Unit 1-Principles of management

8/12/2019 Unit 1-Principles of management

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MG2351 - PRINCIPLES OF MANAGEMENT

SYALLABUS

UNIT I OVERVIEW OF MANAGEMENT

Definition - Management - Role of managers - Evolution of Management thought -Organization and the environmental factors Trends and Challenges of Management in

Global Scenario

UNIT II PLANNING

!ature and "ur"ose of "lanning - #lanning "rocess - T$"es of "lans Ob%ectives -Managing

b$ ob%ective &M'O( Strategies - T$"es of strategies - #olicies Decision Ma)ing - T$"es of

decision - Decision Ma)ing #rocess - Rational Decision Ma)ing #rocess - Decision Ma)ingunder different conditions

UNIT III ORGANIZING

!ature and "ur"ose of organizing - Organization structure - *ormal and informal grou"s+

organization - ,ine and Staff authorit$ - De"artmentation - S"an of control -Centralization and

Decentralization - Delegation of authorit$ - Staffing - Selection and Recruitment - Orientation -Career Develo"ment - Career stages Training - #erformance ""raisal

UNIT IV DIRECTING

Creativit$ and .nnovation - Motivation and Satisfaction - Motivation Theories -,eadershi" St$les - ,eadershi" theories - Communication - 'arriers to effective

communication - Organization Culture - Elements and t$"es of culture Managing cultural

diversit$

UNIT V CONTROLLING

#rocess of controlling - T$"es of control - 'udgetar$ and non-budgetar$ control techni/ues -

Managing #roductivit$ - Cost Control - #urchase Control Maintenance control - 0ualit$Control - #lanning o"erations

TEXT BOOKS:

1 Ste"hen # Robbins and Mar$ Coulter2 3Management32 #rentice 4all of .ndia2 5th edition

6 Charles 7 , 4ill2 Steven , McShane2 3#rinci"les of Management32 Mcgra8 4ill Education2

S"ecial .ndian Edition2 699:

REFERENCES:

1 4ellriegel2 Slocum ;


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as ho8 the mind controls the human bod$ and its function similar

management &mind( controls the various activities & human bod$( in the

Organization

Collection of "h$sical e/ui"ments2 1 M2&in Organization Men2

Machine2 Materials2 Mone$2 leads to nothing *or efficient and "rofitable

functioning it is necessar$ that all these factors are "ut to 8or) in a co-

ordinate manner

MANAGEMENT:

Management is the art of getting things done through others and 8ith

formall$ organized grou"s

OR

Management is the art and science of organizing and directing human efforts

applied to control the forces and utilize the material of nature for the benefit of

man A#e%i,!n &o,iet3 of #e,)!ni,!$ en"inee%&/

F(n,tion!$ ,on,e4t-as a "rocess2 management is 8hat a manager "erforms

Wi$$i!# S4%ie"e$

Management is the "rocess b$ 8hich a coo"erative grou" directs action

to8ards a common goal 5o&e4) Me&&ie

6(#!n Re$!tion& ,on,e4tManagement is the art of directing and ins"iring

"eo"le

5/D Moone37 !n+ A/C R!i$e3

Le!+e%&)i4 !n+ +e,i&ion #!8in" ,on,e4tManagement is the art andscience of decision-ma)ing and leadershi"

Don!$+ 5 C$o(")

Management means decision-ma)ing Ro&& Moo%e

P%o+(,ti'it3 ,on,e4tManagement is the art of )no8ing 8hat to do

------------ in the chea"est 8a$ F/W T!3$o%

Management is a techni/ue of increasing "roductivit$--Management means designing2 organizing defining goals formulating

"olicies and strategies in accordance 8ith the "revalent environmental conditions

and these environmental conditions are )no8n as situations

--Management is merging /ualit$ and variet$ 8ith cost that is "roviding

unlimited variet$ of goods2 better /ualit$ and at lo8est "rice level to the customers

--Management is defined as a "rocess of identif$ing "roblems and threats and

ta)ing care of these "roblems and threats in such manner that ultimatel$ these turn


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out into o""ortunities 8hich could benefit the organization in accom"lishment of its

ob%ectives

In $!te&t 'ie9:

!o8 da$s in cor"orate sector ta)ing advantage of the o""ortunities does not

matter 7hat matters is to convert or translate the o""ortunities then to face

difficulties

Definition& .!&e+ on #ie+ 'ie9&:

Good management achieves a social ob%ective 8ith the best use of human and

material energ$ and time and 8ith satisfactions for the "artici"ants and the

"ublic

M!%3 ,(%&in" Ni$e&

Management is the direction of human behaviour to8ards a "articular goal or

ob%ective

Conclusion:On the basis of all the above-mentioned definitions it can be asserted

Management is the "rocess 8hich b$ "lanning2 organizing2 staffing2 leading and

controlling2 a human grou" ma)es "ossible the ma@imum and efficient use of

"h$sical resources and hel"s in realizing the "re-determined ob%ectives of an$

organization

.n modern times 8hen human needs are continuousl$ rising2 it is

absolutel$ im"ossible to fulfill them single-handed .n such a situation the need of

grou" activit$ is felt Man cannot "roduce an$ single thing b$ himself alone andthere is al8a$s the necessit$ of a human grou" 8hose activities and be named

collective effort Thus on human grou" "roduce one "articular "roduce 8hile

another such grou" "roduce something different and hence2 human needs are fulfill

b$ collective efforts of different human grou"s

!o8 the /uestion arises 8hether all the "eo"leAs com"rising a "articular

human grou" are com"etent enough to achieve success in their activities 8ithout

an$ outside discussion and control

The obvious to this all-im"ortant /uestion can onl$ be in the negative The

reason for such an ans8er is com"le@ So long "articular human grou"s for into

have their air aims2 definite "lanning2 "ro"er distribution of 8or)2 defining rightsand duties2 establishing "ro"er co-ordination among them2 directing and controlling

their activities2 success cannot be achieved These are the "roblems2 8hich give rise

to another /uestion2 8hich is e/uall$ im"ortant2 and the /uestion is ho8 to

overcome these "roblemsB The ans8er to this reall$ com"le@ /uestion in inherent in

management

Through the medium of management all these above-mentioned "roblems can

be solve The activities of a human grou" can be efficientl$ managed on the "re-

determined "roblems can be effectivel$ achieved handling b$ a manager .t 8ould

not be out of "lace to mention here that the absence of "ro"er management2 the


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activities of a human grou" are li)e a shi" 8ithout a ca"tain Thus it is evident that

success of collective efforts re/uires some s"ecial "o8er !D T4T #O7ER .S

T4E M!GER2 8ho ensures the success of different activities b$ the "rocess of

management .t is im"ortant to classif$ here that the im"ortance of management is

not limited to business alone but it is needed at all those "laces 8here human

activities ta)e "lace-for e@am"le educational .nstitutions2 Religious .nstitution2

Govt de"artments2 unions2 forces2 families

ME!.!G O* M!GEME!T

n$thing minus Management is nothing

--FS)e%$e8!% !n+ S)e%$e8!%2;

MANAGEMENT:

The 8ord management can be st$led as M!GE-ME!-T That means

manage men tactfull$ 7h$ manage men tactfull$ This is 8ith a vie8 to get the

things done being 8ith them Thus management means managing men tactfull$ to

get the things done being 8ith them Thus management2 .n order to manage men

tactfull$2 one has to understand the highl$ un"redictable and uncertain human

nature o8ing to this management is ver$ com"licated and challenging activit$

Some times it is )no8n as a grou" of administration officers 8or)ing in a

"articular institution and sometimes it means a "rocess of "lanning2 organizing2

staffing2 directing2 co-coordinating and controlling

.n the light of different o"inions the #e!nin" of #!n!"e#ent ,!n .e

!n!$3*e+ in t)e fo$$o9in" 9!3&:

&i( M!n!"e#ent !& ! 4%o,e&&: some times it is defined as a "rocess

"rocess has means that different activities li)e "lanning2 organizing2

staffing2 leading2 controlling through a definite "rocess

&ii( .n other 8ords2 management is a definite "rocess 8hen coordinates

different activities for the attainment of an aim or target set b$ an

institution or organization

&iii( M!n!"e#ent !& ! +i&,i4$ine: management is fast emerging as a

disci"line Disci"line here means a se"arate and recognized sub%ect2 8hich

has its o8n identit$ Management is also being recognized as se"arate

s$llabi because it has its o8n thoughts2 "rinci"les and methodolog$&iv( M!n!"e#ent !& ! e,ono#i, %e&o(%,e: economists have acce"ted

management as a resource of "roduction li)e other resources &land2 labour2

ca"ital2 material and machine( #roduction is not "ossible 8ithout these

basic things

&v( M!n!"e#ent !& ! no(n: 8hen it is addressed as a noun2 it is related to

those "ersons 8ho get other "eo"leAs 8or) com"leted E/"/ board of

directors2 managing2 general manages etc

Me!nin" of #!n!"e#ent !t "$!n,e:


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&i( A& !n !,ti'it3 Get things done through others being 8ith them

&ii( A& ! 4%o,e&& series of interrelated functions "erformed in all

organizational

&iii( A& ! +i&,i4$ine a sub%ect of stud$ dra8ing u"on )no8ledge of others

disci"lines $oung and gro8ing disci"line

&iv( A& ! "%o(4 a bod$ of "ersons 8ho "erform the tas) of managing

organization n elite grou" in the societ$

N!t(%e o% C)!%!,te%i&ti,& of #!n!"e#ent:

&i( Goal oriented

&ii( niversal

&iii( .ntegrated "rocess

&iv( Social "rocess

&v( ctivit$ based

&vi( Grou" activit$

&vii( rt as 8ell as science

&viii( Multi disci"linar$

&i@( .ntangible

&@( O"timum co-ordination bet8een human and material resources

&@i( The combination of multi"le functions

&@ii( Management is a distinct entit$

&@iii( Management is a "rofession

&@iv( Management based on authorities

&@v( .t is needed at all level

&@vi( .t is a social res"onsibilities&@vii( #ur"oseful

&@viii(.t is an e@ecutive function

&@i@( .t is a coordinating force

&@@( D$namic in nature

&@@i( Management "rinci"les are relative not absolute ---- it means that

management results are according to the situation

&@@ii( Management is creative and innovative formulate creativit$H creativit$ is

the "rocess of develo"ing ne8 ideas

OR

fter a careful stud$ of definitions 8e embar) u"on such features2 8hich

illustrate the nature of management Such features are as follo8s

&i( It i& ! 4%o,e&&:"rocess means a s$stematic method of doing some 8or)

Management is recognized as a continuous "rocess .t is that "rocess in

8hich 8or) is done 8ith others or it is got done from them .n order to

achieve the "re-determined ob%ective a manager "erforms the 8or) of


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"lanning2 organizing2 staffing2 leading and controlling manager did

these 8or)s in a continuous order So2 it is a "rocess

&ii( G%o(4 effo%t&:management al8a$s efforts to grou" efforts and does not

a""l$ to an individuals grou" rather than an individual can easil$ and

effectivel$ attain management of an enter"rise

&iii( It i& ! &o,i!$ 4%o,e&&: management is called a social activit$ because it is

connected 8ith the "eo"le 8or)ing in a human grou" and 8hich re/uires

organizing their efforts n$ activit$2 8hich is connected 8ith the "eo"leliving in societ$2 is called a social activit$ .n this conte@t management is

also described as a social activit$

&iv( Att!in#ent of 4%e+ete%#ine+ o.


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A& ! 4%ofe&&ion: s"ecialized bod$ of )no8ledge2 formal education service motive2

re"resentative association and code of conduct management is not a full-fledged

"rofession

MANAGEMENT AS AN ART:

M!in fe!t(%e& of !%t !%e:

&i( rt involves the a""lication of )no8ledge and s)ills to achieve desired

results

&ii( rt is essentiall$ creative and the success of an artist is measured b$ the

results he achieves

&iii( rt is a "ersonalized "rocess as ever$ artist has his o8n st$le or a""roach

&iv( rt "rescribes ro8 to do things and it can be im"roved through continuous

"ractice

Management is essentiall$ an art because

Fi%&t$37 the "rocess of management involves the use of )no8ledge and s)ills in

solving various "roblems

.t see)s to achieve a concrete "ractical result that is out"ut2 "rofits2 gro8th

etc

Se,on+$37Management is creative as the manager creates ne8 things and im"roves

u"on the old things

T)i%+$37 Management is a "ersonalized "rocess ever$ manager has his o8n

a""roach and techni/ues to solve "roblems2 de"ending u"on the environment in

8hich he 8or)s

L!&t$37 the manager gets "erfection in the art of managing through continuous

"ractice

Thus management full$ lives u" to the descri"tion of an A%tand therefore it

is an art

OR

rt im"lies the a""lication of )no8ledge and s)ills to bring about the desired

results

Fe!t(%e&:

1 P%!,ti,!$ 8no9$e+"e: ever$ art signifies "ractical )no8ledge n artist

must not onl$ learn the theor$ but also its a""lication in "ractice Similarl$

a "erson cannot become a successful manager sim"l$ b$ reading the

theor$ if must also learn to a""l$ his )no8ledge in solving managerial

"roblems in "ractical life manager is %udged not %ust b$ his technical

)no8ledge but his efficienc$ in a""l$ing that )no8ledge


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OR

Science means a s$stematic bod$ of )no8ledge "ertaining to a s"ecific field

of stud$ .t contains general "rinci"al and facts 8hich e@"lains a "henomenon

Fe!t(%e&:

1 S3&te#!ti, .o+3 of 8no9$e+"e: management is a s$stematic bod$ of

)no8ledge consisting of general "rinci"les and techni/ues These hel" to

e@"lain events and serve as guidelines for managers in different t$"es oforganization

6 Uni'e%&!$ !44$i,!tion:scientific "rinci"les re"resent basic facts about and a

"articular field of en/uires These "rinci"les ma$ be a""lied in all situations

and at all times Management contains some fundamentals "rinci"les2 8hich

can be universall$ a""lied These "rinci"les are fle@ible and need to be

modified in different situations

? S,ientifi, en=(i%3 !n+ e4e%i#ent:scientific "rinci"les and derived through

scientific investigation and reasoning So the$ can be e@"lained logicall$2

scientific "rinci"les are criticall$ tested Management "rinci"les are also

based on scientific en/uir$ and investigation These have been develo"ed

through "ractical and e@"erimental e@"erience of a large number of

managers

I C!(&e !n+ effe,t %e$!tion&)i4:"rinci"les of science la$ do8n a cause and

effect relationshi" bet8een related factorsH similarl$ the "rinci"les of

management establish cause and effect relationshi" bet8een different

variables

J Te&t of '!$i+it3 !n+ 4%e+i,t!.i$it3:validit$ of scientific "rinci"les can be

tested at an$ time and an$ number of times Ever$ time the test 8ill give the

same result#rinci"les of science can also be tested for their validit$

Con,$(&ion:

Management is not a "erfect science li)e other "h$sical science such as

astronom$2 "h$sics2 chemistr$2 and biolog$ etc management deals 8ith "eo"le and

it is ver$ difficult to "redict their behavior accuratel$ so management is a &o,i!$

&,ien,e/

M!n!"e#ent !& ! 4%ofe&&ion:

"rofession is a caving that re/uires s"ecialized )no8ledge and often long

intensive academic "re"aration

Fe!t(%e&:

1 S4e,i!$i*e+ .o+3 of 8no9$e+"e: ever$ "rofession has a 8ell-defined bod$ of

)no8ledge relevant to the area of s"ecialization .n order to "ractice a

"rofession a "erson re/uires s"ecialized )no8ledge of its "rinci"les and


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techni/ues There e@ists a substantiall$ and ra"idl$ e@"anding bod$ of

)no8ledge in management Toda$2 management is a se"arate disci"line

having a s"ecialized and organized bod$ of )no8ledge

6 Re&t%i,te+ ent%3:there e@ist institutions and universities to im"art education

and training for a "rofession !o one can enter a "rofession 8ithout going

through the "rescribe course of learning Man$ institutions have been set u"

8hich offer courses for s"ecialized training in management *ormal education

and training has become ver$ hel"ful in getting %obs as managers? Se%'i,e #oti'e:a "rofession is a source of livelihood but "rofessional are

"rimaril$ motivated b$ the desire to serve the communit$ "rofession

en%o$s communit$ sanction or res"ect manager of a factor$ is res"onsible

not onl$ to its o8ners2 b$ the is also e@"ected to "roduce /ualit$ goods at

reasonable costs and to contribute to the 8ell being of the communit$

I Re4%e&ent!ti'e !&&o,i!tion: in ever$ "rofession there is a statutor$

association or institution2 8hich regulates that "rofession Managers have

formed certain associations for the regular e@change of )no8ledge and

e@"erience

J Co+e of ,on+(,t:members of one "rofession have to abide b$ a code of

conduct2 8hich contains rules and regulations "roviding the norms of honest$

integrit$ and "rofessional ethics The re"resentative association to ensure

self-disci"line among its members enforces the code of conduct n$ member

violating the code can be "unished and his membershi" can be cancelled

Con,$(&ion:

Management fulfills several essentials of a "rofession but li)e other

"rofessions management does not restrict entr$ into managerial %obs2 to "eo"le 8ith

a s"ecial academic degree

O.


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OR

ccording to Druc)er2 management is a d$namic and life-giving element of

ever$ business .n its absence the means of "roduction remain merel$ the means and

can never be the "roducers

7e )no8 that not onl$ in the field of business but in other fields also

management has come to occu"$ an im"ortant "lace .n this reference2 it is said that

an$thing minus management is nothing

These are some to"ics2 8hich clearl$ highlight the im"ortance of

management

>/ A,)ie'in" 4%e+ete%#ine+ o.


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>/ Re+(,e& ,o&t of 4%o+(,tion/

>>/ E,ono#i, "%o9t): Management is the catal$st of economic

gro8th2 develo"ment is a matter of human energies rather than of economic

gro8th and generation of human energies is the tas) of management

Management is the mover ad develo"ment in the conse/uence

>?/ St!.i$it3: management ensures the survival of an organisation in a

fast changing environment .t co-ordinates the activities of different

de"artments in an organization and maintains team s"irit amongst the"ersonnel

>@/ 6(#!n +e'e$o4#ent: Management is not sim"l$ directions of

things but the develo"ment of men .t im"roves the "ersonalit$ and caliber of

"eo"le to raise their efficienc$ and "roductivit$ good manager serves as a

friend and guide to his subordinates

>1/ Meet& t)e ,)!$$en"e of ,)!n"e:Management is a catal$tic force

that enables an organization to face the challenge of change The environment

of business has become ver$ turbulent Managers maintain a d$namic

e/uilibrium bet8een an enter"rise and its environment through innovation

and creativit$

MANAGEMENT AND ADMINISTRATION

On the basis of different o"inions of the e@"erts over the 8orld management

and administration2 there are three "revalent conce"ts -

&i( A#e%i,!n ,on,e4t&: dministration is a higher-level activit$ or s$stem

and management is lo8er

&ii( En"$i&) ,on,e4t&: management is the higher-level s$stem and it has more

"o8er than administration

&iii( Mo+e%n ,on,e4t&: ccording to it2 management and administration are

s$non$mous .n the modern scientific age of management this is the most

"revalent and acce"ted conce"t of management and it ma)es no difference

bet8een management and administration

DIFFERENCE BETWEEN MANAGEMENT AND ADMINISTRATION:

S%/

No/

B!&i& of

+iffe%en,e Administration Management

1 Meaning .t means the determination of

ob%ectives2 "lans and "olicies

of an enter"rise

Management is to translate

threats into o""ortunities

6 #ur"ose dministration aims at

determining the ob%ectives

Management aims at

achieving "re-determined

ob%ectives


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? !ature dministration is a decision

ma)ing function

Management is an e@ecution

or doing function

I Decisions dministration decides 8hat

is to be done and 8hen it is to

be done

Management decides 8ho 8ill

do the function and ho8 he

8ill do it2 8here he 8ill do it

J Sco"e The term administration is

a""licable at the to" level of

management

The term management is more

a""licable at middle level and

lo8er level of managementK sage The term administration is

generall$ used from business

organizations li)e govt2

offices2 colleges2 universities

etc

Management is generall$ used

8ith reference to business

enter"rises

: *eatures

affecting

decisions

dministration decisions are

influenced b$ govt "olicies2

social and "olitical

circumstances and economicadditions

Management decisions are

mainl$ influenced b$ the

target of enter"rise

5 Relationshi" dministration is related

mainl$ 8ith the o8ner and

to"-level managers

Management is related 8ith

the 8or)ers and em"lo$ers of

organization

L *unction .t is a determinative or

thin)ing function

.t is an e@ecutive or doing

function

19 Concerned .t is concerned 8ith

determination of ma%or ob%ect

and "olicies

.t concerned 8ith the

im"lementation of "olicies

11 ,evel .t is mainl$ to"-level

function

.t is largel$ a middle and

lo8er level function

16 .nfluence .ts services are influenced

mainl$ b$ "ublic o"inion and

other outside forces

Managerial decisions are

influenced mainl$ b$

ob%ectives and "olicies of

organization

1? Concerned .t is not directl$ concerned

8ith direction of human

efforts

.t is a activit$ concerned 8ith

directions of human efforts in

the e@ecutions of "lans

1I .nvolvement #lanning and controlling arethe main functions involved

in it

Directing and organizing aremain functions involved in it

1J S)ills Conce"tual and human s)ills

used eagerl$ in govt and

"ublic sector

Technical and human s)ills

used mainl$ in business

organization

1K Minister2 Commander2

Commissioner2 Registrar2 >ice

- Chancellor2 Governor etc

Managing director2 general

manager2 sales manager2

branch manager etc


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LEVELS OF MANAGEMENT MANAGERIAL 6IERARC6YH

T)e #!n!"e#ent $e'e$& #!3 .e ,$!&&ifie+ !& fo$$o9&:

&i( To" management

&ii( Middle management

&iii( Su"ervisor$ or o"erating management

To4 o% ee,(ti'e #!n!"e#ent:

To" management refers to the managing at the highest level in the

management hierarch$ .t is the ultimate source of authorit$ .t is held res"onsible

for the general success or failure of the organization

To" management consists of the board of directors and the chief e@ecutive or

managing director the$ establish overall long-term goals and "lans of the

organization .t is their res"onsibilit$ to ensure success of the organization .t is

basicall$ an organ of overall revie8 and control Chief e@ecutive is concerned 8iththe overall management of the com"an$As o"erations 4e maintains coordination

among different de"artments of the com"an$ 4e also )ee"s the organization in

harmon$ 8ith its e@ternal environment

Fe!t(%e&:

&i( To anal$se and inter"ret changes in e@ternal environment of the

com"an$

&ii( To establish long term cor"orate "lans

&iii( To formulate and a""rove the master budget and de"artmental

budgets

&iv( To design broad organization structure

&v( To a""oint de"artmental heads and )e$ e@ecutives

&vi( To coordinate and integrate the activities of different de"artments

and divisions of the com"an$

&vii( To "rovide overall direction and leadershi" to the com"an$

&viii( To e@ercise the overall revie8 and control of the financial and

o"erating results of the com"an$

&i@( To re"resent the com"an$ to the outside 8orld

&@( To decide the distribution of "rofits

Inte%#e+i!te #!n!"e#ent:

.ntermediate or u""er middle management com"rises de"artmental or

divisional heads

Eg 8or)s manager2 mar)eting manager2 finance manager etc


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.t is also )no8n as de"artmental or functional management Ever$ divisional

head is the overall uncharged of one "articular division or de"artment 4e is

accountable for the "erformance of his division or de"artment to the chief e@ecutive

4e "erforms the usual managerial functions of "lanning2 organizing2 staffing2

directing and controlling in relation to one de"artment 4e coordinates and controls

the activities of all "ersonal 8or)ing in different branches of his de"artment

Mi++$e #!n!"e#ent:Middle management consists of all sectional heads

Eg "lant manager2 area sales manager2 branch manager2 office manager etc

These e@ecutives serve as a lin) bet8een intermediate or to" management

and the o"erating management

F(n,tion:

&i( To inter"ret and e@"lain the "lans and "olicies formulated b$ to"

management

&ii( To control the o"erating "erformance

&iii( To coo"erate among themselves so as to integrate the various activities of

de"artment

&iv( To train2 motivate and develo" su"ervisor$ "ersonal

&v( To la$ do8n rules and regulations to be follo8ed b$ su"ervisor$

"ersonnel

S(4e%'i&o%3 o% o4e%!tin" o% fi%&t$ine #!n!"e#ent:

This is the lo8est level of management in an organization .t consists of

su"ervisors2 foremen2 sales officers2 and "urchase officers etc su"ervisors and

o"erating managers maintain close contacts 8ith ran) and file 8or)ers andsu"ervise da$-to-da$ o"erations The$ are concerned 8ith the mechanics of %obs

F(n,tion:

1 To "lan da$-to-da$ "roduction 8ith is the goals laid do8n b$ higher

authorities

6 To assign %obs to 8or)ers and to ma)e arrangements for their training and

develo"ment

? To issue orders and instructions

I To su"ervise and control 8or)ers o"erations and to maintain "ersonalconnection 8ith them

J To arrange material and tools is maintain machiner$

K To advice and assist 8or)ers b$ e@"laining 8or) "rocdures2 solving "roblems

etc

: To maintain disci"line and good human relations among 8or)ers

5 To re"ort feedbac) information and 8or)ers "roblems to the higher

authorities


16/64

CONCEPTS OF MANAGEMENT

!H P%o,e&& of #!n!"e#ent:it includes si@ mAs

1 Men

6 Mone$

? Machine

I Material

J Mar)et

.H A& ! 4%ofe&&ion:

ou need "ro"er degree There are certain legal rules

SKILLS OF A MANAGER

.n order to have a "ro"er achievement of good and in order to have "lan to be

"ro"erl$ 8or)ed on a manager must have certain s)ills such as -

>H Con,e4t(!$ &8i$$& are s)ills related to the abilit$ to

visualize the organization as a 8hole2 discern interrelationshi"s among

organizational "arts2 and understand ho8 the organization fit into the 8ider conte@t

of the industr$2 communit$2 and 8orld Conce"tual s)ills are the s)ills managers

must have to thin) and to conce"tualize about abstract and com"le@ situations

sing these s)ills2 managers must be able to see the organization as a 8hole2

understand the relationshi"s among various submits2 and visualize ho8 the

organization fits into its broader environment

?H Te,)ni,!$ &8i$$&: it is concerned 8ith the a""lication of

s)ill or )no8ledge ac/uired Management does not sim"l$ mean the )no8ledge of"rinci"les of management rather it is its a""lication 8hich ma)es its effective

@H 6(#!n &8i$$&: manager should have #s$chological

)no8ledge 4e should able to deal 8ith different "ersons in different circumstances

1H De,i&ion #!8in" &8i$$&:in crucial times a manager should

be able to have the abilit$ of ma)ing decisions These decisions must be effective

and "ractical in use as 8ell

MANAGEMENT AND SOCIAL RESPONSIBILTIES

FOR:

Manager should have social res"onsibilit$ for the "eo"le 'ecause manager is

a "erson 8ho is ver$ s)illed2 if he 8ill ta)e interest in the social functions or

"roblem2 it 8ill create a good im"ression on other "eo"le living or 8or)ing under

him it 8ill motivate the sub-ordinates 8or)ing under him Thus2 it creates a

favorable im"ression on the societ$2 8hich 8ill ultimatel$ hel"s the business

Managers have a creative and also communicative s)ill s their main tas) is

to have the cordial relations 8ith "eo"le inside the organization or outside the

organization The$ had to interact 8ith his subordinates2 su"eriors and other

members relating to business


17/64

So2 the managers are ver$ creative and if the$ 8ill ta)e "art in social

"roblems2 the societ$ is bound to im"rove in some )ind or others Managers ta)e the

in"ut from the societ$ e/"/education values etc if managers 8ill ta)e "art in social

event or the$ 8ill become res"onsible to8ards societ$2 the societ$ is sure to ma)e

"rogress become one man can change the 8hole environment .t 8ill thus create the

source of motivation to8ards the societ$ A,,o%+in" to S3&te# t)eo%37 for the

efficient 8or)ing and smooth 8or)ing small sub-s$stems should 8or) "ro"erl$

AGAINST:

The main function of the manager is to govern his organization smoothl$ and

efficientl$ So2 he should not ma)e himself res"onsible to8ards the societ$ 4e

should not be able to do his 8or) "ro"erl$ The social "roblem should be left for

those "eo"le So generall$ ta)e the res"onsibilit$ &"olitical "arties2 interest grou"s

etc( of im"roving are solving the "roblem of the societ$ Manager ta)es the salar$

for gobering his organizing "ro"erl$ not for solving the social "roblem of the

societ$ Thus2 manager should not move his mind to8ards social res"onsibilities of

the societ$

OR

There are man$ thin)ers 8ho have su""orted this2 but there are others 8ho have

e@"ressed their o"inion both sides are given as under-

A%"(#ent& !"!in&t &o,i!$ %e&4on&i.i$it3:

Cont%!%3 to t)e o.


18/64

J Di&%e"!%+ of #!%8etin" #e,)!ni: the doctrine of social

res"onsibilities im"lies acce"tance of socialist vie8 that "olitical mechanism rather

than mar)et mechanism is the a""ro"riate 8a$ to allocate scarce resources to

alternative uses

K B(%+en on ,(&to#e%:if the "rice in the mar)et for a "roduct does not

trul$ reflect the relative costs of "roducing mechanism of the mar)et "lace 8ill be

distorted The consumers 8ill have to "a$ higher costs

: Diffi,($t i#4$e#ent!tion: the conce"t of social res"onsibilit$ is illconceived and ill defined and is difficult to be im"lemented

A%"(#ent fo% &o,i!$ %e&4on&i.i$it3:

1 B(&ine&& i& ! 4!%t of &o,iet3: Since business organizations are a "art of

societ$ the$ must have a "ositive attitude to8ards the needs of societ$

'usiness is onl$ a sub-s$stem of societ$ and this sub-s$stem must

contribute to the 8elfare of the main s$stem

6 A'oi+!n,e of "o't/ %e"($!tion: .f business does not care of its social

res"onsibilit$2 the govt has to interfere increasingl$ in the business

s$stem2 8hich adversel$ affects the "rogress of business? Lon" te%# &e$finte%e&t of .(&ine&&:the social res"onsibilit$ of business2

if ta)en care of in the "resent ensures the success of the organization in the

future

I Co+e of ,on+(,t: Members of a "rofession are bound to follo8 a code of

conduct Code of conduct includes rules connected 8ith "rofession2

honest$ and moralit$2 8hich form its base

J B(&ine&& i& ! ,%e!tion of t)e &o,iet3 !n+ &o it &)o($+ %e&4on+ to t)e

+e#!n+& of t)e &o,iet3:Since business uses the resources 8hich belong

to the societ$ .t is necessar$ that ever$ business are obliged to use the

social resources for the common good of societ$K T)e $on"-te%# &e$f inte%e&t& of t)e .(&ine&& !%e .e&t &e%'e+ 9)en

.(&ine&& !&&(#e& &o,i!$ %e&4on&i.i$itie&:There is a gro8ing realization

on the "art of the enlightened businessmen that it is in their self-interest to

fulfill the demands and as"irations of the societ$ #eo"le 8ho have good

environment2 education2 and o""ortunit$ ma)e better em"lo$ees2

customers and neighbours for business than those 8ho are "oor2 ignorant

or o""ressed

: It i& t)e #o%!$ !n+ %i")t t)in" to +o .t is 8idel$ agreed that

businessmen toda$ have considerable social "o8er This "o8er is virtuall$


19/64

granted to them b$ the societ$2 8hich must have a general relationshi"

8ith social res"onsibilities The social res"onsibilities of businessmen

must be "ro"ortionate to their social "o8er .f the businessmen do not

assume social res"onsibilities2 their social "o8er must be ta)en a8a$ b$

the societ$ through government controls and regulations and other

measures

5 P(.$i, i#!"e of .(&ine&& 9o($+ .e i#4%o'e+ The business 8ill retain

the needed credibilit$ 8ith the "ublic if it "erforms its social obligations.t 8ill also avoid conflict 8ith the societ$ in its o8n interest Good

relation 8ith the 8or)ers2 consumers and su""liers 8ill lead to success of

business

L T)e ,on&(#e%& !%e 9e$$ info%#e+ The$ e@"ect higher /ualit$ "roducts

at res"onsible rates .f the$ donAt get fair treatment form business2 the$

8ill organize themselves and com"el the business its social

res"onsibilities

MANAGERIAL SKILLS:

1 P$!nnin" &8i$$&: the manager must "asses the s)ills of thin)ing the s)ills of

anal$zing the environment2 it includes 8hat is ha""ening in the societ$

organization and "olitical s$stem 4e must be able to assess or guess the

changes in environment2 traits offered b$ the changes in environment 4e

must be able to match t8o sets of environment on the basis of e@ternal and

internal anal$sis

6 O%"!ni*in" &8i$$&: organizing s)ill is needed to s"ecif$ 8ho 8ill achieve

8hat and ho8 manager must be in a "osition of identification of s"ecific

activities and s"ecific %obs manager must be clear about grou"ing ofvarious %obs2 s"an of management2 t$"e of relationshi" to be established

bet8een various "eo"le and various %obs

? Le!+in" &8i$$:leadershi" is the abilit$ of individual to influence the "eo"le

Recognition of human factor is also included in leading s)ill of human factor

various leadershi" trac) li)e communication and motivation are also included

in the leadershi" s)ills

I Te,)ni,!$ &8i$$&:technical s)ills refer to the abilit$ and )no8ledge in using

the e/ui"ment2 techni/ues and "rocedures involved in "erforming s"ecific

tas)s These s)ills re/uire s"ecialized )no8ledge and "roficienc$ inmechanics of a "articular %ob manager must )no8 8hich s)ills should be

em"lo$ed in his "articular enter"rise and be familiar enough 8ith their

"otentialit$ to as) discerning /uestion of his technical advisors

J 6(#!n &8i$$&:human s)ills consist of the abilit$ to 8or) effectivel$ 8ith

other "eo"le These are re/uired to 8in co-o"eration of others and to build

effective 8or) teams 4uman s)ills are reflected in the 8a$ a manager

"erceives his su"eriors2 subordinates and "eers n a8areness of the

im"ortance of human s)ills should be "art of managerAs orientation

K Con,e4t(!$ &8i$$&: conce"tual s)ills com"rise the abilit$ to see 8hole

organization and interrelationshi"s bet8een its "arts These s)ills refer to the


20/64

abilit$ to visualize the entire "icture or to consider a situation in its totalit$

Such s)ills hel" the manager to anal$se the forces 8or)ing in a situation and

to ta)e a broad and foresighted vie8 of the organization

: Di!"no&ti, &8i$$&: it includes the abilit$ to determine b$ anal$zing and

e@amination2 the nature and circumstances of a "articular condition .t is not

onl$ the abilit$ to s"ecif$ 8h$ something ha""ened but also the abilit$ to

develo" certain "ossible outcomes .t is the abilit$ to it through unim"ortant

as"ects and /uic)l$ gets though the heart of "roblem5 Cont%o$$in" &8i$$:there are certain standards2 8hich are fi@ed in a 8a$ such

that accom"lishment of those standards leads to the accom"lishment of goals

manager must )ee" chec) on the activities of subordinates and must rectif$

them if there are an$ "roblems

L De,i&ion #!8in" &8i$$&:there are t8o t$"es of decisions to be ta)en b$ the

manager

&i( Routine and "rogram decision

&ii( !on-routine and non-"rogram decisions

T)e ,o(%&e of !,tion to .e fo$$o9e+ i& !& (n+e%:

1 The manager must be in a "osition to identif$ the "roblem

6 Reaching to the main cause or the "roblem

? Searching for the alternative solution

I Com"aring merits and demerits of each solution

J Selecting the best course of action

K *ormulating the "lan b$ the a""lication of the alternatives

Responsibilities of mn!e"#

Re&4on&i.i$it3 to9!%+& &(44$ie%&: "eo"le 8ho su""l$ ra8 material2 mechanicalcom"onents2 financial institutions and advertising agencies .t is the dut$ or sa$s

res"onsibilit$ of the manager that the su""liers are being "aid at the time

1 Re&4on&i.i$it3 to9!%+& +i&t%i.(to%&: it is the res"onsibilit$ of the manager

to chec) regular su""l$ of the "roduct #roduct must be chec)ed for the

/ualit$2 "ac)aging &as in the case of children "ac)aging "la$s a ver$

im"ortant role( There must be free testing of goods that is distribution of

sam"les There should be fair return on investment that is fair commission

must be "aid To motivate them the organisation must re8ard them2 credit

facilities must be made available to the middle class "eo"le etcYo( ,!n &(%'i'e in t)e 'e&t 9!3 if t)e in+(&t%3 9i$$ &(%'i'e:a. You can take the advantage by showing collectiveness.

b Com"iling 8ith the norms la$ do8n b$ the association

c #roviding correct information to organisation

d Sharing latest )no8ledge

e Su""orting the individual members of the association

f .ndulging in fair and ethical com"etition

g !ot using an$ "olitical or other strategies

6 Re&4on&i.i$it3 to9!%+& (nion: em"lo$ees union is recognized as the enem$

of the organisation


21/64

? Re&4on&i.i$it3 to9!%+& "o't/:'irth gro8th and death of an$ organisation

8ill generate according to statuar$ "rovisions and these 8ill be governed b$

the government of the organisation and this can be done b$

&i( Sending the correct information

&ii( Ta@es and duties must be "aid regularl$

&iii( Organisation must tr$ to o"erate as a model citizen

&iv( Organisation must not tr$ to damage the culture of that area

and must tr$ to maintain the rich culture of that area1/ Re&4on&i.i$it3 to9!%+& ,(&to#e%&:

/ Re&4on&i.i$it3 to9!%+& &o,iet3:

/ Re&4on&i.i$it3 to9!%+& ,o#4etito%&:

/ Re&4on&i.i$it3 to9!%+& 9o%8e%&:

/ Re&4on&i.i$it3 to9!%+& &)!%e)o$+e%& o% o9ne%&:

Ro$e& of ! #!n!"e%:There are different t$"es of managerial roles some of them are given belo8

Mint*.e%"2&M!n!"e%i!$ Ro$e& Ro$e De&,%i tion

E!#4$e& ofI+entifi!.$e

Inte%4e%&on!$

Fi"(%e)e!+

S$mbolic head obligedto

"erform a number ofroutine duties of a le al

Greeting visitors signing

legal documents

Le!+e% Res"onsible for the

motivation ofsubordinates

#erforming virtuall$ all

activities thatinvolve

subordinates

Li!i&on Maintains self-develo"ed

net8or) of outsidecontacts and

c)no8ledging maildoing

e@ternal board 8or)"erforming other activities

Info%#!tion!$ Monito% See)s and receives8ide

variet$ of internal and

e@ternalinformation to

develo"

Reading "eriodicals and

re"orts maintaining"ersonal contacts

Di&&e#in!to% Transmits

informationreceived from outsiders

4olding

informationalmeetings ma)ing "hone

S4o8e&4e%&on Transmits informationtooutsiders onorganizationAs

4olding board meetingsgiving information tothe

mediaDe,i&ion!$ Ent%e4%ene(% Searches organization

and

its environment foro""ortunities and

Organizing strateg$ and

revie8 sessions todevelo" ne8 "rograms


22/64

Di&t(%.!n,e)!n+$e%

Res"onsible forcorrective

action 8henor anization faces

Organizing strateg$ and

revie8 sessions thatinvolve disturbances and

Re&o(%,e

!$$o,!to%

Res"onsible for the

allocation of

organizational resourcesof all )inds ma)ing or

a""roving all significant

Scheduling

re/uesting

authorization

"erforming

Ne"oti!to% Res"onsible for re"resenting the

organization at ma%orne otiations

#artici"ating in unioncontract negotiations

I#4o%t!n,e of M!n!"e#ent

Management is the d$namic life giving element in ever$ business 7ithout

it the resources of "roduction remain resources and never become "roduction

Sound Management "rovides the follo8ing benefits

1 chievement of grou" goals

6 O"timum utilization of resources

? *ulfillment of social obligations

I Economic gro8th

J Stabilit$

K 4uman Develo"ment

: Meets the challenge of change

Nee+ fo% M!n!"e#ent

1 To increase efficienc$

6 To cr$stallize the nature of Mgt %ob

? To im"rove research in Mgt

I To attain social goals

CONTRIBUTIONS OF TAYLOR AND FAYOL

A+#ini&t%!ti'e t)eo%3:

F!3o$ >1>>?H F(n,tion& !n+ P%in,i4$e& of M!n!"e#ent

4enri *a$ol2 a *rench engineer and director of mines2 8as little un)no8n

outside *rance until the late I9s 8hen Constance Storrs "ublished her

translation of *a$ol3s 1L1K dministration .ndustrielle et Generale N

*a$ol3s career began as a mining engineer 4e then moved into research geolog$

and in 1555 %oined2 Comambault as Director Comambault 8as in difficult$ but

*a$ol turned the o"eration round On retirement he "ublished his 8or) - a

com"rehensive theor$ of administration - described and classified administrative


23/64

management roles and "rocesses then became recognized and referenced b$ others

in the gro8ing discourse about management 4e is fre/uentl$ seen as a )e$2 earl$

contributor to a classical or administrative management school of thought &even

though he himself 8ould never have recognized such a NschoolN(

4is theorizing about administration 8as built on "ersonal observation and

e@"erience of 8hat 8or)ed 8ell in terms of organization 4is as"iration for an

Nadministrative scienceN sought a consistent set of "rinci"les that all organizationsmust a""l$ in order to run "ro"erl$

* 7 Ta$lor "ublished NThe #rinci"les of Scientific ManagementN in the S in

1L112 and *a$ol in 1L1K e@amined the nature of management and administration on

the basis of his *rench mining organization e@"eriences

*a$ol s$nthesized various tenets or "rinci"les of organization and management and

Ta$lor on 8or) methods2 measurement and sim"lification to secure efficiencies

'oth referenced functional s"ecialization

'oth *a$ol and Ta$lor 8ere arguing that "rinci"les e@isted 8hich all organizations -

in order to o"erate and be administered efficientl$ - could im"lement This t$"e of

assertion t$"ifies a None best 8a$N a""roach to management thin)ing

*a$ol3s five functions are still relevant to discussion toda$ about management

roles and action

1 to fo%e,!&t !n+ 4$!n 4(%'e3!n,e

e@amine the future and dra8 u" "lans of action

6 to o%"!ni*ebuild u" the structure2 material and human of the underta)ing

? to ,o##!n+

maintain activit$ among the "ersonnel

I to ,oo%+in!te

bind together2 unif$ and harmonies activit$ and effort

J to ,ont%o$

see that ever$thing occurs in conformit$ 8ith "olic$ and

"ractice

C$!&&ifi,!tion of B(&ine&& A,ti'itie&

ccording to *a$ol all activities of a business enter"rise could be divided into si@

grou"s

Technical roduction or manufacturing(

Commercial &'u$ing2 selling and e@change(

*inancial &Search for and o"timum use of ca"ital(

Securit$ rotection of "ro"ert$ and "ersons(

ccounting &Record )ee"ing2 costing2 statistics(


24/64

Managerial lanning2 organizing2 commanding2 coordinating and

controlling(

F!3o$ !$&o &3nt)e&i*e+ >1 4%in,i4$e& fo% o%"!ni*!tion!$ +e&i"n !n+ effe,ti'e

!+#ini&t%!tion/.t is 8orth8hile reflecting on these are com"aring the conclusions

to contem"orar$ utterances b$ #eters2 =anter and 4and$ to name but three

management gurus

*a$ol3s 1I "rinci"les are

S4e,i!$i*!tion +i'i&ion of $!.o%

"rinci"le of 8or) allocation and s"ecialization in order to

concentrate activities to enable s"ecialization of s)ills and

understandings2 more 8or) focus and efficienc$

A(t)o%it3 9it) ,o%%e&4on+in" %e&4on&i.i$it3

.f res"onsibilities are allocated then the "ost holder needs the

re/uisite authorit$ to carr$ these out including the right to

re/uire others in the area of res"onsibilit$ to underta)e duties

uthorit$ stems from

that ascribed from the delegation "rocess &the %ob holder

is assigned to act as the agent of the high authorit$ to

8hom the$ re"ort - hierarch$(

llocation and "ermission to use the necessar$ resources

needed &budgets2 assets2 and staff( to carr$ out the

res"onsibilities

Selection - the "erson has the e@"ertise to carr$ out the

res"onsibilities and the "ersonal /ualities to 8in the

su""ort and confidence of others

The R J Acorres"ondence is im"ortant to understand R J A

enables accountabilit$ in the delegation "rocess 7ho do 8e

co"e 8ith situations 8here R AB re there 8or) situations

8here our R AB

N


25/64

Di&,i4$ine

The generalization about disci"line is that disci"line is essential

for the smooth running of a business and 8ithout it - standards2

consistenc$ of action2 adherence to rules and values - no

enter"rise could "ros"er

Nin an essence - obedience2 a""lication2 energ$2 behavior and

out8ard mar)s of res"ect observed in accordance 8ith standingagreements bet8een firms and its em"lo$ees N 1L1K

Unit3 of ,o##!n+

The idea is that an em"lo$ee should receive instructions from

one su"erior onl$ This generalization still holds - even 8here

8e are involved 8ith team and matri@ structures 8hich involve

re"orting to more than one boss - or being accountable to

several clients The basic concern is that tensions and dilemmas

arise 8here 8e re"ort to t8o or more bosses One boss ma$

8ant 2 the other and the subordinate is caught bet8een thedevil and the dee" blue sea

Unit3 of +i%e,tion

The unit$ of command idea of having one head &chief

e@ecutive2 cabinet consensus 8ith agree "ur"oses and

ob%ectives and one "lan for a grou" of activities( is clear

S(.o%+in!tion of in+i'i+(!$ inte%e&t to t)e "ene%!$ inte%e&t

*a$ol3s line 8as that one em"lo$ee3s interests or those of one

grou" should not "revail over the organization as a 8hole This

8ould s"ar) a livel$ debate about 8ho decides that the interestsof the organization as a 8hole are Ethical dilemmas and

matters of cor"orate ris) and the behavior of individual

NchancresN are involved here *a$ol3s 8or) - assumes a shared

set of values b$ "eo"le in the organization - a unitar$ 8here the

reasons for organizational activities and decisions are in some

8a$ neutral and reasonable

%e#(ne%!tion of &t!ff

The "rice of services rendered N 1L1K

The general "rinci"le is that levels of com"ensation should be

NfairN and as far as "ossible afford satisfaction both to the staff

and the firm &in terms of its cost structures and desire for

"rofitabilit$+sur"lus(

Cent%!$i*!tion

Centralization for 4* is essential to the organization and a

natural conse/uence of organizing This issue does not go a8a$

even 8here flatter2 devolved organizations occur


26/64

Decentralization - is fre/uentl$ centralized-decentralizationPPP

The modes of control over the actions and results of devolved

organizations are still matters re/uiring considerable attention

S,!$!% ,)!in$ine of !(t)o%it3

The scalar chain of command of re"orting relationshi"s from

to" e@ecutive to the ordinar$ sho" o"erative or driver needs to

be sensible2 clear and understood

O%+e%The level of generalization becomes difficult 8ith this

"rinci"le 'asicall$ an organization NshouldN "rovide an orderl$

"lace for each individual member - 8ho needs to see ho8 their

role fits into the organization and be confident2 able to "redict

the organizations behavior to8ards them Thus "olicies2 rules2

instructions and actions should be understandable and

understood Orderliness im"lies stead$ evolutionar$ movement

rather than 8ild2 an@iet$ "rovo)ing2 un"redictable movement

E=(it3

E/uit$2 fairness and a sense of %ustice Nshould "ervade the

organization - in "rinci"le and "ractice

St!.i$it3 of ten(%e

Time is needed for the em"lo$ee to ada"t to his+her 8or) and

"erform it effectivel$ Stabilit$ of tenure "romotes lo$alt$ to

the organization2 its "ur"oses and values

Initi!ti'e

t all levels of the organizational structure2 zealH enthusiasm

and energ$ are enabled b$ "eo"le having the sco"e for "ersonal

initiative &!ote Tom #eters recommendations in res"ect ofem"lo$ee em"o8erment(

E&4%it +e ,o%4&

4ere *a$ol em"hasizes the need for building and maintaining

of harmon$ among the 8or) force2 team 8or) and sound

inter"ersonal relationshi"s

.n the same 8a$ that lfred # Sloan2 the e@ecutive head of General Motors

reorganized the com"an$ into semi-autonomous divisions in the 1L69s2 cor"orations

undergoing reorganization still a""l$ Nclassical organizationN "rinci"les - ver$ much

in line 8ith *a$ol3s recommendations

C%iti,!$ E'!$(!tion

1 Too formal

6 !ot "a$ ade/uate attention to 8or)ers

? >agueness

I 4is "rinci"le hinted but did not elaborate that mgt can and should be

taught


27/64

- Des"ite these limitations2 *a$ol made a uni/ue and outstanding

contribution to Mgt theor$

S,ientifi, M!n!"e#ent

F!t)e% of S,ientifi, M!n!"e#ent F/W/ T!3$o% > ->>H

*7 Ta$lor scientific management means managing the affairs of an

organisation scientificall$ in contrast to the rule of thumb a""roach

ccording to him2 scientific management is the art of )no8ing e@actl$ 8hat

$ou 8ant men to do and then that the$ do it in the best and chea"est 8a$

4e is regarded as the father of scientific management2 the main ob%ective of

scientific management 8as to eliminate 8astage and increase the all round

efficienc$ in the 8or)ing of the organisation

4e 8as the first "erson 8ho insisted on the introduction of scientific methods

in management 4e launched a ne8 movement in 1LJJ2 8hich is )no8n as

Fscientific managementA That is 8h$H Ta$lor is regarded as the father of scientific

management4e 8as born in 15JK in #hiladel"hia2 S he started his career as an

a""rentice in a small machine ma)ing sho" in 15:9 and rose to the "osition of chief

engineer of Midvale Steel 8or)s in 155I at the age of 65 Ta$lor conducted a series

of e@"eriments over a "eriod of more than t8o decades 4e e@"erimented 8ith

machine tools2 s"eed metals and the li)e One of his e@"eriments led to the

discover$ of high-s"eed steel2 8hich made him ver$ "o"ular Other e@"eriments

related to the 8a$ men handled materials2 machines and tools 8hich led him to the

develo"ment of a coordinated s$stem of sho" management .n short2 he

e@"erimented in different fields to eliminate 8astage of all t$"es2 increase the

efficienc$ of 8or)ers and "rovide for functional management

Ta$lor 8as a man of strong 8ill and convictions2 he 8anted to a""l$

scientific reasoning to management fter leaving Midvale Steel 7or)s2 he %oined

'ethlehem Steel Com"an$ 8here he introduced scientific management 4e 8as

highl$ o""osed b$ the management and the 8or)ers and his services 8ere

terminated unceremoniousl$ in 1L91 Ta$lor "resented his first "a"er entitled Sho"

management 8as "ublished in 1L9?H it focused attention on his "hiloso"h$ on

management 4is famous boo) "rinci"les and methods of scientific management

8as "ublished in 1L11 and his other contribution 8as testimon$ before the s"ecial

house committee 8hich 8as given in 1L16 it ma$ be "ointed out that the last t8o8or)s 8ere combined in one boo) entitled Fscientific managementA in 1LI: b$

4ar"er and 'rothers

T!3$o%2& 4%in,i4$e& of #!n!"e#ent:

Ta$lor develo"ed a number of "rinci"les of scientific management


28/64

1 S,ien,e7 not t)e %($e of t)(#.: according to this "rinci"le scientific

methods should be develo"ed and used to "erform each %ob and %ob should

not be done as a rule of thumb2 8e should thin) before doing *or this

"ur"ose first normal time re/uired to "erform a %ob should be determined

Secondl$ fair da$s 8or) of the 8or)man be determined Thirdl$ the best 8a$

of doing the 8or) and a last maintaining standard 8or)ing conditions and

"roviding standard tools and e/ui"ments

6 C$o&e ,oo4e%!tion .et9een 9o%8e%& !n+ #!n!"e#ent ,oo4e%!tion7 notin+i'i+(!$iH: according to this "rinci"le ob%ectives of organisation can

onl$ be achieved b$ close coo"eration bet8een all the 8or)ers and all the

levels of management in an organisation and each su"erior and subordinate

should coo"erate each other to achieve the common ob%ective of the

organisation

? S,ientifi, &e$e,tion7 t%!inin" of t)e 9o%8e%&: this "rinci"le suggests that

s)ills and e@"erience of the 8or)ers must be "ro"erl$ matched 8ith the %obs2

8hich the$ have "erformed So selection should be based on tests and

intervie8s in s"ecified field2 training be given if re/uired and their

ca"abilities should be develo"ed to the ma@imum

I Di'i&ion of 9o%8 !n+ %e&4on&i.i$it3 &e4!%!tion of 4$!nnin" !n+

o4e%!tion!$ 9o%8&H: there should be clear-cut division of 8or) and

res"onsibilit$ bet8een 8or) and management E/"/"lanning is the 8or) of

management and so managers should be res"onsible for the "ro"er "lanning

8here as e@ecution of "lan is the 8or) of 8or)ers and so 8or)er should be

res"onsible for "ro"er e@ecution of "lanning

J Ment!$ %e'o$(tion )!%#on3H:in an organisation the "ersonnelAs &"ersons

8ho are 8or)ing on an organisation( should be made mentall$ "re"ared to

"erform the activities assigned to them So management should createsuitable 8or)ing condition and resolve all "roblems scientificall$ and the

8or)ers should "erform their %ob devotedl$ and use the resources efficientl$

K M!i#(#4%o&4e%it3 fo% e#4$o3e%& !n+ e#4$o3ee&: this "rinci"le re/uires

that the aim of management should be to secure ma@imum "ros"erit$ for the

em"lo$ers along 8ith the ma@imum 8elfare of em"lo$ees

C%iti,i of &,ientifi, #!n!"e#ent:

Ta$lorAs 8or) 8as criticised on the follo8ing grounds

1 The use of the 8ord FscientificA before FmanagementA 8as ob%ected

because 8hat is actuall$ meant be scientific management is nothing but a

scientific a""roach to management

6 .t 8as argued that the "rinci"les of scientific management as advocated

b$ Ta$lor 8ere confined mostl$ to "roduction management 4e ignored

certain other essential as"ects of management li)e finance2 mar)eting2

accounting and "ersonnel


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? Ta$lor advocated the conce"t of functional foremanshi" to bring about

s"ecialization in the organisation 'ut this is not feasible in "ractice as it

violates the "rinci"le of unit$ of command

I Trade unionists regarded the "rinci"les of scientific management as the

means to e@"loit labour because the 8ages of the 8or)ers 8ere not increased

in direct "ro"ortion to "roductivit$ increases

J Scientific management is based on the assum"tion that "eo"le are

motivated b$ material gains Ta$lor and his associated concentrated on"h$sical and economic needs and over-loo)ed the social and ego needs of

"eo"le ,ater e@"erience has revealed that financial gain is not the onl$ thing

that matters 7or)ers also 8ant %ob satisfaction2 "artici"ation and

recognition

K Scientific management is /uite limited in sco"e .t focused attention

com"letel$ on efficienc$ at the sho" floor s a conse/uence management

became the stud$ of sho" management 8hile the more general as"ects 8ere

overloo)ed Scientific management has thus been described as a theor$ of

industrial engineering

: In,%e!&e in 9o%8 &4ee+: in scientific management the 8or)ers are

su""osed to 8or) 8ith more s"eed2 8hich affects their health

5 no ,)!n,e to &)o9 &8i$$: in scientific management 8or)ers are

su""osed to 8or) according one schedule and no thought is given to "ersonal

8ithin and s)ill

L Monotono(& 9o%8: the 8or)ers are su""oses co 8or) onl$ the

s"ecified "ortion of 8or) continuousl$ for man$ $ears the same 8or) for

man$ $ears ma)e the 8or) monotonous

19 L!,8 of initi!ti'e: no chance is left to sho8 their abilit$ onl$ a

mechanized "rocess of 8or) is follo8ed11 L!,8 of e#4$o3#ent o44o%t(nitie&:more 8or) b$ lesser 8or)er thus

reduces the chance of more em"lo$ment

16 E4$oit!tion: 8or)ers are not given their due shares in the gains

due to increased "roductivit$ of the enter"rise Com"arativel$2 less efficient

8or)ers 8ho are failed to achieve the standard are "enalized

8ages do not rise in the same "ro"ortion in 8hich "roductivit$ of labour

increases

1? We!8ne&& of t%!+e (nioni:scientific management reduces the role

of trade unions as standards of out"uts2 8ages and 8or)ing conditions aredetermined on scientific bases There is little sco"e of bargaining on this

ratter The differential "iece-8age divides the 8or)er into efficient and

inefficient Scientific management ma$ lead to accurac$2 as 8or)ers have

to carr$ out the instructions of their functional basis .t cuts the roots of trade

union movement

OR

1 S4ee+in" (4 of 9o%8e%&: 8or)ers feel that scientific management is nothing

but a device to force 8or)ers to a greater s"eed2 8ithout much regard for their

health and safet$ .t creates a lot of "h$sical and mental strain on them


30/64

6 Lo&& of 9o%8e%& &8i$$ !n+ initi!ti'e: he 8or)ers had to 8or) according to

the instructions of the foreman This leads to loss of initiative from the

8or)ers and the$ cannot suggest better method of 8or) The$ further allege

and too much of standardization2 a "re-re/uisite for scientific term2 due to

loss of 8or)ers initiative it results into lo8er "roductivit$

? Monoton3:under this function of "lanning is se"arated from that of doing

Ever$ 8or)er is e@"ected to "erform his small "art of a %ob due to

s"ecialization This ma)es the 8or) monotonous and 8or)er lends to loseinterest in his %ob

I Une#4$o3#ent:Scientific management reduces the number of "rocesses and

motions of 8or)ers2 increases the hourl$ or dail$ out"ut "er 8or)er2 increases

their efficienc$ b$ standardization and decision of labour2 thereb$2 it creates

unem"lo$ment b$ re/uiring lesser number of 8or)ers

J E4$oit!tion of 9o%8e%&:the 8or)ers feel that gains increased "rofit is ta)en

a8a$ b$ investors and onl$ insignificant benefit is given to the 8or)ers b$

8a$ of increase in 8ages and bonus

KDi&,%i#in!tion .et9een 9o%8e%&:

under this2 efficient 8or)ers get more

8ages as com"ared to the inefficient ones due to the differental 8age

incentive scheme

: Un+e#o,%!ti, in n!t(%e: 8or)ers ob%ect that scientific management is

undemocratic in nature as it gives absolute control over 8or)ers to the

functional bosses The 8or)ers have to follo8 the instruction of the bosses

8ithout thin)ing on the "art of the 8or)ers

5 Un&(it!.$e fo% !$$&,!$e (nit: some em"lo$ers are of the o"inion that

scientific management is onl$ suitable for large-scale units Small-scale units

cannot afford to introduce the scheme of scientific management

Te,)ni=(e& o% e$e#ent& of &,ientifi, #!n!"e#ent:

1 F(n,tion!$ fo%e#!n&)i4: Ta$lor believed that a single foreman might not be

com"etent to su"ervise all functional matters *unctional foremanshi"

involves su"ervision of a 8or)er b$ several s"ecialist foremen So this

conce"t is o""osite of the "rinci"le of unit$ of command E/"/matter relating

to the s"eed of 8or) of a 8or)er should be su"ervised b$ s"eed su"ervisor

and re"air and /uantit$ there of should be su"ervised b$ the re"air su"ervisor

6 St!n+!%+i*!tion of 9o%8: according to this techni/ue standards should be

fi@ed at ever$ level So that the %obs can be "erformed efficientl$ E/"/

standard tools and e/ui"ments should be "rovided to the 8or)ers Standard

8or)ing conditions are "rovided at 8or) "lace Standard2 size2 /ualit$2

8eights and other measures should be fi@ed Standard time re/uired

"erforming a unit of %ob and standard 8or)ing hours of a fair da$ Standard

"erformance of machines in a standard time

? Si#4$ifi,!tion of 9o%8:the 8or) should be sim"lified in a 8a$ so that an

average 8or)er can easil$ understand the ste"s to be "erformed to do a

s"ecified %ob Sim"lification 8ill certainl$ im"rove the efficienc$ resulting

more "roduction and reduction in cost and 8astages


31/64

I F!ti"(e &t(+3:according to this techni/ue management should determined

the amount and fre/uenc$ of rest intervals in com"leting a tas) 'ecause

human being is bound to feel tired if 8or)s 8ithout rest interval for a long

"eriod and after getting tired he 8ill not be able to "erform the %ob 8ith full

ca"acit$ 'ut b$ rest he 8ill regain stamina

J Met)o+ &t(+3:there ma$ be various methods to "erform a %ob 8ith different

cost re/uirements So the organisation should tr$ to find out the best 8a$ to

"erform the tas) E/"/shoes ma$ be manufactured manuall$ or b$ machines28hich ever costs less be ado"ted

K Defe%enti!$ 9!"e &3&te#:in this techni/ue Ta$lor suggested that differential

8age s$stem for the 8ages to the em"lo$ees on the basis of their "erformance

should be introduced 8hich 8ill develo" the idea+conce"t do more to earn

more The inefficient 8or)er 8ill also tr$ to do to the ma@imum of his

ca"acit$ and so the habit of doing the best and more in an efficient manner is

develo"

: Ment!$ %e'o$(tion:8or)ing of the subordinate and su"erior is based on

8hether the$ are mentall$ "re"are for doing the %ob or not "ositive attitude

of both to8ards each other each necessar$ there must be an environment in an

organisation in 8hich the 8or)ers feel that the management is e@"loiting

them On the other hand management also should have no conce"t that the

8or)ers have a tendenc$ of miss use of tools and e/ui"ments2 resulting

8astages

5 Ti#e &t(+3:time stud$ is a techni/ue2 8hich is used to measure+determine

the time that ma$ be ta)en b$ 8or)men of average s)ills+abilit$ to "erform a

%ob+tas) #ur"ose of time stud$ is to determine standard time re/uired to

"erform a s"ecified %ob and so fair da$s 8or)+8or)man Time stud$ is

conducted 8ith the hel" of sto"8atchL Motion &t(+3: motion stud$ is a techni/ue2 8hich involves close observation

of movements of bod$ and lim"s re/uired to "erform a %ob.ts "ur"ose is to

determine the best 8a$ of doing a %ob b$ eliminating the 8asteful motion2

8hich 8ill further reduce the fatigue resulting im"rovement in efficienc$

Micro chronometer is the tool of stud$

C%iti,!$ E'!$(!tion

Ta$lorAs ideas caught the imagination of several individuals and

organizations in the S and Euro"e Scientific management led to tremendous

increase in "roductivit$ and 8ages 4o8ever his scientific a""roach to ever$ as"ect

of management created sus"icion in the minds of 8or)ers and trade unions The$

feared that 8or)ing harder and faster might eventuall$ lead to e@haustion of all

available %obs and retrenchment Scientific management has been criticized on the

follo8ing grounds

i Me,)!ni&ti, A44%o!,):The main criticism is that scientific management

ignores the human element in "roduction and is devoid of a human touch .t

treats 8or)ers as factors of "roduction and not as human beings Too much


32/64

em"hasis is "laced on technical as"ects of 8or) ignoring the human side

Therefore Ta$lor and his associates 8ere ridiculed as efficienc$ e@"erts and

time stud$ anal$sis

ii Un%e!$i&ti, A&&(#4tion&:Scientific Management is based on the assum"tion

that "eo"le are rational and the$ are motivated b$ material gains Ta$lor and

his associates concentrated on "h$sical and economic needs and overloo)ed

the social and ego needs of "eo"le ,atter e@"erience has revealed thatfinancial gain is not the onl$ things that matter 7or)ers also 8ant %ob

satisfaction2 "artici"ation and recognition

iii N!%%o9 Vie9: Scientific management is /uite limited in sco"e Ta$lor

focused attention com"letel$ on efficienc$ at the sho" floor s a

conse/uence management became the stud$ of sho" management 8hile the

more general as"ects 8ere overloo)ed Scientific management has thus been

described2 as a theor$ of industrial engineering .t does not 8ith management

of the total organization

iv I#4%!,ti,!.$e:Man$ ideas of Ta$lor are said to be infeasible in "ractice *or

eg "lanning cannot full$ be se"arated from doing because these are t8o

sides of the same %ob and are not different %obs Similarl$ functional

foremanshi" is li)el$ to create "roblems because it violates the "rinci"le of

unit$ of command

v E4$oit!tion of $!.o(% :.n the name of increasing efficienc$ 8or)ers 8ere

forced to s"eed u" affecting their "h$sical and mental health S"ecialization

and standardization ma)e the %ob dull and monotonous

Q.n final anal$sis2 Ta$lor made a lasting contribution to ma)ing %obs and their

management more efficient and "roductive Scientific management 8as develo"ed

b$ engineers and scientists and their concern for efficienc$ led to better methods

and tools Man$ contributions of Ta$lor have stood the test of time ccording the

#eter Druc)er Scientific management is one of the great liberating and "ioneering

insights 7ithout it a real stud$ of human beings at 8or) 8ould be im"ossible

Ta$lor laid the foundations of management as science

Diffe%en,e .et9een T!3$o%2& &,ientifi, #!n!"e#ent !n+ F!3o$2& 4%in,i4$e&:

Sr

no

'asis of

difference

Ta$lorAs scientific

management

*a$olAs "rinci"le

1 'eginning Ta$lor begins from lo8er

8or)er and moved u"8ard

*a$ol begin from to"

management and moved

do8n8ard

6 ,evel of

management

Ta$lor gave im"ortance to the

o"erating level

*a$ol gave im"ortance to

the to" level

? *ocus .ts focus is increasing

"roductivit$ b$ 8a$ of 8or)s

.ts focus is to im"rove over

all administration b$


33/64

sim"lification2 time and

motion stud$ etc

ado"ting certain "rinci"les

I Results .ts results are based on

scientific observation

.ts results are based on

"ersonal e@"eriences

J Rigidit$ Ta$lorAs "rinci"les are

com"arativel$ rigid

*a$olAs "rinci"les are

com"arativel$ fle@ible

K #ur"ose

&contribution(

To increase the "roductivit$

of 8or)ers b$ eliminating the8astes

To develo" general theor$

of administration

Geo%"e E$ton M!3o > - >1H

6!9t)%one E4e%i#ent&

1 I$$(#in!tion E4e%i#ent&& illumination affected #roductivit$(

6 Re$!3 !&&e#.$3 Te&t %oo# E4e%i#ent& & 7or)ing conditions and

#roductivit$(2 "iece 8or)2 rest "auses2 shorter 8or)ing hours2

? M!&& inte%'ie9in" P%o"%!##e & Direct 0uestions(2 Grievances2 dee"rooted disturbance2 satifactor$ level

O(t,o#e&

7or)ers 8or)ing in a grou" develo" bond of relationshi"s

'ehavior at 8or)"lace de"ends on their mental state2 emotions and

"re%udices

Emotional factors "la$ an im"ortant role in determining

4uman and liberal attitude of su"ervisor hel"s in im"roving

"erformance

Managerial s)ills and technical s)ills are not necessar$ to be a

successful leader

6ENRY LAURENCE GANTT >> >>H

Contribution 8as famous2 Gantt chart2 used for scheduling and control

of 8or)

Tas) and 'onus "lan & Minimum 8ages is guaranteed to all 8or)ers

irres"ective of out"ut2 E@tra 8ages are "aid for e@tra 8or)(

FRANK BUNKER GILBRET6 > - >?1H

Motion stud$2 time stud$

*atigue Stud$

7or) Sim"lification ? "ositional "romotion "lan & "resent "osition2

the "osition to be held before "romotion to his "resent "osition and the

ne@t higher "osition(

F(n,tion& of #!n!"e#ent:P$!nnin":

.t is a "rocess of thin)ing before doing .t involves determinations of goals

and the activities re/uired to be "erformed to achieve the goalsIt ,on&i&t&:


34/64

7hat is to be doneB

&i( 4o8 it is to be doneB

&ii( 7here it is to be doneB

&iii( 7hen it is to be doneB

&iv( '$ 8hom it is to be doneB

So "lanning is a "rocess of shorting out the "ath for attaining the determined

ob%ective of the business Over all "lanning is deciding that in "resent2 8hat is to do

in future

?/ O%"!ni*in":

Organizing refers to the 8a$ in 8hich 8or) of a grou" of "eo"le is arranged

and distributed among the grou" members to achieve the ob%ectives of an

organization s a function of management organizing refers to the fo$$o9in":&a( 'ringing together human and non-human resources that

is the 8or) to be done and its distribution in human resources

&b( To define and establish authorit$ res"onsibilit$

relationshi" for the achievement of goals&c( Determination of ob%ectives

&d( Division of activities into %obs

&e( *itting individuals into %obs2 and

&f( Develo"ing relationshi"s

.n conclusion 8e can sa$ that organizing refers to distribution of 8or) to the

su"eriors and sub-ordinates and fi@ing there authorities and res"onsibilities

@/ St!ffin":

Staffing is the "rocess of determining the man"o8er re/uirement that could meet

the com"an$As ob%ectives Staffing is a managerial function of attracting2

ac/uiring2 develo"ing and maintaining the human resources re/uired to achieve

the organisation ob%ective efficientl$

Staffing also involves u"grading of /ualit$+s)ills of the staff to get higher

"erformance from then #ersonnel de"artment of an organisation loo)s after the

function of staffing Staffing usuall$ includes the follo8ing activities&i( 4uman resource "lanning

&ii( nnouncing vacant "ositions2 that is recruitment

&iii( Receiving a""lications&iv( dministering test

&v( .ntervie8ing

&vi( Medical test

&vii( *inal selection and a""ointment letter

&viii( Orientation and "lacement

1/ Di%e,tin" o% Le!+in":

Directing as a function of management is concerned 8ith instructing2 guiding

and ins"iring "eo"le in the organisation to contribute to the best of their ca"abilities


35/64

for the achievement of organizational ob%ectives s a conclusion directing includes

the fo$$o9in":

&a( Co##(ni,!tion: it is the "rocess of "assing information

and understanding from one "erson to another This "rocess is

necessar$ for ma)ing the subordinates understand 8hat the

management e@"ects of them manager has al8a$s to tell the

subordinates 8hat to do2 ho8 to do it and 8hen to do it 4e has to

create an understanding in their minds in regard to these matters&b( Le!+e%&)i4: a good manager must also be an effective

leader ,eadershi" is concerned 8ith influencing the behavior of

follo8ers .n order to get the coo"eration of em"lo$ees2 the manager

must have leadershi" s)ills The st$le of leadershi" 8ill var$ from

situation to situation

&c( Moti'!tion:effective motivation is necessar$ for getting

voluntar$ coo"eration of the subordinates Different t$"es of re8ards

motivate different "eo"le Ever$ manager should stud$ the behaviour

of individuals 8or)ing under him to "rovide him or her "ro"er

inducements To some financial incentives are im"ortant2 8hile others

are motivated b$ non-"ecuniar$ incentives li)e %ob securit$2 %ob

enlargement2 freedom to do 8or) and recognition

&d( .ssuing orders and instruction b$ the su"erior

&e( ,eading the subordinates to influence their activities

to8ards achievement of goals

&f( To ensure that the subordinates are 8or)ing as "er "lans

and "olicies

/ Cont%o$$in":Controlling is a "rocess of verif$ing 8hether actual "erformance is in

accordance to the "lanned "erformance and to ta)e corrective action 8herever

re/uired

.t involves com"arison of actual "erformance 8ith the "lanned "erformance as to

/ualit$2 /uantit$2 time ta)en etc and than anal$se the deviations and to ta)e

corrective measures to correct the deviations .t involves the follo8ing &te4&:

1 Establishment of standards

6 Measurement of actual "erformance

? Com"arison of actual "erformance 8ith the "laned"erformance

I *ind out deviations

J Ta)ing corrective action

MANAGERIAL ET6ICS:

The term FethicsA refers to value-oriented decisions and behaviour The 8ord

ethics comes from the Gree) root2 ethros2 meaning character2 giving beliefs2

standards2 or deals that "ervade a grou"2 a communit$2 a "eo"le-------- Toda$ ethics


36/64

is the stud$ of moral behaviourthe stud$ of ho8 the standards of moral conduct

among the individuals are established and e@"ressed behaviourall$ Terms such as

business ethics2 cor"orate ethics2 medical ethics2 or legal ethics are used to indicate

the "articular area of a""lication 'ut to have meaning2 the ethics involved in each

area must still refer to the value-oriented decisions and behaviour of individuals

Ethics refer to a set of moral "rinci"les2 8hich should "a$ a ver$ significant role in

guiding the conduct of managers and em"lo$ees in the o"eration of an$ enter"rise

Ethics is concerned 8ith 8hat is right and 8hat is 8rong is human behaviour .t isnormative and "rescri"tive2 not neutral .t addresses the /uestion of 8hat ought to

be Ethics refer both to the bod$ of moral "rinci"les governing a "articular societ$

or grou" and to the "ersonal normal "rece"ts of an individual

Some "eo"le subscribe to a utilitarian reference in determining 8hat is 8rong

and 8hat is right The$ hold that a "ro"osed course of action should be %udged from

the stand"oint of greatest good for the greatest number of "eo"le *rom this "oint of

vie82 there are fe8 absolute standards and each issue must be %udged b$ stud$ing its

im"act u"on all affected "arties

APPROAC6ES TO MANAGEMENT

Modern management has develo"ed through several stages or a""roaches

These a""roaches to the stud$ of management ma$ be classified as under

1 Classical ""roach

6 'ehavioral ""roach

? Management Science ""roach

I S$stem ""roach

J Contingenc$ ""roach

T)e C$!&&i,!$ A44%o!,)The classical or em"irical a""roach is based on the follo8ing tenets

1 Management is a "rocess consisting of interrelated functions "erformed to

achieve the desired goals

6 *rom the e@"erience of managers in different organizations2 "rinci"les or

guidelines can be derived

? These "rinci"les are basic truths2 8hich can be a""lied2 in different

organizations to im"rove managerial efficienc$

I Managers can be develo"ed through formal education and training

J #eo"le are motivated mainl$ b$ incentives and "enalties ThereforemanagerAs use and control economic re8ards

K Theoretical research into management hel"s to develo" a bod$ of )no8ledge2

8hich is necessar$ to im"rove the art of management

The classical a""roach offers a convenient frame8or) for the education

and training of future managers .T vie8s management as distinct disci"line based

on certain "rinci"les nother merit of this a""roach is that it focuses attentions on

8hat managers actuall$ do2 ie2 functions of management .t highlights the

universal nature of management .t "rovides a foundation for further research in

management


37/64

The classical a""roach2 ho8ever2 suffers from several limitations *irst2 it

is a mechanical a""roach2 8hich undermines the role of human factor in

management The focus is on technical and economic as"ects2 at the cost of socio-

"s$chological issues in management Secondl$2 the validit$ and universalit$ of

management "rinci"les is doubtful due to environmental changed Thirdl$2 there is a

danger in rel$ing too much on "ast e@"erience2 as t8o managerial situations are

never identical

There are three main braches of classical theor$ &a( scientific

management2 &b( dministrative theor$2 and &c( bureaucrac$

*7 Ta$lor2 4enri *a$ol2 Ma@ 7eber2 ,*r8ic)2


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i 4uman relations movement see)s to mani"ulate and e@"loit the emotions of

em"lo$ees for the benefit of the organization b$ "roviding a false sense of

ha""iness or satisfaction

ii .t ignores the 8ider environmental issues inside and outside an organization

Social environment ma$ fail to motivate em"lo$ees if the$ find their find

their %obs highl$ structured and monotonous

iii 4uman relations movement is based on the assum"tion- that ha""$ 8or)er

are more "roductive 8or)ers There is in fact no direct correlation bet8een%ob satisfaction and "roductivit$

iv The movement undermines the role of economic re8ards Des"ite cordial

inter"ersonal relations2 em"lo$ee motivation ma$ be lo8 if the$ feel

under"aid

ccording to Duc)er2 The theor$ of human relations freed management

from the domination of viciousl$ 8rong ides2 but it didH not succeed in

substituting ne8 conce"ts2 human relations "ut all the stress on inter"ersonal

relations and the informal grou" .ts starting "oint 8as in individual "s$cholog$

rather than in the anal$sis of 8or)er and 8or) and 8or) s a result there 8as a

tendenc$ for human relation to degenerate into mere slogans 8hich become and

alibi for having no management "olic$ in res"ect to the human organizationN

'ehavioral a""roach is much disci"linar$ .t has made significant

contributions to our understanding of "eo"le at 8or) and grou"s in organizations .t

recognizes and organization as a social organism sub%ect to the attitudes2 culture of

"eo"le Motivation2 leadershi"2 8or) designs2 grou" d$namics and "artici"ation are

the main conce"ts of behavioral sciences a""roach

'ehavioral a""roach has contributed ne8 ideas for more effective

management .t is2 ho8ever2 not free from limitations *irst2 it lac)s the "recision of

classical theor$ because a human behavior is un"redictable Secondl$2 its

conclusions lac) scientific validit$ and suffer from a clinical bias .ts findings are

tentative Thirdl$2 management is much 8ider than organizational behavior

*ourthl$2 its a""lication in "ractice is ver$ difficult because it re/uires fundamental

changes in the thin)ing and attitudes the 8orld outside it has been overloo)ed in the

neo-classical theor$

M!n!"e#ent S,ien,e o% M!t)e#!ti,!$ A44%o!,)The management science a""roach 8as evolved after the Second 7orld

7ar .t involves the a""lication of so"histicated /uantitative+mathematical

techni/ues for solving managerial "roblems Several mathematicians2 engineers and

economists li)e 4erbert Simon2 >on !e8man2 RMC$ert2


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&1(Rational decision-making.n organization is considered a decision-ma)ing

unit and the main %ob of a manager is to ma)e decisions and solve "roblems

The /ualit$ of managerial decisions determines organizational efficienc$

Therefore2 a management decision determines organizational efficienc$

Therefore2 management information s$stem and other techni/ues should be

used for ma)ing rational decisions

&6(Mathematical models. model is sim"lified re"resentation of real life

situation .t utilizes mathematical s$mbols and relationshi"s .t reduces a

managerial decision to a mathematical form so that decision-ma)ing "rocess

can be simulated and evaluated before the actual decision is made Different

variables are /uantified and e@"ressed as and e/uation 7ith the hel" of a

mathematical model2 a manager can test different values f each variable until

and acce"table solution is found .t avoids the time and cost constraints Hof

trial and error 'ut great care is re/uired to ensure that all material

relationshi"2 constraints and variables are incor"orated in the model

&?(Computer applications.The use of com"uters has been the driving force n

the develo"ment of the management science a""roach The com"uter can

handle in minutes e@tremel$ com"le@ "roblems 8ith an immense volume of

data and also calculate numerous variations in the solution

&I(Evaluation criteria.s the main focus of the management science a""roach

is on scientific decision-ma)ing2 models are evaluated for effectiveness

against the set criteria2 li)e cost reduction2 return on investment2 schedules

and deadlines2 etc2

The management science a""roach has made a significant im"act on the

"ractice of management The methods and techni/ues develo"ed under it are being

increasingl$ used for managerial decision-ma)ing This a""roach has contributed a

lot in develo"ing orderl$ thin)ing in management leading to more e@actness The

management science a""roach has given effective tools to solve "roblems of

"lanning and control 4o8ever it has made little contribution in the areas of

organizing staffing2 motivation and leader shi" .t overstresses decisional roles of

manager at the cost of inter"erson

Unit 1-Principles of management

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