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Management & Behavioural Processes

Management Concept What is an organization? Group of people working together in a systematic manner to achieve a set of goals

Understanding “Management“ from resource- based perspective:

Human Financial Physical Information

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1] Human: managerial talent and labour

2] Financial: capital used to finance both ongoing and long term operations.

3] Physical: raw materials, office, production facilities equipment

4] Information: Usable data needed to make effective decisions

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HOW DO MANAGERS COMBINE AND COORDINATE

THE VARIOUS KINDS OF RESOURCES?

Management in Organizations

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Mangers engage in above activities to combine 4 resources efficiently and effectively and to work toward achieving goals of the organization

What is Management?

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A set of activities (including planning and decision making, organizing, leading, and controlling) directed at an organization’s resources (human, financial, physical, and informational) with the aim of achieving organizational goals in an efficient and effective manner.

Efficient Vs Effective

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Efficient1. Doing the things right2. Focuses on the process or “means”

of doing things3. Using resources wisely in a cost

effective way and Getting most output from least amount of inputs

4. Efficiency restricted to the present state

5. Efficiency will look at avoiding mistakes or errors

6. Since efficiency is about doing things right, it demands documentation and repetition of the same steps. Doing the same thing again and again in the same manner will certainly discourage innovation

Effective1. Doing the right things 2. Focuses on achieving the “end”

goal.3. Making right decisions and

successfully implementing them 4. Effectiveness involves thinking long

term5. Effectiveness is about gaining

success6. Effectiveness encourages innovation

as it demands people to think, the different ways they can meet the desired goal.

Who is a Manager?

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One who plans, makes decisions, organizes, leads and controls human, financial, physical and information resources.

Helping others to do their work

Responsible for getting things done

Other definitions…

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“Management is the accomplishment of results through the efforts of other people:

Lawrence A Appley

“Management is the art of getting things done through and with the people in formally organized groups”

Koontz

Nature of Management

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Management is universal Basic principles of management can be applied in all

managerial situations regardless of size, nature and location of the organization. Universality of managerial tasks and principles also implies that managerial skills can be transferrable and managers can be trained and developed.

MultidisciplinaryBecause it includes knowledge, information from various

disciplines like economics, statistics, psychology, sociology, operations research etc. Management integrates ideas and concepts taken from these disciplines and presents newer concepts which can be put in to practice for managing organizations.

Management is dynamicManagement has framed certain principles which are flexible

in nature and change with the changes in the environment in which the organization exists.

According to Peter Drucker; “Managers do not wait for future, they make the future”

Relative, not absolute principlesManagement principles should be applied according to the

need of the organization. A particular management principle has different strengths in different conditions

Is a system of authorityA manager is supposed to get things done, rather than doing

things himself by using authority. Authority means right to give orders and power to obtain objective from subordinates. It’s a rule making and rule entering body in an organization.

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Management Science or Art?

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Science

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Science is a systematic body of knowledge that is developed through observation and experimentation and can be verified

Scientific principles establish a cause and effect relationship between various factors

Mere knowledge or collection of facts does not qualify as science. It is only when the gathered knowledge is verified in different geographies and over a period of time it becomes science

Art

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Art is a systematic application of a skill or knowledge for the accomplishment of results

It represents methods or ways of doing specific things to effect change and accomplish results through deliberate efforts.

Science is concerned with knowing “why” and art is with the “how” of application

Management as an Art

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Personal Skill: Manager has to use his skill, knowledge to solve many complimented problems on day to day basis

Practical Knowledge: Management does not merely mean systematic presentation of principles can be applied in practical to get better results

Result Oriented: Management is concerned with accomplishment of objectives, it is result oriented and for that it leads, directs others towards attaining desired goals.

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Regular Practice: Effectively and effectiveness can be attained through regular practice. Like an artist manager also practices regularly so that he can work better and can get output in an effective and efficient manner

Creativity: Any art work can be considered as a creative work. Like an art, management is one of the most creative arts as it deals with getting things done through others by motivating their efforts in an innovative manner

Management as a Science

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Systematic body of knowledge: Management is an organized body of knowledge built up by management practitioners, philosophers and thinkers by conducting extensive research and verification of the same over the years. Principles of management make use of scientific methods. Taylor applied scientific techniques like time and motion study, work study etc

Cause and effect relationship: In management also cause and effect relationship is studied. Poor planning cause low productivity, lack of employee benefits, low salary cause high attrition, poor marketing cause less sales etc

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Continuous observation: Principles of management have been developed on the basis of continued observations by many theorists and practitioners over a period of years.

Validity and predictability: Scientific principles represent basic truth and can be applied at all times to all situations. In management also there are certain fundamental principles which can be universally applied and repeatedly tested to verify its validity and predictability, reliability

Management as pure science suffers from following limitations

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Principles of management don’t always have a universal application. Unity of Command, which means reporting to one superior. It does not mean that he should not report to more than one boss, if superiors have better understanding, know how to balance between the advantages and disadvantages of multiple commands, an employee can have more than one superior.

Human beings behavior can not be predicted

Management lack certainty about the result.

Conclusion

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management is a mixture of art and science. As an art it demands certain skills from its practitioner and as a science it provides its practitioner with a systematic body of knowledge comprising certain principles laws etc, which have been tested and verified.

Management is a crude science because its application varies from person to person and from one situation to another. We can conclude that management is a behavioural science.

Is administration and management one and the same?

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No universally accepted view on this point. American school of thought says

Administrators think- Top level function Managers do- Lower level function

British School of Thought Management is wider concept than administration Administration is a lower level function of day to day

activities Management is rule making and rule enforcing

activity There is really no clear cut distinction between

management and administration

Management as a profession

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Profession means an occupation backed by specialized knowledge, expertise and training.

Over the past few years management has grown in to a distinct discipline backed by systematic body of knowledge. Number of process, principles, techniques and tools have been developed and they are important through formalized education and training

Management also focuses on ethical behaviour and developed certain code of conduct to regulate performance of management professional.

Like a Doctor, Managers [consultants] do charge fees on services rendered.

Purpose of Management

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To achieve productivityManagement is an active force which acquires uses, organizes

factors of production, (men, material, machine, money) and coordinates different interdependent activities in an organization to achieve organizational goals effectively and efficiently. Without management a country’s resources main as resources only and don’t result in production.

To adapt to the changes in the business environment

As an organization exists in a dynamic environment, management has to adapt the changes which happen in different sectors like technology, regulatory policies, economic policies, politics, demography etc and leads the organization towards excellence.

To compete, survive and growManagement guides the organization to compete amongst the

rivals, survive the threats in the external environment and achieve growth and prospects through continuous learning and innovation

To meet the expectations of the stakeholdersManagement has to meet expectation of various stakeholders

like adhering to rules and regulations of the Government, maximizing returns to the investors, providing good working conditions and benefits to the employees, maintaining good relationship with clients/suppliers and providing quality goods and services to customers, meet responsibilities towards society.

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Functions/Process of Management

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These solid lines describe basic logic between activities theoretically.

Practically, dotted arrows show that most managers engage in more than one activity at a time and often move back and forth between the activities in unpredictable ways. Manager is likely to be engaged in different activities simultaneously.

Functions of management don’t usually occur in a tidy, step-by-step fashion. Managers are constantly engaged in many different activities. A manager may be helping a colleague develop goals for the next quarter-planning, discussing a proposed company restructuring- organizing, praising a subordinate for outstanding performance-leading, and checking on last month’s sales information- controlling.

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Planning & Decision making

• Defining goals, establishing strategy, developing plans to coordinate activities

Organizing

• Determining what needs to be done, how it will be done and who is to do it

Leading

• Monitoring, leading and any other actions involved in dealing with people

Controlling• Monitoring activities to ensure that they are accomplished as plannedLead to achieving organization’s stated goals

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POSDCORB Acronym

Created by Gulick and Urwick

based on Henry Fayol’s 14 principles of management

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Planning: process of establishing goals and a suitable course of action for achieving those goals

Organizing: process of arranging resources

Staffing: selecting and training individuals for specific job functions and charging them with associated responsibilities

Directing: process of influencing and motivating employees to perform essential tasks in an organization30 vikas vadakara

Coordinating: integration of activities of the separate parts of an organization to accomplish organizational goals

Reporting: process of executives keeping superiors and subordinates informed about what is going on

Budgeting: formal quantitative statement of resources allocated for planned activities over stipulated periods of time

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Levels Of managers

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Managing at Different Levels of the organization:Top Managers

Small group of executives who manage the overall organization, the strategic level.

Middle Managers A large group that implement the strategies

developed at the top.First-Line Managers

Supervise and coordinate the activities of operating employees.

Types of managers

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Based on Management LevelTop Managers

Middle Managers

First Line Managers

Based on Scope of ActivityFunctional

General

Based on work activityLine Managers

Staff Managers

Manager/Non Manager

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Non managers receive orders, works

follow decisions taken by managers

Directly contribute to the production

Report to first line managers

Managerial Roles

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Managerial Skills

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Conceptual Skills Mental ability to analyze and diagnose

complex situations Allow Managers to see how things fitHuman Skills Ability to work with, understand, mentor and

motivate others Both individually and as a group Many managers fail in thisTechnical Skills Ability to apply specialized knowledge or

expertise

Key Characteristics to become a successful Manager

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Education Experience Efficient time management Empathy Continuous learning Communication ability Technical Expertise Goal Oriented Risk Taking

Evolution of Management ThoughtIntroduction First known management ideas were recorded

in 5000 BC when Sumerian Traders developed written records for government

The Egyptians used management functions of planning, organizing, and controlling when they constructed the pyramids.

Roman empire and their military hierarchy, public administrative systems.

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Management breakthroughs and practices over the last 4000 years

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Early writings on ManagementSun Tzu’s The Art of War A book on military strategy by Chinese

General Sun Tzu in 6th Century BC.

Highlights By being aware of utilizing organization’s

strengths and utilizing them to exploit weaknesses of the enemy- success can be achieved

Emphasizes importance of discipline to get things done through coordinated group effort

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Chanakya’s Arthashastra Developed around 3rd Century BC Written by Chanakya Book deals with the governance of kingdom

by a king or a leaderHighlights Lays down principles that should be taken in

to consideration by a leader while making policies of governance and people management

Importance of creating departments, development of detailed job profiles and qualifications of administrators who had to manage these departments as directors.vikas vadakara42

Evolution of Management Thought

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Evolution of management

Thought

Early Management Approaches

Modern ApproachesQuantitative

ApproachSystem ApproachContingency

Approach

Neo Classical Approaches

Early Classical Approaches

Scientific Management

Administrative MgtBureaucratic

Organization

Human Relation Approach

Behavioural Science Approach

Classical ApproachScientific Management

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Frederick Winslow Taylor(1856-1915)

Graduated in science and engineering through evening study

1878- joined as worker at Midvale steel works.

1898- joined Bethlehem steel company as Engineer

Acknowledged as Father of scientific Management

Steps in Scientific Management

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Studied the work processes and introduced One best way to do the job/work study:

analyzing different operations performed in a work, eliminating unnecessary operations and finding one best way to the job

Time study, motion study and fatigue study

Time study: to determine the time required for each movement

Motion study: study of movements of workers and machines to ensure performance of only necessary activities

Fatigue study: shows when employees are getting tired and when management should provide rest periods to increase efficiency, productivity of workers

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Differential wages linked to productivity

Careful selection and training of workers

Division of labour and distribution of work between management and workers

Harmonious relationships between management and workers

Overall objective- efficiency of the labour

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Limitations of scientific management It ignored human touch in an organization and

viewed workers as machines

Monotonous and boring job

Exploitation device

Harsh and difficult to perform

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Administration Management Scientific management deals with improving

efficiency and productivity of individual employees

Administrative management focuses on managing whole organization.

Henry Fayol [1841-1925] is the main contributor to this approach

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Henry Fayol [1841-1925]

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A French Industrialist

Regarded as “ Father of Modern Management Theory”

Suggested conceptual framework for studying management by dividing industrial activities into 6 groups

Technical Financial Security Accounting Managerial Commercial

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Identified 5 managerial functions to carry out these activities; planning, organizing, commanding, coordinating and controlling.

Fayol was the 1st management thinker to recognize need for management teaching

Believed that management was an activity common for all organizations including government agencies

Published a famous book named “General And Industrial Management”

In his book, he presented 14 principles of management for running an organization efficiently. vikas vadakara52

Fayol’s 14 principles of management1. Division of Work: division of total task lightens the work,

specialization[one person does only one thing] increases the efficiency and output.

2. Parity between Authority and responsibility: managers should balance between both. They

should have right to give orders and should own accountability for the task

3. Discipline: Respect of authority and following rules. Clarity

of rules, built in rewards, punishments help to maintain discipline

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4. Unity of Command:One should receive orders from only one

superior5. Unity of Direction:there should be single plan and head for

each group of activity with same objective/ direction

6. Subordination of Individual interests to general interests

Individuals interests should be harmonious with organization’s interests. Integrate the both

7. Fair remuneration to workers:Remuneration should be based on cost of living,

business condition. Additional works should get incentives. This increases morale and efficiency

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8. Centralization:Major decisions should be taken by Top

Management, operations level decision making power can be given to lower level.

9. Scalar Chain:Chain of superiors from highest to lowest

ranks. Authority should run from top to bottom in proper channel

10. Order:there should be a place for everything and

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11. Equity:managers should be kind and fair to their

workers12. Stability of tenure of personnel:Try to minimize employees turnover, build

long term commitment, a sense of belongingness among their subordinates. Provide job security

13. Initiative:Managers should encourage their

subordinates to take initiatives. 14. Esprit de corps:[ team spirit]Management should create team spirit

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Bureaucratic Management

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Max Weber (1864-1920)

German sociologist Known as Father of

Modern Sociology

Focuses on development and implementation of rational guidelines like

organization’s structure, hierarchy of authority, rules and procedures, division of roles and responsibilities for managing work in an organization.

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Weber’s Principles of Bureaucracy

Neo Classical ApproachesBehavioural Science ApproachUnlike the classical management

perspective, the behavioral management perspective placed

more emphasis on individual attitudes and behaviors and on group processes

recognized the importance of behavioral processes in the work place.

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Elton Mayo[1880-1949] and his associates conducted research [Hawthorne studies], a series of experiments that focused on behaviour in the workplace [ Hawthorne plant of Western Electric Company near Chicago.]

First Study/Phase: Illumination Study [1924]:Study involved manipulating illumination for

one group of workers and comparing their productivity with another group.

But both the groups produced the same output

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11 Phase- Relay Assembly Test[1925]The experimental group of employees were given Freedom to fix work schedules Six breaks of five minutes per shift were allowed Work day and week were shortened Work was simplified Financial incentives for increased production Friendly supervision These kinds of special attention and treatment

enhanced productivity ( i.e. Hawthorne Effect)

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111 Phase: [1928] Interviewing Program

Interviewed 21000 employees to find the reasons for increased productivity

Informal work groups and their productivity norms were recognized as the main causes for productivity

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1V Phase: Bank Wiring Observation Room Experiment[1929]

Team work and performance based incentives introduced

Efficient workers did not pressure the others to work more for benefiting by incentive scheme.

They formed group norms to regulate the productivity.

Over produced named: rate bustersUnder produced named: chiselers

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The group norms were Don’t turn out too much work Don’t turn out too little work Don’t tell supervisors anything that would harm a

colleague Don’t be too officious-rather follow group norms

Implications of Hawthorne studies Suggested managing through good human

relations Involves motivating people, team work, group

influence etcConsider the human factor as they are social

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Human Relation Approach Proposed that workers respond primarily to the

social context of the workplace, including social conditioning, group norms, and interpersonal dynamics.

Human behavior in organizations is complex There are two theories on how employees behave;

These theories are developed by Douglas McGregor

Theory X and Theory Y

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Theory X

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Employees dislike work.

Employees are irresponsible.

Employees lack ambition.

Employees resist change.

Here manager thinks that employees behave like this, they are negative, and scientific management can be applied

Theory Y

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Employees are willing to work.

Employees are self directed.

They accept responsibility. Employees are creative. They are self-controlled.

Here manager thinks that employees behave like this, they are positive, and human relations should can be improved to get more productivity

Douglas suggests that managers should follow Theory Y

Limitations of Neo Classical Approaches Focused more on group behaviour

Human behaviour is complex in nature, so can’t predict the results

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Modern ApproachesQuantitative Approach or Management

Science Approach or Operations Research Approach

During World War II, military people took some mathematical approaches to deploy its resources efficiently and effectively

After war, Companies like DuPont, General Electric began to use some techniques for deploying employees, choosing plant location, planning warehouse etc.

Concerned with applying quantitative techniques to management

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Features Organizational efficiency depends upon

quality of managerial decisions

A problem can be expressed in the form of a quantitative/ mathematical model containing mathematical symbol and relationships

Different variables in management can be quantified, expressed in the form of an equation.

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Contributions Provided precise tools for decision making in

areas like production, finance, costing, transportation and storage

It has been widely used in planning and control

Limitations Fails wherever human element is involved Most decisions involves human judgment, Q A

can provide only data for such decision making

Q. A can suggest best possible alternatives, hence quantitative techniques can be valuable supplements

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Systems Approach Developed during early 1960s Contributors: Kenneth Boulding, Johnson and

Bernard etc System: An interrelated set of elements

functioning as a whole Organizations are viewed as a systemBasic types of system: Open System: organization that interacts with

its environment Closed System: that doesn’t interact with its

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ORGANIZATIONS MUST BE OPEN SYSTEMS

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The Organization as an Open System

Inputs: human, financial, materials, information resources from its environment

Through technological and managerial processes inputs are transferred into outputs

Outputs to environment: products, services

Environment reacts to these outputs and provides feedback to the system

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Sub systems Approach also focuses on sub systems:

systems within a broader system Change in one subsystem can affect other

subsystem E.g.: if purchase department does not acquire

right quality of inputs [ raw material], production department will not be able to do its job efficiently

Synergy suggests that organizational units or sub units may become more successful working together than working alone.

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Example for synergy : Walt Disney Company’s movies, theme

parks, television programs, other licensed programs all benefit one another

Children who enjoy Walt Disney movie like Mickey Mouse, want to go to Disney World, see the movie there, buy Mickey Mouse toys, buy theme printed lunchbox, cloths etc, and film music generates additional revenue.

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Entropy Is a normal process that leads to system

decline

When an organization does not monitor feedback from its environment and make appropriate adjustments, it may fail

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Implications

As per systems approach management should continuously re-energize the organization to avoid entropy

Coordination of the organization’s parts is essential for proper functioning of the entire organization.

Decisions and actions taken in one area of the organization will have an effect in other areas of the organization.

Organizations are not self-contained and, therefore, must adapt to changes in their external environment vikas vadakara79

Contingency Approach/Situational Approach Classical, neo classical and quantitative

approaches considered universal perspectives, because they tried to indentify the “one best way” to manage organizations.

Contingency Approach suggests there is no one best way of doing things under all conditions

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Features Stresses that there is no best way of doing a

thing. Conditions of contingency/situation will determine which technique would be most suitable

Managers should prepare objectives, policies, procedures, rules and regulations according to situation of business

Success in management depends upon the ability to cope with environmental demands

Managers should sharpen their diagnostic skills to anticipate and comprehend environment changes vikas vadakara81

Limitations This approach lacks theoretical base

Manager is required to think through all possible alternatives, as there is no clear cut principles to act upon.

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Quality And Performance Excellence In a progressive organization management

and employees are quality conscious Through continuous improvement they bring

performance excellence in their work place

Excellence Model Though there are many excellence models,

European Foundation For Quality Management model is very famous

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EFQM Model Was founded in 1988

Started with 14 European countries, now comprises with over 600 companies from most Western European countries

Involves nine criteria for excellence; first five are enablers means one should perform them first, rest four are results of achieving excellence

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EFQM Model

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Leadership

Processes

Business Results

People Management

Impact on Society

Customer Satisfacti

on

People Satisfacti

on

Policies , Strategies

Resources

Learning Organization

Means an organization that has developed continuous capacity to adapt and change

Features: Systematic thinking Developing personal mastery Building share vision Team learning/ continuous improvement

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Global Awareness Awareness of current happenings- national

and international updates

Technological challenges

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21st Century Executives challenges Global strategies: diverse cultural, economies,

different regulations, demography Technological developments Inspiring leaders Role model of ethical behaviour Win -Win Approach: seeking mutual benefit Work life balance

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Social Responsibility of Managers Organization is a part of society

Relationship with the community or society in which organizations are exist and work

Decisions taken may affect society in different ways

Show the concern towards society

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Economic responsibilities: produce goods and services required and helpful to the society

Legal Responsibilities: follow rules and regulations, laws

Environmental Responsibilities: protect environment and preserve ecological balance

Ethical Responsibilities: e.g. fair and unbiased treatment to workers

Discretionary Responsibilities: contribution to society by adopting villages to develop, donate books, computers to schools, free medical campaign

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Thank You