Transcript pps

Presented by Dr.Daleep Parimoo
Associate Professor
School of Business Studies,
Sharda University.
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IF RUNNING A BUSINESS were easy,everybody would
be doing it.
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
Management Universality
management is needed in all types and sizes of organizations, at all organizational
levels, in all organizational work areas, and in all companies, no matter in what
country they’re located.
All Sizes of
Organizations
Small
Large
All Organizational Areas
Manufacturing-Marketing
Human Resources
Accounting Information
System….
Management is
Needed in…..
All Organizational
Levels
Bottom
Top
All Types of
Organizational
Profit
not-for Profit
MANAGEMENT IS ART OF GETTING THINGS DONE THROUGH
PEOPLE
IN A SYSTEMATIC MANNER FOR ACHIEVING THE GOALS
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What is Management?
Management is a process of reaching organizational goals by working
with and through people and other organizational resources.
It is the process of coordinating work activities so that they’re
completed EFFECTIVELY AND EFFICIENTLY completing with and
through people and other resources
1.
2.
3.
Three main characteristics
It’s a process or series of continuing and related activities
It involves and concentrated on reaching organization goals
It reaches these goals by working with and through people and other
organizational resources .
The process represents the ongoing functions or primary activities
engaged by mangers
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Definition of “Management”
 A set of management functions directed at the efficient and effective
utilization of resources in the pursuit of organization goals.”-By Griffin:
 Management is the process of designing and maintaining an environment
in which individuals working together in groups, efficiently accomplish
selected aims.”- Koontz and Weihrich
 Management is an organ, organs can be described and defined only
through their functions-Peter F. Drucker
 Management is a distinct process consisting of activities of planning,
organizing, actuating, and controlling, performed to determine and
accomplish stated objectives with the use of human beings and other
resources.-Terry & Franklin
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MANAGEMENT IS MANAGING
People –
Tactfully
People –
As team
People’s Skills
People V/S Technology
People V/S Objectives (MBO)
People V/S Resources
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MANAGEMENT THUS IS A FUNCTION OF :
M = f(ir+ef), where ir stands for internal resources &
ef stands for external factors
MANAGING THE INTERNAL AND EXTERNAL
ENVIRONS, THROUGH VARIOUS EFFECTIVE AND
EFFICIENT PROCESSES, WITH THE OBJECTIVE OF
ACHIEVING LAID DOWN EXPECTED RESULTS.
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Definition of Management
 Management :
Manage –
Manage –
Manage –
Manage –
Manage –
Manage –
People – tactfully
People – technology
People – as team
competencies
objectives (MBO)
People and things (resources – physical,
inanimate)
Manage – f ( RISKS, REWARDS)
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Management…..
 Is based on a systematic body of knowledge-laws,
principles and concepts
 This knowledge is universal
 If a manager has this fundamental knowledge and
knows how to apply it to a given situation, he should
be able to perform the managerial functions
efficiently and effectively
Management Practice is regarded as an art, but
organized knowledge about management is a science
THUS MANAGEMENT IS BOTH AN ART AND
SCIENCE
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Management
 When it comes to manage people, it is said that “people are
enigmatic.”
 Thus, Management is enigmatic.
 Harold Koontz described the present state of management
theory as a “jungle.”
There can be lots of ambiguity and there will be no recipe
book
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Management
Management is a function of
M = f(RESULTS, FEEDBACK, RESULTS……)
Managing the internal and External Environs in
the Bio-Ecosystems through various effective and
efficient processes with the objective of achieving
laid down expected results
.
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»
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1.
1.
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Management Function and Process
Planning
Organizing
Leading
Controlling
management process is the set of ongoing decisions and work activities in which
managers engaged as they plan, organize, lead, and control .
Management Roles
managers perform a lot of different but high interrelated roles
Management roles
it’s the specific categories of managerial behavior
The interpersonal roles
are roles that involves people (subordinates and persons outside the company) and other
duties that are ceremonial and symbolic in nature
The informational roles
Involves receiving collection, and disseminating information.
The decisional roles
revolve around making choices and includes roles as businessman, disturbance handler,
resource allotment, and negotiator.
Process of Management
The whole management process is actually an
integration of the work activity (Mintzberg) and the
management functions
MANAGEMENT FUNCTIONS :
 Planning, Organization, Co-ordination, motivation, and
control are Universal.
 These functions are performed in all organizations – SMEs,
Large, not-for-profit organizations, etc.
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Definitions
 Planning : Management functions that involves the
process of defining goals, establishing strategies for
achieving those goals and developing plans to
integrate and coordinate activities
 Organizing: management function that involves the
process of determining what tasks are to be done,
who is to do them, how the tasks have to be grouped,
who reports to whom, and where decisions are to be
made
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 Leading : management functions that involves motivating
subordinates, influencing individuals or teams as they work,
selecting the most effective communicating channels or
dealing with any with employee behavior issues
 Controlling
: Management functions that involving
monitoring actual performance, compiling actual to standard,
and taking action if necessary
 Management process : The set of ongoing decisions and work
activities in which managers engage as they plan, organize,
lead and control.
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case
Learn management from your
mother
 Role of mother in traditional Indian household
 Responsibilities
 Father –
 Mother-
Salary earner
Home maker
Running House hold
Children’s Education
Fulfilling Social obligations
Much more
MANAGEMENT
LESSONS FROM
MOTHERS
WHAT MATTERS MOST FOR A MOTHER……………….????????????????
WHAT IS THE ULTIMATE DREAM OF EVERY MOTHER……………..?????????
TO RUN THE HOUSE HOLD IN A VERY EFFECTIVE AND EFFICIENT
MANNER, TO MEET THE SOCIAL OBLIGATIONS AND TO SEE THE WELFARE
OF HER CHILDREN AND HER SPOUSE
Mothers wear many hats- Here are some leadership & management
skills we learn from my moms:
* Moms wear many hats. Looking back, we can't believe all our
moms did for us. She juggled countless responsibilities, wearing
many hats. Leaders today require the same.
* You can't treat every kid the same. Seems like we should, but
some kids just need a stern look and they're back in line. Others
need more, shall I say, persuasion (that was me!). Mom was the
original situational leader!
* Moms are still on the job even when they're tired. Moms don't
really get to check out, generally speaking. They can be wiped out
but are still on the job. There might be days I'm tired, but when we're
leaders, we're paid to be there for the team.
With more thought I'm guessing we could all come up with more
parallels between the invaluable roles of mom and leader.
HOW DOES SHE DO IT
TYPICALLY MOTHERS MIGHT NOT PREPARE BUDGETS, PLAN AND
ORGANIZE , YET THEY APPLY ALL MANAGEMENT TECHNIQUES TO RUN
THEIR HOUSE HOLD QUITE EFFECIENTLY THOUGH THEY HAVE NEVER
GONE THROUGH THE MANAGEMENT TECHNIQUES.
THEY PRIORITIZE THE JOBS WHICH REQUIRE IMMEDIATE ATTENTION
AND DEFER THE DECISIONS, WHICH ARE NOT GOING TO EFFECT THE
RUNNING OF HOUSE-HOLD
MANAGEMENT IS ART OF GETTING THINGS DONE
WITH LIMITED RESOURCES IN A GIVEN PERIOD OF
TIMG
THROUGH
SYSTEMATIC
PLANNING,
ORGANIZING,
CO-ORDINATION AND PROPER
BUDGETING
you are aware the following are the functions of the management:
According to George & Jerry, “There are four fundamental functions of
management i.e. planning, organizing, actuating and controlling”.
According to Henry Fayol, “To manage is to forecast and plan, to
organize, to command, & to control”.
Luther Gullick has given a keyword ’POSDCORB’ where P stands for
Planning, O for Organizing, S for Staffing, D for Directing, Co for Coordination, R for reporting & B for Budgeting.
But the most widely accepted are functions of management given by
KOONTZ and O’DONNEL i.e. Planning, Organizing, Staffing,
Directing and Controlling.
Planning

Definition
Planning is establishing an overall strategy for achieving the organization’s
goals and developing a comprehensive set of plan to integrate and coordinate
organizational work .It’s concerned with both ends (what’s to be done) and
means (how it’s to be done) .
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3.
4.
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2.
3.
4.
5.
Planning Purposes
Planning gives direction .
Reduces the impact of change .
Minimizes waste and redundancy .
Sets the standards used in controlling .
Planning Process Steps
State the organizational objectives .
List alternative ways of reaching objectives .
Develop premises how and which alternative to be based .
Choose the best alternative for reaching objective .
Develop plans to pursue the chosen alternative .
1.
Organizational Objectives or Goals (Planning’s Function)
Organizational Objectives
2.
Organizational Purpose or Mission
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1.
2.
3.
4.
5.
6.
7.
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targets toward which the open management system is directed. Properly developed
organizational objectives reflect the purpose of the organization .
is what the organization exists to do, given a particular customer group and customer
needs .
Organizational Objectives Areas
Market standing-Management :set objectives to clarify the relation with competitors .
Innovation-Management :set objectives explain the ways to develop a new operation methods.
Productivity-Management : set objectives to show the production target levels .
Physical and financial resources-Management : set objectives of the good using of acquisition, and
maintenance of capital and monetary resources .
Profitability-Management : set objectives to specify the profit the company would like to generate .
Managerial performance and development-Management : set objectives that specify rates and levels
of managerial productivity and growth .
Worker performance and attitude-Management : set objectives that specify worker productivity rates
as well as desirable attitudes for worker to possess .
Public responsibility-Management : set objectives explain the company’s responsibilities to its
customers and society and shows the company’s seriousness to live up to those responsibility.

Goals Types
1.
Stated Goals
are official statements of what the company says, and what it wants its stakeholders to
believe about the goals. They can be found in an organization’s charter, annual reports,
or managers public statements.
2.
Real Goals
are goals that a company actually pursues-closely show what organizational members
are doing .
Compare between Financial and Strategic Objectives
Financial Objectives
» Faster revenue growth
» Faster earning growth
» Higher profit margins
» Higher return on invested capital
» Stronger bond and credit
» Bigger cash flows
» Arising stock price
» A more diversified revenue base
» Stable earnings during recessionary periods
Strategic Objectives
» A bigger market share
» A higher more secure industry rank
» Higher product quality
» Lower costs relative to key competitors
» More attractive product line
» A stronger reputation with customers
» Superior customer service
» Recognition as leader to complete in
international markets

A.
Plans Types
Plans according to Functions
1.
Strategic Plans
are plans that apply to the whole company ,establish the overall goals and seek to
position the company in its environment terms
Operational Plans
are plans that specify the details of how to achieve the overall goals
2.
Compare between two Types
Strategic plans covers the a longtime frame and broader of the company , and also
include the formulation of goals because operational plans define ways to achieve the
goals . Operational plans covers the short time periods (monthly, weekly, and day today)
B.
Plans according to Timeframe
1.
Long-term Plans
plans with a time frame three years and more
Short-term Plans
one year or less
Intermediate Plans
is any time in between long term and short terms plans
2.
3.
C.
Plans Types according to Specificity
1.
Specific Plans
are clearly defined . They have specifically stated objectives . There’s no uncertain
and no problem with misunderstanding .
Directional Plans
2.
are flexible plans that set out general guidelines .
D.
Plans Types according to Use Frequency
1.
2.
A single-use Plans
is a one-time plan specifically designed to meet the needs of a unique situation .
Standing Plans
are plans provide direction for activities performed repeatedly, and include policies,
rules ,and procedure .
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1)
Planning Tools and Techniques
Environment Assessing Techniques
A.
Environmental Scanning
is the screening a large amounts of information to anticipate and interpret changes in
the environment .
Decision-Making
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Definition
Decision is choice made between two or more available alternatives .
Decision-Making is process of choosing the best alternative to reach objectives.
Decisions Types :
Programmed Decision
are routine and repetitive, and the company develops specific ways to handle them .
Procedure
It’s a series of interrelated sequential steps that manager can use for responding to a
structured problem .
Rule
It’s clear statement that tells manger what he can do . Rules used for facing a wellstructured problem because they are simple to follow and ensure consistency stability .
ex. Rules about lateness and absenteeism .
Policy
put guidelines to limit manager’s thinking in specific direction . Different from rule,
policy establish parameters for decision maker rather than specifically stating what
should or should not to be done
2.
Non-Programmed Decision
are typically one-shot decision that are usually less structured than programmed
decision .

The Decision-Making Process : the decision-making process include the steps for
1.
Identifying an existing problem
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decision maker to arrive at this choice .
The decision-making steps
Orders issued by managers or supervisors .
Situations relayed to managers by their subordinates .
The normal activity of the managers themselves .
List alternative solution
before searching for solutions managers should be aware of five limitations on the
number of problem-solving alternatives available :
Authority factors (manager’s superior may gave told the manager that may be a certain
alternative is not feasible ) .
Biological for human factors (human factors inside the company may be not fit for carry
out certain alternatives ) .
Physical factors (the physical facilities of the company may be not fit for certain
alternatives ) .
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Technological factors (the level of company technology may be not fit for certain
alternatives ) .
Economic factors (certain alternatives may be too costly for the company ) .
3.
Selecting the most beneficial alternative
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4.
the evaluation should consist of three steps
first : decision maker should list the potential effects of each alternatives
Second : they should assign a probability factor to each potential effects to show how
probable the effect occurrence would be if the alternative were carried out .
Third : keeping company goals in mind, decision maker should compare each
alternative’s expected effects and the respective probabilities of those effects .
after completed this steps. Manager the most advantageous of alternative to the
company .
Implementing the chosen alternative
put the chosen alternative into action . Decision must be supported by appropriate
action to have a chance of success .
5.
Evaluating decision effectiveness
decision makers must gather feedback to determine the implementing alternative
effect on the identified problem . If the identified problem is not being solved,
managers need to search out and implement some other alternative .
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Θ
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Decision-Making Conditions
Complete Certainty Condition
It’s the decision-making situation in which the decision maker knows exactly
what the results of a carried out alternative will be .
Complete Uncertainty Condition
Used if the decision maker has no idea about the results of carried out
alternative .
Risk Condition
It means the decision maker has only enough information to estimate about the
implemented alternatives outcome .
The Decision-Making Pervasiveness
Plan
Organize
Lead
Control
Organizing

Definition
Organizing is the process of establishing orderly uses for all company’s resources. It’s
also the process of creating a company’s structure . The challenge for managers is to
design an organizational structure that allows employees to effectively and efficiently do
their work .
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Some Organizing Purposes
Divides work into specific jobs and department .
Assign tasks and responsibilities associated with individual jobs .
Coordinate diverse organizational tasks .
Cluster jobs into units .
Establish relationships among individuals, groups, departments .
Establish formal lines of authority
Allocates and deploys company all resources .
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1.
2.
3.
4.
5.
The Organizing Process
Reflect the company’s plan and objectives .
Establish major tasks .
Divides major tasks into subtasks .
Allocate resources and directives for subtasks .
Evaluate the result of implemented organizing strategy .
Step 1:
Reflect on plans
and objectives .
Step 2:
Establish major tasks .
Step 5 :
Evaluate results of
Organizing strategy .
Step 3:
Divides major tasks
Into sub tasks .
Step 4 :
Allocate resources and
Directives for subtasks .
3.
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Chain Of Command
is the continues line of authority that extends form upper organizational levels to the
lowest levels and clarifies who reports to whom .
Authority : involves the rights inherent in a managerial position to tell people what to do
and to expect them to do it .
Responsibility : involves the obligation of employees to perform any assigned duties as
managers coordinate and integrate the work of employees .
Unity Of Command : it helps preserve the concept of a continuous line of authority . It
states that a person should report to only one manager .
Span Of Control
The contemporary view of span of control notices that many factors influence the
appropriate number that a manager can efficiently and effectively manage .
Employee tasks similarity .
Tasks complexity .
The degree of standardized procedure placing .
The company’s information system sophistication .
Company’s culture strength .
Manager preferred style .
5.
Centralization and Decentralization
Centralization
Describes the degree to which decision-making concentrated at a single point in the
company . If top managers make the company’s key decisions with little or no inputs
from below then the organization is centralized
Decentralization
Allows lower-level employees provide input or actually make decision .
Centralization and Decentralization Factors
More Centralization
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Environment is stable
Lower level managers are not as capable or experienced at making decisions as upper
level managers .
Lower-level managers do not want to have a say in decisions .
Decisions are significant .
Organization is facing a crisis or the risk of company failure .
Company is large
Effective implementation of company strategies depends on managers retaining say over
what happens .
More Decentralization
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6.
Environment is complex, uncertain .
Lower-level managers are capable and experienced at making decision .
Lower-level managers want a voice in decision .
Decisions are relatively minor .
Corporate culture is open to allowing managers to have a say in what happens .
Company is geographically dispersed .
Effective implementation of company strategies depends on managers having
involvement and flexibility to make decision .
Formalization
shows the degree to which jobs in company are standardized and the extent to which
employee behavior is guided by rules and procedures .
Influencing

Definition
Influencing is the process of guiding the activities of company members in appropriate
directions .
Appropriate Directions
Are those that lead to the attainment of management system objectives .
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1.
2.
3.
4.
The Influencing Subsystem
Leading .
Motivating .
Considering groups .
Communicating .
1.
2.
3.
4.
Inputs
People .
Money .
Raw materials .
Machines .
Processes
Influencing Process
Considering
groups
Leading
Motivating
Output appropriate organization members behavior
»
Interpersonal Communication Types
1.
2.
Verbal Communication
It’s the sharing of through words (written or spoken)
Nonverbal Communication
It’s the sharing of information without using words to encode thoughts (gestures,
vocal tones, and facial expressions)
»
Organizational Communication
Is the interpersonal communication within organization .Organizational
communication directly relates to the goals, function, and human organizations
structure .
»
Formal Organizational Communication
It follows the organization chart lines .
Leadership

Definition
Leadership is the process of directing the behavior of others toward the accomplishment
of some objective or objectives .

Leader Versus Manager
leading is not like managing . But some managers are leaders and some leaders are
mangers, leading and managing have not the same activities.
Managing is much wider in range than leading and focuses on both
non-behavioral and behavioral issues .
Leading emphasizes mainly behavioral issues .

The Trait Approach to Leadership
leadership shows the personal characteristics of an individual as the main determinates
of how successful that individual could be as a leader.
management writer agree that leadership ability can’t be explained by individual traits or
inherited characteristics, they believe that individual can be trained to be good leaders .

Situational Approach to Leadership
It suggests that leadership style must be matched to the situation the leader faces.
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1.
2.
Leader Decision-Making
(Vroom – Yetton – jago) the VYJ theory is built on two premises
Organizational decision should be of high quality (should have beneficial impact on
performance)
Subordinates should accept and be committed to organizational decisions that are made.
Decision Style
The VYJ model suggests that there’re five different decision styles or ways that leaders
can make decision . These styles range from authority (the leader makes the decision) to
consultative (the leaders makes the decision after interacting with the followers) to
group-focused (the managers meets with the group and the group makes the decision .
The VYJ model, is method for determining when a leader should use which decision style
.
Motivation

Definition
Motivation is the inner state makes everyone in company behaves in a way that ensures
the accomplishment of some jobs .
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2.
3.
4.
5.
6.
7.
Motivating Organization Members Strategies
There’s seven strategies
Managerial communication .
Theory X – Theory Y .
Job design .
Behavior modification .
Likert’s management system.
Monetary incentives .
Non – monetary incentives .
Controlling
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1.
2.
Definition
Control is the process of monitoring activities to ensure that they are being
accomplished as planned and correcting any significant deviations.
The Controlling Process
Measuring performance .
Comparing measured performance to standards .
Taking corrective action .
Measuring Performance
managers must measure correct organizational performance by establishing some unit of
measure that gauges performance and observe the quantity of this unit as generated by
the items whose performance is being measured.
Comparing Measured Performance to Standards
after managers have taken a measure of organizational performance, the next step in
controlling is to compare this measure with some standard.
A Standard
3.
is a level of activity established to serve as a model for evaluation organizational
performance .
Take Corrective Action
after actual performance has been measured and compared with established
performance standards, the next step in controlling process is to take corrective action if
necessary .
Corrective Action focuses on correcting organizational mistakes that are slowing the
organizational performance.

1.
2.
Control Types
Pre-control or Feed forward Control
the control that takes place before work is performed is called per control or feed
forward control . Managers using this type of control to create policies, procedures, and
rules aimed at eliminating behavior that will cause desirable work result .
Concurrent Control
Is control that takes place as work is being performed . It relate not only to employee
performance, but also to such non human areas as equipment performance and
department appearance.
3.
Feedback Control
is control that takes place after some unit of work has been performed. Control that
concentrates on past organizational performance is called feedback control. Managers
use this type of control to take corrective action by looking at organizational history over
a specified time period . There’s two advantages over feed forward and concurrent
control
first feedback provides managers with meaningful information on how effective their
planning effort was.
second feedback control can enhance employee motivation.
Input
Processes
Output
Feed forward
Control
Concurrent
Control
Feedback
Control
Anticipates
Problems
Corrects
Problems as they
Happen
Corrects
Problems after
they Occur

Qualities of Effective Control System
1.
Accuracy
2.
Timeliness
3.
Economy
4.
5.
an accurate control system is reliable and produces valid data.
an effective control system must provide timely information .
any system of control has to justify the benefits that it gives in relation to the costs it
incurs .
Flexibility
controls must be flexible enough to adjust to problems or to take advantage of new
opportunities .
Understandability
controls that cannot be understood have no value. A control system that is difficult to
understand can cause unnecessary mistakes, frustrate employees, and be ignored .
6.
Reasonable Criteria
control standards must be reasonable and attainable if they are too high or
unreasonable, they no longer motivate.
7.
Strategic Placement
management can’t control everything that goes on in company . Even if it could the
benefits couldn’t justify the costs . As a result , managers should place controls on
factors that are strategic to the organization’s performance. Control should cover the
critical activities, operations, and events within the organization.
8.
Emphasis on the Exception
because managers can’t control all activities, they should place their strategic control
devices where those devices can call attention only to the exceptions .
9.
Multiple Criteria
if management controls by using a single measure such as unit profit, effort will be
focused only on looking good on that standard. multiple measures of performance
widen this narrow focus.
10.
Corrective Action
an effective control system not only indicates when a significant deviation from
standard occurs but also suggests what action should be taken to correct the
deviation .
Evolution of Management Thought
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Schools of Management Thought
 It was during the 20th century that a systematic study
of management began
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4 schools of thought
(by: Newman, Summer and Warren)
 Productivity approach
 Behavioral approach
 Rationalistic model approach, and
 Institutional approach
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Hutchison’s classifications
 Classical management theory
 Human behavior theories
 Social and political systems approaches
 Ecological systems approach and
 Rational decision making concepts
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 THE CONTRIBUTORS ON MANAGEMENT
PRICIPLES…
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Charles Babbage (1792-1871)
 Benefits of division of labor
 Use of science and mathematics
 Emphasis on cost reduction
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Henry R. Towne
 Main contribution is :
“That he set the climate and atmosphere for the later
application of scientific methods. Of lesser
importance was his plan of gain-sharing as a system of
wage payment.”
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Henry Metcalfe (1847-1917)
 In 1885, his pioneering work:
The Cost of Manufacturers and the administration
of Workshops, Public and Private
Theory of Management was based on system and
control
He insisted that all authority should emanate from a
given source, with a flow back to that source of
detailed information concerning expenditures and
accomplishments
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Henry Laurence Gantt (1816-1919)
 Educated from John Hopkins College
 Engineer, as draughtsman and later Asst. engineer
 His publications: Work, Wage and Profits (1910);
Industrial Leadership(1916); and Organizing for
Work.(1919)
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Gantt’s Thoughts….
 Task and Bonus Plan
 Daily Balance Chart (Gantt Chart)
 Humanizing Science of Management
 Important of Leadership
 Training of Workers
 Social Responsibility of Business
(Also called as : Forerunner of modern industrial
democracy; also called as “apostle of industrial
peace”)
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Harrington Emerson (1853-1931)Popularizer of scientific management
 Principles of Efficiency (12)
1. Clearly define ideal 2. commonsense 3.
Competent Counsel 4. Discipline 5. Fair deal 6.
Reliable, immediate, adequate and permanent
records 7. Dispatching (production scheduling
and control techniques) 8. Standards and
schedules 9. Standardized conditions 10.
Standardized Operations 11. Written standard
practice instructions 12. Efficiency reward
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
a.
b.
c.
According to Ernest Dale, Emerson really advocated
the elimination of waste:
Setting definite logical goals for all company
operations and making managers down the line
understand them so that they would not be seeking
private goals of their own
Production planning and scheduling and the use of
written standard practices
Better utilization of machine and man
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 d. Cost Accounting
 e. Standards and specifications for materials
 f. Standardization of parts and products as far as
possible
 g. A rational approach to capital expenditures
 h. Better selection, placement, and fair treatment of
employees and a system of financial incentives as
equitable as possible
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Frank Bunker Gilbreth (1868-1924) and
Lillian Moller Gilbreth(1878-1972)
 FBG: authored: Concrete Systems (1908); Field
System (1908); Motion Study (1911); Power of
Scientific Management (1912); Fatigue Study
(1916); Applied Motion Study (1917, with Lillian
Gilbreth); and Motion study for the Handicapped
(1920)
 The Father of Motion Study was a
contemporary of Taylor and Gantt
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 Lillian Moller Gilbreth:Professor of Management at
Purdue University. Her famous works: The Psychology
of Management (1914) and Quest for the Best Way
(1924)
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Contributions by Frank Gilbreth

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Motion study
Time Study
One best way
Training of personnel
Three position plan of promotion (each worker should be
considered to occupy three positions: a. the job he held
before promotion to his present position b. his present
position and c. the next higher job
 Part of his work, then would be teaching the man below
him and learning from the man above him. In this way, he
would qualify for promotion himself and help to provide a
successor to his current job.
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Contributions of Lillian Gilbreth
 It should be noted that FBG was greatly assisted by Lillian




Gilbreth whom he married in 1904
Both of them used motion picture films to analyze and
improve motion sequences
Both developed the process of chart and the flow diagram
to record process and flow patterns used in a work
situation
They emphasized written instructions to avoid confusion
and misunderstanding (the white list card system)
The Gilbreths urged tha the POM and motion analysis
could effectively be applied to huge untapped area of selfmanagement. They started to search into the area of
fatigue and its impact o health and productivity.
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Robert Owen (UK)-The father of personnel
management
 Contributions:
Improvement in Factory and domestic conditions of his
employees
Social reforms (creating model community out of his
mills town; educational reforms)
Owen said that his object was not to be a “mere manager
of cotton mills, but to introduce principles in the
conduct of the people.”
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MODERN GURUS
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Fredrick Taylor
The credit of systematic study and practice of
management goes to FWT, very well known as
FATHER OF SCIENTIFIC MANAGEMENT
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Midvale experience
 At Midvale Steel Company, he found that individual
workers had their own notions about work and
different workers performed the same task in
different ways
 He realized that greater output was possible on the
part of the workers but most of them were engaged
in what he called ‘systematic soldiering.’
 The solution: the first task of management was to
know what constituted a proper day’s work
 He conducted time studies at Midvale Steel Company
which proved of immense use to him
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Bethlehem Experiments – Pig-Iron Handling
 Taylor was hired by the Bethlehem Steel Company to increase


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the output of one of the larger machine shops which had been
a serious production bottleneck
Conclusion: Periodic rests enabled a worker to produce more
than continuous work. By a systematic resting time and
improved methods average productivity was raised from 12.5
tons to 47.5 tons per day.
Taylor began selecting workers and training them in handling
pig-iron
The original crew was 75, this reduced dramatically
The earnings of the crew increased from USD1.15 to USD
1.85 per man per day.
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Taylor’s prescription for Manager’s
responsibilities

a.
Under four heads :
They should develop a science for each element of man’s work
which replaces the old rule of thumb method
b.
They should scientifically select and then train, teach and develop
the workmen
c.
They should heartily cooperate with the men so as to ensure
performance of work in accordance with the principles of the
science which have been developed
d.
There should be almost equal division of work and responsibility
between management and workmen
Taylor, wanted that management should take the responsibility of
planning, directing and organizing work.
HE DEEMED IT ESSENTIAL TO SEPARATE THE PLANNING OF
WORK FROM ITS EXECUTION, SO THAT EACH INDIVIDUAL
COULD WORK AT HIS BEST EFFICIENCY AND COULD BE
COMPENSATED ACCORDINGLY.
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Taylor’s Management Principles
 Large, daily, defined task
 Standard conditions – skill sets and tool sets to be
made available with authority along with clear cut
objectives and expectations; this is called as
ACCOUNTABILITY
 High Pay for success
 Loss in case of failure
 Separation of planning from doing – the most
valuable insights of TAYLOR
 Functional foremanship
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HENRY FAYOL- Father of Principles of
Management
 Division of labor
 Authority and Responsibility
 Discipline
 Unity of command (one boss---subordinate)
 Unity of Direction (one head and one plan)
 Subordination of Individual Interests to General Interest
(FIRM, FAST AND FAIR)
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Fayol’s Elements of Management
 Fayol made a distinction between “General Principles of
Management” and “elements of Management.”
 The latter was regarded as functions of management.
Dividing them into:
PLANNING,
ORGANIZATION,
COORDINATION AND CONTROL
COMMAND,
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Planning
 Planning : most important and difficult managerial function.
 Planning meant “looking ahead” and to foresee – both to assess
the future and make provision for it
 He considered – unity, continuity, flexibility and provision as
the broad features of a good plan of action
ORGANIZING
 To organize a business is to provide it with everything useful
to its functioning, raw materials, tools, capital, personnel.
 Fayol concerned himself both with structure and process,
listing 16 managerial duties and emphasizing the necessity
for clear objectives, authority, decisions and task
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COMMAND/DIRECTION
 After the organization is formed, it is the mission of command to set it
going.
 For every manager, the object of command is to get the optimum return
from all employees of his unit in the interest of the whole concern
 The art of command, according to Fayol, rests on certain personal qualities
and knowledge of general principles of management
COORDINATION
To coordinate is to harmonize all the activities of a concern so as to facilitate its
working and its success
According to him, in a well coordinated enterprise the following facts are to be
observed;
1.
Every dept works in harmony with the rest
2.
Divisions or sub-divisions in each dept are precisely informed as to the
share they must take in the commercial task and the reciprocal aid they are
to afford one another
3.
The working schedule of the various departments and sub-divisions
thereof is constantly attuned to circumstances
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CONTROL/MEASUREMENT AND
FEEDBACK
 According to Fayol, control consists in verifying
whether everything occurs in conformity with the
plan adopted, the instruction issued and the
principles established
 Its object is to point out weaknesses and errors in
order to rectify them and prevent recurrence.
 It operates on everything – resources (things), people
and actions
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Key principles of Mgmt of FAYOL
Unity of command
Unity of direction
Responsibility equal to authority
Scalar Chain
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MAX WEBER- THETHEORY OF
AUTHORITY STRUCTURES
There are three factors involved in the
understanding of any organization as under:
The laws and the traditional taboos of the
society
Individual leadership (charisma) which is
largely emotional
Bureaucracy, i.e., The mass of administrators
who carried out the laws and policies of the
government
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Types of authority
 Charismatic
Authority
magnetism of the leader
–
based
on
the
personal
 CHARISMA : PERSONAL QUALITY OR GIFT THAT
ENABLES AN INDIVIDUAL TO IMPRESS AND INFLUENCE
MANY OF HIS FELLOWS, A LEADER DOMINATES
DECISION MAKING
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TRADITIONAL AUTHORITY
 In this type of authority system – the leader has authority
by virtue of his status that he has inherited
 The extent of his authority is fixed by custom
 The officials who carry out the orders are like ‘household
staff’ of the master
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Rational-Legal authority = bureaucracy
 This authority system dominates, and it is most efficient one
 This system is characterized by rationality and legality
 The system is rational because the means are expressly
designed to achieve certain specific goals
 The org is like a well designed machine with a certain
function to perform, and every part of the machine
contributes to the attainment of maximum performance of
that function.
 It is legal, because authority is exercised by means of a system
of rules and procedures through the office which the
individual occupies at a particular time
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BUREAUCRATIC FUNCTIONS ARE
 Regular activities aimed at organizational goals – so
that they are distributed as fixed official duties
 All activities follow the organizational principles of
hierarchy
 Operations receive equal treatment under a
consistent systems of abstract rules
 Officials operate as formalistic personalities without
becoming emotionally involved.
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Lyndall Urwick – 6 sets
 Principle of Investigation
 Principle of Objective
 Principle of Organization
 Principle of Direction
 Principle of Experiment
 Principle of Control
(Urwick’s principles of management and organization
– source: A dictionary of Industrial Administration
edited by John Lee )
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Urwick’s Principles of Organization
 This was his main contributions to original thinking in regard to the
framework of management
 The principles were modified and published by AMA
These are :
 Principle of Objective (purpose/mission/objectives and vision)
 Principle of Specialization : the activities of every member of any
organized group should be confined, as far as possible, to the performance
of a single function
 Principle of coordination: The purpose of organizing per se, as
distinguished from the purpose of the undertaking, is to facilitate
coordination and unity of effort.
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 Principle of Authority: In every organization group,
the supreme authority must rest somewhere. There
should be a clear line of authority from the supreme
authority to every individual in the group
 Principle of Responsibility : The responsibility of the
superior for the acts of his subordinate is absolute
 Principle of Definition: The content of each position,
the duties involved, the authority and responsibility
contemplated and the relationships with other
positions, should be clearly defined in writing, and
published to all concerned
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 Principle of Correspondence: in every position, the
responsibility and the authority should correspond
 Principle of Span of Control: No person should supervise
more than five, or at the most six direct subordinates
(reportees) whose work interlocks
 Principle of Balance: The various units of an organization
should be kept in balance
 Principle of continuity : Reorganization is a continuous
process, in every undertaking specific provision should
be made for it.
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George Elton Mayo (1880-1949)
 He has been called the founder of the “human
relations school.”
 He became famous on account of the Hawthorne
experiments
 These experiments had a significant impact on
management thought, and considerably influenced
the “human relations movement.”
 Experiments conducted in the Hawthorne Plant of
the Western Electric Company in Chicago – from
1927 to 1932.
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