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8/2/2019 Fundamentals of Mgt. Lec 1
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Fundamentals of Management
Part 1: Management Principles
Chapter 1: Nature of Management
1Fundamentals of Management
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During this lecture we will
learn:
Concept of management
Basic elements of management
Nature of the managerial task
Modern Approaches to Management
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Definition of Management
Management in business and humanorganization activity is simply the act of getting people together to accomplish
desired goals
According to the management guru PeterDrucker, “Organization and coordination
of the activities of an enterprise in accordance with certain policies and in achievement of clearly defined objectives”
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WHAT IS MANAGEMENT?
An art more than a science
Deductive Method: General to ParticularInductive Method: Particular to General
Inherently social in nature
Getting things done through others
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GOALS OF BUSINESS OR
MANAGEMENT
Business/economics traditionally definedas based on a sole primary motive of self-interest
Lead to thinking about profit-maximizationas the major goal of enterprise
Failed to account for the social nature of business/economics -- inaccurate based
on new science 5Fundamentals of Management
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Is Administration and
management same?
Administration refers to the activities of the higher level of the management groupwho identifies the major aims and
policies.
Administration is a part of management
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FOUR FUNCTIONS
First stated by Henri Fayol(1841-1925)-FrenchCEO
Now stated as
1. Planning
2. Organizing3. Directing
4. Controlling
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PLANNING & ORGANIZING
Planning -- Setting firms goals plus theway to accomplish them
Organizing -- deciding structure of
decision-makingWhat will be done, by whom, for whom
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DIRECTING & CONTROLLING
Directing-- Motivating employees toachieve firm‟s objectives
Controlling --
Monitoring progress toward goals
Taking corrective action
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Scientific Management
Pioneers tried to find more efficientmethods and procedures for control
Aims at investigating every problem and
find best possible way to solve theproblems using the scientific methods orresearch
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Scientific Management Contd.
F W Taylor, a management guru, listeddifferent principles to guide management:
• Each worker should have a large, clearly
defined, daily task
• Standard conditions are needed to ensure the
task is more easily accomplished
• High payment should be made for successfulcompletion of tasksFundamentals of Management 11
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F W Taylor’s Principles cont:
Taylor also listed „new duties‟ of management:
• The Development of a true science
• The Scientific selection, education anddevelopment of workmen
• Friendly close co-operation betweenmanagement and workers
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Administrative Management
Henry Fayol aimed at developing ascience of administration for management
He believed managers, at higher levels,are less dependent on technicalknowledge and more on a knowledge of administration
Fundamentals of Management 13
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Fayol’s 14 principles of
management:
1. Division of Labor
2. Authority
3. Discipline4. Unity of command
5. Unity of direction
6. Subordination of Individual Interest togeneral interest
7. Remuneration or Salary and wages
Fundamentals of Management 14
F l’ 14 i i l f
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Fayol’s 14 principles of
management Contd:
8. Centralization
9. Scalar Chain
10. Order11. Equity
12. Stability of tenure of personnel
13. Initiative14. Esprit de corps
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Max Weber (1864 – 1920)
More concerned with the basics of howenterprises are structured
Developed ideas about the structure of the organization that define what weknow as bureaucracy (structure and set of regulations in place to control activity,usually in large organizations andgovernment)
Fundamentals of Management 16
W b ’ ti
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Weber’s perspectives on
Administrative Management are:
Division of labor
Hierarchy of authority
Formal selection
Career managers
Formal rules
Fundamentals of Management 17
H l ti t d
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Human relations movement and
behavioral science
Deals with sciences of mankind and of behavior as individuals and in groups
Concerned with problems of fatigue andefficiency at work and
Problems relative to selecting and trainingemployees
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Hawthorne Experiments
Focused toward psychological andbehavioral side of employees at work
Psychological Experiments of Elton Mayo disclosed or revealed components of the
job and work satisfaction
Experiments were divided into threephases
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Hawthrone Experiments Contd:
1. Test Room Studies: assesses the effectof single variables upon employeeperformance
2. Interviewing Studies: consists of employees‟ surveys and interviews
3. Observational Studies: involves studyingthe “normal” group working
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S t h t
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Systems approach to
management
A system is an organized combination of parts, which forms interactions betweenthe parts and between the system and the
environment
Gives managers a way of looking atorganizations as a complete whole
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System approach contd:
Systems can be divided into twocategories:
Deterministic : Behavior can be determined
Probabilistic : Behavior can only be estimated
A system includes different elements or
systems called sub-systems
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Elements of a system
Sensing system
Information coding system
Physical processing system
Regulating and controlling system
Information and storage system
Goal setting or policy making system
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Systems Approach Process
Open page no. 21 of the course book
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Today’s Manager
Responsible for others and their ownwork
Managers are also:
Mediators of disputes
Politicians : Persuade and motivate
Diplomats : Representative of companies
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ESSENTIAL SKILLS FOR MANAGERS
1. TECHNICAL SKILLS
2. HUMAN SKILLS
3. CONCEPTUAL SKILLS
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Decisional Roles of Managers
Entrepreneur: Brings new ideas
Disturbance Handler: Handles or tacklesstrikes and lockouts
Resource allocator: Allocates or utilizesthe company‟s resources
Negotiator: Deals with suppliers andnegotiates for prices or for best services
Fundamentals of Management 27
Entrepreneurship and
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Entrepreneurship and
Intrapreneurship
Entrepreneurship is a process of bringingcreative and innovative ideas andimplement them by combining factors of
production to create wealth and meet aneed
Intrapreneurship involves bringing newideas within the organization
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In-class exercise
1. List five desired qualities a managershould have
2. List five desired qualities an employeeshould have
3. Let‟s say you are a Businessman or aBusiness woman, what objectives orgoals will you set for your business?
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