Management in all business and human organization activity is simply the act of getting people together to accomplish desired

goals and objectives.

Why management is needed? To become successful? What is success? Become successful through managing your firm, your life, and so on

Mary Parker Follett (1868-1933) defined management as the art of getting things done through people. Management guru Peter Drucker (1909-2005): Basic task of a management is two-fold: marketing and innovation

the act of getting things done through people. Louis Boone & David Kurtz: the use of people and other resources to accomplish objectives. Harold Koontz & Heinz Weihrich: the process of designing an environment in which individuals working together in groups, so as to efficiently accomplish selected goals.
Mary Parker Follet:

The verb manage has come from the Italian maneggiare (to handle especially a horse) Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of people or entities) or effort for the purpose of accomplishing a goal. Management is often included as a factor of production along with machines, materials, and money.

The above words suggest the difficulty of defining management, the shifting nature of definitions , and the connection of managerial practices within the existence of the managerial cadre or class. In English the term management or the management is used to describe the managers of an organization. This term is historically contrasted with the term labor or the managed.

Functions of Management Organization Resources Labour Capital Materials Machinery Information Planning Organizing Staffing Leading controlling Achieving of Organizational Goals

Henry Fayol: outlined the five basic functions that most managers do

Planning Organizing Staffing Leading Controlling

Management has hierarchical levels. Top Level Middle level Operational Level (Supervisory or First level)

The type of skills and the degree to which these levels are required varies from one level to another.

Top Level ------ Conceptual and design Skills

Conceptual skills refer to the ability of a person to conceptualize or abstract situations. Design skills refer to ability to find solutions to problems that organizations face.

Middle level ------- Human skills First Level: Technical skills

President & CEO

Top Level

Vice President
Sales & Marketing

V. P. Operations

V. P. Finance

Middle level

General Manager Manufacturing

Manager1

Manager 2

Manager 3 First level

Supervisor 1

Supervisor 2

Supervisor 3

Early management thought was dominated by cultural values that were anti-business, antiachievement, and largely anti-man. Industrialization could not have happened in such a climate. Monarchs were ruling nations by central dictates and there was no room for individual fulfillment in any type of pursuit. Before industrial revolution, economies and societies were essentially static. Organizations were run on the divine right of the king, on the appeal of dogma to the faithful, and on the rigorous discipline of the military.

The cultural rebirth created new social, economic, and political conditions that suited advances in science and technology. Industrial progress is always tied to advancements in science and technology. It happened in England first during the 15th century.

Frederick Winslow Taylor 1856-1915 American Steel worker to start with, became the chief engineer in six years Father of Scientific Management Work Study foundation of Taylor System Task Management Taylors lectures in Harvard from 1909 to 1914

Classical Approach

Behavioral Approach Group Influences

(Mary Follet)

Quantitative Approach Management Science

(George Dantzig)

Modern Approaches

Scientific Management
(Frederick Taylor)

Systems Theory
(C. West)

Hawthorne studies Bureaucratic Management (Max Weber)

(Elton mayo)

Operations Management
(Edward Deming)

Contingency Theory
(Paul Hersey)

Need Hierarchy
(A. Maslow)

Administrative Management
(Henry Fayol)

Theory X /Y
(D. McGregor)

Management Information Systems

(Charles Babbage)

Theory Z & Quality management

Model I vs. II
(Chris Argyris)

Scientific management
Frederick W. Taylor (1856 -1915), Frank Gilbreth (1868-1924) and Lilian Gilbreth (1878-1972) and Henry Gantt.

Taylors Principles of scientific management Develop scientific stepwise elements for each job Scientifically select employees and train them to do the job as specified Supervise to ensure that correct methods are followed. Continue to plan the work using workers.

Piece rate incentive system Time-and-motion study

Administrative Theory Henri Fayol focused on the activities that managers should take up. Technical- producing/ manufacturing goods. Commercial- Buying, selling, exchange of goods etc. Financial- search for optimal use of capital Security- protecting employees and assets. Accounting- Recording and compiling to take stock of costs, profits, liabilities, maintaining balance sheets etc. Managerial- Planning, organizing, commanding, coordinating and controlling

Bureaucratic Theory

Max Webers Ideal Bureaucracy Work specialization and division of labour (Jobs to tasks and sub tasks & clearly defined roles). Well defined rules and regulations Impersonality of managers Hierarchy of organization structure

Classical theories ignored the human factor. Elton Mayo father of human relations approach. -- Hawthorne studies (studies on productivity based on illumination/ attention given) Abraham Maslow focusing on human needs to achieve better results McGregor- two categories of employees. Chris Argyris- Model I (manipulative, risk averse companies) vs. Model II (less manipulative, learning based organizations)

Management Science This approach stresses the use of mathematical and statistical methods for decision making. George B. Dantzig is considered as the father of operations research.

Program evaluation & review techniques (PERT), Critical path method (CPM), Linear programming, Transportation and assignment problem, production scheduling, Queuing theory, the decision theory, Simulation theory, Probability / sampling theory, time series analysis are all contributions of quantitative approach.

Systems Theory (Churchman West) Comes with the view that management cant exist in isolation of the external factors. Provides a new way of looking at an organization as a whole, as a part of the larger external environment. Has four major components: Inputs Transformation Process Outputs Feed Back

1. Inputs (Resources)
Labour

2. Transformation Process 3. Outputs

Planning Organizing Goods Services Profits & Losses Employee Satisfaction

Materials Staffing Capital Leading Machinery Controlling Information Technology

4. Feedback

Inputs: comprises of the resources required to produce goods. Transformation process: involve, the managerial and technical abilities to convert the inputs to outputs. Outputs comprise of goods, services for customers and profits & other results for the company. Feed back: is about the evaluation of the outcomes

Contingency Theory (Paul Hersey & Ken Blanchard) Also known as the situational theory which finds wide acceptance in modern, complex, business organizations. Managers who follow this approach make business decisions after carefully evaluating all situational factors.
Task of manger is to identify which technique will in a particular situation, under particular circumstances will best contribute to achieving the set objectives.

Universal View
Same managerial Principles apply to all situations

Situation 1

Contingency View
Managerial action Varies From situation to situations Situation 2

Situation 3

William Ouchi, conducted research on both American and Japanese management approaches and came out with Theory Z. It involves: Providing job security to employees to ensure their loyalty and long term association with the company. Job rotation to develop cross functional skills.

Theory Z (contd.) Participation of employees in the decision making process and Emphasizes the use of informal control in the organization along with explicit performance measures. Gives importance to the well being of the employees and stresses on their training & development.