Chapter1 Management Science

MANAGEMENT MANAGEMENT SCIENCESCIENCE

INDEX INDEX SYLLABUS (PPT SLIDES)SYLLABUS (PPT SLIDES)

TOPIC LECTURE NO. TOPIC LECTURE NO. • Introduction to ManagementIntroduction to Management L1 L1• Managing Organizational Structure L2Managing Organizational Structure L2• Operations Management L3Operations Management L3• Materials Management L4Materials Management L4• Human Resource Management (HRM) L5Human Resource Management (HRM) L5• Project Management (PERT/CPM)Project Management (PERT/CPM) L6L6• Strategic Management Strategic Management L7 L7• Contemporary Management Practices L8Contemporary Management Practices L8

UNIT-IUNIT-I

Introduction to Introduction to ManagementManagement

Instructor: Sihem Smida

DEFINITIONDEFINITION

HHenri Fayol(1916):To manage is to enri Fayol(1916):To manage is to forecast and plan ,to organize, to forecast and plan ,to organize, to command, to coordinate and controlcommand, to coordinate and control

Peter. F. Drucker(1955):Management is Peter. F. Drucker(1955):Management is concerned with the systematic concerned with the systematic organization of economic Resources and organization of economic Resources and its task is to make these resources its task is to make these resources productive.productive.

Nature and FeaturesNature and Features

Management is a social processManagement is a social process It also denotes a ‘a body of people’ It also denotes a ‘a body of people’

involved in decision making involved in decision making It is inexact scienceIt is inexact science It is an art and also scienceIt is an art and also science It is professionIt is profession It is inter-disciplinaryIt is inter-disciplinary It is complexIt is complex

IMPORTANCEIMPORTANCE It facilitates the achievements of goals It facilitates the achievements of goals

through limited resourcesthrough limited resources It ensures smooth sailing in case of It ensures smooth sailing in case of

difficultiesdifficulties It ensures continuing in the It ensures continuing in the

organizationorganization It ensures economy and efficiencyIt ensures economy and efficiency It focus on group effortsIt focus on group efforts It is the key to the economic growthIt is the key to the economic growth

Taylor’s Scientific Management Taylor’s Scientific Management TheoryTheory

F.W.Taylor –Father of Scientific F.W.Taylor –Father of Scientific ManagementManagement

Taylor demonstrated the benefits of Taylor demonstrated the benefits of increased productivity and earnings increased productivity and earnings through an experiment at through an experiment at “Bethlehem Steel Works”.“Bethlehem Steel Works”.

FUNCTIONS OF MANAGEMENTFUNCTIONS OF MANAGEMENT

According to Luther GullickAccording to Luther Gullick P-----PlanningP-----Planning O------OrganizingO------Organizing S-----StaffingS-----Staffing D----DirectingD----Directing Co---CoordinatingCo---Coordinating R---ReportingR---Reporting B---BudgettingB---Budgetting

Fayol’s Principle of ManagementFayol’s Principle of Management Henri Fayol contributed 14 principles to Henri Fayol contributed 14 principles to

managementmanagement

1.1. Division of WorkDivision of Work

2.2. AuthorityAuthority

3.3. DisciplineDiscipline

4.4. Unity of commandUnity of command

5.5. Unity of directionUnity of direction

6.6. Subordination of individual interest to Subordination of individual interest to group interestgroup interest

Fayol’s Principle of ManagementFayol’s Principle of Management

77..RemunerationRemuneration

8.Centralization of authority8.Centralization of authority

9.Scalar chain9.Scalar chain

10.Order10.Order

11.Equity11.Equity

12.Stability of tenure of personnel12.Stability of tenure of personnel

13.Initiative13.Initiative

14.Espirit de corps (Team work)14.Espirit de corps (Team work)

Mayo’s Hawthorne ExperimentsMayo’s Hawthorne Experiments

Mayo known for his famous experiment Mayo known for his famous experiment at Hawthorne plant of the western at Hawthorne plant of the western electric company, Chicago, USA, for electric company, Chicago, USA, for evaluating the attitudes and evaluating the attitudes and Psychological reaction of workers on Psychological reaction of workers on the job situations.the job situations.

Maslow’s theory of Human NeedsSMaslow’s theory of Human NeedsS

According to him humans have 5 According to him humans have 5 needsneeds

1.1. Physiological needsPhysiological needs

2.2. Safety needsSafety needs

3.3. Affiliation or acceptance needsAffiliation or acceptance needs

4.4. Esteem needsEsteem needs

5.5. Self-actualisation needsSelf-actualisation needs

Douglas McGregor’s Theory X and Douglas McGregor’s Theory X and Theory YTheory Y

Theory X:Theory X: Assumptions Assumptions1.1. Employees are lazyEmployees are lazy2.2. They require constant guidance and They require constant guidance and

supportsupport3.3. Some times they require even coersion Some times they require even coersion

and controland control4.4. Given an opportunity they would like to Given an opportunity they would like to

avoid responsibilityavoid responsibility5.5. They do not show any ambition but They do not show any ambition but

always seak securityalways seak security

Theory YTheory Y

AssumptionsAssumptions::1.1. Some employees consider work as natural as play Some employees consider work as natural as play

as restas rest2.2. They employees are capable of directing and They employees are capable of directing and

controlling performance on their own. They are controlling performance on their own. They are much committed to objectives of the organization.much committed to objectives of the organization.

3.3. Higher rewards make these employees more Higher rewards make these employees more committed to organization.committed to organization.

4.4. Most of them are highly imaginative, creative, and Most of them are highly imaginative, creative, and display ingenuity in handling organizational issues.display ingenuity in handling organizational issues.

5.5. Give an opportunity , they not only accept Give an opportunity , they not only accept responsibility but also look for opportunities to out responsibility but also look for opportunities to out perform others.perform others.

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Management Science TheoryManagement Science Theory

Contemporary approach to Contemporary approach to management that focuses on the management that focuses on the use of rigorous quantitative use of rigorous quantitative techniques to help managers make techniques to help managers make maximum use of maximum use of organizational resources to produce organizational resources to produce goods and services.goods and services.

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•Quantitative managementQuantitative management — — utilizes linear and nonlinear utilizes linear and nonlinear programming, modeling, programming, modeling, simulation, queuing theory and simulation, queuing theory and chaos theory.chaos theory.

•Operations managementOperations management ——techniques used to analyze any techniques used to analyze any aspect of the organization’s aspect of the organization’s production system.production system.

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•Total Quality Management Total Quality Management (TQM)(TQM) ——focuses on analyzing focuses on analyzing input, conversion, and output input, conversion, and output activities to increase product activities to increase product quality.quality.

•Management Information Management Information Systems (MIS) Systems (MIS) — p— provides rovides information vital for effective information vital for effective decision making.decision making.

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Four Functions of ManagementFour Functions of Management

Figure 1.2

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Steps in the Planning ProcessSteps in the Planning Process

Deciding which goals the Deciding which goals the organization will pursueorganization will pursue

Deciding what workflows(lines of Deciding what workflows(lines of action) to adopt to attain those action) to adopt to attain those goalsgoals

Deciding how to allocate Deciding how to allocate organizational resourcesorganizational resources

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PlanningPlanning

Complex, difficult activityComplex, difficult activity Strategy to adopt is not always Strategy to adopt is not always

immediately clearimmediately clear Done under Done under

uncertaintyuncertainty

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OrganizingOrganizing

Involves grouping people into Involves grouping people into departments according to the kinds departments according to the kinds of job-specific tasks they performof job-specific tasks they perform

Managers lay out lines of authority Managers lay out lines of authority and responsibilityand responsibility

Decide how to coordinate Decide how to coordinate organizational resourcesorganizational resources

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LeadingLeading

Articulating a clear organizational Articulating a clear organizational vision for its members to vision for its members to accomplish, and energize and accomplish, and energize and enable employees so that everyone enable employees so that everyone understands the part they play in understands the part they play in achieving organizational goalsachieving organizational goals

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LeadingLeading

Leadership involves using power, Leadership involves using power, personality, and influence, personality, and influence, persuasion, and communication persuasion, and communication skillsskills

Outcome of leadership is highly Outcome of leadership is highly motivated and committed motivated and committed workforceworkforce

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ControllingControlling

Task of managers is to evaluate Task of managers is to evaluate how well an organization has how well an organization has achieved its goals and to take any achieved its goals and to take any corrective actions needed to corrective actions needed to maintain or improve performancemaintain or improve performance• The outcome of the control process is the The outcome of the control process is the

ability to measure performance accurately ability to measure performance accurately and regulate organizational efficiency and and regulate organizational efficiency and effectivenesseffectiveness

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Chapter1 Management Science