligation to
complete the job on time.
• There should be a balance and parity b/w
authority and responsibility . Excess of
authority may bring negative results and
Excess of responsibility will not allow the
worker to complete the work on time.
• Balance b/w both of them will result in no
misuse of authority and it also helps in
meeting responsibility on time without
any delay.
Dr.Rashmi Badjatya Rawat
#3 Discipline
• Discipline means respect for the rules and
regulations of the organization. Discipline may
be Self-discipline, or it may be Enforced
discipline.
• No slacking or bending of rules should be
allowed in any organization. The workers must
respect the rules that run the organization.
• To establish discipline, good supervision and
impartial judgment is needed.
• Good behavior and civilized interactions make
the management work smoothly and efficiently.
Dr.Rashmi Badjatya Rawat
Unity of Command
• According to this principle, a subordinate
(employee) must have and receive orders
from only one superior (boss or manager).
• To put it another way, a subordinate must
report to only one superior. It helps in
preventing dual subordination. This decreases
the possibilities of “Dual subordination” which
creates a problem.
Dr.Rashmi Badjatya Rawat
# 5 Unity of Direction
• One head and one plan for a group of activities with the
same objective. All activities which have the same
objective must be directed by one manager, and he must
use one plan.
• For example, all marketing activities such as advertising,
sales promotion, pricing policy, etc., must be directed by
only one manager.
• He must use only one plan for all the marketing
activities. Unity of direction means activities aimed at the
same objective should be organized so that there is one
plan and one person in charge.
Dr.Rashmi Badjatya Rawat
#6
Subordination of Individual Interests to the General Interest
• The interest of one individual or one group
should not prevail over the general good. The
individual interest should be given less
importance, while the general interest should
be given the most importance.
• If not, the organization will collapse. The
interest of the organizational goal should not
be sabotaged by the interest of an individual or
on the group.
Dr.Rashmi Badjatya Rawat
• Remuneration is the price for services
received. Pay should be fair to both the
employee and the firm.
• If an organization wants efficient employees
and best performance, then it should have a
good remuneration policy.
# 7 Remuneration
Dr.Rashmi Badjatya Rawat
#8 Centralization vs Decentralization
• Centralization is always present to a greater or lesser extent,
depending on the size of the company and the quality of its
managers. In centralization, the authority is concentrated only in a
few hands.
• However, in decentralization, the authority is distributed to all the
levels of management. No organization can be completely centralized
or decentralized.
• If there is complete centralization, then the subordinates will have no
authority (power) to carry out their responsibility (duties). Similarly, if
there is complete decentralization, then the superior will have no
authority to control the organization.
• Therefore, there should be a balance between centralization and
decentralization.
Dr.Rashmi Badjatya Rawat
Dr.Rashmi Badjatya Rawat
9. Scalar Chain
• Scalar chain is the formal line of authority
which moves from highest to lowest rank in a
straight line. This chain specifies the route
through which the information is to be
communicated to the desired location/person.
• Fayol emphasized that every information in the
organization must flow according to this chain
to facilitate clear communication of orders of
the superiors and feelings of the subordinates.
Dr.Rashmi Badjatya Rawat
Gang Plank
• According to this concept, two
executives of the organization of
different department at the same level
can communicate directly in case of
emergency, so that speedy decisions
and actions could be taken.
• In case of this example, if employee
‘D’ has to contact employee ‘G’, he can
easily and directly communicate the
information to ‘G’ using this Gang
plank (‘D’4‘G’). This reduces a lot of
time and helps in effective
performance.
Dr.Rashmi Badjatya Rawat
10. Order
• A place for everything and everything in its place’ the
right man in the right place. There should be an
Order for material/things and people in the
organization.
• Order for things is called Material Order and order
for people is called ‘Social Order’. Material Order
refers to “a place for everything and everything in its
place.”
• Social Order refers to the selection of the “right man
in the right place”.
Dr.Rashmi Badjatya Rawat
11. Equity
•While dealing with
the employees a
manager should use
kindliness and justice
towards employees
equally. Equity is a
combination of
•It creates loyalty and devotion in the employees toward the
kindness and justice.
organization. The equity principle suggests that the managers
must be kind as well as equally fair to the subordinates.
Dr.Rashmi Badjatya Rawat
12. Stability of Tenure of Personnel
• Although it could take a lot of time, Employees
need to be given fair enough time to settle
into their jobs. An employee needs time to
learn his job and to become efficient.
• The employees should have job security
because instability leads to inefficiency.
• Successful firms usually had a stable group of
employees.
Dr.Rashmi Badjatya Rawat
13. Initiative
• Without limits of authority and discipline, all levels
of staff should be encouraged to show initiative.
Management should encourage initiative.
• That is, they should encourage the employees to
make their own plans and to execute these plans.
This is because an initiative gives satisfaction to the
employees and brings success to the organization.
• It allows the subordinates to think out a plan and
do what it takes to make it happen.
Dr.Rashmi Badjatya Rawat
14. Esprit De Corps
• Esprit de Corps means “Team Spirit”.
Therefore, the management should create
unity, co-operation, and team-spirit among
the employees.
• They should avoid dividing and rule policy.
Harmony, cohesion among personnel. It’s a
great source of strength in the organization. It
is a quality in every successful business.
Dr.Rashmi Badjatya Rawat
MANAGEMENT THOUGHT
Dr.Rashmi Badjatya Rawat
Management Thought
• The practice of management is as old as human
civilization. The ancient civilizations of Egypt (the great
pyramids), Greece (leadership and war tactics of
Alexander the great) and Rome displayed the marvelous
results of good management practices
• The origin of management as a discipline was developed
in the late 19th century. Over time, management thinkers
have sought ways to organize and classify the
voluminous information about management that has
been collected and disseminated.
Dr.Rashmi Badjatya Rawat
Management Thought
• These attempts at classification have resulted
in the identification of management
approaches. The approaches of management
are theoretical frameworks for the study of
management.
• Each of the approaches of management are
based on somewhat different assumptions
about human beings and the organizations for
which they work.
Dr.Rashmi Badjatya Rawat
Management School/Theory/Thought
• The Classical School
– The Classical Scientific School
– The classical Administrative school
• The Human Relations School
• Systems Theory
• Contingency Management
Dr.Rashmi Badjatya Rawat
The classical School
• One of the first schools of management thought, the classical
management theory, developed during the Industrial
Revolution when new problems related to the factory system
began to appear.
• Managers were unsure of how to train employees or deal with
increased labor dissatisfaction, so they began to test solutions.
• As a result, the classical management theory developed from
efforts to find the “one best way” to perform and manage
tasks.
• This school of thought is made up of two branches:
– Scientific and
– Administrative
Dr.Rashmi Badjatya Rawat
The Classical School
The scientific Management
• The classical scientific branch arose because of
the need to increase productivity and efficiency.
The emphasis was on trying to find the best way
to get the most work done by examining how the
work process was actually accomplished and by
scrutinizing the skills of the workforce.
• The classical scientific school owes its roots to
several major contributors, including Frederick
Taylor, Henry Gantt, and Frank and Lillian Gilbreth.
Dr.Rashmi Badjatya Rawat
The Classical School
The scientific Management
• Contributions by Frederick Taylor
• Taylor believed that organizations should
study tasks and develop precise procedures.
– As an example, in 1898, Taylor calculated how
much iron from rail cars Bethlehem Steel plant
workers could be unloading if they were using the
correct movements, tools, and steps. The result
was an amazing 47.5 tons per day instead of the
mere 12.5 tons each worker had been averaging.
Dr.Rashmi Badjatya Rawat
Taylor’s Scientific Principles of Management
• Replacement of Old Rule of Thumb Method
• Scientific Selection and Training of Workers
• Co-Operation between Labour and Management
• Maximum Output
• Equal Division of Responsibility
• Mental Revolution
• Harmony, not Discord
• Development of Each and Every Person to His or Her
Greatest Efficiency and Prosperity
• Subordination of Individual Interests to General Interest.
Dr.Rashmi Badjatya Rawat
The Classical School
The scientific Management
• Henry Gantt, an associate of Taylor developed
the Gantt chart, a bar graph that measures
planned and completed work along each stage
of production.
• Based on time instead of quantity, volume, or
weight, this visual display chart has been a
widely used planning and control tool since its
development in 1910.
Dr.Rashmi Badjatya Rawat
The Classical School
The scientific Management
• Frank and Lillian Gilbreth, a husband‐and‐wife team, studied job
motions.
• In Frank's early career as an apprentice bricklayer, he was
interested in standardization and method study.
• He watched bricklayers and saw that some workers were slow
and inefficient, while others were very productive. He discovered
that each bricklayer used a different set of motions to lay bricks.
• From his observations, Frank isolated the basic movements
necessary to do the job and eliminated unnecessary motions.
• Workers using these movements raised their output from 1,000
to 2,700 bricks per day.
Dr.Rashmi Badjatya Rawat
The Classical School
The scientific Management
• The Classical Scientific School contributed the
following:
– Developing new standard methods for doing each job
– Selecting, training, and developing workers instead of
allowing them to choose their own tasks and train themselves
– Developing a spirit of cooperation between workers and
management to ensure that work is carried out in accordance
with devised procedures
– Dividing work between workers and management in almost
equal shares, with each group taking over the work for which
it is best fitted
Dr.Rashmi Badjatya Rawat
The classical School
The Administrative approach
• Whereas scientific management focused on the
productivity of individuals, The classical administrative
approach concentrates on the total organization. The
emphasis is on the development of managerial
principles rather than work methods.
• Contributors to this school of thought include Max
Weber, Henri Fayol, Mary Parker Follett, and Chester I.
Barnard.
• These theorists studied the flow of information within
an organization and emphasized the importance of
understanding how an organization operated.
Dr.Rashmi Badjatya Rawat
The classical School
The Administrative management
• Max Weber’s Bureaucratic organization
• In the late 1800s, Max Weber disliked that many
European organizations were managed on a
“personal” family‐like basis and that employees were
loyal to individual supervisors rather than to the
organization.
• He believed that organizations should be managed
impersonally and that a formal organizational
structure, where specific rules were followed, was
important.
Dr.Rashmi Badjatya Rawat
The classical School
The Administrative Management
• Max Weber contributed:
– A well‐defined hierarchy
– Division of labor and specialization.
– Rules and regulations
– Impersonal relationships between managers and
employees.
– Competence.
– Records.
Dr.Rashmi Badjatya Rawat
The classical School
The Administrative Management
• Mary Parker Follett stressed the importance of an organization establishing
common goals for its employees.
• However, she also began to think somewhat differently than the other
theorists of her day, discarding command‐style hierarchical organizations
where employees were treated like robots.
• She began to talk about such things as ethics, power, and leadership. She
encouraged managers to allow employees to participate in decision making.
• She stressed the importance of people rather than techniques — a concept
very much before her time. As a result, she was a pioneer and often not
taken seriously by management scholars of her time.
• But times change, and innovative ideas from the past suddenly take on new
meanings. Much of what managers do today is based on the fundamentals
that Follett established more than 80 years ago.
Dr.Rashmi Badjatya Rawat
The classical School
Chester Barnard
• Chester Barnard, who was president of New Jersey Bell Telephone
Company, introduced the idea of the informal
organization — cliques (exclusive groups of people) that naturally
form within a company.
• He felt that these informal organizations provided necessary and
vital communication functions for the overall organization and that
they could help the organization accomplish its goals.
• Barnard felt that it was particularly important for managers to
develop a sense of common purpose where a willingness to
cooperate is strongly encouraged.
• He is credited with developing the acceptance theory of
management, which emphasizes the willingness of employees to
accept that managers have legitimate authority to act
Dr.Rashmi Badjatya Rawat
The classical School
Chester Barnard
• Barnard felt that four factors affected the
willingness of employees to accept authority:
– The employees must understand the communication.
– The employees accept the communication as being
consistent with the organization's purposes.
– The employees feel that their actions will be consistent
with the needs and desires of the other employees.
– The employees feel that they are mentally and
physically able to carry out the order.
Dr.Rashmi Badjatya Rawat
THE HUMAN RELATIONS SCHOOL
Dr.Rashmi Badjatya Rawat
• The Human Relations Movement began with
the Hawthorne Experiments.
• They were conducted at Western Electrical
Works in USA, b/w 1924-1932.
• It was initially designed by Western Electric
Industrial engineers
Dr.Rashmi Badjatya Rawat
Conclusions of Hawthorne Studies /
Experiments
• 1. The social and psychological factors are
responsible for workers' productivity and job
satisfaction. Only good physical working conditions
are not enough to increase productivity.
• 2. The informal relations among workers influence
the workers' behaviour and performance more than
the formal relations in the organisation.
• 3. Employees will perform better if they are allowed
to participate in decision-making affecting their
interests.
Dr.Rashmi Badjatya Rawat
Conclusions of Hawthorne Studies /
Experiments
• 4. Employees will also work more efficiently,
when they believe that the management is
interested in their welfare.
• 5. When employees are treated with respect
and dignity, their performance will improve.
• 6. Financial incentives alone cannot increase
the performance. Social and Psychological
needs must also be satisfied in order to increase
productivity.
Dr.Rashmi Badjatya Rawat
Conclusions of Hawthorne Studies /
Experiments
• 9. Good communication between the
superiors and subordinates can improve the
relations and the productivity of the
subordinates.
• 10. Special attention and freedom to express
their views will improve the performance of
the workers.
Dr.Rashmi Badjatya Rawat
The Human Relations School
Elton Mayo’s Human Relations Approach:
• According to Human Relations Approach, management is the Study of
behaviour of people at work.
• This approach had its origin in a series of experiments conducted by
Professor Elton Mayo and his associates at the Harvard School of
Business at the Western Electric Company’s Hawthorne Works, near
Chicago.
• These studies brought out for the first time the important relationships
between social factors and productivity.
• Before it, productivity of the employees was considered to be a
function only of physical conditions of work and money wages paid to
them.
• For the first time it was realised that productivity depended largely
upon the satisfaction of the employees in work situations.
Dr.Rashmi Badjatya Rawat
The Human Relations School
Features of Elton Mayo’s Human Relations Approach:
• The main features of the Human Relations Approach to
management are the following:
• (a) Since management is getting things done through and with
people, a manager must have a basic understanding of human
behaviour in all respects—particularly in the context of work groups
and organisations.
• (b) The managers must study the inter-personal relations among the
people at work.
• (c) Larger production and higher motivation can be achieved only
through good human relation.
• (d) The study of management must draw the concepts and principles
of various behavioural sciences like Psychology and Sociology.
Dr.Rashmi Badjatya Rawat
SYSTEM APPROACH TO MANAGEMENT:
Dr.Rashmi Badjatya Rawat
The Systems Approach
• The systems approach talks or takes broader view of
management where the organisation is viewed as a
whole, unified and purposeful entity composed of
different parts.
• System means a complex whole, a set of connected
parts or organised body of things. It is a set of parts or
things which performs common functions.
• Rather than analysing parts of organisation
independently, systems theory use the organisation as
a whole which operates in a larger external
environment.
Dr.Rashmi Badjatya Rawat
The Systems Approach
• This theory views organisation as a whole which
operates in the external environment and has
internal environment consisting of departments
interrelated to each other in a manner that input
output conversation is done most effectively.
• Its early contributors include Ludwing Von
Bertalanfty, Lawrence J. Henderson, W.G. Scott,
Deniel Katz, Robert L. Kahn, W. Buckley and J.D.
Thompson.
Dr.Rashmi Badjatya Rawat
Systems approach to Management
• They viewed organisation as an organic and open
system, which is composed of interacting and
interdependent parts, called subsystems.
• Systems approach is based on the generalization that
everything is inter-related and interdependent.
• A system is composed of related and dependent
element which when in interaction, forms a unitary
whole. A system is simply an assemblage or
combination of things or parts forming a complex
whole.
Dr.Rashmi Badjatya Rawat
System’s Interaction
Dr.Rashmi Badjatya Rawat
System Approach to Management:
Dr.Rashmi Badjatya Rawat
System Approach to Management:
• One its most important characteristic is that it is
composed of hierarchy of sub-systems. That is the
parts forming the major system and so on. For
example, the world can be considered-to be a system
in which various national economies are sub-systems.
• In turn, each national economy is composed of its
various industries, each industry is composed of
firms’ and of course a firm can be considered a
system composed of sub-systems sudi as production,
marketing, finance, accounting and so on.
Dr.Rashmi Badjatya Rawat
• Managers have always asked questions such as:
– "What is the right thing to do?
– Should we have a mechanistic or an organic structure?
– A functional or divisional structure?
– Wide or narrow spans of management?
– Tall or flat organizational structures?
– Simple or complex control and coordination mechanisms?
– Should we be centralized or decentralized?
– Should we use task or people oriented leadership styles?
– What motivational approaches and incentive programs should
we use?"
Dr.Rashmi Badjatya Rawat
CONTINGENCY APPROACH
Dr.Rashmi Badjatya Rawat
The Contingency Approach to Management
• The contingency approach to management (also
called the situational approach) assumes that there is
no universal answer to such questions because
organizations, people, and situations vary and change
over time.
• Thus, the right thing to do depends on a complex
variety of critical environmental and internal
contingencies.
Dr.Rashmi Badjatya Rawat
The Contingency Approach to Management
• The contingency approach to management is based
on the idea that there is no one best way to manage
and that to be effective, planning, organizing,
leading, and controlling must be tailored to the
particular circumstances faced by an organization.
• The contingency theory of management was
proposed by an Austrian psychologist, Fred Edward
Fiedler. In 1964, he published an article called “A
Contingency Model of Leadership Effectivenessâ€.
Dr.Rashmi Badjatya Rawat
Dr.Rashmi Badjatya Rawat
Dr.Rashmi Badjatya Rawat
