PERSPECTIVE MANAGEMENT

Donna J

CONTENTS
1. Management - Science or Art
2. Evolution of Management
3. Importance of Management
4. Levels of Management
5. Managerial Skills
6. Social Responsibility & Ethics ( notes given)
7. Functions of Management
8. Types of Planning
9. Types of Leaderships
10.Administration v/s Management
11.Management of Change
12.Formal & Informal Org (notes given)
13. Types of Organisation Structure
14. Line & Staff departmentation
15. Decentralization of Authority
16. Delegation of Authority

17. Human Factors :

McGregors X & Y theory
Maslows Hierarchy
Expectancy theory
Herzberg Motivation
Mc Clelland theory
18. Control Process
19. Control Techniques
20. MIS 3 phase

Definition of Management :

Management :
The process of designing and maintaining an environment in which individuals,
working together in groups, efficiently accomplish selected aims.

Management is the art of getting things done through and with the people in
formally organized groups.
_ Koontz H.

Management is the process of Planning, Organizing, Staffing, Directing and

Controlling to accomplish organizational objectives through the coordinated
use of human and material resources.

Management - Science or Art

1.
2.
3.
4.

1.
2.
3.
4.

It is an Art for the following reasons :

Management is Creative
Based on three factors : intuition, judgement,feeling
Involves using skills, knowledge and intelligence
Management is innovative
It is also Science :
Scientific methods for decision making
Universal application of management principles
Identical results not always available
Collects information through observation and experiments

Evolution of Management
Frederick Taylor/Scientific Management :

Frederick Taylor (1856-1915)

The Father of Scientific Management
Maximize worker capacity and profits
PROBLEM: Get employees to work at their maximum
capacity
PRIMARY FOCUS: TASKS

The systematic study of the relationships between people

and tasks to redesign the work for higher efficiency.
Taylor sought to reduce the time a worker spent on
each task by optimizing the way the task was done.

Four Principles to increase

efficiency:

Four Principles to increase efficiency:

1. Study the way the job is performed now & determine new
ways to do it.
Gather detailed, time and motion information.
Try different methods to see which is best.
2. Codify the new method into rules.
Teach to all workers.
3. Select workers whose skills match the rules set in Step 2.
4. Establish a fair level of performance and pay for higher
performance.
Workers should benefit from higher output.

Problems of Scientific
Management

Managers often implemented only the increased output side of

Taylors plan.
They did not allow workers to share in increased output.
Specialized jobs became very boring, dull.
Workers ended up distrusting Scientific Management.
Workers could purposely under-perform
Management responded with increased use of machines.

Elements of Scientific Management

Scientific design of every aspect of every task
Time and Motion Studies

Careful selection and training of every task

Proper remuneration for fast and high-quality work
Maximize output - increase pay

Equal division of work and responsibility between worker and manager

Father of Modern Management

: Henri Fayol (1841-1925)

General and Industrial Management

Principles and Elements of Management how managers should accomplish their managerial
duties
PRIMARY FOCUS: Management
(Functions of Administration)
More Respect for Worker than Taylor
Workers are motivated by more than money
Equity in worker treatment
Keep machine functioning effectively and efficiently
Replace quickly and efficiently any part or process that did not contribute to
the objectives

Fourteen Principles of
Management
(Tools
Accomplishing
Division offor
work - limited set of tasks
Authority and Responsibility - right to give orders
Objectives)
Discipline - agreements and sanctions

Unity of Command - only one supervisor

Unity of Direction - one manager per set of activities
Subordination of Individual Interest to General Interest
Remuneration of Personnel - fair price for services
Centralization - reduce importance of subordinates role
Scalar Chain - Fayols bridge
Order - effective and efficient operations
Equity - kindliness and justice
Stability of Tenure of Personnel - sufficient time for familiarity
Initiative - managers should rely on workers initiative
Esprit de corps - union is strength loyal members

Note : learn any 10 points and explain

Elton Mayo / Human Relations

Approach

Elton MAyo and his associates conducted Hawthorne studies.

Some of the findings are:
Employees behaviour is influenced by mental attitudes
Workers in a group develop a common psychological bond uniting
them
Social motivation plays a big role
Typical group behaviour can dominate individual preferences.

Contributions :
Managers should consider employees as individuals
Group dynamics wasemphasised for the first time to improve organisational
performance
Concept of "social man"
"Suggestion Boxes" were used first time

Importance of Management
1. Optimum use of resources
2. Comprtitive Strength
3. Cordial industrial relations
4. Motivates Employees
5. Expansion of Business
6. Team Spirit
7. Stability and Prosperity
8. Effective use of managers
9. Smooth functioning
10.Reduce turnover and absenteeism

Levels of Management

Managerial Skills
There are three skill sets which every manager should posses :
Conceptual Skills : the ability to analyze and diagnose a situation
and find the cause and effect.
Humann Skills : the ability to understand, alter, lead, and control
people's behaviour.
Technical Skills : the job specific knowledge required to perform a
task . eg. marketing, accounting..etc :
Note : Elaborate more on the points.

Social ethics / CSR

PLs learn from the notes I have given.

Functions of Management

Managers

Planning
activities to
achieve the
organization's
objectives

Organizing
resources and
activities to
achieve the
organizations
objectives

Staffing
the
organization
with qualified
people

Directing
employees
activities
toward
achievement
of objectives

Controlling
the
organizations
activities
to keep it
on course

Types of Planning
A systematic process of reaching a desired state by establishing goals and
formulating strategies to achieve them.
Types of planning are :
1. On the basis of Nature:
Formal
Informal
2. On the basis of Time:
Short term
Long term
3. On the basis of Levels of management:
Top level
Middle Level
Front line
4. On the basis of Use:

4. On the basis of Use:

Single Use :
Is a plan which sets course of action for a particular set of circumstances and
is used up once the particular goal is achieved.
They may include programmes, budgets, projects, and schedules.
This plan is prepared by lower- level management.
These plans are also called as specific planning.
Standing Planning :
Are designed to be used over and over again. Permanent nature and are
meant for repeated use.
Objectives, policies, procedures, methods, rules and strategies are included in
this type of plans.
Helps the higher executives to reduce their work load. It is also called as
Routine planning
These plans are prepared by Top-level management.

Types of Leaderships

Leadership Style : A pattern of behaviour designed to integrate organisational and

personal interest in pursuit of some objectives.

Autocratic Leader
Democratic Leader
Free rein/ Laissez-faire Leader
Functional / Intellectual Leader
Bureaucratic Leader
Paternal Leader

Note : Pls elaborate

Administration v/s
Management
Points of Distinction

Adminstration

Management

Nature

It is a determinative or
thinking function

It is an executive or doing
function

Type of Work

Concerned with
determination of major
objectives and policies

Concerned with the

implementation of policies

Level of Authority

Top level function

Middle & Lower level

function

Main functions

Planning & Control are main Directing & Organizing are

functions involved
main functions

Skills Required

Conceptual & Human Skills

Technical & Human Skills

Usage

Used largely in govt &

public sector

Used mainly in business

organization

Illustration

Minister, Commander,
Registrar, Governor

Managing Director, General

manager, Sales manager

Management of Change

In large scale organizations, change seldom occur without a bit of chaos.

Change becomes orderly when it is planned and implemented in a
systematic way. The process has the following steps :

1. Identify the need for change : the manager should identify the forces
demanding change. Those forces may be internal or external. Internal
forces include : employee turnover, change related role conflicts, mounting
problems from its growing size, introduction of new department due to
expansion in sales, production. External sources include technological
changes, new marketing strategies etc
2. Diagnose the problem : This step involves the identification of the root
cause. Several techniques are used for diagnosis eg. Interviews, attitude
survey, team meetings etc. Organizational analysis includes exhaustive
study of organizational goals, principles, practices and performance at a
macro level.

3. Plan the change : this is a critical step in the management of change. It

involves answering three important questions
When to bring the change
How to bring the change
Who will introduce the change
While introducing change, reactions from people must be carefully
assesses. People affected by change must be consulted, the likely impact
should be explained, sufficient time to pick up new skills should be given
with rewards.
4. Implement the change : while implementing any change programme,
managers encounter three programmes:
Problems

Implication

Action Steps

Resistance

Need to motivate

Invite participation
Offer rewards

Control

Need to manage
the transition

Build in feedback
machines

Power

Need to shape
the political
domain

Support of key
groups
Use symbols.

Formal and Informal

Organisation

Organisation : A formalized intentional structure of roles or position.

Importance of Organisation :
Optimal utilisation of human resources
Facilitates coordination
Facilitates division of work
Facilitates growth expansion
Stimulates Creativity
Determines individual responsibility
Note : You have to elaborate on the points.
Formal Org : the intentional structure of roles in a formally organized
enterprise.
( refer text )
Informal Org : A network of interpersonal relationships that arise when
people associate with one another.
( refer text )

Types of Organisation Structure

Departmentation : Is the grouping of jobs, processes and resources
into logical units to perform some organisational task.
1. Departmentation By Territory

Note : Study with advantages & disadv. Diagrams

Departmentation By Enterprise Functions

Note : Study with advantages & disadv. Diagrams

3. Departmentation by Customer Group :

4. Matrix Organisation :

5. Strategic Business Units :

Line & Staff Organisation

Line Organisation / Authority : The relationship in which a superior exercises direct
supervision over a subordinate.
1. Downward flow of information
2. Complete authority in the area of their operations
3. Unity of command
4. Equal status
5. No confusion
6. Present in all organisations

Staff Organisation / Authority : The elements which have responsibility and authority for
providing advice and service to the line in attainment of objectives.
Referred as experts and act as thinkers
Provides Guidance to line executives
Exercises control over subordinates
Is suitable for large scale business

Note : elaborate on the points

Decentralization of Authority
Decentralization :
The tendency to disperse decision making authority in an organized
structure.
Suitable in large enterprises
Decisions are made at all levels . Hence communication gap
Scope for self, executive & management development
High motivation and morale
Burden on the top executives is limited as work is distributed at lower levels
When is it necessary ?
It facilitates the process of delegation of authority
Is a progressive concept
It is necessary along with expansion of a business enterprise
necessary in order to introduce democratic spirit in an organisation

Delegation of Authority
1. Delegation : Means assigning of certain responsibilities along with the
necessary authority by a superior to his subordinate managers.
2. Process of delegation : ( refer text )
3. Personal attitudes towards delegation:
a. Willingness to let go
b. Willingness allows mistakes by subordinates
c. Willingness to trust subordinates
d. Willingness to establish and use broad control
4. Overcoming weak delegation :
a. Define assignments
b. Select the person
c. maintain open lines of communication
d. Proper controls
Note : This answer is given properly in the text

Maslows Hierarchy
Note : Explain each levels
in the maslows hierarchy.

Mcgregors theory X & Y

Douglas Mc Gregor He treated
traditional approach to manag as
Theory X and the professional
approach to manag as Theory Y.

This theory is the perceptions

managers hold on their
employees,not the way they
generally behave.

Expectancy theory
Expectancy Theory is based on an employees beliefs:

Valence - refers to emotional orientations which people hold with respect to outcomes (rewards)
the value the person attaches to first and second order outcomes
Expectancy refers to employees different expectations and levels of confidence about what
they are capable of doing the belief that effort will lead to first order outcomes
Instrumentality refers to the perception of employees whether they will actually receive what
they desire, even if it has been promised by a manager the perceived link between first order
and second order outcomes

Note : pls refer text for more information...and MARKS!!!

Herzberg-Hygiene/ Two Factor Theory

The two-factor theory (also known as Herzberg's motivation-hygiene
theory and dual-factor theory) states that there are certain factors in the
workplace that cause job satisfaction, while a separate set of factors cause
dissatisfaction.
Two-factor theory distinguishes between:
Motivators (e.g. challenging work, recognition, responsibility) that give
positive satisfaction, arising from intrinsic conditions of the job itself, such as
recognition, achievement, or personal growth
Hygiene factors (e.g. status, job security, salary, fringe benefits, work
conditions) that do not give positive satisfaction, though dissatisfaction
results from their absence. These are extrinsic to the work itself, and include
aspects such as company policies, supervisory practices, or wages/salary.

Herzberg analysed the job attitudes of 200 accountants and engineers who were
asked to recall when they had felt positive or negative at work and the reasons
why.
Hygiene Factors
Hygiene factors are based on the
need to for a business to avoid
unpleasantness at work. If these
factors are considered
inadequate by employees, then
they can cause
dissatisfaction with work.
Hygiene factors include:
- Company policy and
administration
- Wages, salaries and other
financial remuneration
- Quality of supervision
- Quality of inter-personal
relations
- Working conditions
- Feelings of job security

Motivator Factors
Motivator factors are based on an individual's need for personal growth. When
they exist, motivator factors actively create job satisfaction. If they are
effective, then they can motivate an individual to achieve above-average
performance and effort. Motivator factors include:
- Status
- Opportunity for advancement
- Gaining recognition
- Responsibility
- Challenging / stimulating work
- Sense of personal achievement & personal growth in a job
There is some similarity between Herzberg's and Maslow's models. They both
suggest that needs have to be satisfied for the employee to be motivated.
However, Herzberg argues that only the higher levels of the Maslow
Hierarchy (e.g. self-actualisation, esteem needs) act as a motivator. The
remaining needs can only cause dissatisfaction if not addressed.

Applying Hertzberg's model to de-motivated workers

What might the evidence of de-motivated employees be in a business?
- Low productivity
- Poor production or service quality
- Strikes / industrial disputes / breakdowns in employee communication and relationships
- Complaints about pay and working conditions
According to Herzberg, management should focus on rearranging work so that motivator
factors can take effect. He suggested three ways in which this could be done:

Job enlargement : (sometimes also referred to as horizontal loading) involves the

addition of extra, similar, tasks to a job.In job enlargement, the job itself remains
essentially unchanged. However, by widening the range of tasks that need to be
performed, hopefully the employee will experience less repetition and monotony that
are common on production lines which rely upon the division of labour.

Job rotation : involves the movement of employees through a range of jobs in order
to increase interest and motivation.Job rotation can improve multi-skilling but also
involves the need for greater training.In a sense, job rotation is similar to job
enlargement. This approach widens the activities of a worker by switching him or her
around a range of work.

Job enrichment : is the process of "improving work processes and environments so

they are more satisfying for employees".Many jobs are monotonous and unrewarding
- particularly in the primary and secondary production industries. Workers can feel
dissatisfied in their position due to a lack of a challenge, repetitive procedures, or an
over-controlled authority structure.

Mc Clelland theory

Note : Answer is given in the text book.

BASIC CONTROL PROCESS

Controlling : The measurement and correction of performance in order
to make sure that enterprise objectives and the plans devised to
attain them are being accomplished.
The basic control process involves :
Establishment of Standards
Measurement of Performance
Correction of Deviations

Control Techniques
1. Direct Supervision and Observation : Is the oldest technique of
controlling. The supervisor himself observes the employees and their work.
This brings him in direct contact with the workers. So, many problems are
solved during supervision. The supervisor gets first hand information, and
he has better understanding with the workers. This technique is most
suitable for a small-sized business.
2. Financial Statements : All business organisations prepare Profit and Loss
Account. It gives a summary of the income and expenses for a specified
period. They also prepare Balance Sheet, which shows the financial position
of the organisation at the end of the specified period. Financial statements
are used to control the organisation. The figures of the current year can be
compared with the previous year's figures. They can also be compared with
the figures of other similar organisations.
3. Budgetary Control : A budget is a planning and controlling device.
Budgetary control is a technique of managerial control through budgets. It is
the essence of financial control. Budgetary control is done for all aspects of
a business such as income, expenditure, production, capital and revenue.
Budgetary control is done by the budget committee.

4. Break Even Analysis : Break Even Analysis or Break Even Point is the point
of no profit, no loss. For e.g. When an organisation sells 50K cars it will
break even. It means that, any sale below this point will cause losses and
any sale above this point will earn profits. The Break-even analysis acts as a
control device. It helps to find out the company's performance. So the
company can take collective action to improve its performance in the future.
Break-even analysis is a simple control tool.
5. Return on Investment (ROI) : Investment consists of fixed assets and
working capital used in business. Profit on the investment is a reward for
risk taking. If the ROI is high then the financial performance of a business is
good and vice-versa.
ROI is a tool to improve financial performance. It helps the business to compare
its present performance with that of previous years' performance. It helps to
conduct inter-firm comparisons. It also shows the areas where corrective
actions are needed.

6. Management by Objectives (MBO) : It must fulfill following requirements :Objectives for individuals are jointly fixed by the superior and the subordinate.
Periodic evaluation and regular feedback to evaluate individual performance.
Achievement of objectives brings rewards to individuals.
7. Management Audit : Audit is an evaluation of the management as a whole.
It critically examines the full management process, i.e. planning, organising,
directing, and controlling. It finds out the efficiency of the management. To
check the efficiency of the management, the company's plans, objectives,
policies, procedures, personnel relations and systems of control are
examined very carefully. Management auditing is conducted by a team of
experts. They collect data from past records, members of management,
clients and employees. The data is analysed and conclusions are drawn
about managerial performance and efficiency.

8. Management Information System (MIS) : In order to control the

organisation properly the management needs accurate information. They
need information about the internal working of the organisation and also
about the external environment. Information is collected continuously to
identify problems and find out solutions. MIS collects data, processes it and
provides it to the managers. MIS may be manual or computerised. With
MIS, managers can delegate authority to subordinates without losing
control.
9. PERT and CPM Techniques : Programme Evaluation and Review
Technique (PERT) and Critical Path Method (CPM) techniques were
developed in USA in the late 50's. Any programme consists of various
activities and sub-activities. Successful completion of any activity depends
upon doing the work in a given sequence and in a given time.Importance is
given to identifying the critical activities. Critical activities are those which
have to be completed on time otherwise the full project will be delayed.
So, in these techniques, the job is divided into various activities / sub-activities.
From these activities, the critical activities are identified. More importance is
given to completion of these critical activities. So, by controlling the time of
the critical activities, the total time and cost of the job are minimised.

MIS 3 PHASE

To the managers, Management Information System is an implementation of

the organizational systems and procedures. To a programmer it is nothing
but file structures and file processing. However, it involves much more
complexity.
The three components in MIS gives a more complete and focused definition,
where System suggests integration and holistic view, Information stands
for processed data and Management is the ultimate user, the decision
makers.

Management:
Management covers the planning, control, and administration of the operations
of a concern. The top management handles planning; the middle
management concentrates on controlling; and the lower management is
concerned with actual administration.

Information:
Information, in MIS, means the processed data that helps the management in
planning, controlling and operations. Data means all the facts arising out of
the operations of the concern. Data is processed i.e. recorded, summarized,
compared and finally presented to the management in the form of MIS
report.
System:
Data is processed into information with the help of a system. A system is made
up of inputs, processing, output and feedback or control.
Thus MIS means a system for processing data in order to give proper
information to the management for performing its functions.

Following are the basic objectives of an MIS:

Capturing Data: capturing contextual data, or operational information that will
contribute in decision making from various internal and external sources of
organization
Processing Data: the captured data is processed into information needed for
planning, organizing, coordinating, directing and controlling functionalities at
strategic, tactical and operational level. Processing data means:
making calculations with the data
sorting data
classifying data and
summarizing data
Information Storage: information or processed data need to be stored for
future use.
Information Retrieval: the system should be able to retrieve this information
from the storage as and when required by various users.
Information Propagation: information or the finished product of the MIS
should be circulated to its users periodically using the organizational network.

Characteristics of MIS
Following are the characteristics of an MIS:
It should be based on a long-term planning.
It should provide a holistic view of the dynamics and structure of the
organization.
It should work as a complete and comprehensive system covering all
interconnecting sub-systems within the organization.
It should be planned in a top-down way, as the decision makers or the
management should actively take part and provide clear direction at the
development stage of the MIS.
It should be based on need of strategic, operational and tactical information of
managers of an organization.
It should also take care of exceptional situations by reporting such situations.
It should be able to make forecasts and estimates, and generate advanced
information, thus providing a competitive advantage. Decision makers can take
actions on the basis of such predictions.
It should create linkage between all sub-systems within the organization, so that
the decision makers can take the right decision based on integrated view.

My dear studentshope these

materials should do the trick. Learn
well . Case study , videos and ppt
thats all from where the questions will
be asked kMAKE ME PROUD!!