Introduction To Management

INTRODUCTION TO
MANAGEMENT
1
PERSPECTIVES ON MANAGEMENT
At the end of the session you should know

- What is Management?
- What it the scope of management?
- What are characteristics of good Management?
2
SUGGESTED READINGS
1. Management by Robbins, Coutler, 14th Edition
Chapter 1
2. Management By Stoner, Gilbert & Freeman –
Chapter 1
3
DEFINITION OF MANAGEMENT
Management is the process of designing and
maintaining an environment in which
individuals, working together in groups
efficiently accomplish selected tasks
The process of planning, organising, leading and

controlling the work of organisation members
and of using all available organisational
resources to reach stated organisational
goals. 4
Who Is a Manager?
Manager: someone who coordinates and oversees
the work of other people so that organizational
goals can be accomplished
Levels of Management
Exhibit shows that in traditionally structured organizations, managers can be classified as first-line, middle, or
top.
Copyright © 2019 Pearson India Education Services Pvt. Ltd. All Rights Reserved
Classifying Managers
• First-Line Managers: manage the work of non-
managerial employees
• Middle Managers: manage the work of first-line
managers
• Top Managers: responsible for making
organization-wide decisions and establishing
plans and goals that affect the entire
organization
7
Why Are Managers Important?
• Organizations need their managerial skills and
abilities now more than ever
• Managers are critical to getting things done
• Managers do matter to organizations
8
FUNCTIONS OF A MANAGER
- Planning
- Organizing
- Staffing
- Leading
- Controlling.
9
PLANNING:
It is the process of establishing goals and a
suitable course of action for achieving those
goals.
10
ORGANIZING:
It is the process of engaging two or more people in
working together in a structured way to achieve
a specific goal or set of goals.
11
STAFFING:
It is defined as filling and keeping filled positions in
the organization structure.
It involves
- Recruitment
- Selection
- Training of people.
12
LEADING:
The process of directing and influencing the task-
related activities of group members or an entire
organization.
13
CONTROLLING:
It is the process of ensuring that actual activities
conform to planned activities.
14
To perform their effectively, managers not only have

to design an internal environment but must take
into account the external environments.
Elements of external environment are:
- Economical
- Technological
- Social
- Political
- Ethical.
15
1. Management applies to any kind of organization.

2. Management applies to managers at all
organizational levels.
3. Management is concerned with productivity:
1. Effectiveness
2. Efficiency.
16
Efficiency and Effectiveness
• Efficiency: doing things right
– getting the most output from the least amount of input
• Effectiveness: doing the right things
– attaining organizational goals
Efficiency and Effectiveness in Management
Exhibit shows that whereas efficiency is concerned with the means of getting things done, effectiveness is
concerned with the ends, or attainment of organizational goals.
SCOPE OF MANAGEMENT
Profit seeking Organizations
- Large Businesses
- Small & startup Businesses
- Multinational Businesses
Non-Profit Seeking Organizations
- Government
- Education
- Health care
- Social
- NGO.
19
MANAGERIAL SKILLS
- Technical Skills
- Human Skills
- Conceptual Skills
- Design Skills.
20
A TECHNICAL SKILLS
- Knowledge
- Proficiency
Examples:
1. Cardiologist - Heart knowledge
2. IT Specialist - Sound in programming
3. Chef - Knowledge of cuisines
4. Pilot - Aircraft operations knowledge.
21
B HUMAN SKILLS
- Ability to work with people
- Team work
- Get things done
- Free and frank expression of opinion.
22
C CONCEPTUAL SKILLS
- How will organization grow?
- Intense competition
- Changing environment
- Survival of the fittest.
23
D DESIGN SKILLS
- Ability to solve problems
- Beneficial to employees and organization.
24
Skills Needed at Different
Managerial Levels
25
Time Spent in Carrying Out
Managerial Functions
26
The Goals of All Managers and
Organizations
• The aim of all managers should be to

create a surplus.
• Thus, managers must establish an
environment in which people can
accomplish group goals with the least
amount of time, money, materials, and
personal dissatisfaction
27
Changes Facing Managers
28
Focus on the Customer
• Without customers, most organizations would cease to
exist
• Managing customer relationships is the responsibility of
all managers and employees
• Consistent, high-quality customer service is essential
Focus on Technology
• Managers must get employees on board with new
technology
• Managers must oversee the social interactions and
challenges involved in using collaborative technologies
Focus on Social Media
• Social media: forms of electronic communication
through which users create online communities to share
ideas, information, personal messages, and other
content
Focus on Innovation
• Innovation: exploring new territory, taking risks, and
doing things differently
Focus on Sustainability
• Sustainability: a company’s ability to achieve its
business goals and increase long-term shareholder
value by integrating economic, environmental, and
social opportunities into its business strategies
Focus on the Employee
• Treating employees well is not only the right thing to do,
it is also good business
Challenges of Being a Manager
• Can be a thankless job
• May entail clerical type duties
• Managers also spend significant amounts of time in
meetings and dealing with interruptions
• Managers often have to deal with a variety of
personalities and have to make do with limited
resources
Rewards of Being a Manager
• Responsible for creating a productive work environment
• Recognition and status in your organization and in the
community
• Attractive compensation in the form of salaries,
bonuses, and stock options
EXCELLENT ORGANIZATIONS
- Large Indian Businesses
• Ranbaxy
• Tata Consultancy Services
• Infosys
- Small Businesses
• Career Launchers
- Transnational / Multinational
• Hindustan Lever
• Coke
• Pepsi
37
EXCELLENT ORGANIZATIONS
- Government controlled
• IIT, IIM, BHEL, Air India
- Social
• GCCF (Amul), Mother Diary
- Non-government
• CRY
• Marie Stopes.
38
CHARACTERISTICS OF EXCELLENT ENTERPRISES

- Are oriented towards action
- Learned about their needs of their customers
- Promoted managerial autonomy and entrepreneurship
- Achieved productivity by paying close attention to the needs of
their people
39
CHARACTERISTICS OF EXCELLENT
ENTERPRISES
- Were driven by a company philosophy
- Often based on the values of their leaders
- Focused on the business they knew best
- Have a simple organization structure with a
lean staff. Are centralized as well as
decentralized depending upon the
appropriateness. 40
Excellent Companies Adapt to Changes in
the 21st Century
• To be successful in the 21st Century, companies
must take advantage of the new information
technology - especially the Internet - and
globalization
• M-Commerce is mobile or wireless commerce
41
MANAGING – A SCIENCE OR AN ART?
THE SCIENCE
- Objective
- Logical
- Rational
42
THE ART
- Instinct
- Experience
- Personal Insight
- Intuition
Managing is an art. It is doing things in the light of the
realities of the situation.
43
Managing: Science or Art?
• Managing as practice is an art; the
organized knowledge underlying the
practice may be referred to as a science
44
SYSTEMS APPROACH TO MANAGEMENT
Inputs
- People
- Capital
- Managerial Skills
- Technical Knowledge and Skills
Outputs
- Products
- Services.
45
A Good Manager should

- cause employees to be successful.
- cause suppliers to be successful.
- cause customers to be successful.
46
EVOLUTION OF MANAGEMENT
At the end of this module you should be able to
- Describe the contributions of pre-classical
management thinkers
- Understand the principles of classical approaches to
management
- Explain the behavioral approaches to management
- Explain the systems and the contingency approaches
to management.
47
Early Management
• The Egyptian pyramids and the Great Wall of China are
proof that projects of tremendous scope, employing
tens of thousands of people, were completed in ancient
times.
Job Specialization
• In 1776 Adam Smith published “The Wealth of Nations”
– division of labor (job specialization): the
breakdown of jobs into narrow and repetitive tasks
Industrial Revolution
• Industrial revolution: a period during the late
eighteenth century when machine power was
substituted for human power, making it more
economical to manufacture goods in factories than at
home
Major Approaches to Management
Exhibit shows the four major approaches to management theory: classical, behavioral, quantitative, and
contemporary.
Industrial revolution in the middle of 1800s, the emphasis
in America shifted from agrarian society to industrial
society
Rapid Industrialization
- The need for more and better – skilled management
became apparent
- Pre – classical contributors
- A number of individuals began to focus on
development of techniques to solve specific
problems.
52
PRE –CLASSIC
1. ROBERT OWEN (1771 – 1858)
- Believed that the returns from investment in human
resources would be far superior than machinery
2. CHARLES BABBAGE (1792 – 1871)
- Father of modern computing
- Introduction of science and mathematics in the
manufacturing operations
- Considerable emphasis on specialization
3. HENRY TOWNE (1844 – 1924)
- A mechanical engineer
- Engineering skills and management skills go hand in hand
in running an organization effectively. 53
Classical Approach
• Classical approach: first studies of management,
which emphasized rationality and making organizations
and workers as efficient as possible
CLASSICAL APPROACH TO MANAGEMENT
Classical Approach
A B C
A - Fredrick Taylor |
- The Gilbreths |--- Scientific Management
- Henry Gantt |
B - Max Weber - Bureaucratic Management

C – Henri Fayol - Administrative Management
55
TRADITIONAL MANAGEMENT
• Managerial decisions on basics of intuition, feelings, rather than
scientific investigation
• Jobs performed by rule of thumb rather than standard time,
methods or motions
• Prevalent practices assumed to be correct and no efforts were
made to introduce new and novel techniques of management or
operations
• Training was generally under an apprentice system and no
formal techniques for skills and professional development
existed
• Management was considered as a group of overall supervisors
rather than a group performing unique duties. 56
SCIENTIFIC MANAGEMENT
- Fredrick W.Taylor known as “Father of Scientific
Management”
- Published in 1911 – “The Principles of Scientific
Management”
- Criticized the method of traditional management.
57
Scientific Management
• Scientific management: an approach that involves
using the scientific method to find the “one best way” for
a job to be done
TAYLOR’S APPROACH
• Every job should be broken into its elements and a scientific method
to perform each elements should be established
• Scientific selection of workers with right attitudes for the job and
ability and then properly trained to perform the work
• Management should cooperate with the workers to ensure that all
work is done in accordance with the scientific principles
• Work and responsibilities are to be divided between management
and workers that such work result in interdependence between
management and the workers. The management should design the
work, setup and supervise the work and the workers are free to
perform the work..
59
Taylor's Principles of Scientific Management
1. Replacing rules of thumb with science (organized
knowledge)
2. Obtaining harmony in group action, rather than discord
3. Achieving cooperation of human beings, rather than
chaotic individualism
4. Working for maximum output, rather than restricted
output
5. Developing all workers to the fullest extent possible for
their own and their company's highest prosperity
60
Frank and Lillian Gilbreth
• Primarily responsible for analysis and study of time motion of
work. How to improve performance of workers?
• Conducted a motion study of bricklayers
• Demonstrated how productivity can be enhanced by 200%
• Emphasized that scientific study of management should
include both analysis and synthesis
• Analysis involving breaking down a task into its essential
elements and with synthesis, the task is reconstructed to
include only those elements that are necessary for efficient
work and eliminate the other elements.
61
HENRY GANTT
• Worked with Taylor on several projects
• Differed with Taylor’s approach to scientific management
• While Taylor supported more mechanistic approach, Gantt
supported a more humanistic approach
• Felt it is management’s responsibility to help workers learn and
acquire these skills
• Was responsible for introducing’Task and Bonus plan’, aimed
at providing extra wages for extra work in addition to a
guaranteed minimum wage
• Also developed and introduced the ‘Gantt Chart’. A simple
visual device for comparing actual performance to planned
work performance. It is still commonly used today.
62
BUREAUCRATIC MANAGEMENT
- Formulated by Max Weber, a German sociologist
- An approach, which is based on a rigid formal
organizational structure with set rules and
regulations
- Believed that every deviation from the formal
structure interferes with efficient management
- Strict adherence to rules would make
bureaucracy a very efficient form of organization.
63
BUREAUCRATIC STRUCTURE
- Organization built on functional specialization
- Each functional department has its own hierarchical mode.
- The advisory departments (e.g. Finance, Legal, R&D) have no
direct authority over production departments.
- A pattern of precisely defined jobs organized in a hierarchical
manner through precisely defined lines of command or
communication
- Chain of command that runs from top to bottom of the
organization.
- From any place at the bottom of hierarchy there is only one route
to the top, a reflection of the principle that subordinate should have
no more than one superior. 64
CHARACTERISTICS OF BUREAUCRACY
- Division of labour by functional specialization
- A well defined hierarchy of authority
- A system of rules covering the duties and rights of
employees
- Certain obedience to a superior’s command
- Appointments and promotions purely on basis of merits
- A system of procedures dealing with situations and
implementing an adequate control system.
65
ADMINSTRATIVE MANAGEMENT
Henri Fayol
- Believed in universal nature of of management.
- Those who acquire general knowledge of managerial
functions and principles can manage all types of
organizations.
- Divided the administrative activities into six groups:
1. Technical
2. Commercial – Purchase and Sales
3. Financial
4. Security
5. Accounting.
66
ADMINISTRATIVE MANAGEMENT
6. Managerial
- Planning,
- Organizing,
- Command,
- Coordination,
- Control.
67
Proposed 14 Principles of Administration

1. Division of Labour.
2. Authority and Responsibility.
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of individual interest to organizational
interest.
68
Proposed 14 Principles of Administration
7. Remuneration of Staff.
8. Centralization.
9. Scalar Chain.
10. Order.
11. Equity
12. Stability of staff
13. Initiative
14. Team Spirit.
69
Principles of Administration
• Division of Work. Specialization allows the
individual to build up experience, and to
continuously improve his skills. Thereby he can
be more productive.
• Authority. The right to issue commands, along
with which must go the balanced responsibility
for its function.
70
• Discipline. Employees must obey, but this is
two-sided: employees will only obey orders if
management play their part by providing good
leadership.
• Unity of Command. Each worker should have
only one boss with no other conflicting lines of
command.
71
• Unity of Direction. People engaged in the same
kind of activities must have the same objectives
in a single plan. This is essential to ensure unity
and coordination in the enterprise. Unity of
command does not exist without unity of
direction but does not necessarily flows from it.
• Subordination of individual interest (to the
general interest). Management must see that the
goals of the firms are always paramount. 72
• Unity of Direction. People engaged in the same
kind of activities must have the same objectives
in a single plan. This is essential to ensure unity
and coordination in the enterprise. Unity of
command does not exist without unity of
direction but does not necessarily flows from it.
• Subordination of individual interest (to the
general interest). Management must see that the
goals of the firms are always paramount. 73
• Remuneration. Payment is an important
motivator although by analyzing a number of
possibilities, Fayol points out that there is no
such thing as a perfect system.
• Centralization (or Decentralization). This is a
matter of degree depending on the condition of
the business and the quality of its personnel.
74
• Scalar chain (Line of Authority). A hierarchy is
necessary for unity of direction. But lateral
communication is also fundamental, as long as
superiors know that such communication is
taking place. Scalar chain refers to the number
of levels in the hierarchy from the ultimate
authority to the lowest level in the organization. It
should not be over-stretched and consist of too-
many levels. 75
• Order. Both material order and social order are
necessary. The former minimizes lost time and
useless handling of materials. The latter is
achieved through organization and selection.
• Equity. In running a business a ‘combination of
kindliness and justice’ is needed. Treating
employees well is important to achieve equity.
76
• Stability of Tenure of Personnel. Employees
work better if job security and career progress
are assured to them. An insecure tenure and a
high rate of employee turnover will affect the
organization adversely.
• Initiative. Allowing all personnel to show their
initiative in some way is a source of strength for
the organization. Even though it may well involve
a sacrifice of ‘personal vanity’ on the part of
many managers.
77
• Esprit de Corps. Management must foster the
morale of its employees. He further suggests
that: “real talent is needed to coordinate effort,
encourage keenness, use each person’s
abilities, and reward each one’s merit without
arousing possible jealousies and disturbing
harmonious relations.”
78
BEHAVIOURAL APPROACH TO MANAGEMENT
- Classic approach viewed individuals as mechanism
of production
- Behavioral approach is based on the premise hat
those involved in the organization are the prime
determinants of organization and managerial
effectiveness
- Focuses on increase in efficiency through an
understanding of the people
- Emphasis on motivation, needs, interpersonal
relationship.
79
BEHAVIOURAL APPROACH
1. Mary Park Follet (1868 – 1933)
- A social worker
- Believed that instead of preparing and training
managers to give orders, they should be trained
to work with employees so that together they can
attain the organizational goals.
80
2. Elton Mayo (1880 – 1949)
- conducted studies to determine the effect of better physical
facilities and material incentives on worker output.
- Found that better physical facilities are not sufficient
enough in increasing productivity
- Gave rise to the concept of “social man”, whose interaction
with others would determine the quality and quantity of the
work produced.
- Social environment is an important factor in improving the
quality and the output
- Were conducted at Hawthorne plant of Western Electric
Company
- Also known as Hawthorne experiments. 81
Elton Mayo and F. Roethlisberger and the
Hawthorne Studies.
• In general, that the improvement in productivity was due
to such social factors as morale, satisfactory
interrelationships between members of a work group (a
"sense of belonging"), and effective management--a
kind of managing that would understand human
behavior, especially group behavior, and serve it
through such interpersonal skills as motivating,
counseling, leading, and communicating
82
3. Maslow’s Hierarchy of Human Needs
- Self Actualization Needs: Highest level, need to fulfill one’s

self, to grow and use abilities to fullest and most creative
extent
- Esteem Needs: Need for esteem of others, respect,
prestige, recognition, need for self-esteem
- Social Needs: Need for love, affection, sense of
belongingness in one’s relationships with other persons
- Safety Needs: Need for security, protection and stability in
the physical and interpersonal events of day-to-day life
- Physiological Needs: Most basic of all human needs, need
for biological maintenance-food, water etc.
83
4. DOUGLAS McGREGOR THEORY
Developed concept of theory X and theory Y, a
dichotomy dealing with the possible assumptions
that managers make about social workers
THEORY X
- Most people dislike work and avoid it whenever
possible
- Need to be directed, controlled in order to move
them to work and achieve organizational goals
- An average person is lazy, shuns responsibility
- Most people avoid leading, want to be led.
84
THEORY Y
- People enjoy work
- Commitment to achieve objectives is a natural state
- Average persons learn to seek responsibility
- Commitment to goals and objectives is a function of the
rewards available
- People have inherent quality of innovation
- Individuals seek leadership rather than the security of being
led
85
CONTINGENCY APPROACH
- Suggest that there is no ‘one best way’ to manage.
Successful managerial decisions depend upon the situation
and circumstances in which the decisions are made
- There are no universal principles applicable to management
in general. It is situation specific
- Contingencies affecting the managerial decisions are :
1. Rate of change in the organization’s external
environment
2. Inherent strengths and weaknesses
3. Values, goals, skills and attitudes of managers
4. Type of tasks, resources and technology used by the
organization. 86
QUANTITATIVE APPROACH TO
MANAGEMENT
- Use of mathematical techniques and models known

as operations research, aid decision making
- Improves quality of decisions by:
a) Increasing alternatives to be considered.
b) Assist in faster decision making
c) Help in evaluating risk and result of different
courses of action
d) Maintaining optimum balance.
87
QUANTITATIVE TECHNIQUES
1. Linear Programming.
2. Queuing Theory
3. Inventory Modeling
4. Simulation
5. Preventive control and replacement
problems.
6. Competitive problems and game theory.
88
Total Quality Management
• Total quality management (TQM): a philosophy of
management that is driven by continuous improvement
and responsiveness to customer needs and
expectations
Contemporary Approaches
• System: a set of interrelated and interdependent parts
arranged in a manner that produces a unified whole
• Closed systems: systems that are not influenced by
and do not interact with their environment
• Open systems: systems that interact with their
environment
Organization as an Open System
Exhibit shows a diagram of an organization from an open systems perspective.

Contingency Approach
• Contingency approach: a management approach that
recognizes organizations as different, which means they
face different situations (contingencies) and require
different ways of managing
Exhibit MH-8: Popular Contingency Variables
Variable
Organization Size. As size increases, so do the problems of coordination. For in- stance, the type of
organization structure appropriate for an organization of 50,000 employees is likely to be inefficient for
an organization of 50 employees.
Routineness of Task Technology. To achieve its purpose, an organization uses technology. Routine
technologies require organizational structures, leadership styles, and control systems that differ from
those required by customized or nonroutine technologies.
Environmental Uncertainty. The degree of uncertainty caused by environmental changes influences
the management process. What works best in a stable and predictable environment may be totally
inappropriate in a rapidly changing and unpredictable environment.
Individual Differences. Individuals differ in terms of their desire for growth, autonomy, tolerance of
ambiguity, and expectations. These and other individual differences are particularly important when
managers select motivation techniques, leadership styles, and job designs.

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INTRODUCTION TO

At the end of the session you should know

The process of planning, organising, leading and

To perform their effectively, managers not only have

1. Management applies to any kind of organization.

• The aim of all managers should be to

CHARACTERISTICS OF EXCELLENT ENTERPRISES

A Good Manager should

B - Max Weber - Bureaucratic Management

Proposed 14 Principles of Administration

- Self Actualization Needs: Highest level, need to fulfill one’s

- Use of mathematical techniques and models known

Exhibit shows a diagram of an organization from an open systems perspective.

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