ManagersManagement PPT _ BEC DOMS by BabasabPatil


and Management
    Managers and Management
   Managers in today’s market must update tools and
    principles on a continuous basis.
   Management development is increasingly global in
    outlook and places a high value on contributing to
    organizational effectiveness and competitive
   To be successful a manager must use and
    integrated approach, using a combination of tools
    and principles.
    Management Development
 High performance leading organizations are
    increasingly distinguished by 7 features:
1. Linking management development to business
    plans and strategies.
2. Being boundless, flat, nonhierarchical
3. Using global and cross cultural orientation
4. Individualizing learning that is focused within the
    context of organizational learning
5. Applying customized training aligned with corporate
6. Employing a career development focus
7. Focusing on the development of core competencies.
 Management Affects Everyone
 Our society depends on the goods and
  services provided by different types of
  organizations that individuals manage.
 All organizations are guided and directed by
  the decisions of one or more individuals who
  are commonly known as managers.
 Management Affects Everyone
   Peter Drucker, a nationally recognized
   management consultant describes 3 major tasks of
   managers as:
1. To decided the purpose and mission of the
2. To make work productive.
3. To manage social impacts and responsibilities.
 Management as a Process
What do statements like “ that is a well-
managed company “ mean? They seem to
imply that management is some type of work
or set of activities and that these
activities are performed quite well
and sometimes not so well.
  Management as a Discipline
Classifying management as a discipline
suggests that there is a body of knowledge
that can be learned.
(1) Management is a subject with principles,
concepts, and theories.
(2) A critical purpose of studying management is to
learn how in the process of managing to apply
principles, concepts, and theories of management
and this is particularly emphasized throughout your
internship experiences.
(3) This internship semester you will assume the
role of a manager even if this is not your current
position. Why? To begin to think, analyze, and
apply management theories, concepts and
           Management is also
            a Human Activity
•   As a human activity management emphasizes the
    importance of employees with whom managers
    work and whom they manage in accomplishing an
    organization’s objectives.
•   In organizations, people are the most important
    asset. Successful managers understand this and
    recognize the need to establish a strong bond
    between the organization and the relationships of
    the manager and the people they manage.
      Management As a Career
•   We are emphasizing management in the internship
    experiences because we recognize that in today’s
    environment which is fast changing and
    competitive. We can contribute to successful
    organizations by providing students with a solid
    foundation of experience in thinking like a manager
    while they are learning about the organization.
•   Spend this internship semester thinking about the
    management theories and principles that can
    contribute positively to your organization. And also
    think about how you would manage each situation
    for a more positive outcome.
      Definition of Management
•   The management process is an integrated whole
    even though we may describe the process as a
    series of separate activities to understand the parts.
•   The model we are using identifies the management
    functions as planning, organizing, and controlling
    linked together by leading.
•   What does this mean? Planning determines what
    results the organization will achieve, organizing
    specifies how it will achieve the results, and
    controlling determines whether results are achieved
    and by using planning, organizing and controlling
    managers exercise leadership.
             Leading is the management
             process that integrates everything
             else a manger does.
• Leadership is a difficult concept to define but
  means the ability to influence others to pursue a
  common goal.
• Think about good leaders that you have known.
  Good leaders are typically driven by an
  overriding vision or mission.
• The organizing, leading, and controlling
  functions all come from planning. How? These
  functions carry out the planning decisions.
• These plans may differ in focus from goals for
  the short or long term but as a whole these
  plans are the primary tools for preparing for and
  dealing with changes in the organization’s
• The purpose of the organizing function is to
  create a structure of task and authority
  relationships to achieve the organization’s
• Organizing can be viewed as turning plans into
  action and this allows an organization to
  function effectively as a cohesive whole.
        The controlling function of management
        requires 3 elements:
1. Established standards of performance.
2. Information that indicates deviations between
    actual performance and the established
3. Action to correct performance that does not
    meet these standards.
And Now To The Fun! Learning
      How to Manage
• The internship is trying to help you develop your
  knowledge, attitudes and skills. And it will teach
  you how to apply your formal education so that
  once you become a manager you will
  understand how to face challenges and make
• The term management refers to the body of
  knowledge, concepts and procedures used by
• A great deal of management knowledge comes
  from the autobiographies of people who
  practiced management.
     Learning How to Manage
• Many disciplines have contributed to the study
  of management, such as social scientists,
  psychologists, sociologists and others.
  Consider management a social phenomenon
  and the manager to be an important social
  resource to scientifically understand and study.
  Other professions like mathematics, accounting,
  philosophy and numerous others have
  contributed applications to the practice of
     Learning How to Manage
• In the end contemporary management
   knowledge is the product of 3 basic
(1) The Classical Approach
(2) The Behavioral Approach
(3) The management Science Approach
      The Classical Approach
• The serious study of management began in the
   late 19th century with the need to increase the
   efficiency and productivity of the workforce.
• The classical approach to management can be
   understood by looking at 2 perspectives:
1. Scientific management concentrated on the
   problems of lower-level managers
2. Classical organizational theory focused on
   problems of top-level managers.
The Classical Approach (Cont.)
• Think about the context. At the turn of the 20th
  century, business was expanding and creating
  new products and new markets, but labor was
  in short supply.
• The solutions were (1) substitute         capital
  for labor or (2) use labor         more
The Classical Approach (Cont.)
• Frederick W. Taylor made an important
  contribution to scientific management. He
  observed workers producing far less than
  capacity in steel firms. He recognized their were
  no studies to determine expected daily output
  per worker in the form of work standards and
  the relationship between these standards and
  wages. Then he tried to find the one best way
  to do a job, determining the optimum work
  pace, the training of people to do the job
  properly and successful rewards for
  performance but using an incentive pay system.
       The Classical Approach
Taylor’s work lead to the following 4 principles:
Principle 1. Study the way workers perform their tasks,
   gather all the informal knowledge that workers
   possess, and experiment with ways to improves the
   performance of tasks.
Principle 2. Codify the new methods of performing
   tasks into written rules and standard operating
   procedures (sops).
Principle 3. Carefully select workers so that they
   possess skills and abilities that match the needs of
   the task and train them to perform according to
   rules and procedures.
Principle 4. Establish a fair or acceptable level of
Classical Organizational Theory
            Another body of ideas developed at the
                 same time. While scientific
  management           focused on the
  management of work, the                Classical
  approach focused on the
     management of organizations.
• The classical organizational theory focus was
  on (1) developing principles that could guide
  the design, creation, and maintenance of large
  organizations and (2) to identify the basic
  functions of managing organizations.
• Engineers were the main contributors to
  scientific management while practicing
    The Contributors to Classical
      Organizational Theory:
         Weber and Fayol
• Max Weber was the primary architect of the
  theory of the organization as a bureaucracy.
• His view of a bureaucracy was a smoothly
  functioning, highly efficient machine in which
  each part is tuned to perform its prescribed
           Max Weber (Cont.)
Weber believed that an efficient organization
   should be based on 5 principles
Principle 1. In a bureaucracy, a manager’s formal
   authority comes from the position held in the
Principle 2. In this context people should occupy
   positions because of their performance, not
   because of their social standing or personal
Principle 3. The extent of each position’s formal
   authority and task responsibilities should be clearly
Principle 4. Positions should be arranged hierarchically
     The Contributors to Classical
       Organizational Theory:
          Weber and Fayol
•  Henry Fayol was the other major contributor and
   devised his 14 principles of effective management:
Principle 1. Division of Labor: Advocated specialization
   and increasing worker’s responsibilities.
Principle 2. Management Authority and Responsibility:
   Managers must have the authority to give orders
   and be responsible for effectiveness of their
Principle 3. Unity of Command: Employees should
   receive orders from and report to only one
           Henry Fayol (Cont.)
Principle 4. Line of Authority: Restricting the
   organization’s number of levels enable it
   to act quickly and flexibly.
Principle 5. Centralization: Managers must decide how
   much authority to centralize at the top and how
   much to give to workers.
Principle 6. Unity of Direction: All workers should be
   committed to the same plan of action.
Principle 7. Equity: Workers are expected to perform at
   high levels and to be treated with respect and
Principle 8. Order: Order is the methodical
   arrangement of jobs to provide the greatest benefits
           Henry Fayol (Cont.)
Principle 10. Discipline: Employees would be
   expected to be obedient, energetic and
   concerned about the organization’s welfare.
Principle 11. Remuneration: Managers should use
   reward systems, profit sharing and bonuses to
   acknowledge high performance.
Principle 12. Stability of Tenure of Personnel: Long
   term employment helps employees develop the
   skills to make significant contributions.
Principle 13. Coordination of Individual Interest to the
   Common Interest: Employees subordinate their
   individual interest to those of the firm.
Principle 14. Espirit de Corps: Importance of a shared
    Contributions of the Classical
• The greatest contribution of the classical
  approach was the identification of management
  as an important element of organized society.
• The identification of management functions:
  planning, organizing and controlling provided
  the basis for training new managers and was a
  valuable practice.
• Many management techniques used today:
  time and motion analysis, work simplification,
  incentive wage systems, production scheduling,
  personnel testing, and budgeting are
  techniques from the classical approach.
      Limitations of the Classical
• One major criticism is that the majority of
  insights are to simplistic for today’s complex
  organization. The classical approach and the
  scientific management approach worked in
  organizations that were very               stable
  and predictable and                  today little of
  that exists.
          Behavioral Approach
•   The behavioral approach to management has 2
    branches: the Human relations approach from the
    1950’s and the behavioral science approach.
•   In the human relations approach managers must
    know why their subordinated behave as they do
    and what psychological and social factors influence
•   Advocates of this approach try to show how the
    process and functions of management are affected
    by differences in individual behavior and the
    influence of groups in the workplace.
•   This approach requires managers to recognize
    employees’ need for recognition and social
    acceptance and this results in training in human
            The Behavioral
           Science Approach
• The individuals in the behavioral science
  branch of the behavioral approach believe that
  the human is more complex than the “economic
  man” description of the classical approach and
  the “social man” description of the human
  relations approach.
• The behavioral science approach concentrates
  more on the nature of work itself and the
  degree to which it can fulfill the human need to
  use skills and abilities.
             The Behavioral
            Science Approach
•   Mary Parker Follett (1868-1933) provided
    much of the management theories helping
    organizations recognize that they could be viewed
    form the perspective of individual or group
    behavior. She was a social philosopher whose
    writings provided a more people-centered view of
    the organization than the predominant scientific
    management writing.
•   According to Follett, the manager’s job was to
    harmonize and coordinate group efforts and
    managers and workers should view themselves as
    partners in a common project. Managers would act
    more from their knowledge of human behavior than
    from their formal authority.
        The Behavioral Science
•   The Hawthorne Studies: a series of research
    studies conducted at the Hawthorne Works of
    General Electric helped lend support to the
    behavioral approach to management theory.
•   The research used varying lighting levels in the
    plant’s secretarial pool to determine the effects of
    different levels on productivity expecting
    productivity levels to drop when lighting levels
    dropped. The Result was surprising: productivity
    only dropped when workers could no longer see
    well enough to do their work.
•   The results showed that the presence of the
    researchers was affecting the results because the
    workers enjoyed the attention and produced the
    Contributions of Behavioral
• Contributions of the Behavioral Approach
  include increased use of teams to
  accomplish organizational goals, focus
  on training and development of employees,
  and the use of innovative reward and incentive
• In addition the focus on modern management
  theory resulted in empowering employees
  through shared information.
   Limitations of the Behavioral
• The limitations included the difficulty for
  managers in problem situations and the fact
  that human behavior is complex. This
  complicated the problem for managers trying to
  use insights from the behavioral sciences which
  often changed when different behavioral
  scientists provided different solutions.
           The Management
           Science Approach
• The Management Science approach is a
  modern version of the early emphasis on the
  “management of work” in scientific
  management. It features the use of
  mathematics and statistics to aid in resolving
  production and operations problems, thus
  focusing on solving technical rather than human
  behavior problems.
• The management science approach was used
  in World War II when the English formed teams
  of scientists, mathematicians, and physicist into
  units called operations research teams, and
  today businesses use these teams to deal with
     Contributions of the
Management Science Approach
• Most important contributions are in production
  management focusing on manufacturing
  production and the flow of material in a plant
  and in operations management solving
  production scheduling problems, budgeting
  problems and maintenance of optimal inventory
 Limitations of the Management
       Science Approach
• The shortfall of this approach is that
  management science does not deal with
  the people aspect of an organization.
    Attempts to Integrate the Three
     Approaches to Management
•   One attempt to integrating the three approaches to
    management is the Systems Approach. The
    Systems Approach stresses that organizations
    must be viewed as systems in which each part is
    linked to each other.
•   The other approach is the Contingency Approach.
    The Contingency Approach stresses that the
    correctness of a managerial practice is contingent
    on how it fits the particular situation.
•   The system’s approach views the elements of an
    organization as interconnected and as being linked
    to its environment. See the discussion on Compaq.
    Attempts to Integrate the Three
     Approaches to Management
•   It is important to understand that most
    organizations must operate as open systems to
    survive and use a systems perspective to
    management. And the objectives of the individual
    parts of the organization must be compromised for
    the objectives of the entire firm.
•   See the section on Management Focus on Best
    Practice and review the critical principles of
    customer responsiveness.
    Attempts to Integrate the Three
     Approaches to Management
•   The contingency theorists believe that most
    workplace situations are too complex to analyze
    and control as the scientific management approach
    suggests. Paul Hersey has developed a
    situationalist theory of leadership. He believes
    managers should not ascribe to one best approach.
    Instead managers should identify the appropriate
    principles, along with relevant contingency
    variables and then evaluate these factors. In
    summary, the contingency approach involves
    identifying the important variables in different
    situations, evaluating the variables, and then
    applying appropriate management knowledge and
    principles in selecting an effective approach to the
   Attempts to Integrate the Three
    Approaches to Management
• Although both the systems approach and the
  contingency approach have developed value to
  insights on management. It is early in their
  stage of development and the report card is not
  complete on how these approaches will
  contribute compared to other methods.

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