Basics of Management

Description
overview of management covering aspects like definitions, skills, functions of management, scientific management, various theories and sciences etc

Unit I of MCA(subject)
Management:
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1. Meaning ? 2. Definitions ? 3. Nature and Purpose ? 4. Evolution of Management Thoughts

The Practice and Study of Management
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The systematic study of management did begins in and around1900. The Egyptian pyramids required managed effort. Information Overload
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Management has not had a systematically recorded body of knowledge until recently. Today, vast amounts of relevant information are readily available in print and electronic media.

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An Interdisciplinary Field
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The manifold increase in management theory information is due largely to its interdisciplinary nature in drawing from several fields (e.g., psychology, mathematics, economics, history, and engineering).

The performance of organizations depends to a large extent on how their resources are allocated and their ability to adapt to changing conditions.
Successful organizations know how to manage people and resources efficiently to accomplish organizational goals and to keep those goals in tune with changes in the external environment.

Management in the New Millennium
? A firm

can be efficient by making the best use of people, money, physical plant, and technology. is ineffective if its goals do not provide a sustained competitive advantage. with excellent goals would fail if it hired the wrong people, lost key contributors, relied on outdated technology, and made poor investment decisions.

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? A firm

Cont…..
Success accrues to those who learn how ? To be leaders ? To Initiate change ? To participate in and create organizations
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fewer managers ? With less hierarchy that can change quickly

Manager
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A manager is someone who works with and through other people by coordinating their work activities in order to accomplish organizational goals – Robbins & Coulter. Management refers to the process of getting things done, effectively and efficiently, through and with other people. Efficiency means the ability to do things right, and refers to the relationship between inputs and outputs. In the context of the organization, it refers to the proper utilization of resources. These input resources are Men (people), Materials, Machinery (equipment), and Money. Effectiveness means doing the right things. In an organization, that translates into goal attainment.

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Managerial Competencies / Skills
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To become competent in management, sets of distinct, yet general skills are needed. These are classified as: General Management Skills, which include: Conceptual Skills – The cognitive ability to see the organisation as a whole and the relationships among its parts. Human Skills - The ability to work with and through other people and to work effectively as a group member. Technical Skills - The understanding of and proficiency in the performance of specific tasks.

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Relationship of skills with management levels

Definitions of Management
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The attainment of organizational goals in an effective and efficient manner through planning, organizing, leading and controlling organizational resources. - Richard Daft Book The art of getting things done through others - Mary Parker Follett As a process “consisting of planning, organising, actuating and controlling, performed to determine and accomplish the objectives by the use of people and resources” - George R. Terry

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Creation and maintenance of an internal environment in an enterprise where individuals working in groups, can perform efficiently and effectively toward the attainment of group goals. - Koontz and O’Donnel

Features of Management
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Management is a universal process ? Management is a factor of production ? Management is a goal oriented ? Management is supreme in thought and action ? Management is a group activity ? Management is a dynamic function ? Management is social science ? Management is a profession

Importance of Management
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Efficient accomplishment of predetermined goals Effective and optimum utilisation of resources Higher Efficiency Corporate Image

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Management Functions
Planning Organizing

Leading

Controlling

Planning
? The

management function that assesses the management environment to set future objectives and map out activities necessary to achieve those objectives.

? To

be effective, the objectives of individuals, teams, and management should be coordinated to support the firm’s mission.

Organizing
? The

management function that determines how the firm’s human, financial, physical, informational, and technical resources are arranged and coordinated to perform tasks to achieve desired goals. deployment of resources to achieve strategic goals.

? The

Leading
? The

management function that energizes people to contribute their best individually and in cooperation with other people. involves: ? Clearly communicating organizational goals ? Inspiring and motivating employees ? Providing an example for others to follow ? Guiding others ? Creating conditions that encourage management of diversity

? This

Controlling
? The

management function that measures performance, compares it to objectives, implements necessary changes, and monitors progress. of these issues involve feedback or identifying potential problems and taking corrective action.

? Many

Management Perspectives Over Time
The Technology-Driven Workplace The Learning Organization

2000 2010 2010 2000 2000 2000

1990

Total Quality Management Contingency Views 1950 Systems Theory 1940 Management Science Perspective 1930 Humanistic Perspective 1890 Classical 1870 1970

1980

1990 1990 1940 2010

Classical Perspective: 3000 B.C.
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Rational, scientific approach to management – make organizations efficient operating machines Scientific Management Bureaucratic Organizations Administrative Principles

New Approach to Management
Success accrues to those who learn how ? To be leaders ? To Initiate change ? To participate in and create organizations
? with

fewer managers ? With less hierarchy that can change quickly

Management and Organization
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Management philosophies and organization forms change over time to meet new needs
Some ideas and practices from the past are still relevant and applicable to management today

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Historical Perspective
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Provides a context or environment Develops an understanding of societal impact Achieves strategic thinking Improves conceptual skills Social, political, and economic forces have influenced organizations and the practice of management

Forces Influencing Organizations and Management
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Social Forces - values, needs, and standards of behavior Political Forces - influence of political and legal institutions on people & organizations Economic Forces - forces that affect the availability, production, & distribution of a society’s resources among competing users

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Scientific Management: Taylor 1856-1915

General Approach ? Developed standard method for performing each job. ? Selected workers with appropriate abilities for each job. ? Trained workers in standard method. ? Supported workers by planning work and eliminating interruptions. ? Provided wage incentives to workers for increased output.

Scientific Management
Contributions ? Demonstrated the importance of compensation for performance. ? Initiated the careful study of tasks and jobs. ? Demonstrated the importance of personnel and their training. Criticisms ? Did not appreciate social context of work and higher needs of workers. ? Did not acknowledge variance among individuals. ? Tended to regard workers as uninformed and ignored their ideas

Bureaucracy Organizations
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Max Weber 1864-1920 Prior to Bureaucracy Organizations
? European

employees were loyal to a single individual rather than to the organization or its mission ? Resources used to realize individual desires rather than organizational goals
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Systematic approach –looked at organization as a whole

Bureaucracy Organizations
Division of labor with Clear definitions of authority and responsibility
Positions organized in a hierarchy of authority

Personnel are selected and promoted based on technical qualifications

Administrative acts and decisions recorded in writing Management separate from the ownership of the organization

Managers subject to Rules and procedures that will ensure reliable predictable behavior

Administrative Principles
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Contributors: Henri Fayol, Mary Parker, and Chester I. Barnard Focus: ? Organization rather than the individual ? Delineated the management functions of planning, organizing, commanding, coordinating, and controlling

Henri Fayol 1841-1925
14 General Principles of Management

Division of labor ? Authority ? Discipline ? Unity of command ? Unity of direction ? Subordination of individual interest ? Remuneration
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Centralization ? Scalar chain ? Order ? Equity ? Stability and tenure of staff ? Initiative ? Esprit de corps
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Mary Parker Follett 1868-1933
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Importance of common goals for reducing conflict in organizations
? Popular

day ? But Overlooked by management scholars ? Contrast to scientific management ? Reemerging as applicable in dealing with rapid change in global environment
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with businesspeople of her

Leadership – importance of people vs. engineering techniques

Chester Barnard 1886-1961
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Informal Organization
? Cliques

(Groups) ? Naturally occurring social groupings
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Acceptance Theory of Authority
? Free

will ? Can choose to follow management orders

Humanistic Perspective
Emphasized understanding human behavior, needs, and attitudes in the workplace
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Human Relations Movement

Human Resources Perspective Behavioral Sciences Approach
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Human Relations Movement
Emphasized satisfaction of
employees’ basic needs as the key to increased worker productivity

Hawthorne Studies
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Ten year study Four experimental & three control groups Five different tests Test pointed to factors other than illumination for productivity 1st Relay Assembly Test Room experiment, was controversial, test lasted 6 years Interpretation, money not cause of increased output Factor that increased output, Human Relations

Human Resource Perspective
Suggests jobs should be designed to
meet higher-level needs by allowing workers to use their full potential

Abraham Maslow’s Hierarchy of Needs
1908-1970
Self-actualization Esteem Belongingness

Safety
Physiological
Based on needs satisfaction

Douglas McGregor Theory X & Y
1906-1964
Theory X Assumptions
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Theory Y Assumptions Dislike work –will avoid it ? Do not dislike work Must be coerced, controlled, directed, or threatened with ? Self direction and self punishment control Prefer direction, avoid ? Seek responsibility responsibility, little ambition, ? Imagination, creativity want security widely distributed ? Intellectual potential only partially utilized

Douglas McGregor Theory X & Y

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Few companies today still use Theory X Many are trying Theory Y techniques

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Behavioral Sciences Approach
Sub-field of the Humanistic Management Perspective

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Applies social science in an organizational context Draws from economics, psychology, sociology, anthropology, and other disciplines
? Understand

employee behavior and interaction in an organizational setting ? OD – Organization Development

Management Science Perspective
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Emerged after WW II Applied mathematics, statistics, and other quantitative techniques to managerial problems ? Operations Research – mathematical modeling ? Operations Management – specializes in physical production of goods or services ? Information Technology – reflected in management information systems

Recent Historical Trends
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Systems Theory Contingency View Total Quality Management (TQM)

Systems View of Organizations

Contingency View of Management

Successful resolution of organizational problems is thought to depend on managers’ identification of key variations in the situation at hand

Elements of a Learning Organization
Team-Based Structure

Learning Organization Empowered Employees Open Information

Types of E-Commerce
Business-to-Consumer B2C Selling Products and Services Online

Business-to-Business B2B Transactions Between Organizations

Consumer-to-Consumer C2C Electronic Markets Created by Web-Based Intermediaries



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