UNIT I (MBA 1st sem)

MPOB

Why Study Management?• Universality of Management

– management is needed • in all types and sizes of organizations• at all organizational levels• in all work areas

– management functions must be performed in all organizations• consequently, have vested interest in improving

management

© Prentice Hall, 2002 1-1-22

Management is…

1

EffectivenessEffectivenessEffectivenessEffectiveness

EfficiencyEfficiencyEfficiencyEfficiencyGetting workGetting workdone throughdone through

othersothers

Getting workGetting workdone throughdone through

othersothers

Basic Purpose of Management

EFFICIENTLYUsing resources wisely

and in a cost-effective way EFFECTIVELY

Making the right decisions andsuccessfully implementing them

AndAnd

Figure 1.1

Nature Of Mgt

• Goal Oriented

• Economic Resources

• Distinct Process

• Integrative force

• Intangible Force

Four Functions of Management

Figure 1.2

Levels of Management

3

CEOCOOCIO

General MgrPlant Mgr

Regional Mgr

Office ManagerShift Supervisor

Department ManagerTeam Leader

Top Level Management

Middle Level Management

First-LineManagement

Types of Managers

Figure 1.3

Relative Amount of Time That Managers Spend on the Four Managerial Functions

Figure 1.4

Managerial Roles and Skills

Mintzberg identified three categories of roles – Decisional, Informational, Interpersonal

Decisional Roles

Roles associated with methods managers use in planning strategy and utilizing resources.–Entrepreneur—deciding which new projects or

programs to initiate and to invest resources in. –Disturbance handler—managing an unexpected

event or crisis.–Resource allocator—assigning resources

between functions and divisions, setting the budgets of lower managers.

–Negotiator—reaching agreements between other managers, unions, customers, or shareholders.

Informational Roles

Roles associated with the tasks needed to obtain and transmit information in the process of managing the organization.–Monitor—analyzing information from both the

internal and external environment.–Disseminator—transmitting information to

influence the attitudes and behavior of employees.–Spokesperson—using information to positively

influence the way people in and out of the organization respond to it.

Interpersonal Roles

Roles that managers assume to provide direction and supervision to both employees and the organization as a

whole.– Figurehead—symbolizing the organization’s mission and what

it is seeking to achieve.– Leader—training, counseling, and mentoring high employee

performance.– Liaison—linking and coordinating the activities of people and

groups both inside and outside the organization.

Managerial Skills

• Technical Skills

• Human Skills

• Conceptual skills

Core skills and their use in the different levels

Conceptual skills

Human skills

Technical skills

Managerial levels

Lower Middle Top

Who is a ProfessionalManager ?

• Who is in charge of the business• affairs,

• Who resolves conflicts and problems• positively,

• Who develops effective customer• relationships.

• Who directs a business or other• enterprise,

• Who controls expenditures and• resources,

Tasks of a ProfessionalManager

1. Deciding the basic mission of firm.2. Unrelenting existence and growth.3. Sustaining firm’s effectiveness, profitcreation and adopting technological advancements.

4. Confronting the test of increasing competition and transformation.

5. Managing for novelty and modernity. 6. Edifying human organization.

Tasks of a ProfessionalManager

7. Keeping hold of talent and inculcating sense of devotion.8. Sustaining headship value.9. Maintaining equilibrium between inventiveness and conventionality.10. Pushing back managerial obsolescence.11. Enduring the mounting communal disparagement and opinionated antagonism.12. Safeguarding relations with various general public fragments.

Responsibilities

• Towards “ customer – the king”,• Towards understanding the organizational context,• Towards shareholders,• Towards people working in the organization,• Towards administering the activities and resources,• Towards purveyors, whole-sellers, distributors and retailers•

Towards competitors,• Towards employees’ union,• Towards commanding regime, Towards the social order.•

CORPORATE EXAMPLES

• Nestle India – doesnot favors short-term profits at theexpense of long-term businessdevelopment.

• Wipro TechnologiesLtd. – the hardwork andcontributions nevergo unnoticed atWipro.

Question?

What is the specific set of abilities that allows one manager to perform at a higher level than another manager?

A. Skill-setsB. SKAsC. CompetenciesD. Skill traits

Question?

What is a group of people who work together and possess similar skills or use the same knowledge, tools, or techniques?

A. OrganizationB. DepartmentC. TeamD. Presentation Group

Assignments

Q1 Difference Between Management & Administration.

Q2 Management a science or an art ?

Q3 Is Management a Profession?

Q4 Management is an art of getting work through other people.

MGT Theories

• The development of mgt thought can be grouped in four major periods

• Classical

• Neo classical

• System Approach

• Modern approach

Figure 2.1 Chronological Development of Management Perspectives

Management TheoryClassical Approaches

– Frederick Taylor: Scientific Management (1886)– Frank and Lillian Gilbreth: Time/motion studies (later

1800s)– Henri Fayol: 14 Principles of Management (1880s-1890s)– Max Weber : Bureaucracy (1920s)

• Behavioral Approaches– The Hawthorne Experiment (1927)– MacGregor’s Theory X and Theory Y (1960)

• Quantitative Approaches• Contemporary Approaches

– Ouchi’s Theory Z (1981)– Contingency Management

Figure 2.2 Subfields of the Classical Perspective on Management

Focuses on the Focuses on the individual worker’s individual worker’s

productivityproductivity

Focuses on the Focuses on the functions of functions of managementmanagement

Focuses on Focuses on the overall the overall

organizational organizational systemsystem

Scientific Management: Taylor• Frederick W. Taylor (1856-1915)

– Father of “Scientific Management.

• attempted to define “the one best way” to perform every task through systematic study and other scientific methods.

• believed that improved management practices lead to improved productivity.

– Three areas of focus:

• Task Performance

• Supervision

• Motivation

Task Performance

• Scientific management incorporates basic expectations of management, including:

– Development of work standards

– Selection of workers

– Training of workers

– Support of workers

Supervision

• Taylor felt that a single supervisor could not be an expert at all tasks.

– As a result, each first-level supervisor should be responsible only workers who perform a common function familiar to the supervisor.

– This became known as “Functional Foremanship.”

Motivation

• Taylor believed money was the way to motivate workers to their fullest capabilities.

– He advocated a piecework system in which worker’s pay was tied to their output.

• Workers who met a standard level of production were paid a standard wage rate.

• Workers whose production exceeded the standard were paid at a higher rate for all of their production output.

Taylor’s Principles of Management

• The “one best way.”– Management using scientific observation

• Scientific selection of personnel– Put right worker in right job, find limitations, train

• Financial incentives– Putting right worker in right job not enough– A system of financial incentives is also needed

• Functional foremanship– Division of labor between manager and workers– Manager plans, prepares, inspects– Worker does the actual work– “Functional foremen” , specialized experts,

responsible for specific aspects of the job

Henri Fayol

• First came up with the five basic functions of management—Planning, Organizing, Staffing, Directing, Communicating, and Controlling

• First wrote that management is a set of principles which can be learned.

• Developed Fourteen Principles of Management

HENRI FAYOL’s FOURTEEN PRINCIPLES

OF MANAGEMENT